Exhibit 10.3  EXECUTION COPY

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# $200,000,000  364-DAY  CREDIT AGREEMENT

Dated as of
September 30, 2003

Among

WISCONSIN POWER AND
LIGHT COMPANY as Borrower

THE BANKS NAMED HEREIN as Banks

and

BANK ONE, NA as Administrative
Agent and LC Issuing Bank

---

WACHOVIA BANK,
NATIONAL ASSOCIATION Syndication Agent

BANC ONE CAPITAL
MARKETS, INC. and WACHOVIA CAPITAL MARKETS,
LLC Co-Lead Arrangers

BANK OF AMERICA, N.A.,BARCLAYS
BANK PLC and WELLS FARGO BANK, N.A. Co-Documentation
Agents

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# TABLE OF CONTENTS

|                                                         |                                                                                     | Page
|-------------------------------------------------------- | ----------------------------------------------------------------------------------- | ----
|ARTICLE I DEFINITIONS AND ACCOUNTING TERMS               | 1                                                                                  
|SECTION 1.01                                             | Certain Defined Terms                                                               | 1   
|SECTION 1.02                                             | Computation of Time Periods                                                         | 15  
|SECTION 1.03                                             | Computations of Outstandings                                                        | 16  
|SECTION 1.04                                             | Accounting Terms                                                                    | 16  
|ARTICLE II AMOUNTS AND TERMS OF THE EXTENSIONS OF CREDIT | 16                                                                                 
|SECTION 2.01                                             | The Advances                                                                        | 16  
|SECTION 2.02                                             | Making the Advances                                                                 | 16  
|SECTION 2.03                                             | Letters of Credit                                                                   | 17  
|SECTION 2.04                                             | Fees                                                                                | 20  
|SECTION 2.05                                             | Reduction of the Commitments                                                        | 21  
|SECTION 2.06                                             | Repayment of Advances                                                               | 21  
|SECTION 2.07                                             | Interest on Advances                                                                | 21  
|SECTION 2.08                                             | Additional Interest on Eurodollar Rate Advances                                     | 22  
|SECTION 2.09                                             | Interest Rate Determination                                                         | 22  
|SECTION 2.10                                             | Voluntary Conversion of Advances                                                    | 23  
|SECTION 2.11                                             | Optional Prepayments of Advances                                                    | 24  
|SECTION 2.12                                             | Increased Costs                                                                     | 24  
|SECTION 2.13                                             | Illegality                                                                          | 25  
|SECTION 2.14                                             | Payments and Computations                                                           | 25  
|SECTION 2.15                                             | Noteless Agreement; Evidence of Indebtedness                                        | 26  
|SECTION 2.16                                             | Taxes                                                                               | 27  
|SECTION 2.17                                             | Sharing of Payments, Etc.                                                           | 28  
|SECTION 2.18                                             | Extension of Revolving Commitment Termination Date; Term Election                   | 29  
|ARTICLE III CONDITIONS OF LENDING                        | 30                                                                                 
|SECTION 3.01                                             | Conditions Precedent to Closing                                                     | 30  
|SECTION 3.02                                             | Conditions Precedent to Each Extension of Credit                                    | 32  
|SECTION 3.03                                             | Conditions Precedent to Each Extension of the Revolving Commitment Termination Date | 33  
|SECTION 3.04                                             | Reliance on Certificates                                                            | 34  
|ARTICLE IV REPRESENTATIONS AND WARRANTIES                | 34                                                                                 
|SECTION 4.01                                             | Representations and Warranties of the Borrower                                      | 34  
|ARTICLE V COVENANTS OF THE BORROWER                      | 36                                                                                 
|SECTION 5.01                                             | Affirmative Covenants                                                               | 36  
|SECTION 5.02                                             | Negative Covenants                                                                  | 40  
|ARTICLE VI EVENTS OF DEFAULT                             | 44                                                                                 
|SECTION 6.01                                             | Events of Default                                                                   | 44  
|SECTION 6.02                                             | Cash Collateral Account                                                             | 46  
|ARTICLE VII THE AGENT                                    | 47                                                                                 
|SECTION 7.01                                             | Authorization and Action                                                            | 47  
|SECTION 7.02                                             | Agent's Reliance, Etc                                                               | 47  
|SECTION 7.03                                             | Bank One and Affiliates                                                             | 48  
|SECTION 7.04                                             | Lender Credit Decision                                                              | 48  
|SECTION 7.05                                             | Indemnification                                                                     | 48  
|SECTION 7.06                                             | Successor Agent                                                                     | 49  
|ARTICLE VIII MISCELLANEOUS                               | 49                                                                                 
|SECTION 8.01                                             | Amendments, Etc                                                                     | 49  
|SECTION 8.02                                             | Notices, Etc                                                                        | 50  
|SECTION 8.03                                             | No Waiver; Remedies                                                                 | 50  
|SECTION 8.04                                             | Costs, Expenses, Taxes and Indemnification                                          | 50  
|SECTION 8.05                                             | Right of Set-off                                                                    | 51  
|SECTION 8.06                                             | Binding Effect                                                                      | 52  
|SECTION 8.07                                             | Assignments and Participations                                                      | 52  
|SECTION 8.08                                             | Confidentiality                                                                     | 56  
|SECTION 8.09                                             | WAIVER OF JURY TRIAL                                                                | 57  
|SECTION 8.10                                             | Governing Law                                                                       | 57  
|SECTION 8.11                                             | Relation of the Parties; No Beneficiary                                             | 57  
|SECTION 8.12                                             | Execution in Counterparts                                                           | 57  

|EXHIBITS AND SCHEDULES 
|-----------------------
|                       
|Exhibit 1.01           
|Exhibit 2.02(a)        
|Exhibit 2.03           
|Exhibit 2.10           
|Exhibit 3.01(a)(viii)-1
|Exhibit 3.01(a)(viii)-2
|Exhibit 3.01(a)(viii)-3
|Exhibit 8.07           
|                       
|Schedule I             
|Schedule II            
|Schedule III           

# CREDIT AGREEMENT

Dated as of
September 30, 2003

THIS
CREDIT AGREEMENT (this Agreement) is made by and
among:

|(i) |  | WISCONSIN POWER AND LIGHT COMPANY, a Wisconsin corporation (the
               Borrower),
|--- |  | -------------------------------------------------------------------------------------------

|(ii) |  | the banks (the Banks) listed on the signature
               pages hereof and the other Lenders (as hereinafter defined) from time to time
               party hereto, and
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iii) |  | Bank One, NA (Bank One), as administrative
               agent (the Agent) for the Lenders hereunder and
               as the issuer of Letters of Credit (as hereinafter defined) (the LC
               Issuing Bank).
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# PRELIMINARY STATEMENTS

|(1) | The Borrower has requested that the Banks and LC Issuing Bank provide certain
          Extensions of Credit (as hereinafter defined) to the Borrower.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | The Banks and LC Issuing Bank have agreed to make such Extensions of Credit
          subject to the terms and conditions of this Agreement.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------

NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein
contained, the parties hereto hereby agree as follows:

# ARTICLE I 
DEFINITIONS AND
ACCOUNTING TERMS

SECTION 1.01.    
          Certain Defined Terms. As used in this Agreement, the
          following terms shall have the following meanings (such meanings to be equally
          applicable to both the singular and plural forms of the terms defined):

| | Administrative
Agency Fee Letter means the letter agreement, dated August 27, 2003,
among the Borrower, the Parent, IPL, Bank One and Banc One Capital Markets, Inc.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Arranger
Fee Letter means the letter agreement, dated August 27, 2003, among
the Borrower, the Parent, IPL, Bank One, Banc One Capital Markets, Inc., Wachovia Bank,
National Association and Wachovia Capital Markets, LLC.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Advance
means an advance by a Lender to the Borrower as part of a Borrowing and refers to a Base
Rate Advance or a Eurodollar Rate Advance, each of which shall be a
Typeof Advance.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | AEC
Facility means the $650,000,000 364-Day Credit Agreement, dated as of
October 11, 2002, among the Parent, the banks named therein and Bank One, as the
administrative agent.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Affected
Lender has the meaning assigned to that term in Section 2.13.
| | ------------------------------------------------------------------------

| | Affected
Lender Advance has the meaning assigned to that term in Section 2.13.
| | --------------------------------------------------------------------------------

| | Affiliate
means, with respect to any Person, any other Person directly or indirectly controlling
(including but not limited to all directors and officers of such Person), controlled by,
or under direct or indirect common control with such Person. A Person shall be deemed to
control another entity if such Person possesses, directly or indirectly, the power to
direct or cause the direction of the management and policies of such entity, whether
through the ownership of voting securities, by contract, or otherwise.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Alternate
Base Rate means a fluctuating interest rate per annum as shall
be in effect from time to time, which rate per annum shall at all times be equal to
the higher of:
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) |  | the
rate of interest announced publicly by Bank One or its corporate parent,           Bank
One Corporation, from time to time, as its corporate base rate or prime           rate of
interest; and
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) |  | 1/2
of one percent per annum above the Federal Funds Rate.
|---- |  | ----------------------------------------------------------

| | Each
change in the Alternate Base Rate shall take effect concurrently with any change in such
base or prime rate or the Federal Funds Rate.
| | -------------------------------------------------------------------------------------------------------------------------------------------

| | Applicable
Lending Office means, with respect to each Lender, such Lenders
Domestic Lending Office in the case of a Base Rate Advance and such Lenders
Eurodollar Lending Office in the case of a Eurodollar Rate Advance.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Applicable
Margin means, for any Eurodollar Rate Advance or Base Rate Advance,
(i) on any date the Utilization Percentage equals or is less than 33-1/3%, the number of
basis points set forth below in the columns identified as Level 1, Level 2,
Level 3, Level 4, Level 5 or Level 6 below, opposite the Eurodollar
Rate or the Base Rate, as applicable, and (ii) on any date the Utilization Percentage
exceeds 33-1/3%, the number of basis points set forth below in the columns identified as
Level 1, Level 2, Level 3, Level 4, Level 5 or Level 6
below, opposite the Utilized Eurodollar Rate or the Utilized Base Rate, as applicable.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                      
|----------------------
|                      
|BASIS FOR             
|PRICING               
|                      
|                      
|                      
|                      
|                      
|                      
|                      
|Basis Points Per Annum
|                      
|Eurodollar Rate       
|                      
|Base Rate             
|                      
|Utilized Eurodollar   
|Rate                  
|                      
|Utilized Base Rate    
|                      

* or unrated

| | The
Applicable Margin will be based upon the Level corresponding to the Reference Ratings at
the time of determination. Any change in the Applicable Margin resulting from a change in
the Reference Ratings shall be effective, as to any Advance, as of the date on which the
applicable rating agency announces the applicable change in ratings. The Applicable Margin
set forth above shall be increased at all times following the effective date of the Term
Election, by 37.5 basis points at Levels 1, 2, 3 and 4 and by 50.0 basis points at Levels
5 and 6.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Applicable
Ratemeans:
| | -----------------------

| | (i)                             in
the case of each Base Rate Advance, a rate per annum equal at all
               times to the sum of the Alternate Base Rate in effect from time to time plus the
Applicable Margin in effect from time to time; and
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii)                             in
the case of each Eurodollar Rate Advance comprising part of the same
               Borrowing, a rate per annum during each Interest Period equal at
all                times to the sum of the Eurodollar Rate for such Interest Period plus the
               Applicable Margin in effect from time to time during such Interest Period.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Available
Commitment means, for each Lender at any time on any day, the unused
portion of such Lenders Commitment, computed after giving effect to all Extensions
of Credit made or to be made on such day, the application of proceeds therefrom, all
prepayments and repayments of Advances made on such day and all reductions in the LC
Outstandings made on such day.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Available
Commitments means the aggregate of the Lenders Available
Commitments hereunder.
| | --------------------------------------------------------------------------------------------

| | Bankshas
the meaning assigned to that term in the Preamble to this Agreement.
| | -------------------------------------------------------------------------------

| | Base
Rate Advance means an Advance that bears interest as provided in
Section 2.07(a).
| | ----------------------------------------------------------------------------------------

| | Borrowing
means a borrowing consisting of simultaneous Advances of the same Type, having the same
Interest Period and ratably made or Converted on the same day by each of the Lenders
pursuant to Section 2.02 or 2.10, as the case may be. All Advances of the same Type,
having the same Interest Period and made or Converted on the same day shall be deemed a
single Borrowing hereunder until repaid or next Converted.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Business
Day means a day of the year on which banks are not required or
authorized to close in New York City, Chicago, Illinois or Madison, Wisconsin and, if the
applicable Business Day relates to any Eurodollar Rate Advance, on which dealings are
carried on in the London interbank market.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Capitalized
Lease Obligations means obligations to pay rent or other amounts
under any lease of (or other arrangement conveying the right to use) real and/or personal
property which obligation is required to be classified and accounted for as a capital
lease on a balance sheet prepared in accordance with GAAP, and for purposes hereof the
amount of such obligations shall be the capitalized amount determined in accordance with
such principles.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Cash
and Cash Equivalents means, with respect to any Person, the aggregate
amount of the following, to the extent owned by such Person free and clear of all Liens,
encumbrances and rights of others and not subject to any judicial, regulatory or other
legal constraint: (i) cash on hand; (ii) Dollar demand deposits maintained in
the United States with any commercial bank and Dollar time deposits maintained in the
United States with, or certificates of deposit having a maturity of one year or less
issued by, any commercial bank which has an office in the United States and which has a
combined capital and surplus of at least $100,000,000; (iii) eurodollar time deposits
maintained in the United States with, or eurodollar certificates of deposit having a
maturity of one year or less issued by, any commercial bank having outstanding unsecured
indebtedness that is rated (on the date of acquisition thereof) A- or better by S&P or
A3 or better by Moodys (or an equivalent rating by another nationally-recognized
credit rating agency of similar standing if neither of such corporations is then in the
business of rating unsecured bank indebtedness); (iv) direct obligations of, or
unconditionally guaranteed by, the United States and having a maturity of one year or
less; (v) commercial paper rated (on the date of acquisition thereof) A-1 or P-1 or
better by S&P or Moodys, respectively (or an equivalent rating by another
nationally-recognized credit rating agency of similar standing if neither of such
corporations is then in the business of rating commercial paper), and having a maturity of
one year or less; (vi) obligations with any Lender or any other commercial bank in
respect of the repurchase of obligations of the type described in clause (iv) above,
provided that such repurchase obligations shall be fully secured by obligations of
the type described in said clause (iv) and the possession of such obligations shall be
transferred to, and segregated from other obligations owned by, such Lender or such other
commercial bank; and (vii) preferred stock of any Person that is rated A- or better
by S&P or A3 or better by Moodys (or an equivalent rating by another
nationally-recognized credit rating agency of similar standing if neither of such
corporations is then in the business of rating preferred stock of entities engaged in such
businesses).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Cash
Collateral Account has the meaning assigned to that term in Section
6.02.
| | --------------------------------------------------------------------------------

| | Certifying
Officer has the meaning assigned to that term in Section
5.01(h)(iv).
| | ----------------------------------------------------------------------------------

| | Closing
means the day upon which each of the applicable conditions precedent enumerated in
Section 3.01 shall be fulfilled to the satisfaction of, or waived with the consent
of, the Lenders, the Agent, the LC Issuing Bank and the Borrower. All transactions
contemplated by the Closing shall take place on a Business Day on or prior to September
30, 2003, at the offices of King & Spalding LLP, 1185 Avenue of the Americas, New
York, New York 10036, at 10:00 a.m. (New York City time), or such later Business Day
as the parties hereto may mutually agree.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | "Co-Lead
Arrangers"shall mean, collectively, Banc One Capital Markets, Inc. and Wachovia
Capital Markets, LLC.
| | --------------------------------------------------------------------------------------------------------------

| | Commitmentmeans, for each Lender, the obligation of such Lender to make Advances to
the Borrower and to participate in the reimbursement obligations of the Borrower in
respect of Letters of Credit in an amount no greater than the amount set forth on
Schedule I hereto or, if such Lender has entered into one or more Lender Assignments,
set forth for such Lender in the Register maintained by the Agent pursuant to
Section 8.07(c), in each such case as such amount may be reduced from time to time
pursuant to Section 2.05(a), (b) or (c).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Commitmentsmeans
the total of the Lenders Commitments hereunder.
| | -------------------------------------------------------------------

| | Confidential
Information has the meaning assigned to that term in Section 8.08.
| | ---------------------------------------------------------------------------------

| | Consenting
Lenders has the meaning assigned to that term in Section 2.18(c).
| | ------------------------------------------------------------------------------

| | Consolidated
Capital means, with respect to any Person, at any date of
determination, the sum of (i) Consolidated Debt of such Person,
(ii) consolidated equity of the common stockholders of such Person and its
Consolidated Subsidiaries, (iii) consolidated equity of the preference stockholders
of such Person and its Consolidated Subsidiaries and (iv) consolidated equity of the
preferred stockholders of such Person and its Consolidated Subsidiaries, in each case
determined at such date in accordance with GAAP.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Consolidated
Debt means, with respect to any Person, at any date of determination,
the aggregate Debt of such Person and its Consolidated Subsidiaries determined on a
consolidated basis in accordance with GAAP, but shall not include Nonrecourse Debt of the
Borrower or any of its Subsidiaries.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Consolidated
Subsidiary means, with respect to any Person, any Subsidiary of such
Person whose accounts are or are required to be consolidated with the accounts of such
Person in accordance with GAAP.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Convert,
Conversion and Converted
each refers to a conversion of Advances of one Type into Advances of another Type, or to
the selection of a new, or the renewal of the same, Interest Period for Advances, as the
case may be, pursuant to Section 2.09 or 2.10.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Debenture
Indenture means that certain Indenture, dated as of June 20,
1997, between the Borrower and Firstar Trust Company, as Trustee, as amended and
supplemented from time to time.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Debt
means, for any Person, any and all indebtedness, liabilities and other monetary
obligations of such Person (i) for borrowed money or evidenced by bonds, debentures,
notes or other similar instruments, (ii) to pay the deferred purchase price of
property or services (except trade accounts payable arising and repaid in the ordinary
course of business), (iii) Capitalized Lease Obligations, (iv) under
reimbursement or similar agreements with respect to letters of credit (other than trade
letters of credit) issued to support indebtedness or obligations of such Person or of
others of the kinds referred to in clauses (i) through (iii) above and clause (v) below,
(v) reasonably quantifiable obligations under direct guaranties or indemnities, or
under support agreements, in respect of, and reasonably quantifiable obligations
(contingent or otherwise) to purchase or otherwise acquire, or otherwise to assure a
creditor against loss in respect of, or to assure an obligee against failure to make
payment in respect of, indebtedness or obligations of others of the kinds referred to in
clauses (i) through (iv), above, and (vi) in respect of unfunded vested benefits
under Plans. In determining Debt for any Person, there shall be included accrued interest
on the principal amount thereof to the extent such interest has accrued for more than six
months.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Default
Rate means (i) with respect to the unpaid principal of or
interest on any Advance, the greater of (A) 2% per annum above the Applicable
Rate in effect from time to time for such Advance and (B) 2% per annum above
the Applicable Rate in effect from time to time for Base Rate Advances and (ii) with
respect to any other unpaid amount hereunder, 2% per annum above the Applicable
Rate in effect from time to time for Base Rate Advances.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Dollarsand
the sign $ each means lawful money of the United States.
| | -----------------------------------------------------------------------

| | Domestic
Lending Office means, with respect to any Lender, the office or
affiliate of such Lender specified as its Domestic Lending
Office opposite its name on Schedule I hereto or in the Lender
Assignment pursuant to which it became a Lender, or such other office or affiliate of such
Lender as such Lender may from time to time specify in writing to the Borrower and the
Agent.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Eligible
Assignee means (i) a commercial bank or trust company organized
under the laws of the United States, or any State thereof; (ii) a commercial bank
organized under the laws of any other country that is a member of the OECD, or a political
subdivision of any such country, provided that such bank is acting through a branch
or agency located in the United States; (iii) the central bank of any country that is
a member of the OECD; and (iv) any other commercial bank or other financial
institution engaged generally in the business of extending credit or purchasing debt
instruments; provided, however, that (A) any such Person shall also
(1) have outstanding unsecured indebtedness that is rated A- or better by S&P or
A3 or better by Moodys (or an equivalent rating by another nationally-recognized
credit rating agency of similar standing if neither of such rating agencies is then in the
business of rating unsecured indebtedness of entities engaged in such businesses) or
(2) have combined capital and surplus (as established in its most recent report of
condition to its primary regulator) of not less than $250,000,000 (or its equivalent in
foreign currency), (B) any Person described in clause (ii), (iii) or (iv) above
shall, on the date on which it is to become a Lender hereunder, (x) be entitled to
receive payments hereunder without deduction or withholding of any United States Federal
income taxes (as contemplated by Section 2.16) and (y) not be incurring any
losses, costs or expenses of the type for which such Person could demand payment under
Section 2.12, and (C) any Person described in clause (ii), (iii) or (iv) above
shall, in addition, be reasonably acceptable to the Agent, the LC Issuing Bank and, so
long as no Event of Default shall have occurred and be continuing, the Borrower.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Equity
Interests means, (i) with respect to a corporation, shares of
capital stock of such corporation or any other interest convertible or exchangeable into
any such interest, (ii) with respect to a limited liability company, a membership
interest in such company, (iii) with respect to a partnership, a partnership interest
in such partnership, and (iv) with respect to any other Person, an interest in such
Person analogous to interests described in clauses (i) through (iii).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ERISA
means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the regulations promulgated and rulings issued thereunder.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ERISA
Affiliate means, with respect to any Person, any trade or business
(whether or not incorporated) which is a member of a group of which such Person is a
member and which is under common control within the meaning of the regulations under
Section 414(b) or (c) of the Internal Revenue Code of 1986, as amended from time
to time.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ERISA
Event means (i) the occurrence of a reportable event, within the
meaning of Section 4043 of ERISA, unless the 30-day notice requirement with respect
thereto has been waived by the PBGC; (ii) the provision by the administrator of any
Plan of notice of intent to terminate such Plan, pursuant to Section 4041(a)(2) of
ERISA (including any such notice with respect to a plan amendment referred to in
Section 4041(e) of ERISA); (iii) the cessation of operations at a facility in
the circumstances described in Section 4062(e) of ERISA; (iv) the withdrawal by
the Parent or an ERISA Affiliate of the Parent from a Multiple Employer Plan or a
Multiemployer Plan during a plan year for which it was a substantial employer,
as defined in Section 4001(a)(2) of ERISA; (v) the failure by the Parent or an
ERISA Affiliate of the Parent to make a payment to a Plan required under
Section 302(f)(1) of ERISA, which failure results in the imposition of a lien for
failure to make required payments; (vi) the adoption of an amendment to a Plan
requiring the provision of security to such Plan, pursuant to Section 307 of ERISA;
or (vii) the institution by the PBGC of proceedings to terminate a Plan, pursuant to
Section 4042 of ERISA, or the occurrence of any event or condition which might
reasonably be expected to constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, a Plan.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Eurocurrency
Liabilities has the meaning assigned to that term in Regulation D of
the Board of Governors of the Federal Reserve System, as in effect from time to time.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Eurodollar
Lending Office means, with respect to any Lender, the office or
affiliate of such Lender specified as its Eurodollar Lending Office opposite
its name on Schedule I hereto or in the Lender Assignment pursuant to which it became
a Lender (or, if no such office is specified, its Domestic Lending Office), or such other
office or affiliate of such Lender as such Lender may from time to time specify in writing
to the Borrower and the Agent.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Eurodollar
Rate means, for each Interest Period for each Eurodollar Rate Advance
made as part of the same Borrowing, an interest rate per annum equal to the average
(rounded upward to the nearest whole multiple of 1/16 of 1% per annum, if such
average is not such a multiple) of the rate per annum at which deposits in U.S.
dollars are offered by the principal office of each of the Reference Banks in London,
England to prime banks in the London interbank market at 11:00 a.m. (London time) two
Business Days before the first day of such Interest Period in an amount substantially
equal to such Reference Banks Eurodollar Rate Advance made as part of such Borrowing
and for a period equal to such Interest Period. The Eurodollar Rate for the Interest
Period for each Eurodollar Rate Advance made as part of the same Borrowing shall be
determined by the Agent on the basis of applicable rates furnished to and received by the
Agent from the Reference Banks two Business Days before the first day of such Interest
Period, subject, however, to the provisions of Section 2.09.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Eurodollar
Rate Advance means an Advance that bears interest as provided in
Section 2.07(b).
| | ----------------------------------------------------------------------------------------------

| | Eurodollar
Reserve Percentage of any Lender for each Interest Period for each
Eurodollar Rate Advance means the reserve percentage applicable to such Lender during such
Interest Period (or if more than one such percentage shall be so applicable, the daily
average of such percentages for those days in such Interest Period during which any such
percentage shall be so applicable) under Regulation D or other regulations issued
from time to time by the Board of Governors of the Federal Reserve System (or any
successor) for determining the maximum reserve requirement (including, without limitation,
any emergency, supplemental or other marginal reserve requirement) then applicable to such
Lender with respect to liabilities or assets consisting of or including Eurocurrency
Liabilities having a term equal to such Interest Period.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Events
of Default has the meaning assigned to that term in Section 6.01.
| | --------------------------------------------------------------------------

| | Existing
Facility means the $150,000,000 Credit Agreement, dated as of October
11, 2002, among the Borrower, the banks named therein and Citibank, N.A., as the
administrative agent.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Extension
of Credit means (i) the disbursement of the proceeds of any
Borrowing and (ii) the issuance of a Letter of Credit or the amendment of any Letter
of Credit having the effect of extending the stated termination date thereof or increasing
the maximum amount available to be drawn thereunder.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Facility
Fee means a fee that shall be payable on the aggregate amount of the
Commitment of each Lender, irrespective of usage, payable to each Lender on the amount of
its Commitment at the rate (expressed in basis points per annum) set forth below in
the columns identified as Level 1, Level 2, Level 3, Level 4, Level 5 or Level 6
based on the Reference Ratings.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|            
|------------
|            
|BASIS FOR   
|PRICING     
|            
|            
|            
|            
|            
|            
|            
|Basis Points
|            

* or unrated

| | The
Facility Fee will be based upon the Level corresponding to the Reference Ratings at the
time of determination. Any change in the Facility Fee resulting from a change in the
Reference Ratings shall be effective as of the date on which the applicable rating agency
announces the applicable change in ratings.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Federal
Funds Rate means, for any period, a fluctuating interest rate per
annum equal for each day during such period to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System arranged
by Federal funds brokers, as published for such day (or, if such day is not a Business
Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if
such rate is not so published for any day which is a Business Day, the average of the
quotations for such day on such transactions received by the Agent from three Federal
funds brokers of recognized standing selected by it.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | First
Mortgage Bond Indenture means that certain Indenture, dated as of
August 1, 1941, between the Borrower and First Wisconsin Trust Company and
George B. Luhman, as Trustees, as amended and supplemented from time to time.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | GAAPhas
the meaning assigned to that term in Section 1.04.
| | ------------------------------------------------------------

| | Governmental
Approval means any authorization, consent, approval, license,
franchise, lease, ruling, tariff, rate, permit, certificate, exemption of, or filing or
registration with, any governmental authority or other legal or regulatory body.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Granting
Lender has the meaning assigned to that term in Section 8.07(i).
| | ---------------------------------------------------------------------------

| | Hazardous
Substance means any waste, substance, or material identified as
hazardous, dangerous or toxic by any office, agency, department, commission, board,
bureau, or instrumentality of the United States or of the State or locality in which the
same is located having or exercising jurisdiction over such waste, substance or material.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Hostile
Acquisition means any acquisition involving a tender offer or proxy
contest that has not been recommended or approved by the board of directors (or similar
governing body) of the Person that is the subject of such acquisition prior to the first
public announcement or disclosure relating to such acquisition.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Indemnified
Personhas the meaning assigned to that term in Section 8.04(c).
| | -----------------------------------------------------------------------------

| | Indenturesmeans
the Debenture Indenture and the First Mortgage Bond Indenture.
| | --------------------------------------------------------------------------------

| | Interest
Period means, for each Eurodollar Rate Advance made as part of the
same Borrowing, the period commencing on the date of such Eurodollar Rate Advance or
the date of the Conversion of any Advance into such a Eurodollar Rate Advance and
ending on the last day of the period selected by the Borrower pursuant to the provisions
below and, thereafter, each subsequent period commencing on the last day of the
immediately preceding Interest Period and ending on the last day of the period selected by
the Borrower pursuant to the provisions below. The duration of each such Interest Period
shall be 1, 2, 3 or 6 months, as the Borrower may, upon notice received by the Agent not
later than 11:00 a.m. on the third Business Day prior to the first day of such Interest
Period, select; provided, however, that:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) |  | the Borrower may not select any Interest Period that ends after the Termination
                    Date;
|--- |  | ---------------------------------------------------------------------------------------------------------

|(ii) |  | Interest Periods commencing on the same date for Advances comprising part of the
                    same Borrowing shall be of the same duration; and
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------

|(iii) |  | whenever the last day of any Interest Period would otherwise occur on a day
                    other than a Business Day, the last day of such Interest Period shall be
                    extended to occur on the next succeeding Business Day, provided, in the case of
                    any Interest Period for a Eurodollar Rate Advance, that if such extension would
                    cause the last day of such Interest Period to occur in the next following
                    calendar month, the last day of such Interest Period shall occur on the next
                    preceding Business Day.
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | IPLmeans
Interstate Power and Light Company, an Iowa corporation.
| | -------------------------------------------------------------------

| | IPL
Facility means the $200,000,000 364-Day Credit Agreement, dated as of
October 11, 2002, as amended, among IPL, the banks named therein and Citibank, N.A., as
administrative agent.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | LC
Fee is defined in Section 2.04(b).
| | ---------------------------------------

| | LC
Issuing Bank has the meaning assigned to that term in the preamble
to this Agreement.
| | ------------------------------------------------------------------------------------------

| | LC
Outstandings means, on any date of determination, the sum of the
undrawn stated amounts of all Letters of Credit that are outstanding on such date plus the
aggregate principal amount of all unpaid reimbursement obligations of the Borrower on such
date with respect to payments made by the LC Issuing Bank under Letters of Credit.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | LC
Payment Notice is defined in Section 2.03(d).
| | --------------------------------------------------

| | Lender
Assignment means an assignment and acceptance agreement entered into
by a Lender and an Eligible Assignee, and accepted by the Agent and the LC Issuing Bank,
in substantially the form of Exhibit 8.07.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Lenders
means the Banks listed on the signature pages hereof and each Eligible Assignee that shall
become a party hereto pursuant to Section 8.07.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | Letter
of Credit means letters of credit issued by the LC Issuing Bank
pursuant to Section 2.03.
| | --------------------------------------------------------------------------------------------------

| | Lienhas
the meaning assigned to that term in Section 5.02(a).
| | ---------------------------------------------------------------

| | Loan
Documents means (i) this Agreement, any Note issued pursuant to
Section 2.15, the Administrative Agency Fee Letter and the Arranger Fee Letter,
(ii) all agreements, documents and instruments in favor of the Agent, the LC Issuing
Bank or the Lenders (or the Agent on behalf of the LC Issuing Bank or the Lenders), and
(iii) all other agreements, instruments and documents now or hereafter executed
and/or delivered pursuant hereto or thereto.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Majority
Lenders means, on any date of determination, Lenders that,
collectively, on such date (i) hold greater than 50% of the then outstanding Advances
and participation obligations with respect to the LC Outstandings and, (ii) if there are
no Outstanding Credits, have Percentages in the aggregate greater than 50%. Any
determination of those Lenders constituting the Majority Lenders shall be made by the
Agent and shall be conclusive and binding on all parties absent manifest error.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Margin
Stock has the meaning assigned to that term in Regulation U of the
Board of Governors of the Federal Reserve System.
| | -----------------------------------------------------------------------------------------------------------------------------

| | Material
Adverse Change means (i) a material adverse change in, or a
material adverse effect upon, the operations, business, properties, liabilities (actual or
contingent), condition (financial or otherwise) or prospects of the Borrower or the
Borrower and its Subsidiaries taken as a whole; provided, however, a
downgrade by S&P or Moodys of its rating of the Borrower or any Debt of the
Borrower shall not, in and of itself, be deemed to be a Material Adverse Change, but for
purposes of clarity in interpreting the foregoing, it is agreed that the event, change,
circumstance or condition that causes such downgrade (or an announcement of a potential
downgrade or a review for possible ratings change) of any such rating, and the effect or
change caused by such downgrade (or an announcement of a potential downgrade or a review
for possible ratings change), will be considered in whether there has been a Material
Adverse Change; provided, further, the fact that the Borrower is unable to issue
Debt in the commercial paper market due to market conditions generally affecting the
commercial paper market shall not, in and of itself, be deemed to be a Material Adverse
Change; (ii) a material impairment of the ability of the Borrower to perform its
obligations under any Loan Document to which it is a party; or (iii) a material
adverse change upon the legality, validity, binding effect or enforceability against the
Borrower of any Loan Document to which it is a party.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Moodysmeans
Moodys Investors Service, Inc. or any successor thereto.
| | ------------------------------------------------------------------------

| | Multiemployer
Plan means a multiemployer plan, as defined in
Section 4001(a)(3) of ERISA, which is subject to Title IV of ERISA and to which the
Parent or any ERISA Affiliate of the Parent is making or accruing an obligation to make
contributions, or has within any of the preceding five plan years made or accrued an
obligation to make contributions, such plan being maintained pursuant to one or more
collective bargaining agreements.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Multiple
Employer Plan means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, which is subject to Title IV of ERISA and (i) is
maintained for employees of the Parent or an ERISA Affiliate of the Parent and at least
one Person other than the Parent and its ERISA Affiliates or (ii) was so maintained
and in respect of which the Parent or an ERISA Affiliate of the Parent could have
liability under Section 4064 or 4069 of ERISA in the event such plan has been or were
to be terminated.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Non-Consenting
Lender has the meaning assigned to that term in Section 2.18(b).
| | ---------------------------------------------------------------------------------

| | Non-Performing
Lenderhas the meaning assigned to that term in Section 2.03(e).
| | --------------------------------------------------------------------------------

| | Nonrecourse
Debt means any Debt that finances the acquisition, development,
ownership or operation of an asset to the extent that the Person to which such Debt is
owed has no recourse whatsoever to the Borrower or any of its Affiliates other than:
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) |  | recourse to the named obligor with respect to such Debt (the
                    Debtor) for amounts limited to the cash flow or
                    net cash flow (other than historic cash flow or historic net cash flow) from the
                    asset; and
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) |  | recourse to the Debtor for the purpose only of enabling amounts to be claimed in
                    respect of such Debt in an enforcement of any security interest or lien given by
                    the Debtor over the asset or the income, cash flow or other proceeds deriving
                    from the asset (or given by any shareholder or the like in the Debtor over its
                    shares or like interest in the capital of the Debtor) to secure the Debt, but
                    only if the extent of the recourse to the Debtor is limited solely to the amount
                    of any recoveries made on any such enforcement;
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iii) |  | recourse to the Debtor generally or indirectly to any Affiliate of the Debtor,
                    under any form of assurance, undertaking or support, which recourse is limited
                    to a claim for damages (other than liquidated damages and damages required to be
                    calculated in a specified way) for a breach of an obligation (other than a
                    payment obligation or an obligation to comply or to procure compliance by
                    another with any financial ratios or other tests of financial condition) by the
                    Person against which such recourse is available; and
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iv) |  | recourse to the Debtor, if such Debtors assets are limited to the asset so
                    acquired, developed, owned or operated and other assets used in connection with
                    or produced by the operation of the asset so acquired, developed, owned or
                    operated.
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Note
means a promissory note issued at the request of a Lender pursuant to Section 2.15, in
substantially the form of Exhibit 1.01 hereto, evidencing the aggregate indebtedness of
the Borrower to such Lender resulting from the Advances made by such Lender.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Notice
of Borrowing has the meaning assigned to that term in Section 2.02(a).
| | -------------------------------------------------------------------------------

| | Notice
of Conversion has the meaning assigned to that term in Section 2.10.
| | -----------------------------------------------------------------------------

| | OECDmeans
the Organization for Economic Cooperation and Development.
| | ----------------------------------------------------------------------

| | Other
Taxes has the meaning assigned to that term in Section 2.16(b).
| | -----------------------------------------------------------------------

| | Outstanding
Credits means, on any date of determination, an amount equal to the
sum of (i) the aggregate principal amount of all Borrowings outstanding on such date
plus (ii) the LC Outstandings on such date.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Parentmeans
Alliant Energy Corporation, a Wisconsin corporation.
| | ------------------------------------------------------------------

| | PBGC
means the Pension Benefit Guaranty Corporation (or any successor entity) established under
ERISA.
| | --------------------------------------------------------------------------------------------------------

| | Percentage
means, for any Lender on any date of determination, the percentage obtained by dividing
such Lenders Commitment on such day by the total of the Commitments on such date,
and multiplying the quotient so obtained by 100%.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Person
means an individual, partnership, corporation (including a business trust), limited
liability company, joint stock company, trust, unincorporated association, joint venture
or other entity, or a government or any political subdivision or agency thereof.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Planmeans
a Single Employer Plan or a Multiple Employer Plan.
| | ---------------------------------------------------------------

| | PSC
Order means the order of the Public Service Commission of Wisconsin
(File No. 6680-SB-122), dated May 4, 2001.
| | --------------------------------------------------------------------------------------------------------------------

| | PUHCAmeans
the Public Utility Holding Company Act of 1935, as amended from time to time.
| | ------------------------------------------------------------------------------------------

| | Reference
Banks means Bank One and Wachovia Bank, National Association, and any
additional or substitute Lenders as may be selected from time to time to act as Reference
Banks hereunder by the Agent.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Reference
Ratings means the ratings assigned by S&P and Moodys to the
Reference Securities. For purposes of the foregoing, if the ratings assigned to such
Reference Security by S&P and Moodys, respectively, are not comparable
(i.e., a split rating) by: (x) one level, the level corresponding to
the lower of such two ratings shall control, or (y) two or more levels, the level
corresponding to the rating one level above the lower of such two ratings shall control,
unless either rating is below BBB- or unrated (in the case of S&P) or Baa3 or unrated
(in the case of Moodys), in which case the lower of the two ratings shall control.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Reference
Securities means the Borrowers senior unsecured non-credit
enhanced long-term debt.
| | ------------------------------------------------------------------------------------------------

| | Registerhas
the meaning assigned to that term in Section 8.07(c).
| | -------------------------------------------------------------------

| | Reporthas
the meaning assigned to that term in Section 5.01(h)(iv).
| | ---------------------------------------------------------------------

| | Request
for Issuance means a request made pursuant to Section 2.03(a) in
the form of Exhibit 2.03.
| | ----------------------------------------------------------------------------------------------------

| | Revolving
Commitment Termination Date means the earlier to occur of
(i) September 28, 2004, or such later date as to which the Lenders may from time to
time agree pursuant to Section 2.18 and (ii) the date of termination or
reduction in whole of the Commitments pursuant to Section 2.05 or 6.01.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | S&P
means Standard & Poors Ratings Services, a division of The McGraw-Hill
Companies, Inc., or any successor thereto.
| | ------------------------------------------------------------------------------------------------------------------------

| | Senior
Financial Officer means the President, the Chief Executive Officer,
the Chief Financial Officer or the Treasurer of the Borrower.
| | ------------------------------------------------------------------------------------------------------------------------------------------

| | Significant
Subsidiary means any Subsidiary of the Borrower that, on a
consolidated basis with any of its Subsidiaries as of any date of determination, accounts
for more than 20% of the consolidated assets (valued at book value) of the Borrower and
its Subsidiaries.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Single
Employer Plan means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, which is subject to Title IV of ERISA and which
(i) is maintained for employees of the Parent or an ERISA Affiliate of the Parent and
no Person other than the Parent and its ERISA Affiliates, or (ii) was so maintained
and in respect of which the Parent or an ERISA Affiliate of the Parent could have
liability under Section 4069 of ERISA in the event such plan has been or were to be
terminated.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | SPChas
the meaning assigned to that term in Section 8.07(i).
| | --------------------------------------------------------------

| | Subsidiary
means, with respect to any Person, any corporation or unincorporated entity of which more
than 50% of the outstanding Equity Interests having ordinary voting power (irrespective of
whether at the time Equity Interests of any other class or classes of such corporation or
entity shall or might have voting power upon the occurrence of any contingency) is at the
time owned by said Person, either directly or through one or more other Subsidiaries. In
the case of an unincorporated entity, a Person shall be deemed to have more than 50% of
interests having ordinary voting power only if such Persons vote in respect of such
interests comprises more than 50% of the total voting power of all such interests in the
unincorporated entity.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Taxeshas
the meaning assigned to that term in Section 2.16(a).
| | ----------------------------------------------------------------

| | Term
Election has the meaning assigned to that term in Section 2.18(a).
| | -------------------------------------------------------------------------

| | Termination
Date means the Revolving Commitment Termination Date, or, if the
Borrower shall have made the Term Election, the first anniversary of the Revolving
Commitment Termination Date.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Type
has the meaning assigned to that term (i) in the definition of Advance
when used in such context and (ii) in the definition of Borrowing when
used in such context.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Unmatured
Default means an event that, with the giving of notice or lapse of
time, or both, would constitute an Event of Default.
| | -----------------------------------------------------------------------------------------------------------------------------------

| | Utilization
Percentage means, as of any time for the determination thereof, the
percentage obtained by dividing the aggregate Outstanding Credits by the aggregate
Commitments then in effect.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SECTION 1.02.    
          Computation of Time Periods. Unless otherwise indicated,
          each reference in this Agreement to a specific time of day is a reference to
          Chicago, Illinois time. In the computation of periods of time under this
          Agreement, any period of a specified number of days or months shall be computed
          by including the first day or month occurring during such period and excluding
          the last such day or month. In the case of a period of time from a
          specified date to or until a later specified date, the
          word from means from and including and the words
          to and until each means to but excluding.

SECTION 1.03.    
          Computations of Outstandings. Whenever reference is made in
          this Agreement to the principal amount outstanding on any date under
          this Agreement, such reference shall refer to the aggregate principal amount of
          all Advances outstanding on such date after giving effect to all Advances to be
          made on such date and the application of the proceeds thereof.

SECTION 1.04.    
          Accounting Terms. All accounting terms not specifically
          defined herein shall be construed in accordance with generally accepted
          accounting principles (GAAP) consistent with
          those applied in the preparation of the financial statements referred to in
          Section 4.01(f).

# ARTICLE II 
AMOUNTS AND TERMS OF
THE EXTENSIONS OF CREDIT

|SECTION 2.01. | The Advances.
|------------- | -------------

|(a) | Each Lender severally agrees, on the terms and conditions hereinafter set forth,
          to make Advances to the Borrower from time to time, during the period from and
          including the date hereof, to and up to, but excluding, the Revolving Commitment
          Termination Date, in an aggregate outstanding amount not to exceed at any time
          such Lenders Available Commitment. Each Borrowing shall be in an aggregate
          amount not less than $5,000,000 (or, if lower, the amount of the Available
          Commitments) or an integral multiple of $1,000,000 in excess thereof and shall
          consist of Advances of the same Type made on the same day by the Lenders ratably
          according to their respective Percentages. Within the limits of each
          Lenders Commitment and as hereinabove and hereinafter provided, the
          Borrower may request Borrowings hereunder, and repay or prepay Advances pursuant
          to Section 2.11 and utilize the resulting increase in the Available
          Commitments for further Extensions of Credit in accordance with the terms
          hereof.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | In no event shall the Borrower be entitled to request or receive any Borrowings
          that would cause the Outstanding Credits to exceed the Commitments.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 2.02. | Making the Advances.
|------------- | --------------------

|(a) | Each Borrowing shall be made on notice, given not later than 11:00 a.m.
          (i) on the third Business Day prior to the date of the proposed Borrowing,
          in the case of a Borrowing comprised of Eurodollar Rate Advances and
          (ii) on the date of the proposed Borrowing, in the case of a Borrowing
          comprised of Base Rate Advances, in each case by the Borrower to the Agent,
          which shall give to each Lender prompt notice thereof by telecopier, telex or
          cable. Each such notice of a Borrowing (a Notice of
          Borrowing) shall be by telecopier, telex or cable, in
          substantially the form of Exhibit 2.02(a) hereto, specifying therein the
          requested (A) date of such Borrowing, (B) Type of Advances comprising such
          Borrowing, (C) aggregate amount of such Borrowing and (D) in the case
          of a Borrowing comprised of Eurodollar Rate Advances, the initial Interest
          Period for each such Advance. Each Lender shall, before (x) 12:00 noon on
          the date of such Borrowing, in the case of a Borrowing comprised of Eurodollar
          Rate Advances, and (y) 1:00 p.m. on the date of such Borrowing, in the case
          of a Borrowing comprised of Base Rate Advances, make available for the account
          of its Applicable Lending Office to the Agent at its address referred to in
          Section 8.02, in same day funds, such Lenders ratable portion of such
          Borrowing. After the Agents receipt of such funds and upon fulfillment of
          the applicable conditions set forth in Article III, the Agent will promptly
          make such funds available to the Borrower at the Agents aforesaid address.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Each Notice of Borrowing shall be irrevocable and binding on the Borrower. In
          the case of any Borrowing which the related Notice of Borrowing specifies is to
          be comprised of Eurodollar Rate Advances, the Borrower shall indemnify each
          Lender against any loss, cost or expense incurred by such Lender as a result of
          any failure to fulfill on or before the date specified in such Notice of
          Borrowing for such Borrowing the applicable conditions set forth in
          Article III, including, without limitation, any loss, cost or expense
          incurred by reason of the liquidation or reemployment of deposits or other funds
          acquired by such Lender to fund the Eurodollar Rate Advance to be made by such
          Lender as part of such Borrowing when such Advance, as a result of such failure,
          is not made on such date.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Unless the Agent shall have received notice from a Lender prior to the date of
          any Borrowing that such Lender will not make available to the Agent such
          Lenders Advance as part of such Borrowing, the Agent may assume that such
          Lender has made such Advance available to the Agent on the date of such
          Borrowing in accordance with subsection (a) of this Section 2.02 and the
          Agent may, in reliance upon such assumption, make available to the Borrower on
          such date a corresponding amount. If and to the extent that such Lender shall
          not have so made such Advance available to the Agent, such Lender and the
          Borrower severally agree to repay to the Agent forthwith on demand such
          corresponding amount, together with interest thereon, for each day from the date
          such amount is made available to the Borrower until the date such amount is
          repaid to the Agent, at (i) in the case of the Borrower, the interest rate
          applicable at the time to Advances comprising such Borrowing and (ii) in the
          case of such Lender, the Federal Funds Rate. If such Lender shall repay to the
          Agent such corresponding amount, such amount so repaid shall constitute such
          Lenders Advance as part of such Borrowing for purposes of this Agreement.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The failure of any Lender to make the Advance to be made by it as part of any
          Borrowing shall not relieve any other Lender of its obligation, if any,
          hereunder to make its Advance on the date of such Borrowing, but no Lender shall
          be responsible for the failure of any other Lender to make the Advance to be
          made by such other Lender on the date of any Borrowing.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 2.03. | Letters of Credit.
|------------- | ------------------

|(a) | Subject to the terms and conditions hereof, each Letter of Credit shall be
          issued (or the stated maturity thereof extended or terms thereof modified or
          amended) on not less than two Business Days prior notice thereof by
          delivery of a Request for Issuance to the Agent (which shall promptly distribute
          copies thereof to the Lenders) and the LC Issuing Bank. Each Request for
          Issuance shall specify (i) the date (which shall be a Business Day) of
          issuance of such Letter of Credit (or the date of effectiveness of such
          extension, modification or amendment) and the stated expiry date thereof (which
          shall be no later than the Revolving Commitment Termination Date), (ii) the
          proposed stated amount of such Letter of Credit (which shall not be less than
          $1,000,000), (iii) the name and address of the beneficiary of such Letter
          of Credit and (iv) a statement of drawing conditions applicable to such
          Letter of Credit, and if such Request for Issuance relates to an amendment or
          modification of a Letter of Credit, it shall be accompanied by the consent of
          the beneficiary of the Letter of Credit thereto. Each Request for Issuance shall
          be irrevocable unless modified or rescinded by the Borrower not less than one
          day prior to the proposed date of issuance (or effectiveness) specified therein.
          Not later than 12:00 noon on the proposed date of issuance (or effectiveness)
          specified in such Request for Issuance, and upon fulfillment of the applicable
          conditions precedent and the other requirements set forth herein, the LC Issuing
          Bank shall issue (or extend, amend or modify) such Letter of Credit and provide
          notice and a copy thereof to the Agent, which shall promptly furnish copies
          thereof to the Lenders.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | No Letter of Credit shall be requested or issued hereunder if, after the
          issuance thereof, (i) the Outstanding Credits would exceed the total Commitments
          or (ii) the aggregate principal amount of outstanding Letters of Credit would
          exceed $100,000,000.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The Borrower hereby agrees to pay to the Agent for the account of the LC Issuing
          Bank and, if they shall have purchased participations in the reimbursement
          obligations of the Borrower pursuant to subsection (d) below, the Lenders,
          on demand made by the LC Issuing Bank to the Borrower, on and after each date on
          which the LC Issuing Bank shall pay any amount under any Letter of Credit issued
          by the LC Issuing Bank, a sum equal to the amount so paid plus interest on such
          amount from the date so paid by the LC Issuing Bank until repayment to the LC
          Issuing Bank in full at a fluctuating interest rate per annum equal to the
          interest rate applicable to Base Rate Advances plus, if any amount paid by the
          LC Issuing Bank under a Letter of Credit is not reimbursed by the Borrower
          within three Business Days, 2%.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | If the LC Issuing Bank shall not have been reimbursed in full for any payment
          made by the LC Issuing Bank under a Letter of Credit issued by the LC Issuing
          Bank on the date of such payment, the LC Issuing Bank shall give the Agent and
          each Lender prompt notice thereof (an LC Payment
          Notice) no later than 12:00 noon on the Business Day
          immediately succeeding the date of such payment by the LC Issuing Bank. Each
          Lender severally agrees to purchase a participation in the reimbursement
          obligation of the Borrower to the LC Issuing Bank by paying to the Agent for the
          account of the LC Issuing Bank an amount equal to such Lenders Percentage
          of such unreimbursed amount paid by the LC Issuing Bank, plus interest on such
          amount at a rate per annum equal to the Federal Funds Rate from the date of the
          payment by the LC Issuing Bank to the date of payment to the LC Issuing Bank by
          such Lender. Each such payment by a Lender shall be made not later than
          3:00 P.M. on the later to occur of (i) the Business Day immediately
          following the date of such payment by the LC Issuing Bank and (ii) the
          Business Day on which such Lender shall have received an LC Payment Notice from
          the LC Issuing Bank. Each Lenders obligation to make each such payment to
          the Agent for the account of the LC Issuing Bank shall be several and shall not
          be affected by the occurrence or continuance of an Event of Default or the
          failure of any other Lender to make any payment under this Section 2.03(d).
          Each Lender further agrees that each such payment shall be made without any
          offset, abatement, withholding or reduction whatsoever.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | The failure of any Lender to make any payment to the Agent for the account of
          the LC Issuing Bank in accordance with subsection (d) above shall not
          relieve any other Lender of its obligation to make payment, but no Lender shall
          be responsible for the failure of any other Lender. If any Lender (a
          Non-Performing Lender) shall fail to make any
          payment to the Agent for the account of the LC Issuing Bank in accordance with
          subsection (d) above within five Business Days after the LC Payment Notice
          relating thereto, then, for so long as such failure shall continue, the LC
          Issuing Bank shall be deemed, for purposes of Section 8.01 and Article VI
          hereof, to be a Lender owed a Borrowing in an amount equal to the outstanding
          principal amount due and payable by such Non-Performing Lender to the Agent for
          the account of the LC Issuing Bank pursuant to subsection (d) above. Any
          Non-Performing Lender and the Borrower (without waiving any claim against such
          Lender for such Lenders failure to purchase a participation in the
          reimbursement obligations of the Borrower under subsection (d) above)
          severally agree to pay to the Agent for the account of the LC Issuing Bank
          forthwith on demand such amount, together with interest thereon for each day
          from the date such Lender would have purchased its participation had it complied
          with the requirements of subsection (d) above until the date such amount is
          paid to the Agent at (i) in the case of the Borrower, the interest
          rate applicable at the time to Base Rate Advances and (ii) in the case of
          such Lender, the Federal Funds Rate.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | The payment obligations of each Lender under Section 2.03(d) and of the
          Borrower under this Agreement in respect of any payment under any Letter of
          Credit by the LC Issuing Bank shall be unconditional and irrevocable, and shall
          be paid strictly in accordance with the terms of this Agreement under all
          circumstances, including, without limitation, the following circumstances:
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

|(ii) |  | any
amendment or waiver of, or any consent to departure from, the terms of this
          Agreement, any other Loan Document or such Letter of Credit;
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------

|(iii) |  | the
existence of any claim, set-off, defense or other right which the Borrower           may
have at any time against any beneficiary, or any transferee, of such Letter           of
Credit (or any Persons for whom any such beneficiary or any such transferee           may
be acting), the LC Issuing Bank, or any other Person, whether in connection
          with this Agreement, the transactions contemplated hereby, thereby or by such
          Letter of Credit, or any unrelated transaction;
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iv) |  | any
statement or any other document presented under such Letter of Credit
          reasonably proving to be forged, fraudulent, invalid or insufficient in any
          respect or any statement therein being untrue or inaccurate in any respect;
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(v) |  | payment
in good faith by the LC Issuing Bank under the Letter of Credit issued           by the
LC Issuing Bank against presentation of a draft or certificate that does           not
comply with the terms of such Letter of Credit; or
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(vi) |  | any
other circumstance or happening whatsoever, whether or not similar to any of
          the foregoing.
|---- |  | ---------------------------------------------------------------------------------------------------------

|(g) | The Borrower assumes all risks of the acts and omissions of any beneficiary or
          transferee of any Letter of Credit. Neither the LC Issuing Bank, the Lenders nor
          any of their respective officers, directors, employees, agents or Affiliates
          shall be liable or responsible for (i) the use that may be made of such
          Letter of Credit or any acts or omissions of any beneficiary or transferee
          thereof in connection therewith; (ii) the validity, sufficiency or genuineness
          of documents, or of any endorsement thereon, even if such documents should prove
          to be in any or all respects invalid, insufficient, fraudulent or forged; (iii)
          payment by the LC Issuing Bank against presentation of documents that do not
          comply with the terms of such Letter of Credit, including failure of any
          documents to bear any reference or adequate reference to such Letter of Credit;
          or (iv) any other circumstances whatsoever in making or failing to make payment
          under such Letter of Credit. Notwithstanding any provision to the contrary
          contained in any Loan Document, the Borrower and each Lender shall have the
          right to bring suit against the LC Issuing Bank, and the LC Issuing Bank shall
          be liable to the Borrower and any Lender, to the extent of any direct, as
          opposed to consequential, damages suffered by the Borrower or such Lender which
          the Borrower or such Lender proves were caused by the LC Issuing Banks
          willful misconduct or gross negligence, including, in the case of the Borrower,
          the LC Issuing Banks willful failure to make timely payment under such
          Letter of Credit following the presentation to it by the beneficiary thereof of
          a draft and accompanying certificate(s) that strictly comply with the terms and
          conditions of such Letter of Credit. In furtherance and not in limitation of the
          foregoing, the LC Issuing Bank may accept sight drafts and accompanying
          certificates presented under the Letter of Credit issued by the LC Issuing Bank
          that appear on their face to be in order, without responsibility for further
          investigation, regardless of any notice or information to the contrary, and
          payment against such documents shall not constitute willful misconduct or gross
          negligence by the LC Issuing Bank. Notwithstanding the foregoing, no Lender
          shall be obligated to indemnify the Borrower for damages caused by the LC
          Issuing Banks willful misconduct or gross negligence.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 2.04. | Fees.
|------------- | -----

|(a) | The Borrower agrees to pay to the Agent for the account of each Lender the
          Facility Fee, from the date hereof, in the case of each Bank, and from the
          effective date specified in the Lender Assignment pursuant to which it became a
          Lender, in the case of each other Lender, until the later of the Termination
          Date and the date all Advances are paid in full, payable quarterly in arrears on
          the last day of each March, June, September and December during the
          term of such Lenders Commitment, commencing December 31, 2003, and on the
          later of the Termination Date and the date all Advances are paid in full.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The Borrower shall pay to the Agent for the account of each Lender a fee (the
          LC Fee) on the average daily amount of the sum
          of the undrawn stated amounts of all Letters of Credit outstanding on each such
          day, from the date hereof until the later to occur of the Termination Date and
          the date on which no Letters of Credit are outstanding, payable on the last day
          of each March, June, September and December (commencing December 31, 2003)
          and such later date, at a rate equal at all times to the Applicable Margin in
          effect from time to time for Eurodollar Rate Advances. In addition, the Borrower
          shall pay to the LC Issuing Bank such fees for the issuance and maintenance of
          Letters of Credit and for drawings thereunder as may be separately agreed
          between the Borrower and the LC Issuing Bank.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | In addition to the fees provided for in subsections (a) and (b) above, the
          Borrower shall pay (i) to the Agent and the LC Issuing Bank, for their own
          accounts, such fees as are provided for in the Administrative Agency Fee Letter
          and (ii) to the Lenders and the Co-Lead Arrangers, for their own accounts, such
          fees as are provided for in the Arranger Fee Letter.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 2.05. | Reduction of the Commitments.
|------------- | -----------------------------

|(a) | The Borrower shall have the right, upon at least three Business Days
          notice to the Agent, to terminate in whole or reduce ratably in part the unused
          portions of the respective Commitments of the Lenders; providedthat the
          aggregate amount of the Commitments of the Lenders shall not be reduced to an
          amount which is less than the aggregate principal amount of the Extensions of
          Credit then outstanding; and provided, further, that each partial
          reduction shall be in a minimum amount of $10,000,000 or any whole multiple of
          $1,000,000 in excess thereof.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | On and after any date following the effective date of the Term Election, if the
          Available Commitments shall exceed the aggregate principal amount of Advances
          outstanding, the Available Commitments shall automatically be reduced on such
          date by an amount equal to such excess.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | On the Termination Date, the Commitments of the Lenders shall be reduced to
          zero.
|--- | -------------------------------------------------------------------------------------------

|(d) | Any termination or reduction of the Commitments under this Section 2.05 shall be
          irrevocable, and the Commitments shall not thereafter be reinstated.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 2.06. | Repayment of Advances. The Borrower shall repay the
          principal amount of each Advance made by each Lender on the Termination Date.
|------------- | -------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 2.07. | Interest on Advances. The Borrower shall pay interest on
          the unpaid principal amount of each Advance owing to each Lender from the date
          of such Advance until such principal amount shall be paid in full, at the
          Applicable Rate for such Advance (except as otherwise provided in this
          Section 2.07), payable as follows:
|------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) | Base Rate Advances. If such Advance is a Base Rate Advance, interest
          thereon shall be payable quarterly in arrears on the last day of each March,
          June, September and December, on the date of any Conversion of such Base
          Rate Advance and on the date such Base Rate Advance shall become due and payable
          or shall otherwise be paid in full; provided that at any time an Event of
          Default shall have occurred and be continuing, each Base Rate Advance shall bear
          interest payable on demand, at a rate per annum equal at all times to the
          Default Rate.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Eurodollar Rate Advances. If such Advance is a Eurodollar Rate Advance,
          interest thereon shall be payable on the last day of such Interest Period and,
          if the Interest Period for such Advance has a duration of more than three
          months, on that day of each third month during such Interest Period that
          corresponds to the first day of such Interest Period (or, if any such month does
          not have a corresponding day, then on the last day of such month);provided that at any time an Event of Default shall have occurred and be
          continuing, each Eurodollar Rate Advance shall bear interest payable on demand,
          at a rate per annum equal at all times to the Default Rate.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 2.08. | Additional Interest on Eurodollar Rate Advances. The
          Borrower shall pay to Agent for the account of each Lender any costs actually
          incurred by such Lender with respect to Eurodollar Rate Advances that are
          attributable to such Lenders compliance with regulations of the Board of
          Governors of the Federal Reserve System requiring the maintenance of reserves
          with respect to liabilities or assets consisting of or including Eurocurrency
          Liabilities. Such costs shall be paid to the Agent for the account of such
          Lender in the form of additional interest on the unpaid principal amount of each
          Eurodollar Rate Advance of such Lender, from the date of such Advance until such
          principal amount is paid in full, at an interest rate per annum equal at
          all times to the remainder obtained by subtracting (i) the Eurodollar Rate for
          the Interest Period for such Advance from (ii) the rate obtained by dividing
          such Eurodollar Rate by a percentage equal to 100% minus the Eurodollar Reserve
          Percentage of such Lender for such Interest Period, payable on each date on
          which interest is payable on such Advance. Such additional interest shall be
          determined by such Lender and notified to the Borrower through the Agent. A
          certificate as to the amount of such additional interest, submitted to the
          Borrower and the Agent by such Lender, shall be conclusive and binding for all
          purposes, absent manifest error, provided that the determination thereof
          shall have been made by such Lender in good faith.
|------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 2.09. | Interest Rate Determination.
|------------- | ----------------------------

|(a) | Each Reference Bank agrees to furnish to the Agent timely information for the
          purpose of determining each Eurodollar Rate. If any one or more of the Reference
          Banks shall not furnish such timely information to the Agent for the purpose of
          determining any such interest rate, the Agent shall determine such interest rate
          on the basis of timely information furnished by the remaining Reference Banks.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The Agent shall give prompt notice to the Borrower and the Lenders of the
          applicable interest rate determined by the Agent for purposes of
          Section 2.07(a) or (b), and the applicable rate, if any, furnished by each
          Reference Bank for the purpose of determining the applicable interest rate under
          Section 2.07(b).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | If fewer than two Reference Banks furnish timely information to the Agent for
          determining the Eurodollar Rate, due to the unavailability of funds to such
          Reference Banks in the relevant financial markets:
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) |  | the
Agent shall forthwith notify the Borrower and the Lenders that the interest
          rate cannot be determined for Eurodollar Rate Advances;
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) |  | each
such Eurodollar Rate Advance will automatically, on the last day of the           then
existing Interest Period therefor, Convert into a Base Rate Advance (or if           such
Advance is then a Base Rate Advance, will continue as a Base Rate Advance);           and
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iii) |  | the
obligation of the Lenders to make, or to Convert Advances into, Eurodollar           Rate
Advances shall be suspended until the Agent shall notify the Borrower and           the
Lenders that the circumstances causing such suspension no longer exist.
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | If, with respect to any Eurodollar Rate Advances, the Majority Lenders notify
          the Agent that the Eurodollar Rate for any Interest Period for such Advances
          will not adequately reflect the cost to such Majority Lenders of making, funding
          or maintaining their respective Eurodollar Rate Advances for such Interest
          Period, the Agent shall forthwith so notify the Borrower and the Lenders,
          whereupon:
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) |  | each
Eurodollar Rate Advance will automatically, on the last day of the then
          existing Interest Period therefor, Convert into a Base Rate Advance; and
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) |  | the
obligation of the Lenders to make, or to Convert Advances into,           Eurodollar
Rate Advances shall be suspended until the Agent shall notify the           Borrower and
the Lenders that the circumstances causing such suspension no           longer exist.
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | If the Borrower shall fail to (i) select the duration of any Interest
          Period for any Eurodollar Rate Advance in accordance with the provisions
          contained in the definition of Interest
          Periodin Section 1.01 or (ii) provide a
          Notice of Conversion with respect to any Eurodollar Rate Advance on or prior to
          12:00 noon on the third Business Day prior to the last day of the Interest
          Period applicable thereto, the Agent will forthwith so notify the Borrower and
          the Lenders and such Advance will automatically, on the last day of the then
          existing Interest Period therefor, Convert into a Base Rate Advance.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | On the date on which the aggregate unpaid principal amount of Advances
          comprising any Borrowing shall be reduced, by payment or prepayment or
          otherwise, to less than the product of (i) $1,000,000 and (ii) the
          number of Lenders on such date, such Advances shall, if they are Advances of a
          Type other than Base Rate Advances, automatically Convert into Base Rate
          Advances, and on and after such date the right of the Borrower to Convert such
          Advances into Advances of a Type other than Base Rate Advances shall terminate;
          provided, however, that if and so long as each such Advance shall be of
          the same Type and have the same Interest Period as Advances comprising another
          Borrowing or other Borrowings, and the aggregate unpaid principal amount of all
          such Advances shall equal or exceed the product of (i) $1,000,000 and
          (ii) the number of Lenders on such date, the Borrower shall have the right
          to continue all such Advances as, or to Convert all such Advances into, Advances
          of such Type having such Interest Period.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | Upon the occurrence and during the continuance of any Event of Default, each
          outstanding Eurodollar Rate Advance shall automatically Convert into a Base Rate
          Advance at the end of the Interest Period then in effect for such Eurodollar
          Rate Advance.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 2.10. | Voluntary Conversion of Advances. Subject to the conditions
          set forth below, the Borrower may, on any Business Day, by delivering a notice
          of Conversion (a Notice of Conversion) to the
          Agent not later than 12:00 noon (i) on the third Business Day prior to the
          date of the proposed Conversion, in the case of a Conversion to or in respect of
          Eurodollar Rate Advances and (ii) on the date of the proposed Conversion,
          in the case of a Conversion to or in respect of Base Rate Advances, and subject
          to the provisions of Sections 2.09 and 2.14, Convert all Advances of one
          Type comprising the same Borrowing into Advances of another Type; provided,
          however, that, in the case of any Conversion of any Eurodollar Rate Advances
          into Base Rate Advances on a day other than the last day of an Interest Period
          for such Eurodollar Rate Advances, the Borrower shall be obligated to reimburse
          the Lenders in respect thereof pursuant to Section 8.04(b). Each such
          Notice of Conversion shall be in substantially the form of Exhibit 2.10 and
          shall, within the restrictions specified above, specify (A) the date of
          such Conversion, (B) the Advances to be Converted, (C) if such
          Conversion is into Eurodollar Rate Advances, the duration of the Interest Period
          for each such Advance, and (D) the aggregate amount of Advances proposed to
          be Converted. Notwithstanding the foregoing, the Borrower may not Convert Base
          Rate Advances into Eurodollar Rate Advances and may not select a new Interest
          Period for Eurodollar Rate Advances at any time an Event of Default has occurred
          and is continuing.
|------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 2.11. | Optional Prepayments of Advances. The Borrower may, upon at
          least three Business Days notice to the Agent stating the proposed date
          and aggregate principal amount of the prepayment, and if such notice is given
          the Borrower shall, prepay for the ratable account of the Lenders the
          outstanding principal amounts of the Advances comprising part of the same
          Borrowing in whole or ratably in part, together with accrued interest to the
          date of such prepayment on the principal amount prepaid; provided,
          however, that each partial prepayment shall be in an aggregate principal
          amount not less than $1,000,000 (or, if lower, the principal amount outstanding
          hereunder on the date of such prepayment) or an integral multiple of $1,000,000
          in excess thereof. In the case of any such prepayment of a Eurodollar Rate
          Advance, the Borrower shall be obligated to reimburse the Lenders in respect
          thereof pursuant to Section 8.04(b). Except as provided in this
          Section 2.11, the Borrower shall have no right to prepay any principal
          amount of any Advances.
|------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 2.12. | Increased Costs.
|------------- | ----------------

|(a) | If, due to either (i) the introduction of or any change (other than any
          change by way of imposition or increase of reserve requirements, in the case of
          Eurodollar Rate Advances, included in the Eurodollar Rate Reserve Percentage) in
          or to the interpretation of any law or regulation or (ii) the compliance
          with any guideline or request from any central bank or other governmental
          authority (whether or not having the force of law), there shall be any increase
          in the cost to any Lender of agreeing to make or making, funding or maintaining
          Eurodollar Rate Advances, then the Borrower shall from time to time, upon demand
          by such Lender (with a copy of such demand to the Agent), pay to the Agent for
          the account of such Lender additional amounts sufficient to compensate such
          Lender for such increased cost. A certificate as to the amount of such increased
          cost, submitted to the Borrower and the Agent by such Lender, shall be
          conclusive and binding for all purposes, absent manifest error, provided
          that the determination thereof shall have been made by such Lender in good
          faith.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | If any Lender determines that compliance with any law or regulation or any
          guideline or request from any central bank or other governmental authority
          (whether or not having the force of law) affects or would affect the amount of
          capital required or expected to be maintained by such Lender or any corporation
          controlling such Lender and that the amount of such capital is increased by or
          based upon the existence of such Lenders commitment to lend hereunder and
          other commitments of this type, then, upon demand by such Lender (with a copy of
          such demand to the Agent), the Borrower shall immediately pay to the Agent for
          the account of such Lender, from time to time as specified by such Lender,
          additional amounts sufficient to compensate such Lender or such corporation in
          the light of such circumstances, to the extent that such Lender reasonably
          determines such increase in capital to be allocable to the existence of such
          Lenders Commitment. A certificate as to such amounts submitted to the
          Borrower and the Agent by such Lender, describing in reasonable detail the
          manner in which such amounts have been calculated, shall be conclusive and
          binding for all purposes, absent manifest error, provided that the
          determination and allocation thereof shall have been made by such Lender in good
          faith.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Notwithstanding any provision of subsections (a) or (b) above to the
          contrary, no Lender shall be entitled to demand compensation or be compensated
          thereunder to the extent that such compensation relates to any period of time
          more than 60 days prior to the date upon which such Lender first notified the
          Borrower of the occurrence of the event entitling such Lender to such
          compensation (unless, and to the extent, that any such compensation so demanded
          shall relate to the retroactive application of any event so notified to the
          Borrower).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 2.13. | Illegality. Notwithstanding any other provision of this
          Agreement to the contrary, if any Lender (the Affected
          Lender) shall notify the Agent and the Borrower that the
          introduction of or any change in or to the interpretation of any law or
          regulation makes it unlawful, or any central bank or other governmental
          authority asserts that it is unlawful, for the Affected Lender or its Eurodollar
          Lending Office to perform its obligations hereunder to make Eurodollar Rate
          Advances or to fund or maintain Eurodollar Rate Advances hereunder, all
          Eurodollar Rate Advances of the Affected Lender shall, on the fifth Business Day
          following such notice from the Affected Lender, automatically be Converted into
          a like number of Base Rate Advances, each in the amount of the corresponding
          Eurodollar Rate Advance of the Affected Lender being so Converted (each such
          Advance, as so Converted, being an Affected Lender
          Advance), and the obligation of the Affected Lender to
          make, maintain, or Convert Advances into Eurodollar Rate Advances shall
          thereupon be suspended until the Agent shall notify the Borrower and the Lenders
          that the circumstances causing such suspension no longer exist, or the Affected
          Lender has been replaced pursuant to Section 8.07(g). For purposes of any
          prepayment under this Agreement, each Affected Lender Advance shall be deemed to
          continue to be part of the same Borrowing as the Eurodollar Rate Advances to
          which it corresponded at the time of the Conversion of such Affected Lender
          Advance pursuant to this Section 2.13.
|------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 2.14. | Payments and Computations.
|------------- | --------------------------

|(a) | The Borrower shall make each payment hereunder not later than 1:00 p.m. on the
          day when due in Dollars to the Agent at its address referred to in
          Section 8.02 in same day funds. The Agent will promptly thereafter cause to
          be distributed like funds relating to the payment of principal or interest or
          fees ratably (other than amounts payable pursuant to Section 2.08, 2.16,
          2.18(c) or 8.04(b)) to the Lenders for the account of their respective
          Applicable Lending Offices, and like funds relating to the payment of any other
          amount payable to any Lender to such Lender for the account of its Applicable
          Lending Office, in each case to be applied in accordance with the terms of this
          Agreement. Upon its acceptance of a Lender Assignment and recording of the
          information contained therein in the Register pursuant to Section 8.07(d),
          from and after the effective date specified in such Lender Assignment, the Agent
          shall make all payments hereunder in respect of the interest assigned thereby to
          the Lender assignee thereunder, and the parties to such Lender Assignment shall
          make all appropriate adjustments in such payments for periods prior to such
          effective date directly between themselves.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The Borrower hereby authorizes each Lender, if and to the extent payment owed to
          such Lender is not made when due hereunder held by such Lender, to charge from
          time to time against any or all of the Borrowers accounts with such Lender
          any amount so due.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | All computations of interest based on clause (i) of the definition of
          Alternate Base Rate and of the Facility Fees shall be made by the
          Agent on the basis of a year of 365 or 366 days, as the case may be, and all
          computations of interest based on the Eurodollar Rate and the Federal Funds Rate
          and of the LC Fee shall be made by the Agent, and all computations of interest
          pursuant to Section 2.09 shall be made by a Lender, on the basis of a year
          of 360 days, in each case for the actual number of days (including the first day
          but excluding the last day) occurring in the period for which such interest or
          fees are payable. Each determination by the Agent (or, in the case of
          Section 2.09, by a Lender) of an interest rate hereunder shall be
          conclusive and binding for all purposes, absent manifest error, provided
          that such determination shall have been made by the Agent or such Lender, as the
          case may be, in good faith.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Whenever any payment hereunder shall be stated to be due on a day other than a
          Business Day, such payment shall be made on the next succeeding Business Day,
          and such extension of time shall in such case be included in the computation of
          payment of interest or fees, as the case may be; provided, however, that
          if such extension would cause payment of interest on or principal of Eurodollar
          Rate Advances to be made in the next following calendar month, such payment
          shall be made on the next preceding Business Day.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | Unless the Agent shall have received notice from the Borrower prior to the date
          on which any payment is due to the Lenders hereunder that the Borrower will not
          make such payment in full, the Agent may assume that the Borrower has made such
          payment in full to the Agent on such date and the Agent may, in reliance upon
          such assumption, cause to be distributed to each Lender on such due date an
          amount equal to the amount then due such Lender. If and to the extent that the
          Borrower shall not have so made such payment in full to the Agent, each Lender
          shall repay to the Agent forthwith on demand such amount distributed to such
          Lender together with interest thereon, for each day from the date such amount is
          distributed to such Lender until the date such Lender repays such amount to the
          Agent, at the Federal Funds Rate.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 2.15. | Noteless Agreement; Evidence of Indebtedness.
|------------- | ---------------------------------------------

|(a) | Each Lender shall maintain in accordance with its usual practice an account or
          accounts evidencing the indebtedness of the Borrower to such Lender resulting
          from each Advance made by such Lender from time to time, including the amounts
          of principal and interest payable and paid to such Lender from time to time
          hereunder.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The Agent shall also maintain accounts in which it will record (i) the amount of
          each Advance made hereunder, the Type thereof and the Interest Period (if any)
          with respect thereto, (ii) the amount of any principal or interest due and
          payable or to become due and payable from the Borrower to each Lender hereunder,
          and (iii) the amount of any sum received by the Agent hereunder from the
          Borrower and each Lenders share thereof.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The entries maintained in the accounts maintained pursuant to subsections (a)
          and (b) above shall be prima facie evidence of the existence and amounts of the
          obligations therein recorded; provided, however, that the failure of the
          Agent or any Lender to maintain such accounts or any error therein shall not in
          any manner affect the obligation of the Borrower to repay such obligations in
          accordance with their terms.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Any Lender may request that its Advances be evidenced by a Note. In such event,
          the Borrower shall prepare, execute and deliver to such Lender a Note payable to
          the order of such Lender. Thereafter, the Advances evidenced by such Note and
          interest thereon shall at all times (including after any assignment pursuant to
          Section 8.07) be represented by one or more Notes payable to the order of the
          payee named therein or any assignee pursuant to Section 8.07, except to the
          extent that any such Lender or assignee subsequently returns any such Note for
          cancellation and requests that such Advances once again be evidenced as
          described in subsections (a) and (b) above.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 2.16. | Taxes.
|------------- | ------

|(a) | Any and all payments by the Borrower hereunder and under the other Loan
          Documents shall be made, in accordance with Section 2.14, free and clear of
          and without deduction for any and all present or future taxes, levies, imposts,
          deductions, charges or withholdings, and all liabilities with respect thereto,
          excluding, in the case of each Lender, the LC Issuing Bank and the Agent,
          taxes imposed on its overall net income and franchise taxes imposed on it by any
          jurisdiction, unless such Lender, the LC Issuing Bank or the Agent (as the case
          may be) would not have had such taxes imposed on it by such jurisdiction but for
          such Lenders, the LC Issuing Banks or the Agents (as the case
          may be) having entered into this Agreement, having consummated the transactions
          contemplated hereby or having received payments by the Borrower hereunder or
          under the other Loan Documents (all such non-excluded taxes, levies, imposts,
          deductions, charges, withholdings and liabilities being hereinafter referred to
          as Taxes). If the Borrower shall be required by
          law to deduct any Taxes from or in respect of any sum payable hereunder or under
          any other Loan Document to any Lender, the LC Issuing Bank or the Agent,
          (i) the sum payable shall be increased as may be necessary so that after
          making all required deductions (including deductions applicable to additional
          sums payable under this Section 2.16) such Lender, the LC Issuing Bank or
          the Agent (as the case may be) receives an amount equal to the sum it would have
          received had no such deductions been made, (ii) the Borrower shall make
          such deductions and (iii) the Borrower shall pay the full amount deducted
          to the relevant taxation authority or other authority in accordance with
          applicable law.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | In addition, the Borrower agrees to pay any present or future stamp or
          documentary taxes or any other excise or property taxes, charges or similar
          levies which arise from any payment made hereunder or under any other Loan
          Document or from the execution, delivery or registration of, or otherwise with
          respect to, this Agreement or any other Loan Document (hereinafter referred to
          as Other Taxes).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The Borrower will indemnify each Lender, the LC Issuing Bank and the Agent for
          the full amount of Taxes or Other Taxes (including, without limitation, any
          Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this
          Section 2.16) paid by such Lender, the LC Issuing Bank or the Agent (as the
          case may be) and any liability (including penalties, interest and expenses)
          arising therefrom or with respect thereto, whether or not such Taxes or Other
          Taxes were correctly or legally asserted. This indemnification shall be made
          within 30 days from the date such Lender, the LC Issuing Bank or the Agent (as
          the case may be) makes written demand therefor. Nothing herein shall preclude
          the right of the Borrower to contest any such Taxes or Other Taxes so paid, and
          the Lenders in question, the LC Issuing Bank or the Agent (as the case may be)
          will, following notice from, and at the expense of, the Borrower, reasonably
          cooperate with the Borrower to preserve the Borrowers rights to contest
          such Taxes or Other Taxes.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Within 30 days after the date of any payment of Taxes, the Borrower will furnish
          to the Agent, at its address referred to in Section 8.02, the original or a
          certified copy of a receipt evidencing payment thereof.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | The LC Issuing Bank and each Lender agrees that, on or prior to the date upon
          which it shall become a party hereto, and upon the reasonable request from time
          to time of the Borrower or the Agent, the LC Issuing Bank or such Lender will
          deliver to the Borrower and the Agent either (i) a statement that it is
          organized under the laws of a jurisdiction within the United States or
          (ii) duly completed copies of such form or forms as may from time to time
          be prescribed by the United States Internal Revenue Service indicating that the
          LC Issuing Bank or such Lender is entitled to receive payments without deduction
          or withholding of any United States federal income taxes, as permitted by the
          Internal Revenue Code of 1986, as amended from time to time. The LC Issuing Bank
          and each Lender that delivers to the Borrower and the Agent the form or forms
          referred to in the preceding sentence further undertakes to deliver to the
          Borrower and the Agent further copies of such form or forms, or successor
          applicable form or forms, as the case may be, as and when any previous form
          filed by it hereunder shall expire or shall become incomplete or inaccurate in
          any respect. The LC Issuing Bank and each Lender represents and warrants that
          each such form supplied by it to the Agent and the Borrower pursuant to this
          subsection (e), and not superseded by another form supplied by it, is or will
          be, as the case may be, complete and accurate.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | Any Lender claiming any additional amounts payable pursuant to this
          Section 2.16 shall use its best efforts (consistent with its internal
          policy and legal and regulatory restrictions) to change the jurisdiction of its
          Applicable Lending Office if the making of such a change would avoid the need
          for, or reduce the amount of, any such additional amounts that may thereafter
          accrue and would not, in the reasonable judgment of such Lender, be otherwise
          disadvantageous to such Lender.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | Without prejudice to the survival of any other agreement of the Borrower
          hereunder, the agreements and obligations of the Borrower contained in this
          Section 2.16 shall survive the payment in full of principal and interest
          hereunder.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 2.17. | Sharing of Payments, Etc. If any Lender shall obtain any
          payment (whether voluntary, involuntary, through the exercise of any right of
          set-off, or otherwise) on account of the Advances made by it (other than
          pursuant to Section 2.08, 2.12, 2.16, 2.18(c) or 8.04(b)) or on account of
          the Borrowers reimbursement obligations in respect of LC Outstandings in
          excess of its ratable share of payments obtained by all the Lenders on account
          of the Advances or on account of such reimbursement obligations, such
          Lender shall forthwith purchase from the other Lenders such participations in
          the Advances made by them and such reimbursement obligations as shall be
          necessary to cause such purchasing Lender to share the excess payment ratably
          with each of them; provided, however, that if all or any portion of such
          excess payment is thereafter recovered from such purchasing Lender, such
          purchase from each Lender shall be rescinded and such Lender shall repay to the
          purchasing Lender the purchase price to the extent of such recovery, together
          with an amount equal to such Lenders ratable share (according to the
          proportion of (i) the amount of such Lenders required repayment to
          (ii) the total amount so recovered from the purchasing Lender) of any
          interest or other amount paid or payable by the purchasing Lender in respect of
          the total amount so recovered. The Borrower agrees that any Lender so purchasing
          a participation from another Lender pursuant to this Section 2.17 may, to
          the fullest extent permitted by law, exercise all its rights of payment
          (including the right of set-off) with respect to such participation as fully as
          if such Lender were the direct creditor of the Borrower in the amount of such
          participation.
|------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 2.18. | Extension of Revolving Commitment Termination Date; Term Election.
|------------- | ------------------------------------------------------------------

|(a) | At least 30 but not more than 60 days prior to the then applicable Revolving
          Commitment Termination Date, the Borrower may, by delivering a written request
          to the Agent (each such request being irrevocable), request that the Revolving
          Commitment Termination Date be extended for an additional period of 364 days,
          commencing on the then applicable Revolving Commitment Termination Date. Any
          such notice shall also indicate whether the Borrower elects, in the event that
          the Lenders determine not to extend the Revolving Commitment Termination Date as
          requested by the Borrower, to extend the then applicable Termination Date to one
          year following such Termination Date (any such election to so extend the
          Termination Date being the Term Election). Upon
          receipt of any such notice, the Agent shall promptly communicate such request to
          the Lenders.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | No earlier than 30 days prior, and no later than 20 days prior, to the then
          applicable Revolving Commitment Termination Date, the Lenders shall indicate to
          the Agent whether the Borrowers request to so extend the Revolving
          Commitment Termination Date is acceptable to the Lenders (and, if so, the
          conditions, if any, relating to such acceptance), it being understood that the
          determination by each Lender will be in its sole and absolute discretion and
          that the failure of any Lender to so respond within such period shall be deemed
          to constitute a refusal by such Lender to consent to such request, with the
          result being that such request is denied (any Lender refusing or deemed to
          refuse any such request, a Non-Consenting
          Lender). The Agent shall notify the Borrower, in writing,
          of the Lenders decisions no later than 15 days prior to the then
          applicable Revolving Commitment Termination Date.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Subject to the satisfaction of the conditions set forth in Section 3.03, in the
          event that the sum of the Commitments of the Lenders that have consented to the
          Borrowers request to extend the then applicable Revolving Commitment
          Termination Date (the Consenting Lenders) plus
          the Commitments of Non-Consenting Lenders with respect to such request that have
          been assigned pursuant to Section 8.07(g) hereof shall constitute greater than
          50% of the aggregate Commitments, the then applicable Revolving Commitment
          Termination Date shall be extended for an additional period of 364 days with
          respect to the Commitments of such Consenting Lenders. The Commitments of
          Non-Consenting Lenders with respect to such request shall automatically
          terminate on the last day of the then applicable Revolving Commitment
          Termination Date (and the principal amount of all Advances made by such
          Non-Consenting Lenders, together with accrued interest and fees to such date,
          shall be repaid), unless assigned pursuant to Section 8.07(g) hereof;
          providedthat, before the Borrower may solicit Eligible Assignees other
          than the Consenting Lenders, the Consenting Lenders shall have at least five
          days before the end of the then applicable Revolving Commitment Termination Date
          to determine whether to purchase by assignment the Commitments of such
          Non-Consenting Lenders.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | In the event that any request by the Borrower pursuant to subsection (a) above
          shall be denied and the Borrower shall have indicated in such request that, in
          the event of such denial, it has determined to effect the Term Election, then,
          effective as of the Revolving Commitment Termination Date, the Termination Date
          shall be extended to the first anniversary of the Revolving Commitment
          Termination Date; providedthat on such date and on the Revolving
          Commitment Termination Date (i) the representations and warranties contained in
          Section 4.01 are true and correct, before and after giving effect to the Term
          Election, and (ii) no event has occurred and is continuing, or would result from
          the Term Election, that constitutes an Event of Default or an Unmatured Default.
          In addition, in the event that the Borrower shall not have requested an
          extension of the Revolving Commitment Termination Date pursuant to subsection
          (a) above, the Borrower may nonetheless make the Term Election by giving written
          notice to such effect to the Agent (which shall promptly give notice thereof to
          the Lenders) at least ten Business Days prior to the Revolving Commitment
          Termination Date, whereupon, effective as of the Revolving Commitment
          Termination Date, the Termination Date shall be extended to the first
          anniversary of the Revolving Commitment Termination Date; providedthat
          on such date and on the then applicable Revolving Commitment Termination Date
          (i) the representations and warranties contained in Section 4.01 are true and
          correct, before and after giving effect to the Term Election, and (ii) no event
          has occurred and is continuing, or would result from the Term Election, that
          constitutes an Event of Default or an Unmatured Default.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | Notwithstanding anything contained herein to the contrary, the Borrowers
          right to effect the Term Election as provided in either subsection (a) or (d)
          above shall not affect any rights or remedies that the Lenders or the Agent may
          have at such time under Section 6.01 as a result of any Event of Default or
          Unmatured Default that may have occurred and then be continuing, either at the
          time of the giving of such notice or on the then applicable Revolving Commitment
          Termination Date.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE III 
CONDITIONS OF LENDING

|SECTION 3.01. | Conditions Precedent to Closing. The Commitments of the
          Lenders and the obligation of the LC Issuing Bank to issue Letters of Credit
          shall not become effective unless the following conditions precedent shall have
          been fulfilled:
|------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) | The Agent shall have received the following, each dated the date of the Closing,
          in form and substance satisfactory to the Lenders and in sufficient copies for
          the LC Issuing Bank and each Lender:
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) |  | this
Agreement, duly executed by the Borrower, each Lender, the LC Issuing Bank           and
the Agent;
|--- |  | --------------------------------------------------------------------------------------------------------

|(ii) |  | each
Note requested by a Lender pursuant to Section 2.15 payable to the order of
          each such Lender, duly completed and executed by the Borrower;
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------

|(iii) |  | copies
of (A) the resolutions of the Board of Directors of the Borrower           approving
this Agreement and the other Loan Documents to which it is, or is to           be, a
party, and (B) all documents evidencing other necessary corporate           action
on the part of the Borrower with respect to this Agreement and the other           Loan
Documents, certified by the Secretary or an Assistant Secretary of the
          Borrower;
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iv) |  | a
certificate of the Secretary or an Assistant Secretary of the Borrower
          certifying the names, true signatures and incumbency of the officers of the
          Borrower authorized to sign this Agreement and the other Loan Documents to
which           it is, or is to be, a party;
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(v) |  | copies
of the Certificate of Incorporation (or comparable charter document) and
          by-laws of the Borrower, together with all amendments thereto, certified by the
          Secretary or an Assistant Secretary of the Borrower;
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(vi) |  | copies
of all Governmental Approvals, if any, required in connection with the
          execution, delivery and performance of this Agreement and the other Loan
          Documents, certified by the Secretary or an Assistant Secretary of the
Borrower;
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(vii) |  | copies
of the financial statements referred to in Section 4.01(f), certified by           the
Secretary or an Assistant Secretary of the Borrower;
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------

|(viii) |  | favorable
opinions of:
|------ |  | ----------------------

|(A) |  | Foley
& Lardner, special counsel for the Borrower, in substantially the form           of
Exhibit 3.01(a)(viii)-1 and as to such other matters as the Majority
          Lenders, through the Agent, may reasonably request;
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(B) |  | Barbara
J. Swan, General Counsel of the Borrower, in substantially the form of           Exhibit 3.01(a)(viii)-2
and as to such other matters as the Majority           Lenders, through the Agent, may
reasonably request; and
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(C) |  | King
& Spalding LLP, special New York counsel to the Agent, in substantially           the
form of Exhibit 3.01(a)(viii)-3 and as to such other matters as the
          Majority Lenders, through the Agent, may reasonably request; and
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ix) |  | such
other approvals, opinions and documents as any Lender, through the Agent,           may
reasonably request.
|---- |  | ----------------------------------------------------------------------------------------------------------------

|(b) | The following statements shall be true and correct, and the Agent shall have
          received a certificate of a duly authorized officer of the Borrower, dated the
          date of the Closing and in sufficient copies for each Lender, stating that:
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) |  | the
representations and warranties set forth in Section 4.01 of this           Agreement
are true and correct on and as of the date of the Closing as though           made on and
as of such date, and
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) |  | no
event has occurred and is continuing that constitutes an Unmatured Default or
          an Event of Default.
|---- |  | ---------------------------------------------------------------------------------------------------------------

|(c) | The Borrower shall have paid (i) all fees payable hereunder or payable pursuant
          to the Administrative Agency Fee Letter and the Arranger Fee Letter to the
          extent then due and payable, and (ii) all costs and expenses of the Agent
          (including counsel fees and disbursements) incurred through (and for which
          statements have been provided prior to) the Closing.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The Agent shall have received evidence that all amounts outstanding under the
          AEC Facility, the IPL Facility and the Existing Facility, whether for principal,
          interest, fees or otherwise, shall have been paid in full, and all commitments
          to lend thereunder shall have been terminated.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 3.02. | Conditions Precedent to Each Extension of Credit. The
          obligation of (i) each Lender to make an Advance on the occasion of each
          Borrowing (including the initial Borrowing) that would cause the aggregate
          principal amount of Advances outstanding hereunder to increase and (ii) the LC
          Issuing Bank to issue any Letter of Credit shall be subject to the conditions
          precedent that, on the date of such Extension of Credit:
|------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) | the following statements shall be true and correct (and each of the giving of
          the applicable Notice of Borrowing or Request for Issuance, as the case may be,
          and the acceptance by the Borrower of the proceeds of such Borrowing or the
          issuance of such Letter of Credit, as the case may be, shall constitute a
          representation and warranty by the Borrower that, on the date of such Extension
          of Credit, such statements are true and correct):
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) |  | the
representations and warranties contained in Section 4.01 are true and
          correct on and as of the date of such Extension of Credit, before and after
          giving effect to the application of the proceeds of any Borrowing made in
          connection therewith or the issuance or amendment of any Letter of Credit in
          connection therewith, as the case may be, as though made on and as of such
date;           and
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) |  | no
event has occurred and is continuing, or would result from such Extension of
          Credit or from the application of the proceeds of any Borrowing made in
          connection therewith or the issuance or amendment of any Letter of Credit in
          connection therewith, as the case may be, that constitutes an Event of Default
          or an Unmatured Default; and
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | the Agent shall have received such other approvals, opinions, or documents as
          the Agent, or the Majority Lenders through the Agent, may reasonably request,
          and such approvals, opinions, and documents shall be satisfactory in form and
          substance to the Agent.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 3.03. | Conditions Precedent to Each Extension of the Revolving Commitment
          Termination Date. In the event that the Borrower shall request an
          extension of the Revolving Commitment Termination Date pursuant to Section 2.18,
          such extension shall take effect on the then applicable Revolving Commitment
          Termination Date, subject to the satisfaction of the following conditions
          precedent on or prior to such date, together with such other conditions
          precedent as the Consenting Lenders may require in connection with such
          extension:
|------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) | the Agent shall have prepared and delivered to the Borrower, the LC Issuing Bank
          and each Lender (including each new bank and other financial institution to
          which a Non-Consenting Lenders Commitment has been assigned pursuant to
          Section 8.07(g) hereof) a revised Schedule I that reflects the Commitments of
          each Lender after giving effect to such extension;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | the Borrower shall have paid all fees payable hereunder or payable under or
          referenced in Section 2.04, to the extent then due and payable;
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | the Agent shall have received the following, in form and substance satisfactory
          to the Lenders and in sufficient copies for each Lender:
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------

|(i) |  | copies
of all Governmental Approvals, if any, required in connection with such
          extension, certified by the Secretary or an Assistant Secretary of the
Borrower;           and
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) |  | favorable
opinions of:
|---- |  | ----------------------

|(A) |  | Foley
& Lardner, special counsel for the Borrower, in form acceptable to the
          Agent;
|--- |  | ---------------------------------------------------------------------------------------------

|(B) |  | Barbara
J. Swan, General Counsel of the Borrower, in form acceptable to the           Agent; and
|--- |  | ------------------------------------------------------------------------------------------------

|(d) | the Agent shall have received such other documents and legal opinions in respect
          of any aspect or consequence of the transactions contemplated by Section 2.18 as
          the Agent shall reasonably request, including, without limitation, copies of the
          resolutions, in form and substance satisfactory to the Agent, of the Board of
          Directors of the Borrower authorizing the extension of the Revolving Commitment
          Termination Date; and
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | the following statements shall be true and correct and the Agent shall have
          received a certificate of a duly authorized officer of the Borrower, dated on
          and as of such date and in sufficient copies for each Lender, stating that:
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) |  | the
representations and warranties contained in Section 4.01 are true and           correct
on and as of such date as though made on and as of such date; and
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) |  | no
event has occurred and is continuing, or would result from such extension of
          the Revolving Commitment Termination Date, that constitutes an Event of Default
          or an Unmatured Default.
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 3.04. | Reliance on Certificates. The Lenders, the LC Issuing Bank
          and the Agent shall be entitled to rely conclusively upon the certificates
          delivered from time to time by officers of the Borrower as to the names,
          incumbency, authority and signatures of the respective Persons named therein
          until such time as the Agent may receive a replacement certificate, in form
          acceptable to the Agent, from an officer of such Person identified to the Agent
          as having authority to deliver such certificate, setting forth the names and
          true signatures of the officers and other representatives of such Person
          thereafter authorized to act on behalf of such Person.
|------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE IV 
REPRESENTATIONS AND
WARRANTIES

|SECTION 4.01. | Representations and Warranties of the Borrower. The
          Borrower represents and warrants as follows:
|------------- | ----------------------------------------------------------------------------------------------------------

|(a) | The Borrower and each of its Subsidiaries is a corporation duly organized,
          validly existing and in good standing under the laws of the jurisdiction of its
          incorporation and is duly qualified to do business in, and is in good standing
          in, all other jurisdictions where the nature of its business or the nature of
          property owned or used by it makes such qualification necessary (except where
          the failure to so qualify would not constitute a Material Adverse Change).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The execution, delivery and performance by the Borrower of this Agreement and
          the other Loan Documents to which it is or will be a party, and the receipt by
          the Borrower of the proceeds of Extensions of Credit on the date of any
          Extension of Credit, are within the Borrowers corporate powers, have been
          duly authorized by all necessary corporate action, and do not and will not
          contravene (i) the Borrowers charter or by-laws, (ii) any law,
          or (iii) any legal or contractual restriction binding on or affecting the
          Borrower (including, without limitation, the PSC Order); and such execution,
          delivery and performance do not and will not result in or require the creation
          of any Lien (other than pursuant to the Loan Documents) upon or with respect to
          any of its properties.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | No Governmental Approval is required in connection with the execution, delivery
          or performance by the Borrower of any Loan Document to which the Borrower is a
          party, except for the following (which has been duly filed or obtained and is
          final and in full force and effect): the PSC Order.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | This Agreement is, and each other Loan Document to which the Borrower will be a
          party when executed and delivered hereunder will be, legal, valid and binding
          obligations of the Borrower enforceable against the Borrower in accordance with
          their respective terms, subject to the qualifications, however, that the
          enforcement of the rights and remedies herein and therein is subject to
          bankruptcy and other similar laws of general application affecting rights and
          remedies of creditors and that the remedy of specific performance or of
          injunctive relief is subject to the discretion of the court before which any
          proceedings therefor may be brought.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | Since December 31, 2002, there has been no Material Adverse Change.
|--- | -------------------------------------------------------------------

|(f) | The audited consolidated balance sheets of the Borrower and its Subsidiaries as
          at December 31, 2002, and the related audited consolidated statements of
          income of the Borrower and its Subsidiaries for the fiscal year then ended, and
          the unaudited consolidated balance sheets of the Borrower and its Subsidiaries
          as at June 30, 2003, and the related unaudited consolidated statements of income
          for the six-month period then ended, copies of each of which have been furnished
          to each Bank, fairly present (subject, in the case of such balance sheets and
          statements of income for the six months ended June 30, 2003, to year-end
          adjustments) the consolidated financial condition of the Borrower and its
          Subsidiaries as at such dates and the consolidated results of operations of the
          Borrower and its Subsidiaries for the periods ended on such dates, all in
          accordance, in all material respects, with GAAP.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | Except as disclosed in the Parents Report on Form 10-K for the year ended
          December 31, 2002 and Report on Form 10-Q for the period ended June 30,
          2003, there is no pending or threatened action or proceeding affecting the
          Borrower or any of its Subsidiaries or properties before any court, governmental
          agency or arbitrator, that might reasonably be expected to constitute a Material
          Adverse Change and since December 31, 2002 there have been no material
          adverse developments in any action or proceeding so disclosed.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) | No ERISA Event has occurred or is reasonably expected to occur with respect to
          any Plan of the Borrower or any of its ERISA Affiliates which would result in a
          material liability to the Borrower. No prohibited transaction has
          occurred with respect to any Plan of the Borrower that is reasonably expected to
          result in a material liability to the Borrower. Neither the Borrower nor any of
          its ERISA Affiliates has incurred nor reasonably expects to incur any material
          withdrawal liability under ERISA to any Multiemployer Plan.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) | The Borrower has filed all tax returns (Federal, state and local) required to be
          filed and paid all taxes shown thereon to be due, including interest and
          penalties, or, to the extent the Borrower is contesting in good faith an
          assertion of liability based on such returns, has provided adequate reserves for
          payment thereof in accordance with GAAP.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(j) | The Borrower is not an investment company or a company
          controlled by an investment company, within the meaning
          of the Investment Company Act of 1940, as amended.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(k) | Neither the Borrower nor any Subsidiary of the Borrower is engaged principally,
          or as one of its important activities, in the business of purchasing or carrying
          Margin Stock, or extending credit for the purpose of purchasing or carrying
          Margin Stock. After the making of each Extension of Credit, Margin Stock will
          constitute less than 25 percent of the assets (as determined by any reasonable
          method) of the Borrower and its Subsidiaries on a consolidated basis.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(l) | As of the date hereof, the Borrower is not a holding company within
          the meaning of PUHCA.
|--- | -----------------------------------------------------------------------------------------------------

# ARTICLE V 
COVENANTS OF THE
BORROWER

|SECTION 5.01. |  | Affirmative Covenants. So long as any amount in respect of
                    this Agreement shall remain unpaid, any Lender shall have any Commitment or any
                    Letter of Credit shall remain outstanding, the Borrower will, unless the
                    Majority Lenders shall otherwise consent in writing:
|------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | Payment of Taxes, Etc. Pay and discharge, and cause each of its
                    Subsidiaries to pay and discharge, before the same shall become delinquent, all
                    taxes, assessments and governmental charges, royalties or levies imposed upon it
                    or upon its property except, in the case of taxes, to the extent the
                    Borrower or such Subsidiary is contesting the same in good faith and by
                    appropriate proceedings and has set aside adequate reserves for the payment
                    thereof in accordance with GAAP.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | Maintenance of Insurance. Maintain, or cause to be maintained, insurance
                    or other risk management program covering the Borrower and each of its
                    Subsidiaries and their respective properties in effect at all times in such
                    amounts and covering such risks and using such means as are usual and customary
                    for companies of a similar size (based on the aggregate book value of the
                    Parents assets, as determined on a consolidated basis in accordance with
                    GAAP), engaged in similar businesses and owning similar properties, either with
                    reputable insurance companies or, in whole or in part, by establishing reserves
                    of one or more insurance funds or other risk management mechanisms, either alone
                    or with other corporations or associations.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | Preservation of Existence, Etc. Preserve and maintain, and cause each of
                    its Subsidiaries to preserve and maintain, its corporate existence, material
                    rights (statutory and otherwise) and franchises; provided, however, that
                    neither the Borrower nor any of its Subsidiaries shall be required to preserve
                    and maintain any such right or franchise, and no such Subsidiary shall be
                    required to preserve and maintain its corporate existence, unless the failure to
                    do so would constitute a Material Adverse Change.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries to
                    comply, with the requirements of all applicable laws, rules, regulations and
                    orders of any governmental authority, including without limitation any such
                    laws, rules, regulations and orders relating to zoning, environmental
                    protection, use and disposal of Hazardous Substances, land use, ERISA,
                    construction and building restrictions, and employee safety and health matters
                    relating to business operations, the non-compliance with which would constitute
                    a Material Adverse Change.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | Inspection Rights. At the reasonable expense of the Borrower, at any time
                    and from time to time, upon reasonable notice, permit or arrange for the Agent,
                    the LC Issuing Bank, the Lenders and their respective agents and representatives
                    to examine and make copies of and abstracts from the records and books of
                    account of, and the properties of, the Borrower and each of its Subsidiaries,
                    and to discuss the affairs, finances and accounts of the Borrower and its
                    Subsidiaries with the Borrower and its Subsidiaries and their respective
                    officers, directors and accountants.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) |  | Keeping of Books. Keep, and cause its Subsidiaries to keep, proper
                    records and books of account, in which full and correct entries shall be made of
                    all financial transactions of the Borrower and its Subsidiaries and the assets
                    and business of the Borrower and its Subsidiaries, in accordance with GAAP.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) |  | Maintenance of Properties, Etc. Maintain, and cause each of its
                    Subsidiaries to maintain, good and marketable title to, and preserve, maintain,
                    develop, and operate in substantial conformity with all laws and material
                    contractual obligations, all of its properties which are used or useful in the
                    conduct of its business in good working order and condition, ordinary wear and
                    tear excepted, except where the failure to do so would not constitute a
                    Material Adverse Change.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) |  | Reporting Requirements. Furnish to each Lender:
|--- |  | -----------------------------------------------

|(i) |  | as
soon as possible and in any event within five Business Days after the
                    occurrence of each Unmatured Default or Event of Default continuing
on the date                     of such statement, a statement of a Senior Financial
Officer setting forth                     details of such Unmatured Default or Event of
Default and the action that the                     Borrower proposes to take with
respect thereto;
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) |  | as
soon as available and in any event within 60 days after the end of each of
                    the first three quarters of each fiscal year of the Borrower, a
consolidated                     balance sheet of the Borrower and its Subsidiaries as at
the end of such quarter                     and consolidated statements of income,
retained earnings and cash flows of the                     Borrower and its Subsidiaries
for the period commencing at the end of the                     previous fiscal year and
ending with the end of such quarter, all in reasonable                     detail and
duly certified (subject to year-end audit adjustments) by a Senior
                    Financial Officer as having been prepared in accordance (in all
material                     respects) with GAAP, together with a certificate of said
officer stating that no                     Unmatured Default or Event of Default has
occurred and is continuing or, if an                     Unmatured Default or Event of
Default has occurred and is continuing, a                     statement as to the nature
thereof and the action that the Borrower proposes to                     take with
respect thereto;
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iii) |  | as
soon as available and in any event within 120 days after the end of each
                    fiscal year of the Borrower, a copy of the audited consolidated
balance sheet of                     the Borrower and its Subsidiaries as at the end of
such fiscal year and                     consolidated statements of income, retained
earnings and cash flows of the                     Borrower and its Subsidiaries for such
fiscal year, together with a certificate                     of a Senior Financial
Officer stating that no Unmatured Default or Event of                     Default has
occurred and is continuing or, if an Unmatured Default or Event of
                    Default has occurred and is continuing, a statement as to the nature
thereof and                     the action that the Borrower proposes to take with
respect thereto;
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iv) |  | concurrently
with the delivery of the financial statements referred to in                     clauses
(ii) and (iii) above (each a Report), a
                    certificate signed by the principal executive officer and the
principal                     financial officer of the Borrower(each, a Certifying
                    Officer) certifying that (i) each Certifying
Officer has                     reviewed the Report; (ii) based on such Certifying Officers
knowledge, the                     Report does not contain any untrue statement of a
material fact or omit to state                     a material fact necessary in order to
make the statements made, in light of the                     circumstances under which
such statements were made, not misleading; (iii) based                     on such
Certifying Officers knowledge, the financial statements, and other
                    financial information included in the Report, fairly represent in all
material                     respects the financial condition and results of operations
of the Borrower and                     its Subsidiaries as of, and for, the period
presented in the Report; (iv) such                     Certifying Officer and the other
Certifying Officer (A) are responsible for                     establishing and
maintaining internal controls; (B) have designed such internal
                    controls to ensure that material information relating to the Borrower
and its                     Subsidiaries is made known to such officers by others within
the entities,                     particularly during the period in which the periodic
reports are being prepared;                     (C) have evaluated the effectiveness of
the internal controls of the Borrower as                     of a date within 90 days
prior to the Report; and (D) have presented in the                     Report their
conclusions about the effectiveness of their internal controls                     based
on their evaluation as of that date; (v) such Certifying Officer and the
                    other Certifying Officer have disclosed to the auditors and the audit
committee                     of the Board of Directors of the Borrower (A) all
significant deficiencies in                     the design or operation of internal
controls which could adversely affect the                     ability of the Borrower to
record, process, summarize, and report financial data                     and have
identified for the Borrowers auditors any material weakness in
                    internal controls; and (B) any fraud, whether or not material, that
involves                     management or other employees who have a significant role in
the internal                     controls of the Borrower; and (vi) such Certifying
Officer and the other                     Certifying Officer have indicated in the Report
whether or not there were                     significant changes in internal controls or
other factors that could                     significantly affect internal controls or in
other factors that could                     significantly affect internal controls
subsequent to the date of their                     evaluation, including any corrective
actions with regard to significant                     deficiencies and material
weaknesses. Furthermore, such certificate signed by                     the Certifying
Officers shall (i) certify as to whether a Default or Event of
                    Default has occurred and is continuing on the date of such
certificate, and if a                     Default or an Event of Default has then
occurred and is continuing, specifying                     the details thereof and the
action that the Borrower has taken or proposes to                     take with respect
thereto, (ii) set forth in reasonable detail calculations
                    demonstrating compliance with Section 5.02(i) and (iii) state whether
any change                     in GAAP or the application thereof has occurred since the
date of the audited                     financial statements referred to in Section 4.01
and, if any change has                     occurred, specifying the effect of such change
on the financial statements                     accompanying such certificate;
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(v) |  | as
soon as possible and in any event (A) within 30 days after any ERISA Event
                    described in clause (i) of the definition of ERISA Event with respect
to any                     Plan of the Borrower or any ERISA Affiliate of the Borrower
has occurred and (B)                     within 10 days after any other ERISA Event with
respect to any Plan of the                     Borrower or any ERISA Affiliate of the
Borrower has occurred, a statement of a                     Senior Financial Officer
describing such ERISA Event and the action, if any,                     which the
Borrower or such ERISA Affiliate proposes to take with respect
                    thereto;
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(vi) |  | promptly
after receipt thereof by the Borrower or any of its ERISA Affiliates
                    from the PBGC copies of each notice received by the Borrower or such
ERISA                     Affiliate of the PBGCs intention to terminate any Plan of
the Borrower or                     such ERISA Affiliate or to have a trustee appointed
to administer any such Plan;
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(vii) |  | promptly
after receipt thereof by the Borrower or any ERISA Affiliate of the
                    Borrower from a Multiemployer Plan sponsor, a copy of each notice
received by                     the Borrower or such ERISA Affiliate concerning the
imposition or amount of                     withdrawal liability in an aggregate
principal amount of at least $250,000                     pursuant to Section 4202
of ERISA in respect of which the Borrower or such                     ERISA Affiliate is
reasonably expected to be liable;
|----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(viii) |  | promptly
after the Borrower becomes aware of the occurrence thereof, notice of
                    all actions, suits, proceedings or other events (A) of the type
described in                     Section 4.01(g) or (B) for which the Agent, the LC
Issuing Bank and the                     Lenders will be entitled to indemnity under
Section 8.04(c);
|------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ix) |  | promptly
after the sending or filing thereof, copies of all such proxy
                    statements, financial statements, and reports which the Borrower
sends to its                     public security holders (if any), and copies of all
regular, periodic and                     special reports, and all registration
statements and periodic or special                     reports, if any, which the
Borrower files with the Securities and Exchange                     Commission or any
governmental authority which may be substituted therefor, or                     with any
national securities exchange; and
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(x) |  | promptly
after requested, such other information respecting the business,
                    properties, results of operations, prospects, revenues, condition or
operations,                     financial or otherwise, of the Borrower or any of its
Subsidiaries as the Agent                     or any Lender through the Agent may from
time to time reasonably request.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) |  | Use of Proceeds. Use the proceeds of the Advances hereunder solely for
                    the Borrowers general corporate purposes (including supporting commercial
                    paper issued by the Borrower) and in compliance with the PSC Order, and not to
                    finance any Hostile Acquisition.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(j) |  | Further Assurances. At the expense of the Borrower, promptly execute and
                    deliver, or cause to be promptly executed and delivered, all further instruments
                    and documents, and take and cause to be taken all further actions, that may be
                    necessary or that the Majority Lenders through the Agent may reasonably request
                    to enable the Lenders, the LC Issuing Bank and the Agent to enforce the terms
                    and provisions of this Agreement and to exercise their rights and remedies
                    hereunder or under any other Loan Document. In addition, the Borrower will use
                    all reasonable efforts to duly obtain Governmental Approvals required in
                    connection with the Loan Documents from time to time on or prior to such date as
                    the same may become legally required, and thereafter to maintain all such
                    Governmental Approvals in full force and effect.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 5.02. |  | Negative Covenants. So long as any amount in respect of
                    this Agreement shall remain unpaid, any Lender shall have any Commitment or any
                    Letter of Credit shall remain outstanding, the Borrower will not, without the
                    written consent of the Majority Lenders:
|------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | Liens, Etc. Create, incur, assume, or suffer to exist, or permit any of
                    its Subsidiaries to create, incur, assume, or suffer to exist, any lien,
                    security interest, or other charge or encumbrance (including the lien or
                    retained security title of a conditional vendor) of any kind, or any other type
                    of arrangement intended or having the effect of conferring upon a creditor a
                    preferential interest upon or with respect to any of its properties of any
                    character (including, without limitation, accounts) (any of the foregoing being
                    referred to herein as a Lien),
                    excluding, however, from the operation of the foregoing restrictions the
                    Liens created under the Loan Documents and the following:
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) |  | Liens
for taxes, assessments or governmental charges or levies to the extent not
                    past due;
|--- |  | --------------------------------------------------------------------------------------------------------------

|(ii) |  | Liens
imposed by law, such as materialmens, mechanics,                     carriers,
workmens and repairmens liens and other similar                     Liens
arising in the ordinary course of business securing obligations which are
                    not overdue or which are being contested in good faith, provided that
any                     such contested Lien securing an amount claimed in excess of
$1,000,000 shall be                     fully bonded within 90 days after the imposition
of such Lien;
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iii) |  | pledges
or deposits to secure obligations under workmens compensation laws
                    or similar legislation, to secure public or statutory obligations of
the                     Borrower or such Subsidiary, or to secure the utility obligations
of any such                     Subsidiary incurred in the ordinary course of business;
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iv) |  | (A)
purchase money Liens upon or in property now owned or hereafter acquired by
                    the Borrower or any of its Subsidiaries in the ordinary course of
business                     (consistent with present practices, it being understood that
for purposes of                     this clause, the purchase, construction or
maintenance of generating facilities                     by the Borrower or any of its
Subsidiaries shall be deemed to be in the ordinary                     course of business
and consistent with present practices) to secure (1) the
                    purchase price of such property or (2) Debt incurred solely for the
purpose of                     financing the acquisition, construction or improvement of
any such property to                     be subject to such Liens, or (B) Liens existing
on any such property at the time                     of acquisition, or extensions,
renewals or replacements of any of the foregoing                     for the same or a
lesser amount, provided that no such Lien shall extend                     to or
cover any property other than the property being                     acquired, constructed
or improved and replacements, modifications and                     proceeds of such
property, and no such extension, renewal or replacement shall                     extend
to or cover any property not theretofore subject to the Lien being
                    extended, renewed or replaced;
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(v) |  | Liens
constituting easements, restrictions and other similar encumbrances
                    arising in the ordinary course of business, which in the aggregate do
not                     materially adversely affect the Borrowers use of its
properties;
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(vi) |  | attachment,
judgment or other similar Liens arising in connection with court
                    proceedings, provided that the execution or other enforcement of such
Liens is                     effectively stayed and the claims secured thereby are being
actively contested                     in good faith by appropriate proceedings or the
payment of which is covered in                     full (subject to customary deductible
amounts) by insurance maintained with                     responsible insurance
companies;
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(vii) |  | Liens
securing Debt permitted by Section 5.02(b)(i)(B) and (C);
|----- |  | ---------------------------------------------------------------

|(viii) |  | Liens
incurred in connection with sales of assets permitted under Section
                    5.02(f)(vii);
|------ |  | -----------------------------------------------------------------------------------------------------------

|(ix) |  | Liens
incurred by the Borrower or any of its Subsidiaries on assets of the
                    Borrower and its Subsidiaries (A) securing the payment obligations of
the                     Borrower or any of its Subsidiaries under contracts (other than
contracts for                     borrowed money) or (B) posted as cash collateral in
connection with Non-Recourse                     Debt, in an aggregate principal amount
not to exceed $50,000,000; and
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(x) |  | other
Liens set forth in Schedule II hereto, and any extensions or renewals
                    of any such Liens upon or in the same property theretofore subject
thereto.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | Debt. (i)  Create, incur, assume, or suffer to exist any Debt
                    other than:
|--- |  | ---------------------------------------------------------------------------------------------

|(A) |  | Debt
hereunder and under the other Loan Documents;
|--- |  | --------------------------------------------------

|(B) |  | Debt
issued pursuant to the Indentures; and
|--- |  | -------------------------------------------

|(C) |  | other
Debt of the Borrower that is pari passu with, or subordinate to,
                    the Debt hereunder or secured by a Lien permitted under Section
5.02(a);
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | provided,
however, that, both immediately before and after the incurrence of any Debt described
in clause (B) or (C) of this paragraph (i), the Borrower shall be in compliance with the
covenant set forth in Section 5.02(i).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) |  | Permit
any of its Subsidiaries to create, incur, assume, or suffer to exist any
                    Debt other than:
|---- |  | --------------------------------------------------------------------------------------------------------------------

|(A) |  | Debt
of any Person acquired by the Borrower or any such Subsidiary (whether by
                    merger, stock or asset purchase, or otherwise) that was in effect and
                    outstanding at the time of acquisition;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(B) |  | Debt
owing by any such Subsidiary to the Borrower or to any other such
                    Subsidiary;
|--- |  | ------------------------------------------------------------------------------------------------------

|(C) |  | Debt
of such Subsidiaries under working capital lines and with respect to
                    Capitalized Lease Obligations not to exceed $5,000,000 in the
aggregate at any                     one time outstanding (such dollar limitation to
apply to the Debt of any Persons                     acquired by and merged into any such
Subsidiary to the extent of any surviving                     working capital lines and
Capitalized Lease Obligations of any such Person that                     shall survive
such acquisition and merger);
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(D) |  | Debt
secured by Liens permitted by Section 5.02(a)(iv); and
|--- |  | -----------------------------------------------------------

|(E) |  | other
Debt set forth in Schedule III hereto;
|--- |  | --------------------------------------------

| | provided,
however, that, both immediately before and after the incurrence of any Debt described
in clause (A), (B), (C), (D) or (E) of this paragraph (ii), the Borrower shall be in
compliance with the covenant set forth in Section 5.02(i).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Compliance with ERISA. (i) Permit to exist any accumulated
          funding deficiency (as defined in Section 412(a) of the Internal
          Revenue Code of 1986, as amended from time to time) (unless such deficiency
          exists with respect to a Multiple Employer Plan or Multiemployer Plan and the
          Borrower has no control over the reduction or elimination of such deficiency),
          (ii) terminate, or permit any ERISA Affiliate of the Borrower to terminate,
          any Plan of the Borrower or such ERISA Affiliate so as to result in any material
          (in the opinion of the Majority Lenders) liability of the Borrower to the PBGC,
          or (iii) permit to exist any occurrence of any Reportable Event (as defined
          in Title IV of ERISA), or any other event or condition, which presents a
          material (in the opinion of the Majority Lenders) risk of such a termination by
          the PBGC of any Plan of the Borrower or such ERISA Affiliate and such a material
          liability to the Borrower.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Transactions with Affiliates. Enter into, or permit any of its
          Subsidiaries to enter into, any transaction with an Affiliate of the Borrower,
          unless such transaction is on terms no less favorable to the Borrower or such
          Subsidiary, as the case may be, than if the transaction had been negotiated in
          good faith on an arms length basis with a Person that was not an Affiliate
          of the Borrower, or such transaction has been approved by (i) the Securities and
          Exchange Commission pursuant to PUHCA; or (ii) the Public Service Commission of
          Wisconsin pursuant to the Wisconsin statutes.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | Mergers, Etc.
|--- | -------------

|(i) |  | merge
with or into or consolidate with or into any other Person, except the           Borrower
may merge with or into or consolidate with or into any of its           Subsidiaries, provided that
immediately after giving effect thereto,           (A) no event shall occur and be
continuing that constitutes an Unmatured           Default or an Event of Default, (B) the
Borrower is the surviving           corporation and (C) the Borrower shall not be
liable with respect to any           Debt or allow its property to be subject to any Lien
which it could not become           liable with respect to or allow its property to
become subject to under this           Agreement or any other Loan Document on the date
of such transaction; or
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) |  | permit
any of its Subsidiaries to merge with or into or consolidate with or into           any
other Person, except that any such Subsidiary may merge with or into any           other
Person, provided that immediately after giving effect thereto,           (A) the
surviving corporation is a Subsidiary of the Borrower, (B) no           event shall
occur and be continuing that constitutes an Unmatured Default or an           Event of
Default and (C) the Borrower or any of its Subsidiaries shall not           be
liable with respect to any Debt or allow its property to be subject to any           Lien
which it could not become liable with respect to or allow its property to
          become subject to under this Agreement or any other Loan Document on the date
of           such transaction.
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | Sales, Etc., of Assets. Sell, lease, transfer, assign or otherwise
          dispose of any of its assets, or permit any of its Subsidiaries to sell, lease,
          transfer, assign or otherwise dispose of any of its assets, except
          (i) sales, leases, transfers and assignments from one Subsidiary of the
          Borrower to another such Subsidiary or to the Borrower, (ii) in any
          transaction in which the net proceeds from such sale, lease, transfer,
          assignment or disposition are solely Cash and Cash Equivalents and such proceeds
          are (A) applied solely as a permanent reduction of the Commitments and
          prepayment of Advances pursuant to Sections 2.05, 2.11 and 2.12, or
          (B) applied solely to pay or prepay Debt (together with a permanent
          reduction of any commitments relating to such Debt) incurred by the Borrower or
          any such Subsidiary in connection with the project comprising such assets,
          (iii) in connection with a sale and leaseback transaction, (iv) sales,
          leases, transfers and assignments of other assets representing not in excess of
          5% of the consolidated assets (valued at book value) of the Borrower and its
          Subsidiaries in the aggregate from the date hereof until the Termination Date in
          any single or series of transactions, whether or not related, (v) sales,
          leases, transfers and assignments of worn out or obsolete equipment no longer
          used and useful in the business of the Borrower and its Subsidiaries, (vi) sale
          or capital contribution of nuclear generation assets to Nuclear Management
          Company LLC and (vii) sales of contracts and accounts receivable of the
          Borrower, including, but not limited to, sales of accounts receivable in
          connection with (A) the Receivables Purchase Agreement, dated as of April 30,
          2001 (as amended from time to time), among Ciesco, LLC, Alliant Energy SPE LLC,
          Citicorp North America, Inc. and Alliant Energy Corporate Services, Inc. and (B)
          the Receivables Purchase Agreement, dated as of April 30, 2001 (as amended from
          time to time), among Citibank, N.A., Alliant Energy SPE LLC, Citicorp North
          America, Inc. and Alliant Energy Corporate Services, Inc.; provided in
          each case that no Unmatured Default or Event of Default shall have occurred and
          be continuing after giving effect thereto.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | Maintenance of Ownership of Significant Subsidiaries. Sell, assign,
          transfer, pledge or otherwise dispose of any Equity Interests of any of its
          Significant Subsidiaries or any warrants, rights or options to acquire such
          Equity Interests, or permit any of its Significant Subsidiaries to issue, sell
          or otherwise dispose of any shares of its Equity Interests or the Equity
          Interests of any other of its Subsidiaries or any warrants, rights or options to
          acquire such capital stock, except (and only to the extent) as may be necessary
          to give effect to a transaction permitted by subsection (e), above.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) | Restrictive Agreements. Directly or indirectly, enter into, incur or
          permit to exist, or permit, directly or indirectly, any of its Significant
          Subsidiaries to enter into, incur or permit to exist, any agreement or other
          arrangement that prohibits, restricts or imposes any condition upon the ability
          of the Borrower or any Significant Subsidiary to declare or pay dividends or
          other distributions to the Parent, the Borrower or any other Significant
          Subsidiary; provided that the foregoing limitations do not apply to
          (i) financial covenants that require the maintenance of a minimum net worth
          or compliance with financial tests as conditions to the ability to pay dividends
          or make other distributions with respect to capital stock or otherwise;
          (ii) restrictions that arise only if dividends on preferred stock have not
          been paid; and (iii) limitations or restrictions imposed by law or in
          regulatory proceedings.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) | Capitalization Ratio. Permit the ratio of Consolidated Debt of the
          Borrower to Consolidated Capital of the Borrower to exceed .58 to 1.00.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------

|(j) | Synthetic Lease Restrictions. Enter into or permit any Subsidiary to
          enter into a synthetic lease transaction.
|--- | ------------------------------------------------------------------------------------------------------------------------

# ARTICLE VI 
EVENTS OF DEFAULT

|SECTION 6.01. | Events of Default. If any of the following events (each an
          Event of Default) shall occur and be continuing
          after the applicable grace period and notice requirement (if any):
|------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) | The Borrower shall fail to pay any principal of any Borrowing or any
          reimbursement obligation in respect of a Letter of Credit when the same becomes
          due and payable; or
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The Borrower shall fail to pay any interest on any Borrowing or any other amount
          due under this Agreement for two days after the same becomes due; or
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Any representation or warranty made by or on behalf of the Borrower in any Loan
          Document or in any certificate or other writing delivered pursuant thereto shall
          prove to have been incorrect in any material respect when made or deemed made;
          or
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The Borrower shall fail to perform or observe any term or covenant on its part
          to be performed or observed contained in Section 5.01(c), 5.01(h)(i) or
          5.02 (other than subsections (c) and (d) thereof); or
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | The Borrower shall fail to perform or observe any other term or covenant on its
          part to be performed or observed contained in this Agreement or in any other
          Loan Document, and any such failure shall remain unremedied, after the earlier
          of (i) actual knowledge by the Borrower thereof, and (ii) written notice
          thereof shall have been given to the Borrower by the Agent, for a period of 30
          days; or
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | The Borrower or any of its Subsidiaries shall fail to pay any of its Debt,
          including any interest or premium thereon (but excluding Debt hereunder),
          aggregating $25,000,000 or more when due (whether by scheduled maturity,
          required prepayment, acceleration, demand or otherwise) and such failure shall
          continue after the applicable grace period, if any, specified in any agreement
          or instrument relating to such Debt; or any other default under any agreement or
          instrument relating to any such Debt, or any other event, shall occur and shall
          continue after the applicable grace period, if any, specified in such agreement
          or instrument, if the effect of such default or event is to accelerate, or to
          permit the acceleration of, the maturity of such Debt; or any such Debt shall be
          declared to be due and payable, or required to be prepaid (other than by a
          regularly scheduled required prepayment) prior to the stated maturity thereof as
          a result of a default or other similar adverse event; or
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | The Borrower or any of its Subsidiaries shall generally not pay its debts as
          such debts become due, or shall admit in writing its inability to pay its debts
          generally, or shall make an assignment for the benefit of creditors; or any
          proceeding shall be instituted by or against the Borrower or any of its
          Subsidiaries seeking to adjudicate it a bankrupt or insolvent, or seeking
          liquidation, winding up, reorganization, arrangement, adjustment, protection,
          relief, or composition of its debts under any law relating to bankruptcy,
          insolvency, or reorganization or relief of debtors, or seeking the entry of an
          order for relief or the appointment of a receiver, trustee, or other similar
          official for it or for any substantial part of its property and, in the case of
          a proceeding instituted against the Borrower or any of its Subsidiaries, either
          such proceeding shall remain undismissed or unstayed for a period of
          60 days or any of the actions sought in such proceeding (including without
          limitation the entry of an order for relief against the Borrower or any of its
          Subsidiaries or the appointment of a receiver, trustee, custodian or other
          similar official for the Borrower or such Subsidiary or any of its property)
          shall occur; or the Borrower shall take any corporate or other action to
          authorize any of the actions set forth above in this subsection (g); or
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) | Any judgment or order for the payment of money equal to or in excess of
          $25,000,000 shall be rendered against the Borrower or any of its Subsidiaries or
          their respective properties and either (i) enforcement proceedings shall
          have been commenced by any creditor upon such judgment or order or
          (ii) there shall be any period of 30 consecutive days during which a
          stay of enforcement of such judgment or order, by reason of a pending appeal or
          otherwise, shall not be in effect; or
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) | Any material provision of any Loan Document to which the Borrower is a party
          shall for any reason cease to be valid and binding on the Borrower or the
          Borrower shall so assert in writing; or
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(j) | Any Governmental Approval required in connection with the execution, delivery
          and performance of the Loan Documents shall be rescinded, revoked, otherwise
          terminated, or amended or modified in any manner that is materially adverse to
          the interests of the Lenders, the LC Issuing Bank and the Agent; or
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(k) | Any ERISA Event shall have occurred with respect to a Plan that could reasonably
          be expected to result in a material liability to the Borrower, and, 30 days
          after notice thereof shall have been given to the Borrower by the Agent, the LC
          Issuing Bank or any Lender, such ERISA Event shall still exist; or
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(l) | The Parent shall cease to own 100% of the common equity interests of the
          Borrower or shall cease to have the power (whether or not exercised) to elect a
          majority of the Borrowers directors.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | then,
and in any such event, the Agent (i) shall at the request, or may with the consent,
of the holders of greater than 50% of the principal amount of the Advances then
outstanding or, if no Advances are then outstanding, Lenders having greater than 50% of
the Commitments, by notice to the Borrower, declare the obligation of each Lender to make
Advances and the obligation of the LC Issuing Bank to issue Letters of Credit to be
terminated, whereupon the same shall forthwith terminate, and (ii) shall at the request,
or may with the consent, of the holders of greater than 50% in principal amount of the
Advances then outstanding or, if no Advances are then outstanding, Lenders having greater
than 50% of the Commitments, by notice to the Borrower, declare the Advances (if any), all
interest thereon and all other amounts payable under this Agreement to be forthwith due
and payable, whereupon the Advances, all such interest and all such amounts shall become
and be forthwith due and payable, without presentment, demand, protest or further notice
of any kind, all of which are hereby expressly waived by the Borrower; provided,
however,that in the event of an actual or deemed entry of an order for relief with
respect to the Borrower under the Federal Bankruptcy Code, (A) the obligation of the
LC Issuing Bank to issue Letters of Credit, the Commitments and the obligation of each
Lender to make Advances shall automatically be terminated and (B) the Advances, all
such interest and all such amounts shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are hereby
expressly waived by the Borrower.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SECTION 6.02.    
          Cash Collateral Account.Notwithstanding anything to the
          contrary contained herein, no notice given or declaration made by the Agent
          pursuant to this Article VI shall affect (i) the obligation of the LC Issuing
          Bank to make any payment under any Letter of Credit in accordance with the terms
          of such Letter of Credit or (ii) the obligations of each Lender in respect of
          each such Letter of Credit; provided, however, that if an Event of
          Default has occurred and is continuing, the Agent shall at the request, or may
          with the consent, of the Majority Lenders, upon notice to the Borrower, require
          the Borrower to deposit with the Agent an amount in the cash collateral account
          (the Cash Collateral Account) described below
          equal to the LC Outstandings on such date. Such Cash Collateral Account shall at
          all times be free and clear of all rights or claims of third parties. The Cash
          Collateral Account shall be maintained with the Agent in the name of, and under
          the sole dominion and control of, the Agent, and amounts deposited in the Cash
          Collateral Account shall bear interest at a rate equal to the rate generally
          offered by Bank One for deposits equal to the amount deposited by the Borrower
          in the Cash Collateral Account, for a term to be determined by the Agent, in its
          sole discretion. The Borrower hereby grants to the Agent for the benefit of the
          LC Issuing Bank and the Lenders a Lien in and hereby assigns to the Agent for
          the benefit of LC Issuing Bank and the Lenders all of its right, title and
          interest in, the Cash Collateral Account and all funds from time to time on
          deposit therein to secure its reimbursement obligations in respect of Letters of
          Credit. If any drawings then outstanding or thereafter made are not reimbursed
          in full immediately upon demand or, in the case of subsequent drawings, upon
          being made, then, in any such event, the Agent may apply the amounts then on
          deposit in the Cash Collateral Account, toward the payment in full of any of the
          Obligations as and when such obligations shall become due and payable. Upon
          payment in full, after the termination of the Letters of Credit, of all such
          obligations, the Agent will repay and reassign to the Borrower any cash then in
          the Cash Collateral Account and the Lien of the Agent on the Cash Collateral
          Account and the funds therein shall automatically terminate.

# ARTICLE VII 
THE AGENT

SECTION 7.01.    
          Authorization and Action. Each of the LC Issuing Bank and
          each Lender hereby appoints and authorizes the Agent to take such action as
          agent on its behalf and to exercise such powers under this Agreement as are
          delegated to the Agent by the terms hereof, together with such powers as are
          reasonably incidental thereto. As to any matters not expressly provided for by
          this Agreement or any other Loan Document (including, without limitation,
          enforcement or collection of the Borrowings), the Agent shall not be required to
          exercise any discretion or take any action, but shall be required to act or to
          refrain from acting (and shall be fully protected in so acting or refraining
          from acting) upon the instructions of the Majority Lenders, and such
          instructions shall be binding upon all Lenders and all holders of Notes (if
          any); provided, however, that the Agent shall not be required to take any
          action which exposes the Agent to personal liability or which is contrary to
          this Agreement or applicable law. The Agent agrees to give to each Lender prompt
          notice of each notice given to it by the Borrower pursuant to the terms of this
          Agreement. The Agent shall be deemed to have exercised reasonable care in the
          administration and enforcement of this Agreement and the other Loan Documents if
          it undertakes such administration and enforcement in a manner substantially
          equal to that which Bank One accords credit facilities similar to the credit
          facility hereunder for which it is the sole lender.

SECTION 7.02.    
          Agents Reliance, Etc. Neither the Agent nor any of
          its directors, officers, agents or employees shall be liable for any action
          taken or omitted to be taken by it or them under or in connection with this
          Agreement or any other Loan Document, except for its or their own gross
          negligence or willful misconduct. Without limitation of the generality of the
          foregoing, the Agent: (i) may treat the payee of any Note as the holder
          thereof until the Agent receives and accepts a Lender Assignment entered into by
          the Lender which is the payee of such Note, as assignor, and an Eligible
          Assignee, as assignee, as provided in Section 8.07; (ii) may consult
          with legal counsel (including counsel for the Borrower), independent public
          accountants and other experts selected by it and shall not be liable for any
          action taken or omitted to be taken in good faith by it in accordance with the
          advice of such counsel, accountants or experts; (iii) makes no warranty or
          representation to any Lender and shall not be responsible to any Lender for any
          statements, warranties or representations (whether written or oral) made in or
          in connection with this Agreement or any other Loan Document; (iv) shall not
          have any duty to ascertain or to inquire as to the performance or observance of
          any of the terms, covenants or conditions of this Agreement or any other Loan
          Document on the part of the Borrower or to inspect the property (including the
          books and records) of the Borrower; (v) shall not be responsible to any Lender
          for the due execution, legality, validity, enforceability, genuineness,
          sufficiency or value of this Agreement, any other Loan Document or any other
          instrument or document furnished pursuant hereto or thereto; and (vi) shall
          incur no liability under or in respect of this Agreement or any other Loan
          Document by acting upon any notice, consent, certificate or other instrument or
          writing (which may be by telecopier, telegram, cable or telex) believed by it to
          be genuine and signed or sent by the proper party or parties.

SECTION 7.03.    
          Bank One and Affiliates. With respect to its Commitment and
          the Advances made by it, Bank One shall have the same rights and powers under
          this Agreement as any other Lender and may exercise the same as though it were
          not the Agent; and the term Bank or Banks and
          Lender or Lenders shall, unless otherwise expressly
          indicated, include Bank One in its individual capacity. Bank One and its
          Affiliates may accept deposits from, lend money to, act as trustee under
          indentures of, and generally engage in any kind of business with, the Borrower,
          any of its Subsidiaries and any Person who may do business with or own
          securities of the Borrower or any such Subsidiary, all as if Bank One were not
          the Agent and without any duty to account therefor to the Lenders.

SECTION 7.04.    
          Lender Credit Decision. Each Lender acknowledges that it
          has, independently and without reliance upon the Agent or any other Lender and
          based on the financial statements referred to in Section 4.01(f) and such
          other documents and information as it has deemed appropriate, made its own
          credit analysis and decision to enter into this Agreement. Each Lender also
          acknowledges that it will, independently and without reliance upon the Agent or
          any other Lender and based on such documents and information as it shall deem
          appropriate at the time, continue to make its own credit decisions in taking or
          not taking action under this Agreement.

SECTION 7.05.    
          Indemnification. The Lenders agree to indemnify the Agent
          (to the extent not reimbursed by the Borrower), ratably according to (i) on or
          before the Termination Date, the respective Percentages of the Lenders, or (ii)
          after the Termination Date, the respective outstanding principal amounts of the
          Advances, from and against any and all liabilities, obligations, losses,
          damages, penalties, actions, judgments, suits, costs, expenses or disbursements
          of any kind or nature whatsoever which may be imposed on, incurred by, or
          asserted against the Agent in any way relating to or arising out of this
          Agreement or any action taken or omitted by the Agent under this Agreement,
          provided that no Lender shall be liable for any portion of such
          liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
          costs, expenses or disbursements resulting from the Agents gross
          negligence or willful misconduct. Without limitation of the foregoing, each
          Lender agrees to reimburse the Agent promptly upon demand for its ratable share
          of any out-of-pocket expenses (including counsel fees) incurred by the Agent in
          connection with the preparation, execution, delivery, administration,
          modification, amendment or enforcement (whether through negotiations, legal
          proceedings or otherwise) of, or legal advice in respect of rights or
          responsibilities under, this Agreement, to the extent that the Agent is not
          reimbursed for such expenses by the Borrower.

SECTION 7.06.    
          Successor Agent. The Agent may resign at any time by giving
          written notice thereof to the Lenders and the Borrower and may be removed at any
          time with or without cause by the Majority Lenders, with any such resignation or
          removal to become effective only upon the appointment of a successor Agent
          pursuant to this Section 7.06. Upon any such resignation or removal, the
          Majority Lenders shall have the right to appoint a successor Agent, which shall
          be a Lender or shall be another commercial bank or trust company (and reasonably
          acceptable to the Borrower so long as no Event of Default exists) organized
          under the laws of the United States or of any State thereof. If no successor
          Agent shall have been so appointed by the Majority Lenders, and shall have
          accepted such appointment, within 30 days after the retiring Agents giving
          of notice of resignation or the Majority Lenders removal of the retiring
          Agent, then the retiring Agent may, on behalf of the Lenders, appoint a
          successor Agent, which shall be a Lender or shall be another commercial bank or
          trust company organized under the laws of the United States of any State thereof
          reasonably acceptable to the Borrower. Upon the acceptance of any appointment as
          Agent hereunder by a successor Agent, such successor Agent shall thereupon
          succeed to and become vested with all the rights, powers, privileges and duties
          of the retiring Agent, and the retiring Agent shall be discharged from its
          duties and obligations under this Agreement. After any retiring Agents
          resignation or removal hereunder as Agent, the provisions of this
          Article VII shall inure to its benefit as to any actions taken or omitted
          to be taken by it while it was Agent under this Agreement.

# ARTICLE VIII 
MISCELLANEOUS

|SECTION 8.01. | Amendments, Etc. No amendment or waiver of any provision of
          any Loan Document, nor consent to any departure by the Borrower therefrom, shall
          in any event be effective unless the same shall be in writing and signed by the
          Majority Lenders and, in the case of any amendment, the Borrower, and then such
          waiver or consent shall be effective only in the specific instance and for the
          specific purpose for which given; provided, however, that no amendment,
          waiver or consent shall, unless in writing and signed by all the Lenders, do any
          of the following: (a) waive, modify or eliminate any of the conditions
          specified in Section 3.01, 3.02 or 3.03, (b) increase or extend the
          Commitments of the Lenders or subject the Lenders to any additional obligations,
          (c) reduce the principal of, or interest on, the Advances, any Applicable
          Margin or any fees or other amounts payable hereunder, (d) postpone any
          date fixed for any payment of principal of, or interest on, the Advances or any
          fees or other amounts payable hereunder, (e) change the percentage of the
          Commitments or of the aggregate unpaid principal amount of the Advances, or the
          number of Lenders, which shall be required for the Lenders or any of them to
          take any action hereunder, (f) amend this Section 8.01, or
          (g) release any collateral for the obligations of the Borrower hereunder;
          and provided, further, that no amendment, waiver or consent shall affect
          the rights or duties of the Agent or the LC Issuing Bank under this Agreement or
          any Note, unless such amendment, waiver or consent is in writing and signed by
          the Agent and the LC Issuing Bank, as the case may be, in addition to the
          Lenders required above to take such action; and provided, further that
          this Agreement may be amended and restated without the consent of any Lender,
          the LC Issuing Bank or the Agent if, upon giving effect to such amendment and
          restatement, such Lender, the LC Issuing Bank or the Agent, as the case may be,
          shall no longer be a party to this Agreement (as so amended and restated) or
          have any Commitment or other obligation hereunder or under any Letter of Credit
          and shall have been paid in full all amounts payable hereunder to such Lender,
          the LC Issuing Bank or the Agent, as the case may be.
|------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 8.02. | Notices, Etc. All notices and other communications provided
          for hereunder and under the other Loan Documents shall be in writing (including
          telecopier, telegraphic, telex or cable communication) and mailed, telecopied,
          telegraphed, telexed, cabled or delivered, if to the Borrower, at its address at
          4902 North Biltmore Lane, Madison, Wisconsin 53718-2132 Attn: Treasurer, or P.O.
          Box 77007, Madison, Wisconsin 53707-1007 Attn: Treasurer; if to any Bank, at its
          Domestic Lending Office specified opposite its name on Schedule I hereto;
          if to any other Lender, at its Domestic Lending Office specified in the Lender
          Assignment pursuant to which it became a Lender; and if to the Agent, at its
          address at 1 Bank One Plaza, Chicago, Illinois 60670, Attention: Robert G.
          Bussa; or, as to each party, at such other address as shall be designated by
          such party in a written notice to the other parties. All such notices and
          communications shall, when mailed, telecopied, telegraphed, telexed or cabled,
          be effective five days after being deposited in the mails, or when delivered to
          the telegraph company, telecopied, confirmed by telex answerback or delivered to
          the cable company, respectively, except that notices and communications to the
          Agent pursuant to Article II or VII shall not be effective until received
          by the Agent.
|------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 8.03. | No Waiver; Remedies. No failure on the part of any Lender,
          the LC Issuing Bank or the Agent to exercise, and no delay in exercising, any
          right hereunder or under any Note shall operate as a waiver thereof; nor shall
          any single or partial exercise of any such right preclude any other or further
          exercise thereof or the exercise of any other right. The remedies herein
          provided are cumulative and not exclusive of any remedies provided by law.
|------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 8.04. | Costs, Expenses, Taxes and Indemnification.
|------------- | -------------------------------------------

|(a) | The Borrower agrees to pay on demand all costs and expenses of the Agent in
          connection with the preparation (including, without limitation, printing costs),
          negotiation, execution, delivery, modification and amendment of this Agreement
          and the other Loan Documents, and the other documents and instruments to be
          delivered hereunder and thereunder, including, without limitation, the
          reasonable fees and out-of-pocket expenses of counsel for the Agent with respect
          thereto and with respect to the administration of, and advising the Agent as to
          its rights and responsibilities under, this Agreement and the other Loan
          Documents. The Borrower further agrees to pay on demand all costs and expenses,
          if any (including, without limitation, reasonable counsel fees and expenses of
          the Agent, the LC Issuing Bank and each Lender), in connection with the
          enforcement and workout (whether through negotiations, legal proceedings or
          otherwise) of this Agreement and the other Loan Documents and the other
          documents and instruments to be delivered hereunder and thereunder, including,
          without limitation, reasonable counsel fees and expenses in connection with the
          enforcement of rights under this Section 8.04(a). In addition, the Borrower
          shall pay any and all stamp and other taxes payable or determined to be payable
          in connection with the execution and delivery of this Agreement and the other
          Loan Documents, and the other documents and instruments to be delivered
          hereunder and thereunder, and agrees to save the Agent, the LC Issuing Bank and
          each Lender harmless from and against any and all liabilities with respect to or
          resulting from any delay in paying or omission to pay such taxes.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | If any payment of principal of, or Conversion of, any Eurodollar Rate Advance is
          made other than on the last day of the Interest Period for such Advance as a
          result of a payment or Conversion pursuant to Section 2.09(f), 2.10, 2.11
          or 2.13 or acceleration of the maturity of the Advances pursuant to
          Section 6.01 or for any other reason, the Borrower shall, upon demand by
          any Lender or the LC Issuing Bank (with a copy of such demand to the Agent), pay
          to the Agent for the account of such Lender or the LC Issuing Bank, as the case
          may be, any amounts required to compensate such Lender or the LC Issuing Bank
          for any additional losses, costs or expenses which it may reasonably incur as a
          result of such payment or Conversion, including, without limitation, any loss,
          cost or expense incurred by reason of the liquidation or reemployment of
          deposits or other funds acquired by any Lender to fund or maintain such Advance.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The Borrower hereby agrees to indemnify and hold each Lender, the Agent, the LC
          Issuing Bank and their respective officers, directors, employees, professional
          advisors and affiliates (each, an Indemnified
          Person) harmless from and against any and all claims,
          damages, losses, liabilities, costs or expenses (including reasonable
          attorneys fees and expenses, whether or not such Indemnified Person is
          named as a party to any proceeding or is otherwise subjected to judicial or
          legal process arising from any such proceeding) which any of them may incur or
          which may be claimed against any of them by any Person (except for such claims,
          damages, losses, liabilities, costs and expenses resulting from such Indemnified
          Persons gross negligence or willful misconduct):
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) |  | by
reason of or resulting from the execution, delivery or performance of any of
          the Loan Documents or any transaction contemplated thereby, or the use by the
          Borrower of the proceeds of any Advance or the use by the Borrower or any
          beneficiary of any Letter of Credit of such Letter of Credit ;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) |  | in
connection with any documentary taxes, assessments or charges made by any
          governmental authority by reason of the execution and delivery of any of the
          Loan Documents; or
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iii) |  | in
connection with or resulting from the utilization, storage, disposal,
          treatment, generation, transportation, release or ownership of any Hazardous
          Substance (A) at, upon, or under any property of the Borrower or any of
its           Affiliates or (B) by or on behalf of the Borrower or any of its Affiliates
at           any time and in any place.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The Borrowers obligations under this Section 8.04 shall survive the
          repayment of all amounts owing to the Lenders hereunder and the termination of
          the Commitments. If and to the extent that the obligations of the Borrower under
          this Section 8.04 are unenforceable for any reason, the Borrower agrees to
          make the maximum contribution to the payment and satisfaction thereof which is
          permissible under applicable law.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 8.05. | Right of Set-off.
|------------- | -----------------

|(a) | Upon (i) the occurrence and during the continuance of any Event of Default
          and (ii) the making of the request or the granting of the consent by the
          Majority Lenders specified by Section 6.01 to authorize the Agent to
          declare all amounts owing hereunder due and payable pursuant to the provisions
          of Section 6.01, each Lender is hereby authorized at any time and from time
          to time, to the fullest extent permitted by law, to set off and apply any and
          all deposits (general or special, time or demand, provisional or final) at any
          time held and other indebtedness at any time owing by such Lender to or for the
          credit or the account of the Borrower against any and all of the obligations of
          the Borrower now or hereafter existing under any Loan Document, irrespective of
          whether or not such Lender shall have made any demand under such Loan Document
          and although such obligations may be unmatured. Each Lender agrees promptly to
          notify the Borrower after any such set-off and application made by such Lender,
          provided that the failure to give such notice shall not affect the
          validity of such set-off and application. The rights of each Lender under this
          Section are in addition to other rights and remedies (including, without
          limitation, other rights of set-off) which such Lender may have.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The Borrower agrees that it shall have no right of set-off, deduction or
          counterclaim in respect of its obligations hereunder, and that the obligations
          of the Lenders hereunder are several and not joint. Nothing contained herein
          shall constitute a relinquishment or waiver of the Borrowers rights to any
          independent claim that the Borrower may have against the Agent, the LC Issuing
          Bank or any Lender for the Agents, the LC Issuing Banks or such
          Lenders, as the case may be, gross negligence or willful misconduct;
          provided that no Lender shall be liable for the conduct of the Agent, the
          LC Issuing Bank or any other Lender; provided furtherthat the Agent
          shall not be liable for the conduct of any Lender or the LC Issuing Bank, and
          the LC Issuing Bank shall not be liable for the conduct of any Lender or the
          Agent; provided, however that none of the Agent, any Lender or the LC
          Issuing Bank shall be liable to the Borrower for any amounts representing
          indirect, special, consequential or punitive damages suffered by the Borrower.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 8.06. | Binding Effect. This Agreement shall become effective when
          it shall have been executed by the Borrower and the Agent and when the Agent
          shall have been notified in writing by each Bank that such Bank has executed it
          and thereafter shall be binding upon and inure to the benefit of the Borrower,
          the Agent, the LC Issuing Bank and each Lender and their respective successors
          and assigns, except that the Borrower shall not have the right to assign its
          rights hereunder or any interest herein without the prior written consent of the
          Lenders.
|------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SECTION 8.07. | Assignments and Participations.
|------------- | -------------------------------

|(a) | Each Lender may assign to one or more Eligible Assignees all or a portion of its
          rights and obligations under the Loan Documents (including, without limitation,
          all or a portion of its Commitment, the Advances owing to it and the Note or
          Notes (if any) held by it); provided, however, that (i) each such
          assignment shall be of a constant, and not a varying, percentage of all of the
          assigning Lenders rights and obligations under the Loan Documents,
          (ii) the amount of the Commitment of the assigning Lender being assigned
          pursuant to each such assignment (determined as of the date of the Lender
          Assignment with respect to such assignment) shall in no event be less than the
          lesser of the amount of such Lenders then remaining Commitment and
          $5,000,000 or any whole multiple of $1,000,000 in excess thereof (except in the
          case of assignments between Lenders at the time already parties hereto and
          between a Lender and an Affiliate of such Lender), (iii) the Agent, the LC
          Issuing Bank and, so long as no Event of Default shall have occurred and be
          continuing, the Borrower, shall have consented to such assignment (which may not
          be unreasonably withheld or delayed), and (iv) the parties to each such
          assignment shall execute and deliver to the Agent, for its acceptance and
          recording in the Register, a Lender Assignment, together with any Note or Notes
          (if any) subject to such assignment and a processing and recordation fee of
          $3,500. Promptly following its receipt of such Lender Assignment, Note or Notes
          (if any) and fee, the Agent shall accept and record such Lender Assignment in
          the Register. Upon such execution, delivery, acceptance and recording, from and
          after the effective date specified in each Lender Assignment, (x) the
          assignee thereunder shall be a party hereto and, to the extent that rights and
          obligations hereunder have been assigned to it pursuant to such Lender
          Assignment, have the rights and obligations of a Lender hereunder and
          (y) the Lender assignor thereunder shall, to the extent that rights and
          obligations hereunder have been assigned by it pursuant to such Lender
          Assignment, relinquish its rights and be released from its obligations under
          this Agreement (and, in the case of a Lender Assignment covering all or the
          remaining portion of an assigning Lenders rights and obligations under
          this Agreement, such Lender shall cease to be a party hereto). Notwithstanding
          anything to the contrary contained in this Agreement, any Lender may at any
          time, with notice to the Borrower, the Agent and the LC Issuing Bank, assign all
          or any portion of the Advances owing to it to any other Lender or any Affiliate
          of a Lender. No such assignment, other than to an Eligible Assignee, a Lender or
          an Affiliate of a Lender, shall release the assigning Lender from its
          obligations hereunder.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | By executing and delivering a Lender Assignment, the Lender assignor thereunder
          and the assignee thereunder confirm to and agree with each other and the other
          parties hereto as follows: (i) other than as provided in such Lender
          Assignment, such assigning Lender makes no representation or warranty and
          assumes no responsibility with respect to any statements, warranties or
          representations made in or in connection with any Loan Document or the
          execution, legality, validity, enforceability, genuineness, sufficiency or value
          of any Loan Document or any other instrument or document furnished pursuant
          thereto; (ii) such assigning Lender makes no representation or warranty and
          assumes no responsibility with respect to the financial condition of the
          Borrower or the performance or observance by the Borrower of any of its
          obligations under any Loan Document or any other instrument or document
          furnished pursuant thereto; (iii) such assignee confirms that it has received a
          copy of each Loan Document, together with copies of the financial statements
          referred to in Section 4.01(f) hereof and such other documents and
          information as it has deemed appropriate to make its own credit analysis and
          decision to enter into such Lender Assignment; (iv) such assignee will,
          independently and without reliance upon the Agent, such assigning Lender or any
          other Lender and based on such documents and information as it shall deem
          appropriate at the time, continue to make its own credit decisions in taking or
          not taking action under the Loan Documents; (v) such assignee confirms that
          it is an Eligible Assignee; (vi) such assignee appoints and authorizes the
          Agent to take such action as agent on its behalf and to exercise such powers
          under the Loan Documents as are delegated to the Agent by the terms thereof,
          together with such powers as are reasonably incidental thereto; and
          (vii) such assignee agrees that it will perform in accordance with their
          terms all of the obligations which by the terms of the Loan Documents are
          required to be performed by it as a Lender.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The Agent shall maintain at its address referred to in Section 8.02 a copy
          of each Lender Assignment delivered to and accepted by it and a register for the
          recordation of the names and addresses of the Lenders and the Commitment of, and
          principal amount of the Advances owing to, each Lender from time to time (the
          Register). The entries in the Register shall be conclusive and
          binding for all purposes, absent manifest error, and the Borrower, the Agent and
          the Lenders may treat each Person whose name is recorded in the Register as a
          Lender hereunder for all purposes of this Agreement. The Register shall be
          available for inspection by the Borrower or any Lender at any reasonable time
          and from time to time upon reasonable prior notice.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Upon its receipt of a Lender Assignment executed by an assigning Lender and an
          assignee representing that it is an Eligible Assignee, together with any Note or
          Notes (if any) subject to such assignment, the Agent shall, if such Lender
          Assignment has been completed and is in substantially the form of
          Exhibit 8.07 hereto, (i) accept such Lender Assignment,
          (ii) record the information contained therein in the Register and
          (iii) give prompt notice thereof to the Borrower.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | Each Lender may sell participations to one or more banks, financial institutions
          or other entities in all or a portion of its rights and obligations under the
          Loan Documents (including, without limitation, all or a portion of its
          Commitment, the Advances owing to it and the Note or Notes (if any) held by it);
          provided,however, that (i) such Lenders obligations under
          this Agreement (including, without limitation, its Commitment to the Borrower
          hereunder) shall remain unchanged, (ii) such Lender shall remain solely
          responsible to the other parties hereto for the performance of such obligations,
          (iii) such Lender shall remain the holder of any such Note (if any) for all
          purposes of this Agreement, and (iv) the Borrower, the Agent and the other
          Lenders shall continue to deal solely and directly with such Lender in
          connection with such Lenders rights and obligations under this Agreement.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | Any Lender may, in connection with any assignment or participation or proposed
          assignment or participation pursuant to this Section 8.07, disclose to the
          assignee or participant or proposed assignee or participant, any information
          relating to the Borrower furnished to such Lender by or on behalf of the
          Borrower; provided that, prior to any such disclosure, the assignee or
          participant or proposed assignee or participant shall agree, in accordance with
          the terms of Section 8.08, to preserve the confidentiality of any
          Confidential Information relating to the Borrower received by it from such
          Lender.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | If any Lender (or any bank, financial institution, or other entity to which such
          Lender has sold a participation) shall (i) make any demand for payment
          under Section 2.08 or 2.12, (ii) give notice to the Agent pursuant to
          Section 2.13 or (iii) determine not to extend the Revolving Commitment
          Termination Date in response to any request by the Borrower pursuant to Section
          2.18, then (A) in the case of any demand made under clause (i) above,
          or the occurrence of the event described in clause (ii) above, within 30
          days after any such demand or occurrence (if, but only if, in the case of any
          demanded payment described in clause (i), such demanded payment has been
          made by the Borrower), and (B) in the case of the occurrence of the event
          described in clause (iii) above, at any time prior to the then-scheduled
          Revolving Commitment Termination Date, the Borrower may, with the approval of
          the Agent and the LC Issuing Bank (which approval shall not be unreasonably
          withheld), and provided that no Event of Default or Unmatured Default shall then
          have occurred and be continuing, demand that such Lender assign in accordance
          with this Section 8.07 to one or more Eligible Assignees designated by the
          Borrower all (but not less than all) of such Lenders Commitment and the
          Advances owing to it within the period ending on the latest to occur of
          (x) the last day in the period described in clause (A) or (B) above,
          as applicable, and (y) the last day of the longest of the then current
          Interest Periods for such Advances. If any such Eligible Assignee designated by
          the Borrower shall fail to consummate such assignment on terms acceptable to
          such Lender, or if the Borrower shall fail to designate any such Eligible
          Assignees for all or part of such Lenders Commitment or Advances, then
          such demand by the Borrower shall become ineffective; it being understood for
          purposes of this subsection (g) that such assignment shall be conclusively
          deemed to be on terms acceptable to such Lender, and such Lender shall be
          compelled to consummate such assignment to an Eligible Assignee designated by
          the Borrower, if such Eligible Assignee (1) shall agree to such assignment
          by entering into a Lender Assignment with such Lender and (2) shall offer
          compensation to such Lender in an amount equal to all amounts then owing by the
          Borrower to such Lender hereunder, whether for principal, interest, fees, costs
          or expenses (other than the demanded payment referred to above and payable by
          the Borrower as a condition to the Borrowers right to demand such
          assignment), or otherwise.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) | Anything in this Section 8.07 to the contrary notwithstanding, any Lender
          may assign and pledge all or any portion of its Commitment and the Advances
          owing to it to any Federal Reserve Bank (and its transferees) as collateral
          security pursuant to Regulation A of the Board of Governors of the Federal
          Reserve System and any Operating Circular issued by such Federal Reserve Bank.
          No such assignment shall release the assigning Lender from its obligations
          hereunder.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) | Notwithstanding anything to the contrary contained herein, any Lender (a
          Granting Lender) may grant to a special purpose
          funding vehicle (an SPC) of such Granting
          Lender identified as such in writing from time to time by the Granting Lender to
          the Agent, the LC Issuing Bank and the Borrower, the option to provide to the
          Borrower all or any part of any Advance that such Granting Lender would
          otherwise be obligated to make to the Borrower pursuant to this Agreement;
          provided that (i) nothing herein shall constitute a commitment by any
          such SPC to make any Advance, (ii) if such SPC elects not to exercise such
          option or otherwise fails to provide all or any part of such Advance, the
          Granting Lender shall be obligated to make such Advance pursuant to the terms
          hereof and (iii) no SPC or Granting Lender shall be entitled to receive any
          greater amount pursuant to Section 2.12 or 8.04(b) than the Granting Lender
          would have been entitled to receive had the Granting Lender not otherwise
          granted such SPC the option to provide any Advance to the Borrower. The making
          of an Advance by an SPC hereunder shall utilize the Commitment of the Granting
          Lender to the same extent, and as if, such Advance were made by such Granting
          Lender. Each party hereto hereby agrees that no SPC shall be liable for any
          indemnity or similar payment obligation under this Agreement for which a Lender
          would otherwise be liable so long as, and to the extent that, the related
          Granting Lender provides such indemnity or makes such payment. In furtherance of
          the foregoing, each party hereto hereby agrees (which agreement shall survive
          the termination of this Agreement) that, prior to the date that is one year and
          one day after the payment in full of all outstanding commercial paper or other
          senior indebtedness of any SPC, it will not institute against or join any other
          person in instituting against such SPC any bankruptcy, reorganization,
          arrangement, insolvency or liquidation proceedings under the laws of the United
          States or any State thereof. Notwithstanding the foregoing, the Granting Lender
          unconditionally agrees to indemnify the Borrower, the LC Issuing Bank, the Agent
          and each Lender against all liabilities, obligations, losses, damages,
          penalties, actions, judgments, suits, costs, expenses or disbursements of any
          kind or nature whatsoever which may be incurred by or asserted against the
          Borrower, the LC Issuing Bank, the Agent or such Lender, as the case may be, in
          any way relating to or arising as a consequence of any such forbearance or delay
          in the initiation of any such proceeding against its SPC. Each party hereto
          hereby acknowledges and agrees that no SPC shall have the rights of a Lender
          hereunder, such rights being retained by the applicable Granting Lender.
          Accordingly, and without limiting the foregoing, each party hereby further
          acknowledges and agrees that no SPC shall have any voting rights hereunder and
          that the voting rights attributable to any Advance made by an SPC shall be
          exercised only by the relevant Granting Lender and that each Granting Lender
          shall serve as the administrative agent and attorney-in-fact for its SPC and
          shall on behalf of its SPC receive any and all payments made for the benefit of
          such SPC and take all actions hereunder to the extent, if any, such SPC shall
          have any rights hereunder. In addition, notwithstanding anything to the contrary
          contained in this Agreement any SPC may (i) with notice to, but without the
          prior written consent of any other party hereto, assign all or a portion of its
          interest in any Advances to the Granting Lender and (ii) disclose on a
          confidential basis any information relating to its Advances to any rating
          agency, commercial paper dealer or provider of any surety, guarantee or credit
          or liquidity enhancement to such SPC. This Section 8.07(i) may not be
          amended without the prior written consent of each Granting Lender, all or any
          part of whose Advance is being funded by an SPC at the time of such amendment.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SECTION     8.08.Confidentiality.
In connection with the negotiation and           administration of this Agreement and the
other Loan Documents, the Borrower has           furnished and will from time to time
furnish to the Agent, the LC Issuing Bank           and the Lenders (each, a Recipient)
written           information which is identified to the Recipient in writing, when
delivered, as           confidential (such information, other than any such information
which           (i) as publicly available, or otherwise known to the Recipient, at
the time           of disclosure, (ii) subsequently becomes publicly available other
than           through any act or omission by the Recipient or (iii) otherwise
          subsequently becomes known to the Recipient other than through a Person whom
the           Recipient knows to be acting in violation of his or its obligations to the
          Borrower, being hereinafter referred to as Confidential
          Information). The Recipient will maintain the
          confidentiality of any Confidential Information in accordance with such
          procedures as the Recipient applies generally to information of that nature. It
          is understood, however, that the foregoing will not restrict the
          Recipients ability to freely exchange such Confidential Information with
          its Affiliates or with current or prospective participants in or assignees of,
          or any current or prospective counterparty (or its advisors) to any swap,
          securitization or derivative transaction relating to, the Recipients
          position herein, but the Recipients ability to so exchange Confidential
          Information shall be conditioned upon any such Affiliates or prospective
          participants or assignees or counterpartys entering into an
          understanding as to confidentiality similar to this provision. It is further
          understood that the foregoing will not prohibit the disclosure of any or all
          Confidential Information if and to the extent that such disclosure may be
          required (i) by a regulatory agency or otherwise in connection with an
          examination of the Recipients records by appropriate authorities,
          (ii) pursuant to court order, subpoena or other legal process or in
          connection with any pending or threatened litigation, (iii) otherwise as
          required by law, or (iv) in order to protect its interests or its rights
or           remedies hereunder or under the other Loan Documents; in the event of any
          required disclosure under clause (ii) or (iii) above, the Recipient agrees
          to use reasonable efforts to inform the Borrower as promptly as practicable.

Notwithstanding
anything herein to the contrary, the Agent, the LC Issuing Bank or any Lender (and each
officer, director, employee, agent and advisor of such Person) may disclose to any and all
other Persons, without limitation of any kind, the tax treatment and tax
structure (in each case within the meaning of Treasury Regulation Section 1.6011-4)
of the transactions contemplated hereby and all materials of any kind (including opinions
or other tax analyses) that are provided to such Person relating to such tax
treatment and tax structure. For the avoidance of doubt, no disclosure
to any Person is permitted to the extent such exposure does not relate to such tax
treatment or tax structure. The foregoing is intended to comply with the
presumption set forth in Treasury Regulation Section 1.6011-4(b)(3)(iii) and should be
interpreted in a manner consistent with such regulation.

SECTION 8.09.    
          WAIVER OF JURY TRIAL. THE AGENT, THE LC ISSUING BANK, THE
          LENDERS AND THE BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE
          ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
          HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY
          OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
          (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF THE AGENT, THE LC ISSUING BANK, SUCH
          LENDERS OR THE BORROWER. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE AGENT,
          THE LC ISSUING BANK AND THE LENDERS ENTERING INTO THIS AGREEMENT.

SECTION 8.10.    
          Governing Law. This Agreement and the other Loan Documents
          shall be governed by, and construed in accordance with, the laws of the State of
          New York. The Borrower, each Lender, the LC Issuing Bank and the Agent
          (i) irrevocably submits to the non-exclusive jurisdiction of any New York
          State court or Federal court sitting in New York City in any action arising out
          of any Loan Document, (ii) agrees that all claims in such action may be
          decided in such court, (iii) waives, to the fullest extent it may
          effectively do so, the defense of an inconvenient forum and (iv) consents
          to the service of process by mail, provided that a copy shall be promptly sent
          by overnight courier to Foley & Lardner, Firstar Center, 777 East Wisconsin
          Avenue, Milwaukee, Wisconsin 53202-5367, Attention: Emory Ireland, Esq. A final
          judgment in any such action shall be conclusive and may be enforced in other
          jurisdictions. Nothing herein shall affect the right of any party to serve legal
          process in any manner permitted by law or affect its right to bring any action
          in any other court.

SECTION 8.11.    
          Relation of the Parties; No Beneficiary. No term, provision
          or requirement, whether express or implied, of any Loan Document, or actions
          taken or to be taken by any party thereunder, shall be construed to create a
          partnership, association, or joint venture between such parties or any of them.
          No term or provision of the Loan Documents shall be construed to confer a
          benefit upon, or grant a right or privilege to, any Person other than the
          parties thereto.

SECTION 8.12.    
          Execution in Counterparts. This Agreement may be executed
          in any number of counterparts and by different parties hereto in separate
          counterparts, each of which when so executed shall be deemed to be an original
          and all of which taken together shall constitute one and the same agreement.

SECTION 8.13.    
          Entire Agreement. This Agreement, together with any Note,
          the Administrative Agency Fee Letter, the Arranger Fee Letter and any other
          agreements, instruments and other documents required to be executed and
          delivered in connection herewith, represents the entire agreement of the parties
          hereto and supersedes all prior agreements and understandings of the parties
          with respect to the subject matter covered hereby.

S-1

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

| | WISCONSIN POWER AND LIGHT COMPANY                       
| | --------------------------------------------------------
| |                                                         
| |                                                         
| | By_____________________________________                 
| | Name:                                                   
| | Title:                                                  
| |                                                         
| |                                                         
| |                                                         
| | BANK ONE, NA, as Agent, as LC Issuing Bank and as Lender
| |                                                         
| |                                                         
| | By_____________________________________                 
| | Name:                                                   
| | Title:                                                  

S-2

| | WACHOVIA BANK, NATIONAL ASSOCIATION    
| | ---------------------------------------
| |                                        
| |                                        
| | By_____________________________________
| | Name:                                  
| | Title:                                 

SCHEDULE I

WISCONSIN POWER AND
LIGHT COMPANY  364-Day Credit Agreement, dated as of September 30, 2003,  among Wisconsin
Power and Light Company, as Borrower, the Banks  named therein and Bank One, NA, as
Administrative Agent and LC Issuing Bank

|                            |              |                                    |                          
|--------------------------- | ------------ | ---------------------------------- | -------------------------
|Name of Lender              | Commitment   | Domestic Lending Office            | Eurodollar Lending Office
|Bank One, NA                | $15,550,000  | 1 Bank One Plaza, Suite 0363       | Same as Domestic Lending 
|                            |              | Chicago, Illinois 60670-0363       | Office                   
|                            |              | Attention: Robert G. Bussa         |                          
|Wachovia Bank, National     | $15,550,000  | 201 S. College St.                 | Same as Domestic Lending 
|Association                 |              | DC-05                              | Office                   
|                            |              | NC-0760                            |                          
|                            |              | Attention: Cynthia Rawson          |                          
|                            |              | Tel: 704-374-4425                  |                          
|                            |              | Fax: 704-715-0097                  |                          
|                            |              | Email: Cynthia.rawson@wachovia.com |                          
|ABN Amro Bank N.V.          | $14,600,000  | 208 S. La Salle St.                | Same as Domestic Lending 
|                            |              | Suite 1500                         | Office                   
|                            |              | Chicago, IL 60604-1003             |                          
|                            |              | Attention: Loan Administration     |                          
|                            |              | Tel: 312-992-5150                  |                          
|                            |              | Fax: 312-992-5155                  |                          
|                            |              | Email: cpu.team.b@abnamro.com      |                          
|Australia And New Zealand   | $7,700,000   | 1177 Avenue of the Americas        | Same as Domestic Lending 
|Banking Group Limited       |              | 6th Floor                          | Office                   
|                            |              | New York, NY 10036                 |                          
|                            |              | Attention: Tessie Amante           |                          
|                            |              | Tel:  212-801-9744                 |                          
|                            |              | Fax:  212-536-9244                 |                          
|                            |              | Email: tamante@anz.com             |                          
|Bank of America, N.A.       | $14,600,000  | 901 Main St.                       | Same as Domestic Lending 
|                            |              | TX1-492-14-05                      | Office                   
|                            |              | Dallas, TX 75202                   |                          
|                            |              | Attention: Eldred Sholars          |                          
|                            |              | Tel:  214-209-4111                 |                          
|                            |              | Fax:  214-290-9422                 |                          
|                            |              | Email:                             |                          
|                            |              | eldred.sholars@bankofamerica.com   |                          
|The Bank of                 | $13,800,000  | Harborside Financial Center        | Same as Domestic Lending 
|Tokyo-Mitsubishi, Ltd.      |              | 500 Plaza 3                        | Office                   
|Chicago Branch              |              | Jersey City, NJ 07311              |                          
|                            |              | Attention: Jimmy Yu                |                          
|                            |              | Tel:  201-413-8566                 |                          
|                            |              | Fax:  201-521-2335                 |                          
|                            |              | Email: jyu@btmna.com               |                          
|Barclays Bank PLC           | $14,600,000  | 222 Broadway                       | Same as Domestic Lending 
|                            |              | New York, NY 10038                 | Office                   
|                            |              | Attention: Michele Fuimo, GSU      |                          
|                            |              | Tel:  212-412-3717                 |                          
|                            |              | Fax:  212-412-5305                 |                          
|                            |              | Email: Michele.fuimo@barcap.com    |                          
|Citibank N.A.               | $7,700,000   | Two Penn's Way                     | Same as Domestic Lending 
|                            |              | Suite 200                          | Office                   
|                            |              | New Castle, DE 19720               |                          
|                            |              | Attention: Karen Riley             |                          
|                            |              | Tel:  302-894-6084                 |                          
|                            |              | Fax:  302-894-6120                 |                          
|                            |              | Email: Karen.riley@citigroup.com   |                          
|Cobank, ACB                 | $7,700,000   | 5500 S. Quebec St.                 | Same as Domestic Lending 
|                            |              | Greenwood Village, CO 80111        | Office                   
|                            |              | Attention: Deann Sullivan          |                          
|                            |              | Tel:  303-740-4315                 |                          
|                            |              | Fax:  303-740-4021                 |                          
|                            |              | Email: fulfillment@cobank.com      |                          
|Fleet National Bank         | $11,100,000  | 100 Federal Street                 | Same as Domestic Lending 
|                            |              | MA DE 10009H                       | Office                   
|                            |              | Boston, MA 02110                   |                          
|                            |              | Attention: Jesse Philips           |                          
|                            |              | Tel:  617-434-3571                 |                          
|                            |              | Fax:  617-434-0201                 |                          
|                            |              | Email: jesse_m_philips@fleet.com   |                          
|KBC Bank N.V.               | $7,700,000   | 125 W. 55th St.                    | Same as Domestic Lending 
|                            |              | New York, NY 10019                 | Office                   
|                            |              | Attention: Robert Pacifici/Loan    |                          
|                            |              | Administration                     |                          
|                            |              | Tel:  212-541-0671                 |                          
|                            |              | Fax:  212-956-5581                 |                          
|                            |              | Email:                             |                          
|KeyBank National            | $13,800,000  | 127 Public Square                  | Same as Domestic Lending 
|Association                 |              | OH-01-27-0611                      | Office                   
|                            |              | Cleveland, OH 44114                |                          
|                            |              | Attention: Carrie Kielski          |                          
|                            |              | Tel:  216-689-4013                 |                          
|                            |              | Fax:  216-689-4981                 |                          
|                            |              | Email: Carolyn_zielski@keybank.com |                          
|Lehman Brothers Bank, FSB   | $11,100,000  | 745 7th Avenue                     | Same as Domestic Lending 
|                            |              | 16th Floor                         | Office                   
|                            |              | New York, NY 10019                 |                          
|                            |              | Attention: Michael Herr            |                          
|                            |              | Tel:  212-526-6560                 |                          
|                            |              | Fax:  212-520-0450                 |                          
|                            |              | Email: mherr@lehman.com            |                          
|Merrill Lynch Bank USA      | $11,100,000  | 15 W. South Temple                 | Same as Domestic Lending 
|                            |              | Suite 300                          | Office                   
|                            |              | Salt Lake City, UT 84101           |                          
|                            |              | Attention: Julie Young             |                          
|                            |              | Tel:  801-526-8331                 |                          
|                            |              | Fax:  801-359-4667                 |                          
|                            |              | Email: Julie_young@ml.com          |                          
|Mizuho Corporate Bank, Ltd. | $7,700,000   | 1800 Plaza Ten                     | Same as Domestic Lending 
|                            |              | Jersey City, NJ 07311              | Office                   
|                            |              | Attention: Pamela Chen             |                          
|                            |              | Tel:  201-626-9302                 |                          
|                            |              | Fax:  201-626-9942                 |                          
|                            |              | Email: Pamela.chen@mizuhocbus.com  |                          
|National Australia Bank     | $11,100,000  | 200 Park Avenue                    | Same as Domestic Lending 
|                            |              | 34th Floor                         | Office                   
|                            |              | New York, NY 10166                 |                          
|                            |              | Attention: Mike Lorusso            |                          
|                            |              | Tel:  212-916-9602                 |                          
|                            |              | Fax:  212-983-7360                 |                          
|                            |              | Email:                             |                          
|Wells Fargo Bank, N.A.      | $14,600,000  | 201 Third St.                      | Same as Domestic Lending 
|                            |              | MAC 0187-081                       | Office                   
|                            |              | San Francisco, CA 94103            |                          
|                            |              | Attention: Ginnie Padgett          |                          
|                            |              | Tel:  415-477-5374                 |                          
|                            |              | Fax:  415-979-0675                 |                          
|                            |              | Email:                             |                          
|TOTAL                       | $200,000,000 |                                    |                          

SCHEDULE II

# EXISTING LIENS

Liens in favor of wholly owned
Subsidiaries

SCHEDULE III

# EXISTING DEBT

Debt incurred in connection with
sales transactions referred to in Section 5.02(f)(viii) of the Agreement.