Document:

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                                                                   EXHIBIT 10.33

                           SECOND AMENDED AND RESTATED
                                CREDIT AGREEMENT

                          DATED AS OF DECEMBER 31, 2003

                                BETWEEN AND AMONG

                            HERITAGE OPERATING, L.P.,
                         A DELAWARE LIMITED PARTNERSHIP

                                   "BORROWER"

                                       AND

         THE BANKS NOW OR HEREAFTER SIGNATORY PARTIES HERETO, AS LENDERS

                                     "BANKS"

                                       AND

                     BANK OF OKLAHOMA, NATIONAL ASSOCIATION

          AS "ADMINISTRATIVE AGENT" AND CO-LEAD ARRANGER FOR THE BANKS,

                                       AND

                                  BANK ONE, NA,

                AS "CO-AGENT" AND CO-LEAD ARRANGER" FOR THE BANKS

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                                TABLE OF CONTENTS

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<S>                                                                                                                     <C>
ARTICLE I            DEFINITIONS; ACCOUNTING PRINCIPLES, TERMS AND DEFINITIONS; CONSTRUCTION....................         1

   1.1      Definitions.........................................................................................         1
   1.2      Accounting Principles, Terms and Determinations.....................................................        28
   1.3      Construction........................................................................................        28

ARTICLE II           THE CREDITS................................................................................        29

   2.1      Acquisition Facility................................................................................        29

      2.1.1       Acquisition Loan..............................................................................        29
      2.1.2       Maximum Amount of Acquisition Credit..........................................................        29
      2.1.3       Acquisition Loan Borrowing Requests...........................................................        29
      2.1.4       Acquisition Loan Account:  Acquisition Notes..................................................        30

   2.2      Working Capital Facility............................................................................        30

      2.2.1       Working Capital Loan..........................................................................        30
      2.2.2       Maximum Amount of Working Capital Credit......................................................        31
      2.2.3       Working Capital Borrowing Requests............................................................        31
      2.2.4       Working Capital Loan Account: Working Capital Notes...........................................        31

   2.3      Letters of Credit...................................................................................        32

      2.3.1       Issuance of Letters of Credit.................................................................        32
      2.3.2       Requests for Letters of Credit................................................................        32
      2.3.3       Form and Expiration of Letters of Credit......................................................        32
      2.3.4       Banks' Participation in Letters of Credit.....................................................        33
      2.3.5       Presentation..................................................................................        33
      2.3.6       Payment of Drafts.............................................................................        33
      2.3.7       Uniform Customs and Practice..................................................................        33
      2.3.8       Subrogation...................................................................................        35
      2.3.9       Modification, Consent, etc....................................................................        35

   2.4      Application of Proceeds.............................................................................        35

      2.4.1       Acquisition Loan..............................................................................        35
      2.4.2       Working Capital Loan..........................................................................        35
      2.4.3       Letters of Credit.............................................................................        36
      2.4.4       Specifically Prohibited Applications..........................................................        36

   2.5      Nature of Obligations of Banks to Make Extensions of Credit.........................................        36

ARTICLE III          INTEREST; EURODOLLAR PRICING OPTIONS; FEES.................................................        36

   3.1      Interest............................................................................................        36
   3.2      Eurodollar Pricing Options..........................................................................        36

      3.2.1       Election of Eurodollar Pricing Options........................................................        36
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<S>                                                                                                                     <C>
      3.2.2       Notice to Banks and Borrower..................................................................        37
      3.2.3       Selection of Eurodollar Interest Periods......................................................        37
      3.2.4       Additional Interest...........................................................................        38
      3.2.5       Violation of  Bank Legal Requirements.........................................................        38
      3.2.6       Funding Procedure.............................................................................        38

   3.3      Commitment Fees.....................................................................................        39

      3.3.1       Acquisition Financing Facility................................................................        39
      3.3.2       Working Capital Facility......................................................................        39

   3.4      Letter of Credit Fees...............................................................................        39
   3.5      Reserve Requirements................................................................................        40
   3.6      Taxes...............................................................................................        40
   3.7      Capital Adequacy....................................................................................        41
   3.8      Regulatory Changes..................................................................................        41
   3.9      Computations of Interest and Fees...................................................................        41
   3.10     Loan Fees...........................................................................................        42
   3.11     Administrative Agent's Fees.........................................................................        42

ARTICLE IV           PAYMENT....................................................................................        42

   4.1      Payment at Maturity.................................................................................        42
   4.2      Contingent Required Prepayments.....................................................................        42

      4.2.1       Excess Credit Exposure........................................................................        42
      4.2.2       Letter of Credit Exposure.....................................................................        42
      4.2.3       Contingent Prepayments on Disposition, Loss of Assets,
                  Merger or Change of Control...................................................................        42
      4.2.4       Prepayment Procedure for Contingent Prepayments...............................................        43

   4.3      Scheduled Required Payments/Prepayments.............................................................        44

      4.3.1       Payments on the Acquisition Loan..............................................................        44
      4.3.2       Working Capital Loan..........................................................................        44

   4.4      Voluntary Prepayments...............................................................................        44
   4.5      Letters of Credit...................................................................................        45

   4.6      Reborrowing Application of Payments, etc............................................................        45

      4.6.1       Reborrowing...................................................................................        45
      4.6.2       Order of Application..........................................................................        45
      4.6.3       Payment with Accrued Interest, etc............................................................        45
      4.6.4       Payments for Banks............................................................................        45

ARTICLE V            SECURITY...................................................................................        46

   5.1      Collateral..........................................................................................        46
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<S>                                                                                                                     <C>
   5.2      Intercreditor Agreement.............................................................................        46

ARTICLE VI......................................................................................................        46

   6.1      Conditions Precedent to Initial Working Capital Loan and Initial Acquisition Loan...................        46

      (ii)     Representations and Warranties...................................................................        47
      (iii)    Certificates.....................................................................................        47
      (iv)     Proceedings......................................................................................        47
      (v)      Notes............................................................................................        47
      (vi)     Security Agreement...............................................................................        47
      (vii)    Opinions.........................................................................................        48
      (viii)    UCC Releases/Other Information..................................................................        48
      (ix)     Other Information and Closing Documents..........................................................        48
      (x)      Assignments/Replacement of BankBoston............................................................        48
      (xi)     Co-Agent.........................................................................................        48

   6.2      Conditions Precedent to All Loans...................................................................        48

ARTICLE VII             COVENANTS...............................................................................        49

   7A.      Affirmative Covenants...............................................................................        49

      7A.1        Financial Statements..........................................................................        49
      7A.2        Inspection of Property........................................................................        53
      7A.3        Covenant to Secure Notes Equally..............................................................        53
      7A.4        Partnership or Corporate Existence, etc.; Compliance with Laws................................        54
      7A.5        Payment of Taxes and Claims...................................................................        54
      7A.6        Compliance with ERISA.........................................................................        55
      7A.7        Maintenance and Sufficiency of Properties.....................................................        55
      7A.8        Insurance.....................................................................................        55
      7A.9        Environmental Laws............................................................................        56
      7A.10       Operative Agreements..........................................................................        56
      7A.11       After-Acquired Property.......................................................................        56
      7A.12       Further Assurances............................................................................        57
      7A.13       Books and Accounts............................................................................        57
      7A.14       Available Cash Reserves.......................................................................        57
      7A.15       Parity Debt...................................................................................        58
      7A.16       Maintenance of Separateness...................................................................        58

   7B.      Negative Covenants..................................................................................        59

      7B.1        Financial Ratios..............................................................................        59
      7B.2        Indebtedness..................................................................................        60
      7B.3        Liens.........................................................................................        63
      7B.4        Priority Debt.................................................................................        66
      7B.5        Loans, Advances, Investments and Contingent Liabilities.......................................        66
      7B.6        Restricted Payments...........................................................................        68
      7B.7        Consolidation, Merger, Sale of Assets.........................................................        68
      7B.8        Business......................................................................................        71
      7B.9        Transactions with Affiliates..................................................................        71
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<S>                                                                                                                     <C>
      7B.10       Subsidiary Stock and Indebtedness.............................................................        71
      7B.11       Payment of Dividends by  Subsidiaries.........................................................        72
      7B.12       Sales of Receivables..........................................................................        72
      7B.13       Material Agreements; Tax Status...............................................................        72
      7B.14       Commingling of Deposit Accounts and Accounts..................................................        73

ARTICLE VIII            REPRESENTATIONS, COVENANTS AND WARRANTIES...............................................        73

   8.1      Organization........................................................................................        73
   8.2      Partnership Interests...............................................................................        73
   8.3      Qualification.......................................................................................        74
   8.4      Financial Statements................................................................................        74
   8.5      Actions Pending.....................................................................................        74
   8.6      Changes.............................................................................................        74
   8.7      Outstanding Indebtedness............................................................................        74
   8.8      Transfer of Assets and Business; Title to Properties................................................        75
   8.9      Taxes...............................................................................................        76
   8.10     Compliance with Other Instruments; Solvency.........................................................        76
   8.11     Governmental Consent................................................................................        77
   8.12     Use of Proceeds.....................................................................................        77
   8.13     ERISA...............................................................................................        77
   8.14     Environmental Compliance............................................................................        77
   8.15     Pre-emptive Rights..................................................................................        78
   8.16     Disclosure..........................................................................................        79
   8.17     Federal Reserve Regulations.........................................................................        79
   8.18     Investment Borrower Act.............................................................................        79
   8.19     Public Utility Holding Company Act..................................................................        79

ARTICLE IX           EVENTS OF DEFAULT..........................................................................        79

   9.1      Acceleration........................................................................................        79
   9.2      Remedies............................................................................................        83
   9.3      Other Remedies......................................................................................        83

ARTICLE X            LOAN OPERATIONS............................................................................        84

   10.1     Interests in Loans/Commitments......................................................................        84
   10.2     Administrative Agent's Authority to Act.............................................................        84
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<S>                                                                                                                     <C>
   10.3     Borrower to Pay Administrative Agent................................................................        85
   10.4     Bank Operations for Advances, Letters of Credit.....................................................        85

      10.4.1  Advances..........................................................................................        85
      10.4.2  Letters of Credit.................................................................................        85
      10.4.3  Administrative Agent to Allocate Payments.........................................................        85
      10.4.4  Delinquent Banks; Nonperforming Banks.............................................................        86

   10.5     Sharing of Payments.................................................................................        87
   10.6     Amendments, Consents, Waivers.......................................................................        87
   10.7     Administrative Agent's Resignation..................................................................        88
   10.8     Concerning the Agents...............................................................................        89

      10.8.1  Action in Good Faith..............................................................................        89
      10.8.2  No Implied Duties.................................................................................        89
      10.8.3  Validity..........................................................................................        89
      10.8.4  Compliance........................................................................................        90
      10.8.5  Employment Agents and Counsel.....................................................................        90
      10.8.6  Reliance on Documents and Counsel.................................................................        90
      10.8.7  Agents' Reimbursement.............................................................................        90

   10.9      Rights as a Bank...................................................................................        90
   10.10    Independent Credit Decision.........................................................................        91
   10.11    Indemnification.....................................................................................        91
   10.12    Procedure for Increases and Additional Banks........................................................        91

ARTICLE XI           ASSIGNMENTS/PARTICIPATIONS.................................................................        92

   11       Successors and Assigns; Bank Assignment and Participations..........................................        92
   11.1     Assignments by Banks................................................................................        92

      11.1.1  Assignees and Assignment Procedures...............................................................        92
      11.1.2  Terms of Assignment and Acceptance................................................................        93
      11.1.3  Register..........................................................................................        94
      11.1.4  Acceptance of Assignment and Assumption...........................................................        94
      11.1.5  Federal Reserve Bank..............................................................................        95
      11.1.6  Further Assurances................................................................................        95

   11.2     Credit Participants.................................................................................        95
   11.3     Replacement of Bank.................................................................................        96

ARTICLE XII             MISCELLANEOUS...........................................................................        97

   12.1        Notices..........................................................................................        97
   12.2        Place of Payment.................................................................................        97
   12.3        Survival of Agreements...........................................................................        98
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<S>                                                                                                                 <C>
12.4        Parties in Interest..............................................................................        98
12.5        Governing Law and Jurisdiction...................................................................        98
12.6        Submission to Jurisdiction.......................................................................        98
12.7        Maximum Interest Rate............................................................................        98
12.8        No Waiver; Cumulative Remedies...................................................................        98
12.9        Costs............................................................................................        99
12.10       Waiver of Jury...................................................................................        99
12.11       Full Agreement...................................................................................        99
12.12       Headings.........................................................................................        99
12.13       Severability.....................................................................................        99
12.14       Exceptions to Covenants..........................................................................        99
12.15       Conflict with Security Documents.................................................................       100
12.16       Confidentiality..................................................................................       100
12.17       Existing Credit Agreement........................................................................       100
12.18       USA PATRIOT Act Notice...........................................................................       100
12.19       Not a Reportable Transaction.....................................................................       101
12.20       Counterparts.....................................................................................       101
</TABLE>

EXHIBITS

         Exhibit 2.1.3      -       Acquisition Loan Borrowing Requests
         Exhibit 2.1.4      -       Acquisition Notes
         Exhibit 2.2.3      -       Working Capital Borrowing Requests
         Exhibit 2.2.4      -       Working Capital Notes
         Exhibit 2.3.2      -       Requests for Letters of Credit
         Exhibit 10.12      -       Procedure of Increase and Additional Banks

SCHEDULES

         Schedule 7B.3      -       Liens
         Schedule 7B.5      -       Investments
         Schedule 8.2       -       Subsidiaries
         Schedule 8.3       -       List of States
         Schedule 8.7       -       Indebtedness
         Schedule 10.1      -       Lenders Schedule
         Schedule 8.8       -       Property Exceptions

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                           SECOND AMENDED AND RESTATED
                                CREDIT AGREEMENT

         THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT, dated as of December
31, 2003 (this "Agreement"), is entered into between and among HERITAGE
OPERATING, L.P., a Delaware limited partnership (the "Borrower"), the various
Persons signatory parties hereto, as lenders, (together with each other Person
that becomes a Bank pursuant to Section 11 collectively referred to herein as
the "Banks"), and BANK OF OKLAHOMA, NATIONAL ASSOCIATION ("BOk"), as
administrative agent and co-lead arranger for the Banks (in such capacity the
"Administrative Agent"), and Bank One, NA("Bank One"), as co-agent and co-lead
arranger for the Banks (in such capacity the "Co-Agent") .

                                    ARTICLE I

                       DEFINITIONS; ACCOUNTING PRINCIPLES,
                       TERMS AND DEFINITIONS; CONSTRUCTION

         1.1      Definitions. Capitalized terms are used in this Agreement with
the specific meanings defined below in this Section 1.1.

         "Acquired Debt" means with respect to any specified Person, (i)
Indebtedness of any other Person existing at the time such other Person merged
with or into or became a Subsidiary of such specified Person, including
Indebtedness incurred in connection with, or in contemplation of, such other
Person merging with or into or becoming a Subsidiary of such specified Person
and (ii) Indebtedness encumbering any asset acquired by such specified Person.

         "Acquisition/Capex Due Diligence Package" is defined in Section 2.1.3.

         "Acquisition Facility" means the agreement of the Banks herein to make
the Acquisition Loan.

         "Acquisition Loan Account" is defined in Section 2.1.4.

         "Acquisition Loan" is defined in Section 2.1.4.

         "Acquisition Notes" is defined in Section 2.1.4.

         "Additional Banks" shall mean any Person that hereafter becomes a
signatory Party hereto as a lender to Borrower hereunder.

         "Additional Parity Debt" means Indebtedness of the Borrower that both
(a) is permitted under Section 7B.2(xiv) hereof or is incurred with the consent
of the Requisite Percentage of the Banks and (b) constitutes "Additional Parity
Debt" as defined in the Note Purchase Agreements and the Intercreditor
Agreement.

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         "Adjusted Consolidated EBITDA" shall mean, as of any date of
determination for any applicable period, Consolidated EBITDA calculated:

                  (x)      with respect to the consolidated group comprised of
         the General Partner, the Master Partnership and the Borrower and its
         Subsidiaries (rather than with respect to the consolidated group
         comprised of the Borrower and its Subsidiaries), and

                  (y)      as if the terms "Consolidated Non-Cash Charges",
         "Consolidated Net Income", "Consolidated Interest Expense",
         "Consolidated Income Tax Expense", "Asset Sale", and "Asset
         Acquisition", were calculated with respect to the consolidated group
         comprised of the General Partner, the Master Partnership the Borrower
         and their respective Subsidiaries (rather than with respect to the
         consolidated group comprised of the Borrower and its Subsidiaries).

         "Adjusted Consolidated Funded Indebtedness" shall mean Consolidated
Funded Indebtedness calculated with respect to the consolidated group comprised
of the General Partner, the Master Partnership, and the Borrower and their
Subsidiaries (rather than with respect to the consolidated group comprised of
the Borrower and its Subsidiaries).

         "Administrative Agent" means BOk in its capacity as administrative
agent for the Banks hereunder, as well as its successors and assigns in such
capacity pursuant to Section 10.7.

         "Affected Bank" is defined in Section 11.3.

         "Affiliate" means, with respect to any Person any other Person directly
or indirectly controlling, controlled by, or under direct or indirect common
control with, such Person, except a Subsidiary of such Person. A Person shall be
deemed to control a corporation if such Person (i) possesses, directly or
indirectly, the power to direct or cause the direction of the management and
policies of such corporation, whether through the ownership of voting
securities, by contract or otherwise or (ii) owns at least 5% of the Voting
Stock of a corporation. As applied to the Borrower, "Affiliate" includes the
General Partner and the Master Partnership.

         "Agent" means collectively the Administrative Agent and the Co-Agent.

         "Agreement" means this Agreement as from time to time amended, modified
and in effect.

         "Aggregate Available Cash" shall mean, with respect to any fiscal
quarter of the Borrower and of La Grange, the aggregate amount of Available Cash
of both the Borrower and its Subsidiaries and of La Grange and its Subsidiaries
(which for purposes of this Agreement insofar as La Grange is concerned, shall
be calculated using the definition of "Available Cash" set forth in this
Agreement, except that (i) all references therein to the "Borrower" shall be
deemed for purposes of this calculation only references to La Grange and (ii)
the last sentence of such definition for purposes of this calculation only shall
be modified to refer to reserves established by La Grange with respect to
indebtedness on the same bases as set forth in such definition).

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         "Aggregate Partner Obligations" shall mean, with respect to any fiscal
quarter of the General Partner and the Master Partnership, the aggregate amount
of payment obligations of each of the General Partner and the Master
Partnership, including, without limitation, the Minimum Quarterly Distribution
(as defined in the Agreement of Limited Partnership of the Master Partnership)
on all Units thereof with respect to such fiscal quarter.

         "Allocable Proceeds" means, with respect to Excess Sale Proceeds or
Excess Taking Proceeds, as the case may be, to be applied on any date pursuant
to Sections 4.2.3(i) and 4.2.3(ii), the principal amount thereof available to
prepay the Acquisition Notes determined by allocating such Excess Sale Proceeds
or Excess Taking Proceeds, as the case may be, pro rata among the holders of all
Acquisition Notes, the Private Placement Notes and other Parity Debt (other than
Indebtedness permitted by Section 7B.2(ii)), if any, according to the aggregate
principal amounts of the Acquisition Notes, the Private Placement Notes and such
other Parity Debt outstanding on the date the applicable prepayment is to be
made in accordance with Sections 4.2.3(i) and 4.2.3(ii).

         "Annual Clean-Up" is defined in Section 2.2.2.

         "Applicable Commitment Fee Percentage" means, with respect to any
Margin Period, the applicable percentage set forth below:

                  (i)      if the Leverage Ratio on the Financial Statement
         Delivery Date beginning such Margin Period was less than 3.25 to 1.0,
         0.375%;

                  (ii)     if the Leverage Ratio on the Financial Statement
         Delivery Date beginning such Margin Period was equal to or greater than
         3.25 to 1.0 but less than 3.75 to 1.0, 0.450%; and

                  (iii)    if the Leverage Ratio on the Financial Statement
         Delivery Date beginning such Margin Period was equal to or greater than
         3.75 to 1.0, 0.50%.

                  Notwithstanding the foregoing, if any of the financial
         statements required pursuant to Section 7A.1(i) of this Credit
         Agreement are not delivered within the time periods specified in
         Section 7A.1(i), the Applicable Commitment Fee Percentage shall be
         0.50% until the date such financial statements are delivered.

         "Applicable Margin" means with respect to any Eurodollar Loan or with
respect to any Base Rate Loan, the rate of interest per annum determined as set
forth below:

                  (i)      if the Leverage Ratio on the Financial Statement
         Delivery Date (as defined in the Credit Agreement) commencing such
         Margin Period was less than 3.25 to 1.0, the Applicable Margin will be
         1.625% for Eurodollar Loans and zero for Base Rate Loans;

                  (ii)     if the Leverage Ratio on the Financial Statement
         Delivery Date commencing such Margin Period was equal to or greater
         than

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         3.25 to 1.0 but less than 3.75 to 1.0, the Applicable Margin will be
         1.875% for Eurodollar Loans and zero for Base Rate Loans;

                  (iii)    if the Leverage Ratio on the Financial Statement
         Delivery Date commencing such Margin Period was equal to or greater
         than 3.75 to 1.0 but less than 4.25 to 1.0, the Applicable Margin will
         be 2.125% for Eurodollar Loans and zero for Base Rate Loans;

                  (iv)     if the Leverage Ratio on the Financial Statement
         Delivery Date commencing such Margin Period was equal to or greater
         than 4.25 to 1.0 but less than 4.50 to 1.0, the Applicable Margin will
         be 2.250% for Eurodollar Loans and zero for Base Rate Loans;

                  (v)      if the Leverage Ratio on the Financial Statement
         Delivery Date commencing such Margin Period was equal to or greater
         than 4.50 to 1.0 but less than 4.75 to 1.0, the Applicable Margin will
         be 2.50% for Eurodollar Loans and 0.125% for Base Rate Loans; and

                  (vi)     if the Leverage Ratio on the Financial Statement
         Delivery Date commencing such Margin Period was equal to or greater
         than 4.75 to 1.0, the Applicable Margin will be 2.50% for Eurodollar
         Loans and 0.250% for Base Rate Loans.

                  Notwithstanding the foregoing, if any of the financial
         statements required pursuant to Section 7A.1(i) of this Credit
         Agreement are not delivered within the time periods specified in
         Section 7A.1(i) thereof, the Applicable Margin shall be the Applicable
         Margin set forth in clause (vi) above until the date such financial
         statements are delivered.

         "Applicable Rate" means, at any date:

                  (i)      the sum of (a) with respect to each Eurodollar Loan,
         the sum of the Applicable Margin in effect on such date plus the
         Eurodollar Rate relating to such Eurodollar Loan; (b) with respect to
         each Base Rate Loan, the sum of the Applicable Margin in effect on such
         date plus the Base Rate relating to such Base Rate Loan; and

                  (ii)     an additional two percentage points (2%) effective on
         the day the Administrative Agent notifies the Borrower that the
         interest rates hereunder are increasing as a result of the occurrence
         and continuance of an Event of Default until such time as (A) such
         Event of Default is no longer continuing or (B) such Event of Default
         is deemed no longer to exist, in each case pursuant to Article IX
         hereof.

         "Arvest" shall mean Arvest Bank, a state banking corporation.

         "Asset Acquisition" means (i) an Investment by the Borrower or any
Subsidiary of the Borrower in any other Person pursuant to which such Person
shall become a Subsidiary of the Borrower or shall be merged with or into the
Borrower or any Subsidiary of the Borrower, (ii)

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the acquisition by the Borrower or any Subsidiary of the Borrower of the assets
of any Person which constitute all or substantially all of the assets of such
Person or (iii) the acquisition by the Borrower or any Subsidiary of the
Borrower of any division or line of business of any Person (other than a
Subsidiary of the Borrower).

         "Asset Sale" is defined in Section 7B.7(iii).

         "Assets" is defined in the second opening paragraph of the Note
Purchase Agreements, as in effect on the date hereof.

         "Assignment and Acceptance" is defined in Section 11.1.1.

         "Attributable Debt" means, with respect to any Sale and Lease-Back
Transaction not involving a Capitalized Lease Obligation, as of any date of
determination, the total obligation (discounted to present value at the rate of
interest implicit in the lease included in such transaction) of the lessee for
rental payments (other than accounts required to be paid on account of property
taxes, maintenance, repairs, insurance, assessments, utilities, operating and
labor costs and other items which do not constitute payments for property
rights) during the remaining portion of the term (including extensions which are
at the sole option of the lessor) of the lease included in such transaction (in
the case of any lease which is terminable by the lessee upon the payment of a
penalty, such rental obligation shall also include the amount of such penalty,
but no rent shall be considered as required to be paid under such lease
subsequent to the first date upon which it may be so terminated).

         "Available Cash" means, with respect to any fiscal quarter of the
Borrower, (i) the sum of (a) all cash and cash equivalents thereof and its
Subsidiaries on hand at the end of such quarter and (b) all additional cash and
cash equivalents thereof and its Subsidiaries on hand on the date of
determination of Available Cash with respect to such quarter resulting from
borrowings for working capital purposes made subsequent to the end of such
quarter, less (ii) the amount of any cash reserves that is necessary or
appropriate in the reasonable discretion of the General Partner thereof to (a)
provide for the proper conduct of the business thereof and its Subsidiaries
(including reserves for future capital expenditures) subsequent to such quarter,
(b) comply with applicable law or any loan agreement, security agreement,
mortgage, debt instrument or other agreement or obligation to which the Borrower
or any Subsidiary thereof is a party or by which it is bound or its assets are
subject (including the Loan Documents) and (c) provide funds for distributions
to partners of the Master Partnership and the General Partner thereof in respect
of any one or more of the next four quarters; provided that the General Partner
thereof need not establish cash reserves pursuant to clause (c) if the effect of
such reserves would be that the Master Partnership is unable to distribute the
Minimum Quarterly Distribution (as defined in the Agreement of Limited
Partnership of the Master Partnership) on all Common Units with respect to such
quarter; and provided, further, that disbursements made by the Borrower, or a
Subsidiary of the Borrower, or cash reserves established, increased or reduced
after the end of such quarter but on or before the date of determination of
Available Cash with respect to such quarter shall be deemed to have been made,
established, increased or reduced for purposes of determining Available Cash,
within such quarter if the General Partner thereof so determines. In addition,
without limiting the foregoing, Available Cash for any fiscal quarter shall
reflect reserves equal

                                       5

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to (A) 50% of the interest projected to be paid on the Private Placement Notes
in the next succeeding fiscal quarter plus (B) beginning with a date three
fiscal quarters before a scheduled principal payment date on the Private
Placement Notes, 25% of the aggregate principal amount thereof due on any such
payment date in the third succeeding fiscal quarter, 50% of the aggregate
principal amount due on any such payment date in the second succeeding fiscal
quarter and 75% of the aggregate principal amount due on any quarterly payment
date in the next succeeding fiscal quarter, plus (C) the Unused Proceeds Reserve
as of the date of determination, provided that the foregoing reserves for
amounts to be paid on the Private Placement Notes shall be reduced by the
aggregate amount of advances available to the Borrower, from responsible
financial institutions under binding irrevocable (x) credit or financing
commitments (which are subject to no conditions which the Borrower is unable to
meet) including this Agreement, and (y) letters of credit (which are subject to
no conditions which the Borrower is unable to meet), in each case, to be used to
refinance such amounts, to the extent such amounts could be borrowed and remain
outstanding under Sections 7B.1 and 7B.2 of this Agreement.

         "Bank" means each of the Persons listed as Banks on the signature page
hereto, including each of BOk, Bank One, Arvest, Fifth Third, MidFirst, Local
and US Bank in its capacity as a Bank, and such other Persons who may from time
to time own a Percentage Interest in the Credit Obligations, but the term "Bank"
shall not include any Credit Participant.

         "Bank Legal Requirement" means any present or future requirement
imposed upon any of the Banks or the Borrower and its Subsidiaries by any law,
statute, rule, regulation, directive, order, decree, guideline (or any
interpretation thereof by courts or of administrative bodies) of the United
States of America, or any jurisdiction in which any Eurodollar Office is located
or any state or political subdivision of any of the foregoing, or by any board,
governmental or administrative agency, central bank or monetary authority of the
United States of America, any jurisdiction in which any Eurodollar Office is
located, or any political subdivision of any of the foregoing. any such
requirement imposed on any of the Banks not having the force of law shall be
deemed to be a Bank Legal Requirement if such Bank reasonably believes that
compliance therewith is in the best interest of such Bank.

         "Bank One" means Bank One, NA..

         "Banking Day" means any day other than Saturday, Sunday or a day on
which banks in Tulsa, Oklahoma are authorized or required by law or other
governmental action to close and, if such term is used with reference to a
Eurodollar Pricing Option, any day on which dealings are effected in the
Eurodollars in question by first-class banks in the inter-bank Eurodollar
markets in New York, New York.

         "Bankruptcy Law" is defined in clause (viii) of Section 9.1.

         "Base Rate" means, on any date, the greater (i) the rate of interest
announced by JPMorgan Chase Bank, National Association, New York, New York, or
such other financial institution that is the primary banking subsidiary of
JPMorgan Chase & Co., as its Base Rate or (ii) the sum of 1/2% plus the Federal
Funds Rate.

                                       6

<PAGE>

         "Base Rate Loan" means each portion of the Loan bearing interest
determined by reference to the Base Rate.

         "Bi-State" means Heritage-Bi State LLC, a Delaware limited liability
company.

         "BOk" has the meaning specified in the introduction to this Agreement.

         "Business" shall mean each of (i) the business of wholesale and retail
sales, storage, transportation and distribution of propane gas, providing
repair, installation and maintenance services for propane heating systems; the
sale and distribution of propane-related supplies and equipment (including
appliances); the generation, transportation, sale, distribution and marketing
relating thereto of propane-powered fuel cells, or the power generated therefrom
and equipment related thereto, and (ii) the business of purchasing, gathering,
treating, processing, marketing, sales, storage, transportation, fractionation
and distribution of natural gas and natural gas liquids and other related energy
services.

         "Capital Stock" means, with respect to any Person, any and all shares,
units representing interests, participations, rights in or other equivalents
(however designated) of such Person's capital stock, including, with respect to
partnerships, partnership interests (whether general or limited) and any other
interest or participation that confers upon a Person the right to receive a
share of the profits and losses of, or distributions of assets of, such
partnership, and any rights (other than debt securities convertible into capital
stock), warrants or options exchangeable for or convertible into such capital
stock.

         "Capitalized Lease Obligation" means any rental obligation which under
GAAP would be required to be capitalized on the books of the Borrower or any of
its Subsidiaries, taken at the amount thereof accounted for as indebtedness (net
of interest expense) in accordance with such principles.

         "Cash Equivalents" is defined in Section 7B.5(iii).

         "CERCLA" shall mean the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, 42 U.S.C. Section 9601 et seq., as the
same may be amended from time to time.

         "Certificates and Stock Powers" is defined in Section 6.1(vi).

         "Change of Control" means the acquisition by any Person or group of
related persons (as such terms are defined in the Exchange Act) (other than the
Current Management or group of related persons (as so defined) including the
Current Management) of beneficial ownership of more than 50% of the Units.

         "Closing Date" means the effective date of this Agreement and each
other date on which any extension of credit is made pursuant to Section 2.1, 2.2
or 2.3.

         "Code" means the Internal Revenue Code of 1986, as amended.

                                       7

<PAGE>

         "Collateral" is defined in the Security Agreement, provided, however,
that Collateral shall not include for any purpose under this Agreement or any
other Loan Document any property subject to a Lien incurred pursuant to clause
(i), (vii) or (viii) of Section 7B.3 or any renewals of any such Lien pursuant
to clause (xiv) of Section 7B.3 unless the Indebtedness secured by such Lien
shall have been paid or discharged.

         "Collateral Agent" shall mean Wilmington Trust Company, a Delaware
trust company, in its capacity as collateral agent under the Intercreditor and
Agency Agreement and its successors and assigns in such capacity under Section
11 thereof.

         "Commission" means the United States Securities and Exchange
Commission.

         "Commitments" means, with respect to any Bank, such Bank's obligations
to extend the credit facilities contemplated by Section 2. The original
Commitments are set forth in Section 10.1 and the current Commitments are
recorded from time to time in the Register.

         "Common Units" shall mean common units representing a limited
partnership interest in the Master Partnership and the Borrower on a combined
basis.

         "Consolidated Debt Service" means, as of any date of determination, the
total amount payable by the Borrower and its Subsidiaries on a consolidated
basis during the four consecutive calendar quarters next succeeding the date of
determination, in respect of scheduled principal and interest payments with
respect to Indebtedness of the Borrower and its Subsidiaries outstanding on such
date of determination, after giving effect to any Indebtedness proposed on such
date to be incurred and to the substantially concurrent repayment of any other
Indebtedness (a) including actual payments under Capitalized Lease Obligations,
(b) assuming, in the case of Indebtedness (other than Indebtedness referred to
in clause (c) below) bearing interest at fluctuating interest rates which cannot
be determined in advance, that the rate actually in effect on such date will
remain in effect throughout such period, (c) including only actual interest (but
not principal) payments associated with the Indebtedness incurred pursuant to
Section 7B.2(ii) and 7B.2(v) during the most recent four consecutive calendar
quarters and (d) treating the principal amount of all Indebtedness outstanding
as of such date of determination under a revolving credit or similar agreement
(other than the Indebtedness incurred pursuant to Section 7B.2(ii) and Section
7B.2(v)) as maturing and becoming due and payable on the scheduled maturity date
or dates thereof (including the maturity of any payment required by any
commitment reduction or similar amortization provision), without regard to any
provision permitting such maturity date to be extended (except for such
extensions as may be made in the sole discretion of the borrower thereunder and
without any conditions that remain to be fulfilled by the borrower or waived by
the lender thereunder). See Section 1.2.

         "Consolidated EBITDA" means, as of any date of determination for any
applicable period, (1) the sum of, without duplication, the amounts for such
period, taken as a single accounting period, of (a) Consolidated Net Income and
(b) to the extent deducted in the determination of Consolidated Net Income,
after excluding amounts attributable to minority interests in Subsidiaries and
without duplication, (i) Consolidated Non-Cash Charges, (ii) Consolidated
Interest Expense and (iii) Consolidated Income Tax Expense less (2) any non-cash

                                       8

<PAGE>

items increasing Consolidated Net Income for such period to the extent that such
items constitute reversals of a Consolidated Non-Cash Charge for a previous
period and which were included in the computation of Consolidated EBITDA for
such previous period pursuant to the provisions of the preceding clause (1).
Consolidated EBITDA shall be calculated after giving effect, on a pro forma
basis and in accordance with GAAP, to, without duplication, any Asset Sales or
Asset Acquisitions (including without limitation any Asset Acquisition giving
rise to the need to make such calculation as a result of the Borrower or one of
its Subsidiaries incurring, assuming or otherwise being liable for Acquired
Debt) occurring during the period commencing on the first day of such period to
and including the date of the transaction (the "Reference Period"), as if such
Asset Sale or Asset Acquisition occurred on the first day of the Reference
Period; provided, however, that Consolidated EBITDA generated by an acquired
business or asset shall be determined by the actual gross profit (revenues minus
cost of goods sold) of such acquired business or asset during the immediately
preceding four full fiscal quarters in the Reference Period minus the pro forma
expenses that would have been incurred by the Borrower and its Subsidiaries in
the operation of such acquired business or asset during such period computed on
the basis of personnel expenses for employees retained or to be retained by the
Borrower and its Subsidiaries in the operation of such acquired business or
asset and non-personnel costs and expenses incurred by the Borrower and its
Subsidiaries in the operation of the Borrower's business at similarly situated
facilities of the Borrower or any of its Subsidiaries (as determined in good
faith by the General Partner determined (a) on the basis of 100% that amount for
the period of upon reasonable assumptions). As used herein, but only for
purposes of Sections 7B.1(i) and (ii), Consolidated EBITDA shall be determined
(a) on the basis of 100% of that amount for the period of the four most recent
fiscal quarters ending on or prior to the date of determination or (b) 50% of
that amount for the period of the eight most recent fiscal quarters ending on or
prior to the date of determination, whichever is higher. For all other purposes
hereof, Consolidated EBITDA shall be based upon that amount determined over the
four most recent fiscal quarters ending on or prior to the date of determination
(or, as the case may be, for which financial statements have been or are
required to be delivered to the Banks pursuant to Section 7B.1(i) and (ii)). See
Section 1.2.

         "Consolidated Funded Indebtedness" means, as of any date of
determination, the aggregate amount of Indebtedness of the Borrower and its
Subsidiaries outstanding on that date and maturing in more than 12 months,
including the Private Placement Notes and borrowings under the Acquisition
Facility (including current maturities of any such Indebtedness).
Notwithstanding anything to the contrary contained herein, Consolidated Funded
Indebtedness shall not include borrowings under the Working Capital Facility to
the extent permitted under the Note Purchase Agreements.

         "Consolidated Income Tax Expense" means, with respect to the Borrower
and its Subsidiaries, for any period, the provision for federal, state, local
and foreign income taxes of the Borrower and its Subsidiaries for such period as
determined on a consolidated basis in accordance with GAAP. See Section 1.2.

         "Consolidated Interest Expense" means as of any date of determination
for any applicable period, without duplication, the sum of (i) the interest
expense of the Borrower and its Subsidiaries for such period as determined on a
consolidated basis in accordance with GAAP,

                                       9

<PAGE>

including without limitation (a) any amortization of debt discount, (b) the net
cost under Interest Rate Agreements, (c) the interest portion of any deferred
payment obligation, (d) all commissions, discounts and other fees and charges
owed with respect to letters of credit and bankers' acceptance financing and (e)
all accrued interest and (ii) the interest component of Capitalized Lease
Obligations paid, accrued or scheduled to be paid or accrued by the Borrower and
its Subsidiaries during such period as determined on a consolidated basis in
accordance with GAAP. In computing Consolidated Interest Expense for purposes of
clause (ii) of Section 7B.1, the applicable period for the determination thereof
shall be the four most recent fiscal quarters ending on or prior to the date of
determination. See Section 1.2.

         "Consolidated Net Income" means the net income of the Borrower and its
Subsidiaries, as determined on a consolidated basis in accordance with GAAP and
after provision for minority interests and as adjusted to exclude (i) net
after-tax extraordinary gains or losses, (ii) net after-tax gains or losses
attributable to Asset Sales, (iii) the net income or loss of any Person which is
not a Subsidiary of the Borrower and which is accounted for by the equity method
of accounting, provided that Consolidated Net Income shall include the amount of
cash dividends or distributions actually paid to the Borrower or any Subsidiary
of the Borrower, (iv) the net income or loss prior to the date of acquisition of
any Person combined with the Borrower or any Subsidiary of the Borrower in a
pooling of interest, (v) the net income of any Subsidiary of the Borrower to the
extent that dividends or distributions of such net income are not at the date of
determination permitted by the terms of its charter or any agreement,
instrument, judgment, decree, order, statute, rule or other regulation and (vi)
the cumulative effect of any changes in accounting principles. See Section 1.2.

         "Consolidated Net Worth" means, with respect to any Person, at any date
of determination, the total partners' capital (in the case of a partnership) or
stockholders' equity (in the case of a corporation) of such Person at such date,
as would be shown on a consolidated balance sheet of such Person and its
Subsidiaries, if any, prepared in accordance with GAAP. See Section 1.2.

         "Consolidated Non-Cash Charges" means with respect to the Borrower and
its Subsidiaries, for any period, the aggregate depreciation and amortization,
in each case reducing Consolidated Net Income of the Borrower and its
Subsidiaries for such period, determined on a consolidated basis in accordance
with GAAP. See Section 1.2.

         "Consolidated Pro Forma Maximum Debt Service" means, as of any date of
determination, the maximum amount payable by the Borrower and its Subsidiaries
on a consolidated basis during all periods of four consecutive calendar
quarters, commencing with the calendar quarter in which such date of
determination occurs and ending June 30, 2011, in respect of scheduled principal
and interest payments with respect to all Indebtedness of the Borrower and its
Subsidiaries outstanding on such date of determination, after giving effect to
any Indebtedness proposed on such date to be incurred and to the substantially
concurrent repayment of any other Indebtedness (a) including all payments under
Capitalized Lease Obligations, (b) assuming, in the case of Indebtedness (other
than Indebtedness referred to in clause (c) below) bearing interest at
fluctuating interest rates which cannot be determined in advance, that the rate
actually in effect on such date will remain in effect throughout such period,
(c) including only

                                       10

<PAGE>

actual interest (but not principal) payments associated with the Indebtedness
incurred pursuant to Section 7B.2 during the most recent four consecutive
calendar quarters and (d) treating the principal amount of all Indebtedness
outstanding as of such date of determination under a revolving credit or similar
agreement (other than the Indebtedness incurred pursuant to Section 7B.2 as
maturing and becoming due and payable on the scheduled maturity date or dates
thereof (including the maturity of any payment required by any commitment
reduction or similar amortization provision), without regard to any provision
permitting such maturity date to be extended (except for such extensions as may
be made in the sole discretion of the borrower thereunder and without any
conditions that remain to be fulfilled by the borrower or waived by the lender
thereunder). See Section 1.2.

         "Consolidated Tangible Net Worth" means, with respect to any Person, at
any date of determination, the then Consolidated Net Worth of Person minus the
net book value of all assets of such Person and its Subsidiaries, if any, (after
deducting any reserves applicable thereto), which would be shown as intangible
assets on a consolidated balance sheet of such Person and its Subsidiaries, if
any, as of such time prepared in accordance with GAAP. See Section 1.2.

         "Contribution Agreement" collectively shall mean the Contribution,
Conveyance and Assumption Agreement, dated as of June 28, 1996, among the other
signatories thereto, in connection with the transactions contemplated by the
Existing Credit Agreement and the Contribution Agreement, dated as of November
6, 2003, among the signatory parties thereto in connection with the La Grange
Acquisition, as each of the same may from time to time be amended, supplemented,
restated or otherwise modified in accordance with the terms thereof and hereof.

         "Control Event" means:

                  (i)      the execution of any written agreement to which the
         Borrower or any Affiliate of the Borrower is a party which could
         reasonably be expected to result in a Change of Control.

                  (ii)     the commencement (as such term is used in Rule
         14d-2(a) under the Exchange Act as in effect on the date of the
         Closing) of a tender offer by any person (as such term is used in
         Section 13(d) and Section 14(d)(2) of the Exchange Act as in effect on
         the date of the Closing) or related person constituting a group (as
         such term issued in Rule 13d-5 under the Exchange Act as in effect on
         the date of the Closing) for units which would result in such person or
         group owning, directly or indirectly, more than 50% of the outstanding
         Units.

         "Conveyance Agreements" shall mean (a) the Contribution Agreement and
(b) each of the individual bills of sale and other conveyance documents
delivered to the Borrower pursuant to the Contribution Agreement in each case as
the same may from time to time be amended, supplemented or otherwise modified in
accordance with the terms thereof and hereof.

         "Credit Obligations" means all present and future liabilities,
obligations and Indebtedness of the Borrower or any of its Subsidiaries owing to
the Administrative Agent, the Co-Agent or

                                       11

<PAGE>

any Bank under or in connection with this Agreement or any other Loan Document,
including obligations in respect of principal, interest, reimbursement
obligations under Letters of Credit and Interest Rate Agreements provided by a
Bank (or an Affiliate of a Bank), commitment fees, Letter of Credit fees,
amounts provided for in Sections 3.2.4, 3.5, 3.6, 3.7, 3.8 and 3.10 and any
other fees, charges, indemnities and expenses from time to time owing hereunder
or under any other Loan Documents (whether accruing before or after the
commencement of proceedings under any Bankruptcy Law).

         "Credit Participant" is defined in Section 11.2.

         "Current Management" shall mean (a) either H. Michael Krimbill or
Michael L. Greenwood and (b) any one (1) of the following: James E.
Bertelsmeyer, R.C. Mills, Bradley K. Atkinson, Ray C. Davis or Kelcy L. Warren,
together with the heirs of, and trusts for the benefit of family members
controlled by, any such executive manager described in (a) or (b) hereof.

         "Departing Bank" shall mean Harris Trust and Savings Bank.

         "Environmental Laws" means all applicable federal, state, local and
foreign laws, rules or regulations as amended from time to time, relating to
emissions, discharges, releases, threatened releases, removal, remediation or
abatement of pollutants, contaminants, chemicals or industrial, toxic or
hazardous substances or wastes into or in the environment (including without
limitation air, surface water, ground water or land), or otherwise used in
connection with the manufacture, processing, distribution, use, treatment,
storage, disposal, transport or handling of pollutants, contaminants, toxic or
hazardous substances or wastes, as defined under such applicable laws.

         "Equity Interest" means, with respect to any Person, any capital stock
issued by such Person, regardless of class or designation, or any limited or
general partnership interest in such Person, regardless of designation, and all
warrants, options, purchase rights, conversion or exchange rights, voting
rights, calls or claims of any character with respect thereto.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

         "ERISA Affiliate" means any trade or business (whether or not
incorporated) that, together with the Borrower, is treated as a single employer
under Section 414(b) or (c) of the Code, or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.

         "ERISA Event" means (i) any "reportable event", as defined in Section
4043 of ERISA or the regulations issued thereunder, with respect to a Plan; (ii)
the adoption of any amendment to a Plan that would require the provision of
security pursuant to Section 401(a)(29) of the Code or Section 307 of ERISA;
(iii) the existence with respect to any Plan of an "accumulated funding
deficiency" (as defined in Section 412 of the Code or Section 302 of ERISA),
whether or not waived; (iv) the filing pursuant to Section 412(d) of the Code or
Section 303(d) of ERISA of an application for a waiver of the minimum funding
standard with respect to any Plan; (v) the incurrence of any liability under
Title IV of ERISA with respect to the termination of any Plan or the withdrawal
or partial withdrawal of the Borrower or any of its ERISA Affiliates from any

                                       12

<PAGE>

Plan or Multiemployer Plan; (vi) the receipt by the Borrower or any ERISA
Affiliate from the PBGC or a plan administrator of any notice relating to the
intention to terminate any Plan or Plans or to appoint a trustee to administer
any Plan; (vii) the receipt by the Borrower or any ERISA Affiliate of any notice
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA; and (viii) the occurrence of a
"prohibited transaction" with respect to which the Borrower or any of its
Subsidiaries is a "disqualified person" (within the meaning of Section 4975 of
the Code) and with respect to which the Borrower or such Subsidiary would be
liable for the payment of an excise tax.

         "Eurodollars" means, with respect to any Bank, deposits of United
States Funds in a non-United States office or an international banking facility
of such Bank.

         "Eurodollar Basic Rate" means, for any Eurodollar Interest Period, the
rate of interest at which Eurodollar deposits in an amount comparable to the
Percentage Interest of BOk in the portion of a Loan as to which a Eurodollar
Pricing Option has been elected and which have a term corresponding to such
Eurodollar Interest Period are offered to the Administrative Agent by first
class banks in the inter-bank Eurodollar market for delivery in immediately
available funds at a Eurodollar Office on the first day of such Eurodollar
Interest Period as determined by the Administrative Agent at approximately 10:00
a.m. (Tulsa, Oklahoma time) two Banking Days prior to the date upon which such
Eurodollar Interest Period is to commence (which determination by the
Administrative Agent shall, in the absence of manifest error, be conclusive) and
as furnished promptly thereafter by the Administrative Agent.

         "Eurodollar Interest Period" means any period, selected as provided in
Section 3.2.1, of one or three months, commencing on any Banking Day and ending
on the corresponding date in the subsequent calendar month so indicated (or, if
such subsequent calendar month has no corresponding date, on the last day of
such subsequent calendar month); provided, however, that subject to Section
3.2.3, if any Eurodollar Interest Period so selected would otherwise begin or
end on a date which is not a Banking Day, such Eurodollar Interest Period shall
instead begin or end, as the case may be, on the immediately preceding or
succeeding Banking Day as determined by the Administrative Agent in accordance
with the then current banking practice in the inter-bank Eurodollar market with
respect to Eurodollar deposits at the applicable Eurodollar Office, which
determination by the Administrative Agent shall, in the absence of manifest
error, be conclusive.

         "Eurodollar Loan" means each portion of the Loan bearing interest
determined by reference to the Eurodollar Rate.

         "Eurodollar Office" means such non-United States office or
international banking facility of any Bank as the Administrative Agent may from
time to time select.

         "Eurodollar Pricing Options" means the options granted pursuant to
Section 3.2.1 to have the interest on any portion of a Loan computed on the
basis of a Eurodollar Rate.

                                       13

<PAGE>

         "Eurodollar Rate" for any Eurodollar Interest Period means the rate,
rounded upward to the nearest 1/100%, obtained by dividing (a) the Eurodollar
Basic Rate for such Eurodollar Interest Period by (b) an amount equal to 1 minus
the Eurodollar Reserve Rate; provided, however, that if at any time during such
Eurodollar Interest Period the Eurodollar Reserve Rate applicable to any
outstanding Eurodollar Pricing Option changes, the Eurodollar Rate for such
Eurodollar Interest Period shall automatically be adjusted to reflect such
change, effective as of the date of such change.

         "Eurodollar Reserve Rate" means the stated maximum rate (expressed as a
decimal) of all reserves (including any basic, supplemental, marginal or
emergency reserve or any reserve asset), if any, as from time to time in effect,
required by any Bank Legal Requirement to be maintained by any Bank against (a)
"Eurocurrency liabilities" as specified in Regulation D of the Board of
Governors of the Federal Reserve System applicable to Eurodollar Pricing
Options, (b) any other category of liabilities that includes Eurodollar deposits
by reference to which the interest rate on portions of a Loan subject to
Eurodollar Pricing Options is determined, (c) the principal amount of or
interest on any portion of the Loan subject to a Eurodollar Pricing Option or
(d) any other category of extensions of credit, or other assets, that includes
loan subject to a Eurodollar Pricing Option by a non-United States office of any
of the Banks to United States residents, in each case without the benefits of
credits for prorations, exceptions or offsets that may be available to a Lender.

         "Event of Default" means any of the events specified in Section 9.1,
provided that there has been satisfied any requirement in connection with such
event for the giving of notice, or the lapse of time, or the happening of any
further condition, event or act, and "Default" shall mean any of such events,
whether or not any such requirement has been satisfied.

         "Excess Proceeds" is defined in Section 4.2.4.

         "Excess Sale Proceeds" is defined in Section 7B.7(iii)(c)(ii).

         "Excess Taking Proceeds" is defined in Section 4.2.3(ii).

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

         "Existing Credit Agreement" means the Credit Agreement dated as of June
25, 1996, as amended by the First Amendment to Credit Agreement dated as of July
25, 1996, the Second Amendment to Credit Agreement dated as of February 28,
1997, the Third Amendment to Credit Agreement dated as of September 30, 1997,
the Fourth Amendment to Credit Agreement dated as of November 18, 1997, and the
Fifth Amendment to Credit Agreement dated as of November 13, 1998, as replaced
and restated by the First Amended and Restated Credit Agreement dated as of May
31, 1999, between and among Borrower, BOk, Firstar Bank, N.A. ("Firstar"), and
Local, and BOk, as Administrative Agent, and Firstar, as Co-Agent, as amended by
the First Amendment to First Amended and Restated Credit Agreement dated as of
October 15, 1999, between and among Borrower, BOk, Firstar and

                                       14

<PAGE>

Local, and BOk, as Administrative Agent and Firstar, as Co-Agent, as amended by
the Second Amendment to First Amended and Restated Credit Agreement dated as of
May 31, 2000, between and among Borrower, BOk, Firstar and Local, and BOk, as
Administrative Agent, and Firstar, as Co-Agent, as amended by the Third
Amendment to First Amended and Restated Credit Agreement dated as of August 10,
2000, between and among Borrower, BOk, Firstar, Local and Harris, as lenders,
and BOk, as Administrative Agent and Firstar, as Co-Agent, as further amended by
the Fourth Amendment to First Amended and Restated Credit Agreement dated as of
December 28, 2000, between and among Borrower, BOk, Firstar, Local and Harris
Trust and Savings Bank ("Harris"), as lenders, the Administrative Agent and the
Co-Agent, as further amended by the Fifth Amendment to the First Amended and
Restated Credit Agreement dated as of July 16, 2001, between and among Borrower,
BOk, Firstar, Local and Harris, as lenders, and BOk, as Administrative Agent,
and Firstar, as Co-Agent, and as further amended by the Sixth Amendment to the
First Amended and Restated Credit Agreement dated as of October 1, 2003, between
and among Borrower, BOk, U.S. Bank National Association, successor to Firstar,
Local and Harris, as lenders, and BOk, as Administrative Agent, and US Bank, as
Co-Agent.

         "Federal Funds Rate" means, for any day, the rate equal to the weighted
average (rounded upward to the nearest 1/8%) of the rates on overnight federal
funds transactions with members of the Federal Reserve System arranged by
federal funds brokers, (i) as such weighted average is published for such day
(or, if such day is not a Banking Day, for the immediately preceding Banking
Day) by the Federal Reserve Bank of New York or (ii) if such rate is not so
published for such Banking Day, as determined by the Administrative Agent using
any reasonable means of determination. Each determination by the Administrative
Agent of the Federal Funds Rate shall, in the absence of manifest error, be
conclusive.

         "Fifth Third" shall mean Fifth Third State Bank.

         "Final Maturity Date" means December 31, 2006.

         "Financial Statement Delivery Date" means each date on which financial
statements are to be delivered pursuant to Section 7A.1(i) and (ii),
respectively.

         "Financing Statements" shall have the meaning specified in Section
6.1(vi).

         "Fixed Charges" shall mean scheduled principal and interest payments
and payments due under Capitalized Lease Obligations.

         "Foreign Trade Regulations" means (i) any act that prohibits or
restricts, or empowers the President or any executive agency of the United
States of America to prohibit or restrict, exports to or financial transactions
with any foreign country or foreign national, (ii) the regulations with respect
to certain prohibited foreign trade transactions set forth at 22 C.F.R. parts
120-130 and 31 C.F.R. Part 500 and (iii) any order, regulation, ruling,
interpretation, direction, instruction or notice relating to any of the
foregoing.

         "Funding Liability" means (a) any Eurodollar deposit which was used (or
deemed by Section 3.2.6 to have been used) to fund any portion of a Loan subject
to a Eurodollar Pricing Option, and (b) any portion of a Loan subject to a
Eurodollar Pricing Option funded (or deemed by Section 3.2.6 to have been
funded) with the proceeds of any such Eurodollar deposit.

                                       15

<PAGE>

         "GAAP" is defined in Section 1.2.

         "General Partner" means U.S. Propane in its capacity as the general
partner of the Borrower.

         "Governmental Authority" means any governmental agency, authority,
instrumentality or regulatory body, other than a court or other tribunal, in
each case whether federal, state, local or foreign.

         "Guaranty" means, with respect to any Person, any direct or indirect
liability, contingent or otherwise, of such Person with respect to any
Indebtedness of another, including, without limitation, any such obligation
directly or indirectly guaranteed, endorsed (otherwise than for collection or
deposit in the ordinary course of business) or discounted or sold with recourse
by such Person, or in respect of each such Person is otherwise directly or
indirectly liable, including, without limitation, any such obligation in effect
guaranteed by such Person through any agreement (contingent or otherwise) to
purchase, repurchase or otherwise acquire such obligation or any security
therefor, or to provide funds for the payment or discharge of such obligation
(whether in the form of loans, advances, stock purchases, capital contributions
or otherwise), or to maintain the solvency or any balance sheet or other
financial condition of the obligor of such obligation, or to make payment for
any products, materials or supplies or for any transportation or services
regardless of the non-delivery or non-furnishing thereof, in any such case if
the purpose or intent of such agreement is to provide assurance that such
obligation will be paid or discharged, or that any agreements relating thereto
will be complied with, or that the holders of such obligation will be protected
against loss in respect thereof. The amount of any Guaranty shall be equal to
the outstanding principal amount of the obligation guaranteed or such lesser
amount to which the maximum exposure of the guarantor shall have been
specifically limited.

         "Hazardous Substance" means any substance so designated pursuant to
CERCLA, asbestos, petroleum, urea formaldehyde insulation and petroleum
by-products (other than propane).

         "Heritage Service" means Heritage Service Corp., a Delaware
corporation.

         "Heritage Service Credit Agreement" means the First Amended and
Restated Revolving Credit Agreement dated as of May 31, 1999, between and among
Heritage Service, as borrower, the Banks, as lenders, the Administrative Agent
and the Co-Agent, as amended from time to time, including, without limitation,
that certain Fourth Amendment thereto dated as of July 16, 2001.

         "Indebtedness" shall mean, with respect to any Person, without
duplication,

                  (a)      any indebtedness for borrowed money, all obligations
         upon which interest charges are customarily paid and all obligations
         evidenced by any bond, note, debenture or other similar instrument
         which such Person has directly or indirectly created, incurred or
         assumed;

                                       16

<PAGE>

                  (b)      all obligations of others secured by any Lien in
         respect of property owned by such Person, whether or not such Person
         has assumed or become liable for the payment of such indebtedness;
         provided that the amount of such Indebtedness, if such Person has not
         assumed the same or become liable therefor, shall in no event be deemed
         to be greater than the fair market value from time to time of the
         property subject to such Lien;

                  (c)      any indebtedness, whether or not for borrowed money
         (excluding trade payables and accrued expenses arising in the ordinary
         course of business), with respect to which such Person has become
         directly or indirectly liable and which represents the deferred
         purchase price (or a portion thereof) or has been incurred to finance
         the purchase price (or a portion thereof) of any property or service or
         business acquired by such Person, whether by purchase, consolidation,
         merger or otherwise;

                  (d)      the principal component of any Capitalized Lease
         Obligations to the extent such obligations would, in accordance with
         GAAP, appear on a balance sheet of such Person;

                  (e)      all Attributable Debt of such Person in respect of
         Sale and Lease-Back Transactions not involving a Capitalized Lease
         Obligation;

                  (f)      all Redeemable Capital Stock of such Person valued at
         the greater of its voluntary or involuntary maximum fixed repurchase
         price plus accrued dividends;

                  (g)      any Preferred Stock of any Subsidiary of such Person
         valued at the liquidation preference thereof, or any mandatory
         redemption payment obligations in respect thereof plus, in either case,
         accrued dividends thereon;

                  (h)      any indebtedness of the character referred to in
         clause (a), (b), (c), (d), (e), (f) or (g) of this definition deemed to
         be extinguished under GAAP but for which such Person remains legally
         liable;

                  (i)      any indebtedness of any other Person of the character
         referred to in clause (a), (b), (c), (d), (e), (f), (g) or (h) of this
         definition with respect to which the Person whose Indebtedness is being
         determined has become liable by way of a Guaranty;

                  (j)      all obligations, contingent or fixed, of such person
         as an account party in respect of letters of credit (other than letters
         of credit incurred in the ordinary course of business and consistent
         with past practice);

                  (k)      all liabilities of such Person in respect of unfunded
         vested benefits under pension plans (determined on a net basis for all
         such plans) and all asserted withdrawal liabilities of such Person or a
         commonly controlled entity to a Multiemployer Plan;

                  (l)      Swaps (other than Interest Rate Agreements);

                                       17

<PAGE>

                  (m)      all obligations of such Person in respect of bankers'
         acceptances (other than in respect of accounts payable to suppliers
         incurred in the ordinary course of business consistent with past
         practice); and

                  (n)      any amendment, supplement, modification, deferral,
         renewal, extension or refunding of any liability of the types referred
         to in clauses (a) through (m) above.

         For purposes hereof, the "maximum fixed repurchase price" of any
Redeemable Capital Stock which does not have a fixed repurchase price shall be
calculated in accordance with the terms of such Redeemable Capital Stock as if
such Redeemable Capital Stock were purchased on any date on which Indebtedness
shall be required to be determined pursuant to this Agreement and if such price
is based upon, or measured by, the fair market value of such Redeemable Capital
Stock, such fair market value shall be determined in good faith by the board of
directors or a similar governing body of the issuer of such Redeemable Capital
Stock.

         "Intercreditor Agreement" means the Intercreditor and Agency Agreement
among the Purchasers of the Private Placement Notes, the initial Administrative
Agent (BankBoston) and the Collateral Agent dated as of June 25, 1996, as
amended, supplemented or modified from time to time in connection with the
transactions and modifications contemplated by this Agreement.

         "Interest Coverage" means, as of any date, a ratio equal to the ratio
of (a) the Consolidated EBITDA of the Borrower for the period of four
consecutive fiscal quarters of the Borrower ending with the most recent fiscal
quarter for which the Borrower has delivered to the Banks, or is required under
Section 7A.1(i) to have delivered to the Banks, financial statements of the
Borrower to (b) the Consolidated Interest Expense of the Borrower for such
period of four consecutive fiscal quarters.

         "Interest Rate Agreement" shall mean any fully matched interest rate
Swap entered into with the intent to protect the Borrower against fluctuations
in interest rates and entered into as a bona fide hedging arrangement and not
for purposes of investment or speculation.

         "Investment" shall mean, as applied to any Person, any direct or
indirect purchase or other acquisition by such Person of stock or other
securities of any other Person, or any direct or indirect loan, advance or
capital contribution by such Person to any other Person, and any other item
which would be classified as an "investment" on a balance sheet of such Person
prepared in accordance with GAAP, including without limitation any direct or
indirect contribution by such Person of property or assets to a joint venture,
partnership or other business entity in which such Person retains an interest
(it being understood that a direct or indirect purchase or other acquisition by
such Person of assets of any other Person (other than stock or other securities)
shall not constitute an "Investment" for purposes of this Agreement so long as
such assets are all used in the Business). For the purposes of Section 7B.5(v),
the amount involved in Investments made during any period shall be the aggregate
cost to the Borrower and its Subsidiaries of all such Investments made during
such period, determined in accordance with GAAP, but without regard to
unrealized increases or decreases in value, or write-ups, write-downs or
write-offs, of such Investments and without regard to the existence of any
undistributed earnings or accrued

                                       18

<PAGE>

interest with respect thereto accrued after the respective dates on which such
Investments were made, less any net return of capital realized during such
period upon the sale, repayment or other liquidation of such Investments
(determined in accordance with GAAP, but without regard to any amounts received
during such period as earnings (in the form of dividends not constituting a
return of capital, interest or otherwise) on such Investments or as loans from
any Person in whom such Investments have been made). See Section 1.2(i).

         "Investment Limit" shall have the meaning specified in Section 7B.5(v).

         "La Grange" means La Grange Acquisition, L.P., a Texas limited
partnership, a subsidiary of the Master Partnership, together with all of its
existing and hereafter formed or acquired direct or indirect subsidiaries.

         "La Grange Acquisition" means, collectively, (i) the acquisition by La
Grange Energy, L. P. of the equity interests of U.S. Propane, all in accordance
with the Acquisition Agreement dated as of November 6, 2003, as amended or
modified, and (ii) the acquisition by the Master Partnership of substantially
all of the assets of La Grange and its Subsidiaries and the other transactions
contemplated in connection therewith, all in accordance with the Contribution
Agreement dated as of November 6, 2003, as amended and modified.

         "La Grange Credit Agreement" means the loan/credit agreement, as
amended, modified, supplemented or restated from time to time, governing the
establishment and administration of certain senior credit term loan and senior
revolving credit loan credit facilities in the maximum aggregate amount of
$450,000,000 being extended to La Grange, as borrower, by Fleet Securities, Inc.
and Wachovia Capital Markets, LLC, as joint lead arrangers, and Fleet National
and Wachovia Bank National Association and the group of additional investors to
become signatory parties thereto, as lenders.

         "La Grange Partnership Agreement" means the Agreement of Limited
Partnership of La Grange as in effect on the Closing Date of the La Grange
Credit Agreement or thereafter executed by the signatory parties thereto, and as
the same may from time to time be amended, supplemented or otherwise modified in
accordance with the terms thereof.

         "Legal Requirement" shall mean any law, statute, ordinance, decree,
requirement, order, judgment, rule or regulation (or published official
interpretation of any of the foregoing by any Governmental Authority) of any
Governmental Authority.

         "Lending Officer" means each of such individuals whom the
Administrative Agent may designate by notice to the Borrower from time to time
as an officer who may receive telephone requests for borrowings under Section
2.1.3 and 2.2.3.

         "Letter of Credit" is defined in Section 2.3.1.

         "Letter of Credit Exposure" means, at any date, the sum of (a) the
aggregate face amount of all drafts that may then or thereafter be presented by
beneficiaries under all Letters of Credit

                                       19

<PAGE>

then outstanding, plus (b) the aggregate face amount of all drafts that the
Letter of Credit Issuer has previously accepted under Letters of Credit but has
not paid.

         "Letter of Credit Issuer" means, for any Letter of Credit, BOk or, in
the event BOk does not for any reason issue a requested Letter of Credit,
another Bank designated by the Administrative Agent to issue such Letter of
Credit in accordance with Section 2.3.

         "Leverage Ratio" means, as of any date, a ratio equal to the ratio of
(a) the Consolidated Funded Indebtedness of the Borrower as of the last day of
the most recent fiscal quarter of the Borrower for which the Borrower has
delivered to the Banks, or is required under Section 7A.1(i) to have delivered
to the Banks, a consolidated balance sheet of the Borrower to (b) the
Consolidated EBITDA of the Borrower for the period of four consecutive fiscal
quarters ended on such last day.

         "Liabilities" is defined in the second opening paragraph of the Note
Purchase Agreements in effect on the date hereof.

         "Lien" means any mortgage, pledge, security interest, encumbrance,
contractual deposit arrangement, lien (statutory or otherwise) or charge of any
kind (including any agreement to give any of the foregoing, any conditional sale
or other title retention agreement, any lease in the nature thereof, and the
filing of or agreement to give any financing statement under the Uniform
Commercial Code of any jurisdiction) or any other type of preferential
arrangement for the purpose, or having the effect, of protecting a creditor
against loss or securing the payment or performance of an obligation.

         "Loan" means each of the Working Capital Loan and the Acquisition Loan.

         "Loan Documents" means this Agreement, the Intercreditor Agreement, the
Security Documents, the Service Revolver Notes and each agreement of Heritage
Service governing or securing the Service Revolver Notes.

         "Local" shall mean Local Oklahoma Bank.

         "Margin Period" means each period commencing on (and including) the
first day of any fiscal quarter of the Borrower and ending on (and including)
the earlier of (i) the last day of such fiscal quarter of the Borrower, or (ii)
the Final Maturity Date with respect to the Working Capital Loans.

         "Margin Stock" means "margin stock" within the meaning of Regulation G,
T, U or X of the Board of Governors of the Federal Reserve System.

         "Master Partnership" means Heritage Propane Partners, L.P., a Delaware
limited partnership.

         "Material Adverse Effect" means (i) a material adverse effect on the
business, assets or financial condition of the Borrower or the Borrower and its
Subsidiaries taken as a whole after

                                       20

<PAGE>

giving effect to the Transactions, (ii) a material impairment of the ability of
the Borrower or any Subsidiary of the Borrower to perform any of its obligations
under the Loan Documents to which it is a party or (iii) a material adverse
effect on the enforceability of any of the Loan Documents.

         "Maximum Amount of Acquisition Credit" is defined in Section 2.1.2.

         "Maximum Amount of Working Capital Credit" is defined in Section 2.2.2.

         "Memorandum" means the memorandum dated May, 1996, prepared by
Prudential Securities for use in connection with the Borrower's private
placement of the Private Placement Notes.

         "MidFirst" shall mean MidFirst Bank.

         "Multiemployer Plan" means a "multiemployer plan" as defined in section
4001(a)(3) of ERISA.

         "Net Proceeds" means the proceeds of any sale of assets in the form of
cash or cash equivalents including payments in respect of deferred payment
obligations when received in the form of cash or cash equivalents net of (i)
brokerage commissions and other fees and expenses related to such sale, (ii)
provisions for any taxes payable as a result of such sale, (iii) amounts
required to be paid to any Person (other than the Borrower or any Subsidiary of
the Borrower) owning a beneficial interest in the assets sold, (iv) appropriate
amounts to be provided by the Borrower or any Subsidiary of the Borrower, as the
case may be, as a reserve required in accordance with GAAP against any
liabilities associated with such sale of assets and retained by the Borrower or
any Subsidiary of the Borrower, as the case may be, after such sale and (v)
amounts required to be applied to the repayment of Indebtedness (other than the
Private Placement Notes and amounts due under the Working Capital Facility or
Acquisition Facility) secured by a Lien on the assets sold.

         "Non-Compete Obligations" is defined in Section 7B.3(viii).

         "Noncompliance Event" means either or both of the following:

                  (a)      failure of the Borrower to maintain a Leverage Ratio
         that is (i) equal to or less than 4.75 to 1 from November 30, 2003
         through November 30, 2004, and (ii) equal to or less than 4.50 to 1
         from February 28, 2005 and thereafter; and

                  (b)      failure of the Borrower to maintain Interest Coverage
         that is equal to or greater than 2.25 to 1.

         "Nonperforming Bank" is defined in Section 10.4.4.

         "Note Purchase Agreements" means that certain (i) Note Purchase
Agreement between and among Heritage, Borrower and the Note Purchasers named in
the Purchaser Schedule annexed as Schedule I thereto dated as of June 25, 1996,
as amended, modified, supplemented or

                                       21

<PAGE>

restated from time to time, (ii) Note Purchase Agreement between and among
Borrower, Heritage and the Note Purchasers named in the Initial Purchaser
Schedule annexed thereto dated as of November 19, 1997, as amended, modified,
supplemented or restated from time to time, and (iii) Note Purchase Agreement
dated as of August 10, 2000, between and among Heritage, Borrower and the Note
Purchasers annexed as Scheduled I thereto, as amended, modified, supplemented or
restated from time to time.

         "Note Purchasers" mean the purchasers of the Private Placement Notes.

         "Notes" means the Working Capital Notes and the Acquisition Notes.

         "Obligations" means and include any and all: (i) indebtedness,
obligations and liabilities of the Borrower to the Banks incurred or which may
be incurred or purportedly incurred hereafter pursuant to the terms of this
Agreement or any of the other Loan Documents, and any replacements, amendments,
extensions, renewals, substitutions, amendments and increases in amount thereof,
including such amounts as may be evidenced by the Notes and all lawful interest,
late charges, loan closing fees, service fees, origination/facility fees,
commitment fees, fees in lieu of balances, letter of credit processing and
issuance fees and other charges, and all reasonable costs and expenses incurred
in connection with the preparation, filing and recording of the Loan Documents,
including reasonable attorneys fees and legal expenses; (ii) all reasonable
costs and expenses paid or incurred by the Banks and/or either Agent or the
Collateral Agent, including reasonable attorneys fees, in enforcing or
attempting to enforce collection of any Indebtedness and in enforcing or
realizing upon or attempting to enforce or realize upon any collateral or
security for any Indebtedness, including interest on all sums so expended by the
Banks and/or either Agent or the Collateral Agent accruing from the date upon
which such expenditures are made until paid, at an annual rate equal to the
Default Rate; and (iii) all sums expended by the Banks and/or either Agent or
the Collateral Agent in curing any Event of Default or Default of the Borrower
under the terms of this Agreement, the other Loan Documents or any other writing
evidencing or securing the payment of the Notes together with interest on all
sums so expended by the Banks and/or either Agent or the Collateral Agent
accruing from the date upon which such expenditures are made until paid, at an
annual rate equal to the Default Rate; and (iv) indebtedness, obligations and
liabilities of the Borrower arising out of the Note Purchase Agreements,
including, without limitation, that evidenced by the Private Placement Notes.

         "Officer's Certificate" shall mean, as to any corporation, a
certificate executed on its behalf by the Chairman of the Board of Directors (if
an officer) or its President or one of its Vice Presidents, and its Treasurer,
or Controller, or one of its Assistant Treasurers or Assistant Controllers, and,
as to the Master Partnership or the Borrower, a certificate executed on behalf
of the Master Partnership or the Borrower, as the case may be, by its general
partner in a manner which would qualify such certificate (a) if such general
partner were a corporation, as an Officer's Certificate of such general partner
hereunder or (b) if such general partner were a partnership or other entity, as
a certificate executed on its behalf by Persons authorized to do so pursuant to
the constituting documents of such partnership or other entity.

                                       22

<PAGE>

         "Operative Agreements" means the Contribution Agreement, the other
Conveyance Agreements, the Partnership Agreement and the La Grange Partnership
Agreement.

         "Overdue Reimbursement Rate" means, at any date, the highest Applicable
Rate then in effect.

         "Parity Debt" means Indebtedness of the Borrower (a) (other than the
Notes) incurred in accordance with clauses (i), (ii) and (iii) of Section 7B.2
and (b) Additional Parity Debt.

         "Partnership Agreement" means the Agreement of Limited Partnership of
the Borrower as in effect on the Closing Date, and as the same may from time to
time be amended, supplemented or otherwise modified in accordance with the terms
thereof.

         "Partnership Documents" means the Agreement of Limited Partnership of
the Master Partnership and the Partnership Agreement, in each case as in effect
on the Closing Date and as the same may from time to time be amended,
supplemented or otherwise modified in accordance with the terms hereof and
thereof.

         "Payment Date" means the last Banking Day of each March, June,
September and December occurring after the Initial Closing Date.

         "PBGC" means the Pension Benefit Guaranty Corporation or any
Governmental Authority succeeding to any of its functions.

         "Percentage Interest" is defined in Section 10.1.

         "Percentage of Aggregate Available Cash" shall mean, with respect to
any fiscal quarter of the Borrower, the percentage determined by multiplying (i)
a fraction consisting of a numerator equal to the Borrower's Available Cash for
that period and a denominator equal to the Aggregate Available Cash by (ii) 100.

         "Performing Bank" is defined in Section 10.4.4.

         "Permits" is defined in Section 8.8.

         "Permitted Banks" is defined in Section 7B.5.

         "Permitted GP Entity" shall mean shall mean any one or combination of
(i) Persons or a group of unrelated persons (as such terms are defined in the
Exchange Act) who directly or indirectly beneficially own (as such term is
defined in Rule 13d-3 promulgated under the Exchange Act) the Capital Stock of
the General Partner immediately following consummation of the La Grange
Acquisition, and (ii) Current Management or group of related persons (as so
defined) including Current Management.

         "Person" means and includes an individual, a partnership, a joint
venture, a corporation, a trust, an unincorporated organization and a government
or any department or agency thereof.

                                       23

<PAGE>

         "Plan" means any "employee pension benefit plan" as such term is
defined in Section 3 of ERISA (other than a Multiemployer Plan) subject to the
provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of
ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if
such plan were terminated, would under Section 4069 of ERISA be deemed to be) an
"employer" as defined in Section 3(5) of ERISA.

         "Preferred Stock" means, as applied to the Capital Stock of any Person,
Capital Stock of any class or classes (however designated), which is preferred
as to the payment of distributions or dividends, or upon any voluntary or
involuntary liquidation or dissolution of such Person, over shares or units of
Capital Stock of any other class of such Person.

         "Priority Debt" means as of any date of determination, the sum, without
duplication, of (i) Indebtedness of the Subsidiaries of the Borrower (other than
Indebtedness owed to the Borrower or another Wholly-Owned Subsidiary), plus (ii)
Indebtedness of the Borrower and its Subsidiaries secured by Liens permitted by
clauses (i) and (vii) of Section 7B.3 and any renewals of such Liens permitted
by clause (xiv) of Section 7B.3

         "Property" means any interest in any kind of property or asset whether
real, personal, or mixed, or tangible or intangible.

         "PUHCA" is defined in Section 8.19.

         "Private Placement Notes" means (i) the $120,000,000 senior secured
notes issued pursuant to the Memorandum, sold to the Purchasers and described
and defined in the Note Purchase Agreement dated as of June 25, 1996, as
amended, (ii) the $47,000,000 senior secured notes described and defined in the
Note Purchase Agreement dated as of November 19, 1997, as amended, and (iii) the
$250,000,000 senior secured notes described and defined in the Note Purchase
Agreement dated as of August 10, 2000, as amended.

         "Redeemable Capital Stock" means, as of any date of determination, any
shares of any class or series of Capital Stock, that, either by the terms
thereof, by the terms of any security into which such shares are convertible or
exchangeable or by contract or otherwise, are or upon the happening of an event
or passage of time would be, required to be redeemed prior to the stated
maturity with respect to the principal of any Loans or are redeemable at the
option of the holder thereof at any time prior to the stated maturity of any
Loans, or are convertible into or exchangeable for Indebtedness at any time
prior to the stated maturity of any Loans.

         "Register" is defined in Section 11.1.3.

         "Replacement Bank" is defined in Section 11.3.

         "Required Banks" means, with respect to any approval, consent,
modification, waiver or other action to be taken by the Administrative Agent or
the Banks under the Loan Documents which require action by the Required Banks,
such Banks that own at least 66-2/3% of the Percentage Interests; provided,
however, that with respect to any matters referred to in the

                                       24

<PAGE>

proviso to Section 10.6, Required Banks means such Banks as own at least the
respective portions of the Percentage Interests required by Section 10.6.

         "Responsible Officer" means the chief executive officer, chief
operating officer, chief financial officer or chief accounting officer of the
Borrower or any other officer of the Borrower involved principally in its
financial administration or its controllership function.

         "Restricted Payment" means any payment or other distribution, direct or
indirect, in respect of any partnership or other equity interest in the
Borrower, except a distribution payable solely in additional partnership or
other equity interests in the Borrower, and any payment, direct or indirect on
account of the redemption, retirement, purchase or other acquisition of any
partnership or other equity interest in the Borrower.

         "Sale and Lease-Back Transaction" means, with respect to any Person (a
"Transferor"), any arrangement (other than between the Borrower and a
Wholly-Owned Restricted Subsidiary or between Wholly-Owned Restricted
Subsidiaries) whereby (a) property (the "Subject Property") has been or is to be
disposed of by such Transferor to any other Person with the intention on the
part of such Transferor of taking back a lease of such Subject Property pursuant
to which the rental payments are calculated to amortize the purchase price of
such Subject Property substantially over the useful life of such Subject
Property, and (b) such Subject Property is in fact so leased by such Transferor
or an Affiliate of such Transferor.

         "Securities Act" means the Securities Act of 1933, as amended.

         "Security Agreement" shall mean the Security Agreement from the
Borrower and U.S. Propane (formerly Heritage), as debtors and assignors, to the
Collateral Agent, for the benefit of the Banks and the Note Purchasers, as
secured parties, encumbering the Collateral described therein and covered
thereby.

         "Security Documents" shall mean the Security Agreement, the
Certificates and Stock Powers and the Financing Statements.

         "Senior Debt" shall mean Indebtedness of the Borrower which is not
expressed to be junior or subordinate to any other Indebtedness of the Borrower.

         "Service Revolver Notes" shall mean those certain promissory notes from
Heritage Service payable to the order of the Banks as more particularly
described in the Heritage Service Credit Agreement.

         "Significant Subsidiary Group" shall mean any Subsidiary of the
Borrower, or any group of Subsidiaries of the Borrower, which at any time of
determination account for (or in the case of a recently formed or acquired
Subsidiary would have so accounted for on a pro forma basis) more than 5% of
consolidated operating revenues of the Borrower and its Subsidiaries for the
fiscal year most recently ended or more than 5% of consolidated total assets of
the Borrower and its Subsidiaries as of the end of the most recently ended
fiscal quarter, in each case computed in accordance with GAAP.

                                       25

<PAGE>

         "Specified Entities" shall mean, (A) until such time as the La Grange
Acquisition is consummated, any one or more of the following entities: (i) Atmos
Energy Corporation, (ii) Piedmont Natural Gas Company, Inc., (iii) AGL
Resources, Inc., and (iv) TECO Energy, Inc., or a Successor to any entity
referred to in clause (i), (ii), (iii) or (iv) of this definition, and (B) from
and after the consummation of the La Grange Acquisition, any one or combination
of the following: (i) La Grange, any Wholly-Owned Subsidiary thereof, or a
Successor thereto, and (ii) any Permitted GP Entity.

         "Subsidiary" shall mean, with respect to any Person, any corporation,
limited liability company, partnership, joint venture, association, trust or
other entity of which (or in which) more than 50% of (a) the issued and
outstanding Capital Stock having ordinary voting power to elect a majority of
the board of directors of such corporation (irrespective of whether at the time
Capital Stock of any other class or classes of such corporation shall or might
have voting power upon the occurrence of any contingency), (b) the interests in
the capital or profits of such partnership, limited liability company, joint
venture or association with ordinary voting power to elect a majority of the
board of directors (or Persons performing similar functions) of such
partnership, limited liability company, joint venture or association, or (c) the
beneficial interests in such trust or other entity with ordinary voting power to
elect a majority of the board of trustees (or Persons performing similar
functions) of such trust or other entity, is at the time directly or indirectly
owned or controlled by such Person, by such Person and one or more of its other
Subsidiaries, or by one or more of such Person's other Subsidiaries. For the
purposes of any computation under Section 6A or clause (xiii) of Section 6B, the
defined terms Consolidated Debt Service, Consolidated EBITDA, Consolidated
Funded Indebtedness, Consolidated Interest Expense and Consolidated Pro Forma
Maximum Debt Service shall be calculated on the basis that Bi-State is a
Subsidiary of the Borrower, but only as long as the Borrower shall own 50% or
more of the interests in the capital or profits of Bi-State with ordinary voting
power to elect a majority of the board of directors (or Persons performing
similar functions) thereof.

         "Successor" shall mean, with respect to the Specified Entity, any
entity in which the holders of the Capital Stock of such Specified Entity
outstanding immediately prior to a consolidation, acquisition or merger
involving such Specified Entity hold, directly or indirectly through
Wholly-Owned Subsidiaries, at least a majority of the Capital Stock immediately
after such consolidation, acquisition or merger.

         "Swaps" shall mean, with respect to any Person, payment obligations
(fixed or contingent) with respect to interest rate swap agreements, interest
rate cap agreements, interest rate collar agreements, currency swaps and similar
obligations obligating such Person to make payments, whether periodically or
upon the happening of a contingency. For the purposes of this Agreement, the
amount of the obligation under any Swap shall be the amount determined in
respect thereof as of the end of the then most recently ended fiscal quarter of
such Person, based on the assumption that such Swap had terminated at the end of
such fiscal quarter, and in making such determination, if any agreement relating
to such Swap provides for the netting of amounts payable by and to such Person
thereunder or if any such agreement provides for the simultaneous payment of
amounts by and to such Person, then in each such case, the amount of such
obligation shall be the net amount so determined.

                                       26

<PAGE>

         "Tax" means any present or future tax, levy, duty, impost, deduction,
withholding or other charges of whatever nature at any time required by any Bank
Legal Requirement (i) to be paid by any Bank or (ii) to be withheld or deducted
from any payment otherwise required hereby to be made to any Bank, in each case
on or with respect to its obligations hereunder, the Loan, any payment in
respect of the Credit Obligations or any Funding Liability not included in the
foregoing; provided, however, that the term "Tax" shall not include taxes
imposed upon or measured by the net income of such Bank (other than withholding
taxes) or franchise taxes.

         "Total Assets" means, as of any date of determination, the consolidated
total assets of the Borrower and its Subsidiaries as would be shown on a
consolidated balance sheet of the Borrower and its Subsidiaries prepared in
accordance with GAAP as of that date. See Section 1.2(i).

         "Tulsa Office" means the principal banking office of BOk in Tulsa,
Oklahoma.

         "UCC" means the Uniform Commercial Code.

         "Uniform Customs and Practice" is defined in Section 2.3.7.

         "United States" or "U.S." means the United States of America.

         "United States Funds" means such coin or currency of the United States
as at the time shall be legal tender therein for the payment of public and
private debts.

         "Units" shall mean, collectively, the Common Units and each other
limited partnership interest which may be issued from time to time and which are
entitled by their terms to receive distributions.

         "Unused Proceeds Reserve" means, as of any date of determination, all
amounts theretofore offered to prepay Parity Debt under Section 7B.7(iii)(c)(ii)
and to prepay Notes under Section 4.2, the prepayment of which was declined by
the applicable lenders, less the portion of such amounts theretofore applied by
the Borrower to operations or capital expenditures in connection with the
conduct of the Borrower's business.

         "Unutilized Taking Proceeds" means, as of any date, any insurance or
condemnation proceeds (net of the reasonable costs of proceedings in connection
therewith and settlements in respect thereof) in excess of $100,000 with respect
to any single occurrence that were received by the Borrower or any of its
Subsidiaries in respect of any damage, destruction, condemnation or other taking
of all or any portion of the properties or assets of the Borrower or any of its
Subsidiaries and that have not been reinvested by the Borrower or any of its
Subsidiaries within a period of twelve months after such receipt in the
restoration, modification or replacement of the properties or assets in respect
of which such insurance or condemnation proceeds were received.

         "U.S. Bank" shall mean U. S Bank National Association.

                                       27

<PAGE>

         "USPLLC" shall mean U.S. Propane, LLC, a Delaware limited liability
company, the general partner of U.S. Propane.

         "U.S. Propane" means U.S. Propane, L.P., a Delaware limited
partnership, and successor to Heritage Holdings, Inc., a Delaware corporation
("Heritage").

         "Voting Stock" means, with respect to any corporation, any shares of
stock of such corporation the holders of which are entitled under ordinary
circumstances to vote for the election of directors of such corporation
(irrespective of whether at the time stock of any other class or classes shall
have or might have voting power by reason of the happening of any contingency).

         "Wholly-Owned" means, as applied to any Subsidiary of any Person, a
Subsidiary at least 98% (by vote or value) of the outstanding Equity Interests
(other than directors' qualifying shares, if required by law) of all classes,
taken together as a whole, of which are at the time owned by such Person or by
one or more of its Wholly-Owned Subsidiaries or by such Person and one or more
of its Wholly-Owned Subsidiaries.

         "Withdrawal Liability" shall mean liability to a Multiemployer Plan as
a result of a complete or partial withdrawal from such Multiemployer Plan, as
such terms are defined in Part I of Subtitle E of Title IV of ERISA.

         "Working Capital Facility" means the agreement of the Banks herein to
make Working Capital Loan and to provide for the issuance of Letters of Credit.

         "Working Capital Loan Account" is defined in Section 2.2.4.

         "Working Capital Loan" is defined in Section 2.2.4.

         "Working Capital Notes" is defined in Section 2.2.4.

         1.2      Accounting Principles, Terms and Determinations. All
references in this Agreement to "generally accepted accounting principles" or to
"GAAP" shall be deemed to refer to generally accepted accounting principles in
effect in the United States at the time of application thereof, but subject to
the provisions of this Section 1.2. Unless otherwise specified herein, all
accounting terms used herein shall be interpreted, all determinations with
respect to accounting matters hereunder shall be made, and all unaudited
financial statements and certificates and reports as to financial matters
required to be prepared hereunder shall be prepared in accordance with generally
accepted accounting principles, applied on a basis consistent with the most
recent audited consolidated financial statements of the Borrower and its
Subsidiaries delivered pursuant to clause (ii) of Section 7A.1.

         1.3      Construction. Except as otherwise explicitly specified to the
contrary or unless the context clearly requires otherwise, (i) the capitalized
term "Section" refers to sections of this Agreement, (ii) the capitalized term
"Exhibit" refers to exhibits to this Agreement, (iii) references to a particular
Article Section include all subsections thereof, (iv) the word

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<PAGE>

"including" shall be construed as "including without limitation", (v) terms
defined in the UCC and not otherwise defined herein have the meaning provided
under the UCC, (vi) references to a particular statute or regulation include all
rules and regulations thereunder and any successor statute, regulation or rules,
in each case as from time to time in effect and (vii) references to a particular
Person include such Person's successors and assigns to the extent not prohibited
by this Agreement and the other Loan Documents. References to "the date hereof"
mean the date first set forth above.

                                   ARTICLE II

                                   THE CREDITS

         2.1      Acquisition Facility.

                  2.1.1    Acquisition Loan. Subject to all the terms and
         conditions of this Agreement and so long as no Default exists, from
         time to time on and after the Closing Date and prior to the Final
         Maturity Date, the Banks will, severally in accordance with their
         respective Percentage Interests, make loans to the Borrower in such
         amounts as may be requested by the Borrower in accordance with Section
         2.1.3, constituting in part, a refinancing of the Acquisition Loan
         previously governed by the Existing Credit Agreement. The sum of the
         aggregate principal amount of loans made under this Section 2.1.1 at
         any one time outstanding shall in no event exceed the Maximum Amount of
         Acquisition Credit.

                  2.1.2    Maximum Amount of Acquisition Credit. The term
         "Maximum Amount of Acquisition Credit" means, on any date on or prior
         to the Final Maturity Date, the remainder of (x) the lesser of (a)
         $75,000,000 or (b) the aggregate Acquisition Loan Commitments described
         in Section 10.1, as amended from time to time, or such lesser amount as
         the Borrower may specify from time to time by notice from Borrower to
         the Administrative Agent.

                  2.1.3    Acquisition Loan Borrowing Requests. The Borrower may
         from time to time request a loan under Section 2.1.1 by providing to a
         Lending Officer of the Administrative Agent either a notice in writing
         or telephonic notice promptly confirmed in writing. Such notice must be
         not later than noon (Tulsa, Oklahoma time) three (3) Banking Days prior
         to the requested funding date for a Eurodollar Loan, otherwise two (2)
         Business Days prior to the requested funding date for such loan. The
         notice must specify (a) the amount of the requested loan (which shall
         be not less than $500,000 and in integral multiples of $100,000 in
         excess thereof) and (b) the requested funding date therefor (which
         shall be a Banking Day). Each such notice shall be accompanied by (i) a
         memorandum from the Chief Financial Officer of Borrower's general
         partner summarizing the proposed acquisition or capital expenditures to
         be financed by the advance, (ii) in the case of an acquisition a
         complete copy of the signed letter of intent (with all exhibits or
         schedules thereto to the extent available); provided, however, Borrower
         shall not make a loan request under Section 2.1.1 for any acquisition
         of a Business described in clause (ii) of the definition thereof for an
         amount in excess of

                                       29

<PAGE>

         $20,000,000 without the prior written consent of the Required Banks,
         (iii) a full and complete copy of the Borrower's internal acquisition
         or capital expenditure model (in general form, content and detail as
         utilized by the Borrower for similar acquisitions or capital
         expenditures prior to the Closing Date) and, in the case of borrowings
         hereunder relating to acquisitions or capital expenditures costing in
         excess of $1,000,000 and in each other case in which the Required Banks
         shall so request, calculations demonstrating Borrower's continued
         compliance with the financial ratios of Section 7B.1(i) and (ii) hereof
         as of and following the closing of such proposed acquisition or capital
         expenditure (utilizing, for the purpose of such demonstration, and
         subject to the calculation of Consolidated EBITDA resulting from such
         proposed Asset Acquisition, including adjustments permitted thereby,
         the financial statements of the Borrower and of the acquired business
         or asset for the most recent period of twelve consecutive months (as
         opposed to the immediately preceding four full fiscal quarters) for
         which such statements are available), and (iv) a full, completed copy
         of the confidential business questionnaire in the form as utilized by
         Borrower prior to the Closing Date (collectively the "Acquisition/Capex
         Due Diligence Packet"). Upon receipt of such notice, the Administrative
         Agent will promptly inform each other Bank (by telephone or otherwise).
         Each such loan will be made at the Administrative Agent's Tulsa Office
         by depositing the amount thereof to the Acquisition Loan Account of the
         Borrower with the Administrative Agent. In connection with each such
         loan, the Borrower shall furnish to the Administrative Agent a
         certificate in substantially the form of Exhibit 2.1.3.

                  2.1.4    Acquisition Loan Account: Acquisition Notes. The
         Administrative Agent will establish on its books an internal
         acquisition loan account for the Borrower (the "Acquisition Loan
         Account") for administrative purposes only, which such Administrative
         Agent shall administer as follows: (a) the Administrative Agent shall
         add to the Acquisition Loan Account, and the Acquisition Loan Account
         shall evidence, the principal amount of all loans from time to time
         made by the Banks to the Borrower pursuant to Section 2.1.1 and (b) the
         Administrative Agent shall reduce the Acquisition Loan Account by the
         amount of all payments made on account of the Obligation evidenced by
         the Acquisition Loan Account. The aggregate principal amount of the
         Indebtedness from time to time evidenced by the Acquisition Loan
         Account is referred to as the "Acquisition Loan." The Acquisition Loan
         shall be deemed owed to each Bank severally in accordance with such
         Bank's Percentage Interest, and all payments credited to the
         Acquisition Loan Account shall be for the account of each Bank in
         accordance with its Percentage Interest. The Borrower's obligations to
         pay each Bank's Percentage Interest in the Acquisition Loan shall be
         evidenced by a separate note of the Borrower in substantially the form
         of Exhibit 2.1.4 (the "Acquisition Notes"), payable to each Bank in
         maximum principal amount equal to such Bank's Percentage Interest in
         the total Commitments constituting the Acquisition Facility.

         2.2      Working Capital Facility.

                  2.2.1    Working Capital Loan. Subject to all the terms and
         conditions of this Agreement and so long as no Default exists, from
         time to time on and after the Closing Date and prior to the Final
         Maturity Date with respect to the Working Capital Loan the

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<PAGE>

         Banks will, severally in accordance with their respective Percentage
         Interests, make loans to the Borrower in such amounts as may be
         requested by the Borrower in accordance with Section 2.2.3,
         constituting in part, a refinancing of the Working Capital Loans
         previously governed by the Existing Credit Agreement. The sum of the
         aggregate principal amount of loans made under this Section 2.2.1 at
         any one time outstanding plus the Letter of Credit Exposure shall in no
         event exceed the Maximum Amount of Working Capital Credit.

                  2.2.2    Maximum Amount of Working Capital Credit. The term
         "Maximum Amount of Working Capital Credit" means, on any date, the
         lesser of (a) $75,000,000 minus the outstanding principal balance on
         the Indebtedness permitted by Section 7B.2(v) or such lesser amount as
         the Borrower may specify from time to time by notice from the Borrower
         to the Administrative Agent, or (b) the aggregate Working Capital Loan
         Commitments described in Section 10.1, as amended from time to time;
         provided that the aggregate outstanding principal amount of Working
         Capital Loan shall be reduced to $10,000,000 (excluding undrawn amounts
         on Letters of Credit issued pursuant to Section 2.3) for a period of
         not less than 30 consecutive calendar days at least one time during
         each fiscal year of the Borrower (the "Annual Clean-Up"). Failure by
         the Borrower to comply with the provisions of the Annual Clean-Up shall
         constitute a failure to pay the Loans when due and an Event of Default
         under Section 9.1.

                  2.2.3    Working Capital Borrowing Requests. The Borrower may
         from time to time request a loan under Section 2.2.1 by providing to a
         Lending Officer of the Administrative Agent, either a notice in writing
         or telephonic notice promptly confirmed in writing. Such notice must be
         not later than noon (Tulsa, Oklahoma time) on the Banking Day of the
         requested advance date for such loan. The notice must specify (a) the
         amount of the requested loan (which shall be not less than $100,000 and
         in integral multiples of $50,000 in excess thereof) and (b) the
         requested advance date therefor (which shall be a Banking Day). Upon
         receipt of such notice, such Administrative Agent will promptly inform
         each other Bank (by telephone or otherwise). Each such loan will be
         made at the Administrative Agent's Tulsa Office by depositing the
         amount thereof to the Borrower's Working Capital Loan Account with the
         Administrative Agent. In connection with each such loan, the Borrower
         shall furnish to the Administrative Agent, a certificate in
         substantially the form of Exhibit 2.2.3.

                  2.2.4    Working Capital Loan Account: Working Capital Notes.
         The Administrative Agent, will establish on its books an internal
         working capital loan account for the Borrower (the "Working Capital
         Loan Account"), for administrative purposes only, which such
         Administrative Agent shall administer as follows: (a) such
         Administrative Agent shall add to the Working Capital Loan Account, and
         the Working Capital Loan Account shall evidence, the principal amount
         of all loans made from time to time by the Banks to the Borrower
         pursuant to Section 2.2.1 and (b) such Administrative Agent shall
         reduce the Working Capital Loan Account by the amount of all payments
         made on account of the Indebtedness evidenced by the Working Capital
         Loan Account. The aggregate principal amount of the Indebtedness
         evidenced by the Working Capital Loan Account is referred to as the
         "Working Capital Loan." The Working Capital Loan

                                       31

<PAGE>

         shall be deemed owed to each Bank severally in accordance with such
         Bank's Percentage Interest, and all payments credited to the working
         Capital Loan Account shall be for the account of each Bank in
         accordance with its Percentage Interest. The Borrower's obligations to
         pay each Bank's Percentage Interest in the Working Capital Loan shall
         be evidenced by a separate note of the Borrower in substantially the
         form of Exhibit 2.2.4 (the "Working Capital Notes"), payable to each
         Bank in maximum principal amount equal to such Bank's Percentage
         Interest in the total Commitments constituting the Working Capital
         Facility.

         2.3      Letters of Credit.

                  2.3.1    Issuance of Letters of Credit. Subject to all the
         terms and conditions of this Agreement and so long as no Default
         exists, from time to time on and after the Closing Date and prior to 30
         days prior to the Final Maturity Date with respect to the Working
         Capital Loan, the Letter of Credit Issuer will issue for the account of
         the Borrower one or more irrevocable documentary or standby letters of
         credit (the "Letters of Credit"). Letter of Credit Exposure plus the
         Working Capital Loan shall in no event exceed the Maximum Amount of
         Working Capital Credit. Letter of Credit Exposure shall in no event
         exceed $5,000,000.

                  2.3.2    Requests for Letters of Credit. The Borrower may from
         time to time request a Letter of Credit to be issued by providing to
         the Letter of Credit Issuer (and the Administrative Agent if the Letter
         of Credit Issuer is not the Administrative Agent) a notice which is
         actually received not less than one (1) Banking Day prior to the
         requested issuance date for such Letter of Credit specifying (a) the
         amount of the requested Letter of Credit, (b) the beneficiary thereof,
         (c) the requested issuance date and (d) the principal terms of the text
         for such Letter of Credit. Each Letter of Credit will be issued by
         forwarding it to the Borrower or to such other Person as directed in
         writing by the Borrower. In connection with the issuance of any Letter
         of Credit, the Borrower shall furnish to the Letter of Credit Issuer
         (and the Administrative Agent if the Letter of Credit Issuer is not the
         Administrative Agent) a certificate in substantially the form of
         Exhibit 2.3.2. and any customary application forms required by the
         Letter of Credit Issuer.

                  2.3.3    Form and Expiration of Letters of Credit. Each Letter
         of Credit issued under this Section 2.3 and each draft accepted or paid
         under such a Letter of Credit shall be issued, accepted or paid, as the
         case may be, by the Letter of Credit Issuer at its principal office. No
         Letter of Credit shall provide for the payment of drafts drawn
         thereunder, and no draft shall be payable, at a date which is later
         than the earlier of (a) the date twelve months after the date of
         issuance or (b) 15 days prior to the Final Maturity Date with respect
         to the Working Capital Loans. Each Letter of Credit and each draft
         accepted under a Letter of Credit shall be in such form and minimum
         amount, and shall contain such terms, as the Letter of Credit Issuer
         and the Borrower may agree upon at the time such Letter of Credit is
         issued, including a requirement of not less than three Banking Days
         after presentation of a draft before payment must be made thereunder.

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<PAGE>

                  2.3.4    Banks' Participation in Letters of Credit. Upon the
         issuance of any Letter of Credit, a participation therein, in an amount
         equal to each Bank's Percentage Interest, shall automatically be deemed
         granted by the Letter of Credit Issuer to each Bank on the date of such
         issuance and the Banks shall automatically be obligated, as set forth
         in Section 10.4, to reimburse the Letter of Credit Issuer to the extent
         of their respective Percentage Interests for all obligations incurred
         by the Letter of Credit Issuer to third parties in respect of such
         Letter of Credit not reimbursed by the Borrower. The Letter of Credit
         Issuer will send to each Bank (and the Administrative Agent if the
         Letter of Credit Issuer is not the Administrative Agent) a confirmation
         regarding the participations in Letters of Credit outstanding during
         such month.

                  2.3.5    Presentation. The Letter of Credit Issuer may accept
         or pay any draft presented to it, regardless of when drawn and whether
         or not negotiated, if such draft, the other required documents and any
         transmittal advice are presented to the Letter of Credit Issuer and
         dated on or before the expiration date of the Letter of Credit under
         which such draft is drawn. Except insofar as instructions actually
         received may be given by the Borrower in writing expressly to the
         contrary with regard to, and prior to, the Letter of Credit Issuer's
         issuance of any Letter of Credit for the account of the Borrower and
         such contrary instructions are reflected in such Letter of Credit, to
         the maximum extent permitted by law the Letter of Credit Issuer may
         honor as complying with the terms of the Letter of Credit and with this
         Agreement any drafts or other documents otherwise in order signed or
         issued by an administrator, executor, conservator, trustee in
         bankruptcy, debtor in possession, assignee for benefit of creditors,
         liquidator, receiver or other legal representative of the party
         authorized under such Letter of Credit to draw or issue such drafts or
         other documents.

                  2.3.6    Payment of Drafts. At such time as a Letter of Credit
         Issuer makes any payment on a draft presented or accepted under a
         Letter of Credit, the Borrower will on demand pay to such Letter of
         Credit Issuer in immediately available funds the amount of such
         payment. Unless the Borrower shall otherwise pay to the Letter of
         Credit Issuer the amount required by the foregoing sentence, such
         amount shall be considered a loan under Section 2.2.1 and part of the
         Working Capital Loan.

                  2.3.7    Uniform Customs and Practice. The Uniform Customs and
         Practice for Documentary Credits (1993 Revision), International Chamber
         of Commerce Publication No. 500, and any subsequent revisions thereof
         approved by a Congress of the International Chamber of Commerce and
         adhered to by the Letter of Credit Issuer (the "Uniform Customs and
         Practice"), shall be binding on the Borrower and the Letter of Credit
         Issuer except to the extent otherwise provided herein, in any Letter of
         Credit or in any other Loan Document. Anything in the Uniform Customs
         and Practice to the contrary notwithstanding:

                           (a)      Neither the Borrower nor any beneficiary of
                  any Letter of Credit shall be deemed an agent of any Letter of
                  Credit Issuer.

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<PAGE>

                           (b)      With respect to each Letter of Credit,
                  neither any Letter of Credit Issuer nor its correspondents
                  shall be responsible, except to the extent required by law,
                  for or shall have any duty to ascertain:

                                    (i)      the genuineness of any signature;

                                    (ii)     the validity, form, sufficiency,
                           accuracy, genuineness or legal effect of any
                           endorsements;

                                    (iii)    delay in giving, or failure to
                           give, notice of arrival, notice of refusal of
                           documents or of discrepancies in respect of which any
                           Letter of Credit Issuer refuses the documents or any
                           other notice, demand or protest;

                                    (iv)     the performance by any beneficiary
                           under any Letter of Credit of such beneficiary's
                           obligations to the Borrower;

                                    (v)      inaccuracy in any notice received
                           by the Letter of Credit Issuer;

                                    (vi)     the validity, form, sufficiency,
                           accuracy, genuineness or legal effect of any
                           instrument, draft, certificate or other document
                           required by such Letter of Credit to be presented
                           before payment of a draft, or the office held by or
                           the authority of any Person signing any of the same;
                           or

                                    (vii)    failure of any instrument to bear
                           any reference or adequate reference to such Letter of
                           Credit, or failure of any Person to note the amount
                           of any instrument on the reverse of such Letter of
                           Credit or to surrender such Letter of Credit or to
                           forward documents in the manner required by such
                           Letter of Credit.

                           (c)      Except as otherwise required by law, the
                  occurrence of any of the events referred to in the Uniform
                  Customs and Practice or in the preceding clauses of this
                  Section 2.3.7 shall not affect or prevent the vesting of any
                  of the Letter of Credit Issuer's rights or powers hereunder or
                  the Borrower's obligation to make reimbursement of amounts
                  paid under any Letter of Credit or any draft accepted
                  thereunder.

                           (d)      The Borrower will promptly examine (i) each
                  Letter of Credit (and any amendments thereof) sent to it by a
                  Letter of Credit Issuer and (ii) all instruments and documents
                  delivered to it from time to time by such Letter of Credit
                  Issuer. The Borrower will notify the Letter of Credit Issuer
                  of any claim of noncompliance by notice actually received
                  within three Banking Days after receipt of any of the
                  foregoing documents, the Borrower being conclusively deemed to
                  have waived any such claim against such Letter of Credit
                  Issuer and its correspondents unless such notice is given. The
                  Letter of Credit Issuer shall have

                                       34

<PAGE>

                  no obligation or responsibility to send any such Letter of
                  Credit or any such instrument or document to the Borrower.

                           (e)      In the event of any conflict between the
                  provisions of this Agreement and the Uniform Customs and
                  Practice and Article 5 of the Uniform Commercial Code, the
                  provisions of this Agreement shall govern to the maximum
                  extent permitted by applicable law.

                  2.3.8    Subrogation. Subject to the terms of the
         Intercreditor Agreement, upon any payment by a Letter of Credit Issuer
         under any Letter of Credit and until the reimbursement of such Letter
         of Credit Issuer by the Borrower with respect to such payment, the
         Letter of Credit Issuer shall be entitled to be subrogated to, and to
         acquire and retain, the rights which the Person to whom such payment is
         made may have against the Borrower, all for the benefit of the Banks.
         Subject to the terms of the Intercreditor Agreement, the Borrower will
         take such action as the Letter of Credit Issuer may reasonably request,
         including requiring the beneficiary of any Letter of Credit to execute
         such documents as the Letter of Credit Issuer may reasonably request,
         to assure and confirm to the Letter of Credit Issuer such subrogation
         and such rights, including the rights, if any, of the beneficiary to
         whom such payment is made in accounts receivable, inventory and other
         properties and assets of the Borrower.

                  2.3.9    Modification, Consent, etc. If the Borrower requests
         or consents in writing to any modification or extension of any Letter
         of Credit, or waives any failure of any draft, certificate or other
         document to comply with the terms of such Letter of Credit, and if the
         Letter of Credit Issuer consents thereto, the Letter of Credit Issuer
         shall be entitled to rely on such request, consent or waiver. This
         Agreement shall be binding upon the Borrower with respect to such
         Letter of Credit as so modified or extended, and with respect to any
         action taken or omitted by such Letter of Credit Issuer pursuant to any
         such request, consent or waiver.

         2.4      Application of Proceeds.

                  2.4.1    Acquisition Loan. The Borrower will apply the
         proceeds of the Acquisition Loan solely to finance acquisitions
         permitted pursuant to Section 2.1 and to finance capital expenditures
         for additions or improvements to the assets of the Borrower (as
         distinguished from maintenance capital expenditures).

                  2.4.2    Working Capital Loan. The Borrower will apply the
         proceeds of the Working Capital Loan for working capital and other
         lawful purposes of the Borrower and its Subsidiaries; provided,
         however, that at no time shall more than $500,000 of the outstanding
         principal amount of the Working Capital Loan have been applied to the
         purposes of financing acquisitions permitted pursuant to Section 2.1
         and/or capital expenditures for additions or improvements to the Assets
         of the Borrower (as distinguished from maintenance capital
         expenditures).

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<PAGE>

                  2.4.3    Letters of Credit. Letters of Credit shall be issued
         only for lawful purposes of the Borrower and its Subsidiaries.

                  2.4.4    Specifically Prohibited Applications. The Borrower
         will not, directly or indirectly, apply any part of the proceeds of any
         extension of credit made pursuant to the Loan Documents to purchase or
         to carry Margin Stock or to any transaction prohibited by the Foreign
         Trade Regulations, by other Bank Legal Requirements of applicable to
         the Banks or by the Loan Documents.

         2.5      Nature of Obligations of Banks to Make Extensions of Credit.
The Banks' obligations to extend credit under this Agreement, including without
limitation, to refinance the credit facilities previously governed by the
Existing Credit Agreement, are several and are not joint or joint and several.
If on the date any Loans are to be made, any Bank shall fail to perform its
obligations under this Agreement, the aggregate amount of Commitments to make
the extensions of credit under this Agreement shall be reduced by the amount of
unborrowed Commitments of the Bank so failing to perform and the Percentage
Interests shall be appropriately adjusted. Banks that have not failed to perform
their obligations to make the extensions of credit contemplated by Section 2
may, if any such Bank so desires, assume, in such proportions as such Banks may
agree, the obligations of any Bank who has so failed and the Percentage
Interests shall be appropriately adjusted. The provisions of this Section 2.5
shall not affect the rights of the Borrower against any Bank failing to perform
its obligations hereunder.

                                   ARTICLE III

                   INTEREST; EURODOLLAR PRICING OPTIONS; FEES

         3.1      Interest. Each Loan shall accrue and bear interest at a rate
per annum which shall at all times equal its Applicable Rate. Prior to any
stated or accelerated maturity of any Loan, the Borrower will, on the last day
of each month, commencing January 31, 2004, pay the accrued and unpaid interest
on the portion of such Loan which was not subject to a Eurodollar Pricing
Option. On the last day of each Eurodollar Interest Period or on any earlier
termination of any Eurodollar Pricing Option, the Borrower will pay the accrued
and unpaid interest on the portion of such Loan which was subject to the
Eurodollar Pricing Option which expired or terminated on such date. On the Final
Maturity Date or the earlier accelerated maturity of any Loan, the Borrower will
pay all accrued and unpaid interest on such Loan, including any accrued and
unpaid interest on any portion of such Loan which is subject to a Eurodollar
Pricing Option. Upon the occurrence and during the continuance of an Event of
Default, the Banks may require accrued interest to be payable on demand or at
regular intervals more frequent than each Payment Date. All payments of interest
hereunder shall be made to the Administrative Agent, for the account of each
Bank in accordance with such Bank's Percentage Interest.

         3.2      Eurodollar Pricing Options.

                  3.2.1    Election of Eurodollar Pricing Options. Subject to
         all of the terms and conditions hereof and so long as no Default
         exists, the Borrower may from time to time, by irrevocable notice to
         the Administrative Agent, actually received not less than two (2)

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<PAGE>

         Banking Days prior to the commencement of the Eurodollar Interest
         Period selected in such notice, elect to have such portion of a Loan as
         the Borrower may specify in such notice accrue and bear interest during
         the Eurodollar Interest Period so selected at the Applicable Rate
         computed on the basis of the Eurodollar Rate. No such election shall
         become effective:

                           (i)      if, prior to the commencement of any such
                  Eurodollar Interest Period, the Administrative Agent
                  determines that (i) the electing or granting of the Eurodollar
                  Pricing Option in question would violate a Bank Legal
                  Requirement, (ii) Eurodollar deposits in an amount comparable
                  to the principal amount of the Loan as to which such
                  Eurodollar Pricing Option has been elected and which have a
                  term corresponding to the proposed Eurodollar Interest Period
                  are not readily available in the inter-bank Eurodollar market,
                  or (iii) by reason of circumstances affecting the inter-bank
                  Eurodollar market, adequate and reasonable methods do not
                  exist for ascertaining the interest rate applicable to such
                  deposits for the proposed Eurodollar Interest Period; or

                           (ii)     if any Bank shall have advised the
                  Administrative Agent, by telephone or otherwise at or prior to
                  noon (Tulsa, Oklahoma time) on the Banking Day immediately
                  prior to the commencement of such proposed Eurodollar Interest
                  Period (and shall have subsequently confirmed in writing)
                  that, after reasonable efforts to determine the availability
                  of such Eurodollar deposits, such Bank reasonably anticipates
                  that Eurodollar deposits in an amount equal to the Percentage
                  Interest of such Bank in the portion of such Loan as to which
                  such Eurodollar Pricing Option has been elected and which have
                  a term corresponding to the Eurodollar Interest Period in
                  question will not be offered in the Eurodollar market to such
                  Bank at a rate of interest that does not exceed the
                  anticipated Eurodollar Basic Rate.

                  3.2.2    Notice to Banks and Borrower. The Administrative
         Agent, will promptly inform each Bank (by telephone or otherwise) of
         each notice received by it from the Borrower pursuant to Section 3.2.1
         and of the Eurodollar Interest Period specified in such notice. Upon
         determination by the Administrative Agent of the Eurodollar Rate for
         such Eurodollar Interest Period or in the event such election shall not
         become effective, the Administrative Agent, will promptly notify the
         Borrower and each Bank (by telephone or otherwise) of the Eurodollar
         Rate so determined or why such election did not become effective, as
         the case may be.

                  3.2.3    Selection of Eurodollar Interest Periods. Eurodollar
         Interest Periods shall be selected so that:

                           (i)      the minimum portion of a Loan subject to any
                  Eurodollar Pricing Option shall be $1,000,000 and in integral
                  multiple of $100,000 in excess thereof;

                           (ii)     no more than a total of fifteen (15)
                  Eurodollar Pricing Options shall be outstanding at any one
                  time with respect to the Loans;

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<PAGE>

                           (iii)    no Eurodollar Interest Period with respect
                  to any part of a Loan subject to a Eurodollar Pricing Option
                  shall expire later than its applicable Final Maturity Date.

                  3.2.4    Additional Interest. If any portion of a Loan subject
         to a Eurodollar Pricing Option is repaid, or any Eurodollar Pricing
         Option is terminated for any reason (including acceleration of
         maturity), on a date which is prior to the last Banking Day of the
         Eurodollar Interest Period applicable to such Eurodollar Pricing
         Option, the Borrower will pay to the Administrative Agent, for the
         account of each Bank in accordance with such Bank's Percentage
         Interest, in addition to any amounts of interest otherwise payable
         hereunder, an amount equal to the present value (calculated in
         accordance with this Section 3.2.4) of interest for the unexpired
         portion of such Eurodollar Interest Period on the portion of such Loan
         so repaid, or as to which a Eurodollar Pricing Option was so
         terminated, at a per annum rate equal to the excess, if any, of (a) the
         rate applicable to such Eurodollar Pricing Option minus, (b) the lowest
         rate of interest obtainable by the Administrative Agent upon the
         purchase of debt securities customarily issued by the Treasury of the
         United States of America which have a maturity date approximating the
         last Banking Day of such Eurodollar Interest Period. The present value
         of such additional interest shall be calculated by discounting the
         amount of such interest for each day in the unexpired portion of such
         Eurodollar Interest Period from such day to the date of such repayment
         or termination at a per annum interest rate equal to the interest rate
         determined pursuant to clause (b) of the preceding sentence, and by
         adding all such amounts for all such days during such period. The
         determination by the Administrative Agent of such amount of interest
         shall, in the absence of manifest error, be conclusive. For purposes of
         this Section 3.2.4, if any portion of a Loan which was to have been
         subject to a Eurodollar Pricing Option is not outstanding on the first
         day of the Eurodollar Interest Period applicable to such Eurodollar
         Pricing Option other than for reasons described in Section 3.2.1, the
         Borrower shall be deemed to have terminated such Eurodollar Pricing
         Option.

                  3.2.5    Violation of Bank Legal Requirements. If any Bank
         Legal Requirement shall prevent any Bank from funding or maintaining
         through the purchase of deposits in the interbank Eurodollar market any
         portion of a Loan subject to a Eurodollar Pricing Option or otherwise
         from giving effect to such Bank's obligations as contemplated by
         Section 3.2, (a) the Administrative Agent, may by notice to the
         Borrower terminate all of the affected Eurodollar Pricing Options, (b)
         the portion of such Loan subject to such terminated Eurodollar Pricing
         Options shall immediately bear interest thereafter at the Applicable
         Rate computed on the basis of the Base Rate and (c) the Borrower shall
         make any payment required by Section 3.2.4.

                  3.2.6    Funding Procedure. The Banks may fund any portion of
         a Loan subject to a Eurodollar Pricing Option out of any funds
         available to the Banks. Regardless of the source of the funds actually
         used by any of the Banks to fund any portion of such Loan subject to a
         Eurodollar Pricing Option, however, all amounts

                                       38

<PAGE>

         payable hereunder, including the interest rate applicable to any such
         portion of the Loan and the amounts payable under Sections 3.2.4, 3.5,
         3.6, 3.7 and 3.8, shall be computed as if each Bank had actually funded
         such Bank's Percentage Interest in such portion of such Loan through
         the purchase of deposits in such amount of the type by which the
         Eurodollar Basic Rate was determined with a maturity the same as the
         applicable Eurodollar Interest Period relating thereto and through the
         transfer of such deposits from an office of the Bank having the same
         location as the applicable Eurodollar Office to one of such Bank's
         offices in the United States of America.

         3.3      Commitment Fees.

                  3.3.1    Acquisition Financing Facility. In consideration of
         the Banks' Commitments to make the extensions of credit provided for in
         Section 2.1, while such commitments are outstanding, the Borrower will
         pay to the Administrative Agent, for the account of the Banks in
         accordance with the Banks' respective Percentage Interests, within five
         (5) Banking Days following the end of each fiscal quarter of the
         Borrower, an amount equal to interest computed at the rate per annum
         equal to the Applicable Commitment Fee Percentage multiplied by the
         amount by which (a) the average daily Maximum Amount of Acquisition
         Credit during the Margin Period or portion thereof ending on the last
         day of such fiscal quarter exceeded (b) the average daily Acquisition
         Loan during such Margin Period or portion thereof.

                  3.3.2    Working Capital Facility. In consideration of the
         Banks' commitments to make the extension of credit provided for in
         Section 2.2 while such commitments are outstanding, the Borrower will
         pay to the Administrative Agent, for the account of the Banks in
         accordance with the Banks' respective Percentage Interests, within five
         (5) Banking Days following the end of each fiscal quarter of the
         Borrower and on the Final Maturity Date with respect to the Working
         Capital Loan, an amount equal to interest computed at the rate per
         annum equal to the Applicable Commitment Fee Percentage multiplied by
         the amount by which (a) the average daily Maximum Amount of Working
         Capital Credit during the Margin Period or portion thereof ending on
         the last day of such fiscal quarter or Final Maturity Date exceeded (b)
         the average daily Working Capital Loan during such Margin Period or
         portion thereof.

         3.4      Letter of Credit Fees. The Borrower will pay to the
Administrative Agent, for the account of each of the Banks (including any Letter
of Credit Issuer), in accordance with the Banks' respective Percentage
Interests, on the last day of each Margin Period, a Letter of Credit fee equal
to the Applicable Margin for Eurodollar Loans in effect for such Margin Period
on the average daily Letter of Credit Exposure during such Margin Period;
together with an additional fee equal to 1/8% per annum on the Letter of Credit
Exposure shall be paid solely to the respective Letter of Credit Issuer. The
Borrower also will pay to each Letter of Credit Issuer customary service charges
and expenses for its services in connection with the Letters of Credit issued by
it at the times and in the amounts from time to time in effect in accordance
with its general rate structure, including fees and expenses relating to
issuance, amendment, negotiation, cancellation and similar operations.

                                       39

<PAGE>

         3.5      Reserve Requirements. If any Bank Legal Requirement shall (a)
impose, modify, increase or deem applicable any insurance assessment, reserve,
special deposit or similar requirement against any Funding Liability or the
Letters of Credit, (b) impose, modify, increase or deem applicable any other
requirement or condition with respect to any Funding Liability or the Letters of
Credit, or (c) change the basis of taxation of Funding Liabilities or payments
in respect of any Letter of Credit (other than changes in the rate of taxes
measured by the overall net income of such Bank) and the effect of any of the
foregoing shall be to increase the cost to any Bank of issuing, making, funding
or maintaining its respective Percentage Interest in any portion of a Loan
subject to a Eurodollar Pricing Option or any Letter of Credit, to reduce the
amounts received or receivable by such Bank under this Agreement or to require
such Bank to make any payment or forego any amounts otherwise payable to such
Bank under this Agreement, then, within 15 days after the receipt by the
Borrower of a certificate from such Bank setting forth why it is claiming
compensation under this Section 3.5 and computations (in reasonable detail) of
the amount thereof, the Borrower shall pay to the Administrative Agent, for the
account of such Bank such additional amounts as are specified by such Bank in
such certificate as sufficient to compensate such Bank for such increased cost
or such reduction, together with interest at the Overdue Reimbursement Rate on
such amount from the 15th day after receipt of such certificate until payment in
full thereof; provided, however, that the foregoing provisions shall not apply
to any Tax or to any reserves which are included in computing the Eurodollar
Reserve Rate. The determination by such Bank of the amount of such costs shall,
in the absence of manifest error, be conclusive.

         3.6      Taxes. All payments of the Credit Obligations shall be made
without set-off or counterclaim and free and clear of any deductions, including
deductions for Taxes, unless the Borrower is required by law to make such
deductions. If (a) any Bank shall be subject to any Tax with respect to any
payment of the Credit Obligations or its obligations hereunder or (b) the
Borrower shall be required to withhold or deduct any Tax on any payment on the
Credit Obligations, within 15 days after the receipt by the Borrower of a
certificate from such Bank setting forth why it is claiming compensation under
this Section 3.6 and computations (in reasonable detail) of the amount thereof,
the Borrower shall pay to the Administrative Agent, for such Bank's account such
additional amount as is necessary to enable such Bank to receive the amount of
Tax so imposed on the Bank's obligations hereunder or the full amount of all
payments which it would have received on the Credit Obligations (including
amounts required to be paid under Sections 3.5, 3.7, 3.8 and this Section 3.6)
in the absence of such Tax, as the case may be, together with interest at the
Overdue Reimbursement Rate on such amount from the 15th day after receipt of
such certificate until payment in full thereof. Whenever Taxes must be withheld
by the Borrower with respect to any payments of the Credit Obligations, the
Borrower shall promptly furnish to the Administrative Agent for the account of
the applicable Bank official receipts (to the extent that the relevant
governmental authority delivers such receipts) evidencing payment of any such
Taxes so withheld. If the Borrower fails to pay any such Taxes when due or fails
to remit to the Administrative Agent, for the account of the applicable Bank the
required receipts evidencing payment of any such Taxes so withheld or deducted,
the Borrower shall indemnify the affected Bank for any incremental Taxes and
interest or penalties that may become payable by such Bank as a result of any
such failure. The determination by such Bank of the amount of such Tax and the
basis therefor shall, in the absence of manifest error, be conclusive. The
Borrower shall be entitled to replace any such Bank in accordance with Section
11.3.

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<PAGE>

         3.7      Capital Adequacy. If any Bank shall determine that compliance
by such Bank with any Bank Legal Requirement regarding capital adequacy of banks
or bank holding companies has or would have the effect of reducing the rate of
return on the capital of such Bank and its Affiliates as a consequence of such
Bank's commitment to make the extensions of credit contemplated hereby, or such
Bank's maintenance of the extensions of credit contemplated hereby, to a level
below that which such Bank could have achieved but for such compliance (taking
into consideration the policies of such Bank and its Affiliates with respect to
capital adequacy immediately before such compliance and assuming that the
capital of such Bank and its Affiliates was fully utilized prior to such
compliance) by an amount deemed by such Bank to be material, then, within 15
days after the receipt by the Borrower of a certificate from such Bank setting
forth why it is claiming compensation under this Section 3.7 and computations
(in reasonable detail) of the amount thereof, the Borrower shall pay to the
Administrative Agent, for the account of such Bank such additional amounts as
shall be sufficient to compensate such Bank for such reduced return, together
with interest at the Overdue Reimbursement Rate on each such amount from the
15th day after receipt of such certificate until payment in full thereof. The
determination by such Bank of the amount to be paid to it and the basis for
computation thereof shall, in the absence of manifest error, be conclusive. In
determining such amount, such Bank may use any reasonable averaging, allocation
and attribution methods. The Borrower shall be entitled to replace any such Bank
in accordance with Section 11.3.

         3.8      Regulatory Changes. If any Bank shall determine that (a) any
change in any Bank Legal Requirement (including any new Bank Legal Requirement)
after the date hereof shall directly or indirectly (i) reduce the amount of any
sum received or receivable by such Bank with respect to a Loan or the Letters of
Credit or the return to be earned by such Bank on such Loan or the Letters of
Credit, (ii) impose a cost on such Bank or any Affiliate of such Bank that is
attributable to the making or maintaining of, or such Bank's commitment to make,
its portion of such Loan or the Letters of Credit, or (iii) require such Bank or
any Affiliate of such Bank to make any payment on, or calculated by reference
to, the gross amount of any amount received by such Bank under any Credit
Document, and (b) such reduction, increased cost or payment shall not be fully
compensated for by an adjustment in the Applicable Rate or the Letter of Credit
fees, then, within 15 days after the receipt by the Borrower of a certificate
from such Bank setting forth why it is claiming compensation under this Section
3.8 and computations (in reasonable detail) of the amount thereof, the Borrower
shall pay to such Bank such additional amounts as such Bank determines will,
together with any adjustment in the Applicable Rate, fully compensate for such
reduction, increased cost or payment, together with interest on such amount from
the 15th day after receipt of such certificate until payment in full thereof at
the Overdue Reimbursement Rate. The determination by such Bank of the amount to
be paid to it and the basis for computation thereof hereunder shall, in the
absence of manifest error, be conclusive. In determining such amount, such Bank
may use any reasonable averaging and attribution methods.

         3.9      Computations of Interest and Fees. For purposes of this
Agreement, interest, commitment fees and Letter of Credit fees (and any other
amount expressed as interest or such fees) shall be computed on the basis of a
360-day year for actual days elapsed. If any payment required by this Agreement
becomes due on any day that is not a Banking Day, such payment shall, except as
otherwise provided in the Eurodollar Interest Period, be made on the next

                                       41

<PAGE>

succeeding Banking Day. If the due date for any payment of principal is extended
as a result of the immediately preceding sentence, interest shall be payable for
the time during which payment is extended at the Applicable Rate, and any letter
of credit fees payable pursuant to Section 3.4 shall be payable for the full
number of days such applicable Letter of Credit is outstanding.

         3.10     Loan Fees. Concurrent with the Closing Date, the Borrower
shall pay to each Bank in immediately available funds a non-refundable and fully
earned loan fee in an amount equal to 0.35% (35 basis points) of the aggregate
amount of each such Bank's Commitments issued pursuant to this Agreement.

         3.11     Administrative Agent's Fees. The Borrower shall pay to the
Administrative Agent, for the Administrative Agent's own account, an annual fee
in the amount of $25,000, payable quarterly (in the amount of $6,250) in arrears
following the close of each calendar quarter by the Administrative Agent's debit
to Borrower's operating account, concerning which quarterly debit therefrom
Borrower hereby authorizes the Administrative Agent to automatically effect
without the necessity of any further or other approval from the Borrower.

                                   ARTICLE IV

                                     PAYMENT

         4.1      Payment at Maturity. On the Final Maturity Date with respect
to each tranche or any accelerated maturity of such Loan, the Borrower will pay
to the Administrative Agent, for the account of the Banks an amount equal to the
remaining aggregate principal amount of such Tranche then outstanding, together
with all accrued and unpaid interest thereon and all other Credit Obligations
then outstanding.

         4.2      Contingent Required Prepayments.

                  4.2.1    Excess Credit Exposure. If at any time the
         Acquisition Loan or the Working Capital Loan exceeds the limit set
         forth in Section 2.1.2 or 2.2.2, respectively, the Borrower shall
         within three Banking Days pay the amount of such excess to the
         Administrative Agent, for the account of the Banks.

                  4.2.2    Letter of Credit Exposure. If at any time the Letter
         of Credit Exposure exceeds the limit set forth in Section 2.3.1, the
         Borrower shall cash-collateralize such excess within three (3) Banking
         Days by paying the amount of such excess to the Administrative Agent,
         for the account of the Banks to be applied as provided in Section 4.5.

                  4.2.3    Contingent Prepayments on Disposition, Loss of
         Assets, Merger or Change of Control.

                           (i)      If at any time the Borrower or any of its
                  Subsidiaries disposes of assets or issues or sells Capital
                  Stock of any Subsidiary with the result that there are Excess
                  Sale

                                       42

<PAGE>

                  Proceeds, and the Borrower does not apply such Excess Sale
                  Proceeds in the manner described in Section
                  7B.7(iii)(c)(ii)(x), the Borrower will prepay (at the price of
                  the principal amount prepaid plus accrued interest thereon and
                  any amount owing with respect thereto under Section 3.2.4 and
                  upon notice as provided in Section 4.2.4) a principal amount
                  of the outstanding Acquisition Notes equal to the Allocable
                  Proceeds.

                           (ii)     In the event of any damage to, or
                  destruction, condemnation or other taking of, all or any
                  portion of the properties or assets of the Borrower or any of
                  its Subsidiaries, to the extent that the Borrower or any such
                  Subsidiary receives insurance or condemnation proceeds with
                  the result that Unutilized Taking Proceeds exceed $2,500,000
                  in respect of any fiscal year (such excess amount being herein
                  called "Excess Taking Proceeds"), the Borrower will prepay (at
                  the price of the principal amount prepaid plus accrued
                  interest thereon and any amount owing with respect thereto
                  under Section 3.2.4 and upon notice as provided in Section
                  4.2.4) a principal amount of the outstanding Acquisition Notes
                  equal to the Allocable Proceeds.

                           (iii)    (a) If at any time any Responsible Officer
                  has knowledge of the occurrence of any Control Event, the
                  Borrower will give notice as provided in Section 4.4 of such
                  Control Event to the Administrative Agent. Upon the occurrence
                  of a Control Event, the Borrower will not take any voluntary
                  action that consummates or finalizes the Control Event
                  resulting from such Control Event unless contemporaneously
                  with such action, the Borrower prepays all Notes in accordance
                  with this Section 4.2.3(iii) and upon notice as provided in
                  Section 4.2.4 at the price of the principal amount thereof
                  plus accrued interest thereon and any amount owing with
                  respect thereto under Section 3.2.4.

                           (b)      The obligation of the Borrower to prepay
                  Acquisition Notes pursuant to the offer required by paragraph
                  (a) of this clause (iii) and accepted in accordance with
                  Section 4.2.4 is subject to the consummation of the Control
                  Event in respect of which any such offer and acceptance shall
                  have been made. In the event that such Control Event does not
                  occur on or before the proposed prepayment date in respect
                  thereof, the prepayment shall be deferred until and shall be
                  made on the date on which such Control Event occurs. The
                  Borrower shall keep the Administrative Agent reasonably and
                  timely informed of (i) any such deferral of the date of
                  prepayment, (ii) the date on which such Control Event and the
                  prepayment are expected to occur, and (iii) any determination
                  by the Borrower that efforts to effect such resulting Control
                  Event have ceased or been abandoned (in which case the
                  Borrower shall have no further obligation hereunder to prepay
                  the Acquisition Notes in respect of such Control Event).

                  4.2.4    Prepayment Procedure for Contingent Prepayments.

                           (i)      If at any time there are unapplied Excess
                  Sale Proceeds or Excess Taking Proceeds (such unapplied
                  amounts being "Excess Proceeds"), and the Borrower is required
                  to prepay the Acquisition Notes with such Excess Proceeds

                                       43
<PAGE>

                  pursuant to clause (i) or (ii) of Section 4.2.3, the Borrower
                  will give written notice as provided in Section 12.1 (which
                  shall be in the form of an Officers' Certificate) to the Banks
                  not later than twelve months after the date of the applicable
                  Asset Sale or the end of the twelve month period following
                  receipt of the applicable Unutilized Taking Proceeds, as the
                  case may be, and (a) setting forth in reasonable detail all
                  calculations required to determine the amount of Excess
                  Proceeds, (b) setting forth the aggregate amount of the
                  Allocable Proceeds and the amount of the Allocable Proceeds
                  which is allocable to each Acquisition Note, determined by
                  applying the Allocable Proceeds pro rata among all Acquisition
                  Notes outstanding on the date such prepayment is to be made
                  according to the aggregate then unpaid amounts of the
                  Acquisition Notes, and in reasonable detail the calculations
                  used in determining such amounts, and (c) stating that the
                  Borrower will prepay on the date specified in such notice,
                  which shall not be less than 25 nor more than 45 days after
                  the date of such notice, a principal amount of each
                  outstanding Acquisition Note equal to the amount of Allocable
                  Proceeds allocated to such Acquisition Note as described in
                  clause (b) above.

                           (ii)     If at any time the Borrower is required to
                  prepay the Notes following the occurrence of a Control Event,
                  the Borrower will give written notice as provided in Section
                  12.1 (which shall be in the form of an Officer's Certificate)
                  to the Banks not later than five Business Days following such
                  Control Event, (a) setting forth in reasonable detail the
                  facts and circumstances underlying such Control Event known to
                  it, and (b) stating that the Borrower will prepay on the date
                  the Control Event occurs.

         4.3      Scheduled Required Payments.

                  4.3.1    Acquisition Loan. On the Final Maturity Date, the
         Borrower shall pay all outstanding principal of the Acquisition Loan.

                  4.3.2    Working Capital Loan. The Borrower shall (i) prepay
         the Working Capital Loan when necessary to comply with the Annual
         Clean-Up requirement set forth in Section 2.2.2, and (ii) on the Final
         Maturity Date, pay all outstanding principal of the Working Capital
         Loan.

         4.4      Voluntary Prepayments. In addition to the prepayments required
by Sections 4.2 and 4.3, the Borrower may from time to time prepay all or any
portion of the Loans (in a minimum amount of $50,000 and an integral multiple of
$50,000), without premium or penalty of any type (except as provided in Section
3.2.4 with respect to the early termination of Eurodollar Pricing Options). The
Borrower shall give the Administrative Agent at least one Banking Day prior
notice of its intention to prepay, specifying the date of payment, the total
amount of the Loans to be paid on such date and the amount of interest to be
paid with such prepayment.

                                       44
<PAGE>

         4.5      Letters of Credit. If at the time of any Event of Default or
on the stated or any accelerated maturity of the Credit Obligations the Banks
shall be obligated in respect of a Letter of Credit or a draft accepted under a
Letter of Credit, the Borrower immediately will either:

                  (a)      prepay such obligation by depositing with the
         Administrative Agent, an amount of cash sufficient to
         cash-collateralize such Letter of Credit Exposure, or

                  (b)      deliver to the Administrative Agent, a standby letter
         of credit (designating such Administrative Agent as beneficiary and
         issued by a bank and on terms reasonably acceptable to such
         Administrative Agent),

in each case in an amount equal to the portion of the then Letter of Credit
Exposure issued for the account of the Borrower. Any such cash so deposited and
the cash proceeds of any draw under any standby letter of credit so furnished,
including any interest thereon, shall be returned by such Administrative Agent
to the Borrower only when, and to the extent that, the amount of such cash held
by such Administrative Agent exceeds the Letter of Credit Exposure at a time
when no Default exists; provided, however, that if an Event of Default occurs
and the Credit Obligations become or are declared immediately due and payable,
such Administrative Agent may apply such cash, including any interest thereon,
to the payment of any of the Credit Obligations as provided in the Intercreditor
Agreement.

         4.6      Reborrowing Application of Payments.

                  4.6.1    Reborrowing. The amounts of the Acquisition Loan and
         the Working Capital Loan prepaid pursuant to Section 4.2.1, 4.3.2 or
         4.4 may be reborrowed from time to time, in the case of the Acquisition
         Loan in accordance with Section 2.1 and in the case of the Working
         Capital Loan prior to its Final Maturity Date, in accordance with
         Section 2.2 and subject to the limits set forth therein.

                  4.6.2    Order of Application. Each prepayment of the Loan
         made pursuant to Section 4.2.1 shall be applied to the Working Capital
         Loan or the Acquisition Loan, as appropriate. Each prepayment of the
         Loan made pursuant to Section 4.2.3(i) or (ii) shall be applied to the
         Acquisition Loan. Any amounts of the Acquisition Loan prepaid pursuant
         to the preceding sentence may not be reborrowed.

                  4.6.3    Payment with Accrued Interest. Upon all prepayments
         of a Loan, the Borrower shall pay to the Administrative Agent, the
         principal amount to be prepaid, together with unpaid interest in
         respect thereof accrued to the date of prepayment and any amount owing
         with respect thereto under Section 3.2.4. Notice of prepayment having
         been given in accordance with Section 4.4, and whether or not notice is
         given of prepayments pursuant to Sections 4.2 and 4.3, the amount
         specified to be prepaid shall become due and payable on the date
         specified for prepayment.

                  4.6.4    Payments for Banks. All payments of principal
         hereunder shall be made to the Administrative Agent, for the account of
         the Banks in accordance with the Banks' respective Percentage
         Interests.

                                       45
<PAGE>

                                    ARTICLE V

                                    SECURITY

         5.1      Collateral. The repayment of the Indebtedness shall be secured
by the Collateral as more particularly described and defined in the Security
Documents previously executed and delivered pursuant to the terms, provisions
and conditions of the Existing Credit Agreement, the Liens and priorities
thereof which shall continue in full force and effect without any interruption
thereof whatsoever subject to the Intercreditor Agreement.

         The Borrower hereby acknowledges that all of the Collateral is granted
as security for the repayment of all Obligations, including as evidenced by the
Notes, the Private Placement Notes and the notes, if any, evidencing other
Parity Debt. The Liens granted, created and perfected (including the priorities
thereof subject to the Intercreditor Agreement) by virtue of the Existing Credit
Agreement and the Security Documents therein described and defined are hereby
ratified, confirmed and continued without interruption and re-granted by the
Borrower in favor of the Collateral Agent in all respects as continuing security
for the Obligations, including as evidenced by the Notes, the Private Placement
Notes and the notes, if any, evidencing other Parity Debt subject to the terms
and provisions of the Intercreditor Agreement. If one or more of such Notes,
Private Placement Notes or other Parity Debt notes are paid in full or
satisfied, but any portion of the Indebtedness evidenced by such note remains
unsatisfied, the Collateral Agent may retain its security interest in all of the
Collateral on behalf of the Secured Parties described therein until the
remaining Indebtedness secured thereby is paid in full, even if the value of the
Collateral far exceeds the amount of such outstanding Indebtedness secured
thereby.

         5.2      Intercreditor Agreement. The Banks and the Co-Agent hereby
authorize the Administrative Agent to execute and deliver such supplements,
amendments or modifications to the Intercreditor Agreement to the Collateral
Agent. Borrower confirms that any setoffs shared under the terms of the
Intercreditor Agreement (including without limitation Section 13(c) thereof)
with the Note Purchaser of the Private Placement Notes or the holders of any
Additional Parity Debt, to the extent of the portions so shared, will not be
deemed to pay down the Loan evidenced by the Notes.

                                   ARTICLE VI

                  CONDITIONS PRECEDENT AND SUBSEQUENT TO LOANS

         6.1      Conditions Precedent to Initial Working Capital Loan and
Initial Acquisition Loan. The obligation of the Banks to make the initial
Working Capital Loan and the initial Acquisition Loan is subject to the
satisfaction of all of the following conditions on or prior to the Closing Date
(in addition to the other terms and conditions set forth herein):

                  (i)      No Default. There shall exist no Event of Default,
         Noncompliance Event or Default on the Closing Date.

                                       46
<PAGE>

                  (ii)     Representations and Warranties. The representations,
         warranties and covenants set forth in Article VIII shall be true and
         correct on and as of the Closing Date, with the same effect as though
         made on and as of the Closing Date unless such representation or
         warranty relates only to an earlier date.

                  (iii)    Certificates. The Borrower shall have delivered or
         caused to be delivered to the Administrative Agent Certificates, dated
         as of the Closing Date, and signed by the President or Vice President
         and the Secretary of USPLLC and the General Partner, respectively,
         certifying (a) to the matters covered by the conditions specified in
         subsections (i) and (ii) of this Section 6.1, (b) that the Borrower and
         the Master Partnership have performed and complied with all agreements
         and conditions required to be performed or complied with by them prior
         to or on the Closing Date, (c) to the name and signature of each
         officer of USPLLC and the General Partner, respectively, authorized to
         execute and deliver the Loan Documents for and on behalf of the
         Borrower and any other documents, certificates or writings and to
         borrow under this Agreement, and (iv) to such other matters in
         connection with this Agreement which the Banks shall determine to be
         advisable. The Banks may conclusively rely on such Certificates until
         Agent receives notice in writing to the contrary.

                  (iv)     Proceedings. On or before the Closing Date, all
         partnership proceedings of the Borrower shall be taken in connection
         with the transactions contemplated by the Loan Documents and shall be
         satisfactory in form and substance to the Banks and Administrative
         Agent's counsel; and the Agents shall have received certified copies,
         in form and substance satisfactory to the Banks and Agents' counsel, of
         the partnership agreements and certificates of the Borrower and the
         Certificate of Limited Partnership Agreement of the General Partner and
         the Articles of Organization/Certificate of Formation and Operating
         Agreement of USPLLC, as adopted, authorizing the execution and delivery
         of the Loan Documents, the borrowings under this Agreement, and the
         ratification, confirmation and regranting of the security interests in
         the Collateral pursuant to the Security Agreement, to secure the
         payment of the Indebtedness.

                  (v)      Notes. The Borrower shall have delivered the Notes
         payable to the order of the respective Banks, to the Administrative
         Agent, in each case appropriately executed.

                  (vi)     Security Agreement. The Borrower shall have ratified
         and confirmed its delivery to the Collateral Agent of such supplement
         to amendment or restatement of the Security Agreement executed in
         connection with the Existing Credit Agreement, appropriately executed
         by the Borrower and Heritage, and dated as of the Closing Date,
         together with such financing statements (UCC or otherwise)
         (collectively, the "Financing Statements"), and other documents as
         shall be necessary and appropriate to continue the perfection of the
         Collateral Agent's security interests in the Collateral covered by said
         Security Agreement, including, without limitation, the Security
         Agreement, and such certificates representing shares of Capital Stock
         included in the Collateral and proper stock powers with respect thereto
         duly endorsed in blank (collectively, the "Certificates and Stock
         Powers").

                                       47
<PAGE>

                  (vii)    Opinions. The Agents shall have received from
         Borrower's counsel, (i) Doerner, Saunders, Daniel & Anderson, L.L.P., a
         favorable written closing opinion addressed to the Agents for the
         benefit of the Banks with respect to this Agreement, satisfactory in
         form and substance to the Administrative Agent's counsel including,
         without limitation, an opinion that all notices to or consents of the
         Collateral Agent or the Note Purchasers as required by the transactions
         contemplated by this Agreement have been duly obtained and are in full
         force and effect and (ii) a copy of the executed non-consolidation
         opinion of Winston & Strawn, L.L.P., addressed to the Note Purchasers
         listed on Schedule A attached thereto.

                  (viii)   UCC Releases/Other Information. The Administrative
         Agent shall have received a written payoff statement from any other
         secured party of record concerning any of the Collateral together with
         applicable UCC terminations of record of all such existing security
         interest liens pertaining to the Collateral or any part thereof.

                  (ix)     Other Information and Closing Documents. The
         Administrative Agent shall have received such other consents,
         information, documents, agreements and assurances as shall be
         reasonably requested by the Banks, including, without limitation,
         appropriate consents and approvals to the issuance of the Notes and the
         Commitments and the Intercreditor Agreement, as amended and modified,
         shall have been duly executed by all parties thereto and delivered to
         the Collateral Agent.

                  (x)      Assignments/Replacement of Banks. Each Departing Bank
         shall have surrendered its Notes to BOk, as Administrative Agent, and
         each of Bank One, Fifth Third, MidFirst and Arvest (as Banks not party
         signatories to the Existing Credit Agreement) and as applicable, the
         other Banks, shall have paid to such Administrative Agent in
         immediately available funds an amount equal to their respective
         Percentage Interest in the outstanding principal balance of such
         Departing Bank of the Loan assigned hereunder thereto by the Departing
         Bank, for concurrent remittance by the Administrative Agent to the
         Departing Bank.

                  (xi)     Co-Agent. U.S. Bank shall have submitted the
         resignation as Co-Agent and Bank One shall be named successor Co-Agent.

         6.2      Conditions Precedent to All Loans. The Banks shall not be
obligated to make any additional Loan advance(s) or to issue any Letters of
Credit after the Closing Date (i) if at such time any Event of Default or any
Noncompliance Event shall have occurred or any Default shall have occurred and
be continuing; or (ii) if any of the representations, warranties and covenants
contained in Article VIII of this Agreement shall be false or untrue in any
material respect on the date of such advance or issue, as if made on such date
(unless such representation or warranty relates only to an earlier date). Each
request by the Borrower for an additional Working Capital Loan or Acquisition
Loan shall constitute a representation by the Borrower that there is not at the
time of such request an Event of Default, a Noncompliance Event or a Default,
and that all representations, warranties and covenants in Article VIII of this
Agreement are true and correct on and as of the date of each such applicable
Loan request or request for a Letter of Credit.

                                       48
<PAGE>

                                   ARTICLE VII

                                    COVENANTS

         The Borrower hereby covenants and agrees with the Banks that, comply
with the terms and provisions of this Article VII.

         7A.      Affirmative Covenants.

                  7A.1     Financial Statements. The Borrower will maintain, and
         will cause each of its Subsidiaries to maintain, a system of accounting
         established and administered in accordance with GAAP. The Borrower
         covenants that it will deliver to each Bank:

                           (i)      as soon as practicable and in any event
                  within 50 days after the end of each quarterly period in each
                  fiscal year, (a) consolidated statements of income, partners'
                  capital and cash flows of the Borrower and its Subsidiaries
                  for such quarterly period and (in the case of the second,
                  third and fourth quarterly periods) for the period from the
                  beginning of the current fiscal year to the end of such
                  quarterly period, and consolidated balance sheets of the
                  Borrower and its Subsidiaries as at the end of such quarterly
                  period, setting forth in each case with respect to financial
                  statements delivered as of any date and for any period after
                  the Closing Date, in comparative form figures for the
                  corresponding period in the preceding fiscal year, all in
                  reasonable detail and satisfactory in form to the Required
                  Banks and certified by an authorized financial officer of the
                  Borrower as presenting fairly, in all material respects, the
                  information contained therein (except for the absence of
                  footnotes and subject to changes resulting from normal
                  year-end adjustments), in accordance with GAAP, and (b) a copy
                  of the Quarterly Report on Form 10-Q of the Master Partnership
                  for such quarterly period filed with the Commission;

                           (ii)     as soon as practicable and in any event
                  within 95 days after the end of each fiscal year, (a)
                  consolidated and consolidating statements of income and cash
                  flows and a consolidated and consolidating statement of
                  partners' capital (or stockholders' equity, as applicable) of
                  the Borrower and its Subsidiaries for such year, and
                  consolidated and consolidating balance sheets of the Borrower
                  and its Subsidiaries, as at the end of such year, setting
                  forth in each case with respect to financial statements
                  delivered as of any date and for any period after the Closing
                  Date, in comparative form corresponding consolidated and,
                  where applicable, consolidating figures from the preceding
                  annual audit, all in reasonable detail and, as to the
                  consolidated statements, reported on by Grant Thornton, LLP,
                  or other independent public accountants of recognized national
                  standing selected by the Borrower whose report shall be
                  without limitation as to the scope of the audit, (b)
                  consolidating statements of income and cash flows and a
                  consolidating statement of partners' capital (or stockholder
                  equity, as applicable) of the Master Partnership and its
                  Subsidiaries for such year and consolidated balance sheets of
                  the Master

                                       49
<PAGE>

                  Partnership and its Subsidiaries, as at the end of such year,
                  setting forth in each case, in comparative form corresponding
                  consolidated figures from the preceding annual audit, all in
                  reasonable detail and reported on by Grant Thornton LLP, or
                  other independent public accountants of recognized national
                  standing selected by the Master Partnership whose report shall
                  be without limitation as to the scope of the audit (provided
                  that such report shall not include within the scope of the
                  audit the consolidating statements required by clause (c));
                  provided, however, that at any time when the Master
                  Partnership shall be subject to the reporting requirements of
                  Section 13 or 15(d) of the Exchange Act, delivery within the
                  time period specified above of copies of the Annual Report on
                  Form 10-K of the Master Partnership for such fiscal year
                  prepared in compliance with the requirements therefor and
                  filed with the Commission shall be deemed to satisfy the
                  requirements of this clause (b) if all such statements
                  required to be delivered pursuant to this clause (b) with
                  respect to the Master Partnership and its Subsidiaries are
                  included in such Form 10-K, or (c) consolidating statements of
                  income and cash flows and a consolidating statement of
                  partners' capital (or stockholders' equity, as applicable) of
                  the Master Partnership and its Subsidiaries for such year,
                  certified by an authorized financial officer of the Master
                  Partnership as presenting fairly, in all material respects,
                  the information contained therein, in accordance with GAAP
                  (except for the absence of footnotes); provided, however, that
                  at any time when the Master Partnership shall be subject to
                  the reporting requirements of Section 13 or 15(d) of the
                  Exchange Act delivery within the time period specified above
                  of copies of the Annual Report on Form 10-K of the Master
                  Partnership for such fiscal year prepared in compliance with
                  the requirements therefor and filed with the Commission shall
                  be deemed to satisfy the requirements of this clause (c) if
                  all such statements required to be delivered pursuant to this
                  clause (c) with respect to the Master Partnership and its
                  Subsidiaries are included in such Form 10-K and such reports
                  are delivered separately by the Borrower together with such
                  Form 10-K and such reports;

                           (iii)    promptly upon receipt thereof by the
                  Borrower, copies of all reports submitted to the Borrower by
                  independent public accountants in connection with each
                  special, annual or interim audit of the books of the Borrower
                  or any Subsidiary thereof made by such accountants, including
                  without limitation the comment letter submitted by each such
                  accountant to management in connection with their annual
                  audit;

                           (iv)     promptly upon transmission thereof, copies
                  of (a) all financial statements, proxy statements, notices and
                  reports as the Borrower or the Master Partnership shall send
                  or make available to the public Unitholders of the Master
                  Partnership, (b) all registration statements (without
                  exhibits), all prospectuses and all reports which the Borrower
                  or the Master Partnership files with the Commission (or any
                  governmental body or agency succeeding to the functions of the
                  Commission), (c) all press releases and other similar written
                  statements made available by the Borrower or the Master
                  Partnership to the public concerning material developments in
                  the business of the Borrower or the Master Partnership,

                                       50
<PAGE>

                  as the case may be, and (d) all reports, notices and other
                  similar written statements sent or made available by the
                  Borrower or the Master Partnership to any holder of its
                  Indebtedness pursuant to the terms of any agreement, indenture
                  or other instrument evidencing such Indebtedness, including
                  without limitation the Credit Agreement, except to the extent
                  the same substantive information is already being provided
                  pursuant to this Section 7A.1;

                           (v)      as soon as reasonably practicable, and in
                  any event within 5 Business Days after a Responsible Officer
                  obtains knowledge that any Default or Event of Default has
                  occurred, a written statement of such Responsible Officer
                  setting forth details of such Default or Event of Default and
                  the action which the Borrower has taken, is taking and
                  proposes to take with respect thereto;

                           (vi)     as soon as reasonably practicable, and in
                  any event within 5 Business Days after a Responsible Officer
                  obtains knowledge of (a) the occurrence of an adverse
                  development with respect to any litigation or proceeding
                  involving the Borrower or any of its Subsidiaries which in the
                  reasonable judgment of the Borrower could reasonably be
                  expected to have a Material Adverse Effect or (b) the
                  commencement of any litigation or proceeding involving the
                  Borrower or any of its Subsidiaries which in the reasonable
                  judgment of the Borrower could reasonably be expected to have
                  a Material Adverse Effect, a written notice of such
                  Responsible Officer describing in reasonable detail such
                  commencement of, or adverse development with respect to, such
                  litigation or proceeding;

                           (vii)    as soon as possible after, and in any event
                  within 10 Business Days after any Responsible Officer of the
                  Borrower or any ERISA Affiliate knows or has reason to know
                  that, any ERISA Event has occurred or is expected to occur
                  that, alone or together with any other ERISA Events that have
                  occurred, in the opinion of the principal financial officer of
                  the Borrower could reasonably be expected to result in
                  liability of the Borrower in an aggregate amount exceeding
                  $2,000,000, a statement setting forth a detailed description
                  of such ERISA Event and the action, if any, that the Borrower
                  or any ERISA Affiliate has taken, is taking or proposes to
                  take or cause to be taken with respect thereto (together with
                  a copy of any notice, report or other written communication
                  filed with or given to or received from the PBGC, the Internal
                  Revenue Service or the Department of Labor with respect to
                  such event or condition);

                           (viii)   as soon as reasonably practicable, and in
                  any event within five Business Days after a Responsible
                  Officer obtains knowledge of a violation or alleged violation
                  of any Environmental Law or the presence or release of any
                  Hazardous Substance within, on, from, relating to or affecting
                  any property, which in the reasonable judgment of the Borrower
                  could reasonably be expected to have a Material Adverse
                  Effect, notice thereof, and upon request, copies of relevant
                  documentation;

                                       51
<PAGE>

                           (ix)     together with each delivery of financial
                  information pursuant to clause (i) or clause (ii) of this
                  Section 7A.1, a statement setting forth, together with
                  computations in reasonable detail, the amount of Available
                  Cash, Aggregate Available Cash and the Aggregate Partner
                  Obligations, together with a calculation of the Borrower's
                  Percentage of Aggregate Available Cash as of the date of the
                  balance sheet contained therein and the amounts of all Net
                  Proceeds, Excess Sale Proceeds, Unutilized Taking Proceeds and
                  Unused Proceeds Reserves held by the Borrower at the end of
                  the applicable quarterly period or fiscal year, as the case
                  may be;

                           (x)      as soon as reasonably practicable, and in
                  any event within 5 Business Days after a Responsible Officer
                  obtains knowledge that the holder of any Note has given any
                  notice to the Borrower or any Subsidiary thereof or taken any
                  other action with respect to a claimed Default or Event of
                  Default under this Agreement or any other Loan Documents, or
                  that any Person has given any notice to the Borrower or any
                  such Subsidiary or taken any other action with respect to a
                  claimed default or event or condition of the type referred to
                  in [Section 9.1A(iii), Event of Default] a written statement
                  of such Responsible Officer describing such notice or other
                  action in reasonable detail and the action which the Borrower
                  has taken, is taking and proposes to take with respect
                  thereto;

                           (xi)     prior to the Closing Date and within 45 days
                  after the end of each calendar year ending thereafter,
                  commencing with the year ending December 31, 2003, a report
                  prepared by the Borrower or its broker or agent (a) setting
                  forth the insurance maintained pursuant to Section 7A.8, and
                  including, without limitation, the amounts thereof, the names
                  of the insurers and the property, hazards and risks covered
                  thereby, and certifying that all premiums with respect to the
                  policies described in such report then due thereon have been
                  paid and that the same are in full force and effect, (b)
                  setting forth all self-insurance maintained by the Borrower
                  pursuant to Section 7A.8 and (c) certifying that such
                  insurance or self insurance complies with the requirements of
                  such Section 7A.8;

                           (xii)    with reasonable promptness, such other
                  information and data (financial or other) as from time to time
                  may be reasonably requested by any Bank; and

                           (xiii)   as soon as reasonably practicable, and in
                  any event within 5 Business Days after a Responsible Officer
                  obtains knowledge that the holder of any secured indebtedness
                  or other indebtedness has given any notice to La Grange or any
                  Subsidiary thereof or taken any other action with respect to a
                  claimed event of default or condition of the type referred to
                  in Section 9.1(xviii), a written statement of such Responsible
                  Officer describing, to the best knowledge of such Responsible
                  Officer, such notice or other action in reasonable detail and
                  the action which La Grange has taken, is taking and proposes
                  to take with respect thereto.

                                       52
<PAGE>

         Together with each delivery of financial statements required by clauses
         (i) and (ii) above, the Borrower will deliver to each holder of Notes
         an Officers' Certificate (I) stating that the signers have reviewed the
         terms of this Agreement and the other Loan Documents, and have made, or
         caused to be made under their supervision, a review in reasonable
         detail of the transactions and condition of the Borrower and its
         Subsidiaries during the accounting period covered by such financial
         statements, and that no Default or Event of Default has occurred and is
         continuing, or, if any such Default or Event of Default then exists,
         specifying the nature and approximate period of existence thereof and
         what action the Borrower has taken or is taking or proposes to take
         with respect thereto, (II) specifying the amount available at the end
         of such accounting period for Restricted Payments in compliance with
         Section 7B.6 and showing in reasonable detail all calculations required
         in arriving at such amount, (III) demonstrating (with computations in
         reasonable detail) compliance at the end of such accounting period by
         the Borrower and its Subsidiaries with the provisions of Sections 4.6,
         7B.1, 7B.2, 7B.3, 7B.4, 7B.5(v), 7B.7(i)(b), 7B.7(i)(c), 7B.7(iii) and
         7B.12, and (IV) if not specified in the related financial statements
         being delivered pursuant to clauses (i) and (ii) above, specifying the
         aggregate amount of interest paid or accrued by, and aggregate rental
         expenses of, the Borrower and its Subsidiaries, and the aggregate
         amount of depreciation, depletion and amortization charged on the books
         of the Borrower and its Subsidiaries, during the fiscal period covered
         by such financial statements.

                  Together with each delivery of financial statements required
         by clause (ii) above, the Borrower will deliver a certificate of such
         accountants stating that they have reviewed the terms of this Agreement
         and the other Loan Documents and that in making the audit necessary for
         their report on such financial statements, they have obtained no
         knowledge of any Event of Default or Default, or, if they have obtained
         knowledge of any Event of Default or Default, specifying the nature and
         period of existence thereof. Such accountants, however, shall not be
         liable to anyone by reason of their failure to obtain knowledge of any
         Event of Default or Default which would not be disclosed in the course
         of an audit conducted in accordance with generally accepted auditing
         standards.

                  7A.2     Inspection of Property. The Borrower will permit any
         Person designated in writing by the Administrative Agent or the
         Required Lenders, at the Borrower's expense during the continuance of a
         Default or Event of Default and otherwise at such holder's expense, to
         visit and inspect any of the properties of the Borrower and its
         Subsidiaries, to examine the corporate books and financial records of
         the Borrower and its Subsidiaries and make copies thereof or extracts
         therefrom and to discuss the affairs, finances and accounts of any of
         such partnerships or corporations with the principal officers of the
         Borrower and its independent public accountants, all at such reasonable
         times and as often as such holder may reasonably request. The Borrower
         hereby authorizes, and agrees to cause each of its Subsidiaries to
         authorize, its and their independent public accountants to discuss with
         such Person the affairs, finances and accounts of the Borrower and its
         Subsidiaries in accordance with this Section 7A.2.

                  7A.3     Covenant to Secure Notes Equally. If the Borrower or
         any of its Subsidiaries shall create or assume any Lien upon any of its
         property or assets, whether

                                       53
<PAGE>

         now owned or hereafter acquired, other than Liens permitted by the
         provisions of Sections 7B.3 and 7B.4 (unless prior written consent to
         the creation or assumption thereof shall have been obtained pursuant to
         Section 10.6), the Borrower will make or cause to be made effective
         provision whereby the Notes will be contemporaneously secured by such
         Lien equally and ratably with any and all other Indebtedness thereby
         secured so long as any such other Indebtedness shall be so secured
         (including, without limitation, the provision of any financial
         accommodations extended to the holders of such other Indebtedness in
         connection with the release of such Lien and/or the sale of any
         property subject thereto), it being understood that the provision of
         such equal and ratable security shall not constitute a cure or waiver
         of any related Event of Default.

                  7A.4     Partnership or Corporate Existence; Compliance with
                           Laws.

                           (i)      Except as otherwise expressly permitted in
                  accordance with Section 7B.7 or 7B.11, (a) the Borrower will
                  at all times preserve and keep in full force and effect its
                  partnership existence and its status as a partnership not
                  taxable as a corporation for U.S. federal income tax purposes,
                  (b) the Borrower will cause each of its Subsidiaries to keep
                  in full force and effect its partnership or corporate
                  existence, as the case may be, and (c) the Borrower will, and
                  will cause each of its Subsidiaries to, at all times preserve
                  and keep in full force and effect all of its material rights
                  and franchises; provided, however, that the partnership or
                  corporate existence of any Subsidiary, and any right or
                  franchise of the Borrower or any Subsidiary, may be terminated
                  notwithstanding this Section 7A.4 if such termination (x) is
                  in the best interest of the Borrower and the Subsidiaries, (y)
                  is not disadvantageous to the holders of the Notes in any
                  material respect and (z) could not reasonably be expected to
                  have a Material Adverse Effect.

                           (ii)     The Borrower will, and will cause each of
                  its Subsidiaries to, at all times comply with all laws,
                  regulations and statutes (including without limitation any
                  zoning or building ordinances or code or Environmental Laws)
                  applicable to it except for any failure to so comply which,
                  individually or in the aggregate, could not reasonably be
                  expected to have a Material Adverse Effect.

                           (iii)    The Borrower will notify the Bank a
                  reasonable time prior to the adoption of any amendment to the
                  Partnership Agreement, the Partnership Documents, the Note
                  Purchase Agreements or any Operative Agreement and will
                  include in that notice a reasonably detailed description of
                  such amendment and the intended effects thereof.

                  7A.5     Payment of Taxes and Claims. The Borrower will, and
         will cause each of its Subsidiaries to, pay all taxes, assessments and
         other governmental charges imposed upon it or any of its Subsidiaries,
         or any of its or its Subsidiaries' properties or assets or in respect
         of any of its or any of its Subsidiaries' franchises, business, income
         or profits when the same become due and payable, and all claims
         (including without limitation claims for labor, services, materials and
         supplies) for sums which have become due and payable and which by law
         have or might become a Lien upon any of its or any of its

                                       54
<PAGE>

         Subsidiaries' properties or assets; provided that no such tax,
         assessment, charge or claim need be paid if it is being contested in
         good faith by appropriate proceedings promptly initiated and diligently
         conducted and if such reserves or other appropriate provision, if any,
         as shall be required by GAAP shall have been made therefor and be
         adequate in the good faith judgment of the Board of Directors of the
         General Partner.

                  7A.6     Compliance with ERISA. The Borrower will, and will
         cause its Subsidiaries to, comply in all material respects with the
         provisions of ERISA and the Code applicable to the Borrower and its
         Subsidiaries and their respective employee benefit programs.

                  7A.7     Maintenance and Sufficiency of Properties.

                           (i)      The Borrower will maintain or cause to be
                  maintained in good repair, working order and condition,
                  ordinary wear and tear excepted, all properties used in the
                  business of the Borrower and its Subsidiaries and from time to
                  time will make or cause to be made all appropriate repairs,
                  renewals and replacements thereof, all to the extent necessary
                  to avoid a Material Adverse Effect.

                           (ii)     The Borrower will maintain and will cause to
                  be maintained as employees of the Borrower and its
                  Subsidiaries such number of individuals, having appropriate
                  skills, as may be necessary from time to time to sustain
                  continuous operation of the Business at the time. Except as
                  described on Schedule 8.8, the Borrower will continue and will
                  cause its Subsidiaries to continue to own or have valid rights
                  to use all of the Assets constituting personal or intellectual
                  property (including without limitation computer equipment,
                  computer software and other intellectual property) reasonably
                  necessary for the operation of the Business, in each case
                  subject to no Liens except such as are permitted by Section
                  7B.3.

                  7A.8     Insurance.

                           (i)      The Borrower will, and will cause its
                  Subsidiaries to, at its or their expense, at all times
                  maintain, or cause to be maintained, with financially sound
                  and reputable insurers, insurance with respect to their
                  properties and business with coverages comparable to those
                  generally carried by companies of similar size that conduct
                  the same or similar business and have similar properties in
                  the same general areas in which the Borrower conducts its
                  business; provided, however, that the Borrower may maintain a
                  system of self-insurance in an amount not exceeding an amount
                  as is customary for companies with established reputations
                  engaged in the same or similar business and owning and
                  operating similar properties.

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<PAGE>

                           (ii)     The Borrower will, and will cause each of
                  its Subsidiaries to, pay as and when the same become due and
                  payable the premiums for all insurance policies that the
                  Borrower and its Subsidiaries are required to maintain
                  hereunder.

                  7A.9     Environmental Laws. The Borrower will, and will cause
         each of its Subsidiaries to:

                           (i)      comply with all applicable Environmental
                  Laws and any permit, license, or approval required under any
                  Environmental Law, except for failures to so comply which
                  could not reasonably be expected to have a Material Adverse
                  Effect;

                           (ii)     store, use, release, or dispose of any
                  Hazardous Substance at any property owned or leased by the
                  Borrower or any of its Subsidiaries in a manner which could
                  not reasonably be expected to have a Material Adverse Effect;

                           (iii)    avoid committing any act or omission which
                  would cause any Lien to be asserted against any property owned
                  by the Borrower or any of its Subsidiaries pursuant to any
                  Environmental Law, except where such Lien could not reasonably
                  be expected to have a Material Adverse Effect;

                           (iv)     use, handle or store any propane in
                  compliance, in all material respects, with all applicable
                  laws.

                  7A.10    Operative Agreements. The Borrower will perform and
         comply with all of its obligations under each of the Operative
         Agreements to which it is a party, will enforce each such Operative
         Agreement against each other party thereto and will not accept the
         termination of any such Operative Agreement or any amendment or
         supplement thereof or modification or waiver thereunder, unless any
         such failure to perform, comply or enforce or any such acceptance could
         not, individually or in the aggregate, reasonably be expected to have a
         Material Adverse Effect.

                  7A.11    After-Acquired Property. From and after the date of
         the Closing, the Borrower will, and will cause each of its Subsidiaries
         to, execute and deliver such amendments to the Security Agreement,
         execute and deliver such instruments and agreements (including, without
         limitation, such Certificates and Stock Powers) and execute and cause
         to be duly recorded, published, registered or filed in the appropriate
         jurisdictions such Financing Statements, as shall be necessary to grant
         to the Collateral Agent a valid, perfected, first priority security
         interest, subject to Liens permitted by the Security Agreement in any
         asset acquired by the Borrower or any Subsidiary of the Borrower
         (including, without limitation, the Capital Stock of any Subsidiary)
         after the Closing, to the extent such asset would have been included in
         the Collateral granted at the Closing had the Borrower or one of its
         Subsidiaries owned such asset as of the Closing. The Borrower will pay
         or cause to be paid all taxes, fees and other governmental charges in
         connection with the execution, delivery, recording, publishing,
         registration and filing of such documents and instruments in such
         places.

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<PAGE>

                  7A.12    Further Assurances. At any time and from time to time
         promptly, the Borrower shall, at its expense, execute and deliver to
         each Bank and the Collateral Agent such instruments and documents, and
         take such further action, as the holders of the Notes may from time to
         time reasonably request, in order to further carry out the intent and
         purpose of this Agreement and the other Loan Documents and to
         establish, perfect, preserve and protect the rights, interests and
         remedies created, or intended to be created, in favor of the Banks, and
         including, without limitation, the execution and delivery of
         Certificates and the delivery of Stock Powers and the execution,
         delivery, recordation and filing of Financing Statements and
         continuation statements under the Uniform Commercial Code of any
         applicable jurisdiction, and the delivery of satisfactory opinions of
         counsel.

                  7A.13    Books and Accounts. The Borrower will, and will cause
         each of its Subsidiaries to, maintain proper books of record and
         account in which full, true and proper entries shall be made of its
         transactions and set aside on its books from its earnings for each
         fiscal year all such proper reserves as in each case shall be required
         in accordance with GAAP.

                  7A.14    Available Cash Reserves. The Borrower will maintain
         an amount of cash reserves that is necessary or appropriate in the
         reasonable discretion of the General Partner to (i) provide for the
         proper conduct of the business of the Borrower and its Subsidiaries
         (including reserves for future capital expenditures) subsequent to such
         quarter, (ii) comply with applicable law or any loan agreement,
         security agreement, mortgage, debt instrument or other agreement or
         obligation to which the Borrower or any Subsidiary is a party or by
         which it is bound or its assets are subject (including the Loan
         Documents) and (iii) provide funds for distributions to partners of the
         Master Partnership and the General Partner in respect of any one or
         more of the next four quarters; provided that the General Partner need
         not establish cash reserves pursuant to clause (iii) if the effect of
         such reserves would be that the Master Partnership is unable to
         distribute the Minimum Quarterly Distribution (as defined in the
         Agreement of Limited Partnership of the Master Partnership) on all
         Common Units with respect to such quarter; and provided, further, that
         disbursements made by the Borrower or a Subsidiary of the Borrower or
         cash reserves established, increased or reduced after the end of such
         quarter but on or before the date of determination of Available Cash
         with respect to such quarter shall be deemed to have been made,
         established, increased or reduced for purposes of determining Available
         Cash, within such quarter if the General Partner so determines. In
         addition, without limiting the foregoing, Available Cash for any fiscal
         quarter shall reflect cash reserves equal to (x) 50% of the interest
         projected to be paid on the Private Placement Notes in the next
         succeeding fiscal quarter, plus (y) beginning with a date three fiscal
         quarters before a scheduled principal payment date on the Private
         Placement Notes, 25% of the aggregate principal amount thereof due on
         any such payment date in the third succeeding fiscal quarter, 50% of
         the aggregate principal amount due on any such payment date in the
         second succeeding fiscal quarter and 75% of the aggregate principal
         amount due on any quarterly payment date in the next succeeding fiscal
         quarter, plus (z) the Unused Proceeds Reserve as of the date of
         determination; provided that the foregoing

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<PAGE>

         reserves for amounts to be paid on the Private Placement Notes shall be
         reduced by the aggregate amount of advances available to the Borrower
         from responsible financial institutions under binding, irrevocable (a)
         credit or financing commitments (which are subject to no conditions
         which the Borrower is unable to meet) and (b) letters of credit (which
         are subject to no conditions which the Borrower is unable to meet), in
         each case to be used to refinance such amounts to the extent such
         amounts could be borrowed and remain outstanding under Sections
         7B.2(ii) and 7B.2(iii).

                  7A.15    Parity Debt.

                           (i)      The Borrower shall ensure that the lenders
                  from time to time in respect of any outstanding Parity Debt
                  shall, in the documents governing the terms of such
                  Indebtedness, (a) recognize the existence and validity of the
                  obligations represented by the Notes and (b) agree to refrain
                  from making or asserting any claim that the Loan Documents or
                  the obligations represented by the Notes are invalid or not
                  enforceable in accordance with its and their terms as a result
                  of the circumstances surrounding the incurrence of such
                  obligations.

                           (ii)     Each Bank and each other Person that becomes
                  a Bank, as evidenced by its acceptance of its Notes, (a)
                  acknowledges the existence and validity of the obligations of
                  the Borrower and Heritage under the Note Purchase Agreements
                  (and any replacement, extension, renewal, refunding or
                  refinancing thereof permitted by Section 7B.2, as the case may
                  be) and (b) agrees to refrain from making or asserting any
                  claim that such obligations or the instruments governing the
                  terms thereof are invalid or not enforceable in accordance
                  with its and their terms as a result of the circumstances
                  surrounding the incurrence of such obligations.

                  7A.16    Maintenance of Separateness.

                           (i) The Borrower will:

                                    (a)      maintain books and records separate
                           from those of any other Person, including any of its
                           partnership interest holders or any Affiliate or
                           Subsidiary;

                                    (b)      maintain its assets in such a
                           manner that it is not more costly or difficult to
                           segregate, identify or ascertain such assets;

                                    (c)      observe all corporate formalities;

                                    (d)      hold itself out to creditors and
                           the public as a legal entity separate and distinct
                           from any other Person, including any of its
                           partnership interest holders and its Affiliates and
                           Subsidiaries;

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<PAGE>

                                    (e)      conduct its business in its name or
                           in business names or trade names of the Borrower or
                           its Subsidiaries and use separate stationery,
                           invoices and checks; and

                                    (f)      not assume, guarantee or pay the
                           debts or obligations of or hold itself out as being
                           available to satisfy the obligations of any other
                           Person, including any of its partnership interest
                           holders and its Affiliates and Subsidiaries, except
                           as is expressly permitted by the terms of this
                           Agreement.

                           (ii)     To the extent that the Borrower shares the
                  same officers or other employees as any of its Affiliates, the
                  salaries of and the expenses relating to providing benefits to
                  such officers and employees shall be fairly allocated among
                  such entities, and each such entity shall bear its fair share
                  of the salary and benefit costs associated with all such
                  common officers and employees.

                           (iii)    To the extent that the Borrower jointly
                  contracts with any of its Affiliates to do business with
                  vendors or service providers or to share overhead expenses,
                  the costs incurred in doing so shall be allocated fairly among
                  such entities, and each such entity shall bear its fair share
                  of such costs. To the extent that the Borrower contracts or
                  does business with vendors or service providers where the
                  goods and services are partially for the benefit of an
                  Affiliate, the costs incurred in doing so shall be fairly
                  allocated to or among such entities for whose benefit the
                  goods and services are provided, and each such entity shall
                  bear its fair share of such costs.

                           (iv)     To the extent that the Borrower or its
                  Affiliates have offices in the same location, there shall be a
                  fair and appropriate allocation of overhead costs among them,
                  and each such entity shall bear its fair share of such
                  expenses.

         7B.      Negative Covenants.

                  7B.1     Financial Ratios.

                           (i)      Ratio of Consolidated EBITDA to Consolidated
                  Interest Expense. The Borrower will not permit the ratio, as
                  of the last day of any fiscal quarter of the Borrower, of
                  Consolidated EBITDA to Consolidated Interest Expense to be
                  less than 2.25 to 1;

                           (ii)     Ratio of Consolidated Funded Indebtedness to
                  Consolidated EBITDA. The Borrower will not permit the ratio,
                  as of the end of any fiscal quarter of Borrower, of
                  Consolidated Funded Indebtedness to Consolidated EBITDA to
                  exceed (a) 4.75 to 1 from November 30, 2003, through November
                  30, 2004, or (b) 4.50 to 1 from February 28, 2005, and
                  thereafter;

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<PAGE>

                           (iii)    Ratio of Adjusted Consolidated Funded
                  Indebtedness to Adjusted Consolidated EBITDA. Borrower will
                  not permit the ratio, as of the end of any fiscal quarter of
                  Borrower, of Adjusted Consolidated Funded Indebtedness to
                  Adjusted Consolidated EBITDA to exceed (a) 5.25 to 1.00 from
                  November 30, 2003, through August 31, 2005, or (b) 5.00 to 1
                  on November 30, 2005, and thereafter.

                           Notwithstanding any of the provisions of this
                  Agreement the Borrower will not, and will not permit any
                  Subsidiary to, enter into any transaction pursuant to Section
                  7B.2, clauses (vii), (viii) and (xiv)(b) of Section 7B.3,
                  Section 7B.6, of clauses (i)(b), (i)(c), (ii)(b) and (iii) of
                  Section 7B.7, (x) if after giving effect to any such
                  transaction a Noncompliance Event, Default or Event of Default
                  exists or (y) if the consummation of any such transaction
                  would result in a violation of any clause of this Section 7B.1
                  or a Noncompliance Event, calculated for such purpose as of
                  the date on which such transaction were to be consummated both
                  immediately before and after giving effect to the consummation
                  thereof; provided, however, that in the case of transactions
                  pursuant to Section 7B.7, the calculation shall be made on a
                  pro forma basis in accordance with GAAP after giving effect to
                  any such transaction, with the ratio recomputed as at the last
                  day of the most recently ended fiscal quarter of the Borrower
                  as if such transaction had occurred on the first day of the
                  relevant four quarter period.

                  7B.2     Indebtedness. The Borrower will not, and will not
         permit any of its Subsidiaries to, create, incur, assume, or otherwise
         become directly or indirectly liable with respect to, any Indebtedness,
         except (subject to the provisions of Section 7B.4):

                           (i)      the Borrower may become and remain liable
                  with respect to Indebtedness evidenced by the Notes and
                  Indebtedness incurred in connection with any extension,
                  renewal, refunding or refinancing of Indebtedness evidenced by
                  the Private Placement Notes, provided that the principal
                  amount of such Indebtedness shall not exceed the principal
                  amount of the Indebtedness evidenced by the Private Placement
                  Notes, together with any accrued interest and Yield
                  Maintenance Amount with respect thereto, being extended,
                  renewed, refunded or refinanced and (y) such Indebtedness may
                  not have an average life to maturity shorter than the
                  remaining average life to maturity of the Indebtedness being
                  extended, renewed, refunded or refinanced;

                           (ii)     the Borrower may become and remain liable
                  with respect to Indebtedness incurred under the Working
                  Capital Facility and any Indebtedness incurred for such
                  purpose which replaces, extends, renews, refunds or refinances
                  all of such Indebtedness (in the case of a replacement,
                  refunding or refinancing, so long as the Acquisition Facility
                  also is replaced, refunded or refinanced in whole; provided
                  that the aggregate principal amount of Indebtedness permitted
                  under this clause (ii) shall not at any time exceed an amount
                  equal to (x) $20,000,000 less (y) the amount of Indebtedness,
                  if any, outstanding under the revolving working capital
                  facility permitted by clause (v) of this Section 7B.2;

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<PAGE>

                           (iii)    the Borrower may become and remain liable
                  with respect to Indebtedness incurred by the Borrower under
                  the Acquisition Facility and any Indebtedness incurred for
                  such purpose which replaces, extends, renews, refunds or
                  refinances all of such Indebtedness (in the case of a
                  replacement refunding or refinancing, so long as the Working
                  Capital Facility also is replaced, refunded or refinanced in
                  whole); and up to $3,000,000 of Indebtedness owing from time
                  to time to the Seller(s) in Asset Acquisitions provided that
                  the aggregate principal amount of Indebtedness permitted under
                  this clause (iii) shall not at any time exceed the lesser of
                  $30,000,000 or the sum of the outstanding balance of such
                  Seller(s) Asset Acquisitions debt referenced above (in no
                  event in excess of $3,000,000) plus the aggregate Acquisition
                  Loan Commitments described in Section 10.1, as amended from
                  time to time;

                           (iv)     any Subsidiary of the Borrower may become
                  and remain liable with respect to Indebtedness of such
                  Subsidiary owing to the Borrower or to a Wholly-Owned
                  Subsidiary of the Borrower;

                           (v)      Heritage Service may remain liable with
                  respect to Indebtedness incurred under the Heritage Service
                  Credit Agreement and any Indebtedness incurred for any
                  permitted purpose which replaces, extends, renews, refunds or
                  refinances such Indebtedness evidenced by the Service Revolver
                  Notes, in whole or in part; provided that the aggregate
                  principal amount of Indebtedness permitted under this clause
                  (v) shall not at any time exceed $1,000,000;

                           (vi)     the Borrower and any of its Subsidiaries may
                  become and remain liable with respect to Indebtedness relating
                  to any business, property or assets acquired by or contributed
                  to the Borrower or such Subsidiary or which is secured by a
                  loan on any property or assets acquired by or contributed to
                  the Borrower or such Subsidiary to the extent such
                  Indebtedness existed at the time such business, property or
                  assets were so acquired or contributed, and if such
                  Indebtedness is secured by such property or assets, such
                  security interest does not extend to or cover any other
                  property of the Borrower or any of its Subsidiaries; provided
                  that (a) immediately after giving effect to such acquisition
                  or contribution, the Borrower could incur at least $1.00 of
                  additional Indebtedness pursuant to clause (xiv) of this
                  Section 7B.2 and (b) such Indebtedness was not incurred in
                  anticipation of such acquisition or contribution;

                           (vii)    the Company and any of its Subsidiaries may
                  become and remain liable with respect to Indebtedness arising
                  from the honoring by a bank or other financial institution of
                  a check, draft or similar instrument drawn against
                  insufficient funds in the ordinary course of business,
                  provided that such Indebtedness is extinguished within 2
                  Business Days of its incurrence;

                           (viii)   M-P Energy Partnership may become and remain
                  liable with respect to Indebtedness in an aggregate principal
                  amount not to exceed

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<PAGE>

                  $3,000,000, and the Borrower may become and remain liable with
                  respect to Guarantees of such Indebtedness of M-P Energy
                  Partnership and of Indebtedness of Bi State Propane, provided
                  that the aggregate amount of all Guarantees permitted by this
                  clause (viii) shall not exceed $5,000,000;

                           (ix)     [INTENTIONALLY LEFT BLANK]

                           (x)      any Person that after the Closing Date
                  becomes a Subsidiary of the Borrower may become and remain
                  liable with respect to any Indebtedness to the extent such
                  Indebtedness existed at the time such Person became a
                  Subsidiary; provided that (a) immediately after giving effect
                  to such Person becoming a Subsidiary of the Borrower, the
                  Borrower could incur at least $1.00 of additional Indebtedness
                  in compliance with clause (xiv) of this Section 7B.2 and (b)
                  such Indebtedness was not incurred in anticipation of such
                  Person becoming a Subsidiary of the Borrower;

                           (xi)     the Borrower and any of its Subsidiaries may
                  become and remain liable with respect to Indebtedness owed to
                  any person providing workers' compensation, health, disability
                  or other employee benefits or property, casualty or liability
                  insurance to the Borrower or any of its Subsidiaries, pursuant
                  to reimbursement or indemnification obligations to such
                  person;

                           (xii)    the Borrower and any of its Subsidiaries may
                  become and remain liable with respect to Indebtedness in
                  respect of performance bonds, bid bonds, appeal bonds, surety
                  bonds and similar obligations, in each case provided in the
                  ordinary course of business, including those incurred to
                  secure health, safety and environmental obligations in the
                  ordinary course of business, and any extension, renewal or
                  refinancing thereof to the extent not provided to secure the
                  repayment of other Indebtedness and to the extent that the
                  amount of refinancing Indebtedness is not greater than the
                  amount of Indebtedness being refinanced;

                           (xiii)   the Borrower may become and remain liable
                  with respect to Indebtedness incurred in respect of
                  Capitalized Lease Obligations and Non-Compete Obligations;
                  provided, that the Lien in respect thereof is permitted by
                  clause (viii) of Section 7B.3; and

                           (xiv)    the Borrower and its Subsidiaries may become
                  and remain liable with respect to Indebtedness not exceeding
                  $100,000,000 in aggregate principal amount at any time
                  outstanding, in addition to that otherwise permitted by the
                  other clauses of this Section 7B.2, if (1) the stated maturity
                  of such Indebtedness (including all scheduled amortizations of
                  principal thereof) shall not be earlier than the last Final
                  Maturity Date in effect on the date of incurrence of such
                  Indebtedness and (2) on the date the Borrower or any of its
                  Subsidiaries becomes liable with respect to any such
                  additional Indebtedness and immediately after giving effect
                  thereto and to the substantially concurrent repayment of any
                  other Indebtedness (a) the ratio of Consolidated EBITDA to
                  Consolidated Debt Service

                                       62
<PAGE>

                  is equal to or greater than 2.50 to 1.0 and (b) the ratio of
                  Consolidated EBITDA to Consolidated Pro Forma Maximum Debt
                  Service is equal to or greater than 1.25 to 1.0 and (c) no
                  Default, Event of Default or Noncompliance Event shall exist.

                  7B.3     Liens. The Borrower will not, and will not permit any
         of its Subsidiaries to, create, assume, incur or suffer to exist any
         Lien upon or with respect to any of its properties or assets, whether
         now owned or hereafter acquired, or any income or profits therefrom
         (whether or not provision is made for the equal and ratable securing of
         the Notes in accordance with the provisions of Section 7A.3), except:

                           (i)      Liens existing on the Initial Closing Date
                  hereof on the property and assets of the Borrower or any of
                  its Subsidiaries as described in Schedule 7B.3;

                           (ii)     Liens for taxes, assessments or other
                  governmental charges the payment of which is not yet due and
                  payable or the validity of which is being contested in good
                  faith in compliance with Section 7A.5;

                           (iii)    attachment or judgment Liens not giving rise
                  to an Event of Default and with respect to which the
                  underlying action has been appealed or is being contested in
                  good faith in compliance with Section 7A.5;

                           (iv)     Liens of lessors, landlords, carriers,
                  vendors, mechanics, materialmen, warehousemen, repairmen and
                  other like Liens incurred in the ordinary course of business
                  the payment of which is not yet due or which is being
                  contested in good faith in compliance with Section 7A.5, in
                  each case not incurred or made in connection with the
                  borrowing of money, the obtaining of advances or credit or the
                  payment of the deferred purchase price of property, provided
                  that such Liens do not materially interfere with the conduct
                  of the business of the Borrower and its Subsidiaries taken as
                  a whole;

                           (v)      Liens (other than any Lien imposed by ERISA)
                  incurred and pledges and deposits made in the ordinary course
                  of business (a) in connection with workers' compensation,
                  unemployment insurance, old age pensions, retiree health
                  benefits and other types of social security, or (b) to secure
                  (or to obtain letters of credit that do not constitute
                  Indebtedness and that secure) the performance of tenders,
                  statutory obligations, surety and appeal bonds, bids, leases,
                  performance bonds, contracts and other similar obligations, in
                  each case not incurred or made in connection with the
                  borrowing of money or the obtaining of advances or credit
                  provided that such Liens do not materially interfere with the
                  conduct of the business of the Borrower and its Subsidiaries
                  taken as a whole;

                           (vi)     zoning restrictions, easements, licenses,
                  reservations, provisions, covenants, conditions, waivers,
                  restrictions on the use of property or irregularities of title
                  (and with respect to leasehold interests, mortgages,
                  obligations, liens and other encumbrances incurred, created,
                  assumed or permitted to exist and arising

                                       63
<PAGE>

                  by, through or under a landlord or owner of the leased
                  property, with or without consent of the lessee) which do not
                  in the aggregate materially detract from the value of its
                  property or assets or materially impair the use thereof in the
                  operation of its business;

                           (vii)    Liens existing on any property of a Person
                  at the time such Person becomes a Subsidiary of the Borrower
                  or existing at the time of acquisition upon any property
                  acquired by the Borrower or any of its Subsidiaries at the
                  time such property is so acquired, through purchase, merger or
                  consolidation or otherwise (whether or not the Indebtedness
                  secured thereby shall have been assumed); provided, however,
                  that in the case of any such Lien (1) such Lien shall at all
                  times be confined solely to any such property and, if required
                  by the terms of the instrument creating such Lien, other
                  property which is an improvement to such acquired property,
                  (2) such Lien was not created in anticipation of such
                  transaction, and (3) the Indebtedness secured by such Lien
                  shall be permitted under Section 7B.2;

                           (viii)   Liens created to secure all or any part of
                  the purchase price, or to secure Indebtedness (other than
                  Parity Debt) incurred or assumed to pay all or any part of the
                  purchase price or cost of construction, of property acquired
                  or constructed by the Borrower or any of its Subsidiaries
                  after the Closing Date or to secure obligations incurred in
                  consideration of non-compete agreements ("Non-Compete
                  Obligations") entered into in connection with any such
                  acquisition, including an acquisition complying with clause
                  (b)(y) of Section 7B.9; provided that (a) any such Lien shall
                  be confined solely to the item or items of such property (or
                  improvement thereon) so acquired or constructed and, if
                  required by the terms of the instrument creating such Lien,
                  other property (or improvement thereon) which is an
                  improvement to such acquired or constructed property (and, in
                  the case of any Lien securing Non-Compete Obligations, shall
                  also be limited to (x) such items of property as acquired
                  which are not of the character included in the definition of
                  Collateral and (y) such additional items of the property so
                  acquired, having a total fair market value (as determined in
                  good faith by the Board of Directors of the General Partner)
                  for the sum of (x) and (y) that is not more than the amount of
                  the Non-Compete Obligations so secured), (b) such item or
                  items of property so acquired and subject to such Lien are not
                  required to become part of the Collateral under the terms of
                  the Security Agreement, (c) any such Lien shall be created
                  contemporaneously with, or within 180 days after, the
                  acquisition or construction of such property, and (d) such
                  Lien does not exceed an amount equal to 85% of the fair market
                  value (100% in the case of Capitalized Lease Obligations and
                  35% in the case of Non-Compete Obligations) of such property
                  (as determined in good faith by the Board of Directors of the
                  General Partner) at the time of acquisition thereof and (e)
                  after giving effect to such Lien no Noncompliance Event,
                  Default or Event of Default shall exist;

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<PAGE>

                           (ix)     Liens on property or assets of any
                  Subsidiary of the Borrower securing Indebtedness of such
                  Subsidiary owing to the Borrower or a Wholly-Owned Subsidiary;

                           (x)      leases or subleases of equipment to
                  customers which do not materially interfere with the conduct
                  of the business of the Borrower and its Subsidiaries taken as
                  a whole;

                           (xi)     easements, exceptions or reservations in any
                  property of the Borrower or any Subsidiary granted or reserved
                  for the purpose of pipelines, roads, the removal of oil, gas,
                  coal or other minerals, and other like purposes, or for the
                  joint or common use of real property, facilities and
                  equipment, which are incidental to, and do not materially
                  interfere with, the ordinary conduct of the business of the
                  Borrower or any of its Subsidiaries;

                           (xii)    Liens (other than Liens securing
                  Indebtedness) on the property or assets of any Subsidiary of
                  the Borrower in favor of the Borrower or any other
                  Wholly-Owned Subsidiary of the Borrower;

                           (xiii)   Liens on the property or assets of Heritage
                  Service Corp. securing the Indebtedness permitted by clause
                  (v) of Section 7B.2 provided that (a) any such Lien shall at
                  all times be contained to property or assets having an
                  aggregate fair market value not exceeding $2,000,000 and (b)
                  such indebtedness permitted by clause (v) of Section 7B.2 is
                  owed to one or more of the Banks;

                           (xiv)    Liens created by any of the Security
                  Documents securing (a) Indebtedness evidenced by the Notes,
                  the Acquisition Credit or the Working Capital Credit) and (b)
                  Additional Parity Debt; and

                           (xv)     any Lien renewing, extending or refunding
                  any Lien permitted by this Section 7B.3, provided that (a) the
                  principal amount of the Indebtedness secured by any such Lien
                  shall not exceed the principal amount of such Indebtedness
                  outstanding immediately prior to the renewal, extension or
                  refunding of such Lien and (b) no assets encumbered by any
                  such Lien other than the assets encumbered immediately prior
                  to such renewal, extension or refunding shall be encumbered
                  thereby.

                  Notwithstanding the foregoing, the Borrower will not, and will
         not permit any of its Subsidiaries to, create, assume or incur any Lien
         upon or with respect to (a) any Subsidiary stock held by the Borrower
         or any other Subsidiary of the Borrower, or (b) any of its proprietary
         software developed by or on behalf of the Borrower or its Affiliates
         necessary and useful for the conduct of the Business. No Lien permitted
         under this Section 7B.3 shall result in over-collateralization except
         as required by conventional practice for specific types of borrowings.

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                  7B.4     Priority Debt. The Borrower will not permit Priority
         Debt, at any time, to exceed the sum of (i) $5,000,000 plus (ii) 10% of
         the then Consolidated Tangible Net Worth of the Borrower and its
         Subsidiaries(but only to the extent such Consolidated Tangible Net
         Worth is positive). The provisions of this Section 7B.4 are further
         limitations on Priority Debt that shall otherwise be permitted by
         Section 7B.1, 7B.2 or 7B.3.

                  7B.5     Loans, Advances, Investments and Contingent
         Liabilities. The Borrower will not, and will not permit any of its
         Subsidiaries to, directly or indirectly, purchase or own any stock,
         obligations or securities of, or any other interest in, or make any
         capital contribution to, any Person, make or permit to remain
         outstanding any loan or advance to, or guarantee, endorse or otherwise
         be or become contingently liable, directly or indirectly, in connection
         with the obligations of any Person, or make any other Investment,
         except:

                           (i)      the Borrower or any of its Subsidiaries may
                  make and own Investments (w) consisting of Units issued for
                  purposes of making acquisitions, (x) arising out of loans and
                  advances to employees incurred in the ordinary course of
                  business, and consisting of advances to pay reimbursable
                  expenditures, (y) arising out of extensions of trade credit or
                  advances to third parties in the ordinary course of business
                  and (z) acquired by reason of the exercise of customary
                  creditors' rights upon default or pursuant to the bankruptcy,
                  insolvency or reorganization of a debtor;

                           (ii)     Guarantees that constitute Indebtedness to
                  the extent permitted by Sections 7B.1 and 7B.2 and other
                  Guarantees that are not Guarantees of Indebtedness and are
                  undertaken in the ordinary course of business;

                           (iii)    investment in (collectively, "Cash
                  Equivalents")

                                    (a)      marketable obligations issued or
                           unconditionally guaranteed by the United States of
                           America, or issued by any agency thereof and backed
                           by the full faith and credit of the United States of
                           America, in each case maturing one year or less from
                           the date of acquisition thereof,

                                    (b)      marketable direct obligations
                           issued by any state of the United States of America
                           or any political subdivision of any such state or any
                           public instrumentality thereof maturing within one
                           year from the date of acquisition thereof and having
                           as at such date the highest rating obtainable from
                           either Standard & Poor's Rating Group or Moody's
                           Investors Service, Inc.,

                                    (c)      commercial paper maturing no more
                           than 270 days from the date of creation thereof and
                           having as at the date of acquisition thereof

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                           one of the two highest ratings obtainable from either
                           Standard & Poor's Rating Group or Moody's Investors
                           Service, Inc.,

                                    (d)      certificates of deposit maturing
                           one year or less from the date of acquisition thereof
                           (1) issued by commercial banks incorporated under the
                           laws of the United States of America or any state
                           thereof or the District of Columbia or Canada or
                           issued by the United States branch of any commercial
                           bank organized under the laws of any country in
                           Western Europe or Japan, with capital and
                           stockholders' equity of at least $500,000,000 (or the
                           equivalent in the currency of such country), (A) the
                           commercial paper or other short term unsecured debt
                           obligations of which are as at such date rated either
                           A-2 or better (or comparably if the rating system is
                           changed) by Standard & Poor's Rating Group or Prime-2
                           or better (or comparably if the rating system is
                           changed) by Moody's Investors Service, Inc. or (B)
                           the long-term debt obligations of which are as at
                           such date rated either A or better (or comparably if
                           the rating system is changed) by Standard & Poor's
                           Rating Group or A2 or better (or comparably if the
                           rating system is changed) by Moody's Investors
                           Service, Inc.("Permitted Banks") or (2) issued by BOk
                           in an aggregate amount for all such certificates of
                           deposit issued by BOk not to exceed $1,000,000,

                                    (e)      Eurodollar time deposits having a
                           maturity of less than 270 days from the date of
                           acquisition thereof purchased directly from any
                           Permitted Bank,

                                    (f)      bankers' acceptances eligible for
                           rediscount under requirements of The Board of
                           Governors of the Federal Reserve System and accepted
                           by Permitted Banks, and

                                    (g)      obligations of the type described
                           in clause (a), (b), (c), (d) or (e) above purchased
                           from a securities dealer designated as a "primary
                           dealer" by the Federal Reserve Bank of New York or
                           from a Permitted Bank as counterparty to a written
                           repurchase agreement obligating such counterparty to
                           repurchase such obligations not later than 14 days
                           after the purchase thereof and which provides that
                           the obligations which are the subject thereof are
                           held for the benefit of the Borrower or any of its
                           Subsidiaries by a custodian which is a Permitted Bank
                           and which is not a counterparty to the repurchase
                           agreement in question;

                           (iv)     the Borrower or any of its Subsidiaries may
                  acquire Capital Stock or other ownership interests of a Person
                  (i) located in the United States of America or Canada, (ii)
                  incorporated or otherwise formed pursuant to the laws of the
                  United States of America or Canada or any state or province
                  thereof or the District of Columbia and (iii) engaged in
                  substantially the same business as the Borrower which Person
                  at the time of such acquisition is, or as a result thereof
                  becomes, a Subsidiary of the Borrower;

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<PAGE>

                           (v)      the Borrower or any of its Subsidiaries may
                  make and own Investments (in addition to Investments permitted
                  by clauses (i), (ii), (iii), and (iv) of this Section 7B.5) in
                  any Person incorporated or otherwise formed pursuant to the
                  laws of the United States of America or Canada or any state or
                  province thereof or the District of Columbia; provided,
                  however, that (i) the sum of (a) the aggregate amount of all
                  such Investments made by the Borrower and its Subsidiaries
                  following the Closing Date which are outstanding pursuant to
                  this clause (v) plus (b) all other Investments held by the
                  Borrower and its Subsidiaries which are outstanding as of the
                  Closing Date and listed on Schedule 7B.5 shall not at any date
                  of determination exceed $10,000,000 (the "Investment Limit");
                  (ii) the representation in Section 8.18 shall be true and
                  correct as of the date of determination; and (iii) the
                  aggregate amount of all such Investments made by the Borrower
                  and its Subsidiaries and outstanding pursuant to this clause
                  (v) in Persons engaged in a business which is not
                  substantially the same as a line of business described in
                  Section 7B.8 shall not at any date exceed $12,500,000,
                  including Investments in La Grange and its Subsidiaries which
                  shall not at any time exceed $1,000,000 and (iv) no Investment
                  pursuant to this clause (v) may be made unless if after giving
                  effect thereto no Default or Event of Default exists;

                           (vi)     the Borrower may make and become liable with
                  respect to any Interest Rate Agreements; and

                           (vii)    any Subsidiary of the Borrower may make
                  Investments in the Borrower or in a Wholly-Owned Subsidiary of
                  the Borrower.

                  7B.6     Restricted Payments. The Borrower will not directly
         or indirectly declare, order, pay, make or set apart any sum for any
         Restricted Payment, except that the Borrower may declare or order, and
         make, pay or set apart, during each fiscal quarter a Restricted Payment
         if (i) such Restricted Payment together with all other Restricted
         Payments during such fiscal quarter, do not in the aggregate exceed the
         amount of Available Cash with respect to the immediately preceding
         quarter, and (ii) no Default, Event of Default or Noncompliance Event
         exists before or immediately after any such proposed action and
         Borrower shall be in pro forma compliance with the financial covenants
         of Section 7B.1(i), (ii) and (iii). Notwithstanding the foregoing, the
         Borrower will not directly or indirectly declare, order or pay
         Restricted Payments, individually or in the aggregate, for any fiscal
         quarter in an amount greater than the product of (i) the Borrower's
         Percentage of Aggregate Available Cash times (ii) the Aggregate Partner
         Obligations.

                  7B.7     Consolidation, Merger, Sale of Assets. The Borrower
         will not, and will not permit any of its Subsidiaries to, directly or
         indirectly,

                           (i)      consolidate with or merge into any other
                  Person or permit any other Person to consolidate with or merge
                  into it, except that:

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<PAGE>

                                    (a)      any Subsidiary of the Borrower may
                           consolidate with or merge into the Borrower or a
                           Wholly-Owned Subsidiary of the Borrower if the
                           Borrower or a Wholly-Owned Subsidiary of the
                           Borrower, as the case may be, shall be the surviving
                           Person; and

                                    (b)      any entity (other than a Subsidiary
                           of the Borrower) may consolidate with or merge into
                           the Borrower or a Subsidiary if the Borrower or a
                           Subsidiary of the Borrower, as the case may be, shall
                           be the surviving Person and if, immediately after
                           giving effect to such transaction, (i) the Borrower
                           and its Subsidiaries (x) shall not have a
                           Consolidated Net Worth, determined in accordance with
                           GAAP applied on a basis consistent with the
                           consolidated financial statements of the Borrower
                           most recently delivered pursuant to Section 7A.1, of
                           less than the Consolidated Net Worth of the Borrower
                           immediately prior to the effectiveness of such
                           transaction, satisfaction of this requirement to be
                           set forth in reasonable detail in an Officers'
                           Certificate delivered to each holder of a Note at the
                           time of such transaction, and (y) could incur at
                           least $1.00 of additional Indebtedness in compliance
                           with Section 7B.1 and clause (xiv) of Section 7B.2,
                           (ii) substantially all of the assets of the Borrower
                           and its Subsidiaries, taken as a whole, shall be
                           located and substantially all of their business shall
                           be conducted within the continental United States of
                           America or Canada and (iii) no Default, Event of
                           Default or Noncompliance Event shall exist and be
                           continuing;

                           (ii)     sell, lease, abandon or otherwise dispose of
                  all or substantially all its assets, except that any
                  Subsidiary of the Borrower may sell, lease or otherwise
                  dispose of all or substantially all its assets to the Borrower
                  or to a Wholly-Owned Subsidiary of the Borrower; or

                           (iii)    sell, lease, convey, abandon or otherwise
                  dispose of (including, without limitation, in connection with
                  a Sale and Lease-Back Transaction) any of its assets (except
                  in a transaction permitted by clause (i)(a), (i)(b), (i)(c),
                  (ii)(a) or (ii)(b) of this Section 7B.7 or sales of inventory
                  in the ordinary course of business consistent with past
                  practice) or issue or sell Capital Stock of any Subsidiary of
                  the Borrower, whether in a single transaction or a series of
                  related transactions (each of the foregoing non-excepted
                  transactions, an "Asset Sale"), unless:

                                    (a)      immediately after giving effect to
                           such proposed disposition no Default, Event of
                           Default or Noncompliance Event shall exist and be
                           continuing, satisfaction of this requirement to be
                           set forth in reasonable detail in an Officer's
                           Certificate delivered to each holder of a Note at the
                           time of such transaction in the case of any Asset
                           Sale involving assets that generates EBITDA and such
                           Asset Sale involves consideration of $250,000 or
                           more;

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<PAGE>

                           (b)      such sale or other disposition is for cash
                  consideration or for consideration consisting of not less than
                  75% cash and not more than 25% interest-bearing promissory
                  notes; provided, that the 75% limitation referred to in this
                  clause (b) shall not apply to any Asset Sale consisting solely
                  of a sale or other disposition of land and buildings for an
                  interest bearing promissory note as long as the amount of such
                  promissory note does not exceed $250,000;

                           (c)      one of the following two conditions must be
                  satisfied:

                                    (i)      (x) the aggregate Net Proceeds of
                           all assets so disposed of (whether or not leased
                           back) over the immediately preceding 12-month period
                           does not exceed $3,000,000 and (y) the aggregate Net
                           Proceeds of all assets so disposed of (whether or not
                           leased back) from the Closing Date through the date
                           of such disposition does not exceed $10,000,000; or

                                    (ii)     in the event that such Net Proceeds
                           (less the amount thereof previously applied in
                           accordance with clause (x) of this clause (c)(ii))
                           exceeds the limitations determined pursuant to
                           clauses (x) and (y) of clause (c)(i) of this Section
                           7B.7 (such excess amount being herein called "Excess
                           Sale Proceeds"), the Borrower shall within 12
                           calendar months of the date on which such Net
                           Proceeds exceeded any such limitation, cause an
                           amount equal to such Excess Sale Proceeds to be
                           applied (x) to the acquisition of assets in
                           replacement of the assets so disposed of or of assets
                           which may be productively used in the United States
                           of America or Canada in the conduct of the Business,
                           or (y) to the extent not applied pursuant to the
                           immediately preceding clause (x), to offer to make
                           prepayments on the Notes pursuant to Section 4.2.3
                           hereto and, allocated on the basis specified for such
                           prepayments in the definition of Allocable Proceeds,
                           to offer to repay other Parity Debt (other than
                           Indebtedness under Section 7B.2 (ii) or that by its
                           terms does not permit such offer to be made); and

                           (d)      the Borrower shall have delivered to the
                  Noteholders a Certificate of the Board of Directors of the
                  General Partner, certifying that such sale or other
                  disposition is for fair value and is in the best interests of
                  the Borrower.

         Notwithstanding the foregoing, Asset Sales shall not be deemed to
include (1) any transfer of assets or issuance or sale of Capital Stock by the
Borrower or any of its Subsidiaries to the Borrower or a Wholly-Owned Subsidiary
of the Borrower, (2) any transfer of assets or issuance or sale of Capital Stock
by the Borrower or any of its Subsidiaries to any Person in exchange for, or the
Net Proceeds of which are applied

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<PAGE>

within 12 months to the purchase of, other assets used in a line of business
permitted under Section 7B.8 and having a fair market value (as determined in
good faith by the Board of Directors of the General Partner) not less than that
of the assets so transferred or Capital Stock so issued or sold and (3) any
transfer of assets pursuant to an Investment permitted by Section 7B.5.

                  7B.8     Business. The Borrower will not and will not permit
         any of its Subsidiaries to engage in any line of business if as a
         result thereof the Borrower and its Subsidiaries would not be
         principally and predominately engaged in the Business and related
         general and administrative operations, as more fully described in the
         Memorandum and subject in all respects to the provisions of clause
         (iii) of the proviso to Section 7B.5(v).

                  7B.9     Transactions with Affiliates. The Borrower will not,
         and will not permit any of its Subsidiaries to, directly or indirectly,
         engage in any transaction with any Affiliate unless (i) (a) such
         transaction is on fair and reasonable terms that are no less favorable
         to the Borrower or such Subsidiary, as the case may be, than those
         which would be obtained in an arm's-length transaction from a Person
         other than an Affiliate and (b) such transaction is entered into in the
         ordinary course of business and pursuant to the reasonable requirements
         at the time of the Borrower's or such Subsidiary's operations, or (y)
         such transaction involves the acquisition by the Borrower from the
         General Partner of assets formerly owned by an entity, the Capital
         Stock of which was purchased by the General Partner, which acquisition
         is for a substantially equivalent value as the value of such purchase
         consummated within ten days after the consummation of such purchase, as
         long as such transaction otherwise would be permitted hereunder had the
         Borrower acquired such assets directly from such entity (including, for
         example, the acquisition by the Borrower from the General Partner of
         assets formerly owned by Kingston Propane, Inc.) (ii) such transaction
         is in connection with the incurrence of Indebtedness pursuant to
         Section 7B.2(viii), (iii) such transaction is in connection with the
         making of an Investment pursuant to Section 7B.5(i) and Section
         7B.5(v)(iii) with respect to Investments in La Grange or its
         Subsidiaries, (iv) such transaction is a Restricted Payment permitted
         by Section 7B.6, (v) such transaction involves performance under the
         Contribution Agreement (substantially in the form in effect on the
         Closing Date), (vi) such transaction involves indemnification and
         contribution under Section 7.7 of the Partnership Agreement (as said
         section is in effect on the Closing Date), to the extent such
         indemnification or contribution arises from operations or activities in
         connection with the Business (including securities issuances in
         connection with funding the Business) or (vii) such transaction is a
         specific transaction described in the Registration Statement.

                  7B.10    Subsidiary Stock and Indebtedness.

                           (i)      The Borrower will not permit any of its
                  Subsidiaries directly or indirectly to issue or sell any
                  Equity Interest of such Subsidiary of the Borrower to any
                  Person other than the Borrower or a Wholly-Owned Subsidiary of
                  the Borrower except (a) for the purpose of qualifying
                  directors or (b) in satisfaction of

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<PAGE>

                  pre-emptive rights of holders of minority interests which are
                  triggered by an issuance of Equity Interests to the Borrower
                  or a Subsidiary of the Borrower and permit such holders to
                  maintain their pro rata interests.

                           (ii)     The Borrower will not directly or indirectly
                  sell, assign, pledge or otherwise dispose of any Equity
                  Interest in or any Indebtedness of any of its Subsidiaries,
                  and will not permit any of its Subsidiaries directly or
                  indirectly to sell, assign, pledge or otherwise dispose of any
                  Equity Interest in or any Indebtedness of any other Subsidiary
                  of the Borrower except to the Borrower or a Wholly-Owned
                  Subsidiary of the Borrower, unless (a) simultaneously with
                  such sale, transfer or disposition, all of the Equity
                  Interests (other than an Equity Interest representing less
                  than 2% of the outstanding Equity Interests of all classes of
                  such Subsidiary taken together, provided that such Equity
                  Interest is considered an Investment pursuant to Section
                  7B.5(v) and is permitted thereunder) or Indebtedness of such
                  Subsidiary owned by the Borrower and its Subsidiaries is sold,
                  transferred or disposed of as an entirety, (b) the Board of
                  Directors of the General Partner shall have determined, as
                  evidenced by a resolution thereof, that the proposed sale,
                  transfer or disposition of such Equity Interests or
                  Indebtedness is in the best interests of the Borrower, (c)
                  such Equity Interests or Indebtedness are sold, transferred or
                  otherwise disposed of for cash or Cash Equivalents or other
                  assets used in a line of business permitted by Section 7B and
                  having a fair market value (as determined in good faith by the
                  Board of Directors of the General Partner) not less than that
                  of the Equity Interests or Indebtedness so transferred, to a
                  Person upon terms deemed by the Board of Directors of the
                  General Partner to be acceptable, (d) the Subsidiary being
                  sold, transferred or otherwise disposed of shall not have any
                  continuing investment in the Borrower or any Subsidiary of the
                  Borrower not being so sold, transferred or disposed and (e)
                  such sale, transfer or disposition is permitted by Section
                  7B.7.

                  7B.11    Payment of Dividends by Subsidiaries. The Borrower
         will not, and will not permit any of its Subsidiaries to, be subject to
         or enter into any agreement which restricts the ability of any
         Subsidiary of the Borrower to declare or pay any dividend to the
         Borrower, to make any distribution on any Equity Interest of such
         Subsidiary to the Borrower, or to lend money to the Borrower.

                  7B.12    Sales of Receivables. The Borrower will not, and will
         not permit any of its Subsidiaries to, discount, pledge, sell (with or
         without recourse), or otherwise sell for less than face value thereof
         any of its accounts or notes receivable, except for sales of
         receivables (i) without recourse which are seriously past due and which
         have been substantially written off as uncollectible or collectible
         only after extended delays, or (ii) made in connection with the sale of
         a business but only with respect to the receivables directly generated
         by the business so sold.

                  7B.13    Material Agreements; Tax Status. The Borrower will
                           not:

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<PAGE>

                           (i)      amend or directly or indirectly modify in
                  any manner the definitions of "Allocable Proceeds" or "Excess
                  Proceeds" of the Note Purchase Agreements or any similar
                  provisions of any agreement applicable to any extensions,
                  renewals or refundings thereof as Parity Debt under the
                  provisions of paragraph 7B.2(i);

                           (ii)     amend or modify in any manner adverse to the
                  holders of the Notes, or grant any waiver or release under (if
                  such action shall be adverse to the holders of the Notes), any
                  Partnership Document, any notes evidencing Parity Debt or any
                  agreement relating to Parity Debt or terminate in any manner
                  any Partnership Document, it being understood, without
                  limitation, that no modification that reduces principal,
                  interest or fees, premiums, make-wholes or penalty charges, or
                  extends any scheduled or mandatory payment, prepayment or
                  redemption of principal or interest, or makes less restrictive
                  any agreement or releases away any security, or waives any
                  condition precedent or default shall be adverse to the holders
                  of the Notes for purposes of this Agreement; or

                           (iii)    permit the Master Partnership or the
                  Borrower to be treated as an association taxable as a
                  corporation or otherwise to be taxed as an entity for federal
                  income tax purposes.

                  7B.14    Commingling of Deposit Accounts and Accounts. The
         Borrower will not, nor will it permit any of its Subsidiaries to,
         commingle their respective deposit accounts or accounts with the
         deposit accounts of La Grange or any of its Subsidiaries.

                                  ARTICLE VIII

                    REPRESENTATIONS, COVENANTS AND WARRANTIES

         The Borrower represents, covenants and warrants as follows:

         8.1      Organization. The Borrower is a limited partnership duly
organized, validly existing and in good standing under the laws of the State of
Delaware and has all requisite partnership power and authority to own and
operate its properties (including without limitation the assets owned and
operated by it), to conduct its business, to enter into this Agreement and the
other Loan Documents to which it is a party and the Operative Agreements and to
carry out the terms of this Agreement, the Notes, such other Loan Documents and
Operative Agreements. Each Subsidiary of the Borrower is duly organized, validly
existing and in good standing under the laws of its state of organization and
has all requisite power and authority to own and operate its properties
(including without limitation the assets owned and operated by it).

         8.2      Partnership Interests. The sole general partner of the
Borrower is U.S. Propane. The sole general partner of U.S. Propane is USPLLC. At
the Closing Date, the Borrower does not have any Subsidiary other than the
Subsidiaries of the Borrower as set forth on Schedule 8.2 or any Investments in
any Person (other than as set forth on Schedules 7B.5 or 8.2 or Investments of
the types described in Section 7B.5(i), (ii), (iii) or (vi)).

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<PAGE>

         8.3      Qualification. The Borrower is duly qualified or registered
and is in good standing as a foreign limited partnership for the transaction of
business, and each of the Subsidiaries of the Borrower is duly qualified or
registered and is in good standing as a foreign corporation or partnership, as
the case may be, for the transaction of business, in the states and to the
extent listed in Schedule 8.3, and, except as reflected on Schedule 8.3, on the
Closing Date there are no other jurisdictions in which the nature of their
respective activities or the character of the properties they own, lease or use
makes such qualification or registration necessary and in which the failure so
to qualify or to be so registered would have a Material Adverse Effect. The
Borrower has taken all necessary partnership action to authorize the execution,
delivery and performance by it of this Agreement, the other Financing Documents
to which it is a party and the Operative Agreements. The Borrower has duly
executed and delivered each of this Agreement, the other Loan Documents and the
Operative Agreements to which it is a party, and each of such documents and
agreements and the Notes and the Security Documents constitute the legal, valid
and binding obligation of the Borrower enforceable against it in accordance with
its terms, except as such enforceability may be limited by bankruptcy,
insolvency, moratorium or similar laws affecting creditors' rights generally and
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

         8.4      Financial Statements. The Borrower has delivered to the
Administrative Agent complete and correct copies of the audited financial
statements of the Borrower as of August 31, 2003, together with any unaudited
financial statements available or provided to the Borrower for periods after
August 31, 2003. Such financial statements have been prepared in accordance with
GAAP and fairly present in all material respects the financial position of the
Borrower as of the close of the applicable period covered thereby.

         8.5      Actions Pending. There is no action, suit, investigation or
proceeding pending or, to the knowledge of the Borrower, threatened against the
Borrower or the General Partner or any of the Subsidiaries of the Borrower, or
any properties or rights of the Borrower or the General Partner or any of the
Subsidiaries of the Borrower, by or before any court, arbitrator or
administrative or governmental body (i) which questions the validity or
enforceability of this Agreement, the Notes, any other Financing Document or any
Operative Agreement or any action to be taken pursuant to this Agreement, the
Notes, any other Loan Document or any Operative Agreement or (ii) which could
reasonably be expected to result in a Material Adverse Effect.

         8.6      Changes. Except as contemplated by this Agreement, the Notes,
the other Financing Documents or the Operative Agreements or as described in the
Registration Statement or the Memorandum, (i) neither the Borrower nor any of
the Subsidiaries of the Borrower has incurred any material liabilities or
obligations, direct or contingent, nor entered into any material transaction, in
each case other than in the ordinary course of business, and (ii) there has not
been any material adverse change in or effect on the business, assets, financial
condition (including as reflected on the audited financial statements for August
31, 2003) or prospects of the Borrower or any of the Subsidiaries of the
Borrower.

         8.7      Outstanding Indebtedness. Other than the Credit Obligations
represented by the Notes, neither the Borrower nor any of the Subsidiaries of
the Borrower as set forth on Schedule

                                       74
<PAGE>

8.2 has outstanding any Indebtedness except as set forth on Schedule 8.7 and any
such Indebtedness which is indicated in Schedule 8.7 to be paid in full on the
Closing Date will be paid in full at the time of Closing. There exists no
default under the provisions of any instrument evidencing such Indebtedness or
of any agreement relating thereto. On the Closing Date, no instrument or
agreement to which the Borrower or any of the Subsidiaries of the Borrower is a
party or by which the Borrower, any such Subsidiary, or their respective
properties is bound (other than this Agreement and the Note Purchase Agreements
and other than as indicated in Schedule 8.7) will contain any restriction on the
incurrence by the Operating Partnership or any of the Subsidiaries of the
Borrower of additional Indebtedness.

         8.8      Transfer of Assets and Business; Title to Properties.

                  (i)      Except as set forth on Schedule 8.8, the Borrower and
         the Subsidiaries of the Borrower will at the Closing Date be in
         possession of, and operating in compliance with, all franchises,
         grants, authorizations, approvals, licenses, permits, easements,
         rights-of-way, consents, certificates and orders (collectively, the
         "Permits") required (a) to own, lease or use its properties (including
         without limitation to own, lease or use the Assets owned, leased or
         used by it) and (b) considering all such Permits in the possession of,
         and complied with by, the Borrower and its Subsidiaries taken together,
         to permit the conduct of the Business as now conducted and proposed to
         be conducted, except for those Permits (x) which are routine and
         administrative in nature and are expected in the reasonable judgment of
         the Borrower to be obtained or given in the ordinary course of business
         from time to time after the Closing Date, and (y) which, if not
         obtained or given, would not, individually or in the aggregate, present
         a reasonable likelihood of having a Material Adverse Effect,

                  (ii)     Except as set forth on Schedule 8.8, on and after the
         Closing Date, the Borrower and the Subsidiaries of the Borrower will
         have, (i) good and marketable title to, or valid leasehold interests
         in, all of the Assets constituting real property except for defects in,
         or lack of recorded, title and exceptions to leasehold interests that
         either alone or in the aggregate could not reasonably be expected to
         result in a Material Adverse Effect, and (ii) good and sufficient title
         to, or valid rights to use, all of the Assets constituting personal
         property reasonably necessary for the operation of such personal
         property as it is used on the date hereof and proposed to be used in
         the Business, in each case subject to no Liens except such as are
         permitted by Section 7B.3. The Assets owned by the Borrower and the
         Subsidiaries of the Borrower will be all of the assets and properties
         reasonably necessary to enable the Borrower and its Subsidiaries to
         conduct the Business on the Closing Date. Subject to such exceptions as
         would not, individually or in the aggregate, present a reasonable
         likelihood of having a Material Adverse Effect (A) on the date hereof
         the Borrower and its Subsidiaries enjoy, peaceful and undisturbed
         possession under all leases and subleases necessary in any material
         respect for the conduct of the Business, and (B) all such leases and
         subleases are valid and subsisting and are in full force and effect.
         None of the properties or assets of the Borrower or any of the
         Subsidiaries of the Borrower is subject to any Lien other than Liens
         that would be permitted hereunder.

                                       75
<PAGE>

         8.9      Taxes. On the Closing Date each of the Operating Partnership
and its Subsidiaries will have filed all federal, state and other income tax
returns which, to the knowledge of the Borrower, are required to be filed or
will have properly filed for extensions of time for the filing thereof, and has
paid all taxes, assessments and other governmental charges levied upon it or any
of its properties, assets, income or franchises as shown to be due on such
returns, except those which are not past due or are being contested in good
faith in compliance with Section 7A.5. The Borrower is a limited partnership not
subject to taxation with respect to its income or gross receipts under
applicable state laws and that is treated as a pass-through entity for U.S.
federal income tax purposes.

         8.10     Compliance with Other Instruments; Solvency.

                  (i)      On the Closing Date, immediately prior to the
         completion of the transactions contemplated by this Agreement, the
         Notes, the other Loan Documents and the Operative Agreements), neither
         the Borrower nor any of the Subsidiaries of the Borrower will be in
         violation of (a) any provision of its certificate or articles of
         incorporation or other constitutive documents or its by-laws, (b) any
         provision of any agreement or instrument to which it is a party or by
         which any of its properties is bound or (c) any applicable law,
         ordinance, rule or regulation of any Governmental Authority or any
         applicable order, judgment or decree of any court, arbitrator or
         Governmental Authority except (in the case of clauses (b) and (c) above
         only) for such violations which would not, individually or in the
         aggregate, present a reasonable likelihood of having a Material Adverse
         Effect.

                  (ii)     The execution, delivery and performance of this
         Agreement, the Notes, the other Loan Documents and the Operative
         Agreements, and the completion of the transactions contemplated by the
         Registration Statement to occur prior to the Closing Date (including
         without limitation the transactions contemplated by this Agreement, the
         Notes, the other Loan Documents and the Operative Agreements) will not
         violate (a) any provision of the certificate or articles of
         incorporation or other constitutive documents or by-laws of the
         Borrower, the General Partner or any of the Subsidiaries of the
         Borrower, (b) any applicable law, ordinance, rule or regulation of any
         Governmental Authority or any applicable order, judgment or decree of
         any court, arbitrator or Governmental Authority, or (c) any provision
         of any agreement or instrument to which the Borrower, the General
         Partner or any of the Subsidiaries of the Borrower is a party or by
         which any of its properties is bound.

                  (iii)    Upon completion of the transactions contemplated by
         this Agreement, the Notes, the other Loan Documents and the Operative
         Agreements), none of the Borrower, the General Partner or any
         Subsidiary of the Borrower shall (a) be insolvent, (b) be engaged or
         about to engage in business or a transaction at a time the Borrower,
         the General Partner or any Subsidiary of the Borrower could be viewed
         as having unreasonably small capital, or (c) intend to incur, or
         believe that it would incur, debts that would be beyond its ability to
         pay as such debts matured.

                                       76
<PAGE>

         8.11     Governmental Consent. No consent, approval or authorization
of, or declaration or filing with, any Governmental Authority is required for
the valid execution, delivery and performance of this Agreement, the Notes, the
other Loan Documents or the Operative Agreements.

         8.12     Use of Proceeds. None of the proceeds of the Loans will be
used, directly or indirectly, for the purpose, whether immediate, incidental or
ultimate, of purchasing or carrying any margin stock (as defined in Section 8.17
hereof) or for the purpose of maintaining, reducing or retiring any indebtedness
which was originally incurred to purchase or carry any stock that is currently a
margin stock or for any other purpose which might constitute this transaction a
"purpose credit" within the meaning of such Regulation U or X. The Borrower nor
anyone acting on their respective behalfs has taken or will take any action
which might cause this Agreement or the Notes to violate Regulation U,
Regulation T or any other regulation of the Board of Governors of the Federal
Reserve System or to violate the Exchange Act, in each case as in effect now or
as the same may hereafter be in effect.

         8.13     ERISA. The Borrower and their respective ERISA Affiliates is
in compliance in all material respects with the applicable provisions of ERISA
and the Code and the regulations and published interpretations thereunder. No
ERISA Event has occurred or is reasonably expected to occur that, when taken
together with all other such ERISA Events, could reasonably be expected to
result in a Material Adverse Effect. The present value of all benefit
liabilities under each Plan (based on those assumptions used for purposes of
Statement of Financial Accounting Standards No. 87) did not, as of the last
annual valuation date applicable thereto, exceed by more than $2,000,000 the
fair market value of the assets of such Plan, and the present value of all
benefit liabilities of all underfunded Plans (based on those assumptions used
for purposes of Statement of Financial Accounting Standards No. 87) did not, as
of the last annual valuation dates applicable thereto, exceed by more than
$2,000,000 the fair market value of the assets of all such underfunded Plans.

         8.14     Environmental Compliance.

                  (i)      Except where the failure to be in compliance could
         not present a reasonable likelihood of having a Material Adverse
         Effect, as of the date hereof the Borrower and each Subsidiary of the
         Borrower is in compliance with all Environmental Laws applicable to it
         and to the Business or Assets. The Borrower and each Subsidiary of the
         Borrower is in compliance with all franchises, grants, authorizations,
         permits, licenses, and approvals required under Environmental Laws,
         except for any non-compliance or failure to obtain such Permits which
         could not reasonably be expected to have a Material Adverse Effect. The
         Borrower has caused U.S. Propane or the Master Partnership to submit
         timely and complete applications to renew any expired or expiring
         Permits required pursuant to any Environmental Law, except for any
         non-compliance or failure to obtain such permits which could not
         reasonably be expected to have a Material Adverse Effect. All reports,
         documents, or other submissions required by Environmental Laws to be
         submitted by the Borrower to any Governmental Authority or Person have
         been filed by or on behalf of the Borrower, except where the failure to
         do so would not present a reasonable likelihood of having a Material
         Adverse Effect.

                                       77
<PAGE>

                  (ii)     (a) There is no Hazardous Substance present at any of
         the real property currently owned or leased by the Borrower or any of
         the Subsidiaries of the Borrower except to the extent that such
         presence could not reasonably be expected to have a Material Adverse
         Effect, and (b) to the knowledge of the Borrower, there was no
         Hazardous Substance present at any of the real property formerly owned
         or leased by U.S. Propane or the Master Partnership during the period
         of ownership or leasing by such Person; and with respect to such real
         property and subject to the same knowledge and temporal qualifiers
         concerning Hazardous Substances with respect to formerly owned or
         leased real properties, there has not occurred (x) any release, or to
         the knowledge of the Borrower, any threatened release of a Hazardous
         Substance, or (y) any discharge or, to the knowledge of the Borrower,
         any threatened discharge of any Hazardous Substance into the ground,
         surface or navigable waters which discharge or threatened discharge
         violates any federal, state, local or foreign laws, rules or
         regulations concerning water pollution.

                  (iii)    Neither the Borrower nor any of the Subsidiaries of
         the Borrower has disposed of, transported, or arranged for the
         transportation or disposal of any Hazardous Substance where such
         disposal, transportation, or arrangement would give rise to liability
         pursuant to CERCLA or any analogous state statute other than any such
         liabilities that could not reasonably be expected to have a Material
         Adverse Effect.

                  (iv)     Except as disclosed to the Banks in writing, (a) no
         Lien has been asserted by any Governmental Authority or person
         resulting from the use, spill, discharge, removal, or remediation of
         any Hazardous Substance with respect to any real property currently
         owned or leased by U.S. Propane or the Master Partnership or the
         Borrower, and (b) to the knowledge of the Borrower, no such Lien was
         asserted with respect to any of the real property formerly owned or
         leased by Heritage during the period of ownership or leasing of the
         real property by such Person.

                  (v)      (a) There are no underground storage tanks,
         asbestos-containing materials, polychlorinated biphenyls, or urea
         formaldehyde insulation at any of the real property currently owned or
         leased by the Borrower in violation of any Environmental Law, and (b)
         to the knowledge of the Borrower, there were no underground storage
         tanks, asbestos-containing materials, polychlorinated biphenyls, or
         urea formaldehyde insulation at any of the real property formerly owned
         or leased by U.S. Propane or the Master Partnership in violation of any
         Environmental Law during the period of ownership or leasing of such
         real property by such Person.

                  (vi)     As of the date hereof, any propane is stored, used
         and handled by the Borrower and the Subsidiaries of the Borrower in
         compliance with all applicable Environmental Laws except for any
         storage, use or handling of propane that could not reasonably be
         expected to have a Material Adverse Effect.

         8.15     Pre-emptive Rights. There are no pre-emptive rights to which a
holder of a minority interest in any Subsidiary of the Borrower is entitled.

                                       78
<PAGE>

         8.16     Disclosure. This Agreement, the Notes, the other Loan
Documents, the Operative Agreements, the Memorandum and any other document,
certificate or statement furnished to any Bank by or on behalf of the Borrower,
the General Partner or their respective Subsidiaries or Affiliates, in
connection herewith, taken together, do not contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements contained herein and therein, in light of the circumstances under
which they were made, not misleading. There is no fact known to the Borrower
which has or in the future could reasonably be expected to have (so far as the
Borrower can now foresee) a Material Adverse Effect and which has not been set
forth in this Agreement or in the other documents, certificates and statements
furnished to each the Banks hereunder by or on behalf of the Borrower.

         8.17     Federal Reserve Regulations. Neither the Borrower nor the
Subsidiary of the Borrower will, directly or indirectly, use any of the proceeds
of any Loan for the purpose, whether immediate, incidental or ultimate, of
buying a "margin stock" or of maintaining, reducing or retiring any indebtedness
originally incurred to buy a stock that is currently a "margin stock", or for
any other purpose which might constitute this transaction a "purpose credit"
which is secured "directly or indirectly by margin stock", in each case within
the meaning of Regulation U of the Board of Governors of the Federal Reserve
System (12 C.F.R. 207, as amended), or otherwise take or permit to be taken any
action which would involve a violation of such Regulation U or of Regulation X
(12 C.F.R. 224, as amended) or any other applicable regulation of such Board. No
indebtedness being retired, directly or indirectly, out of the proceeds of the
Loans will be incurred for the purpose of buying or carrying any stock which is
currently a "margin stock", and the Borrower neither owns or has any present
intention of acquiring any amount of such "margin stock".

         8.18     Investment Borrower Act. None of the Borrower or any
Subsidiary of the Borrower is an "investment Borrower", or a Borrower
"controlled" by an "investment Borrower", within the meaning of the Investment
Borrower Act of 1940, as amended.

         8.19     Public Utility Holding Company Act. The Borrower, the General
Partner and each Subsidiary of the Borrower is exempt from all of the provisions
of the Public Utility Holding Company Act of 1935, as amended (the "PUHCA") and
the rules thereunder other than Section 9(a)(2) thereof based upon a no-action
letter from the Commission dated June 19, 1996.

                                   ARTICLE IX

                                EVENTS OF DEFAULT

         9.1      Acceleration. If any of the following conditions or events
("Events of Default") shall occur and be continuing for any reason whatsoever
(and whether such occurrence shall be voluntary or involuntary or come about or
be effected by operation of law or otherwise):

                  (i)      the Borrower defaults in the payment of any principal
         of on any Note when the same becomes due and payable, either by the
         terms thereof or otherwise as herein provided; or

                                       79
<PAGE>

                  (ii)     the Borrower defaults in the payment of any interest
         on any Note for more than 5 days after the same becomes due and
         payable; or

                  (iii)    the Borrower or any Subsidiary of the Borrower
         (whether as primary obligor or as guarantor or other surety) defaults
         in any payment of principal of or interest on any Parity Debt or any
         other Indebtedness other than the Notes (including without limitation
         any Capitalized Lease Obligation, any obligation under a conditional
         sale or other title retention agreement, any obligation issued or
         assumed as full or partial payment for property whether or not secured
         by a purchase money mortgage or any obligation under notes payable or
         drafts accepted representing extensions of credit), beyond any period
         of grace provided with respect thereto, or the Borrower or any
         Subsidiary of the Borrower fails to perform or observe any other
         agreement or term or condition contained in any agreement under which
         any such obligation is created (or if any other event thereunder or
         under any such agreement shall occur and be continuing) and the effect
         of such failure or other event is to cause, or to permit the holder or
         holders of such Indebtedness (or a trustee on behalf of such holder or
         holders) to cause, such obligation to become due or to be repurchased
         prior to any stated maturity, provided that the aggregate amount of all
         Indebtedness as to which such a default (payment or other) shall occur
         and be continuing or such a failure or other event causing or
         permitting acceleration (or resale to the Borrower or any Subsidiary of
         the Borrower) shall occur and be continuing exceeds $2,000,000;
         provided, further, that no waiver, modification or amendment relating
         to any such a default (payment or other) or such a failure or other
         event with respect to any Parity Debt or agreement or instrument
         relating to any Parity Debt shall be effective for purposes of this
         clause (iii) if any consideration (other than the payment of reasonable
         attorney's fees) is given, directly or indirectly, by the Borrower or
         any of its Subsidiaries or Affiliates in respect thereof, unless
         substantially the same consideration is given to the holders of the
         Notes; or

                  (iv)     any representation or warranty made in any writing by
         or on behalf of the Borrower, General Partner or the Master Partnership
         in this Agreement, any other Loan Document or any instrument furnished
         pursuant to this Agreement or any Loan Document shall prove to have
         been false or incorrect in any material respect on the date as of which
         made; or

                  (v)      the Borrower fails to perform, observe or comply with
         any agreement contained in Sections 7B.1 through 7B.14; or

                  (vi)     the Borrower fails to perform or observe any other
         agreement, term or condition contained in this Agreement or the other
         Loan Documents and such failure shall not be remedied within 30 days
         after any Responsible Officer obtains actual knowledge or notice
         thereof; or

                  (vii)    the General Partner, the Borrower or any Significant
         Subsidiary Group makes an assignment for the benefit of creditors or is
         generally not paying its debts as such debts become due; or

                                       80
<PAGE>

                  (viii)   any decree or order for relief in respect of the
         General Partner, the Borrower or any Significant Subsidiary Group is
         entered under any bankruptcy, reorganization, compromise, arrangement,
         insolvency, readjustment of debt, dissolution or liquidation or similar
         law, whether now or hereafter in effect (herein called the "Bankruptcy
         Law"), of any jurisdiction; or

                  (ix)     The General Partner, the Borrower or any Significant
         Subsidiary Group petitions or applies to any tribunal for, or consents
         to, the appointment of, or taking possession by, a trustee, receiver,
         custodian, liquidator or similar official of the General Partner, the
         Borrower or any Significant Subsidiary Group, or of any substantial
         part of the assets of the General Partner, the Borrower or any
         Significant Subsidiary Group, or commences a voluntary case under the
         Bankruptcy Law of the United States or any proceedings (other than
         proceedings for the voluntary liquidation and dissolution of the
         General Partner, the Borrower or any Significant Subsidiary Group)
         relating to the General Partner, the Borrower or any Significant
         Subsidiary Group under the Bankruptcy Law of any other jurisdiction; or

                  (x)      any such petition or application is filed, or any
         such proceedings are commenced, against the General Partner, the
         Borrower or any Significant Subsidiary Group and the General Partner,
         the Borrower or any Significant Subsidiary Group by any act indicates
         its approval thereof, consents thereto or acquiesces therein, or an
         order, judgment or decree is entered appointing any such trustee,
         receiver, custodian, liquidator or similar official, or approving the
         petition in any such proceedings, and such order, judgment or decree
         remains unstayed and in effect for more than 30 days; or

                  (xi)     a judgment or judgments for the payment of money in
         excess of $2,000,000 in the aggregate (except to the extent covered by
         insurance as to which the insurer has acknowledged in writing its
         obligation to cover in full) shall be rendered against the Borrower or
         any Subsidiary of the Borrower and either (i) enforcement proceedings
         have been commenced by any creditor upon such judgment or order or (ii)
         within 45 days after entry thereof, such judgment is not discharged or
         execution thereof stayed pending appeal, or within 45 days after the
         expiration of any such stay, such judgment is not discharged; or

                  (xii)    any order, judgment or decree is entered in any
         proceedings against the General Partner, the Borrower or any
         Significant Subsidiary Group decreeing the dissolution of the General
         Partner, the Borrower or any Significant Subsidiary Group and such
         order, judgment or decree remains unstayed and in effect for more than
         30 days or any other event occurs that results in the termination,
         dissolution or winding up of the Borrower, subject to Section 7B.7, the
         General Partner or any Significant Subsidiary Group; or

                  (xiii)   any order, judgment or decree is entered in any
         proceedings against the Borrower or any of its Subsidiaries decreeing a
         split-up of the Borrower or such Subsidiary which requires the
         divestiture of assets representing a substantial part, or the

                                       81
<PAGE>

         divestiture of the stock of a Subsidiary of the Borrower whose assets
         represent a substantial part of the consolidated assets of the Borrower
         and its Subsidiaries (determined in accordance with GAAP) or which
         requires the divestiture of assets, or stock of a Subsidiary of the
         Borrower, which shall have contributed a substantial part of the
         Consolidated Net Income of the Borrower and its Subsidiaries for any of
         the three fiscal years then most recently ended, and such order,
         judgment or decree shall not be dismissed or execution thereon stayed
         pending appeal or review within 45 days after entry thereof, or in the
         event of such a stay, such order, judgment or decree shall not be
         dismissed within 45 days after such stay expires; or

                  (xiv)    any of the Security Documents shall at any time, for
         any reason cease to be in full force and effect or shall fail to
         constitute a valid, perfected first priority Lien with respect to the
         Collateral subject to Liens permitted by the Security Agreement or
         shall be declared to be null and void in whole or in any material
         respect (i.e., relating to the validity or priority of the Liens
         created by the Security Documents or the remedies available thereunder)
         by the judgment of any court or other Governmental Authority having
         jurisdiction in respect thereof, or if the validity or the
         enforceability of any of the Security Documents shall be contested by
         or on behalf of the Borrower, or the Borrower shall renounce any of the
         Security Documents, or deny that it is bound by the terms of any of the
         Security Documents; or

                  (xv)     any of the events described in clauses (a), (b), (c)
         or (d) shall occur: (a) the General Partner shall be engaged in any
         business or activities other than those permitted by the Partnership
         Agreement as in effect from time to time and in accordance with
         Section 7B.8, or (b) U.S. Propane ceases to be the sole general partner
         of the Borrower or the Master Partnership, or (c) the Specified
         Entities shall own, directly or indirectly through Wholly-Owned
         Subsidiaries, in the aggregate less than 51% of the Capital Stock of
         the General Partner; or (d) a Change of Control during not more than
         any twelve (12) month consecutive period of time.

                  (xvi)    an ERISA Event shall have occurred that, when taken
         together with all other such ERISA Events that have occurred, could
         reasonably be expected to result in liability of the Borrower and its
         ERISA Affiliates in an aggregate amount exceeding $2,000,000; or

                  (xvii)   an event of default under any of the Security
         Documents has occurred and is continuing; or

                  (xviii)  the occurrence of an event of default under the La
         Grange Credit Agreement or any other agreement governing secured
         indebtedness of La Grange relating to (a) bankruptcy, reorganization,
         compromise, arrangement, insolvency, readjustment of debt, dissolution
         or liquidation or similar law with respect to La Grange or any of its
         Subsidiaries, beyond any period of grace provided with respect thereto
         in such agreement, (b) non-payment of such secured indebtedness or any
         other indebtedness of LaGrange or any of its Subsidiaries, subject to
         the minimum dollar amount threshold of such indebtedness set forth in
         such agreement, provided that such non-payment continues

                                       82
<PAGE>

         for a period of 3 business days beyond any period of grace provided
         with respect thereto in such agreement, unless, prior to the end of the
         3 business day period, the lenders party to such agreement have
         accelerated the maturity of such indebtedness thereunder or blocked the
         payment or otherwise limited the payment by La Grange of any scheduled
         "restricted payment" distribution in respect of any partnership or
         other equity interest in La Grange, in which case such 3 business-day
         period shall no longer apply, or (c) any financial covenant default
         with respect to La Grange which has not been cured, waived or amended
         within 45 days of the date on notice of such default was given to the
         lenders party to such agreement, unless, prior to the end of the 45-day
         period, the lenders party to such agreement shall have blocked the
         payment or otherwise limited the payment by La Grange of any scheduled
         "restricted payment" distribution in respect of any partnership or
         other equity interest in La Grange or shall have accelerated the
         maturity of such indebtedness, in which case such 45 day period shall
         no longer apply.

         9.2      Remedies. Upon the occurrence of any Event of Default referred
to in (viii), (ix) or (x) of this Section 9.1 the Commitments shall immediately
terminate and the Notes and all other Indebtedness shall be immediately due and
payable, without further notice of any kind. Upon the occurrence of any other
Event of Default, and without prejudice to any right or remedy of the Banks
under this Agreement or the Loan Documents or under applicable Law of under any
other instrument or document delivered in connection herewith, the Banks may (i)
declare the Commitments terminated or (ii) declare the Commitments terminated
and declare the Notes and the other Indebtedness, or any part thereof, to be
forthwith due and payable, whereupon the Notes and the other Indebtedness, or
such portion as is designated by the Banks shall forthwith become due and
payable, without presentment, demand, notice or protest of any kind, all of
which are hereby expressly waived by the Borrower. No delay or omission on the
part of the Banks in exercising any power or right hereunder or under the Notes,
the Loan Documents or under applicable law shall impair such right or power or
be construed to be a waiver of any default or any acquiescence therein, nor
shall any single or partial exercise by the Banks of any such power or right
preclude other or further exercise thereof or the exercise of any other such
power or right by the Banks. In the event that all or part of the Indebtedness
becomes or is declared to be forthwith due and payable as herein provided, the
Banks shall have the right to set off the amount of all the Indebtedness of the
Borrower owing to the Banks against, and shall have, and is hereby granted by
the Borrower, a lien upon and security interest in, all property of each of the
Borrower in the Banks' possession at or subsequent to such default, regardless
of the capacity in which the Banks possess such property, including but not
limited to any balance or share of any deposit, collection or agency account.
After Default all proceeds received by the Banks may be applied to the
Indebtedness in such order of application and such proportions as the Banks, in
their discretion, shall choose. At any time after the occurrence of any Event of
Default, the Banks may, at their option, cause an audit of any and/or all of the
books, records and documents of the Borrower to be made by auditors satisfactory
to the Banks at the expense of the Borrower. The Banks also shall have, and may
exercise, each and every right and remedy granted to them for default under the
terms of the Security Documents and the other Loan Documents.

         9.3      Other Remedies. If any Event of Default or Default shall occur
and be continuing, the holder of any Note may proceed to protect and enforce its
rights under this

                                       83
<PAGE>

Agreement and such Note by exercising such remedies as are available to such
holder in respect thereof under applicable law, either by suit in equity or by
action at law, or both, whether for specific performance of any covenant or
other agreement contained in this Agreement or in aid of the exercise of any
power granted in this Agreement. No remedy conferred in this Agreement upon the
holder of any Note is intended to be exclusive of any other remedy, and each and
every such remedy shall be cumulative and shall be in addition to every other
remedy conferred herein or now or hereafter existing at law or in equity or by
statute or otherwise.

                                    ARTICLE X

                                 LOAN OPERATIONS

         10.1     Interests in Loans/Commitments. The percentage interest of
each Bank in the Loans and Letters of Credit, and the Commitments, shall be
computed based on the maximum principal amount for each Bank as set forth below
(the "Lenders Schedule"):

<TABLE>
<CAPTION>
                                          MAXIMUM                    MAXIMUM WORKING           MAXIMUM
                                     ACQUISITION LOAN                  CAPITAL LOAN          COMMITMENTS     PERCENTAGE
          BANK                          COMMITMENTS                    COMMITMENTS              AMOUNT        INTEREST
          ----                          -----------                    -----------              ------        --------
<S>                                  <C>                             <C>                     <C>             <C>
BOK                                     $16,000,000                    $16,000,000           $ 32,000,000      22.535%
Bank One                                $15,000,000                    $15,000,000           $ 30,000,000      21.127%
MidFirst                                $10,000,000                    $10,000,000           $ 20,000,000      14.085%
Local                                   $ 7,500,000                    $ 7,500,000           $ 15,000,000      10.563%
Fifth Third                             $ 7,500,000                    $ 7,500,000           $ 15,000,000      10.563%
Arvest                                  $ 2,500,000                    $ 2,500,000           $  5,000,000       3.521%
US Bank                                 $12,500,000                    $12,500,000           $ 25,000,000      17.606%

TOTAL                                   $71,000,000                    $71,000,000           $142,000,000     100.000%
</TABLE>

The Lenders Schedule percentage interests, as from time to time in effect and
reflected in the Register, are referred to as the "Percentage Interests" with
respect to all or any portion of the Loans and Letters of Credit, and the
Commitments.

         10.2     Administrative Agent's Authority to Act. Each of the Banks
appoints and authorizes BOk to act for the Banks as Administrative Agent in
connection with the transactions contemplated by this Agreement and the other
Loan Documents on the terms set forth herein. In acting hereunder, such
Administrative Agent is acting for the account of BOk to the extent of its
Percentage Interest and for the account of each other Bank to the extent of such
Bank's Percentage Interest, and all action in connection with the enforcement
of, or the exercise of any remedies (other than the Banks' rights of set-off as
provided herein or in any other Loan Document) in respect of the Loans and the
Indebtedness shall be taken by such Administrative Agent.

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         10.3     Borrower to Pay Administrative Agent. The Borrower shall be
fully protected in making all payments in respect of the Notes evidencing the
Credit Obligations to the Administrative Agent, in relying upon consents,
modifications and amendments executed by such Administrative Agent purportedly
on the Banks' behalf, and in dealing with such Administrative Agent as herein
provided. Upon three (3) Business Days notice, such Administrative Agent may
charge the accounts of the Borrower, on the dates when the amounts thereof
become due and payable, with the amounts of the principal of and interest on the
Loans, including any amounts paid by such Administrative Agent to third parties
under Letters of Credit or drafts presented thereunder, commitment fees, Letter
of Credit issuance fees and processing/application fees pertaining thereto and
all other fees and amounts owing under any Loan Document.

         10.4     Bank Operations for Advances, Letters of Credit.

                  10.4.1   Advances. On the funding date for each Loan, each
         Bank shall advance to the Administrative Agent in immediately available
         funds such Bank's Percentage Interest in the portion of a Loan advanced
         on such funding date prior to 12:00 noon (Tulsa, Oklahoma time). If
         such funds are not received at such time, but all applicable conditions
         set forth in Article VI have been satisfied, each Bank authorizes and
         requests such Administrative Agent to advance for the Bank's account,
         pursuant to the terms hereof, the Bank's respective Percentage Interest
         in such portion of such Loan and agrees to reimburse such
         Administrative Agent in immediately available funds for the amount
         thereof prior to 3:00 p.m. (Tulsa, Oklahoma time) on the day any
         portion of such Loan is advanced hereunder; provided, however, that
         such Administrative Agent is not authorized to make any such advance
         for the account of any Bank who has previously notified the
         Administrative Agent in writing that such Bank will not be performing
         its obligations to make further advances hereunder; and provided,
         further, that such Administrative Agent shall be under no obligation to
         make any such advance.

                  10.4.2   Letters of Credit. Each of the Banks authorizes and
         requests each Letter of Credit Issuer to issue the Letters of Credit
         provided for in Section 2.3 and agrees to purchase a participation in
         each of such Letters of Credit in an amount equal to its Percentage
         Interest in the amount of each such Letter of Credit. Promptly upon the
         request of any Letter of Credit Issuer, each Bank shall reimburse such
         Letter of Credit Issuer in immediately available funds for such Bank's
         Percentage Interest in the amount of all obligations to third parties
         incurred by the Letter of Credit Issuer in respect of each Letter of
         Credit and each draft accepted under a Letter of Credit to the extent
         not timely reimbursed by the Borrower. Each Letter of Credit Issuer
         will notify each Bank (and the Administrative Agent if the
         Administrative Agent is not the Letter of Credit Issuer) of the
         issuance of each Letter of Credit, the amount and date of payment of
         any draft drawn or accepted under a Letter of Credit and whether in
         connection with the payment of any such draft the amount thereof was
         added to the Working Capital Loan or was reimbursed by the Borrower.

                  10.4.3   Administrative Agent to Allocate Payments. All
         payments of principal and interest in respect of the extensions of
         credit made pursuant to this Agreement,

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         reimbursement of amounts paid by each Letter of Credit Issuer to third
         parties under Letters of Credit or drafts presented thereunder,
         commitment fees, Letter of Credit issuance fees and other fees under
         this Agreement (except for the standard Letter of Credit
         application/processing fees of any Letter of Credit Issuer and any fees
         due to the Administrative Agent), which shall not be shared by the
         Banks shall, as a matter of convenience, be made by the Borrower to the
         applicable Letter of Credit Issuer or the applicable Agent, as the case
         may be. The share of each Bank shall be credited to such Bank by the
         Administrative Agent, in immediately available funds in such manner
         that the principal amount of the Loans constituting Credit Obligations
         to be paid shall be paid proportionately in accordance with the Banks'
         respective Percentage Interests in such Loans, except as otherwise
         provided in this Agreement. Under no circumstances shall any Bank be
         required to produce or present its Notes as evidence of its interests
         in the Loans constituting Credit Obligations in any action or
         proceeding relating to the Loans constituting Credit Obligations.

                  10.4.4   Delinquent Banks; Nonperforming Banks. In the event
         that any Bank fails to reimburse the Administrative Agent, pursuant to
         Section 10.4.1 for the Percentage Interest of such Bank (a "Delinquent
         Bank") in any credit advanced by such Administrative Agent pursuant
         hereto, overdue amounts (the "Delinquent Payment") due from the
         Delinquent Bank to such Administrative Agent shall bear interest,
         payable by the Delinquent Bank on demand, at a per annum rate equal to
         (a) the Federal Funds Rate for the first three days overdue and (b) the
         sum of two percentage points (2%) plus the Federal Funds Rate for any
         longer period. Such interest shall be payable to such Administrative
         Agent for its own account for the period commencing on the date of the
         Delinquent Payment and ending on the date the Delinquent Bank
         reimburses such Administrative Agent on account of the Delinquent
         Payment (to the extent not paid by the Borrower as provided below) and
         the accrued interest thereon (the "Delinquency Period"), whether
         pursuant to the assignments referred to below or otherwise. Upon notice
         by such Administrative Agent, the Borrower will pay to such
         Administrative Agent the principal (but not the interest) portion of
         the Delinquent Payment. During the Delinquency Period, in order to make
         reimbursements for the Delinquent Payment and accrued interest thereon,
         the Delinquent Bank shall be deemed to have assigned to such
         Administrative Agent all interest, commitment fees and other payments
         made by the Borrower under Articles II, III and IV hereof that would
         have thereafter otherwise been payable under the Loan Documents to the
         Delinquent Bank. During any other period in which any Bank is not
         performing its obligations to extend credit under Article II hereof (a
         "Nonperforming Bank"), the Nonperforming Bank shall be deemed to have
         assigned to each Bank that is not a Nonperforming Bank (a "Performing
         Bank") such Performing Banks' respective Percentage Interest in all
         principal and other payments made by the Borrower that would have
         thereafter otherwise been payable thereunder to the Nonperforming Bank.
         Such Administrative Agent shall credit a portion of such payments to
         each Performing Bank in an amount equal to the Percentage Interest of
         such Performing Bank in an amount equal to the Percentage Interest of
         such Performing Bank divided by one minus the Percentage Interest of
         the Nonperforming Bank until the respective portions of the Loans owed
         to all the Banks are the same as the Percentage Interests of the Banks
         immediately prior to the failure of the Nonperforming Bank to

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         perform its obligations under Article II hereof. The foregoing
         provisions shall be in addition to any other remedies the
         Administrative Agent, the Performing Banks or the Borrower may have
         under law or equity against the Delinquent Bank as a result of the
         Delinquent Payment or against the Nonperforming Bank as a result of its
         failure to perform its obligations under Article II hereof.

         10.5     Sharing of Payments. To the extent permitted by applicable
Bank Legal Requirements and subject to the provisions of the Intercreditor
Agreement, each Bank agrees that (i) if by exercising any right of set-off or
counterclaim or otherwise, it shall receive payment of (a) a proportion of the
aggregate amount due with respect to its Percentage Interest in the Loans and
Letter of Credit Exposure which is greater than (b) the proportion received by
any other Bank in respect of the aggregate amount due with respect to such other
Bank's Percentage Interest in the Loans and Letter of Credit Exposure and (ii)
if such inequality shall continue for more than 10 days, the Bank receiving such
proportionately greater payment shall purchase participations in the Percentage
Interests in the Loans and Letter of Credit Exposure held by the other Banks,
and such other adjustments shall be made from time to time (including rescission
of such purchases of participations in the event the unequal payment originally
received is recovered from such Bank through bankruptcy proceedings or
otherwise), as may be required so that all such payments of principal and
interest with respect to the Loans and Letter of Credit Exposure held by the
Banks shall be shared by the Banks pro rata in accordance with their respective
Percentage Interests; provided, however, that this Section 10.5 shall not impair
the right of any Bank to exercise any right of set-off or counterclaim it may
have and to apply the amount subject to such exercise to the payment of
Indebtedness of Borrower other than Borrower's Indebtedness with respect to the
Loans and Letter of Credit Exposure. Each Bank that grants a participation in
the Loans and Commitments to a Credit Participant shall require as a condition
to the granting of such participation that such Participant agree to share
payments received in respect of the Indebtedness as provided in this Section
10.5. The provisions of this Section 10.5 are for the sole and exclusive benefit
of the Banks and no failure of any Bank to comply with the terms hereof shall be
available to either Borrower as a defense to the payment of the Loans.

         10.6     Amendments, Consents, Waivers. Except as otherwise set forth
herein, the Administrative Agent may (and upon the written request of the
Required Banks the Administrative Agent shall) take or refrain from taking any
action under this Agreement or any other Loan Document, including giving its
written consent to any modification of or amendment to and waiving in writing
compliance with any covenant or condition in this Agreement or any other Loan
Document or any Default or Event of Default, all of which actions shall be
binding upon all of the Banks; provided, however, that:

                  (i)      Without the written consent of the Banks owning at
         least two thirds (2/3) of the Percentage Interests (other than
         Delinquent Banks during the existence of a Delinquency Period so long
         as such Delinquent Bank is treated the same as the other Banks with
         respect to any actions enumerated below), no written modification of,
         amendment to, consent with respect to, waiver of compliance with or
         waiver of a Default under, any of the Loan Documents shall be made,
         including without limitation, Sections

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         7B.1 through 7B.14 of this Agreement, the related defined terms or this
         Section 10.6(i) shall be made.

                  (ii)     Without the written consent of such Banks as own 100%
         of the Percentage Interests (other than Delinquent Banks during the
         existence of a Delinquency Period so long as such Delinquent Bank is
         treated the same as the other Banks with respect to any actions
         enumerated below):

                           (a)      No reduction shall be made in (A) the amount
                  of principal of any of the Loans or reimbursement obligations
                  for payments made under Letters of Credit, (B) the interest
                  rate on the Loans or (C) the Letter of Credit issuance fees
                  (excluding, however, Letter of Credit processing/application
                  fees, the amount of which shall be within the sole discretion
                  of each Letter of Credit Issuer) or commitment (non-usage)
                  fees.

                           (b)      No change shall be made in the stated time
                  of payment of all or any portion of any of the Loans or
                  interest thereon or reimbursement of payments made under
                  Letters of Credit or fees relating to any of the foregoing
                  payable to all of the Banks and no waiver shall be made of any
                  Default under Section 9.1(i) and (ii) hereof.

                           (c)      No increase shall be made in the amount, or
                  extension of the term, of either Commitment beyond that
                  provided for under Article II.

                           (d)      Except as otherwise provided in the
                  Intercreditor Agreement, no alteration shall be made of the
                  Banks' rights of set-off contained herein or in the other Loan
                  Documents.

                           (e)      Except as otherwise provided in the
                  Intercreditor Agreement, no release of any Collateral shall be
                  made (except that the Collateral Agent may release particular
                  items of Collateral in dispositions permitted by the Security
                  Documents in accordance with the terms and provisions of the
                  Intercreditor Agreement and may release all Collateral upon
                  payment in full of the Loans evidenced by the Notes and
                  termination of the Commitments together with payment of all of
                  the Private Placement Notes and Parity Debt without the
                  written consent of the Banks).

                           (f)      No amendment to or modification of this
                  Section 10.6(ii) shall be made.

         10.7     Administrative Agent's Resignation. The Administrative Agent
may resign at any time by giving at least 30 days' prior written notice of its
intention to do so to each other of the Banks and the Borrower and upon the
appointment by the Required Banks of a successor Administrative Agent
satisfactory to the Borrower. If no successor Administrative Agent shall have
been so appointed and shall have accepted such appointment within 45 days after
the retiring Administrative Agent's giving of such notice of resignation, then
the retiring

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Administrative Agent may with the consent of the Borrower, which shall not be
unreasonably withheld, appoint a successor Administrative Agent which shall be a
bank or a trust company organized under the laws of the United States of America
or any state thereof and having a combined capital, surplus and undivided profit
of at least $50,000,000; provided, however, that any successor Administrative
Agent appointed under this sentence may be removed upon the written request of
the Required Banks, which request shall also appoint a successor Administrative
Agent satisfactory to the Borrower. Upon the appointment of a new Administrative
Agent hereunder, the term "Administrative Agent" shall for all purposes of this
Agreement thereafter mean such successor. After any retiring Administrative
Agent's resignation hereunder as an Administrative Agent, or the removal
hereunder of any successor Administrative Agent, the provisions of this
Agreement shall continue to inure to the benefit of such Administrative Agent as
to any actions taken or omitted to be taken by it while it was an Administrative
Agent under this Agreement.

         10.8     Concerning the Agents.

                  10.8.1   Action in Good Faith. The Agents and their respective
         officers, directors, employees and agents shall be under no liability
         to any of the Banks or to any future holder of any interest in the
         Indebtedness for any action or failure to act taken or suffered in good
         faith, and any action or failure to act in accordance with an opinion
         of its counsel shall conclusively be deemed to be in good faith. The
         Agents shall in all cases be entitled to rely, and shall be fully
         protected in relying, on instructions given to the Agents by the
         Required Holders of the Notes evidencing the Indebtedness as provided
         in this Agreement.

                  10.8.2   No Implied Duties. The Agents shall have and may
         exercise such powers as are specifically delegated to the Agents under
         this Agreement or any other Loan Document together with all other
         powers incidental thereto. The Agents shall have no implied duties to
         any Person or any obligation to take any action under this Agreement or
         any other Loan Document except for action specifically provided for in
         this Agreement or any other Loan Document to be taken by the Agents.
         Before taking any action under this Agreement or any other Loan
         Document, the Agents may request an appropriate specific indemnity
         satisfactory to it from each Bank in addition to the general indemnity
         provided for in Section 10.11. Until the Agents have received such
         specific indemnity, the Agents shall not be obligated to take (although
         such Agent may in its sole discretion take) any such action under this
         Agreement or any other Loan Document. Each Bank confirms that the
         Agents do not have a fiduciary relationship to them under the Loan
         Documents. The Borrower and its Subsidiaries party hereto confirm that
         neither the Agents nor any other Bank has a fiduciary relationship to
         them under the Loan Documents.

                  10.8.3   Validity. The Agents shall not be responsible to any
         Bank or any future holder of any interest in the Loans and Indebtedness
         (a) for the legality, validity, enforceability or effectiveness of this
         Agreement or any other Loan Document, (b) for any recitals, reports,
         representations, warranties or statements contained in or made in
         connection with this Agreement or any other Loan Document, (c) for the
         existence or

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         value of any assets included in any security for the Loans and
         Indebtedness, (d) for the effectiveness of any Lien purported to be
         included in the Collateral, (e) for the specification or failure to
         specify any particular assets to be included in the Collateral, or (f)
         unless the Agents shall have failed to comply with Section 10.8.1, for
         the perfection of the security interests in the Collateral.

                  10.8.4   Compliance. The Agents shall not be obligated to
         ascertain or inquire as to the performance or observance of any of the
         terms of this Agreement or any other Loan Document; and in connection
         with any extension of credit under this Agreement or any other Loan
         Document, the Agents shall be fully protected in relying on a
         certificates of the Borrower as to the fulfillment by the Borrower of
         any conditions to such extension of credit.

                  10.8.5   Employment Agents and Counsel. The Agents may execute
         any of their respective duties as Agents under this Agreement or any
         other Loan Document by or through employees, agents and
         attorneys-in-fact and shall not be responsible to any of the Banks, the
         Borrower for the default or misconduct of any such Agents or
         attorneys-in-fact selected by the Agent acting in good faith. The
         Agents shall be entitled to advice of counsel concerning all matters
         pertaining to the agency hereby created and its duties hereunder or
         under any other Loan Document.

                  10.8.6   Reliance on Documents and Counsel. The Agents shall
         be entitled to rely, and shall be fully protected in relying, upon any
         affidavit, certificate, cablegram, consent, instrument, letter, notice,
         order, document, statement, telecopy, telegram, telex or teletype
         message or writing reasonably believed in good faith by the Agents to
         be genuine and correct and to have been signed, sent or made by the
         Person in question, including any telephonic or oral statement made by
         such Person, and, with respect to legal matters, upon an opinion or the
         advice of counsel selected by such Agent.

                  10.8.7   Agents' Reimbursement. Each of the Banks severally
         agrees to reimburse the Agents, in the amount of such Bank's Percentage
         Interest, for any reasonable expenses not reimbursed by the Borrower
         (without limiting the obligation of the Borrower to make such
         reimbursement): (a) for which the Agents are entitled to reimbursement
         by the Borrower under this Agreement or any other Loan Document, and
         (b) after the occurrence of a Default, for any other reasonable
         expenses incurred by the Agents on the Banks' behalf in connection with
         the enforcement of the Banks' rights under this Agreement or any other
         Loan Document.

         10.9     Rights as a Bank. With respect to any Loan(s) or advance(s)
extended by it hereunder, each of the Agents shall have the same rights,
obligations and powers hereunder as any other Bank and may exercise such rights
and powers as though it were not an Agent, and unless the context otherwise
specifies, the Agents shall be treated in their respective individual capacities
as though they were not the Agents hereunder. Without limiting the generality of
the foregoing, the Percentage Interest of each Agent shall be included in any
computations of Percentage Interests. Each Agent and its Affiliates may accept
deposits from, lend money to, act as trustee for and generally engage in any
kind of banking or trust business with the Borrower, any of its Subsidiaries or
any Affiliate of any of them and any Person who may do business with or own an
equity interest in the Borrower,

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any of its Subsidiaries or any Affiliate of any of them, all as if such Agent
were not one of the Agents and without any duty to account therefor to the other
Banks.

         10.10    Independent Credit Decision. Each of the Banks acknowledges
that it has independently and without reliance upon either of the Agents, based
on the financial statements and other documents referred to in Section 8.4, on
the other representations and warranties contained herein and on such other
information with respect to the Borrower and its Subsidiaries as such Bank
deemed appropriate, made such Bank's own credit analysis and decision to enter
into this Agreement and to make the extensions of credit provided for hereunder.
Each Bank represents to the Agents that such Bank will continue to make its own
independent credit and other decisions in taking or not taking action under this
Agreement or any other Loan Document. Each Bank expressly acknowledges that
neither the Agents nor any of their respective officers, directors, employees,
Agents, attorneys-in-fact or Affiliates has made any representations or
warranties to such Bank, and no act by either of the Agents taken under this
Agreement or any other Loan Document, including any review of the affairs of the
Borrower and its Subsidiaries, shall be deemed to constitute any representation
or warranty by either of the Agents. Except for notices, reports and other
documents expressly required to be furnished to each Bank by the Administrative
Agent under this Agreement or any other Loan Document, the Agents shall not have
any duty or responsibility to provide any Bank with any credit or other
information concerning the business, operations, property, condition, financial
or otherwise, or creditworthiness of the Borrower or any Subsidiary which may
come into the possession of either of the Agents or any of their respective
officers, directors, employees, agents, attorneys-in-fact or Affiliates.

         10.11    Indemnification. The holders of the Indebtedness shall
indemnify the Agents and their respective officers, directors, employees and
Agents (to the extent not reimbursed by the Borrower and without limiting the
obligation of the Borrower to do so), pro rata in accordance with their
respective Percentage Interests, from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind whatsoever which may at any time be
imposed on, incurred by or asserted against either of the Agents or such Persons
relating to or arising out of this Agreement, any other Loan Document, the
transactions contemplated hereby or thereby, or any action taken or omitted by
either of the Agents in connection with any of the foregoing; provided, however,
that the foregoing shall not extend to actions or omissions which are taken by
either or both of the Agents with gross negligence or willful misconduct.

         10.12    Procedure for Commitment Increases and Additional Banks. This
Agreement permits certain increases in a Bank's Commitments and the admission of
Additional Banks providing new Commitments, it being acknowledged that the
existing aggregate Maximum Commitment Amount of the Banks listed in the Lenders
Schedule is $142,000,000 and that this Agreement (without further amendment or
modification) contemplates and permits Commitments in the aggregate maximum
amount of $150,000,000. Any amendment hereto for such an increase or addition
shall be in the form attached hereto as Exhibit 10.12 and shall only require the
written signatures of the Administrative Agent, the Borrower and the Bank(s)
being

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added or increasing their Commitments. In addition, within a reasonable time
after the effective date of any increase, the Administrative Agent shall, and is
hereby authorized and directed to, revise the Lenders Schedule reflecting such
increase and shall distribute such revised Lenders Schedule to each of the Banks
and the Borrowers, whereupon such revised Lenders Schedule shall replace the old
Lenders Schedule and become part of this Agreement. On the Business Day
following any such increase, all outstanding Base Rate Loans shall be
reallocated among the Banks (including any newly added Banks) in accordance with
the Banks' respective revised Percentage Interests. Eurodollar Loans shall not
be reallocated among the Banks prior to the expiration of the applicable
Eurodollar Interest Period in effect at the time of any such increase.

                                   ARTICLE XI

                           ASSIGNMENTS/PARTICIPATIONS

         11.      Successors and Assigns; Bank Assignment and Participations.
Any reference in this Agreement to any party hereto shall be deemed to include
the successors and assigns of such party, and all covenants and agreements by or
on behalf of the Borrower, the Agents or the Banks that are contained in this
Agreement or any other Loan Documents shall bind and inure to the benefit of
their respective successors and assigns; provided, however, that (a) the
Borrower may not assign its rights or obligations under this Agreement except
for mergers or liquidations permitted by Section 7B.7, and (b) the Banks shall
be not entitled to assign their respective Percentage Interests in the Loans
evidenced by the Notes hereunder except as set forth below in this Section 11.

         11.1     Assignments by Banks.

                  11.1.1   Assignees and Assignment Procedures. Each Bank may
         (i) without the consent of the Agents or the Borrower if the proposed
         assignee is already a Bank hereunder or a Wholly Owned Subsidiary of
         the same corporate parent of which the assigning Bank is a Subsidiary,
         or (ii) otherwise with the consents of the Agents and (so long as no
         Event of Default exists) the Borrower (which consents will not be
         unreasonably withheld), in compliance with applicable laws in
         connection with such assignment, assign to one or more commercial banks
         or other financial institutions (each, an "Assignee") all or a portion
         of its interests, rights and obligations under this Agreement and the
         other Loan Documents, including all or a portion, which need not be pro
         rata among the Loans and the Letter of Credit Exposure, of its
         Commitments, the portion of the Loans and Letter of Credit Exposure at
         the time owing to it and the Notes held by it, but excluding its rights
         and obligations as one of the Agents; provided, however, that:

                           (i)      the aggregate amount of the Commitments of
                  the assigning Bank subject to each such assignment to any
                  Assignee other than another Bank (determined as of the date
                  the Assignment and Acceptance with respect to such assignment
                  is delivered to the Administrative Agent) shall be not less
                  than $1,000,000 and in increments of $500,000; and

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                           (ii)     the parties to each such assignment shall
                  execute and deliver to the Administrative Agent an Assignment
                  and Acceptance (the "Assignment and Acceptance") in the form
                  satisfactory to the Administrative Agent and the Collateral
                  Agent, together with the Note or Notes subject to such
                  assignment and a processing and recordation fee of $500
                  payable to the Administrative Agent by the assigning Bank or
                  the Assignee.

                           Upon acceptance and recording pursuant to Section
                  11.1.4, from and after the effective date specified in each
                  Assignment and Acceptance (which effective date shall be at
                  least five (5) Banking Days after the execution thereof unless
                  waived in writing by the Administrative Agent):

                                    (A)      the Assignee shall be a party
                           hereto and, to the extent provided in such Assignment
                           and Acceptance, have the rights and obligations of a
                           Bank under this Agreement; and

                                    (B)      the assigning Bank shall, to the
                           extent provided in such assignment, be released from
                           its obligations under this Agreement (and, in the
                           case of an Assignment and Acceptance covering all or
                           the remaining portion of an assigning Bank's rights
                           and obligations under this Agreement, such Bank shall
                           cease to be a party hereto but shall continue to be
                           entitled to the benefits of the Applicable Rate
                           provisions hereof, as well as to any fees accrued for
                           its account hereunder and not yet paid).

                  11.1.2   Terms of Assignment and Acceptance. By executing and
         delivering an Assignment and Acceptance, the assigning Bank and
         Assignee shall be deemed to confirm to and agree with each other and
         the other parties hereto as follows:

                           (a)      other than the representation and warranty
                  that it is the legal and beneficial owner of the interest
                  being assigned thereby free and clear of any adverse claim,
                  such assigning Bank makes no representation or warranty and
                  assumes no responsibility with respect to any statements,
                  warranties or representations made in or in connection with
                  this Agreement or the execution, legality, validity,
                  enforceability, genuineness, sufficiency or value of this
                  Agreement, any other Loan Document or any other instrument or
                  document furnished pursuant hereto;

                           (b)      such assigning Bank makes no representation
                  or warranty and assumes no responsibility with respect to the
                  financial condition of the Borrower and its Subsidiaries or
                  the performance or observance by the Borrower or any of its
                  Subsidiaries of any of its obligations under this Agreement,
                  any other Loan Document or any other instrument or document
                  furnished pursuant hereto;

                           (c)      such Assignee confirms that it has received
                  a copy of this Agreement, together with copies of the most
                  recent quarterly or annual financial statements delivered
                  pursuant to Section 7A.1 and such other documents and

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                  information as it has deemed appropriate to make its own
                  credit analysis and decision to enter into such Assignment and
                  Acceptance;

                           (d)      such Assignee will independently and without
                  reliance upon the Administrative Agent, such assigning Bank or
                  any other Bank, 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;

                           (e)      such Assignee appoints and authorizes the
                  Administrative Agent to take such action as the Administrative
                  Agent on its behalf and to exercise such powers under this
                  Agreement as are delegated to the Administrative Agent by the
                  terms hereof, together with such powers as are reasonably
                  incidental thereto; and

                           (f)      such Assignee agrees that it will perform in
                  accordance with the terms of this Agreement all the
                  obligations which are required to be performed by it as a
                  Bank.

                  11.1.3   Register. The Administrative Agent, shall maintain at
         its main Tulsa, Oklahoma, banking office a register (the "Register")
         for the recordation of (a) the names and addresses of the Banks and the
         Assignees which assume rights and obligations pursuant to an assignment
         under Section 11.1.1, (b) the Percentage Interest of each such Bank as
         set forth in Section 11.1 and (c) the amount of the Loans and Letter of
         Credit Exposure owing to each Bank from time to time. The entries in
         the Register shall be conclusive, in the absence of manifest error, and
         the Borrower, BOK, as such Administrative Agent and the Banks may treat
         each Person whose name is registered therein for all purposes as a
         party to this Agreement. The Register shall be available for inspection
         by the Borrower or any Bank at any reasonable time and from time to
         time upon reasonable prior notice.

                  11.1.4   Acceptance of Assignment and Assumption. Upon its
         receipt of a completed Assignment and Acceptance executed by an
         assigning Bank and an Assignee, in exchange for the Notes subject to
         such assignment, together with the Note or Notes subject to such
         assignment, and the processing and recordation fee referred to in
         Section 11.1.1, the Administrative Agent shall (a) accept such
         Assignment and Acceptance, (b) record the information contained therein
         in the Register and (c) give prompt notice thereof to the Borrower.
         Within five (5) Business Days after receipt of notice, the Borrower, at
         its own expense, shall execute and deliver to the Administrative Agent,
         in exchange for the surrendered Note or Notes, a new Note or Notes to
         the order of such Assignee in a principal amount equal to the
         applicable Commitments and Loans assumed by it pursuant to such
         Assignment and Acceptance and, if the assigning Bank has retained
         Commitments and Loans, a new Note or Notes to the order of such
         assigning Bank in a principal amount equal to the applicable
         Commitments and its Percentage Interest in the Loans retained by it.
         Such new Note or Notes shall be in an aggregate principal amount equal
         to the aggregate principal amount of such surrendered Note or Notes,
         and shall be dated the date of the surrendered Note or Notes which it
         or they replace. All such Notes so replaced shall be delivered by the
         Administrative Agent to the Borrower or,

                                       94
<PAGE>

         alternatively, at such Administrative Agent's election, marked
         appropriately to evidence the replacement thereof by such replacement
         Note(s).

                  11.1.5   Federal Reserve Bank. Notwithstanding the foregoing
         provisions of this Section 11, any Bank may at any time pledge or
         assign all or any portion of such Bank's rights under this Agreement
         and the other Loan Documents to a Federal Reserve Bank; provided,
         however, that no such pledge or assignment shall release such Bank from
         such Bank's obligations hereunder or under any other Loan Document.

                  11.1.6   Further Assurances. The Borrower and its Subsidiaries
         shall sign such documents and take such other actions from time to time
         reasonably requested by an Assignee to enable it to share in the
         benefits of the rights created by the Loan Documents.

         11.2     Credit Participants. Each Bank may, without the consent of the
Borrower and with the consent of the Administrative Agent, in compliance with
applicable laws in connection with such participation, sell to one or more
commercial banks or other financial institutions (each a "Credit Participant")
participations in all or a portion of its interests, rights and obligations
under this Agreement and the other Loan Documents (including all or a portion of
its Commitments, the Loans and Letter of Credit exposure owing to it and the
Notes held by it); provided, however, that:

                  (i)      such Bank's obligations under this Agreement shall
         remain unchanged;

                  (ii)     such Bank shall remain solely responsible to the
         other parties hereto for the performance of such obligations;

                  (iii)    the Credit Participant shall be entitled to the
         benefit of any cost protection provisions contained in the Credit
         Agreement, but shall not be entitled to receive any greater payment
         thereunder than the selling Bank would have been entitled to receive
         with respect to the interest so sold if such interest had not been
         sold; and

                  (iv)     the Borrower, the Administrative Agent and the other
         Banks shall continue to deal solely and directly with such Bank in
         connection with such Bank's rights and obligations under this
         Agreement, and such Bank shall retain the sole right as one of the
         Banks to vote with respect to the enforcement of the obligations of the
         Borrower relating to the Loans and Letter of Credit Exposure and the
         approval of any amendment, modification or waiver of any provision of
         this Agreement (other than amendments, modifications, consents or
         waivers described in Section 10.6(ii)).

         Borrower agrees, to the fullest extent permitted by applicable law,
         that any Credit Participant and any Bank purchasing a participation
         from another Bank pursuant to Section 11.1 may exercise all rights of
         payment (including the right of set-off), with respect to its
         participation as fully as if such Credit Participant or such Bank were
         the direct creditor of the Borrower and a Bank hereunder in the amount
         of such participation. Upon receipt of notice of the address of each
         Credit Participant, the Borrower shall thereafter supply such Credit
         Participants with the same information and reports

                                       95
<PAGE>

         communicated to the Banks. The Borrower hereby acknowledges and agrees
         that Credit Participants shall be deemed a holder of the applicable
         Notes to the extent of their respective participation, and the Borrower
         hereby waives its right, if any, to offset amounts owing to the
         Borrower from the Banks against each Credit Participant's portion of
         the applicable Notes.

         11.3     Replacement of Bank. In the event that any Bank or, to the
extent applicable, any Credit Participant (the "Affected Bank"):

                  (a)      fails to perform its obligations to fund any portion
         of the Loans or to issue any Letter of Credit when required to do so by
         the terms of the Loan Documents, or fails to provide its portion of any
         Eurodollar Pricing Option pursuant to Section 3.2.1 or on account of a
         Bank Legal Requirement as contemplated by Section 3.2.5;

                  (b)      demands payment under the Reserve provisions of
         Section 3.5, the Tax provisions of Section 3.6, the Capital Adequacy
         provisions of Section 3.7 or the Regulatory Change provisions in
         Section 3.8 in an amount the Borrower deems materially in excess of the
         amounts with respect thereto demanded by the other Banks; or

                  (c)      refuses to consent to a proposed amendment,
         modification, waiver or other action requiring consent of the holders
         of 100% of the Percentage Interests under Section 10.6(ii) that is
         consented to by the other Banks;

then, so long as no Event of Default exists, the Borrower shall have the right
to seek a replacement Bank which is reasonably satisfactory to the
Administrative Agent (the "Replacement Bank"). The Replacement Bank shall
purchase the interests of the Affected Bank in the Loans, Letters of Credit and
its Commitments and shall assume the obligations of the Affected Bank hereunder
and under the other Loan Documents upon execution by the Replacement Bank of an
Assignment and Acceptance and the tender by it to the Affected Bank of a
purchase price agreed between it and the Affected Bank (or, if they are unable
to agree, a purchase price in the amount of the Affected Bank's Percentage
Interest in the Loans and Letter of Credit Exposure, or appropriate credit
support for contingent amounts included therein, and all other outstanding
Credit Obligations then owed to the Affected Bank). Such assignment by the
Affected Bank shall be deemed an early termination of any Eurodollar Pricing
Option to the extent of the Affected Bank's portion thereof, and the Borrower
will pay to the Affected Bank any resulting amounts due under Section 3.2.4.
Upon consummation of such assignment, the Replacement Bank shall become party to
this Agreement as a signatory hereto and shall have all the rights and
obligations of the Affected Bank under this Agreement and the other Loan
Documents with a Percentage Interest equal to the Percentage Interest of the
Affected Bank, the Affected Bank shall be released from its obligations
hereunder and under the Loan Documents, and no further consent or action by any
party shall be required. Upon the consummation of such assignment, the Borrower,
the Administrative Agent and the Affected Bank shall make appropriate
arrangements so that a new Note or Notes are issued to the Replacement Bank. The
Borrower shall sign such documents and take such other actions reasonably
requested by the Replacement Bank to enable it to share in the benefits of the
rights created by the Loan Documents. Until the consummation of an assignment in
accordance with the foregoing

                                       96
<PAGE>

provisions of this Section 11.3, the Borrower shall continue to pay the Affected
Bank any Loan Obligations as they become due and payable.

                                   ARTICLE XII

                                  MISCELLANEOUS

         12.1     Notices. Unless otherwise provided herein, all notices,
requests, consents and demands shall be in writing and shall be either
hand-delivered (by courier or otherwise) or mailed by certified mail, postage
prepaid, or sent by facsimile transmission (confirmed as aforesaid) to the
respective addresses specified below, or, as to any party, to such other address
as may be designated by it in notice to the other parties in accordance with
this Section 12.1:

                  If to the Borrower, to:

                           Heritage Operating, L.P.
                           8801 South Yale Avenue, Suite 310
                           Tulsa, Oklahoma 74137
                           Attention: Chief Financial Officer
                           FAX: (918) 493-7290

                  If to the Banks, to:

                           Bank of Oklahoma, National Association
                           P. O. Box 2300
                           Bank of Oklahoma Tower
                           One Williams Center
                           Tulsa, Oklahoma 74192
                           Attention: Energy Department - 8th Floor
                           FAX: (918) 588-6880

The Administrative Agent, is hereby designated and appointed and shall serve as
notice agent for all of the Banks insofar as notices hereunder are concerned and
notice to the Administrative Agent shall be deemed notice to each of the Banks
with the same force and effect as if each such Bank were individually notified
in accordance herewith. All notices, requests, consents and demands hereunder
will be effective when hand-delivered to the applicable notice address set forth
above or when mailed by certified mail, postage prepaid, addressed as aforesaid.

         12.2     Place of Payment. All sums payable hereunder shall be paid in
immediately available funds to the Administrative Agent, at its Tulsa, Oklahoma
main banking offices, or at such other place as such Administrative Agent shall
notify the Borrower in writing. If any interest, principal or other payment
falls due on a date other than a Business Day, then (unless otherwise provided
herein) such due date shall be extended to the next succeeding Business Day, and
such extension of time will in such case be included in computing interest, if
any, in connection with such payment.

                                       97
<PAGE>

         12.3     Survival of Agreements. All covenants, agreements,
representations and warranties made herein shall survive the execution and the
delivery of Loan Documents. All statements contained in any certificate or other
instrument delivered by the Borrower hereunder shall be deemed to constitute
representations and warranties by the Borrower.

         12.4     Parties in Interest. All covenants, agreements and obligations
contained in this Agreement shall bind and inure to the benefit of the
respective successors and assigns of the parties hereto, except that the
Borrower may not assign their rights or obligations hereunder without the prior
written consent of the Banks.

         12.5     Governing Law and Jurisdiction. This Agreement and the Notes
shall be deemed to have been made or incurred and delivered under the laws of
the State of Oklahoma and shall be construed and enforced in accordance with and
governed by the Laws of Oklahoma.

         12.6     SUBMISSION TO JURISDICTION. THE BORROWER HEREBY CONSENTS TO
THE JURISDICTION OF ANY OF THE LOCAL, STATE, AND FEDERAL COURTS LOCATED WITHIN
TULSA COUNTY, OKLAHOMA AND WAIVES ANY OBJECTION WHICH BORROWER MAY HAVE BASED ON
IMPROPER VENUE OR FORUM NON CONVENIENS TO THE CONDUCT OF ANY PROCEEDING IN ANY
SUCH COURT AND WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON ANY OF THEM,
AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY MAIL OR MESSENGER
DIRECTED TO ANY OF THEM AT THE ADDRESS SET FORTH IN SUBSECTION 12.1 HEREOF AND
THAT SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED UPON THE EARLIER OF ACTUAL
RECEIPT OR THREE (3) BUSINESS DAYS AFTER MAILED OR DELIVERED BY MESSENGER.

         12.7     Maximum Interest Rate. Regardless of any provision herein, the
Banks shall never be entitled to receive, collect or apply, as interest on the
Indebtedness any amount in excess of the maximum rate of interest permitted to
be charged by the Banks by applicable Law, and, in the event the Banks shall
ever receive, collect or apply, as interest, any such excess, such amount which
would be excessive interest shall be applied to other Indebtedness and then to
the reduction of principal; and, if all other Indebtedness and principal are
paid in full, then any remaining excess shall forthwith be paid to the Borrower.

         12.8     No Waiver; Cumulative Remedies. No failure to exercise, and no
delay in exercising, on the part of the Banks, any right, power or privilege
hereunder or under any other Loan Document or applicable Law shall preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege of the Banks. The rights and remedies herein provided are cumulative
and not exclusive of any other rights or remedies provided by any other
instrument or by law. No amendment, modification or waiver of any provision of
this Agreement or any other Loan Document shall be effective unless the same
shall be in writing and signed by the Banks. No notice to or demand on the
Borrower in any case shall entitle the Borrower to any other or further notice
or demand in similar or other circumstances.

                                       98
<PAGE>

         12.9     Costs. The Borrower agrees to pay to the Banks on demand all
reasonable costs, fees and expenses (including without limitation reasonable
attorneys fees and legal expenses) incurred or accrued by the Banks in
connection with the negotiation, preparation, execution, delivery, filing,
recording, facilitation, administration and enforcement of this Agreement, the
Notes, the Security Documents, the Intercreditor Agreement and the other Loan
Documents, or any amendment, waiver, consent, supplement, restatement or
modification hereof or hereto or thereto or thereof, or any enforcement thereof
or otherwise relating to this Agreement. The Borrower further agrees that the
fees and expenses of the Banks, including the Agents, incurred in connection
with the negotiation and preparation of this Agreement and the other Loan
Documents shall be paid regardless of whether or not the transactions provided
for in this Agreement are eventually closed and regardless of whether or not any
or all sums evidenced by the Notes are advanced to the Borrower by the Banks.

         12.10    WAIVER OF JURY. BORROWER FULLY, VOLUNTARILY AND EXPRESSLY
WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR
DEFEND ANY RIGHTS UNDER THIS AGREEMENT OR UNDER ANY AMENDMENT, INSTRUMENT,
DOCUMENT OR AGREEMENT DELIVERED (OR WHICH MAY IN THE FUTURE BE DELIVERED) IN
CONNECTION HEREWITH OR ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN
CONNECTION WITH THIS AGREEMENT, THE NOTES OR THE SECURITY DOCUMENTS. BORROWER
AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT
BEFORE A JURY.

         Borrower acknowledges that it have been informed by the Agents that the
provisions of this Section 12.10 constitute a material inducement upon which
each of the Banks has relied and will rely in entering into this Agreement and
the other Loan Documents, and that Borrower has reviewed the provisions of this
Section 12.10 with its legal counsel. Any of the Banks, the Agents or the
Borrower may file an original counterpart or copy of this Section 12.10 with any
court or Tribunal as written evidence of the express consent of the Borrower,
the Agents and the Banks to the waiver of their rights to trial by jury.

         12.11    Full Agreement. This Agreement and the other Loan Documents
contain the full agreement of the parties and supersede all negotiations and
agreements prior to the date hereof.

         12.12    Headings. The article and section headings of this Agreement
are for convenience of reference only and shall not constitute a part of the
text hereof nor alter or otherwise affect the meaning hereof.

         12.13    Severability. The unenforceability or invalidity as determined
by a court of competent jurisdiction, of any provision or provisions of this
Agreement shall not render unenforceable or invalid any other provision or
provisions hereof.

         12.14    Exceptions to Covenants. The Borrower shall not be deemed to
be permitted to take any action or fail to take any action which is permitted as
an exception to any of the covenants contained herein or which is within the
permissible limits of any of the covenants

                                       99
<PAGE>

contained herein if such action or omission would result in the breach of any
other covenant contained herein.

         12.15    Conflict with Security Documents. To the extent the terms and
provisions of any of the Security Documents are in conflict with the terms and
provisions hereof, this Agreement shall be deemed controlling.

         12.16    Confidentiality. Each Bank will make no disclosure of
confidential information furnished to it by the Borrower or any of its
Subsidiaries unless such information shall have become public, except:

                  (i)      in connection with operations under or the
         enforcement of this Agreement or any other Loan Document;

                  (ii)     pursuant to any statutory or regulatory requirement
         or any mandatory court order, subpoena or other legal process;

                  (iii)    to any parent or corporate Affiliate of such Bank or
         to any Credit Participant, proposed Credit Participant or proposed
         Assignee; provided, however, that any such Person shall agree to comply
         with the restrictions set forth in this Section 12.16 with respect to
         such information;

                  (iv)     to its independent counsel, auditors and other
         professional advisors with an instruction to such Person to keep such
         information confidential; and

                  (v)      with the prior written consent of the Borrower, to
         any other Person.

                  12.17    Existing Credit Agreement. This Agreement amends,
         modifies and replaces the Existing Credit Agreement in all respects and
         refinances the Obligations defined therein; provided, however the liens
         and the priorities thereof granted in the Existing Credit Agreement and
         the Security Documents therein described and defined (including the
         Security Agreement) are hereby ratified, confirmed and continued in
         full force and effect for all purposes without any interruption
         whatsoever.

                  12.18    USA PATRIOT Act Notice. IMPORTANT INFORMATION ABOUT
         PROCEDURES FOR OPENING A NEW ACCOUNT. To help the government fight the
         funding of terrorism and money laundering activities, federal law
         requires all financial institutions to obtain, verify, and record
         information that identifies each person or entity that opens an
         account, including any deposit account, treasury management account,
         loan, other extension of credit, or other financial services product.
         What this means for borrowers: When a borrower opens an account, the
         Bank will ask for the borrower's name, residential address, tax
         identification number, and other information that will allow the Bank
         to identify the borrower, including the borrower's date of birth if the
         borrower is an individual. The Bank may also ask, if the borrower is an
         individual, to see the borrower's driver's license or other identifying
         documents, and, if the borrower is not an individual, to see the
         borrower's legal organizational documents or other identifying
         documents. The Bank will verify and record the information the

                                      100
<PAGE>

         Bank obtains from the borrower pursuant to the USA PATRIOT Act, and
         will maintain and retain that record in accordance with the regulations
         promulgated under the USA PATRIOT Act.

                  12.19    Not a Reportable Transaction. The parties signatory
         hereto acknowledge and stipulate and the Borrower represents to the
         Administrative Agent, the Co-Agent and the Banks that the transactions
         contemplated by this Agreement do not constitute a "Reportable Event"
         as that term is described and defined in regulations of the Treasury
         Department of the United States.

                  12.20    Counterparts. This Agreement may be executed in any
         number of counterparts, all of which taken together shall constitute
         one and the same instrument. Delivery of an executed counterpart of a
         signature page of this Agreement by telecopier or facsimile shall be as
         effective as delivery of a manually executed counterpart hereof.

                            SIGNATURE PAGES TO FOLLOW

                                      101
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered in Tulsa, Oklahoma, effective as of the day and year
first above written.

                                             "Borrower"

                                             HERITAGE OPERATING, L.P., a
                                             Delaware limited partnership

                                             By: U.S. Propane, L.P., a Delaware
                                                 limited partnership, its
                                                 general partner

                                                 By: U.S. Propane, L.L.C., a
                                                     Delaware limited liability
                                                     company, its general
                                                     partner

                                                     By: _______________________
                                                         Michael L. Greenwood
                                                         Vice President and
                                                         Chief Financial Officer

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered in Tulsa, Oklahoma, effective as of the day and year
first above written.

                                                      "Banks"

                                                      BANK OF OKLAHOMA, NATIONAL
                                                      ASSOCIATION

                                                      By_______________________
                                                           T. Coy Gallatin,
                                                           Senior Vice President

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered in Tulsa, Oklahoma, effective as of the day and year
first above written.

                                                      LOCAL OKLAHOMA BANK

                                                      By________________________
                                                      Name:_____________________
                                                      Title:____________________

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered in Tulsa, Oklahoma, effective as of the day and year
first above written.

                                                      MIDFIRST BANK

                                                      By________________________
                                                      Name:_____________________
                                                      Title:____________________

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered in Tulsa, Oklahoma, effective as of the day and year
first above written.

                                                      BANK ONE, NA

                                                      By________________________
                                                      Name:_____________________
                                                      Title:____________________

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered in Tulsa, Oklahoma, effective as of the day and year
first above written.

                                                      ARVEST BANK

                                                      By________________________
                                                      Name:_____________________
                                                      Title:____________________

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered in Tulsa, Oklahoma, effective as of the day and year
first above written.

                                                  U.S. BANK NATIONAL ASSOCIATION

                                                  By____________________________
                                                  Name:_________________________
                                                  Title:________________________

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered in Tulsa, Oklahoma, effective as of the day and year
first above written.

                                                      FIFTH THIRD BANK

                                                      By________________________
                                                      Name:_____________________
                                                      Title:____________________

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered in Tulsa, Oklahoma, effective as of the day and year
first above written.

                                                      "Administrative Agent"

                                                      BANK OF OKLAHOMA, NATIONAL
                                                      ASSOCIATION

                                                      By________________________
                                                          T. Coy Gallatin,
                                                          Senior Vice President

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered in Tulsa, Oklahoma, effective as of the day and year
first above written.

                                                      "Co-Agent"

                                                      __________________________

                                                      By________________________
                                                      Name:_____________________
                                                      Title:____________________<PAGE>

                                                                   EXHIBIT 10.34

                  SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                          LA GRANGE ACQUISITION, L.P.,
                                  as Borrower,

                              FLEET NATIONAL BANK,
                            as Administrative Agent,

            FLEET SECURITIES, INC. and WACHOVIA CAPITAL MARKETS, LLC
                    as Joint Lead Arrangers and Book Runners,

                      WACHOVIA BANK, NATIONAL ASSOCIATION,
                              as Syndication Agent,

                 THE ROYAL BANK OF SCOTLAND PLC and BNP PARIBAS,
                           as Co-Documentation Agents,

                                BANK OF SCOTLAND,
                            as Senior Managing Agent,

            U.S. BANK NATIONAL ASSOCIATION and FORTIS CAPITAL CORP.,
                                  as Co-Agents

                       and CERTAIN FINANCIAL INSTITUTIONS,

                                   as Lenders

                     $175,000,000 Revolving Credit Facility
                         $325,000,000 Term Loan Facility

                                January 20, 2004

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                                <C>
ARTICLE I - Definitions and References...........................................................................   1
     Section 1.1.   Defined Terms................................................................................   1
     Section 1.2.   Exhibits and Schedules; Additional Definitions...............................................  22
     Section 1.3.   Amendment of Defined Instruments.............................................................  22
     Section 1.4.   References and Titles........................................................................  23
     Section 1.5.   Calculations and Determinations..............................................................  23
     Section 1.6. Joint Preparation; Construction of Indemnities and Releases....................................  23

ARTICLE II - The Loans...........................................................................................  24
     Section 2.1.   Commitments to Lend; Notes...................................................................  24
     Section 2.2.   Requests for New Loans.......................................................................  25
     Section 2.3.   Continuations and Conversions of Existing Loans..............................................  26
     Section 2.4.   Use of Proceeds..............................................................................  27
     Section 2.5.   Optional Prepayments of Loans................................................................  27
     Section 2.6.   Mandatory Prepayments........................................................................  28
     Section 2.7.   Letters of Credit............................................................................  28
     Section 2.8.   Requesting Letters of Credit.................................................................  29
     Section 2.9.   Reimbursement and Participations.............................................................  29
     Section 2.10.   No Duty to Inquire..........................................................................  31
     Section 2.11.   LC Collateral...............................................................................  32
     Section 2.12.   Interest Rates and Fees; Reduction in Commitment............................................  33

ARTICLE III - Payments to Lenders................................................................................  34
     Section 3.1.   General Procedures...........................................................................  34
     Section 3.2.   Capital Reimbursement........................................................................  35
     Section 3.3.   Increased Cost of Eurodollar Loans or Letters of Credit......................................  35
     Section 3.4.   Notice; Change of Applicable Lending Office..................................................  36
     Section 3.5.   Availability.................................................................................  36
     Section 3.6.   Funding Losses...............................................................................  36
     Section 3.7.   Reimbursable Taxes...........................................................................  37
     Section 3.8.   Replacement of Lenders.......................................................................  38

ARTICLE IV - Conditions Precedent to Credit......................................................................  38
     Section 4.1.   Documents to be Delivered....................................................................  38
     Section 4.2.   Contemporaneous Closings.....................................................................  40
     Section 4.3.   Additional Conditions Precedent..............................................................  41

ARTICLE V - Representations and Warranties.......................................................................  41
     Section 5.1.   No Default...................................................................................  42
     Section 5.2.   Organization and Good Standing...............................................................  42
     Section 5.3.   Authorization................................................................................  42
     Section 5.4.   No Conflicts or Consents.....................................................................  42
     Section 5.5.   Enforceable Obligations......................................................................  42
     Section 5.6.   Initial Financial Statements.................................................................  42
</TABLE>

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       i

<PAGE>

<TABLE>
<S>                                                                                                                <C>
     Section 5.7.   Other Obligations and Restrictions...........................................................  43
     Section 5.8.   Full Disclosure..............................................................................  43
     Section 5.9.   Litigation...................................................................................  44
     Section 5.10.   Labor Disputes and Acts of God..............................................................  44
     Section 5.11.   ERISA Plans and Liabilities.................................................................  44
     Section 5.12.   Compliance with Laws........................................................................  44
     Section 5.13.   Environmental Laws..........................................................................  45
     Section 5.14.   Names and Places of Business................................................................  47
     Section 5.15.   Borrower's Subsidiaries.....................................................................  47
     Section 5.16.   Title to Properties; Licenses...............................................................  47
     Section 5.17.   Government Regulation.......................................................................  47
     Section 5.18.   Insider.....................................................................................  47
     Section 5.19.   Solvency....................................................................................  48
     Section 5.20.   Credit Arrangements.........................................................................  48
     Section 5.21.   Consummation of Transaction.................................................................  48

ARTICLE VI - Affirmative Covenants...............................................................................  48
     Section 6.1.   Payment and Performance......................................................................  48
     Section 6.2.   Books, Financial Statements and Reports......................................................  48
     Section 6.3.   Other Information and Inspections............................................................  51
     Section 6.4.   Notice of Material Events and Change of Address..............................................  52
     Section 6.5.   Maintenance of Properties....................................................................  53
     Section 6.6.   Maintenance of Existence and Qualifications..................................................  53
     Section 6.7.   Payment of Trade Liabilities, Taxes, etc.....................................................  53
     Section 6.8.   Insurance....................................................................................  54
     Section 6.9.   Performance on Borrower's Behalf.............................................................  54
     Section 6.10.   Interest....................................................................................  54
     Section 6.11.   Compliance with Agreements and Law..........................................................  54
     Section 6.12.   Environmental Matters; Environmental Reviews................................................  54
     Section 6.13.   Evidence of Compliance......................................................................  55
     Section 6.14.   Agreement to Deliver Security Documents.....................................................  55
     Section 6.15.   Perfection and Protection of Security Interests and Liens...................................  55
     Section 6.16.   Bank Accounts; Offset.......................................................................  55
     Section 6.17.   Guaranties of Subsidiaries..................................................................  56
     Section 6.18.   Compliance with Agreements..................................................................  56
     Section 6.19.   Rents.......................................................................................  56
     Section 6.20.   Operating Practices.........................................................................  57
     Section 6.21   Regarding the Systems........................................................................  57
     Section 6.22   Maintenance of Separateness..................................................................  58

ARTICLE VII - Negative Covenants.................................................................................  59
     Section 7.1.   Indebtedness.................................................................................  59
     Section 7.2.   Limitation on Liens..........................................................................  60
     Section 7.3.   Hedging Contracts............................................................................  61
     Section 7.4.   Limitation on Mergers, Issuances of Securities...............................................  62
     Section 7.5.   Limitation on Sales of Property..............................................................  63
</TABLE>

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       ii

<PAGE>

<TABLE>
<S>                                                                                                                <C>
     Section 7.6.   Limitation on Dividends and Redemptions......................................................  64
     Section 7.7.   Limitation on Investments and New Businesses.................................................  64
     Section 7.8.   Limitation on Credit Extensions..............................................................  65
     Section 7.9.   Transactions with Affiliates.................................................................  65
     Section 7.10.   Prohibited  Contracts.......................................................................  65
     Section 7.11.   Open Position; Trading......................................................................  65
     Section 7.12.   Deposit Accounts............................................................................  66
     Section 7.13.   Commingling of Deposit Accounts and Accounts................................................  66
     Section 7.14.  Financial Covenants..........................................................................  66

ARTICLE VIII - Events of Default and Remedies....................................................................  66
     Section 8.1.   Events of Default............................................................................  67
     Section 8.2.   Remedies.....................................................................................  70
     Section 8.3.   Application of Proceeds after Acceleration...................................................  70

ARTICLE IX - Administrative Agent................................................................................  70
     Section 9.1.   Appointment and Authority....................................................................  70
     Section 9.2.   Exculpation, Administrative Agent's Reliance, Etc............................................  71
     Section 9.3.   Credit Decisions.............................................................................  71
     Section 9.4.   Indemnification..............................................................................  71
     Section 9.5.   Rights as Lender.............................................................................  72
     Section 9.6.   Sharing of Set-Offs and Other Payments.......................................................  72
     Section 9.7.   Investments..................................................................................  73
     Section 9.8.   Benefit of Article IX........................................................................  73
     Section 9.9.   Resignation..................................................................................  73
     Section 9.10.   Other Agents................................................................................  74

ARTICLE X - Miscellaneous........................................................................................  74
     Section 10.1.   Waivers and Amendments; Acknowledgments.....................................................  74
     Section 10.2.   Survival of Agreements; Cumulative Nature...................................................  76
     Section 10.3.   Notices.....................................................................................  76
     Section 10.4.   Payment of Expenses; Indemnity..............................................................  77
     Section 10.5.   Joint and Several Liability; Parties in Interest; Assignments; Replacement Notes............  78
     Section 10.6.   Confidentiality.............................................................................  81
     Section 10.7.   Governing Law; Submission to Process........................................................  81
     Section 10.8.   Limitation on Interest......................................................................  82
     Section 10.9.   Termination; Limited Survival...............................................................  83
     Section 10.10.   Severability...............................................................................  83
     Section 10.11.   Counterparts; Fax..........................................................................  83
     Section 10.12.   Waiver of Jury Trial, Punitive Damages, etc................................................  84
     Section 10.13. Restatement..................................................................................  84
     Section 10.14. Special Provisions...........................................................................  84
</TABLE>

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                      iii

<PAGE>

Schedules and Exhibits:

Schedule 1 - Lender Schedule
Schedule 2 - Disclosure Schedule
Schedule 3 - Security Schedule
Schedule 4 - Insurance Schedule

Exhibit A-1 - Revolver Promissory Note
Exhibit A-2 - Term Promissory Note
Exhibit B - Borrowing Notice
Exhibit C - Continuation/Conversion Notice
Exhibit D - Assignment and Acceptance Agreement
Exhibit E - Letter of Credit Application and Agreement
Exhibit F - Certificate Accompanying Financial Statements
Exhibit G - Opinion of Counsel for Restricted Persons
Exhibit H - Environmental Compliance Certificate

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       iv

<PAGE>

                  SECOND AMENDED AND RESTATED CREDIT AGREEMENT

         THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT is made as of January
20, 2004, by and among LA GRANGE ACQUISITION, L.P. ("Borrower"), a Texas limited
partnership, and FLEET NATIONAL BANK, as administrative agent, FLEET SECURITIES,
INC. and WACHOVIA CAPITAL MARKETS, LLC, as joint lead arrangers and book
runners, WACHOVIA BANK, NATIONAL ASSOCIATION, as syndication agent, THE ROYAL
BANK OF SCOTLAND PLC and BNP PARIBAS, as co-documentation agents, BANK OF
SCOTLAND, as senior managing agent, U.S. BANK NATIONAL ASSOCIATION and FORTIS
CAPITAL CORP., as co-agents, and the Lenders referred to below.

                              W I T N E S S E T H:

         In consideration of the mutual covenants and agreements contained
herein and in consideration of the loans which may hereafter be made by Lenders
to, and the Letters of Credit that may hereafter be issued by the LC Issuer for
the account of, Borrower, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto do
hereby agree as follows:

                     ARTICLE I - Definitions and References

         Section 1.1 Defined Terms. As used in this Agreement, each of the
following terms has the meaning given to such term in this Section 1.1 or in the
sections and subsections referred to below:

         "Acquisition Agreement" means that certain Acquisition Agreement dated
November 6, 2003 among La Grange Energy and General Partner.

         "Additional Indebtedness" means Indebtedness for borrowed money other
than Indebtedness described in Section 7.1.

         "Adjusted Consolidated EBITDA" means, as of any date of determination
for any applicable period, Consolidated EBITDA calculated (x) with respect to
the Consolidated group comprised of General Partner and Master Partnership and
its Subsidiaries (rather than with respect to the Consolidated group comprised
of Borrower and its Subsidiaries), and (y) as if the term "Consolidated Net
Income" were calculated with respect to the Consolidated group comprised of
General Partner and Master Partnership and its Subsidiaries (rather than with
respect to the Consolidated group comprised of Borrower and its Subsidiaries).

         "Adjusted Consolidated Funded Indebtedness" means Consolidated Funded
Indebtedness calculated with respect to the Consolidated group comprised of
General Partner and Master Partnership and its Subsidiaries (rather than with
respect to the Consolidated group comprised of Borrower and its Subsidiaries).

         "Administrative Agent" means Fleet National Bank, as Administrative
Agent hereunder, and its successors in such capacity.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       1
<PAGE>

         "Affiliate" means, as to any Person, each other Person that directly or
indirectly (through one or more intermediaries or otherwise) controls, is
controlled by, or is under common control with, such Person; provided that a
Person shall not be treated as an Affiliate solely as a result of the ownership
of equity interests in such Person by Natural Gas Partners, if Ray Davis and
Kelcy Warren have no direct or indirect interest in such Person. A Person shall
be deemed to be "controlled by" any other Person if such other Person possesses,
directly or indirectly, power

                  (a)      to vote 20% or more of the securities (on a fully
         diluted basis) having ordinary voting power for the election of
         directors or managing general partners; or

                  (b)      to direct or cause the direction of the management
         and policies of such Person whether by contract or otherwise.

         "Aggregate Available Cash" means, with respect to any Fiscal Year, the
sum of (i) the Available Cash of Borrower and its Subsidiaries with respect to
such Fiscal Year (but not less than zero) plus (ii) the "available cash" (as
defined in the Heritage Note Purchase Agreements as in effect on the date of
this Agreement) of Heritage OLP and its Subsidiaries with respect to such Fiscal
Year (but not less than zero).

         "Aggregate Partner Obligations" means, with respect to any Fiscal Year,
the aggregate amount of payment obligations of the Master Partnership,
including, without limitation, the Minimum Quarterly Distribution (as defined in
the Partnership Agreement) on all Units with respect to such Fiscal Year.

         "Agreement" means this Second Amended and Restated Credit Agreement.

         "Applicable Lending Office" means, with respect to each Lender, such
Lender's Domestic Lending Office in the case of Base Rate Loans and such
Lender's Eurodollar Lending Office in the case of Eurodollar Loans.

         "Applicable Leverage Level" means the level set forth below that
corresponds to the applicable Leverage Ratio:

<TABLE>
<CAPTION>
  Applicable
Leverage Level                      Leverage Ratio
--------------                      --------------
<S>                      <C>
   Level I               greater than or equal to 3.25 to 1.0

   Level II              greater than or equal to 2.50 to 1.0
                         but less than 3.25 to 1.0

   Level III             greater than or equal to 2.00 to 1.0
                         but less than 2.50 to 1.0

   Level IV                        less than 2.00 to 1.00
</TABLE>

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       2
<PAGE>

On the date hereof the Applicable Leverage Level shall be Level I. The Leverage
Ratio shall be determined quarterly after the date hereof from time to time by
Administrative Agent within two (2) Business Days after Administrative Agent's
receipt of Borrower's Consolidated financial statements for the immediate
preceding Fiscal Quarter beginning with its receipt of the financial statements
for the Fiscal Quarter ended February 28, 2004. The Applicable Leverage Level
shall become effective upon such determination of the Leverage Ratio by
Administrative Agent and shall remain effective until the next such
determination by Administrative Agent of the Leverage Ratio.

         "Available Cash" means, with respect to any Fiscal Quarter: (1) the
sum, without duplication, of (a) all cash and Cash Equivalents of Borrower and
its Subsidiaries on hand at the end of such Fiscal Quarter (including any
reserves that have been established by Borrower to provide for the payment of
distributions with respect to such Fiscal Quarter) and (b) all additional cash
and Cash Equivalents of Borrower and its Subsidiaries on hand on the date of
determination of Available Cash with respect to such Fiscal Quarter resulting
from borrowings for working capital purposes made subsequent to the end of such
Fiscal Quarter, less (2) the amount of any cash reserves that the General
Partner determines in its reasonable discretion in accordance with the
Partnership Agreement to be necessary or appropriate to (a) provide for the
proper conduct of the business of Borrower and its Subsidiaries (including
reserves for future capital expenditures) subsequent to such Fiscal Quarter, (b)
comply with applicable law or any loan agreement, security agreement, mortgage,
debt instrument or other agreement or obligation to which Borrower or any of its
Subsidiaries is a party or by which it is bound or its assets are subject and
(c) provide funds from cash and Cash Equivalents of Borrower and its
Subsidiaries for distributions to partners of Master Partnership in respect of
any one or more of the next four Fiscal Quarters; provided that disbursements
made by Borrower or a Subsidiary of Borrower of cash reserves established,
increased or reduced after the end of such Fiscal Quarter but on or before the
date of determination of Available Cash with respect to such Fiscal Quarter
shall be deemed to have been made, established, increased or reduced for
purposes of determining Available Cash, within such Fiscal Quarter if General
Partner so determines. In addition, without limiting the foregoing, Available
Cash for any Fiscal Quarter shall reflect reserves equal to the Unused Proceeds
Amount as of the date of determination.

         "Base Rate" means the higher of (a) the variable per annum rate of
interest so designated from time to time by Administrative Agent as its "prime
rate," or (b) the Federal Funds Rate plus one-half percent (0.5%) per annum. The
"prime rate" is a reference rate and does not necessarily represent the lowest
or best rate being charged to any customer. Changes in the Base Rate resulting
from changes in the "prime rate" shall take place immediately without notice or
demand of any kind.

         "Base Rate Loan" means a Loan which does not bear interest at the
Eurodollar Rate.

         "Base Rate Margin" means, on any day, the percent per annum set forth
below based on the Applicable Leverage Level in effect on such day.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       3
<PAGE>

<TABLE>
<CAPTION>
Applicable Leverage Level                 Base Rate Margin
<S>                                       <C>
        Level I                                1.750%
        Level II                               1.375%
        Level III                              1.000%
        Level IV                               0.750%
</TABLE>

Changes in the applicable Base Rate Margin will occur automatically without
prior notice as changes in the Applicable Leverage Level occur. Administrative
Agent will give notice promptly to Borrower and Lenders of changes in the Base
Rate Margin.

         "Borrower" means La Grange Acquisition, L.P., a Texas limited
partnership.

         "Borrower's Percentage of Aggregate Available Cash" means, with respect
to any Fiscal Quarter, the percentage determined by multiplying (a) a fraction
consisting of a numerator equal to Borrower's Available Cash for such Fiscal
Quarter and a denominator equal to the Aggregate Available Cash, by (b) 100.

         "Borrowing" means (a) a borrowing of new Loans of a single Type
pursuant to Section 2.2 or (b) a Continuation or Conversion of all or a portion
of an existing Revolver Loan (whether alone or as a combination with a new
Revolver Loan) or all or a portion of an existing Term Loan into a single Type
(and, in the case of Eurodollar Loans, with the same Interest Period) pursuant
to Section 2.3.

         "Borrowing Notice" means a written or telephonic request, or a written
confirmation, made by Borrower which meets the requirements of Section 2.2.

         "Bossier Project" means the construction by Borrower of the
approximately 78 mile natural gas pipeline extension from Limestone County,
Texas that will connect with Borrower's existing infrastructure at the hub in
Katy, Texas.

         "Business Day" means any day, other than a Saturday, Sunday or day
which shall be in the Commonwealth of Massachusetts a legal holiday or day on
which banking institutions are required or authorized to close. Any Business Day
in any way relating to Eurodollar Loans (such as the day on which an Interest
Period begins or ends) must also be a day on which commercial banks settle
payments in London.

         "Capital Lease" means a lease with respect to which the lessee is
required concurrently to recognize the acquisition of an asset and the
incurrence of a liability in accordance with GAAP.

         "Capital Lease Obligation" means, with respect to any Person and a
Capital Lease, the amount of the obligation of such Person as the lessee under
such Capital Lease which would, in accordance with GAAP, appear as a liability
on a balance sheet of such Person.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       4
<PAGE>

         "Cash Equivalents" means Investments in:

         (a) marketable obligations, maturing within 12 months after acquisition
thereof, issued or unconditionally guaranteed by the United States of America or
an instrumentality or agency thereof and entitled to the full faith and credit
of the United States of America;

         (b) demand deposits and time deposits (including certificates of
deposit) maturing within 12 months from the date of deposit thereof, (i) with
any office of any Lender or (ii) with a domestic office of any national or state
bank or trust company which is organized under the Laws of the United States of
America or any state therein, which has capital, surplus and undivided profits
of at least $500,000,000, and whose long-term certificates of deposit are rated
BBB+ or Baa1 or better, respectively, by either Rating Agency;

         (c) repurchase obligations with a term of not more than seven days for
underlying securities of the types described in subsection (a) above entered
into with (i) any Lender or (ii) any other commercial bank meeting the
specifications of subsection (b) above;

         (d) open market commercial paper, maturing within 270 days after
acquisition thereof, which are rated at least P-1 by Moody's or A-1 by S&P; and

         (e) money market or other mutual funds substantially all of whose
assets comprise securities of the types described in subsections (a) through (d)
above.

         "CE/PA Revolver Loans" means Revolver Loans used for (a) capital
expenditures, including the Bossier Project, or (b) Permitted Acquisitions.

         "CE/PA Sublimit" means a sublimit for CE/PA Revolver Loans of
$150,000,000.

         "CERCLA" means the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended.

         "CERCLIS" means the Comprehensive Environmental Response, Compensation
and Liability Information System List of the Environmental Protection Agency.

         "Change of Control" means the existence of any of the following: (i)
General Partner shall be engaged in any business or activities other than those
permitted by the Partnership Agreement, as amended, (ii) General Partner shall
not be the sole legal and beneficial owner (within the meaning of Rule 13d-3
under the Exchange Act) of all of the general partner interests of Master
Partnership, (iii) the Control Group shall not be in Control of General Partner,
(iv) Master Partnership, either directly or indirectly through ownership of the
Intermediate Entities, shall cease to be the sole legal and beneficial owner of
all of the Equity interests of LA GP or the Borrower, (v) LA GP shall cease to
be the sole general partner of Borrower, (vi) any Person or group of Persons
acting in concert as a partnership or other group, other than the Control Group,
shall be the legal or beneficial owner (within the meaning of Rule 13d-3 of the
Exchange Act) of more than 50% of the combined voting power of the then total
partnership interests (including all securities that are convertible into
partnership interests) of Master Partnership, or (vii) neither Ray Davis, Kelcy
Warren nor any individual that has replaced either of such

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       5
<PAGE>

individuals and has been approved by the Administrative Agent in its sole
discretion, shall be members of the executive management team of General
Partner. As used herein "Control" means (i) with respect to a corporation or
limited liability company, the legal and beneficial ownership (as defined above)
of a majority of the securities (on a fully diluted basis) having ordinary
voting power for the election of directors, managers, or managing members of
such entity; (ii) with respect to a limited partnership with a corporation or
limited liability company as a general partner, the Control of such general
partner, (iii) with respect to a limited partnership with a limited partnership
as general partner, the Control of the general partner of the limited
partnership that acts as general partner and the legal and beneficial ownership
(as defined above) of limited partnership securities (on a fully diluted basis)
having the ordinary power sufficient for the removal or selection of the general
partner of such limited partnership or the possession of control over the
removal and selection of the general partner of such limited partnership by
voting agreement or other agreement binding upon the other limited partners of
such limited partnership; and (iv) with respect to a general partnership, the
legal and beneficial ownership (as defined above) of all the partnership
securities. As used herein "Control Group" means a group of Persons that
includes Ray Davis or Kelcy Warren or a limited partnership or other Person
managed by Natural Gas Partners, which group includes only (A) Ray Davis, (B)
Kelcy Warren, (C) Persons owned by or established for the benefit of such
individuals or their respective heirs at law (such as entities or trusts
established for estate planning purposes), or (D) limited partnerships or other
Persons managed by Natural Gas Partners.

         "Closing Date" means the date on which all of the conditions precedent
set forth in Sections 4.1 and 4.2 shall have been satisfied or waived.

         "Code" means the Internal Revenue Code of 1986, as amended from time to
time, together with all rules and regulations promulgated with respect thereto.

         "Collateral" means all property of any kind which is subject to a Lien
in favor of Lenders (or in favor of Administrative Agent for the benefit of
Lenders) or which, under the terms of any Security Document, is purported to be
subject to such a Lien, in each case granted or created to secure all or part of
the Obligations.

         "Commission" means the United States Securities Exchange Commission.

         "Commitment Fee Rate" means, on any day, the percent per annum set
forth below based on the Applicable Leverage Level in effect on such day.

<TABLE>
<CAPTION>
   Applicable Leverage Level             Commitment Fee Rate
<S>                                      <C>
            Level I                             0.500%
Level II, Level III or Level IV                 0.375%
</TABLE>

Changes in the applicable Commitment Fee Rate will occur automatically without
prior notice as changes in the Applicable Leverage Level occur. Administrative
Agent will give notice promptly to Borrower and Lenders of changes in the
Commitment Fee Rate.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       6
<PAGE>

         "Commitment Period" means the period from and including the date hereof
until January 18, 2008 (or, if earlier, the day on which (i) the obligation of
Lenders to make Loans hereunder and the obligation of LC Issuer to issue Letters
of Credit hereunder have terminated or (ii) the Notes first become due and
payable in full, whichever shall first occur).

         "Common Units" shall mean common units representing a limited
partnership interest in Master Partnership.

         "Compliance Certificate" means Exhibit F hereto.

         "Consolidated" refers to the consolidation of any Person, in accordance
with GAAP, with its properly consolidated subsidiaries. References herein to a
Person's Consolidated financial statements, financial position, financial
condition, liabilities, etc. refer to the consolidated financial statements,
financial position, financial condition, liabilities, etc. of such Person and
its properly consolidated subsidiaries.

         "Consolidated EBITDA" means, for any period, the sum of (1) the
Consolidated Net Income of Borrower and its Consolidated Subsidiaries during
such period, plus (2) all Consolidated Interest Expense which was deducted in
determining such Consolidated Net Income, plus (3) all income taxes (including
any franchise taxes to the extent based upon net income) which were deducted in
determining such Consolidated Net Income, plus (4) all depreciation and
amortization (including amortization of good will and debt issue costs) and any
other non-cash charges which were deducted in determining such Consolidated Net
Income, plus (5) one time costs incurred in connection with the closing of this
Agreement and the Transactions up to the amount of $10,000,000, minus (6) all
non-cash items of income which were included in determining such Consolidated
Net Income. If, since the beginning of the four Fiscal Quarter period ending on
the date for which Consolidated EBITDA is determined, any Restricted Person
shall have made any asset disposition or acquisition, shall have consolidated or
merged with or into Person (other than another Restricted Person), or shall have
made any disposition of a Restricted Person or an acquisition of a Person that
becomes a Restricted Person, Consolidated EBITDA shall be calculated giving pro
forma effect thereto as if the disposition, acquisition, consolidation or merger
had occurred on the first day of such period. Such pro forma effect shall be
determined (i) in good faith by the chief financial officer, principal
accounting officer or treasurer of Borrower and acceptable to Administrative
Agent, and (ii) without giving effect to any anticipated or proposed change in
operations, revenues, expenses or other items included in the computation of
Consolidated EBITDA, except (A) cost reductions specifically identified at the
time of disposition, acquisition, consolidation or merger that are attributable
to personnel reductions, non-recurring maintenance costs, environmental costs,
and allocated corporate overhead costs to the extent approved by Administrative
Agent and (B) otherwise with the consent of Majority Lenders. Unless or until
the Bossier Project shall have been sold or transferred (other than to another
Restricted Person) or abandoned, with respect to each Fiscal Quarter beginning
prior to the earlier of (i) September 1, 2004 or (ii) the 60th day following the
commencement of commercial operations of the Bossier Project, Consolidated
EBITDA for such Fiscal Quarter shall be increased by the amount of $6,250,000
and shall be decreased by the portion of Consolidated EBITDA, if any, derived
from the operation of the Bossier Project during such Fiscal Quarter

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       7
<PAGE>

         "Consolidated Funded Indebtedness" means as of any date, the sum of the
following (without duplication): (i) all Indebtedness which is classified as
"long-term indebtedness" on a Consolidated balance sheet of Borrower and its
Consolidated Subsidiaries prepared as of such date in accordance with GAAP and
any current maturities and other principal amount in respect of such
Indebtedness due within one year but which was classified as "long-term
indebtedness" at the creation thereof, (ii) indebtedness for borrowed money of
Borrower and its Consolidated Subsidiaries outstanding under a revolving credit
or similar agreement, notwithstanding the fact that any such borrowing is made
within one year of the expiration of such agreement, and (iii) Indebtedness in
respect of Capital Leases of Borrower and its Consolidated Subsidiaries.

         "Consolidated Interest Expense" means, for any period, all interest
paid or accrued during such period on, and all fees and related charges in
respect of, Indebtedness (including amortization of original issue discount and
the interest component of any deferred payment obligations and Capital Lease
Obligations) which was deducted in determining Consolidated Net Income during
such period.

         "Consolidated Net Income" means, for any period, Borrower's and its
Consolidated Subsidiaries' gross revenues for such period, minus Borrower's and
its Consolidated Subsidiaries' expenses and other proper charges against income
(including taxes on income to the extent imposed), determined on a Consolidated
basis after eliminating earnings or losses attributable to outstanding minority
interests and excluding the net earnings or losses of any Person other than a
Subsidiary in which Borrower or any of its Subsidiaries has an ownership
interest. Consolidated Net Income shall not include (i) any gain or loss from
the sale of assets other than in the ordinary course of business, (ii) any
extraordinary gains or losses, or (iii) any non-cash gains or losses resulting
from mark to market activity as a result of SFAS 133. Consolidated Net Income
for any period shall include any cash dividends and distributions actually
received during such period from any Person other than a Subsidiary in which
Borrower or any of its Subsidiaries has an ownership interest.

         "Continuation/Conversion Notice" means a written or telephonic request,
or a written confirmation, made by Borrower which meets the requirements of
Section 2.3.

         "Continue," "Continuation," and "Continued" shall refer to the
continuation pursuant to Section 2.3 hereof of a Eurodollar Loan as a Eurodollar
Loan from one Interest Period to the next Interest Period.

         "Contribution Agreement" means that certain Contribution Agreement of
dated as of November 6, 2003 between La Grange Energy and Master Partnership.

         "Convert," "Conversion," and "Converted" shall refer to a conversion
pursuant to Section 2.3 or Article III of one Type of Loan into another Type of
Loan.

         "Default" means any Event of Default and any default, event or
condition which would, with the giving of any requisite notices and the passage
of any requisite periods of time, constitute an Event of Default.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       8
<PAGE>

         "Default Rate" means, at the time in question, (i) two percent (2%) per
annum plus the applicable Eurodollar Rate Margin plus the Eurodollar Rate then
in effect for any Eurodollar Loan (up to the end of the applicable Interest
Period), (ii) two percent (2%) per annum plus the applicable Base Rate Margin
plus the Base Rate for each Base Rate Loan or Matured LC Obligation, or (iii)
two percent (2%) per annum plus the applicable Letter of Credit Fee Rate for
each Letter of Credit; provided, however, the Default Rate shall never exceed
the Highest Lawful Rate

         "Default Rate Period" means any period during which an Event of Default
is continuing.

         "Disclosure Schedule" means Schedule 2 hereto.

         "Dollars" and "$" means the lawful currency of the United States of
America, except where otherwise specified.

         "Domestic Lending Office" means, with respect to any Lender, the office
of such Lender specified as its "Domestic Lending Office" in the Lender Schedule
hereto, or such other office as such Lender may from time to time specify to
Borrower and Administrative Agent; with respect to LC Issuer, the office,
branch, or agency through which it issues Letters of Credit; and, with respect
to Administrative Agent, the office, branch, or agency through which it
administers this Agreement.

         "Eligible Transferee" means a Person which either (a) is a Lender or an
Affiliate of a Lender, or (b) is consented to as an Eligible Transferee by
Administrative Agent and, so long as no Default or Event of Default is
continuing, by Borrower, which consents in each case will not be unreasonably
withheld (provided that no Person organized outside the United States may be an
Eligible Transferee if Borrower would be required to pay withholding taxes on
interest or principal owed to such Person).

         "Environmental Laws" means any and all Laws relating to the environment
or to emissions, discharges, releases or threatened releases of pollutants,
contaminants, chemicals, or industrial, toxic or hazardous substances or wastes
into the environment including ambient air, surface water, ground water, or
land, or otherwise relating to the manufacture, processing, distribution use,
treatment, storage, disposal, transport, or handling of pollutants,
contaminants, chemicals, or industrial, toxic or hazardous substances or wastes.

         "Equity" means shares of capital stock or a partnership, profits,
capital or member interest, or options, warrants or any other right to
substitute for or otherwise acquire the capital stock or a partnership, profits,
capital or member interest of any Person.

         "Equity Contribution" means any contribution to the equity capital of
any Person whether or not occurring in connection with the issuance or sale of
Equity by such Person.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, together with all rules and regulations promulgated
with respect thereto.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       9
<PAGE>

         "ERISA Affiliate" means each Restricted Person and all members of a
controlled group of corporations and all trades or businesses (whether or not
incorporated) under common control that, together with such Restricted Person,
are treated as a single employer under Section 414 of the Code.

         "ERISA Plan" means any employee pension benefit plan subject to Title
IV of ERISA maintained by any ERISA Affiliate with respect to which any
Restricted Person has a fixed or contingent liability.

         "Eurodollar Lending Office" means, with respect to any Lender, the
office of such Lender specified as its "Eurodollar Lending Office" on the Lender
Schedule hereto (or, if no such office is specified, its Domestic Lending
Office), or such other office of such Lender as such Lender may from time to
time specify to Borrower and Administrative Agent.

         "Eurodollar Loan" means a Loan that bears interest at a rate based upon
the Eurodollar Rate.

         "Eurodollar Rate" means, as applicable to any Eurodollar Loan within a
Borrowing and with respect to the related Interest Period therefor, the rate per
annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) as determined
on the basis of offered rates for deposits in U.S. dollars, for a period of time
comparable to such Interest Period which appears on Telerate Page 3750 (or any
successor page) as of 11:00 a.m. London time on the day that is two Business
Days preceding the first day of such Interest Period; provided, however, if the
rate described above does not appear on the Telerate system on any applicable
interest determination date, the Eurodollar Rate shall be the rate (rounded
upwards as described above, if necessary) for deposits in dollars for a period
substantially equal to such Interest Period on the Reuters Page "LIBO" (or such
other page as may replace the LIBO Page on that service for the purpose of
displaying such rates), as of 11:00 a.m. (London time), on the date that is two
Business Days preceding the first day of such Interest Period; provided,
however, if more than one rate is specified on Reuters Screen LIBO Page, the
applicable rate shall be the arithmetic mean of all such rates (rounded upwards,
if necessary, to the nearest 1/1000 of 1%). If both the Telerate and Reuters
system are unavailable, then the Eurodollar Rate for that date will be
determined on the basis of the offered rates for deposits in U.S. dollars for a
period of time comparable to such Interest Period which are offered by four
major banks in the London interbank market at approximately 11:00 a.m. London
time, on the day that is two Business Days preceding the first day of such
Interest Period as selected by Administrative Agent. The principal London office
of each of the four major London banks will be requested to provide a quotation
of its U.S. dollar deposit offered rate. If at least two such quotations are
provided, the rate for that date will be the arithmetic mean of the quotations.
If fewer than two quotations are provided as requested, the rate for that date
will be determined on the basis of the rates quoted for loans in U.S. dollars to
leading European banks for a period of time comparable to such Interest Period
offered by major banks in New York City at approximately 11:00 a.m. New York
City time, on the day that is two Business Days preceding the first day of such
Interest Period. In the event that Administrative Agent is unable to obtain any
such quotation as provided above, it will be deemed that the Eurodollar Rate
pursuant to such Eurodollar Loan cannot be determined. In the event that the
Board of Governors of the Federal Reserve System shall impose a Reserve
Percentage with respect to

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       10
<PAGE>

Eurodollar deposits of any Lender, then for any period during which such Reserve
Percentage shall apply, the Eurodollar Rate shall be equal to the amount
determined above divided by an amount equal to 1 minus the Reserve Percentage.
"Reserve Percentage" means the maximum aggregate reserve requirement (including
all basic, supplemental, marginal, special, emergency and other reserves) which
is imposed on member banks of the Federal Reserve System against "Euro-currency
Liabilities" as defined in Regulation D. Without limiting the effect of the
foregoing, the Reserve Percentage shall reflect any other reserves required to
be maintained by such member banks with respect to (a) any category of
liabilities which includes deposits by reference to which the Eurodollar Rate is
to be determined, or (b) any category of extensions of credit or other assets
which include Eurodollar Loans. The Eurodollar Rate for any Eurodollar Loan
shall change whenever the Reserve Percentage changes.

         "Eurodollar Rate Margin" means, on any day, the percent per annum set
forth below based on the Applicable Leverage Level in effect on such day.

<TABLE>
<CAPTION>
Applicable Leverage Level            Eurodollar Rate Margin
<S>                                  <C>
        Level I                              3.000%
        Level II                             2.625%
        Level III                            2.250%
        Level IV                             2.000%
</TABLE>

Changes in the applicable Eurodollar Rate Margin will occur automatically
without prior notice as changes in the Applicable Leverage Level occur.
Administrative Agent will give notice promptly to Borrower and Lenders of
changes in the Eurodollar Rate Margin.

         "Event of Default" has the meaning given to such term in Section 8.1.

         "Excess Sale Proceeds" shall have the meaning set forth in Section
7.5(d).

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

         "Existing Credit Agreement" means that certain Amended and Restated
Credit Agreement dated as of December 27, 2002 among Borrower, Administrative
Agent and the financial institutions party thereto, as amended or supplemented
to the date hereof.

         "Exiting Lender" means any Lender (as defined in the Existing Credit
Agreement) that does not execute and deliver this Agreement, and does not have
any commitments under this Agreement with respect to Revolver Loans, Term Loans
or Letters of Credit.

         "Facility Usage" means, at the time in question, the aggregate amount
of outstanding Loans and LC Obligations at such time.

         "Federal Funds Rate" means, for any day, the rate per annum (rounded
upwards, if necessary, to the nearest 1/1000th of one percent) equal to the
weighted average of the rates on

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       11
<PAGE>

overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers on such day, as published by the Federal
Reserve Bank of New York on the Business Day next succeeding such day, provided
that (i) if the day for which such rate is to be determined is not a Business
Day, the Federal Funds Rate for such day shall be such rate on such transactions
on the next preceding Business Day as so published on the next succeeding
Business Day, and (ii) if such rate is not so published for any day, the Federal
Funds Rate for such day shall be the average rate quoted to Administrative Agent
on such day on such transactions as determined by Administrative Agent.

         "First Purchase Payables" means the unpaid amount of any payable
obligation related to the purchase of Hydrocarbon Inventory by Borrower which
Administrative Agent determines will be secured by a statutory Lien, including
but not limited to the statutory Liens, if any, created under the laws of Texas,
New Mexico, Oklahoma or any other state.

         "Fiscal Quarter" means a three-month period ending on the last day of
November, February, May and August. With respect to any period prior to the
completion of four full Fiscal Quarters after the date of this Agreement (with
respect to which Borrower's fiscal quarters had been on a calendar quarter
basis), all calculations and determinations shall be made as if the actual
fiscal quarter of Borrower during such period had been the three month periods
ended on the last day of November, February, May and August.

         "Fiscal Year" means a twelve month period ending on August 31.

         "GAAP" means those generally accepted accounting principles and
practices which are recognized as such by the Financial Accounting Standards
Board (or any generally recognized successor) and which, in the case of Borrower
and its Consolidated Subsidiaries, are applied for all periods after the date
hereof in a manner consistent with the manner in which such principles and
practices were applied to the Initial Financial Statements. If any change in any
accounting principle or practice is required by the Financial Accounting
Standards Board (or any such successor) in order for such principle or practice
to continue as a generally accepted accounting principle or practice, all
reports and financial statements required hereunder with respect to Borrower or
with respect to Borrower and its Consolidated Subsidiaries may be prepared in
accordance with such change, but all calculations and determinations to be made
hereunder may be made in accordance with such change only after notice of such
change is given to each Lender, and Borrower and Majority Lenders agree to such
change insofar as it affects the accounting of Borrower or of Borrower and its
Consolidated Subsidiaries.

         "General Partner" means U.S. Propane, L.P., a Delaware limited
partnership

         "Guarantors" means any Person who has guaranteed some or all of the
Obligations and who has been accepted by Administrative Agent as a Guarantor and
any Subsidiary of Borrower, which now or hereafter executes and delivers a
guaranty to Administrative Agent pursuant to Section 6.17.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       12
<PAGE>

         "Hazardous Materials" means any substances regulated under any
Environmental Law, whether as pollutants, contaminants, or chemicals, or as
industrial, toxic or hazardous substances or wastes, or otherwise.

         "Hedging Contract" means (a) any agreement providing for options,
swaps, floors, caps, collars, forward sales or forward purchases involving
interest rates, commodities or commodity prices, equities, currencies, bonds, or
indexes based on any of the foregoing, (b) any option, futures or forward
contract traded on an exchange, and (c) any other derivative agreement or other
similar agreement or arrangement.

         "Heritage Note Purchase Agreements" means collectively, (a) the Note
Purchase Agreement dated as of June 25, 1996, among Heritage OLP and the
purchasers named therein, as amended and supplemented; (b) the Note Purchase
Agreement dated as of November 19, 1997, among Heritage OLP and the purchasers
named therein, as amended and supplemented; and (c) the Note Purchase Agreement
dated as of August 10, 2000 among Heritage OLP and the purchasers named therein,
as amended and supplemented.

         "Heritage OLP" means Heritage Operating, L.P., a Delaware limited
partnership.

         "Highest Lawful Rate" means, with respect to each Lender Party to whom
Obligations are owed, the maximum nonusurious rate of interest that such Lender
Party is permitted under applicable Law to contract for, take, charge, or
receive with respect to such Obligations. All determinations herein of the
Highest Lawful Rate, or of any interest rate determined by reference to the
Highest Lawful Rate, shall be made separately for each Lender Party as
appropriate to assure that the Loan Documents are not construed to obligate any
Person to pay interest to any Lender Party at a rate in excess of the Highest
Lawful Rate applicable to such Lender Party.

         "HHI" means Heritage Holdings, Inc., a Delaware corporation.

         "Hydrocarbon Inventory" means natural gas and all other gaseous
hydrocarbons including the liquid products of processing and any other natural
gas liquids.

         "Indebtedness" of any Person means its Liabilities (without
duplication) in any of the following categories:

         (a)      Liabilities for borrowed money,

         (b)      Liabilities constituting an obligation to pay the deferred
purchase price of property or services,

         (c)      Liabilities evidenced by a bond (other than Liabilities in
respect of surety bonds issued in the ordinary cause of business), debenture,
note or similar instrument,

         (d)      Liabilities (other than reserves for taxes and reserves for
contingent obligations) which (i) would under GAAP be shown on such Person's
balance sheet as a liability and (ii) are payable more than one year from the
date of creation or incurrence thereof,

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       13
<PAGE>

         (e)      Liabilities arising under Hedging Contracts (on a net basis to
the extent netting is provided for in the applicable Hedging Contract),

         (f)      Liabilities constituting principal under Capital Leases,

         (g)      Liabilities arising under conditional sales or other title
retention agreements,

         (h)      Liabilities owing under direct or indirect guaranties of
Liabilities of any other Person or otherwise constituting obligations to
purchase or acquire or to otherwise protect or insure a creditor against loss in
respect of Liabilities of any other Person (such as obligations under working
capital maintenance agreements, agreements to keep-well, or agreements to
purchase Liabilities, assets, goods, securities or services), but excluding
endorsements in the ordinary course of business of negotiable instruments in the
course of collection,

         (i)      Liabilities consisting of an obligation to purchase or redeem
securities or other property, if such Liabilities arise out of or in connection
with the sale or issuance of the same or similar securities or property (for
example, repurchase agreements, mandatorily redeemable preferred stock and
sale/leaseback agreements),

         (j)      Liabilities with respect to letters of credit or applications
or reimbursement agreements therefor,

         (k)      Liabilities with respect to banker's acceptances, or

         (l)      Liabilities with respect to obligations to deliver goods or
services in consideration of advance payments therefor;

provided, however, that the "Indebtedness" of any Person shall not include
Liabilities that were incurred in the ordinary course of business by such Person
on ordinary trade terms to vendors, suppliers or other Persons providing goods
and services for use by such Person in the ordinary course of its business,
unless and until (i) such Liabilities are outstanding more than 120 days after
the date the respective goods are delivered or the respective services are
rendered, and (ii) such Person is not in good faith contesting such Liabilities
by appropriate proceedings, if required, or is not maintaining adequate reserves
with respect to such Liabilities on its books in accordance with GAAP.

         "Initial Borrower Financial Statements" means (a) the unaudited
quarterly Consolidated financial statements of Borrower as of September 30,
2003, and (b) the audited annual financial statements of Borrower as of August
31, 2003.

         "Initial Financial Statements" means (a) the Initial Borrower Financial
Statements, (b) the Initial Master Partnership Financial Statements, and (c) the
Initial Pro Forma Financial Statements.

         "Initial Master Partnership Financial Statements" means (a) the
unaudited quarterly Consolidated financial statements of Master Partnership as
of November 30, 2003, and (b) the audited annual financial statements of Master
Partnership as of August 31, 2003.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       14
<PAGE>

         "Initial Pro Forma Financial Statements" means (a) the pro forma
balance sheet of Borrower and its Consolidated Subsidiaries as of December 31,
2003 and the pro forma statements of total earnings and cash flows of Borrower
and its Consolidated Subsidiaries for the 12 month period ended as of December
31, 2003, giving effect to the Transactions as if the Transactions had been
consummated on such date, and reflecting results of operations on a pro forma
basis satisfactory to Administrative Agent, and (b) the pro forma combined
financial statements of Master Partnership and its Subsidiaries, including
Borrower and its Subsidiaries, as of August 31, 2003, giving effect to the
Transactions as if the Transactions had been consummated on such date, as
included in the Form S-3 Registration Statement of the Master Partnership as
amended and filed with the Commission as of January 9, 2004.

         "Initial Projections" means (a) a business and financial plan for
Borrower and its Subsidiaries (in form reasonably satisfactory to Administrative
Agent), prepared or caused to be prepared by a senior financial officer of
Borrower, setting forth the financial projections and budgets of Borrower for
each of the four annual periods beginning January 1, 2004, 2005, 2006 and 2007,
and (b) a Consolidated business and financial plan for Master Partnership and
its Subsidiaries (in form reasonably satisfactory to Administrative Agent),
prepared or caused to be prepared by a senior financial officer of General
Partner, setting forth the financial projections and budgets of Borrower for
each of the four annual periods beginning January 1, 2004, 2005, 2006 and 2007.

         "Insurance Schedule" means Schedule 4 attached hereto.

         "Interest Period" means, with respect to each particular Eurodollar
Loan in a Borrowing, the period specified in the Borrowing Notice or
Continuation/Conversion Notice applicable thereto, beginning on and including
the date specified in such Borrowing Notice or Continuation/Conversion Notice
(which must be a Business Day), and ending one, two, three, six or, if available
to each Lender, twelve months thereafter, as Borrower may elect in such notice;
provided that: (a) any Interest Period which would otherwise end on a day which
is not a Business Day shall be extended to the next succeeding Business Day
unless such Business Day falls in another calendar month, in which case such
Interest Period shall end on the next preceding Business Day; (b) any Interest
Period which begins on the last Business Day in a calendar month (or on a day
for which there is no numerically corresponding day in the calendar month at the
end of such Interest Period) shall end on the last Business Day in a calendar
month; and (c) notwithstanding the foregoing, no Interest Period may be selected
that would end after the last day of the Commitment Period.

         "Intermediate Entities" means Heritage ETC, L.P., which is a Delaware
limited partnership, a wholly owned subsidiary of Master Partnership and the
owner of all of the limited partnership interests in Borrower, and Heritage ETC
GP, L.L.C., which is a Delaware limited liability company, a wholly owned
subsidiary of Master Partnership and the owner of all of the general partnership
interests in Heritage ETC, L.P.

         "Investment" means any investment made, directly or indirectly in any
Person, whether by acquisition of shares of capital stock, indebtedness or other
obligations or securities or by

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       15
<PAGE>

loan, advance, capital contribution or otherwise and whether made in cash, by
the transfer of property or by any other means.

         "LA GP" means LA GP LLC, a Texas limited liability company and the
general partner of Borrower.

         "La Grange Energy" means La Grange Energy, L.P., a Texas limited
partnership.

         "Law" means any statute, law, regulation, ordinance, rule, treaty,
judgment, order, decree, permit, concession, franchise, license, agreement or
other governmental restriction of the United States or any state or political
subdivision thereof or of any foreign country or any department, state, province
or other political subdivision thereof.

         "LC Application" means any application for a Letter of Credit hereafter
made by Borrower to LC Issuer.

         "LC Collateral" has the meaning given to such term in Section 2.11(a).

         "LC Issuer" means Fleet National Bank, in its capacity as the issuer of
Letters of Credit hereunder, and its successors in such capacity. Administrative
Agent may, with the consent of Borrower and the Lender in question, appoint any
Lender hereunder as an LC Issuer in place of or in addition to Fleet National
Bank.

         "LC Obligations" means, at the time in question, the sum of all Matured
LC Obligations plus the maximum amounts which LC Issuer might then or thereafter
be called upon to advance under all Letters of Credit then outstanding.

         "Lender Hedging Obligations" means all obligations arising from time to
time under Hedging Contracts entered into from time to time between Borrower or
any of its Subsidiaries and a counterparty that is a Lender or an Affiliate of a
Lender; provided (a) that if such counterparty ceases to be a Lender hereunder
or an Affiliate of a Lender hereunder, Lender Hedging Obligations shall only
include such obligations to the extent arising from transactions entered into at
the time such counterparty was a Lender hereunder or an Affiliate of a Lender
hereunder, and (b) that for any of the forgoing to be included within "Lender
Hedging Obligations" hereunder, the applicable counterparty and Borrower must
have provided Administrative Agent written notice of the existence thereof
certifying that such transaction is a Lender Hedging Obligation and is not
prohibited under this Agreement.

         "Lender Parties" means Administrative Agent, LC Issuer, and all
Lenders.

         "Lender Schedule" means Schedule 1 hereto, as it may be revised
pursuant to Section 10.5(c)(iii).

         "Lenders" means each signatory hereto (other than Borrower and any
Restricted Person that is a party hereto), including Fleet National Bank, in its
capacity as a Lender hereunder rather than as Administrative Agent and LC
Issuer, and Wachovia Bank, in its capacity as a Lender

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       16
<PAGE>

hereunder rather than as Syndication Agent, and the successors and each
permitted assign of each such party as holder of a Note.

         "Letter of Credit" means any letter of credit issued by LC Issuer
hereunder.

         "Letter of Credit Fee Rate" means, on any day, the percent per annum
set forth below based on the Applicable Leverage Level in effect on such day.

<TABLE>
<CAPTION>
Applicable Leverage Level             LC Fee Rate
<S>                                   <C>
        Level I                         3.000%
        Level II                        2.625%
        Level III                       2.250%
        Level IV                        2.000%
</TABLE>

Changes in the applicable Letter of Credit Fee Rate will occur automatically
without prior notice as changes in the Applicable Leverage Level occur.
Administrative Agent will give notice promptly to Borrower and Lenders of
changes in the Letter of Credit Fee Rate.

         "Leverage Ratio" means, as of any date of determination, the ratio of
(a) Consolidated Funded Indebtedness to (b) Consolidated EBITDA for the four
Fiscal Quarter period most recently ended prior to the date of determination for
which financial statements contemplated by Section 6.2(a) or (b) are available
to Borrower.

         "Liabilities" means, as to any Person, all indebtedness, liabilities
and obligations of such Person, whether matured or unmatured, liquidated or
unliquidated, primary or secondary, direct or indirect, absolute, fixed or
contingent, and whether or not required to be considered liabilities pursuant to
GAAP.

         "Lien" means, with respect to any property or assets, any right or
interest therein of a creditor to secure Liabilities owed to it or any other
arrangement with such creditor which provides for the payment of such
Liabilities out of such property or assets or which allows such creditor to have
such Liabilities satisfied out of such property or assets prior to the general
creditors of any owner thereof, including any lien, mortgage, security interest,
pledge, deposit, production payment, rights of a vendor under any title
retention or conditional sale agreement or lease substantially equivalent
thereto, tax lien, mechanic's or materialman's lien, or any other charge or
encumbrance for security purposes, whether arising by Law or agreement or
otherwise, but excluding any right of offset which arises without agreement in
the ordinary course of business. "Lien" also means any filed financing
statement, any registration of a pledge (such as with an issuer of
uncertificated securities), or any other arrangement or action which would serve
to perfect a Lien described in the preceding sentence, regardless of whether
such financing statement is filed, such registration is made, or such
arrangement or action is undertaken before or after such Lien exists.

         "Loans" means the Revolver Loans and the Term Loans.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       17
<PAGE>

         "Loan Documents" means this Agreement, the Notes, the Security
Documents, the Letters of Credit, the LC Applications, and all other agreements,
certificates, documents, instruments and writings at any time delivered in
connection herewith or therewith (exclusive of term sheets and commitment
letters).

         "Maintenance Capital Expenditures" means, for any period, all amounts
properly classified as capital expenditures under GAAP for maintenance of or
repair or replacement of existing assets during such period or that are incurred
to maintain existing operations, excluding all costs associated with new well
hook-ups.

         "Majority Lenders" means any Lenders whose aggregate Percentage Shares
equal or exceed fifty-one percent (51%).

         "Master Partnership" means Heritage Propane Partners, L.P., a Delaware
limited partnership.

         "Material Adverse Change" means a material and adverse change, from the
state of affairs presented in the Initial Borrower Financial Statements or as
represented or warranted in any Loan Document, to (a) Borrower's Consolidated
financial condition, (b) Borrower's Consolidated operations, properties or
prospects, considered as a whole, (c) Borrower's ability to timely pay the
Obligations, or (d) the enforceability of the material terms of any Loan
Document.

         "Material Adverse Effect" means (a) with respect to Borrower, (i) a
material adverse effect on the financial condition, operations, properties or
prospects of Borrower and Restricted Persons, taken as a whole, after giving
effect to the Transactions, (ii) a material impairment of the ability of any
Restricted Person to perform any of its obligations under the Loan Documents to
which it is a party, or (iii) a material adverse effect on the enforceability of
any of the Loan Documents, and (b) with respect to any other Person, a material
adverse effect on the financial condition, operations, properties or prospects
of such Person and its Subsidiaries, taken as a whole.

         "Matured LC Obligations" means all amounts paid by LC Issuer on drafts
or demands for payment drawn or made under or purported to be under any Letter
of Credit and all other amounts due and owing to LC Issuer under any LC
Application for any Letter of Credit, to the extent the same have not been
repaid to LC Issuer (with the proceeds of Loans or otherwise).

         "Maturity Date" means January 18, 2008.

         "Maximum Facility Amount" means the sum of $500,000,000.

         "Moody's" means Moody's Investors Service, Inc., or its successor.

         "Net Sale Proceeds" shall have the meaning set forth in Section 7.5(d).

         "Notes" means all Revolver Notes and all Term Notes.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       18
<PAGE>

         "Obligations" means all Liabilities from time to time owing by any
Restricted Person to any Lender Party under or pursuant to any of the Loan
Documents, including all LC Obligations. "Obligation" means any part of the
Obligations.

         "Partnership Agreement" means the Agreement of Limited Partnership of
Master Partnership as in effect on the date of this Agreement.

         "Percentage Share" means, with respect to any Lender, the percentage
obtained by dividing (a) the sum of the unpaid principal balance of such
Lender's Term Loans at the time in question plus such Lender's Revolver
Commitment (or, if such Lender's Revolver Commitment has been terminated, the
unpaid principal balance of such Lender's Revolver Loans) by (b) the sum of the
aggregate unpaid principal balance of all Term Loans at such time plus the
Revolver Commitment of all Lenders (or, if the Revolver Commitment of all
Lenders has been terminated, the unpaid principal balance of the Revolver
Loans).

         "Permitted Acquisitions" means (A) the acquisition of all of the
capital stock or other equity interest in a Person (exclusive of director
qualifying shares and other equity interests required to be held by an Affiliate
to comply with a requirement of Law) or (B) any other acquisition of all or a
substantial portion of the business, assets or operations of a Person (whether
in a single transaction or a series of related transactions) or (C) a merger or
consolidation of any Person with or into a Restricted Person so long as the
survivor is or becomes a Restricted Person upon consummation thereof (and
Borrower is the survivor, if it is a party); provided, that (i) prior to and
after giving effect to such acquisition no Default or Event of Default shall
have occurred and be continuing; (ii) all representations and warranties
contained in the Loan Documents shall be true and correct as if restated
immediately following the consummation of such acquisition; and (iii)
substantially all of such business, assets and operations so acquired, or of the
Person so acquired, consist of Hydrocarbon Inventory marketing, gathering,
transmission, processing, treating and pipeline operations.

         "Permitted HHI Investments" means: (a) a loan in an amount not to
exceed $50,000,000 to HHI for the sole purpose of repaying the Seller Note
delivered pursuant to the Stock Purchase Agreement, such loan to be evidenced by
a promissory note on terms reasonably satisfactory to the Administrative Agent,
or (b) the Subscription Agreement, described in the Disclosure Schedule, between
HHI and Oasis Pipeline Company as such Subscription Agreement exists on the date
of this Agreement and purchases of shares of HHI required to be made pursuant
thereto.

         "Permitted Inventory Liens" means any Lien, and the amount of any
Liability secured thereby, on Hydrocarbon Inventory which would be a Permitted
Lien under Section 7.2(ii)(b) (so long as such Lien is inchoate) or Section
7.2(ii)(d).

         "Permitted Investments" means:

         (a) Cash Equivalents,

         (b) Investments now owned or hereafter acquired in Dorado joint
         venture,

         (c) Investments by Borrower in any Wholly Owned Subsidiary of Borrower,

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       19
<PAGE>

         (d) Permitted HHI Investments, or

         (e) Investment in VanTex Energy Services, Ltd., VanTex Gas Pipeline
         Company, LLC and VES Inc. described in the Disclosure Schedule.

         "Permitted Lien" has the meaning given to such term in Section 7.2.

         "Permitted Reinvestment" has the meaning given to such term in Section
7.5(d)(iii).

         "Permitted Subordinated Debt" means unsecured Indebtedness of Borrower
(a) that by its express terms provides that it ranks subordinate or junior in
right of payment to the payment and performance of the Obligations on terms
acceptable to Majority Lenders, (b) incurred solely to finance working capital
and capital expenditures related to Hydrocarbon Inventory gathering,
transmission, processing, treating and pipeline operations, (c) in an aggregate
amount outstanding at any time not to exceed an amount consented to by Majority
Lenders pursuant to a written notification thereof from such Majority Lenders to
Borrower, and (d) otherwise in form, substance and on terms acceptable to
Administrative Agent and Majority Lenders.

         "Person" means an individual, corporation, partnership, limited
liability company, association, joint stock company, trust or trustee thereof,
estate or executor thereof, unincorporated organization or joint venture,
Tribunal, or any other legally recognizable entity.

         "Rating Agency" means either S&P or Moody's.

         "Regulation D" means Regulation D of the Board of Governors of the
Federal Reserve System as from time to time in effect.

         "Release" has the meaning given such term in 42 U.S.C. Section
9601(22).

         "Restricted Person" means any of LA GP, Borrower and each Subsidiary of
Borrower.

         "Revolver Commitment" means the amount of $175,000,000, as such amount
may be reduced from time to time as provided in Section 2.6 or as such amount
may be reduced by Borrower from time to time as provided in Section 2.12. Each
Lender's Revolver Commitment shall be the amount set forth for such Lender on
the Lender Schedule.

         "Revolver Facility Usage" means, at the time in question, the aggregate
amount of outstanding Revolver Loans and LC Obligations at such time.

         "Revolver Loan" has the meaning given such term in Section 2.1(a).

         "Revolver Note" has the meaning given such term in Section 2.1(a).

         "Revolver Percentage" means, with respect to any Lender, the percentage
set forth as such Lender's Revolver Percentage, if any, on the Lender Schedule
hereto.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       20
<PAGE>

         "S&P" means Standard & Poor's Ratings Services (a division of McGraw
Hill, Inc.) or its successor.

         "Security Documents" means the instruments listed in the Security
Schedule and all other security agreements, deeds of trust, mortgages, chattel
mortgages, pledges, guaranties, financing statements, continuation statements,
extension agreements and other agreements or instruments now, heretofore, or
hereafter delivered by any Restricted Person to Administrative Agent in
connection with this Agreement or any transaction contemplated hereby to secure
or guarantee the payment of any part of the Obligations or Lender Hedging
Obligations or the performance of any Restricted Person's other duties and
obligations under the Loan Documents.

         "Security Schedule" means Schedule 3 hereto.

         "Stock Purchase Agreement" means that certain Stock Purchase Agreement
dated November 6, 2003 by and among General Partner, certain Sellers named
therein, and Master Partnership.

         "Subordinated Units" shall mean subordinated units representing all of
the limited partnership interest in Master Partnership not represented by Common
Units.

         "Subsidiary" means, with respect to any Person, any corporation,
association, partnership, limited liability company, joint venture, or other
business or corporate entity, enterprise or organization which is directly or
indirectly (through one or more intermediaries) controlled or owned more than
fifty percent by such Person.

         "Subsidiary GP" means LG PL, LLC, LGM LLC and ETC Oasis GP, LLC, each a
Texas limited liability company and a general partner of a Subsidiary of the
Borrower.

         "Syndication Agent" means Wachovia Bank, National Association, as
syndication agent, and its successors in such capacity.

         "Systems" means all gathering systems, transmission pipelines, plants,
compressors, storage facilities, injection stations, terminals, trucking
operations, pumps and heaters, and the equipment, fixtures and improvements
located thereon or used in connection therewith, in which any Restricted Person
owns an interest.

         "Term Commitment" means $325,000,000. Each Lender's Term Commitment
shall be the amount set forth for such Lender on the Lender Schedule.

         "Term Loan" has the meaning given such term in Section 2.1(b).

         "Term Note" has the meaning given such term in Section 2.1(b).

         "Termination Event" means (a) the occurrence with respect to any ERISA
Plan of (i) a reportable event described in Sections 4043(c)(5) or (6) of ERISA
or (ii) any other reportable event described in Section 4043(c) of ERISA other
than a reportable event not subject to the provision for 30-day notice to the
Pension Benefit Guaranty Corporation pursuant to a waiver by

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       21
<PAGE>

such corporation under Section 4043(a) of ERISA, or (b) the withdrawal of any
ERISA Affiliate from an ERISA Plan during a plan year in which it was a
"substantial employer" as defined in Section 4001(a)(2) of ERISA, or (c) the
filing of a notice of intent to terminate any ERISA Plan or the treatment of any
ERISA Plan amendment as a termination under Section 4041 of ERISA, or (d) the
institution of proceedings to terminate any ERISA Plan by the Pension Benefit
Guaranty Corporation under Section 4042 of ERISA, or (e) any other event or
condition which might constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any ERISA Plan.

         "Transactions" means, collectively, the transactions contemplated by
the Transaction Documents.

         "Transaction Documents" means, collectively, (a) the Acquisition
Agreement, (b) the Contribution Agreement, and (c) the Stock Purchase Agreement.

         "Tribunal" means any government, any arbitration panel, any court or
any governmental department, commission, board, bureau, agency or
instrumentality of the United States of America or any state, province,
commonwealth, nation, territory, possession, county, parish, town, township,
village or municipality, whether now or hereafter constituted or existing.

         "Type" means, with respect to any Loans, the characterization of such
Loans as either Base Rate Loans or Eurodollar Loans.

         "UCC" means the Uniform Commercial Code as in effect in the State of
New York from time to time.

         "Units" shall mean, collectively, the Common Units and the Subordinated
Units.

         "Unused Proceeds Amount" has the meaning given in Section 7.5.

         "Wholly Owned Subsidiary" means any Subsidiary of a Person, all of the
issued and outstanding stock, limited liability company membership interests, or
partnership interests of which (including all rights or options to acquire such
stock or interests) are directly or indirectly (through one or more
Subsidiaries) owned by such Person, excluding any general partner interests
owned, directly or indirectly, by General Partner in any such Subsidiary that is
a partnership, in each case such general partner interests not to exceed two
percent (2%) of the aggregate ownership interests of any such partnership and
directors' qualifying shares if applicable.

         Section 1.2 Exhibits and Schedules; Additional Definitions. All
Exhibits and Schedules attached to this Agreement are a part hereof for all
purposes. Reference is hereby made to the Security Schedule for the meaning of
certain terms defined therein and used but not defined herein, which definitions
are incorporated herein by reference.

         Section 1.3 Amendment of Defined Instruments. Unless the context
otherwise requires or unless otherwise provided herein the terms defined in this
Agreement which refer to a particular agreement, instrument or document also
refer to and include all renewals, extensions,

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       22
<PAGE>

modifications, amendments and restatements of such agreement, instrument or
document, provided that nothing contained in this section shall be construed to
authorize any such renewal, extension, modification, amendment or restatement.

         Section 1.4 References and Titles. All references in this Agreement to
Exhibits, Schedules, articles, sections, subsections and other subdivisions
refer to the Exhibits, Schedules, articles, sections, subsections and other
subdivisions of this Agreement unless expressly provided otherwise. Exhibits and
Schedules to any Loan Document shall be deemed incorporated by reference in such
Loan Document. References to any document, instrument, or agreement (a) shall
include all exhibits, schedules, and other attachments thereto, and (b) shall
include all documents, instruments, or agreements issued or executed in
replacement thereof. Titles appearing at the beginning of any subdivisions are
for convenience only and do not constitute any part of such subdivisions and
shall be disregarded in construing the language contained in such subdivisions.
The words "this Agreement," "this instrument," "herein," "hereof," "hereby,"
"hereunder" and words of similar import refer to this Agreement as a whole and
not to any particular subdivision unless expressly so limited. The phrases "this
section" and "this subsection" and similar phrases refer only to the sections or
subsections hereof in which such phrases occur. The word "or" is not exclusive,
and the word "including" (in its various forms) means "including without
limitation." Pronouns in masculine, feminine and neuter genders shall be
construed to include any other gender, and words in the singular form shall be
construed to include the plural and vice versa, unless the context otherwise
requires. Accounting terms have the meanings assigned to them by GAAP, as
applied to the entity to which such terms refer. References to "days" shall mean
calendar days, unless the term "Business Day" is used. Unless otherwise
specified, references herein to any particular Person also refer to its
successors and permitted assigns.

         Section 1.5 Calculations and Determinations. All calculations under the
Loan Documents of interest chargeable with respect to Eurodollar Loans and of
fees shall be made on the basis of actual days elapsed (including the first day
but excluding the last) and a year of 360 days. All calculations under the Loan
Documents of interest chargeable with respect to Base Rate Loans shall be made
on the basis of actual days elapsed (including the first day but excluding the
last) and a year of 365 or 366 days, as appropriate. Each determination by a
Lender Party of amounts to be paid under Article III or any other matters which
are to be determined hereunder by a Lender Party (such as any Eurodollar Rate,
Business Day, Interest Period, or Reserve Percentage) shall, in the absence of
manifest error, be conclusive and binding. Unless otherwise expressly provided
herein or unless Majority Lenders otherwise consent all financial statements and
reports furnished to any Lender Party hereunder shall be prepared and all
financial computations and determinations pursuant hereto shall be made in
accordance with GAAP, subject to the last sentence of the definition of GAAP.

         Section 1.6 Joint Preparation; Construction of Indemnities and
Releases. This Agreement and the other Loan Documents have been reviewed and
negotiated by sophisticated parties with access to legal counsel and no rule of
construction shall apply hereto or thereto which would require or allow any Loan
Document to be construed against any party because of its role in drafting such
Loan Document. All indemnification and release provisions of this

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       23
<PAGE>

Agreement shall be construed broadly (and not narrowly) in favor of the Persons
receiving indemnification or being released.

                  ARTICLE II - The Loans and Letters of Credit

         Section 2.1 Commitments to Lend; Notes.

         (a)      Revolver Loans. Subject to the terms and conditions hereof,
each Lender agrees to make loans to Borrower (herein called such Lender's
"Revolver Loans") upon Borrower's request from time to time during the
Commitment Period, provided that (i) subject to Sections 3.3, 3.4 and 3.6, all
Lenders are requested to make Loans of the same Type in accordance with their
respective Revolver Percentages and as part of the same Borrowing, (ii) after
giving effect to such Revolver Loans, the Revolver Facility Usage does not
exceed the Revolver Commitment, and (iii) if such Revolver Loans are CE/PA
Revolver Loans, after giving effect to such CE/PA Revolver Loans, the aggregate
amount of all outstanding CE/PA Revolver Loans does not exceed the CE/PA
Sublimit. The aggregate amount of all Revolver Loans in any Borrowing must be
equal to $500,000 or any higher integral multiple of $100,000. Borrower may have
no more than five (5) Borrowings of Eurodollar Loans that are Revolver Loans
outstanding at any time. The obligation of Borrower to repay to each Lender the
aggregate amount of all Revolver Loans made by such Lender, together with
interest accruing in connection therewith, shall be evidenced by a single
promissory note (herein called such Lender's "Revolver Note") made by Borrower
payable to the order of such Lender in the form of Exhibit A-1 with appropriate
insertions. The amount of principal owing on any Lender's Revolver Note at any
given time shall be the aggregate amount of all Revolver Loans theretofore made
by such Lender minus all payments of principal theretofore received by such
Lender on such Revolver Note. Interest on each Revolver Note shall accrue and be
due and payable as provided herein and therein. Each Revolver Note shall be due
and payable as provided herein and therein, and shall be due and payable in full
on the last day of the Commitment Period. Subject to the terms and conditions of
this Agreement, Borrower may borrow, repay, and reborrow under this Section
2.1(a). Unless otherwise directed by Borrower at the time of repayment, any
repayment of principal of Revolver Loans shall be applied, first, to reduce the
principal amount of CE/PA Revolver Loans, and then to the principal amount of
the Revolver Loans other than CE/PA Revolver Loans.

         (b)      Term Loans. Subject to the terms and conditions hereof
(including Section 10.14), each Lender agrees to make a single advance to
Borrower (herein called such Lender's "Term Loans") on the Closing Date in the
amount of such Lender's Term Commitment set forth on the Lender Schedule,
provided that the aggregate amount of all Term Loans does not exceed the total
Term Commitment. Term Loans shall consist of Base Rate Loans or Eurodollar
Loans, or a combination thereof as Borrower may request in writing as provided
in Section 2.2 or as otherwise provided in Section 2.3; provided that Borrower
may have no more than five (5) Borrowings of Eurodollar Loans that are Term
Loans outstanding at any time. The obligation of Borrower to repay to each
Lender the amount of the Term Loan made by such Lender, together with interest
accruing in connection therewith, shall be evidenced by a single promissory note
(herein called such Lender's "Term Note") made by Borrower payable to the order
of such Lender in the form of Exhibit A-2 with appropriate insertions. The
amount of principal owing on any Lender's Term Note at any given time shall be
the amount of such Lender's Term Loan

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       24
<PAGE>

minus all payments of principal theretofore received by such Lender on such Term
Note. Interest on each Term Note shall accrue and be due and payable as provided
herein and therein. Each Term Note shall be due and payable as provided herein
and therein, and shall be due and payable in full on the Maturity Date. No
portion of any Term Loan that has been repaid may be reborrowed.

         Section 2.2 Requests for New Loans. Borrower must give to
Administrative Agent written notice (or telephonic notice promptly confirmed in
writing) of any requested Borrowing of Loans to be funded by Lenders. Each such
notice constitutes a "Borrowing Notice" hereunder and must:

         (a)      specify (i) the aggregate amount of any such Borrowing of Base
Rate Loans and the date on which such Base Rate Loans are to be advanced, or
(ii) the aggregate amount of any such Borrowing of Eurodollar Loans, the date on
which such Eurodollar Loans are to be advanced (which shall be the first day of
the Interest Period which is to apply thereto), and the length of the applicable
Interest Period;

         (b)      in the case of the Loans on the Closing Date, specify whether
the Loans are Revolver Loans or Term Loans; and

         (c)      if applicable, designate Revolver Loans as CE/PA Revolver
Loans; and

         (d)      be received by Administrative Agent not later than 1:00 p.m.,
Boston, Massachusetts time, on (i) the day on which any such Base Rate Loans are
to be made, or (ii) the third Business Day preceding the day on which any such
Eurodollar Loans are to be made.

Each such written request or confirmation must be made in the form and substance
of the "Borrowing Notice" attached hereto as Exhibit B, duly completed. Each
such telephonic request shall be deemed a representation, warranty,
acknowledgment and agreement by Borrower as to the matters which are required to
be set out in such written confirmation. Upon receipt of any such Borrowing
Notice, Administrative Agent shall give each Lender prompt notice of the terms
thereof. If all conditions precedent to such new Loans have been met, each
Lender will on the date requested promptly remit to Administrative Agent at
Administrative Agent's office in Boston, Massachusetts the amount of such
Lender's Loan in immediately available funds, and upon receipt of such funds,
unless to its actual knowledge any conditions precedent to such Loans have been
neither met nor waived as provided herein, Administrative Agent shall promptly
make such Loans available to Borrower. Unless Administrative Agent shall have
received prompt notice from a Lender that such Lender will not make available to
Administrative Agent such Lender's new Loan, Administrative Agent may in its
discretion assume that such Lender has made such Loan available to
Administrative Agent in accordance with this section and Administrative Agent
may if it chooses, in reliance upon such assumption, make such Loan available to
Borrower. If and to the extent such Lender shall not so make its new Loan
available to Administrative Agent, such Lender and Borrower severally agree to
pay or repay to Administrative Agent within three days after demand the amount
of such Loan together with interest thereon, for each day from the date such
amount was made available to Borrower until the date such amount is paid or
repaid to Administrative Agent, with interest at (i) the Federal

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       25
<PAGE>

Funds Rate, if such Lender is making such payment and (ii) the interest rate
applicable at the time to the other new Loans made on such date, if Borrower is
making such repayment. If neither such Lender nor Borrower pays or repays to
Administrative Agent such amount within such three-day period, Administrative
Agent shall be entitled to recover from Borrower, on demand, in lieu of the
interest provided for in the preceding sentence, interest thereon at the Default
Rate, calculated from the date such amount was made available to Borrower. The
failure of any Lender to make any new Loan to be made by it hereunder shall not
relieve any other Lender of its obligation hereunder, if any, to make its new
Loan, but no Lender shall be responsible for the failure of any other Lender to
make any new Loan to be made by such other Lender.

         Section 2.3 Continuations and Conversions of Existing Loans. Borrower
may make the following elections with respect to Term Loans or Revolver Loans
already outstanding: to Convert, in whole or in part, Base Rate Loans to
Eurodollar Loans, to Convert, in whole or in part, Eurodollar Loans to Base Rate
Loans on the last day of the Interest Period applicable thereto, and to
Continue, in whole or in part, Eurodollar Loans beyond the expiration of such
Interest Period by designating a new Interest Period to take effect at the time
of such expiration. In making such elections, Borrower may combine existing
Loans made pursuant to separate Borrowings into one new Borrowing or divide
existing Loans made pursuant to one Borrowing into separate new Borrowings,
provided that (i) Borrower may have no more than five (5) Borrowings of
Eurodollar Loans that are Revolver Loans or five (5) Borrowings of Eurodollar
Loans that are Term Loans outstanding at any time and (ii) no combinations may
be made between Borrowings constituting Revolver Loans on the one hand and
Borrowings constituting Term Loans on the other hand. To make any such election,
Borrower must give to Administrative Agent written notice (or telephonic notice
promptly confirmed in writing) of any such Conversion or Continuation of
existing Loans, with a separate notice given for each new Borrowing. Each such
notice constitutes a "Continuation/Conversion Notice" hereunder and must:

         (a)      specify the existing Loans which are to be Continued or
Converted;

         (b)      specify (i) the aggregate amount of any Borrowing of Base Rate
Loans into which such existing Loans are to be Continued or Converted and the
date on which such Continuation or Conversion is to occur, or (ii) the aggregate
amount of any Borrowing of Eurodollar Loans into which such existing Loans are
to be Continued or Converted, the date on which such Continuation or Conversion
is to occur (which shall be the first day of the Interest Period which is to
apply to such Eurodollar Loans), and the length of the applicable Interest
Period; and

         (c)      be received by Administrative Agent not later than 1:00 p.m.,
Boston, Massachusetts time, on (i) the day on which any such Continuation or
Conversion to Base Rate Loans is to occur, or (ii) the third Business Day
preceding the day on which any such Continuation or Conversion to Eurodollar
Loans is to occur.

Each such written request or confirmation must be made in the form and substance
of the "Continuation/Conversion Notice" attached hereto as Exhibit C, duly
completed. Each such telephonic request shall be deemed a representation,
warranty, acknowledgment and agreement

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       26
<PAGE>

by Borrower as to the matters which are required to be set out in such written
confirmation. Upon receipt of any such Continuation/Conversion Notice,
Administrative Agent shall give each Lender prompt notice of the terms thereof.
Each Continuation/Conversion Notice shall be irrevocable and binding on
Borrower. During the continuance of any Default, Borrower may not make any
election to Convert existing Loans into Eurodollar Loans or Continue existing
Loans as Eurodollar Loans beyond the expiration of their respective and
corresponding Interest Period then in effect. If (due to the existence of a
Default or for any other reason) Borrower fails to timely and properly give any
Continuation/Conversion Notice with respect to a Borrowing of existing
Eurodollar Loans at least three days prior to the end of the Interest Period
applicable thereto, such Eurodollar Loans, to the extent not prepaid at the end
of such Interest Period, shall automatically be Converted into Base Rate Loans
at the end of such Interest Period. No new funds shall be repaid by Borrower or
advanced by any Lender in connection with any Continuation or Conversion of
existing Loans pursuant to this section, and no such Continuation or Conversion
shall be deemed to be a new advance of funds for any purpose; such Continuations
and Conversions merely constitute a change in the interest rate, Interest Period
or Type applicable to already outstanding Loans.

         Section 2.4 Use of Proceeds. Borrower shall use all proceeds of the
Term Loans (i) to refinance the term loans and the revolving loans under the
Existing Credit Agreement and (ii) to pay in the ordinary course, on or after
the Closing Date, the current liabilities of Borrower existing on the Closing
Date, (iii) to finance a portion of the Transactions, (iv) to provide working
capital after giving effect to the Transactions, and (v) to pay the
out-of-pocket expenses incurred and fees payable in respect of the Transactions
and this Agreement. Borrower shall use the proceeds of all Revolver Loans (i) to
pay the out-of-pocket expenses incurred and fees payable in respect of the
Transactions and this Agreement, (ii) to the extent of Revolver Loans designated
as CE/PA Revolver Loans, for capital expenditures, including the Bossier
Project, and Permitted Acquisitions, (iii) for working capital purposes, and
(iv) for general business purposes not specified in clauses (i), (ii) and (iii)
of this sentence. Borrower may use the proceeds of the Term Loans or the
Revolver Loans to fund a loan to HHI pursuant to clause (a) of the definition of
Permitted HHI Investments. Borrower shall use all Letters of Credit solely for
the purposes specified in Section 2.7(e). In no event shall any Loan or any
Letter of Credit be used (i) directly or indirectly by any Person for personal,
family, household or agricultural purposes, (ii) for the purpose, whether
immediate, incidental or ultimate, of purchasing, acquiring or carrying any
"margin stock" (as such term is defined in Regulation U promulgated by the Board
of Governors of the Federal Reserve System) or (iii) to extend credit to others
directly or indirectly for the purpose of purchasing or carrying any such margin
stock. Borrower represents and warrants that Borrower is not engaged
principally, or as one of Borrower's important activities, in the business of
extending credit to others for the purpose of purchasing or carrying such margin
stock.

         Section 2.5 Optional Prepayments of Loans. Borrower may, upon three
Business Days' notice to Administrative Agent (which notice shall be
irrevocable, and Administrative Agent will promptly give notice to the other
Lenders), from time to time and without premium or penalty (other than
Eurodollar Loan breakage costs, if any) prepay the Loans, in whole or in part,
so long as the aggregate amounts of all partial prepayments of principal on the
Loans equals $200,000 or any higher integral multiple of $100,000. Each
prepayment of principal under this

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       27
<PAGE>

section shall be accompanied by all interest then accrued and unpaid on the
principal so prepaid. Any principal or interest prepaid pursuant to this section
shall be in addition to, and not in lieu of, all payments otherwise required to
be paid under the Loan Documents at the time of such prepayment.

         Section 2.6 Mandatory Prepayments.

         (a)      Upon receipt of Net Sale Proceeds that are Excess Sale
Proceeds, Borrower will immediately apply such Excess Sale Proceeds (i) first,
prepay a principal amount of the outstanding Term Loans equal to the Excess Sale
Proceeds and (ii) next, to the extent such Excess Sale Proceeds exceed the
principal amount of the Term Loans, repay the Revolver Loans.

         (b)      If at any time any Restricted Person shall incur any
Additional Indebtedness, Borrower will (i) first, prepay a principal amount of
the outstanding Term Loans equal to the net cash proceeds (net of underwriters',
purchasers' or arrangers' discounts, commissions and fees, legal, accountancy,
registration, or printing fees and expenses and other fees and expenses incurred
in connection with such offering to be paid or reimbursed by the issuer and net
of any taxes, if any, paid or payable as a result thereof) of such Additional
Indebtedness and (ii) next, to the extent such net cash proceeds exceed the
principal amount of the Term Loans, repay the Revolver Loans. The foregoing
shall not be construed to permit the incurrence of Indebtedness not otherwise
permitted by Section 7.1.

         (c)      If at any time any Restricted Person shall receive any cash
Equity Contribution (other than contributions from Borrower or a Subsidiary of
Borrower), Borrower will (i) first, prepay a principal amount of the outstanding
Term Loans equal to fifty percent (50%) of the net cash proceeds thereof (net of
underwriters' or purchasers' discounts and commissions, legal, accountancy,
registration, or printing fees and expenses and other fees and expenses incurred
in connection with an offering of Equity to be paid or reimbursed by the issuer
and net of any taxes, if any, paid or payable as a result thereof) and (ii)
next, to the extent that such fifty percent (50%) of net cash proceeds exceeds
the principal amount of the Term Loans, repay the Revolver Loans.

         Section 2.7 Letters of Credit. Subject to the terms and conditions
hereof, during the Commitment Period Borrower may request LC Issuer to issue,
amend, or extend the expiration date of, one or more Letters of Credit, provided
that:

         (a)      after taking such Letter of Credit into account, the aggregate
amount of all outstanding LC Obligations does not exceed $40,000,000;

         (b)      after taking such Letter of Credit into account, the Revolver
Facility Usage does not exceed the Revolver Commitment at such time;

         (c)      the expiration date of such Letter of Credit is prior to the
earlier of (i) (A) 75 days after the issuance thereof if issued for the purposes
set forth in clause (e)(i) of this Section, or (B) 365 days after the issuance
thereof if issued for the purposes set forth in clause (e)(ii) of this Section,
and (ii) 30 days prior to the end of the Commitment Period;

                                   SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       28
<PAGE>

         (d)      the issuance of such Letter of Credit will be in compliance
with all applicable governmental restrictions, policies, and guidelines and will
not subject LC Issuer to any cost which is not reimbursable under Article III;

         (e)      such Letter of Credit is (i) related to the purchase or
exchange by Borrower of Hydrocarbon Inventory or (ii) used to satisfy or secure
bonding requirements arising in the ordinary course of business (all such
Letters of Credit for the purposes set forth in this clause (e)(ii) shall not
exceed an aggregate amount at any one time outstanding of $5,000,000) and, in
either case, is in form and upon terms as shall be acceptable to LC Issuer in
its sole and absolute discretion;

         (f)      all other conditions in this Agreement to the issuance of such
Letter of Credit have been satisfied.

LC Issuer will honor any such request if the foregoing conditions (a) through
(f) (in the following Section 2.8 called the "LC Conditions") have been met as
of the date of issuance, amendment, or extension of such Letter of Credit.

         Section 2.8 Requesting Letters of Credit. Borrower must make written
application for any Letter of Credit at least two Business Days before the date
on which Borrower desires for LC Issuer to issue such Letter of Credit. By
making any such written application, unless otherwise expressly stated therein,
Borrower shall be deemed to have represented and warranted that the LC
Conditions described in Section 2.7 will be met as of the date of issuance of
such Letter of Credit. Each such written application for a Letter of Credit must
be made in writing in the form and substance of Exhibit E, the terms and
provisions of which are hereby incorporated herein by reference (or in such
other form as may mutually be agreed upon by LC Issuer and Borrower). If all LC
Conditions for a Letter of Credit have been met as described in Section 2.7 on
any Business Day before 1:00 p.m., Boston, Massachusetts time, LC Issuer will
issue such Letter of Credit on the same Business Day at LC Issuer's Domestic
Lending Office. If the LC Conditions are met as described in Section 2.7 on any
Business Day on or after 1:00 p.m., Boston, Massachusetts time, LC Issuer will
issue such Letter of Credit on the next succeeding Business Day at LC Issuer's
Domestic Lending Office. If any provisions of any LC Application conflict with
any provisions of this Agreement, the provisions of this Agreement shall govern
and control.

         Section 2.9 Reimbursement and Participations.

         (a)      Reimbursement. Each Matured LC Obligation shall constitute a
loan by LC Issuer to Borrower. Borrower promises to pay to LC Issuer, or to LC
Issuer's order, on demand, the full amount of each Matured LC Obligation
together with interest thereon (i) at the Base Rate plus the Base Rate Margin to
and including the second Business Day after the Matured LC Obligation is
incurred and (ii) at the Default Rate applicable to Base Rate Loans on each day
thereafter.

         (b)      Letter of Credit Advances. If the beneficiary of any Letter of
Credit makes a draft or other demand for payment thereunder then Borrower may,
during the interval between the

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       29
<PAGE>

making thereof and the honoring thereof by LC Issuer, request Lenders to make
Revolver Loans to Borrower in the amount of such draft or demand, which Revolver
Loans shall be made concurrently with LC Issuer's payment of such draft or
demand and shall be immediately used by LC Issuer to repay the amount of the
resulting Matured LC Obligation. Such a request by Borrower shall be made in
compliance with all of the provisions hereof, provided that for the purposes of
the first sentence of Section 2.1, the amount of such Revolver Loans shall be
considered, but the amount of the Matured LC Obligation to be concurrently paid
by such Revolver Loans shall not be considered.

         (c)      Participation by Lenders. LC Issuer irrevocably agrees to
grant and hereby grants to each Lender, and - to induce LC Issuer to issue
Letters of Credit hereunder - each Lender irrevocably agrees to accept and
purchase and hereby accepts and purchases from LC Issuer, on the terms and
conditions hereinafter stated and for such Lender's own account and risk an
undivided interest equal to such Lender's Revolver Percentage of LC Issuer's
obligations and rights under each Letter of Credit issued hereunder and the
amount of each Matured LC Obligation paid by LC Issuer thereunder. Each Lender
unconditionally and irrevocably agrees with LC Issuer that, if a Matured LC
Obligation is paid under any Letter of Credit for which LC Issuer is not
reimbursed in full by Borrower in accordance with the terms of this Agreement
and the related LC Application (including any reimbursement by means of
concurrent Revolver Loans or by the application of LC Collateral), such Lender
shall (in all circumstances and without set-off or counterclaim) pay to LC
Issuer on demand, in immediately available funds at LC Issuer's address for
notices hereunder, such Lender's Revolver Percentage of such Matured LC
Obligation (or any portion thereof which has not been reimbursed by Borrower).
Each Lender's obligation to pay LC Issuer pursuant to the terms of this
subsection is irrevocable and unconditional. If any amount required to be paid
by any Lender to LC Issuer pursuant to this subsection is paid by such Lender to
LC Issuer within three Business Days after the date such payment is due, LC
Issuer shall in addition to such amount be entitled to recover from such Lender,
on demand, interest thereon calculated from such due date at the Federal Funds
Rate. If any amount required to be paid by any Lender to LC Issuer pursuant to
this subsection is not paid by such Lender to LC Issuer within three Business
Days after the date such payment is due, LC Issuer shall in addition to such
amount be entitled to recover from such Lender, on demand, interest thereon
calculated from such due date at the Base Rate plus the Base Rate Margin.

         (d)      Distributions to Participants. Whenever LC Issuer has in
accordance with this section received from any Lender payment of such Lender's
Revolver Percentage of any Matured LC Obligation, if LC Issuer thereafter
receives any payment of such Matured LC Obligation or any payment of interest
thereon (whether directly from Borrower or by application of LC Collateral or
otherwise, and excluding only interest for any period prior to LC Issuer's
demand that such Lender make such payment of its Revolver Percentage), LC Issuer
will distribute to such Lender its Revolver Percentage of the amounts so
received by LC Issuer; provided, however, that if any such payment received by
LC Issuer must thereafter be returned by LC Issuer, such Lender shall return to
LC Issuer the portion thereof which LC Issuer has previously distributed to it.

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         (e)      Calculations. A written advice setting forth in reasonable
detail the amounts owing under this section, submitted by LC Issuer to Borrower
or any Lender from time to time, shall be conclusive, absent manifest error, as
to the amounts thereof.

         Section 2.10 No Duty to Inquire.

         (a)      Drafts and Demands. LC Issuer is authorized and instructed to
accept and pay drafts and demands for payment under any Letter of Credit without
requiring, and without responsibility for, any determination as to the existence
of any event giving rise to said draft, either at the time of acceptance or
payment or thereafter. LC Issuer is under no duty to determine the proper
identity of anyone presenting such a draft or making such a demand (whether by
tested telex or otherwise) as the officer, representative or agent of any
beneficiary under any Letter of Credit, and payment by LC Issuer to any such
beneficiary when requested by any such purported officer, representative or
agent is hereby authorized and approved. Borrower releases each Lender Party
from, and agrees to hold each Lender Party harmless and indemnified against, any
liability or claim in connection with or arising out of the subject matter of
this section, WHICH INDEMNITY SHALL APPLY WHETHER OR NOT ANY SUCH LIABILITY OR
CLAIM IS IN ANY WAY OR TO ANY EXTENT CAUSED, IN WHOLE OR IN PART, BY ANY
NEGLIGENT ACT OR OMISSION OF ANY KIND BY ANY LENDER PARTY, provided only that no
Lender Party shall be entitled to indemnification for that portion, if any, of
any liability or claim which is proximately caused by its own individual gross
negligence or willful misconduct, as determined in a final judgment.

         (b)      Extension of Maturity. If the maturity of any Letter of Credit
is extended by its terms or by Law or governmental action, if any extension of
the maturity or time for presentation of drafts or any other modification of the
terms of any Letter of Credit is made at the request of Borrower, or if the
amount of any Letter of Credit is increased at the request of Borrower, this
Agreement shall be binding upon all Restricted Persons with respect to such
Letter of Credit as so extended, increased or otherwise modified, with respect
to drafts and property covered thereby, and with respect to any action taken by
LC Issuer, LC Issuer's correspondents, or any Lender Party in accordance with
such extension, increase or other modification.

         (c)      Transferees of Letters of Credit. If any Letter of Credit
provides that it is transferable, LC Issuer shall have no duty to determine the
proper identity of anyone appearing as transferee of such Letter of Credit, nor
shall LC Issuer be charged with responsibility of any nature or character for
the validity or correctness of any transfer or successive transfers, and payment
by LC Issuer to any purported transferee or transferees as determined by LC
Issuer is hereby authorized and approved, and Borrower releases each Lender
Party from, and agrees to hold each Lender Party harmless and indemnified
against, any liability or claim in connection with or arising out of the
foregoing, WHICH INDEMNITY SHALL APPLY WHETHER OR NOT ANY SUCH LIABILITY OR
CLAIM IS IN ANY WAY OR TO ANY EXTENT CAUSED, IN WHOLE OR IN PART, BY ANY
NEGLIGENT ACT OR OMISSION OF ANY KIND BY ANY LENDER PARTY, provided only that no
Lender Party shall be entitled to

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

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<PAGE>

indemnification for that portion, if any, of any liability or claim which is
proximately caused by its own individual gross negligence or willful misconduct,
as determined in a final judgment.

         Section 2.11 LC Collateral.

         (a)      Acceleration of LC Obligations. If the Obligations or any part
thereof become immediately due and payable pursuant to Section 8.1 then, unless
the Administrative Agent, acting on the instruction of Majority Lenders, shall
otherwise specifically elect to the contrary (which election may thereafter be
retracted by the Administrative Agent, acting on the instruction of Majority
Lenders, at any time), all LC Obligations shall become immediately due and
payable without regard to whether or not actual drawings or payments on the
Letters of Credit have occurred, and Borrower shall be obligated to pay to LC
Issuer immediately an amount equal to the aggregate LC Obligations which are
then outstanding to be held as LC Collateral. Nothing in this subsection shall,
however, limit or impair any rights which LC Issuer may have under any other
document or agreement relating to any Letter of Credit, LC Collateral or LC
Obligation, including any LC Application, or any rights which any Lender Party
may have to otherwise apply any payments by Borrower and any LC Collateral under
Section 3.1.

         (b)      Investment of LC Collateral. Pending application thereof, all
LC Collateral shall be invested by LC Issuer in such Cash Equivalents as LC
Issuer may choose in its sole discretion. All interest on (and other proceeds
of) such Investments shall be reinvested or applied to Matured LC Obligations or
other Obligations which are due and payable. When all Obligations have been
satisfied in full, including all LC Obligations, all Letters of Credit have
expired or been terminated, and all of Borrower's reimbursement obligations in
connection therewith have been satisfied in full, LC Issuer shall release any
remaining LC Collateral. Borrower hereby assigns and grants to LC Issuer for the
benefit of Lenders a continuing security interest in all LC Collateral paid by
it to LC Issuer, all Investments purchased with such LC Collateral, and all
proceeds thereof to secure its Matured LC Obligations and its Obligations under
this Agreement, each Note, and the other Loan Documents, and Borrower agrees
that such LC Collateral, Investments and proceeds shall be subject to all of the
terms and conditions of the Security Documents. Borrower further agrees that LC
Issuer shall have all of the rights and remedies of a secured party under the
UCC with respect to such security interest and that an Event of Default under
this Agreement shall constitute a default for purposes of such security
interest.

         (c)      Payment of LC Collateral. If Borrower is required to provide
LC Collateral for any reason but fails to do so as required, LC Issuer or
Administrative Agent may without prior notice to Borrower or any other
Restricted Person provide such LC Collateral (whether by application of proceeds
of other Collateral, by transfers from other accounts maintained with LC Issuer,
or otherwise) using any available funds of Borrower or any other Person also
liable to make such payments, and LC Issuer or Administrative Agent will give
notice thereof to Borrower promptly after such application or transfer. Any such
amounts which are required to be provided as LC Collateral and which are not
provided on the date required shall, for purposes of each Security Document, be
considered past due Obligations owing hereunder, and LC Issuer is hereby
authorized to exercise its respective rights under each Security Document to
obtain such amounts.

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         Section 2.12 Interest Rates and Fees; Reduction in Commitment.

         (a)      Interest Rates. Unless the Default Rate shall apply, (i) each
Base Rate Loan shall bear interest on each day outstanding at the Base Rate plus
the Base Rate Margin in effect on such day and (ii) each Eurodollar Loan shall
bear interest on each day during the related Interest Period at the related
Eurodollar Rate plus the Eurodollar Rate Margin in effect on such day. During a
Default Rate Period, all Loans shall bear interest on each day outstanding at
the applicable Default Rate. The interest rate shall change whenever the
applicable Base Rate, the Base Rate Margin, the Eurodollar Rate or the
Eurodollar Rate Margin changes. In no event shall the interest rate on any Loan
exceed the Highest Lawful Rate.

         (b)      Commitment Fees. In consideration of each Lender's commitment
to make Revolver Loans, Borrower will pay to Administrative Agent for the
account of each Lender a commitment fee determined on a daily basis equal to the
Commitment Fee Rate in effect on such day times such Lender's Revolver
Percentage of the unused portion of the Revolver Commitment on each day during
the Commitment Period, determined for each such day by deducting from the amount
of the Revolver Commitment at the end of such day the Revolver Facility Usage.
This commitment fee shall be due and payable in arrears on the last day of each
Fiscal Quarter and at the end of the Commitment Period.

         (c)      Reduction in Revolver Commitment. Borrower shall have the
right from time to time to permanently reduce the Revolver Commitment, provided
that (i) notice of such reduction is given not less than two Business Days prior
to such reduction, (ii) the resulting Revolver Commitment is not less than the
Revolver Facility Usage, and (iii) each partial reduction shall be in an amount
at least equal to $1,000,000 and in multiples of $500,000 in excess thereof.

         (d)      Letter of Credit Fees. In consideration of LC Issuer's
issuance of any Letter of Credit, Borrower agrees to pay to Administrative
Agent, for the account of all Lenders in accordance with their respective
Revolver Percentages, a letter of credit fee equal to the Letter of Credit Fee
Rate (or the Default Rate during the Default Rate Period) applicable each day
times the face amount of such Letter of Credit. Such fee will be calculated on
the face amount of each Letter of Credit outstanding on each day at the above
applicable rates and will be payable in arrears on the last day of each Fiscal
Quarter. In addition, Borrower will pay to LC Issuer a minimum administrative
issuance fee equal to the greater of $150 or one-eighth percent (0.125%) per
annum of the face amount of each letter of credit and such other fees and
charges customarily charged by the LC Issuer in respect of any issuance,
amendment or negotiation of any Letter of Credit in accordance with the LC
Issuer's published schedule of such charges effective as of the date of such
amendment or negotiation.

         (e)      Administrative Agent's Fees. In addition to all other amounts
due to Administrative Agent under the Loan Documents, Borrower will pay fees to
Administrative Agent as described in a letter agreement of even date herewith
between Administrative Agent and Borrower.

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<PAGE>

                       ARTICLE III - Payments to Lenders

         Section 3.1 General Procedures. Borrower will make each payment which
it owes under the Loan Documents to Administrative Agent for the account of the
Lender Party to whom such payment is owed in lawful money of the United States
of America, (unless otherwise expressly provided in this Agreement), without
set-off, deduction or counterclaim, and in immediately available funds. Each
such payment must be received by Administrative Agent not later than noon,
Boston, Massachusetts time, on the date such payment becomes due and payable.
Any payment received by Administrative Agent after such time will be deemed to
have been made on the next following Business Day. Should any such payment
become due and payable on a day other than a Business Day, the maturity of such
payment shall be extended to the next succeeding Business Day, and, in the case
of a payment of principal or past due interest, interest shall accrue and be
payable thereon for the period of such extension as provided in the Loan
Document under which such payment is due. Each payment under a Loan Document
shall be due and payable at the place provided therein and, if no specific place
of payment is provided, shall be due and payable at the place of payment of
Administrative Agent's Note. When Administrative Agent collects or receives
money on account of the Obligations, Administrative Agent shall promptly
distribute all money so collected or received, and each Lender Party shall apply
all such money so distributed, as follows:

         (a)      first, for the payment of all Obligations which are then due
(and if such money is insufficient to pay all such Obligations, first to any
reimbursements due Administrative Agent under Section 6.9 or 10.4 and then to
the partial payment of all other Obligations then due in proportion to the
amounts thereof, or as Lender Parties shall otherwise agree);

         (b)      then for the prepayment of amounts owing under the Loan
Documents (other than principal on the Notes) if so specified by Borrower;

         (c)      then for the prepayment of principal on the Notes, together
with accrued and unpaid interest on the principal so prepaid, and then held as
LC Collateral pursuant to Section 2.11(c); and

         (d)      last, for the payment or prepayment of any other Obligations.

All payments applied to principal or interest on any Note shall be applied first
to any interest then due and payable, then to principal then due and payable,
and last to any prepayment of principal and accrued interest thereon in
compliance with Sections 2.5 and 2.6, as applicable. All distributions of
amounts described in any of subsections (b), (c) or (d) above shall be made by
Administrative Agent pro rata to each Lender Party then owed Obligations
described in such subsection in proportion to all amounts owed to all Lender
Parties which are described in such subsection; provided that if any Lender then
owes payments to LC Issuer for the purchase of a participation under Section
2.9(c) or to Administrative Agent under Section 9.4, any amounts otherwise
distributable under this section to such Lender shall be deemed to belong to LC
Issuer or Administrative Agent, respectively, to the extent of such unpaid
payments, and Administrative Agent shall apply such amounts to make such unpaid
payments rather than distribute such

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

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<PAGE>

amounts to such Lender. Administrative Agent shall be required to make payments
to each Lender by wire transfer to such Lender's Applicable Lending Office.

         Section 3.2 Capital Reimbursement. If either (a) the introduction or
implementation of or the compliance with or any change in or in the
interpretation of any Law, or (b) the introduction or implementation of or the
compliance with any request, directive or guideline 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 any
Lender Party or any corporation controlling any Lender Party, then, within five
Business Days after demand by such Lender Party, Borrower will pay to
Administrative Agent for the benefit of such Lender Party, from time to time as
specified by such Lender Party, such additional amount or amounts which such
Lender Party shall determine to be appropriate to compensate such Lender Party
or any corporation controlling such Lender Party in light of such circumstances,
to the extent that such Lender Party reasonably determines that the amount of
any such capital would be increased or the rate of return on any such capital
would be reduced by or in whole or in part based on the existence of the face
amount of such Lender Party's Loans, Letters of Credit, participations in
Letters of Credit or commitments under this Agreement.

         Section 3.3 Increased Cost of Eurodollar Loans or Letters of Credit. If
any applicable Law (whether now in effect or hereinafter enacted or promulgated,
including Regulation D) or any interpretation or administration thereof by any
governmental authority charged with the interpretation or administration thereof
(whether or not having the force of Law):

         (a)      shall change the basis of taxation of payments to any Lender
Party of any principal, interest, or other amounts attributable to any
Eurodollar Loan or Letter of Credit or otherwise due under this Agreement in
respect of any Eurodollar Loan or Letter of Credit (other than taxes imposed on,
or measured by, the overall net income of such Lender Party or any Applicable
Lending Office of such Lender Party by any jurisdiction in which such Lender
Party or any such Applicable Lending Office is located); or

         (b)      shall change, impose, modify, apply or deem applicable any
reserve, special deposit or similar requirements in respect of any Eurodollar
Loan or any Letter of Credit (excluding those for which such Lender Party is
fully compensated pursuant to adjustments made in the definition of Eurodollar
Rate) or against assets of, deposits with or for the account of, or credit
extended by, such Lender Party; or

         (c)      shall impose on any Lender Party or the interbank eurocurrency
deposit market any other condition affecting any Eurodollar Loan or Letter of
Credit, the result of which is to increase the cost to any Lender Party of
funding or maintaining any Eurodollar Loan or of issuing any Letter of Credit or
to reduce the amount of any sum receivable by any Lender Party in respect of any
Eurodollar Loan or Letter of Credit by an amount deemed by such Lender Party to
be material,

then such Lender Party shall promptly notify Administrative Agent and Borrower
in writing of the happening of such event and of the amount required to
compensate such Lender Party for such event (on an after-tax basis, taking into
account any taxes on such compensation),

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

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<PAGE>

whereupon (i) Borrower shall, within five Business Days after demand therefor by
such Lender Party, pay such amount to Administrative Agent for the account of
such Lender Party and (ii) Borrower may elect, by giving to Administrative Agent
and such Lender Party not less than three Business Days' notice, to Convert all
(but not less than all) of any such Eurodollar Loans into Base Rate Loans.

         Section 3.4 Notice; Change of Applicable Lending Office. A Lender Party
shall notify Borrower of any event occurring after the date of this Agreement
that will entitle such Lender Party to compensation under Section 3.2, 3.3 or
3.5 hereof as promptly as practicable, but in any event within 90 days, after
such Lender Party obtains actual knowledge thereof; provided, that (i) if such
Lender Party fails to give such notice within 90 days after it obtains actual
knowledge of such an event, such Lender Party shall, with respect to
compensation payable pursuant to Section 3.2, 3.3 or 3.5 in respect of any costs
resulting from such event, only be entitled to payment under Section 3.2, 3.3 or
3.5 hereof for costs incurred from and after the date 90 days prior to the date
that such Lender Party does give such notice and (ii) such Lender Party will
designate a different Applicable Lending Office for the Loans affected by such
event if such designation will avoid the need for, or reduce the amount of, such
compensation and will not, in the sole opinion of such Lender Party, be
disadvantageous to such Lender Party, except that such Lender Party shall have
no obligation to designate an Applicable Lending Office located in the United
States of America. Each Lender Party will furnish to Borrower a certificate
setting forth the basis and amount of each request by such Lender Party for
compensation under Section 3.2, 3.3 or 3.5 hereof.

         Section 3.5 Availability. If (a) any change in applicable Laws, or in
the interpretation or administration thereof of or in any jurisdiction
whatsoever, domestic or foreign, shall make it unlawful or impracticable for any
Lender Party to fund or maintain Eurodollar Loans or to issue or participate in
Letters of Credit, or shall materially restrict the authority of any Lender
Party to purchase or take offshore deposits of dollars (i.e., "eurodollars"), or
(b) any Lender Party determines that matching deposits appropriate to fund or
maintain any Eurodollar Loan are not available to it, or (c) any Lender Party
determines that the formula for calculating the Eurodollar Rate does not fairly
reflect the cost to such Lender Party of making or maintaining loans based on
such rate, then, upon notice by such Lender Party to Borrower and Administrative
Agent, Borrower's right to elect Eurodollar Loans from such Lender Party (or, if
applicable, to obtain Letters of Credit) shall be suspended to the extent and
for the duration of such illegality, impracticability or restriction and all
Eurodollar Loans of such Lender Party which are then outstanding or are then the
subject of any Borrowing Notice and which cannot lawfully or practicably be
maintained or funded shall immediately become or remain, or shall be funded as,
Base Rate Loans of such Lender Party. Borrower agrees to indemnify each Lender
Party and hold it harmless against all costs, expenses, claims, penalties,
liabilities and damages which may result from any such change in Law,
interpretation or administration. Such indemnification shall be on an after-tax
basis, taking into account any taxes imposed on the amounts paid as indemnity.

         Section 3.6 Funding Losses. In addition to its other obligations
hereunder, Borrower will indemnify each Lender Party against, and reimburse each
Lender Party on demand for, any loss or expense incurred or sustained by such
Lender Party (including any loss or expense

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       36
<PAGE>

incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by a Lender Party to fund or maintain Eurodollar Loans), as a result of
(a) any payment or prepayment (whether or not authorized or required hereunder)
of all or a portion of a Eurodollar Loan on a day other than the day on which
the applicable Interest Period ends, (b) any payment or prepayment, whether or
not required hereunder, of a Loan made after the delivery, but before the
effective date, of a Continuation/Conversion Notice, if such payment or
prepayment prevents such Continuation/Conversion Notice from becoming fully
effective, (c) the failure of any Loan to be made or of any
Continuation/Conversion Notice to become effective due to any condition
precedent not being satisfied or due to any other action or inaction of any
Restricted Person, or (d) any Conversion (whether or not authorized or required
hereunder) of all or any portion of any Eurodollar Loan into a Base Rate Loan or
into a different Eurodollar Loan on a day other than the day on which the
applicable Interest Period ends. Such indemnification shall be on an after-tax
basis, taking into account any taxes imposed on the amounts paid as indemnity.

         Section 3.7 Reimbursable Taxes. Borrower covenants and agrees that:

         (a)      Borrower will indemnify each Lender Party against and
reimburse each Lender Party for all present and future stamp and other taxes,
duties, levies, imposts, deductions, charges, costs, and withholdings whatsoever
imposed, assessed, levied or collected on or in respect of this Agreement or any
Eurodollar Loans or Letters of Credit (whether or not legally or correctly
imposed, assessed, levied or collected), excluding, however, any taxes imposed
on or measured by the overall net income of Administrative Agent or such Lender
Party or any Applicable Lending Office of such Lender Party (or franchise or
equivalent taxes) by any jurisdiction in which such Lender Party or any such
Applicable Lending Office is located (all such non-excluded taxes, levies, costs
and charges being collectively called "Reimbursable Taxes" in this section).
Such indemnification shall be on an after-tax basis, taking into account any
taxes imposed on the amounts paid as indemnity.

         (b)      All payments on account of the principal of, and interest on,
each Lender Party's Loans and Note, and all other amounts payable by Borrower to
any Lender Party hereunder, shall be made in full without set-off or
counterclaim and shall be made free and clear of and without deductions or
withholdings of any nature by reason of any Reimbursable Taxes, all of which
will be for the account of Borrower. In the event of Borrower being compelled by
Law to make any such deduction or withholding from any payment to any Lender
Party, Borrower shall pay on the due date of such payment, by way of additional
interest, such additional amounts as are needed to cause the amount receivable
by such Lender Party after such deduction or withholding to equal the amount
which would have been receivable in the absence of such deduction or
withholding. If Borrower should make any deduction or withholding as aforesaid,
Borrower shall within 60 days thereafter forward to such Lender Party an
official receipt or other official document evidencing payment of such deduction
or withholding.

         (c)      If Borrower is ever required to pay any Reimbursable Tax with
respect to any Eurodollar Loan, Borrower may elect, by giving to Administrative
Agent and such Lender Party not less than three Business Days' notice, to
Convert all (but not less than all) of any such Eurodollar Loan into a Base Rate
Loan, but such election shall not diminish Borrower's obligation to pay all
Reimbursable Taxes.

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<PAGE>

         (d)      Notwithstanding the foregoing provisions of this section,
Borrower shall be entitled, to the extent it is required to do so by Law, to
deduct or withhold (and not to make any indemnification or reimbursement for)
income or other similar taxes imposed by the United States of America (other
than any portion thereof attributable to a change in federal income tax Laws
effected after the date hereof) from interest, fees or other amounts payable
hereunder for the account of any Lender Party, other than a Lender Party (i) who
is a U.S. person for Federal income tax purposes or (ii) who has the Prescribed
Forms on file with Administrative Agent (with copies provided to Borrower) for
the applicable year to the extent deduction or withholding of such taxes is not
required as a result of the filing of such Prescribed Forms, provided that if
Borrower shall so deduct or withhold any such taxes, it shall provide a
statement to Administrative Agent and such Lender Party, setting forth the
amount of such taxes so deducted or withheld, the applicable rate and any other
information or documentation which such Lender Party may reasonably request for
assisting such Lender Party to obtain any allowable credits or deductions for
the taxes so deducted or withheld in the jurisdiction or jurisdictions in which
such Lender Party is subject to tax. As used in this section, "Prescribed Forms"
means such duly executed forms or statements, and in such number of copies,
which may, from time to time, be prescribed by Law and which, pursuant to
applicable provisions of (x) an income tax treaty between the United States and
the country of residence of the Lender Party providing the forms or statements,
(y) the Code, or (z) any applicable rules or regulations thereunder, permit
Borrower to make payments hereunder for the account of such Lender Party free of
such deduction or withholding of income or similar taxes.

         Section 3.8 Replacement of Lenders. If any Lender Party seeks
reimbursement for increased costs under Sections 3.2 through 3.7, then within
ninety days thereafter - provided no Event of Default then exists - Borrower
shall have the right (unless such Lender Party withdraws its request for
additional compensation) to replace such Lender Party by requiring such Lender
Party to assign its Loans and Notes and its commitments hereunder to an Eligible
Transferee reasonably acceptable to Administrative Agent and Borrower, provided
that: (i) all Obligations of Borrower owing to such Lender Party being replaced
(including such increased costs and any breakage costs with respect to any
outstanding Eurodollar Loans), but excluding principal and accrued interest on
the Notes being assigned) shall be paid in full to such Lender Party
concurrently with such assignment, and (ii) the replacement Eligible Transferee
shall purchase the Note being assigned by paying to such Lender Party a price
equal to the principal amount thereof plus accrued and unpaid interest and
accrued and unpaid commitment fees thereon. In connection with any such
assignment Borrower, Administrative Agent, such Lender Party and the replacement
Eligible Transferee shall otherwise comply with Section 10.5. Notwithstanding
the foregoing rights of Borrower under this section, however, Borrower may not
replace any Lender Party which seeks reimbursement for increased costs under
Section 3.2 through 3.7 unless Borrower is at the same time replacing all Lender
Parties which are then seeking such compensation.

                  ARTICLE IV - Conditions Precedent to Credit

         Section 4.1 Documents to be Delivered. No Lender has any obligation to
make its first Loan, and LC Issuer has no obligation to issue the first Letter
of Credit unless Administrative Agent shall have received all of the following,
at Administrative Agent's office in

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

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<PAGE>

Boston, Massachusetts, duly executed and delivered and in form, substance and
date satisfactory to Administrative Agent and Syndication Agent:

         (a)      This Agreement and any other documents that Lenders are to
execute in connection herewith.

         (b)      Each Note.

         (c)      Each Security Document listed in the Security Schedule.

         (d)      Certain certificates including:

                  (i) An "Omnibus Certificate" of the secretary and of the
         president of LA GP, which shall contain the names and signatures of the
         officers of LA GP authorized to execute Loan Documents and which shall
         certify to the truth, correctness and completeness of the following
         exhibits attached thereto: (1) a copy of resolutions duly adopted by
         the Board of Directors of LA GP and in full force and effect at the
         time this Agreement is entered into, authorizing the execution of this
         Agreement and the other Loan Documents delivered or to be delivered in
         connection herewith and the consummation of the transactions
         contemplated herein and therein, (2) a copy of the charter documents of
         each Restricted Person and all amendments thereto, certified by the
         appropriate official of such Restricted Person's jurisdiction of
         organization, and (3) a copy of any bylaws, agreement of limited
         partnership or operating agreement of each Restricted Person; and

                  (ii) A certificate of the president and of the chief financial
         officer of LA GP, regarding satisfaction of Section 4.3(a) through (d).

         (e)      A certificate (or certificates) of the due formation, valid
existence and good standing of each Restricted Person in its respective
jurisdiction of organization, issued by the appropriate authorities of such
jurisdiction, and certificates of each Restricted Person's good standing and due
qualification to do business, issued by appropriate officials in any
jurisdictions in which such Restricted Person owns property subject to Security
Documents.

         (f)      Documents similar to those specified in subsections (d)(i) and
(e) of this section with respect to each Guarantor and the execution by it of
its guaranty of Borrower's Obligations.

         (g)      A favorable opinion of Vinson & Elkins L.L.P., counsel to
Restricted Persons, substantially in the form set forth in Exhibit G, and a
favorable opinion of local counsel to Administrative Agent for the state of
Oklahoma satisfactory to Administrative Agent.

         (h)      The Initial Financial Statements and Initial Projections.

         (i)      Certificates or binders evidencing Restricted Persons'
insurance in effect on the date hereof accompanied by a certificate of an
appropriate officer confirming that the insurance is in effect as of such date.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       39
<PAGE>

         (j)      Copies of such permits and approvals regarding the property
and business of Restricted Persons as Administrative Agent may request.

         (k)      Payment of all commitment, facility, agency and other fees
required to be paid to any Lender pursuant to any Loan Documents or any
commitment or fee agreement heretofore entered into.

         (l)      A certificate of the chief financial officer of LA GP (i)
certifying the Initial Pro Forma Financial Statements of Borrower delivered
pursuant to clause (h) above and reflecting pro forma compliance with each event
specified in Section 7.14, and (ii) certifying that Borrower's Consolidated
EBITDA for the twelve month period ended September 30, 2003 was not less than
$90,000,000.

         (m)      A certificate of the chief financial officer of General
Partner certifying the Initial Pro Forma Financial Statements of Master
Partnership delivered pursuant to clause (h) above and reflecting pro forma
compliance with each event specified in Section 7.14.

         (n)      Borrower shall have delivered to Administrative Agent copies
of all charter or other formation documents of Master Partnership and the
Intermediate Entities.

         Section 4.2 Contemporaneous Closings. No Lender has any obligation to
make its first Loan, and LC Issuer has no obligation to issue its first Letter
of Credit, unless contemporaneously with the first Loan or Letter of Credit
hereunder the following conditions have been met in form and substance
satisfactory to Administrative Agent and Syndication Agent:

         (a)      All Transactions contemplated by the Transaction Documents
shall have been consummated in compliance with each of the terms and conditions
thereof. No amendment, modification or waiver shall have been made to any of the
Transaction Documents except as shall have been approved by Administrative Agent
and Syndication Agent.

         (b)      After giving effect to the consummation of the Transactions,
all representations and warranties made in any Loan Document shall be true on
and as of such date.

         (c)      Master Partnership shall have received proceeds of an issuance
of Common Units on or after December 31, 2003 in an amount of not less than
$200,000,000 (prior to the payment of applicable discounts, fees, expenses and
commissions).

         (d)      Administrative Agent shall have received a certificate of
General Partner confirming compliance with the requirements of Section 4.2 (a),
(b) and (c), with attached copies of the Transaction Documents, each certified
as being true, correct and complete.

         (e)      All obligations under the Existing Credit Agreement shall have
been paid in full, except to the extent they are continued under this Agreement
with respect to any Lender.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       40
<PAGE>

         Section 4.3 Additional Conditions Precedent. No Lender has any
obligation to make any Loan (including its first), and LC Issuer has no
obligation to issue any Letter of Credit (including its first), unless the
following conditions precedent have been satisfied:

         (a)      All representations and warranties made by any Restricted
Person in any Loan Document shall be true on and as of the date of such Loan or
the date of issuance of such Letter of Credit as if such representations and
warranties had been made as of the date of such Loan or the date of issuance of
such Letter of Credit except to the extent that such representation or warranty
was made as of a specific date or updated, modified or supplemented as of a
subsequent date with the consent of Majority Lenders.

         (b)      No Default shall exist at the date of such Loan or the date of
issuance of such Letter of Credit.

         (c)      (i) No Material Adverse Change shall have occurred, (ii) no
event or circumstance shall have occurred that would reasonably be expected to
cause a Material Adverse Change, (iii) no material adverse change shall have
occurred in the consolidated financial condition, business, operations, assets
or prospects of the Master Partnership and (iv) no event or circumstance shall
have occurred that would reasonably be expected to cause a material adverse
change in the consolidated financial condition, business, operations, assets or
prospects of the Master Partnership, other than, in the case of clauses (iii)
and (iv), changes resulting solely from general, regional, industry-wide, or
economy-wide developments.

         (d)      Each Restricted Person shall have performed and complied with
all agreements and conditions required in the Loan Documents to be performed or
complied with by it on or prior to the date of such Loan or the date of issuance
of such Letter of Credit.

         (e)      The making of such Loan or the issuance of such Letter of
Credit shall not be prohibited by any Law and shall not subject any Lender or
any LC Issuer to any penalty or other onerous condition under or pursuant to any
such Law.

         (f)      Administrative Agent shall have received all documents and
instruments which Administrative Agent has then reasonably requested, in
addition to those described in Section 4.1 (including opinions of legal counsel
for Restricted Persons and Administrative Agent; corporate documents and
records; documents evidencing governmental authorizations, consents, approvals,
licenses and exemptions; and certificates of public officials and of officers
and representatives of Borrower and other Persons), as to (i) the accuracy and
validity of or compliance with all representations, warranties and covenants
made by any Restricted Person in this Agreement and the other Loan Documents,
(ii) the satisfaction of all conditions contained herein or therein, and (iii)
all other matters pertaining hereto and thereto. All such additional documents
and instruments shall be satisfactory to Administrative Agent in form, substance
and date.

                   ARTICLE V - Representations and Warranties

         To confirm each Lender's understanding concerning Restricted Persons
and Restricted Persons' businesses, properties and obligations and to induce
each Lender to enter into this

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       41
<PAGE>

Agreement and to extend credit hereunder, Borrower represents and warrants to
each Lender that:

         Section 5.1 No Default. No Restricted Person is in default in the
performance of any of the covenants and agreements contained in any Loan
Document. No event has occurred and is continuing which constitutes a Default.

         Section 5.2 Organization and Good Standing. Each Restricted Person is
duly organized, validly existing and in good standing under the Laws of its
jurisdiction of organization, having all powers required to carry on its
business and enter into and carry out the transactions contemplated hereby. Each
Restricted Person is duly qualified, in good standing, and authorized to do
business in all other jurisdictions wherein the character of the properties
owned or held by it or the nature of the business transacted by it makes such
qualification necessary except where the failure to so qualify has not had, and
could not reasonably be expected to have, a Material Adverse Effect.

         Section 5.3 Authorization. Each Restricted Person has duly taken all
action necessary to authorize the execution and delivery by it of the Loan
Documents to which it is a party and to authorize the consummation of the
transactions contemplated thereby and the performance of its obligations
thereunder. Borrower is duly authorized to borrow funds hereunder.

         Section 5.4 No Conflicts or Consents. The execution and delivery by the
various Restricted Persons of the Loan Documents to which each is a party, the
performance by each of its obligations under such Loan Documents, and the
consummation of the transactions contemplated by the various Loan Documents, do
not and will not (i) conflict with any provision of (1) any Law, (2) the
organizational documents of any Restricted Person or any of its Affiliates, or
(3) any agreement, judgment, license, order or permit applicable to or binding
upon any Restricted Person or any of its Affiliates, (ii) result in the
acceleration of any Indebtedness owed by any Restricted Person or any of its
Affiliates, or (iii) result in or require the creation of any Lien upon any
assets or properties of any Restricted Person or any of its Affiliates except as
expressly contemplated in the Loan Documents. Except as expressly contemplated
in the Loan Documents or disclosed in the Disclosure Schedule, no permit,
consent, approval, authorization or order of, and no notice to or filing,
registration or qualification with, any Tribunal or third party is required in
connection with the execution, delivery or performance by any Restricted Person
of any Loan Document or to consummate any transactions contemplated by the Loan
Documents. No Restricted Person is in breach of or in default under any
instrument, license or other agreement applicable to or binding upon such
Restricted Person, which breach or default has had, or could reasonably be
expected to have, a Material Adverse Effect.

         Section 5.5 Enforceable Obligations. This Agreement is, and the other
Loan Documents when duly executed and delivered will be, legal, valid and
binding obligations of each Restricted Person which is a party hereto or
thereto, enforceable in accordance with their terms except as such enforcement
may be limited by bankruptcy, insolvency or similar Laws of general application
relating to the enforcement of creditors' rights.

         Section 5.6 Initial Financial Statements.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       42
<PAGE>

         (a)      Borrower has heretofore delivered to each Lender true, correct
and complete copies of the Initial Financial Statements.

         (b)      The Initial Borrower Financial Statements fairly present
Borrower's Consolidated and consolidating financial position at the date thereof
and the Consolidated and consolidating results of Borrower's operations for the
periods thereof, and in the case of the annual Initial Borrower Financial
Statements, Consolidated cash flows for the period thereof. Since the date of
the annual Initial Borrower Financial Statements, no Material Adverse Change has
occurred, except as reflected in the quarterly Initial Borrower Financial
Statements or in the Disclosure Schedule. All Initial Borrower Financial
Statements were prepared in accordance with GAAP.

         (c)      To the knowledge of Borrower, the Initial Master Partnership
Financial Statements fairly present Master Partnership's Consolidated and
consolidating financial position at the date thereof and the Consolidated and
consolidating results of Master Partnership's operations for the period thereof.
Since the date of the Initial Master Partnership Financial Statements, no
Material Adverse Change has occurred, except as reflected in the Disclosure
Schedule. To the knowledge of Borrower, all Initial Master Partnership Financial
Statements were prepared in accordance with GAAP.

         (d)      All Initial Pro Forma Financial Statements of Borrower were
prepared in good faith in accordance with GAAP based upon assumptions specified
therein with such pro forma adjustments as have been specified therein. The
Initial Projections of Borrower were prepared in good faith based upon
assumptions specified therein with such pro forma adjustments as have been
accepted by Administrative Agent.

         (e)      To the knowledge of Borrower, all Initial Pro Forma Financial
Statements of Master Partnership were prepared in good faith in accordance with
GAAP based upon assumptions specified therein with such pro forma adjustments as
have been specified therein. To the knowledge of Borrower, the Initial
Projections of Master Partnership were prepared in good faith based upon
assumptions specified therein with such pro forma adjustments as have been
accepted by Administrative Agent.

         Section 5.7 Other Obligations and Restrictions. No Restricted Person
has any outstanding Liabilities of any kind (including contingent obligations,
tax assessments, and unusual forward or long-term commitments) that exceed
$1,000,000 in the aggregate and not shown in the Initial Financial Statements,
disclosed in the Disclosure Schedule or otherwise permitted under Section 7.1.
Each Restricted Person has paid all taxes, assessments, and other governmental
charges or levies imposed upon it or upon its income, profits or property,
except to the extent that any of the foregoing is not yet due or is being in
good faith contested as permitted by Section 6.7.

         Section 5.8 Full Disclosure. No written certificate, statement or other
information delivered herewith or heretofore by any Restricted Person to any
Lender in connection with the negotiation of this Agreement or in connection
with any transaction contemplated hereby contains any untrue statement of a
material fact or omits to state any material fact necessary to make the
statements contained herein or therein, in light of the circumstances under
which they

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       43
<PAGE>

were made, not misleading as of the date made or deemed made. All written
information furnished after the date hereof by or on behalf of any Restricted
Person to Administrative Agent or any Lender Party in connection with this
Agreement and the other Loan Documents and the transactions contemplated hereby
and thereby will be true, complete and accurate in every material respect in
light of the circumstances in which made, or based on reasonable estimates on
the date as of which such information is stated or certified. There is no fact
known to any Restricted Person that has not been disclosed to each Lender in
writing which could cause a Material Adverse Change.

         Section 5.9 Litigation. Except as disclosed in the Initial Financial
Statements or in the Disclosure Schedule and except for matters that could not
reasonably be expected to exceed $1,000,000 (net of insurance) in the aggregate:
(i) there are no actions, suits or legal, equitable, arbitrative or
administrative proceedings pending, or to the knowledge of any Restricted Person
threatened, against any Restricted Person or affecting any Collateral
(including, without limitation, any which challenge or otherwise pertain to any
Restricted Person's title to any Collateral) before any Tribunal, and (ii) there
are no outstanding judgments, injunctions, writs, rulings or orders by any such
Tribunal against any Restricted Person or any Restricted Person's stockholders,
partners, directors or officers or affecting any Collateral.

         Section 5.10 Labor Disputes and Acts of God. Except as disclosed in the
Disclosure Schedule, neither the business nor the properties of any Restricted
Person has been affected by any fire, explosion, accident, strike, lockout or
other labor dispute, drought, storm, hail, earthquake, embargo, act of God or of
the public enemy or other casualty (whether or not covered by insurance), which
has had, or could reasonably be expected to have, a Material Adverse Effect.

         Section 5.11 ERISA Plans and Liabilities. All currently existing ERISA
Plans are listed in the Disclosure Schedule. Except as disclosed in the Initial
Financial Statements or in the Disclosure Schedule, no Termination Event has
occurred with respect to any ERISA Plan and all ERISA Affiliates are in
compliance with ERISA in all material respects. No ERISA Affiliate is required
to contribute to, or has any other absolute or contingent liability in respect
of, any "multiemployer plan" as defined in Section 4001 of ERISA. Except as set
forth in the Disclosure Schedule: (i) no "accumulated funding deficiency" (as
defined in Section 412(a) of the Code exists with respect to any ERISA Plan,
whether or not waived by the Secretary of the Treasury or his delegate, and (ii)
the current value of each ERISA Plan's benefits does not exceed the current
value of such ERISA Plan's assets available for the payment of such benefits by
more than $500,000.

         Section 5.12 Compliance with Laws. Except as set forth in the
Disclosure Schedule, each Restricted Person has all permits, licenses and
authorizations required in connection with the conduct of its businesses, except
to the extent failure to have any such permit, license or authorization has not
had, and could not reasonably be expected to have, a Material Adverse Effect.
Each Restricted Person is in compliance with the terms and conditions of all
such permits, licenses and authorizations, and is also in compliance with all
other limitations, restrictions, conditions, standards, prohibitions,
requirements, obligations, schedules and timetables contained in any Law or in
any regulation, code, plan, order, decree, judgment,

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       44
<PAGE>

injunction, notice or demand letter issued, entered, promulgated or approved
thereunder, except to the extent failure to comply has not had, and could not
reasonably be expected to have, a Material Adverse Effect. Without limiting the
foregoing, each Restricted Person (i) has filed and maintained all tariffs
applicable to its business with each applicable agency, (ii) and all such
tariffs are in compliance with all Laws administered or promulgated by each
applicable agency and (iii) has imposed charges on its customers in compliance
with such tariffs, all contracts applicable to its business and all applicable
Laws. As used herein, "agency" includes the Federal Energy Regulatory Commission
and each other US federal, state, or local governmental department, commission,
board, bureau, agency or instrumentality having jurisdiction over any Restricted
Person or its properties.

         Section 5.13 Environmental Laws. Without limiting the provisions of
Section 5.12 and except as set forth in the Disclosure Schedule:

         (a)      No notice, notification, demand, request for information,
citation, summons or order has been issued, no complaint has been filed, no
penalty has been assessed, and, to Borrower's knowledge, no investigation or
review is pending or threatened by any Tribunal or any other Person with respect
to any of the following which in the aggregate has had, or could reasonably be
expected to have, a Material Adverse Effect (i) any alleged generation,
treatment, storage, recycling, transportation, disposal, or Release of any
Hazardous Materials, either by any Restricted Person or on any property owned by
any Restricted Person, (ii) any remedial action which might be needed to respond
to any such alleged generation, treatment, storage, recycling, transportation,
disposal, or Release, or (iii) any alleged failure by any Restricted Person to
have any permit, license or authorization required in connection with the
conduct of its business or with respect to any such generation, treatment,
storage, recycling, transportation, disposal, or Release.

         (b)      No Restricted Person otherwise has any known material
contingent liability in connection with any alleged generation, treatment,
storage, recycling, transportation, disposal, or Release of any Hazardous
Materials.

         (c)      No Restricted Person has handled any Hazardous Materials,
other than as a generator, on any properties now or previously owned or leased
by any Restricted Person to an extent that such handling has had, or could
reasonably be expected to have, a Material Adverse Effect.

         (d)      Except to the extent that the following in the aggregate has
not had, and could not reasonably be expected to have, a Material Adverse
Effect:

                  (i)      no PCBs are or have been present at any properties
                           now or previously owned or leased by any Restricted
                           Person;

                  (ii)     no asbestos is or has been present at any properties
                           now or previously owned or leased by any Restricted
                           Person;

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       45
<PAGE>

                  (iii)there are no underground storage tanks for Hazardous
                       Materials, active or abandoned, at any properties now
                       or previously owned or leased by any Restricted Person;
                       and

                  (iv) no Hazardous Materials have been Released at, on or
                       under any properties now or previously owned or leased
                       by any Restricted Person.

         (e)      No Restricted Person has transported or arranged for the
transportation of any Hazardous Material to any location which is listed on the
National Priorities List under CERCLA, any location listed for possible
inclusion on the National Priorities List by the Environmental Protection Agency
in CERCLIS, nor, except to the extent that has not had, and could not reasonably
be expected to have, a Material Adverse Effect, any location listed on any
similar state list or which is the subject of federal, state or local
enforcement actions or other investigations which may lead to claims against any
Restricted Person for clean-up costs, remedial work, damages to natural
resources or for personal injury claims, including, but not limited to, claims
under CERCLA.

         (f)      No property now or previously owned or leased by any
Restricted Person is listed or proposed for listing on the National Priority
list promulgated pursuant to CERCLA, in CERCLIS, nor, except to the extent that
has not had, and could not reasonably be expected to have, a Material Adverse
Effect, on any similar state list of sites requiring investigation or clean-up.

         (g)      There are no Liens arising under or pursuant to any
Environmental Laws on any of the real properties or properties owned or leased
by any Restricted Person, and no government actions of which Borrower is aware
have been taken or are in process which could subject any of such properties to
such Liens; nor to the knowledge of Borrower, is any Restricted Person required
to place any notice or restriction relating to the presence of Hazardous
Materials at any properties owned by such Restricted Person in any deed to such
properties.

         (h)      There have been no environmental investigations, studies,
audits, tests, reviews or other analyses for ground water or soil contamination
relating to the Release of Hazardous Materials conducted by or which are in the
possession of any Restricted Person in relation to any properties or facility
now or previously owned or leased by any Restricted Person which have not been
made available to Administrative Agent.

         (i)      All Restricted Persons are conducting their businesses in
material compliance with all applicable Environmental Laws, and have and are in
compliance with all licenses and permits required under any such Laws, unless
failure to so comply has not had, and could not reasonably be expected to have,
a Material Adverse Effect; (ii) none of the operations or properties of Borrower
or any of its Subsidiaries is the subject of federal, or local investigation
evaluating whether any material remedial action is needed to respond to a
release of any Hazardous Materials into the environment or to the improper
storage or disposal (including storage or disposal at offsite locations) of any
Hazardous Materials, unless such remedial action has not had, and could not
reasonably be expected to have, a Material Adverse Effect; and (iii) no
Restricted Person has filed any notice under any Law indicating that any such
Person is

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       46
<PAGE>

responsible for the improper release into the environment, or the improper
storage or disposal, of any material amount of any Hazardous Materials or that
any Hazardous Materials have been improperly released, or are improperly stored
or disposed of, upon any property of any such Person, unless such failure so to
comply has not had, and could not reasonably be expected to have, a Material
Adverse Effect.

         Section 5.14 Names and Places of Business. No Restricted Person has,
during the preceding five years, had, been known by, or used any other trade or
fictitious name, except as disclosed in the Disclosure Schedule. Except as
otherwise indicated in the Disclosure Schedule, the chief executive office and
principal place of business of each Restricted Person are (and for the preceding
five years have been) located at the address of Borrower set out in Section
10.3. Except as indicated in the Disclosure Schedule or otherwise disclosed in
writing to Administrative Agent, no Restricted Person has any other office or
place of business.

         Section 5.15 Borrower's Subsidiaries. Borrower does not presently have
any Subsidiary or own any stock in any other corporation or association except
those listed in the Disclosure Schedule or disclosed to Administrative Agent in
writing. Neither Borrower nor any Restricted Person is a member of any general
or limited partnership, limited liability company, joint venture or association
of any type whatsoever except those listed in the Disclosure Schedule or
disclosed to Administrative Agent in writing. Borrower owns, directly or
indirectly, the equity membership or partnership interest in each of its
Subsidiaries which is indicated in the Disclosure Schedule or as disclosed to
Administrative Agent in writing.

         Section 5.16 Title to Properties; Licenses. Each Restricted Person has
good and defensible title to all of its material properties and assets, free and
clear of all Liens other than Permitted Liens and of all impediments to the use
of such properties and assets in such Restricted Person's business. Each
Restricted Person possesses all licenses, permits, franchises, patents,
copyrights, trademarks and trade names, and other intellectual property (or
otherwise possesses the right to use such intellectual property without
violation of the rights of any other Person) which are necessary to carry out
its business as presently conducted and as presently proposed to be conducted
hereafter, and no Restricted Person is in violation in any material respect of
the terms under which it possesses such intellectual property or the right to
use such intellectual property unless such failure or violation has not had, and
could not reasonably be expected to have, a Material Adverse Effect.

         Section 5.17 Government Regulation. Neither Borrower nor any other
Restricted Person owing Obligations is subject to regulation under the Public
Utility Holding Company Act of 1935, the Federal Power Act, the Investment
Company Act of 1940 (as any of the preceding acts have been amended) or any
other Law which regulates the incurring by such Person of Indebtedness,
including Laws relating to common contract carriers or the sale of electricity,
gas, steam, water or other public utility services.

         Section 5.18 Insider. No Restricted Person, nor any Person having
"control" (as that term is defined in 12 U.S.C. Section 375b(9) or in
regulations promulgated pursuant thereto) of any Restricted Person, is a
"director" or an "executive officer" or "principal shareholder" (as those terms
are defined in 12 U.S.C. Section 375b(8) or (9) or in regulations promulgated
pursuant thereto)

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       47
<PAGE>

of any Lender, of a bank holding company of which any Lender is a Subsidiary or
of any Subsidiary of a bank holding company of which any Lender is a Subsidiary.

         Section 5.19 Solvency. Upon giving effect to the issuance of the Notes,
the execution of the Loan Documents by Borrower and each Guarantor and the
consummation of the transactions contemplated hereby, (i) Borrower and each
Guarantor will be solvent (as such term is used in applicable bankruptcy,
liquidation, receivership, insolvency or similar Laws), and the sum of
Borrower's and each Guarantor's absolute and contingent liabilities, including
the Obligations or guarantees thereof, shall not exceed the fair market value of
such Restricted Person's assets, and (ii) Borrower's and each Guarantor's
capital should be adequate for the businesses in which such Restricted Person is
engaged and intends to be engaged. Neither Borrower nor any Restricted Person
has incurred (whether under the Loan Documents or otherwise), nor does any
Restricted Person intend to incur or believe that it will incur, debts which
will be beyond its ability to pay as such debts mature.

         Section 5.20 Credit Arrangements. Except as set forth on the Disclosure
Schedule, neither Master Partnership nor any of its Subsidiaries (other than any
Restricted Person) (for purposes of this Section, the "related party") is party
to or subject to any credit agreement, loan agreement, indenture, purchase
agreement, guaranty or other arrangement providing for or otherwise relating to
any Indebtedness or any extension of credit (or commitment for any extension of
credit) that requires, by a covenant of such related party or otherwise, such
related party to limit or restrict any action of any Restricted Person or that
obligates such related party to cause any Restricted Person to take any action
(other than (i) limitations or restrictions on transactions or dealings between
any related party or any Restricted Person, and (ii) provisions of the type
contained in the Heritage Note Purchase Agreements as in effect on the date of
this Agreement).

         Section 5.21 Consummation of Transaction. The Transactions have been
consummated in accordance with the Transaction Documents.

                       ARTICLE VI - Affirmative Covenants

         To conform with the terms and conditions under which each Lender is
willing to have credit outstanding to Borrower, and to induce each Lender to
enter into this Agreement and extend credit hereunder, Borrower covenants and
agrees that until the full and final payment of the Obligations and the
termination of this Agreement, unless Majority Lenders, or all Lenders as
required under Section 10.1, have previously agreed otherwise:

         Section 6.1 Payment and Performance. Each Restricted Person will pay
all amounts due under the Loan Documents, to which it is a party, in accordance
with the terms thereof and will observe, perform and comply with every covenant,
term and condition expressed in the Loan Documents to which it is a party.

         Section 6.2 Books, Financial Statements and Reports. Each Restricted
Person will at all times maintain full and accurate books of account and
records. Borrower will maintain and will cause its Subsidiaries to maintain a
standard system of accounting, will maintain its Fiscal

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       48
<PAGE>

Year, and will furnish the following statements and reports to each Lender at
Borrower's expense:

         (a)      As soon as available, and in any event within ninety-five (95)
days after (i) August 31, 2004 and (ii) the end of each Fiscal Year thereafter,
(A) complete Consolidated financial statements of Borrower together with all
notes thereto, prepared in reasonable detail in accordance with GAAP, together
with an unqualified opinion, based on an audit using generally accepted auditing
standards, by KPMG Peat Marwick LLP, or other independent certified public
accountants selected by General Partner and acceptable to Administrative Agent,
stating that such Consolidated financial statements have been so prepared and
(B) supporting unaudited consolidating balance sheets, consolidating statements
of income and cash flows and consolidating statement of partners' capital (or
stockholders' equity, as applicable) of each other Restricted Person. These
financial statements shall contain a Consolidated and consolidating balance
sheet as of the end of such Fiscal Year and Consolidated and consolidating
statements of earnings for such Fiscal Year. Such Consolidated financial
statements shall set forth in comparative form the corresponding figures for the
preceding Fiscal Year (or comparable period). In addition, at the time of
delivery of such statements, Borrower will furnish a certificate signed by such
accountants (A) stating that they have read this Agreement, (B) confirming the
calculations made by Borrower showing compliance (or non-compliance) at the end
of such Fiscal Year with the requirements of Section 7.14, and (C) further
stating that in making their examination and reporting on the Consolidated
financial statements described above they obtained no knowledge of any Default
existing at the end of such Fiscal Year, or, if they did so conclude that a
Default existed, specifying its nature and period of existence.

         (b)      As soon as available, and in any event no later than January
30, 2004 with respect to the Fiscal Quarter ended on November 30, 2003, and
within fifty (50) days after the end of each Fiscal Quarter thereafter, (i)
Borrower's Consolidated balance sheet as of the end of such Fiscal Quarter and
Borrower's Consolidated statements of income, partners' capital and cash flows
for such Fiscal Quarter and for the period from the beginning of the then
current Fiscal Year to the end of such Fiscal Quarter, and (ii) supporting
consolidating balance sheets and statements of income of each other Restricted
Person, all in reasonable detail and prepared in accordance with GAAP, subject
to changes resulting from normal year-end adjustments. Such Consolidated
financial statements shall set forth in comparative form the corresponding
figures for the preceding Fiscal Year. In addition Borrower will, together with
each such set of financial statements and each set of financial statements
furnished under subsection (a) of this section, furnish a certificate in the
form of Exhibit F, signed on behalf of Borrower by the chief financial officer,
principal accounting officer or treasurer of General Partner, stating that such
financial statements are accurate and complete in all material respects
(subject, in the case of Fiscal Quarter-end statements, to normal year-end
adjustments), stating that he has reviewed the Loan Documents, containing
calculations showing compliance (or non-compliance) at the end of such Fiscal
Quarter with the requirements of Section 7.14, and stating that no Default
exists at the end of such Fiscal Quarter or at the time of such certificate or
specifying the nature and period of existence of any such Default.

         (c)      As soon as practical and in any event within ninety five (95)
days after the end of each Fiscal Year, (i) complete Consolidated financial
statements of Master Partnership, together

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with all notes thereto, setting forth in each case, in comparative form,
corresponding Consolidated figures from the preceding annual audit, all in
reasonable detail supported by Grant Thornton LLP, or other independent public
accountants of recognized national standing selected by Master Partnership,
whose report shall be without limitation as to the scope of the audit (provided
that such report shall not include within the scope of the audit the
consolidating statements required by clause (ii)); provided however, that at any
time when Master Partnership shall be subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act, delivery within the time period
specified above of copies of the Annual Report on Form 10-K of Master
Partnership for such Fiscal Year prepared in compliance with the requirements
therefor and filed with the Commission shall be deemed to satisfy the
requirements of this clause (c)(i), and (ii) if requested by Administrative
Agent, consolidating balance sheets, statements of income and cash flows and a
consolidating statement of partners' capital (or stockholders' equity, as
applicable) of Master Partnership and its Subsidiaries for such Fiscal Year,
setting forth, in each case, in comparative form, figures for the preceding
Fiscal Year, certified by an authorized financial officer of Master Partnership
as presenting fairly, in all material respects, the information contained
therein, in accordance with GAAP (except for the absence of footnotes).

         (d)      As soon as practical and in any event within fifty (50) days
after the end of each Fiscal Quarter, (i) Master Partnership's Consolidated
balance sheet as of the end of such Fiscal Quarter and Master Partnership's
Consolidated statements of income, partners' capital and cash flows for such
Fiscal Quarter for the period from the beginning of the current Fiscal Year to
the end of such Fiscal Quarter, setting forth in each case, in comparative form,
figures for the corresponding period in the preceding Fiscal Year, all in
reasonable detail and satisfactory in form to Administrative Agent and certified
by an authorized financial officer of Master Partnership as presenting fairly,
in all material respects, the information contained therein (except for the
absence of footnotes and subject to changes resulting from normal year-end
adjustments), in accordance with GAAP; provided however, that at any time when
Master Partnership shall be subject to the reporting requirements of Section 13
or 15(d) of the Exchange Act, delivery within the time period specified above of
copies of the Quarterly Report on Form 10-Q of Master Partnership for such
Fiscal Quarter prepared in accordance with the requirements therefor and filed
with the Commission shall be deemed to satisfy the requirements of this clause
(d)(i), and (ii) if requested by Administrative Agent, consolidating balance
sheets and statements of income of Master Partnership and its Subsidiaries for
such Fiscal Quarter, setting forth in each case, in comparative form, figures
for the corresponding period in the preceding Fiscal Year, all in reasonable
detail and satisfactory in form to Administrative Agent and certified by an
authorized financial officer of Master Partnership as presenting fairly, in all
material respects, the information contained therein (except for the absence of
footnotes and subject to changes resulting from normal year-end adjustments), in
accordance with GAAP.

         (e)      As soon as available, and in any event within one hundred
twenty (120) days after the end of each Fiscal Year, a business and financial
plan for Borrower (in form reasonably satisfactory to Administrative Agent),
prepared or caused to be prepared by a senior financial officer thereof, setting
forth for the first year thereof, quarterly financial projections and budgets
for Borrower, and thereafter yearly financial projections during the Commitment
Period.

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         (f)      As soon as available, and in any event within thirty (30) days
after the end of each Fiscal Year, an environmental compliance certificate
signed by the president or chief executive officer of General Partner in the
form attached hereto as Exhibit H. Further, if requested by Administrative
Agent, Restricted Persons shall permit and cooperate with an environmental and
safety review made in connection with the operations of Restricted Persons'
properties one time during each Fiscal Year, by consultants selected by
Administrative Agent and reasonably acceptable to Borrower, which review shall,
if requested by Administrative Agent, be arranged and supervised by
environmental legal counsel for Administrative Agent, and the reasonable cost
and expense of such consultant shall be paid by Borrower. The consultant shall
render a verbal or written report, as specified by Administrative Agent, based
upon such review at Restricted Persons' cost and expense and, if in writing, a
copy thereof will be provided to Restricted Persons.

         (g)      Concurrently with the annual renewal of Restricted Persons'
insurance policies, Restricted Persons shall at their own cost and expense, if
requested by Administrative Agent in writing, cause a certificate or report to
be issued by Administrative Agent's professional insurance consultants or other
insurance consultants satisfactory to Administrative Agent certifying that
Restricted Persons' insurance for the next succeeding year after such renewal
(or for such longer period for which such insurance is in effect) complies with
the provisions of this Agreement and the Security Documents.

         (h)      By 10:00 a.m., Boston Massachusetts time, the first Monday of
each Fiscal Quarter, a report on a mark to market basis of all Hedging Contracts
in respect of commodities or purchase, sale or other contracts related to
commodities that are not priced on an index that eliminates price risk as of the
close of business on the previous Friday, and together with such report a
complete list of all net realized losses on any contracts of that type for the
prior twelve months in form satisfactory to Administrative Agent.

         (i)      As soon as available, and in any event no later than the time
of delivery of the financial statements under Section 6.2(b), a report setting
forth volumes, prices and margins for all marketing, gathering and processing
activities of Borrower and its Subsidiaries, in form satisfactory to
Administrative Agent.

         (j)      As soon as available, and in any event no later than the time
of delivery of the financial statements under Section 6.2(b), reports of
commodity price-risk mitigation activities (which shall include all Lender
Hedging Obligation positions), plant operating statements, capital expenditures,
and other acquisitions and divestitures of Borrower and its Subsidiaries, in
form satisfactory to Administrative Agent.

         Section 6.3 Other Information and Inspections. Each Restricted Person
will furnish to each Lender any information which Administrative Agent or any
Lender may from time to time reasonably request concerning any covenant,
provision or condition of the Loan Documents or any matter in connection with
Restricted Persons' businesses and operations. Each Restricted Person will
permit representatives appointed by Administrative Agent (including independent
accountants, auditors, agents, attorneys, appraisers and any other Persons) to
visit and inspect during normal business hours any of such Restricted Person's
property, including its books of

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<PAGE>

account, other books and records, and any facilities or other business assets,
and to make extra copies therefrom and photocopies and photographs thereof, and
to write down and record any information such representatives obtain, and each
Restricted Person shall permit Administrative Agent or its representatives to
investigate and verify the accuracy of the information furnished to
Administrative Agent or any Lender in connection with the Loan Documents and to
discuss all such matters with its officers, employees and, upon prior notice to
Borrower, its representatives. Without limitation of the foregoing, within
ninety (90) days after the Closing Date and on each anniversary of the Closing
Date, and in addition once during each Fiscal Year, if requested by
Administrative Agent at the instruction of Majority Lenders, Borrower shall
permit commercial financial examiners appointed by Administrative Agent to
conduct a commercial finance examination of the business and assets of
Restricted Persons and in connection with such examination to have full access
to and the right to examine, audit, make abstracts and copies from, and inspect
Restricted Persons' records, files, books of account and all other documents,
instruments and agreements to which a Restricted Person is a party. Borrower
shall pay all reasonable costs and expenses of Administrative Agent associated
with any such examination.

         Section 6.4 Notice of Material Events and Change of Address. Each
Restricted Person will notify each Lender Party, not later than five (5)
Business Days after any executive officer of Restricted Persons has knowledge
thereof, stating that such notice is being given pursuant to this Agreement, of:

         (a)      the occurrence of any Material Adverse Change,

         (b)      the occurrence of any Default,

         (c)      the acceleration of the maturity of any Indebtedness owed by
any Restricted Person or of any default by any Restricted Person under any
indenture, mortgage, agreement, contract or other instrument to which any of
them is a party or by which any of them or any of their properties is bound, if
such acceleration or default could cause a Material Adverse Change,

         (d)      the occurrence of any Termination Event,

         (e)      Under any Environmental Law, any claim of $1,000,000 or more,
any notice of potential liability which might reasonably be expected to exceed
such amount, or any other material adverse claim asserted against any Restricted
Person or with respect to any Restricted Person's properties taken as a whole,

         (f)      the filing of any suit or proceeding, or the assertion in
writing of a claim against any Restricted Person or with respect to any
Restricted Person's properties in which an adverse decision could reasonably be
expected to have a Material Adverse Effect, and

         (g)      the occurrence of any event of default by Master Partnership
or any of its Subsidiaries in the payment or performance of (i) any material
obligations such Person is required to pay or perform under the terms of any
indenture, mortgage, deed of trust, security agreement, lease, and franchise, or
other agreement, contract or other instrument or obligation to which it is a
party or by which it or any of its properties is bound, to the extent such
default or event of default could reasonably be expected to have a Material
Adverse Effect in the

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<PAGE>

consolidated financial condition, business, operations, assets or prospects of
the Master Partnership, or (ii) any Indebtedness.

Upon the occurrence of any of the foregoing (other than with respect to Master
Partnership and its Subsidiaries (other than Restricted Persons)), Restricted
Persons will take all necessary or appropriate steps to remedy promptly any such
Material Adverse Effect, Default, acceleration, default, or Termination Event,
to protect against any such adverse claim, to defend any such suit or
proceeding, and to resolve all controversies on account of any of the foregoing.
Restricted Persons will also notify Administrative Agent and Administrative
Agent's counsel in writing at least twenty Business Days prior to the date that
any Restricted Person changes its name or its location under the Uniform
Commercial Code, furnishing with such notice any necessary financing statement
amendments or requesting Administrative Agent and its counsel to prepare the
same.

         Section 6.5 Maintenance of Properties. Each Restricted Person will
maintain, preserve, protect, and keep all Collateral and all other property used
or useful in the conduct of its business in good condition (ordinary wear and
tear excepted) and in compliance with all applicable Laws, and will from time to
time make all repairs, renewals and replacements needed to enable the business
and operations carried on in connection therewith to be promptly and
advantageously conducted at all times.

         Section 6.6 Maintenance of Existence and Qualifications. Each
Restricted Person will maintain and preserve its existence and its rights and
franchises in full force and effect and will qualify to do business in all
states or jurisdictions where required by applicable Law, except where the
failure so to qualify has not had, and could not reasonably be expected to have,
a Material Adverse Effect.

         Section 6.7 Payment of Trade Liabilities, Taxes, etc. Each Restricted
Person will (a) timely file all required tax returns including any extensions;
(b) timely pay all taxes, assessments, and other governmental charges or levies
imposed upon it or upon its income, profits or property; (c) except with respect
to purchases of Hydrocarbon Inventory, within one hundred twenty (120) days
after the date such goods are delivered or such services are rendered, pay all
Liabilities owed by it on ordinary trade terms to vendors, suppliers and other
Persons providing goods and services used by it in the ordinary course of its
business; (d) pay all Liabilities owed by it to sellers of Hydrocarbon Inventory
on or before the thirty-fifth (35th) day following the last day of the month in
which such Hydrocarbon Inventory was delivered or, if later, the due date for
such Liability that may be specified in the purchase agreement for such
Hydrocarbon Inventory (provided such amounts that are customarily paid following
the submission of invoices have been properly invoiced to such Restricted Person
for at least twenty-five (25) days), (e) pay and discharge when due all other
Liabilities now or hereafter owed by it, other than royalty payments suspended
in the ordinary course of business; and (f) maintain appropriate accruals and
reserves for all of the foregoing in accordance with GAAP. Each Restricted
Person may, however, delay paying or discharging any of the foregoing so long as
it is in good faith contesting the validity thereof (or the amount thereof that
remains unpaid) by appropriate proceedings, if necessary, and has set aside on
its books adequate cash reserves therefor in amounts that are required by GAAP.

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<PAGE>

         Section 6.8 Insurance. Each Restricted Person shall at all times
maintain insurance for its property in accordance with the Insurance Schedule
which insurance shall be by financially sound and reputable insurers. Each
Restricted Person will maintain any additional insurance coverage as described
in the respective Security Documents. Upon demand by Administrative Agent any
insurance policies covering Collateral shall be endorsed (a) to provide for
payment of losses to Administrative Agent as its interests may appear, (b) to
provide that such policies may not be canceled or reduced or affected in any
material manner for any reason without fifteen days prior notice to
Administrative Agent, and (c) to provide for any other matters specified in any
applicable Security Document or which Administrative Agent may reasonably
require. Each Restricted Person shall at all times maintain insurance against
its liability for injury to persons or property in accordance with the Insurance
Schedule, which insurance shall be by financially sound and reputable insurers.
Without limiting the foregoing, each Restricted Person shall at all time
maintain liability insurance in accordance with the Insurance Schedule.

         Section 6.9 Performance on Borrower's Behalf. If any Restricted Person
fails to pay any taxes, insurance premiums, expenses, attorneys' fees or other
amounts it is required to pay under any Loan Document, Administrative Agent may
pay the same after notice of such payment by Administrative Agent is given to
Borrower. Borrower shall immediately reimburse Administrative Agent for any such
payments and each amount paid by Administrative Agent shall constitute an
Obligation owed hereunder which is due and payable on the date such amount is
paid by Administrative Agent.

         Section 6.10 Interest. Borrower hereby promises to each Lender to pay
interest at the Default Rate on all Obligations (including Obligations to pay
fees or to reimburse or indemnify any Lender) which Borrower has in this
Agreement promised to pay to such Lender and which are not paid when due. Such
interest shall accrue from the date such Obligations become due until they are
paid.

         Section 6.11 Compliance with Agreements and Law. Each Restricted Person
will perform all material obligations it is required to perform under the terms
of each indenture, mortgage, deed of trust, security agreement, lease, and
franchise, and each agreement, contract or other instrument or obligation to
which it is a party or by which it or any of its properties is bound. Each
Restricted Person will conduct its business and affairs in compliance with all
Laws applicable thereto and will maintain in good standing all licenses that may
be necessary or appropriate to carry on its business, except for failures so to
comply that have not had, and could not reasonably be expected to have, a
Material Adverse Effect.

         Section 6.12 Environmental Matters; Environmental Reviews.

         (a)      Each Restricted Person will comply in all material respects
with all Environmental Laws now or hereafter applicable to such Restricted
Person as well as all contractual obligations and agreements with respect to
environmental remediation or other environmental matters and shall obtain, at or
prior to the time required by applicable Environmental Laws, all environmental,
health and safety permits, licenses and other authorizations necessary for its
operations and will maintain such authorizations in full force and effect.

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<PAGE>

         (b)      Each Restricted Person will promptly furnish to Administrative
Agent all written notices of violation, orders, claims, citations, complaints,
penalty assessments, suits or other proceedings received by any Restricted
Person or General Partner, or of which it has notice, pending or threatened
against any Restricted Person, the potential liability of which exceeds or might
reasonably be expected to exceed $1,000,000 or could reasonably be expected to
have a Material Adverse Effect if resolved adversely against any Restricted
Person, by any governmental authority with respect to any alleged violation of
or non-compliance with any Environmental Laws or any permits, licenses or
authorizations in connection with its ownership or use of its properties or the
operation of its business.

         (c)      Each Restricted Person will promptly furnish to Administrative
Agent all requests for information, notices of claim, demand letters, and other
notifications, received by any Restricted Person or General Partner in
connection with its ownership or use of its properties or the conduct of its
business, relating to potential responsibility with respect to any investigation
or clean-up of Hazardous Material at any location, the potential liability of
which exceeds or might reasonably be expected to exceed $1,000,000 or could
reasonably be expected to have a Material Adverse Effect if resolved adversely
against any Restricted Person.

         Section 6.13 Evidence of Compliance. Each Restricted Person will
furnish to each Lender at such Restricted Person's expense all evidence which
Administrative Agent from time to time reasonably requests in writing as to the
accuracy and validity of or compliance with all representations, warranties and
covenants made by any Restricted Person in the Loan Documents, the satisfaction
of all conditions contained therein, and all other matters pertaining thereto.

         Section 6.14 Agreement to Deliver Security Documents. Restricted
Persons will deliver to further secure the Obligations and any Lender Hedging
Obligations whenever requested by Administrative Agent in its sole and absolute
discretion, deeds of trust, mortgages, chattel mortgages, security agreements,
financing statements and other Security Documents in form and substance
satisfactory to Administrative Agent for the purpose of granting, confirming,
and perfecting first and prior liens or security interests in any real or
personal property now owned or hereafter acquired by any Restricted Person.

         Section 6.15 Perfection and Protection of Security Interests and Liens.
Each Restricted Person will from time to time deliver to Administrative Agent
any financing statements, continuation statements, extension agreements and
other documents, properly completed and executed (and acknowledged when
required) by Restricted Persons in form and substance satisfactory to
Administrative Agent, which Administrative Agent requests for the purpose of
perfecting, confirming, or protecting any Liens or other rights in Collateral
securing any Obligations.

         Section 6.16 Bank Accounts; Offset. To secure the repayment of the
Obligations, each Restricted Person hereby grants to each Lender a security
interest, a lien, and a right of offset, each of which shall be in addition to
all other interests, liens, and rights of any Lender at common Law, under the
Loan Documents, or otherwise, and each of which shall be upon and against (a)
any and all moneys, securities or other property (and the proceeds therefrom) of
such

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<PAGE>

Restricted Person now or hereafter held or received by or in transit to any
Lender from or for the account of such Restricted Person, whether for
safekeeping, custody, pledge, transmission, collection or otherwise, (b) any and
all deposits (general or special, time or demand, provisional or final) of such
Restricted Person with any Lender, and (c) any other credits and claims of such
Restricted Person at any time existing against any Lender, including claims
under certificates of deposit. At any time and from time to time during the
continuance of any Event of Default, each Lender is hereby authorized to
foreclose upon, or to offset against the Obligations then due and payable (in
either case without notice to any Restricted Person), any and all items herein
above referred to. The remedies of foreclosure and offset are separate and
cumulative, and either may be exercised independently of the other without
regard to procedures or restrictions applicable to the other.

         Section 6.17 Guaranties of Subsidiaries. Each Subsidiary of Borrower
now existing or created, acquired or coming into existence after the date hereof
shall execute and deliver to Administrative Agent an absolute and unconditional
guaranty of the timely repayment of the Obligations and the due and punctual
performance of the obligations of Borrower hereunder, which guaranty shall be
satisfactory to Administrative Agent in form and substance. Each Subsidiary of
Borrower existing on the date hereof shall duly execute and deliver such a
guaranty prior to the making of any Loan hereunder. Borrower will cause each of
its Subsidiaries to deliver to Administrative Agent, simultaneously with its
delivery of such a guaranty, written evidence satisfactory to Administrative
Agent and its counsel that such Subsidiary has taken all corporate, limited
liability company or partnership action necessary to duly approve and authorize
its execution, delivery and performance of such guaranty and any other documents
which it is required to execute.

         Section 6.18 Compliance with Agreements. Each Restricted Person shall
observe, perform or comply with any agreement with any Person or any term or
condition of any instrument, if such agreement or instrument is materially
significant to such Restricted Person or to Restricted Persons on a Consolidated
basis or materially significant to any Guarantor, unless any such failure to so
observe, perform or comply is remedied within the applicable period of grace (if
any) provided in such agreement or instrument.

         Section 6.19 Rents. By the terms of the various Security Documents,
certain Restricted Persons are and will be assigning to Administrative Agent,
for the benefit of Lender Parties, all of the "Rents" (as defined therein)
accruing to the property covered thereby. Notwithstanding any such assignments,
so long as no Default has occurred and is continuing, (i) such Restricted
Persons may continue to receive and collect from the payors of such Rents all
such Rents, subject, however, to the Liens created under the Security Documents,
which Liens are hereby affirmed and ratified, and free and clear of such Liens,
use the proceeds of the Rents, and (ii) Administrative Agent will not notify the
obligors of such Rents or take any other action to cause proceeds thereof to be
remitted to Administrative Agent. Upon the occurrence of a Default,
Administrative Agent may exercise all rights and remedies granted under the
Security Documents, including the right to obtain possession of all Rents then
held by such Restricted Persons or to receive directly from the payors of such
Rents all other Rents until such time as such Default is no longer continuing.
If Administrative Agent shall receive any Rent proceeds from any payor at any
time other than during the continuance of a Default, then it shall notify

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<PAGE>

Borrower thereof and (i) upon request and pursuant to the instructions of
Borrower, it shall, if no Default is then continuing, remit such proceeds to the
Borrower and (ii) at the request and expense of Borrower, execute and deliver a
letter to such payors confirming Restricted Persons' right to receive and
collect Rents until otherwise notified by Administrative Agent. In no case shall
any failure, whether purposed or inadvertent, by Administrative Agent to collect
directly any such Rents constitute in any way a waiver, remission or release of
any of its rights under the Security Documents, nor shall any release of any
Rents by Administrative Agent to such Restricted Persons constitute a waiver,
remission, or release of any other Rents or of any rights of Administrative
Agent to collect other Rents thereafter.

         Section 6.20 Operating Practices. Each Restricted Person shall operate
its business in a manner that is consistent with the policies and procedures
approved by the board of directors of General Partner and in effect on, and
delivered to Administrative Agent and Lenders prior to, the date hereof, and
revisions thereto referred to in the following sentence. Borrower shall review
such policies and procedures at least annually, and shall promptly recommend to
the board of directors of General Partner such revisions to such policies and
procedures as may be recommended by Restricted Persons' or, upon consultation
with Borrower and its consultants and at the request of Administrative Agent,
Administrative Agent's third party consultants, to remedy deficiencies in
internal controls, and Borrower shall promptly provide a report to Lenders
regarding such policies and procedures, including such policies and procedures
which the board of directors of General Partner could adopt and has adopted.

         Section 6.21 Regarding the Systems. Each Restricted Person will cause
to be maintained in full force and effect all easements, rights of way,
servitudes, leases, and other agreements necessary to the operations of the
Systems and will properly and timely pay all rents and other payments due under
the provisions thereof. No Restricted Person will permit any of the Systems to
be subject to any contractual or other arrangement for gathering, transporting,
storage or other services (except for contractual or other arrangements existing
on the date of this Agreement which represent not more than two percent (2%) of
the Consolidated annual revenue of Borrower) (i) whereby payment is or can be
deferred for a substantial period after the month in which performance occurred
or is or can be made other than in cash, (ii) which is not on a bona fide
arms-length basis and at commercial reasonable prices, on terms which are
customary in the industry, or (iii) for which prepayments have been received
other than prepayments for services to be performed and settled within 60 days
after the date of such prepayment in the ordinary course of business. No
Restricted Person will permit to exist any imbalances in respect to the Systems
except for those imbalances incurred in the ordinary course of business that are
settled within 60 days after the end of the month in which such imbalance
occurs. No Restricted Person will permit to exist curtailment of services in
connection with the Systems other than as required by applicable Laws or as a
result of events of force majeure. Restricted Persons will use reasonable
efforts to cure any events of force majeure. No Restricted Person will permit to
exist any contract in connection with the Systems for consideration or other
terms in contravention of applicable Laws and will not receive consideration
other than in accordance with applicable contracts and applicable Laws. Each
Restricted Person will cause all material equipment, improvements, fixtures and
other tangible personal property forming a part of the Systems to remain located
on the real property constituting part of the Systems except for (i) portions
thereof temporarily located elsewhere in the course of normal operations of the
Systems, (ii)

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<PAGE>

temporary relocation of meters, treatment units, and other equipment at storage
locations and on terms acceptable to Administrative Agent, and (iii) sales or
disposals permitted by Section 7.5. Each Restricted Person will at all times
cause to be maintained all material governmental licenses and permits necessary
or appropriate to own and operate the Systems. No Restricted Person will permit
any Systems or any material part thereof to be leased to a third party, to cease
to operate (except as a result of customary events of force majeure) or to be
abandoned.

         Section 6.22 Maintenance of Separateness.

         (a)      Borrower will, and will cause each other Restricted Person to:

                  (i) maintain books and records separate from those of any
                  other Person, including any of its partnership interest
                  holders or any Affiliate or Subsidiary;

                  (ii) maintain its assets in such a manner that it is not more
                  costly or difficult to segregate, identify or ascertain such
                  assets; and

                  (iii) observe all organizational formalities.

         (b)      Borrower and the other Restricted Persons, collectively, will:

                  (i) hold themselves out to creditors and the public as
                  separate and distinct from any other Person, including General
                  Partner, Master Partnership and their Subsidiaries (other than
                  Restricted Persons);

                  (ii) conduct their business in their respective names or in
                  business names or trade names of the Borrower, and use
                  stationary, invoices and checks separate from those of General
                  Partner, Master Partnership and their Subsidiaries (other than
                  Restricted Persons); and

                  (iii) not assume, guarantee or pay the debts or obligations of
                  or hold themselves out as being available to satisfy the
                  obligations of any other Person, including General Partner,
                  Master Partnership and their Subsidiaries (other than
                  Restricted Persons), except as is expressly permitted by the
                  terms of this Agreement.

         (c)      To the extent that Borrower or any other Restricted Person
shares the same officers or other employees as any of its Affiliates (other than
another Restricted Person), the salaries of and expenses relating to providing
benefits to such officers and employees shall be fairly allocated among such
entities, and each such entity shall bear its fair share of the salary and
benefit costs associates with all such common officers and employees.

         (d)      To the extent that Borrower or any other Restricted Person
jointly contracts with any of its Affiliates (other than another Restricted
Person) to do business with vendors or service providers or to share overhead
expenses, the costs incurred in doing so shall be allocated fairly among such
entities and each such entity shall bear its fair share of such costs. To the
extent that Borrower or any other Restricted Person contracts or does business
with vendors or service providers where the goods and services are partially for
the benefit of an Affiliate (other than

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<PAGE>

another Restricted Person), the costs incurred in doing so shall be fairly
allocated to or among such entities for whose benefit the goods and services are
provided, and each such entity shall bear its fair share of such costs.

         (e)      To the extent that Borrower or any other Restricted Person
have officers in the same location as any of its Affiliates, (other than another
Restricted Person), there shall be a fair and appropriate allocation of overhead
costs among them, and each such entity shall bear its fair share of such
expenses.

                        ARTICLE VII - Negative Covenants

         To conform with the terms and conditions under which each Lender is
willing to have credit outstanding to Borrower, and to induce each Lender to
enter into this Agreement and make the Loans, Borrower covenants and agrees that
until the full and final payment of the Obligations and the termination of this
Agreement, unless Majority Lenders, or all Lenders as required under Section
10.1, have previously agreed otherwise:

         Section 7.1 Indebtedness. No Restricted Person will in any manner owe
or be liable for Indebtedness except:

         (a)      the Obligations;

         (b)      Indebtedness of Borrower arising under Hedging Contracts
permitted under Section 7.3;

         (c)      Indebtedness of any Restricted Person owing to another
Restricted Person;

         (d)      guaranties by Borrower of trade payables of any of its
Subsidiaries incurred and paid in the ordinary course of business on ordinary
trade terms;

         (e)      Permitted Subordinated Debt;

         (f)      Indebtedness arising from the honoring by a bank or other
financial institution of a check, draft or similar instrument drawn against
insufficient funds in the ordinary course of business, provided that such
Indebtedness is extinguished within 2 Business Days after its incurrence;

         (g)      Indebtedness owed to any Person providing workers'
compensation, health, disability or other employee benefits or property,
casualty or liability insurance to any Restricted Person in the ordinary course
of business, pursuant to reimbursement or indemnification obligations to such
Person;

         (h)      Indebtedness in respect of performance bonds, bid bonds,
appeal bonds, surety bonds and similar obligations, in each case provided in the
ordinary course of business, including those incurred to secure health, safety
and environmental obligations in the ordinary course of business; and

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         (i)      other Indebtedness of Borrower not to exceed in the aggregate
principal amount of $5,000,000 at any one time outstanding.

         Section 7.2 Limitation on Liens. No Restricted Person will create,
assume or permit to exist (i) any Lien upon any accounts, inventory, cash or
investment securities which constitute Collateral except (A) Permitted Inventory
Liens, (B) statutory Liens in respect of First Purchase Payables, (C) Liens
described in clauses (a), (c), (e) and (f) of clause (ii) below, and (D) any
other Liens expressly permitted to encumber such Collateral under any Security
Document covering such Collateral or (ii) any Lien upon any of the properties or
assets, other than such Collateral described in clause (i) above which it now
owns or hereafter acquires except the following (Liens, to the extent permitted
by this Section, herein called "Permitted Liens"):

         (a)      Liens created pursuant to this Agreement or the Security
Documents and Liens existing on the date of this Agreement and listed in the
Disclosure Schedule.

         (b)      Liens imposed by any governmental authority for taxes,
assessments or charges not yet due or the validity of which is being contested
in good faith and by appropriate proceedings, if necessary, for which adequate
reserves are maintained on the books of any Restricted Person in accordance with
GAAP;

         (c)      pledges or deposits of cash or securities under worker's
compensation, unemployment insurance or other social security legislation;

         (d)      carriers', warehousemen's, mechanics', materialmen's,
repairmen's, landlord's, or other like Liens (including, without limitation,
Liens on property of any Restricted Person in the possession of storage
facilities, pipelines or barges) arising in the ordinary course of business for
amounts which are not more than 60 days past due or the validity of which is
being contested in good faith and by appropriate proceedings, if necessary, and
for which adequate reserves are maintained on the books of any Restricted Person
in accordance with GAAP;

         (e)      Liens on cash margin collateral securing only Hedging
Contracts permitted under Section 7.3;

         (f)      deposits of cash or securities to secure the performance of
bids, trade contracts (other than for borrowed money), leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of
a like nature incurred in the ordinary course of business;

         (g)      easements, rights-of-way, restrictions and other similar
encumbrances incurred in the ordinary course of business and encumbrances
consisting of zoning restrictions, easements, licenses, restrictions on the use
of real property or minor imperfections in title thereto which, in the
aggregate, are not material in amount, and which do not in any case materially
detract from the value of the property subject thereto or interfere with the
ordinary conduct of the business of any Restricted Person;

         (h)      Liens in respect of operating leases and Capital Leases
permitted under Section 7.1 covering only the property subject thereto;

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         (i)      rights reserved to or vested in any governmental authority by
the terms of any right, power, franchise, grant, license or permit, or by any
provision of law, to revoke or terminate any such right, power, franchise,
grant, license or permit or to condemn or acquire by eminent domain or similar
process;

         (j)      rights reserved to or vested by Law in any governmental
authority to in any manner, control or regulate in any manner any of the
properties of any Restricted Person or the use thereof or the rights and
interests of any Restricted Person therein, in any manner under any and all
Laws;

         (k)      rights reserved to the grantors of any properties of any
Restricted Person, and the restrictions, conditions, restrictive covenants and
limitations, in respect thereto, pursuant to the terms, conditions and
provisions of any rights-of-way agreements, contracts or other agreements
therewith;

         (l)      inchoate Liens in respect of pending litigation or with
respect to a judgment which has not resulted in an Event of Default under
Section 8.1; and

         (m)      Liens existing on any property of a Person at the time such
Person becomes a Restricted Person or existing at the time of acquisition upon
any property acquired by the purchase, merger or consolidation or otherwise
(whether or not the Indebtedness secured thereby shall have been assumed);
provided, however, that in the case of any such Lien (i) such Lien shall at all
times be confined solely to any such property and, if required by the terms of
the instrument creating such Lien, other property which is an improvement to
such acquired property, (ii) such Lien was not created in anticipation of such
transaction, and (iii) the Indebtedness secured by such Lien shall be permitted
under Section 7.1.

         Section 7.3 Hedging Contracts. No Restricted Person will be a party to
or in any manner be liable on:

         (a)      any Hedging Contract, except:

                  (i) Hedging Contracts entered into by Borrower with the
         purpose and effect of fixing interest rates on a principal amount of
         indebtedness of Borrower that is accruing interest at a variable rate;
         provided that (A) the aggregate notional amount of such contracts never
         exceeds one hundred percent (100%) of the anticipated outstanding
         principal balance of the Indebtedness to be hedged by such contracts or
         an average of such principal balances calculated using a generally
         accepted method of matching interest swap contracts to declining
         principal balances, (B) the floating rate index of each such contract
         generally matches the index used to determine the floating rates of
         interest on the corresponding Indebtedness to be hedged by such
         contract and (C) each such contract is with a counterparty or has a
         guarantor of the obligation of the counterparty who (unless such
         counterparty is a Lender or an Affiliate of any Lender at the time such
         contract is entered into) at the time the contract is made has
         long-term unsecured and unenhanced debt obligations rated BBB+ or Baa1
         or better, respectively, by either Rating Agency or is otherwise
         acceptable to Majority Lenders.

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                  (ii) Hedging Contracts by a Restricted Person with the purpose
         and effect of fixing the price for Hydrocarbon Inventory not to exceed
         100% of Projected Open Hydrocarbon Inventory for the current month and
         future months; provided, that each such contract is with a counterparty
         or has a guarantor of the obligation of the counterparty who (unless
         such counterparty is a Lender or an Affiliate of any Lender at the time
         such contract is entered into) at the time the contract is made has
         long-term unsecured and unenhanced debt obligations rated BBB+ or Baa1
         or better, respectively, by either Rating Agency or is otherwise
         acceptable to Majority Lenders. "Projected Open Hydrocarbon Inventory"
         means (A) the Hydrocarbon Inventory held by such Restricted Person for
         which price risk is not otherwise substantially eliminated, or (B) the
         Hydrocarbon Inventory anticipated to be acquired and received, or
         anticipated to be sold and delivered, by such Restricted Person
         (including, without limitation, natural gas liquids from processing by
         a Restricted Person), with such volume and period as corresponds to the
         volume and period under such Hedging Contract, for which price risk is
         not otherwise substantially eliminated (such as Hydrocarbon Inventory
         to be acquired or sold under any contract that is priced on index that
         substantially eliminates price risk for such Hydrocarbon Inventory).

         (b)      any commodity, interest rate, currency or other swap, option,
collar or other derivative transaction pursuant to which any Restricted Person
speculates on the movement of commodity prices, securities prices, interest
rates, financial markets, currency markets or other items; provided, that
nothing contained in this sentence shall prohibit any Restricted Person from
entering into non-speculative transactions permitted by Section 7.3(a).

         Section 7.4 Limitation on Mergers, Issuances of Securities. Except as
expressly provided in this section, no Restricted Person will (a) enter into any
transaction of merger or consolidation or amalgamation, or liquidate, wind up or
dissolve itself (or suffer any liquidation or dissolution), or acquire all or a
substantial portion of the business, assets or operations of a Person (whether
in a single transaction or a series of related transactions) of, or capital
stock of, or be a party to any acquisition of, any Person, except (i) Permitted
Investments and (ii) Permitted Acquisitions; or (b) sell, transfer, lease,
exchange, alienate or otherwise dispose of, in one transaction or a series of
transactions, any part of its business or property, whether now owned or
hereafter acquired, except for sales or transfers not prohibited under Section
7.5 hereof. Any Person, other than Borrower, that is a Subsidiary of a
Restricted Person may, however, be merged into or consolidated with (i) another
Subsidiary of such Restricted Person, so long as a Restricted Person is the
surviving business entity, or (ii) such Restricted Person, so long as such
Restricted Person is the surviving business entity. Borrower will not issue any
securities other than (i) limited partnership interests and any options or
warrants giving the holders thereof only the right to acquire such interests,
(ii) general partnership interests issued to LA GP and (iii) debt securities
permitted by Section 7.1. No Subsidiary of Borrower will issue any additional
shares of its capital stock or other securities or any options, warrants or
other rights to acquire such additional shares or other securities except a
direct Subsidiary of a Restricted Person may issue additional shares or other
securities to such Restricted Person or to Borrower so long as such Subsidiary
is a Wholly Owned Subsidiary of Borrower after giving effect thereto. No
Subsidiary of Borrower which is a partnership will allow any diminution of
Borrower's interest (direct or indirect) therein.

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         Section 7.5 Limitation on Sales of Property. No Restricted Person will
sell, transfer, lease, exchange, alienate or dispose of any Collateral or any of
its other assets or properties or any material interest therein except:

         (a)      equipment and other personal property and fixtures that are
either (i) obsolete for their intended purposes and disposed of in the ordinary
course of business, or (ii) replaced by personal property or fixtures of
comparable suitability owned by such Restricted Person free and clear of all
Liens except Permitted Liens;

         (b)      inventory which is sold in the ordinary course of business on
ordinary trade terms;

         (c)      sales or transfers, subject to the Security Documents, by a
Person (other than Borrower) that is a Subsidiary of a Restricted Person to such
Restricted Person or to a Wholly Owned Subsidiary of such Restricted Person; and

         (d)      sales, transfers or other dispositions of other property for
fair consideration that are in the best interests of Borrower and do not and
will not materially impair or diminish the value of any Restricted Person's
financial condition, business or operations; provided that:

                  (i) prior to and immediately after giving effect to such
         proposed sale no Default or Event of Default shall exist and be
         continuing, and the consummation of any such transaction would not
         result in a violation of Section 7.14, calculated for such purpose as
         of the date on which such sale is to be consummated on a pro forma
         basis after giving effect to any such sale, with Consolidated EBITDA
         calculated as at the last day of the most recently ended Fiscal Quarter
         as if such sale had occurred on the first day of the relevant four
         quarter period;

                  (ii) such sale is for consideration consisting of not less
         than 90% cash;

                  (iii) the proceeds of such sale, net of legal fees and other
         fees and expenses incurred in connection with such sale (the "Net Sale
         Proceeds"), shall have been applied as follows: (x) within one hundred
         twenty (120) days after the date of such receipt of Net Sale Proceeds
         to a Permitted Reinvestment, or (y) to the extent Net Sale Proceeds
         have not been applied pursuant to the immediately preceding clause (x),
         such amount (the "Excess Sale Proceeds") shall have been applied to
         prepay the Term Loans and Revolver Loans as provided in Section 2.6(b)
         (as used herein, "Permitted Reinvestment" means capital assets that
         will become a part of the Restricted Persons' Hydrocarbon Inventory
         marketing, gathering, transmission, processing, treating and pipeline
         operations, excluding Maintenance Capital Expenditures, and well hook
         up costs;

                  (iv) upon receipt of Net Sale Proceeds by a Restricted Person
         and until the application thereof as provided in clause (iii)(x) or (y)
         (such amount herein called the "Unused Proceeds Amount"), such
         Restricted Person shall either, or in combination equal to the total of
         such Net Sale Proceeds, both (A) maintain such Net Sale Proceeds in a
         segregated account with Administrative Agent or (B) apply such Net Sale
         Proceeds to prepay the Revolver Loans but without reduction of the
         Revolver Commitment; and

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                  (v) Administrative Agent shall have received an officer's
         certificate, satisfactory to Administrative Agent, at least 30 days
         prior to the consummation of such sale setting forth in reasonable
         detail satisfaction of the requirements of clauses (i) and (ii) of this
         Section 7.5 (d) and the calculation of the projected Net Sale Proceeds.

Any proceeds of insurance in respect of casualty to property that Borrower has
determined (which determination must be made with reasonable promptness
following such casualty) will not be applied to the repair or replacement
thereof in accordance with the Security Documents shall be treated as Net Sale
Proceeds upon such determination. No Restricted Person will sell, transfer or
otherwise dispose of capital stock of or interest in any of its Subsidiaries
except to Borrower or a Wholly Owned Subsidiary of Borrower. No Restricted
Person will discount, sell, pledge or assign any notes payable to it, accounts
receivable or future income. So long as no Default then exists, Administrative
Agent will, at Borrower's request and expense, execute a release, satisfactory
to Borrower and Administrative Agent, of any Collateral so sold, transferred,
leased, exchanged, alienated or disposed of pursuant to clauses (a), (b) or (d)
of this Section. No Restricted Person will engage in "trading" of Hydrocarbon
Inventory or in the purchase or sale of Hydrocarbon Inventory other than
pipeline loss allowance and physical gains.

         Section 7.6 Limitation on Dividends and Redemptions. No Restricted
Person will declare or pay any dividends on, or make any other distribution in
respect of, any class of its capital stock or any partnership, limited liability
company or other interest in it, nor will any Restricted Person directly or
indirectly make any capital contribution of any nature to or purchase, redeem,
acquire or retire any shares of the capital stock of or partnership or limited
liability company interests in any Restricted Person (whether such interests are
now or hereafter issued, outstanding or created), or cause or permit any
reduction or retirement of the capital stock of any Restricted Person, while any
Loan or commitment hereunder is outstanding. Notwithstanding the foregoing, (i)
Subsidiaries of a Restricted Person shall not be restricted, directly or
indirectly, from declaring and paying dividends or making any other
distributions to such Restricted Person, and to such Subsidiary's Subsidiary GP
pursuant to and in accordance with such Subsidiary's partnership agreement, (ii)
no Restricted Person shall be restricted from making capital contributions of
any nature to a Wholly Owned Subsidiary of such Restricted Person, and (iii) so
long as Borrower shall be in pro forma compliance with each covenant set forth
in Section 7.14 prior to and after giving effect to any distribution, and so
long as no Event of Default has occurred and is continuing or would result
therefrom, Borrower may declare or order and make, pay or set apart, during each
Fiscal Quarter, a distribution in respect of its partnership interests if such
distribution, together with all other such distributions during such Fiscal
Quarter do not exceed Available Cash for the immediately preceding Fiscal
Quarter.

         Section 7.7 Limitation on Investments and New Businesses. No Restricted
Person will (a) make any expenditure or commitment or incur any obligation or
enter into or engage in any transaction except in the ordinary course of
business, (b) engage directly or indirectly in any business or conduct any
operations except in connection with or incidental to its present businesses and
operations, (c) make any acquisitions of or capital contributions to or other
Investments in any Person, other than Permitted Investments, or (d) make any
other acquisitions of properties or assets except in the ordinary course of
business; provided that the forgoing shall not prohibit any Restricted Person
from making any acquisition of assets consisting of capital

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<PAGE>

assets that will become a part of the Restricted Persons' Hydrocarbon Inventory
marketing, gathering, transmission, processing, treating and pipeline operations
or any acquisition that is permitted by the terms of this Agreement including
Permitted Acquisitions. All transactions permitted under the foregoing
subsections (a) through (d), inclusive, are subject to Section 7.5. LA GP will
not engage in any business other than the ownership of the general partnership
interest of the Borrower.

         Section 7.8 Limitation on Credit Extensions. Except for Permitted
Investments and Hedging Contracts permitted under Section 7.3(a) hereof, no
Restricted Person will extend credit, make advances or make loans other than
normal and prudent extensions of credit to customers buying goods and services
in the ordinary course of business or to another Restricted Person in the
ordinary course of business, which extensions shall not be for longer periods
than those extended by similar businesses operated in a normal and prudent
manner.

         Section 7.9 Transactions with Affiliates. No Restricted Person will
engage in any material transaction with any of its Affiliates except: (a)
transactions among Borrower and Wholly Owned Subsidiaries of Borrower, subject
to the other provisions of this Agreement, (b) Permitted HHI Investments, and
(c) transactions entered into in the ordinary course of business of such
Restricted Person on terms which are no less favorable to such Restricted Person
than those which would have been obtainable at the time in arm's-length
transactions with Persons other than such Affiliates.

         Section 7.10 Prohibited Contracts. Except as expressly provided for in
the Loan Documents and as described in the Disclosure Schedule, no Restricted
Person will, directly or indirectly, enter into, create, or otherwise allow to
exist any contract or other consensual restriction on the ability of any
Subsidiary of Borrower to: (a) pay dividends or make other distributions to
Borrower, (b) redeem equity interests held in it by Borrower, (c) repay loans
and other indebtedness owing by it to Borrower, or (d) transfer any of its
assets to Borrower. No Restricted Person will, directly or indirectly, enter
into, create, or otherwise allow to exist any contract or other consensual
restriction on the ability of any Restricted Person to create Liens on any of
its assets or property to secure the Obligations. No Restricted Person will
enter into any "take-or-pay" contract or other contract or arrangement for the
purchase of goods or services which obligates it to pay for such goods or
service regardless of whether they are delivered or furnished to it other than
contracts for pipeline capacity or for services in either case reasonably
anticipated to be utilized in the ordinary course of business. No Restricted
Person will amend or permit any amendment to any contract or lease which
releases, qualifies, limits, makes contingent or otherwise detrimentally affects
the rights and benefits of Administrative Agent or any Lender under or acquired
pursuant to any Security Documents. No ERISA Affiliate will incur any obligation
to contribute to any "multiemployer plan" as defined in Section 4001 of ERISA
that is subject to Title IV of ERISA.

         Section 7.11 Open Position; Trading. No Restricted Person shall at any
time hold any inventory (excluding any inventory classified as a long term asset
and working inventory not held for resale) or enter into or be obligated under
any purchase or sale contract that is not priced on an index that eliminates
price risk, in either case for which there is not an offsetting sale or purchase
agreement, an offsetting physical inventory position (excluding inventory
classified as

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<PAGE>

a long term asset and working inventory not held for resale), or an offsetting
Hedging Contract, in each case that eliminates price risk, provided that any
such offsetting agreement, inventory or Hedging Contract shall also eliminate
any unusual or speculative basis risk. No Restricted Person shall fail to settle
within thirty (30) days after the occurrence thereof, any pipeline delivery or
receipt imbalance position or any other imbalance position. However, Restricted
Persons may have such inventory, such purchase or sale obligations, and such
imbalance positions not otherwise permitted by the forgoing sentences of this
Section 7.11; provided, that the aggregate liability of Restricted Persons on
same does not exceed $5,000,000 at any one time. No Restricted Person will
engage in trading, purchasing, selling or exchanging Hydrocarbon Inventory or
any contract therefor except incidental to the business of gathering,
transmitting, blending, storing or marketing by Restricted Persons.

         Section 7.12 Deposit Accounts. No Restricted Person shall at any time
maintain any Deposit Account at any Bank (as such terms are defined in Article 9
of the UCC) other than Administrative Agent, except for Deposit Accounts whose
deposits do not at any time exceed the aggregate amount of $1,500,000. No
proceeds of Accounts or other Collateral shall be deposited (whether by check,
wire transfer or lock-box service arrangement) in any Deposit Account other than
a Deposit Account maintained at Administrative Agent or an account subject to an
account access control agreement satisfactory to Administrative Agent.

         Section 7.13 Commingling of Deposit Accounts and Accounts. Borrower
will not, nor will it permit any of its Subsidiaries to, commingle their
respective Deposit Accounts or Accounts with the Deposit Accounts or Accounts of
(i) Heritage OLP or any of its Subsidiaries or (ii) Master Partnership or any of
the Intermediate Entities.

         Section 7.14 Financial Covenants.

         (a)      Interest Coverage Ratio. The ratio of Consolidated EBITDA for
each period of four consecutive Fiscal Quarters, to Consolidated Interest
Expense for such period, will never be less than 2.75 to 1.0.

         (b)      Leverage Ratio. (i) At the end of each Fiscal Quarter, (ii) on
each date on which Borrower makes a distribution permitted under Section 7.6,
and (iii) on the date of each Permitted Acquisition, both immediately prior to
and after giving effect to the consummation thereof, the Leverage Ratio will not
be greater than 4.0 to 1.0.

         (c)      Adjusted Consolidated Funded Indebtedness to Consolidated
EBITDA. (i) At the end of each Fiscal Quarter, (ii) on each date on which
Borrower makes a distribution permitted under Section 7.6, and (iii) on the date
of each Permitted Acquisition, both immediately prior to and after giving effect
to the consummation thereof, the ratio of Adjusted Consolidated Funded
Indebtedness to Adjusted Consolidated EBITDA will not be greater than (a) 5.25
to 1.0 on any applicable date of determination from the Closing Date and prior
to November 30, 2005, and (b) 5.0 to 1.0 on any applicable date of determination
thereafter.

                 ARTICLE VIII - Events of Default and Remedies

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         Section 8.1 Events of Default. Each of the following events constitutes
an Event of Default under this Agreement:

         (a)      Any Restricted Person fails to pay the principal component of
any Loan or any reimbursement obligation with respect to any Letter of Credit
when due and payable, whether at a date for the payment of a fixed installment
or as a contingent or other payment becomes due and payable or as a result of
acceleration or otherwise;

         (b)      Any Restricted Person fails to pay any Obligation (other than
the Obligations in subsection (a) above), whether at a date for the payment of a
fixed installment or as a contingent or other payment becomes due and payable or
as a result of acceleration or otherwise, within three Business Days after the
same becomes due;

         (c)      Any event defined as a "default" or "event of default" in any
Loan Document occurs, and the same is not remedied within the applicable period
of grace (if any) provided in such Loan Document;

         (d)      Any Restricted Person fails to duly observe, perform or comply
with any covenant, agreement or provision of Section 6.7(d) and such failure
remains unremedied for ten (10) days; or any Restricted Person fails to duly
observe, perform or comply with any covenant, agreement or provision of Section
6.4, Section 6.21 or Article VII;

         (e)      Any Restricted Person fails (other than as referred to in
subsections (a), (b), (c) or (d) above) to duly observe, perform or comply with
any covenant, agreement, condition or provision of any Loan Document to which it
is a party, and such failure remains unremedied for a period of thirty (30) days
after notice of such failure is given by Administrative Agent to Borrower;

         (f)      Any representation or warranty previously, presently or
hereafter made in writing by or on behalf of any Restricted Person in connection
with any Loan Document shall prove to have been false or incorrect in any
material respect on any date on or as of which made;

         (g)      Any Loan Document at any time ceases to be valid, binding and
enforceable as warranted in Section 5.5 for any reason other than its release or
subordination by Lenders or Administrative Agent (as permitted under Section
10.1);

         (h)      Any Restricted Person shall default in the payment when due of
any principal of or interest on any of its other Indebtedness in excess of
$1,500,000 in the aggregate (other than Indebtedness the validity of which is
being contested in good faith by appropriate proceedings and for which adequate
reserves with respect thereto are maintained on the books of such Restricted
Person in accordance with GAAP), or any event specified in any note, agreement,
indenture or other document evidencing or relating to any such Indebtedness
shall occur if the effect of such event is to cause, or (with the giving of any
notice or the lapse of time or both) to permit the holder or holders of such
Indebtedness (or a trustee or agent on behalf of such holder or holders) to
cause, such Indebtedness to become due, or to be prepaid in full (whether by
redemption, purchase, offer to purchase or otherwise), prior to its stated
maturity;

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         (i)      Either (i) any "accumulated funding deficiency" (as defined in
Section 412(a) of the Code) in excess of $1,000,000 exists with respect to any
ERISA Plan, whether or not waived by the Secretary of the Treasury or his
delegate, or (ii) any Termination Event occurs with respect to any ERISA Plan
and the then current value of such ERISA Plan's benefit liabilities exceeds the
then current value of such ERISA Plan's assets available for the payment of such
benefit liabilities by more than $1,000,000 (or in the case of a Termination
Event involving the withdrawal of a substantial employer, the withdrawing
employer's proportionate share of such excess exceeds such amount);

         (j)      Any Restricted Person:

                  (i) has entered against it of a judgment, decree or order for
         relief by a Tribunal of competent jurisdiction in an involuntary
         proceeding commenced under any applicable bankruptcy, insolvency or
         other similar Law of any jurisdiction now or hereafter in effect,
         including the federal Bankruptcy Code, as from time to time amended, or
         has any such proceeding commenced against it, in each case, which
         remains undismissed for a period of sixty days; or

                  (ii) commences a voluntary case under any applicable
         bankruptcy, insolvency or similar Law now or hereafter in effect,
         including the federal Bankruptcy Code, as from time to time amended; or
         applies for or consents to the entry of an order for relief in an
         involuntary case under any such Law; or makes a general assignment for
         the benefit of creditors; or is generally unable to pay (or admits in
         writing its inability to so pay) its debts as such debts become due; or
         takes corporate or other action to authorize any of the foregoing; or

                  (iii) has entered against it the appointment of or taking
         possession by a receiver, liquidator, assignee, custodian, trustee,
         sequestrator or similar official of all or a substantial part of its
         assets in a proceeding brought against or initiated by it, and such
         appointment or taking possession is neither made ineffective nor
         discharged within sixty days after the making thereof, or such
         appointment or taking possession is at any time consented to, requested
         by, or acquiesced to by it; or

                  (iv) has entered against it the appointment of or taking
         possession by a receiver, liquidator, assignee, custodian, trustee,
         sequestrator or similar official of any part of the Collateral in a
         proceeding brought against or initiated by it, and such appointment or
         taking possession is neither made ineffective nor discharged within
         sixty days after the making thereof, or such appointment or taking
         possession is at any time consented to, requested by, or acquiesced to
         by it; or

                  (v) has entered against it a final judgment for the payment of
         money in excess of $1,500,000 (in each case not covered by insurance
         satisfactory to Administrative Agent in its discretion), unless the
         same is discharged within thirty days after the date of entry thereof
         or an appeal or appropriate proceeding for review thereof is taken
         within such period and a stay of execution pending such appeal is
         obtained; or

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                  (vi) suffers a writ or warrant of attachment or any similar
         process to be issued by any Tribunal against all or any substantial
         part of its assets or any part of the Collateral, and such writ or
         warrant of attachment or any similar process is not stayed or released
         within thirty days after the entry or levy thereof or after any stay is
         vacated or set aside;

         (k)      Any Change of Control occurs;

         (l)      Borrower directly or indirectly declares, orders or pays any
dividend on, any distribution in respect of, or any purchase, redemption,
acquisition or retirement of, any partnership or other equity interest in
Borrower, individually or in the aggregate, for any Fiscal Year in an amount
greater than the product of (i) Borrower's Percentage of Aggregate Available
Cash, multiplied by (ii) the Aggregate Partner Obligations;

         (m)      Master Partnership or any of the Intermediate Entities shall
incur any Indebtedness that is secured or has a weighted average life or
maturity of less than six (6) months after the Maturity Date; or

         (n)      Any event of default under any agreement governing secured
indebtedness of Heritage OLP relating to (i) bankruptcy, reorganization,
compromise, arrangement, insolvency, readjustment of debt, dissolution or
liquidation or similar law with respect to Heritage OLP or any of its
Subsidiaries, beyond any period of grace provided with respect thereto in such
agreement, or (ii) non-payment of such secured indebtedness or any other
indebtedness of Heritage OLP or any of its Subsidiaries, subject to the minimum
dollar amount threshold of such indebtedness set forth in such agreement,
provided that such non-payment continues for a period of three (3) Business Days
beyond any period of grace provided with respect thereto in such agreement,
unless, prior to the end of the three (3) Business Day period the lenders party
to such agreement have accelerated the maturity of such indebtedness thereunder
or blocked the payment or otherwise limited the payment by Heritage OLP of any
scheduled "restricted payment" distribution in respect of any partnership or
other equity interest in Heritage OLP, in which case such three (3) Business Day
period shall no longer apply.

Upon the occurrence of an Event of Default described in subsection (j)(i),
(j)(ii) or (j)(iii) of this section with respect to Borrower, all of the
Obligations shall thereupon be immediately due and payable, without demand,
presentment, notice of demand or of dishonor and nonpayment, protest, notice of
protest, notice of intention to accelerate, declaration or notice of
acceleration, or any other notice or declaration of any kind, all of which are
hereby expressly waived by Borrower and each Restricted Person who at any time
ratifies or approves this Agreement. Upon any such acceleration, any obligation
of any Lender to make any further Loans and any obligation of LC Issuer to issue
Letters of Credit hereunder shall be permanently terminated. During the
continuance of any other Event of Default, Administrative Agent at any time and
from time to time may with the consent of Majority Lenders (and upon written
instructions from Majority Lenders, Administrative Agent shall), without notice
to Borrower or any other Restricted Person, do either or both of the following:
(1) terminate any obligation of Lenders to make Loans hereunder and any
obligation of LC Issuer to issue Letters of Credit hereunder, and (2) declare
any or all of the Obligations immediately due and payable, and all such
Obligations shall thereupon be immediately due and payable, without demand,
presentment, notice of

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demand or of dishonor and nonpayment, protest, notice of protest, notice of
intention to accelerate, declaration or notice of acceleration, or any other
notice or declaration of any kind, all of which are hereby expressly waived by
Borrower and each Restricted Person who at any time ratifies or approves this
Agreement.

         Section 8.2 Remedies. If any Default shall occur and be continuing,
each Lender Party may protect and enforce its rights under the Loan Documents by
any appropriate proceedings, including proceedings for specific performance of
any covenant or agreement contained in any Loan Document, and each Lender Party
may enforce the payment of any Obligations due it or enforce any other legal or
equitable right which it may have. All rights, remedies and powers conferred
upon Lender Parties under the Loan Documents shall be deemed cumulative and not
exclusive of any other rights, remedies or powers available under the Loan
Documents or at Law or in equity.

         Section 8.3 Application of Proceeds after Acceleration. If
Administrative Agent collects or receives money on account of the Obligations
after the acceleration of the Obligations as provided in Section 8.1,
Administrative Agent shall distribute all money so collected or received:

         (a)      first to any reimbursements due Administrative Agent hereunder
or under any of the Security Documents; and

         (b)      then ratably to the payment of the Obligations, including LC
Obligations (and among the outstanding Obligations in the manner provided in
Section 3.1), and the Lender Hedging Obligations.

Administrative Agent shall have no responsibility to determine the existence or
amount of Lender Hedging Obligations and may reserve from the application of
amounts under this Section amounts distributable in respect of Lender Hedging
Obligations until it has received evidence satisfactory to it of the existence
and amount of such Lender Hedging Obligations.

                       ARTICLE IX - Administrative Agent

         Section 9.1 Appointment and Authority. Each Lender Party hereby
irrevocably authorizes Administrative Agent, and Administrative Agent hereby
undertakes, to receive payments of principal, interest and other amounts due
hereunder as specified herein and to take all other actions and to exercise such
powers under the Loan Documents as are specifically delegated to Administrative
Agent by the terms hereof or thereof, together with all other powers reasonably
incidental thereto. The relationship of Administrative Agent to the other Lender
Parties is only that of one commercial lender acting as administrative agent for
others, and nothing in the Loan Documents shall be construed to constitute
Administrative Agent a trustee or other fiduciary for any Lender Party or any
holder of any participation in a Note nor to impose on Administrative Agent
duties and obligations other than those expressly provided for in the Loan
Documents. With respect to any matters not expressly provided for in the Loan
Documents and any matters which the Loan Documents place within the discretion
of Administrative Agent, Administrative Agent shall not be required to exercise
any discretion or take any action, and it

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may request instructions from Lenders with respect to any such matter, in which
case it shall be required to act or to refrain from acting (and shall be fully
protected and free from liability to all Lender Parties in so acting or
refraining from acting) upon the instructions of Majority Lenders (including
itself) or all Lenders, if required, provided, however, that Administrative
Agent shall not be required to take any action which exposes it to a risk of
personal liability that it considers unreasonable or which is contrary to the
Loan Documents or to applicable Law. Upon receipt by Administrative Agent from
Borrower of any communication calling for action on the part of Lenders or upon
notice from Borrower or any Lender to Administrative Agent of any Default or
Event of Default, Administrative Agent shall promptly notify each other Lender
thereof.

         Section 9.2 Exculpation, Administrative Agent's Reliance, Etc. Neither
Administrative Agent nor any of its directors, officers, agents, attorneys, or
employees shall be liable for any action taken or omitted to be taken by any of
them under or in connection with the Loan Documents, INCLUDING THEIR NEGLIGENCE
OF ANY KIND, except that each shall be liable for its own gross negligence or
willful misconduct. Without limiting the generality of the foregoing,
Administrative Agent (a) may treat the payee of any Note as the holder thereof
until Administrative Agent receives written notice of the assignment or transfer
thereof in accordance with this Agreement, signed by such payee and in form
satisfactory to Administrative Agent; (b) may consult with legal counsel
(including counsel for 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; (c) makes no warranty or representation to any other
Lender Party and shall not be responsible to any other Lender Party for any
statements, warranties or representations made in or in connection with the Loan
Documents; (d) 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 the
Loan Documents on the part of any Restricted Person or to inspect the property
(including the books and records) of any Restricted Person; (e) shall not be
responsible to any other Lender Party for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of any Loan Document or any
instrument or document furnished in connection therewith; (f) may rely upon the
representations and warranties of each Restricted Person or Lender Party in
exercising its powers hereunder; and (g) shall incur no liability under or in
respect of the Loan Documents by acting upon any notice, consent, certificate or
other instrument or writing (including any facsimile, telegram, cable or telex)
believed by it to be genuine and signed or sent by the proper Person or Persons.

         Section 9.3 Credit Decisions. Each Lender Party acknowledges that it
has, independently and without reliance upon any other Lender Party, made its
own analysis of Borrower and the transactions contemplated hereby and its own
independent decision to enter into this Agreement and the other Loan Documents.
Each Lender Party also acknowledges that it will, independently and without
reliance upon any other Lender Party 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.

         Section 9.4 Indemnification. EACH LENDER AGREES TO INDEMNIFY
ADMINISTRATIVE AGENT (TO THE EXTENT NOT REIMBURSED BY BORROWER WITHIN TEN (10)
DAYS AFTER DEMAND) FROM AND AGAINST SUCH LENDER'S PERCENTAGE SHARE OF ANY AND

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ALL LIABILITIES, OBLIGATIONS, CLAIMS, LOSSES, DAMAGES, PENALTIES, FINES,
ACTIONS, JUDGMENTS, SUITS, SETTLEMENTS, COSTS, EXPENSES OR DISBURSEMENTS
(INCLUDING REASONABLE FEES OF ATTORNEYS, ACCOUNTANTS, EXPERTS AND ADVISORS) OF
ANY KIND OR NATURE WHATSOEVER (IN THIS SECTION COLLECTIVELY CALLED "LIABILITIES
AND COSTS") WHICH TO ANY EXTENT (IN WHOLE OR IN PART) MAY BE IMPOSED ON,
INCURRED BY, OR ASSERTED AGAINST ADMINISTRATIVE AGENT GROWING OUT OF, RESULTING
FROM OR IN ANY OTHER WAY ASSOCIATED WITH ANY OF THE COLLATERAL, THE LOAN
DOCUMENTS AND THE TRANSACTIONS AND EVENTS (INCLUDING THE ENFORCEMENT THEREOF) AT
ANY TIME ASSOCIATED THEREWITH OR CONTEMPLATED THEREIN (WHETHER ARISING IN
CONTRACT OR IN TORT OR OTHERWISE AND INCLUDING ANY VIOLATION OR NONCOMPLIANCE
WITH ANY ENVIRONMENTAL LAWS BY ANY PERSON OR ANY LIABILITIES OR DUTIES OF ANY
PERSON WITH RESPECT TO HAZARDOUS MATERIALS FOUND IN OR RELEASED INTO THE
ENVIRONMENT).

THE FOREGOING INDEMNIFICATION SHALL APPLY WHETHER OR NOT SUCH LIABILITIES AND
COSTS ARE IN ANY WAY OR TO ANY EXTENT OWED, IN WHOLE OR IN PART, UNDER ANY CLAIM
OR THEORY OF STRICT LIABILITY OR CAUSED, IN WHOLE OR IN PART, BY ANY NEGLIGENT
ACT OR OMISSION OF ANY KIND BY ADMINISTRATIVE AGENT,

provided only that no Lender shall be obligated under this section to indemnify
Administrative Agent for that portion, if any, of any liabilities and costs
which is proximately caused by Administrative Agent's own individual gross
negligence or willful misconduct, as determined in a final judgment. Cumulative
of the foregoing, each Lender agrees to reimburse Administrative Agent promptly
upon demand for such Lender's Percentage Share of any costs and expenses to be
paid to Administrative Agent by Borrower under Section 10.4(a) to the extent
that Administrative Agent is not timely reimbursed for such expenses by Borrower
as provided in such section. As used in this section the term "Administrative
Agent" shall refer not only to the Person designated as such in Section 1.1 but
also to each director, officer, agent, attorney, employee, representative and
Affiliate of such Person.

         Section 9.5 Rights as Lender. In its capacity as a Lender,
Administrative Agent shall have the same rights and obligations as any Lender
and may exercise such rights as though it were not Administrative Agent.
Administrative Agent may accept deposits from, lend money to, act as trustee
under indentures of, and generally engage in any kind of business with any
Restricted Person or their Affiliates, all as if it were not Administrative
Agent hereunder and without any duty to account therefor to any other Lender.

         Section 9.6 Sharing of Set-Offs and Other Payments. Each Lender Party
agrees that if it shall, whether through the exercise of rights under Security
Documents or rights of banker's lien, set off, or counterclaim against Borrower
or otherwise, obtain payment of a portion of the aggregate Obligations owed to
it which, taking into account all distributions made by Administrative Agent
under Section 3.1, causes such Lender Party to have received more than it would
have received had such payment been received by Administrative Agent and
distributed pursuant to Section 3.1, then (a) it shall be deemed to have
simultaneously purchased and shall be obligated to purchase interests in the
Obligations as necessary to cause all Lender Parties to

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share all payments as provided for in Section 3.1, and (b) such other
adjustments shall be made from time to time as shall be equitable to ensure that
Administrative Agent and all Lender Parties share all payments of Obligations as
provided in Section 3.1; provided, however, that nothing herein contained shall
in any way affect the right of any Lender Party to obtain payment (whether by
exercise of rights of banker's lien, set-off or counterclaim or otherwise) of
indebtedness other than the Obligations. Borrower expressly consents to the
foregoing arrangements and agrees that any holder of any such interest or other
participation in the Obligations, whether or not acquired pursuant to the
foregoing arrangements, may to the fullest extent permitted by Law and, subject
to the provisions of Section 6.16, exercise any and all rights of banker's lien,
set-off, or counterclaim as fully as if such holder were a holder of the
Obligations in the amount of such interest or other participation. If all or any
part of any funds transferred pursuant to this section is thereafter recovered
from the seller under this section which received the same, the purchase
provided for in this section shall be deemed to have been rescinded to the
extent of such recovery, together with interest, if any, if interest is required
pursuant to the order of a Tribunal to be paid on account of the possession of
such funds prior to such recovery.

         Section 9.7 Investments. Whenever Administrative Agent in good faith
determines that it is uncertain about how to distribute to Lender Parties any
funds which it has received, or whenever Administrative Agent in good faith
determines that there is any dispute among Lender Parties about how such funds
should be distributed, Administrative Agent may choose to defer distribution of
the funds which are the subject of such uncertainty or dispute. If
Administrative Agent in good faith believes that the uncertainty or dispute will
not be promptly resolved, or if Administrative Agent is otherwise required to
invest funds pending distribution to Lender Parties, Administrative Agent shall
invest such funds pending distribution; all interest on any such Investment
shall be distributed upon the distribution of such Investment and in the same
proportion and to the same Persons as such Investment. All moneys received by
Administrative Agent for distribution to Lender Parties (other than to the
Person who is Administrative Agent in its separate capacity as a Lender Party)
shall be held by Administrative Agent pending such distribution solely as
Administrative Agent for such Lender Parties, and Administrative Agent shall
have no equitable title to any portion thereof.

         Section 9.8 Benefit of Article IX. The provisions of this Article are
intended solely for the benefit of Lender Parties, and no Restricted Person
shall be entitled to rely on any such provision or assert any such provision in
a claim or defense against any Lender (other than in relation to the reference
to Section 6.16 contained in Section 9.6 or the right to reasonably approve a
successor Administrative Agent under Section 9.9). Lender Parties may waive or
amend such provisions as they desire without any notice to or consent of
Borrower or any other Restricted Person.

         Section 9.9 Resignation. Administrative Agent may resign at any time by
giving written notice thereof to Lenders and Borrower. Each such notice shall
set forth the date of such resignation. Upon any such resignation Majority
Lenders shall have the right to appoint a successor Administrative Agent,
subject to the approval of Borrower, unless a Default has occurred and is
continuing, which approval will not be unreasonably withheld. A successor must
be appointed for any retiring Administrative Agent, and such Administrative
Agent's resignation

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shall become effective when such successor accepts such appointment. If, within
thirty days after the date of the retiring Administrative Agent's resignation,
no successor Administrative Agent has been appointed and has accepted such
appointment, then the retiring Administrative Agent may appoint a successor
Administrative Agent, which shall be a commercial bank organized or licensed to
conduct a banking or trust business under the Laws of the United States of
America or of any state thereof. Upon the acceptance of any appointment as
Administrative Agent hereunder by a successor Administrative Agent, the retiring
Administrative Agent shall be discharged from its duties and obligations under
this Agreement and the other Loan Documents. After any retiring Administrative
Agent's resignation hereunder the provisions of this Article IX shall continue
to inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent under the Loan Documents.

         Section 9.10 Other Agents. The Persons identified herein as the Joint
Lead Arrangers and Book Runners, the Syndication Agent, the Co-Documentation
Agents, the Senior Managing Agent, and the Co-Agents (collectively the
"Co-Agents"), in such capacities, shall not have any duties or responsibilities
or incur any liabilities in such agency capacities (as opposed to its capacity
as a Lender) under or in connection with this Agreement or under any of the
other Loan Documents. The relationship between Borrower, on the one hand, and
the Co-Agents and Administrative Agent, on the other hand, shall be solely that
of borrower and lender. None of the Co-Agents shall have any fiduciary
responsibilities to Borrower or any of its Affiliates. None of the Co-Agents
undertakes any responsibility to Borrower or any of its respective Affiliates to
review or inform Borrower of any matter in connection with any phase of
Borrower's or such Affiliate's business or operations.

                           ARTICLE X - Miscellaneous

         Section 10.1 Waivers and Amendments; Acknowledgments.

         (a)      Waivers and Amendments. No failure or delay (whether by course
of conduct or otherwise) by any Lender in exercising any right, power or remedy
which such Lender Party may have under any of the Loan Documents shall operate
as a waiver thereof or of any other right, power or remedy, nor shall any single
or partial exercise by any Lender Party of any such right, power or remedy
preclude any other or further exercise thereof or of any other right, power or
remedy. No waiver of any provision of any Loan Document and no consent to any
departure therefrom shall ever be effective unless it is in writing and signed
as provided below in this section, and then such waiver or consent shall be
effective only in the specific instances and for the purposes for which given
and to the extent specified in such writing. No notice to or demand on any
Restricted Person shall in any case of itself entitle any Restricted Person to
any other or further notice or demand in similar or other circumstances. This
Agreement and the other Loan Documents set forth the entire understanding
between the parties hereto with respect to the transactions contemplated herein
and therein and supersede all prior discussions and understandings with respect
to the subject matter hereof and thereof, and no waiver, consent, release,
modification or amendment of or supplement to this Agreement or the other Loan
Documents shall be valid or effective against any party hereto unless the same
is in writing and signed by (i) if such party is Borrower or a Restricted
Person, by Borrower or such Restricted Person, (ii) if such party is
Administrative Agent or LC Issuer, by such party, and (iii) if such

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party is a Lender, by such Lender or by Administrative Agent on behalf of
Lenders with the written consent of Majority Lenders, (which consent has already
been given as to the termination of the Loan Documents as provided in Section
10.9). Notwithstanding the foregoing or anything to the contrary herein,
Administrative Agent shall not, without the prior consent of each individual
Lender, execute and deliver on behalf of such Lender any waiver or amendment
which would: (1) waive any of the conditions specified in Article IV (provided
that Administrative Agent may in its discretion withdraw any request it has made
under Section 4.3(f)), (2) increase the Percentage Share of any such Lender or
the maximum amount any such Lender is committed to fund in respect of Letter of
Credit Obligations and Loans or subject such Lender to any additional
obligations (other than pursuant to Section 10.5(c)), (3) reduce any fees
payable to such Lender hereunder, or the principal of, or interest on, such
Lender's Note, or change any date fixed for any payment of any such fees or
interest, (4) reduce any principal amount payable under Section 2.6, change the
date for any such payment, or extend the Maturity Date, (5) amend this Section
10.1(a) or the definitions herein of "Majority Lenders" or "Percentage Share" or
otherwise change the aggregate amount of Percentage Shares which is required for
Administrative Agent, Lenders or any of them to take any particular action under
the Loan Documents, (6) release Borrower from its obligation to pay such
Lender's Note or any Guarantor from its guaranty of such payment, (7) release
any Collateral, except such releases relating to sales of property permitted
under Section 7.5, (8) create additional restrictions on participations,
assignments or transfers by a Lender, or (9) amend the definition of "Interest
Period" to permit Interest Periods of greater than six months unless such period
is subject to availability to each Lender.

         (b)      Acknowledgments and Admissions. Borrower hereby represents,
warrants, acknowledges and admits that (i) it has been advised by counsel in the
negotiation, execution and delivery of the Loan Documents to which it is a
party, (ii) it has made an independent decision to enter into this Agreement and
the other Loan Documents to which it is a party, without reliance on any
representation, warranty, covenant or undertaking by Administrative Agent or any
other Lender Party, whether written, oral or implicit, other than as expressly
set out in this Agreement or in another Loan Document delivered on or after the
date hereof, (iii) there are no representations, warranties, covenants,
undertakings or agreements by any Lender Party as to the Loan Documents except
as expressly set out in this Agreement or in another Loan Document delivered on
or after the date hereof, (iv) no Lender Party has any fiduciary obligation
toward Borrower with respect to any Loan Document or the transactions
contemplated thereby, (v) the relationship pursuant to the Loan Documents
between Borrower and the other Restricted Persons, on one hand, and each Lender
Party, on the other hand, is and shall be solely that of debtor and creditor,
respectively, (vi) no partnership or joint venture exists with respect to the
Loan Documents between any Restricted Person and any Lender Party, (vii)
Administrative Agent is not Borrower's Administrative Agent, but Administrative
Agent for Lenders, (viii) should an Event of Default or Default occur or exist,
each Lender Party will determine in its sole discretion and for its own reasons
what remedies and actions it will or will not exercise or take at that time,
(ix) without limiting any of the foregoing, Borrower is not relying upon any
representation or covenant by any Lender Party, or any representative thereof,
and no such representation or covenant has been made, that any Lender Party
will, at the time of an Event of Default or Default, or at any other time,
waive, negotiate, discuss, or take or refrain from taking any action permitted
under the Loan Documents with respect to any such Event of Default or

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Default or any other provision of the Loan Documents, and (x) all Lender Parties
have relied upon the truthfulness of the acknowledgments in this section in
deciding to execute and deliver this Agreement and to become obligated
hereunder.

         (c)      Representation by Lenders. Each Lender hereby represents that
it will acquire its Note for its own account in the ordinary course of its
commercial lending business; however, the disposition of such Lender's property
shall at all times be and remain within its control and, in particular and
without limitation, such Lender may sell or otherwise transfer its Note, any
participation interest or other interest in its Note, or any of its other rights
and obligations under the Loan Documents subject to compliance with Sections
10.5(b) through (f), inclusive, and applicable Law.

         (d)      Joint Acknowledgment. THIS WRITTEN AGREEMENT AND THE OTHER
LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.

         THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

         Section 10.2 Survival of Agreements; Cumulative Nature. All of
Restricted Persons' various representations, warranties, covenants and
agreements in the Loan Documents shall survive the execution and delivery of
this Agreement and the other Loan Documents and the performance hereof and
thereof, including the making or granting of the Loans and the delivery of the
Notes and the other Loan Documents, and shall further survive until all of the
Obligations are paid in full to each Lender Party and all of Lender Parties'
obligations to Borrower are terminated. All statements and agreements contained
in any certificate or other instrument delivered by any Restricted Person to any
Lender Party under any Loan Document shall be deemed representations and
warranties by Borrower or agreements and covenants of Borrower under this
Agreement. The representations, warranties, indemnities, and covenants made by
Restricted Persons in the Loan Documents, and the rights, powers, and privileges
granted to Lender Parties in the Loan Documents, are cumulative, and, except for
expressly specified waivers and consents, no Loan Document shall be construed in
the context of another to diminish, nullify, or otherwise reduce the benefit to
any Lender Party of any such representation, warranty, indemnity, covenant,
right, power or privilege. In particular and without limitation, no exception
set out in this Agreement to any representation, warranty, indemnity, or
covenant herein contained shall apply to any similar representation, warranty,
indemnity, or covenant contained in any other Loan Document, and each such
similar representation, warranty, indemnity, or covenant shall be subject only
to those exceptions which are expressly made applicable to it by the terms of
the various Loan Documents.

         Section 10.3 Notices. All notices, requests, consents, demands and
other communications required or permitted under any Loan Document shall be in
writing, unless otherwise specifically provided in such Loan Document (provided
that Administrative Agent may give telephonic notices to the other Lender
Parties), and shall be deemed sufficiently given or furnished if delivered by
personal delivery, by facsimile or other electronic transmission, by

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delivery service with proof of delivery, or by registered or certified United
States mail, postage prepaid, to Borrower and Restricted Persons at the address
of Borrower specified on the signature pages hereto and to each Lender Party at
its address specified on the signature pages hereto (unless changed by similar
notice in writing given by the particular Person whose address is to be
changed). Any such notice or communication shall be deemed to have been given
(a) in the case of personal delivery or delivery service, as of the date of
first attempted delivery during normal business hours at the address provided
herein, (b) in the case of facsimile or other electronic transmission, upon
receipt, or (c) in the case of registered or certified United States mail, three
days after deposit in the mail; provided, however, that no Borrowing Notice or
Continuation/Conversion Notice shall become effective until actually received by
Administrative Agent.

         Section 10.4 Payment of Expenses; Indemnity.

         (a)      Payment of Expenses. Whether or not the transactions
contemplated by this Agreement are consummated, Borrower will promptly (and in
any event, within 30 days after any invoice or other statement or notice) pay:
(i) all transfer, stamp, mortgage, documentary or other similar taxes,
assessments or charges levied by any governmental or revenue authority in
respect of this Agreement or any of the other Loan Documents or any other
document referred to herein or therein, (ii) all reasonable costs and expenses
incurred by or on behalf of Administrative Agent (including attorneys' fees,
consultants' fees and engineering fees, travel costs and miscellaneous expenses)
in connection with (1) the negotiation, preparation, execution and delivery of
the Loan Documents, and any and all consents, waivers or other documents or
instruments relating thereto, (2) the filing, recording, refiling and
re-recording of any Loan Documents and any other documents or instruments or
further assurances required to be filed or recorded or refiled or re-recorded by
the terms of any Loan Document, (3) the borrowings hereunder and other action
reasonably required in the course of administration hereof, (4) monitoring or
confirming (or preparation or negotiation of any document related to) any
Restricted Person's compliance with any covenants or conditions contained in
this Agreement or in any Loan Document, and (iii) all reasonable costs and
expenses incurred by or on behalf of any Lender Party (including attorneys'
fees, consultants' fees and accounting fees) in connection with the defense or
enforcement of any of the Loan Documents (including this section), any attempt
to cure any breach thereunder by any Restricted Person or the defense of any
Lender Party's exercise of its rights thereunder. In addition to the foregoing,
until all Obligations have been paid in full, Borrower will also pay or
reimburse Administrative Agent for all reasonable out-of-pocket costs and
expenses of Administrative Agent or its agents or employees in connection with
the continuing administration of the Loans and the related due diligence of
Administrative Agent, including travel and miscellaneous expenses and fees and
expenses of Administrative Agent's outside counsel, reserve engineers and
consultants engaged in connection with the Loan Documents.

         (b)      Indemnity. Borrower agrees to indemnify each Lender Party,
upon demand, from and against any and all liabilities, obligations, claims,
losses, damages, penalties, fines, actions, judgments, suits, settlements,
costs, expenses or disbursements (including reasonable fees of attorneys,
accountants, experts and advisors) of any kind or nature whatsoever (in this
section collectively called "liabilities and costs") which to any extent (in
whole or in part) may be

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

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<PAGE>

imposed on, incurred by, or asserted against such Lender Party growing out of,
resulting from or in any other way associated with any of the Collateral, the
Loan Documents and the transactions and events (including the enforcement or
defense thereof) at any time associated therewith or contemplated therein
whether arising in contract or in tort or otherwise and including any violation
or noncompliance with any Environmental Laws by any Lender Party or any other
Person or any liabilities or duties of any Lender Party or any other Person with
respect to Hazardous Materials found in or released into the environment).

THE FOREGOING INDEMNIFICATION SHALL APPLY WHETHER OR NOT SUCH LIABILITIES AND
COSTS ARE IN ANY WAY OR TO ANY EXTENT OWED, IN WHOLE OR IN PART, UNDER ANY CLAIM
OR THEORY OF STRICT LIABILITY OR CAUSED, IN WHOLE OR IN PART, BY ANY NEGLIGENT
ACT OR OMISSION OF ANY KIND BY ANY LENDER PARTY,

provided only that no Lender Party shall be entitled under this section to
receive indemnification for that portion, if any, of any liabilities and costs
which is proximately caused by its own individual gross negligence or willful
misconduct, as determined in a final judgment. If any Person (including Borrower
or any of its Affiliates) ever alleges such gross negligence or willful
misconduct by any Lender Party, the indemnification provided for in this section
shall nonetheless be paid upon demand, subject to later adjustment or
reimbursement, until such time as a court of competent jurisdiction enters a
final judgment as to the extent and effect of the alleged gross negligence or
willful misconduct. As used in this section the term "Lender Party" shall refer
not only to each Person designated as such in Section 1.1 but also to each
director, officer, agent, trustee, attorney, employee, representative and
Affiliate of such Persons.

         Section 10.5 Joint and Several Liability; Parties in Interest;
Assignments; Replacement Notes.

         (a)      All Obligations which are incurred by two or more Restricted
Persons shall be their joint and several obligations and liabilities. All
grants, covenants and agreements contained in the Loan Documents shall bind and
inure to the benefit of the parties thereto and their respective successors and
permitted assigns; provided, however, that no Restricted Person may assign or
transfer any of its rights or delegate any of its duties or obligations under
any Loan Document without the prior consent of all Lenders. Neither Borrower nor
any Affiliates of Borrower shall directly or indirectly purchase or otherwise
retire any Obligations owed to any Lender nor will any Lender accept any offer
to do so, unless each Lender shall have received substantially the same offer
with respect to the same Percentage Share of the Obligations owed to it. If
Borrower or any Affiliate of Borrower at any time purchases some but less than
all of the Obligations owed to all Lender Parties, such purchaser shall not be
entitled to any rights of any Lender under the Loan Documents unless and until
Borrower or its Affiliates have purchased all of the Obligations.

         (b)      No Lender shall sell any participation interest in its
commitment hereunder or any of its rights under its Loans or under the Loan
Documents to any Person unless the agreement between such Lender and such
participant at all times provides: (i) that such participation exists

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

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<PAGE>

only as a result of the agreement between such participant and such Lender and
that such transfer does not give such participant any right to vote as a Lender
or any other direct claims or rights against any Person other than such Lender,
(ii) that such participant is not entitled to payment from any Restricted Person
under Sections 3.2 through 3.6 of amounts in excess of those payable to such
Lender under such sections (determined without regard to the sale of such
participation), and (iii) unless such participant is an Affiliate of such
Lender, that such participant shall not be entitled to require such Lender to
take any action under any Loan Document or to obtain the consent of such
participant prior to taking any action under any Loan Document, except for
actions which would require the consent of all Lenders under subsection (a) of
Section 10.1. No Lender selling such a participation shall, as between the other
parties hereto and such Lender, be relieved of any of its obligations hereunder
as a result of the sale of such participation. Each Lender which sells any such
participation to any Person (other than an Affiliate of such Lender) shall give
prompt notice thereof to Administrative Agent and Borrower; provided, however,
that no liability shall arise if any Lender fails to give such notice to
Borrower.

         (c)      Except for sales of participations under the immediately
preceding subsection, no Lender shall make any assignment or transfer of any
kind of its commitments or any of its rights under its Loans or under the Loan
Documents, except for assignments to an Eligible Transferee, or, subject to the
provisions of subsection (g) below, to an Affiliate and then only if such
assignment is made in accordance with the following requirements:

                  (i) Each such assignment shall apply to all Obligations owing
         to the assignor Lender hereunder and to the unused portion of the
         assignor Lender's commitments, so that after such assignment is made
         the assignor Lender shall have a fixed (and not a varying) Percentage
         Share in its Loans and Notes and be committed to make that Percentage
         Share of all future Loans, the assignee shall have a fixed Percentage
         Share in such Loans and Notes and be committed to make that Percentage
         Share of all future Loans, and the Percentage Share of the Maximum
         Facility Amount of each of the assignor (if not an assignment of all of
         its Obligations and commitments) and of the assignee shall equal or
         exceed $1,000,000 (provided, that all amounts assigned shall be
         aggregated in calculating the $1,000,000 minimum in the event of
         simultaneous assignments to or from two or more Affiliates).

                  (ii) The parties to each such assignment shall execute and
         deliver to Administrative Agent, for its acceptance and recording in
         the "Register" (as defined below in this section), an Assignment and
         Acceptance in the form of Exhibit D, appropriately completed, together
         with the Note subject to such assignment and a processing fee payable
         by such assignor Lender (and not at Borrower's expense) to
         Administrative Agent of $3,500. Upon such execution, delivery, and
         payment and upon the satisfaction of the conditions set out in such
         Assignment and Acceptance, then (i) Borrower shall issue new Notes to
         such assignor and assignee upon return of the old Notes to Borrower,
         and (ii) as of the "Settlement Date" specified in such Assignment and
         Acceptance the assignee thereunder shall be a party hereto and a Lender
         hereunder and Administrative Agent shall thereupon deliver to Borrower
         and each Lender a revised Schedule 1

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

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<PAGE>

hereto showing the revised Percentage Shares of such assignor Lender and such
assignee Lender and the Percentage Shares of all other Lenders.

                  (iii) Each assignee Lender that is not a United States person
         (as such term is defined in Section 7701(a)(30) of the Code) for
         Federal income tax purposes, shall (to the extent it has not already
         done so) provide Administrative Agent and Borrower with the "Prescribed
         Forms" referred to in Section 3.7(d).

         (d)      Any Lender may at any time pledge all or any portion of its
Loan and Note (and related rights under the Loan Documents including any portion
of its Note) to any of the twelve (12) Federal Reserve Banks organized under
Section 4 of the Federal Reserve Act, 12 U.S.C. Section 341. No such pledge or
enforcement thereof shall release any such Lender from its obligations under any
of the Loan Documents; provided that all related costs, fees and expenses in
connection with any such pledge shall be for the sole account of such Lender.

         (e)      By executing and delivering an Assignment and Acceptance, each
assignee Lender thereunder will be confirming to and agreeing with Borrower,
Administrative Agent and each other Lender Party that such assignee understands
and agrees to the terms hereof, including Article IX hereof.

         (f)      Administrative Agent shall maintain a copy of each Assignment
and Acceptance and a register for the recordation of the names and addresses of
Lenders and the Percentage Shares of, and principal amount of the Loans owing
to, each Lender from time to time (in this section called the "Register"). The
entries in the Register shall be conclusive, in the absence of manifest error,
and Borrower and each Lender Party may treat each Person whose name is recorded
in the Register as a Lender Party hereunder for all purposes. The Register shall
be available for inspection by Borrower or any Lender Party at any reasonable
time and from time to time upon reasonable prior notice.

         (g)      Any Lender may assign or transfer its commitment or its rights
under its Loans or under the Loan Documents to (i) any Affiliate that is
wholly-owned direct or indirect subsidiary of such Lender or of any Person that
wholly owns, directly or indirectly, such Lender, or (ii) if such Lender is a
fund that invests in bank loans, any other fund that invests in bank loans and
is advised or managed by (A) the same investment advisor as any Lender or (B)
any Affiliate of such investment advisor that is a wholly-owned direct or
indirect subsidiary of any Person that wholly owns, directly or indirectly, such
investment advisor, subject to the following additional conditions:

         (x) any right of such Lender assignor (if assignor remains a Lender)
         and such assignee to vote as a Lender, or any other direct claims or
         rights against any other Persons, shall be uniformly exercised or
         pursued in the manner that such Lender assignor would have so exercised
         such vote, claim or right if it had not made such assignment or
         transfer;

         (y) such assignee shall not be entitled to payment from any Restricted
         Person under Sections 3.2 through 3.7 of amounts in excess of those
         payable to such Lender assignor under such sections (determined without
         regard to such assignment or transfer); and

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                 80
<PAGE>

         (z) if such Lender assignor assigns or transfers to such assignee any
         of such Lender's commitment, such assignee may become primarily liable
         for such commitment, but such assignment or transfer shall not relieve
         or release such Lender from such commitment.

         (h)      Upon receipt of an affidavit reasonably satisfactory to
Borrower of an officer of any Lender as to the loss, theft, destruction or
mutilation of its Note or any Security Document which is not of public record,
and, in the case of any such loss, theft, destruction or mutilation, upon
cancellation of such Note or such Security Document, Borrower will execute and
deliver, in lieu thereof, a replacement Note in the same principal amount
thereof and otherwise of like tenor (or each Restricted Person a party to any
such Security Document will execute and deliver a replacement Security Document
of like tenor).

         Section 10.6 Confidentiality. Each Lender Party agrees (on behalf of
itself and each of its Affiliates, and each of its and their directors,
officers, agents, attorneys, employees, and representatives) that it (and each
of them) will take all reasonable steps to keep confidential any non-public
information supplied to it by or at the direction of any Restricted Person so
identified when delivered, provided, however, that this restriction shall not
apply to (a) information which has at the time in question entered the public
domain, (b) information which is required to be disclosed by Law (whether valid
or invalid) of any Tribunal, (c) any disclosure to any Lender Party's
Affiliates, auditors, attorneys, or agents, (d) any disclosure to any other
Lender Party or to any purchaser or prospective purchaser of participations or
other interests in any Loan or Loan Document (provided each such Person first
agrees to hold such information in confidence on the terms provided in this
section), or (e) any disclosure in the course of enforcing its rights and
remedies during the existence of an Event of Default.

         Section 10.7 Governing Law; Submission to Process. EXCEPT TO THE EXTENT
THAT THE LAW OF ANOTHER JURISDICTION IS EXPRESSLY ELECTED IN A LOAN DOCUMENT,
THE LOAN DOCUMENTS SHALL BE DEEMED CONTRACTS AND INSTRUMENTS MADE UNDER THE LAWS
OF THE STATE OF NEW YORK AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK AND THE LAWS OF THE UNITED
STATES OF AMERICA. BORROWER HEREBY AGREES THAT ANY LEGAL ACTION OR PROCEEDING
AGAINST BORROWER WITH RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OF THE LOAN
DOCUMENTS MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED
STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK AS LENDER PARTIES MAY
ELECT, AND, BY EXECUTION AND DELIVERY HEREOF, BORROWER ACCEPTS AND CONSENTS FOR
ITSELF AND IN RESPECT TO ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. BORROWER AGREES THAT
SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW
YORK SHALL APPLY TO THE LOAN DOCUMENTS AND WAIVES ANY RIGHT TO STAY OR

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

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<PAGE>

TO DISMISS ANY ACTION OR PROCEEDING BROUGHT BEFORE SAID COURTS ON THE BASIS OF
FORUM NON CONVENIENS. IN FURTHERANCE OF THE FOREGOING, BORROWER HEREBY
IRREVOCABLY DESIGNATES AND APPOINTS CORPORATION SERVICE COMPANY, 80 STATE
STREET, ALBANY, NEW YORK 12207, AS AGENT OF BORROWER TO RECEIVE SERVICE OF ALL
PROCESS BROUGHT AGAINST BORROWER WITH RESPECT TO ANY SUCH PROCEEDING IN ANY SUCH
COURT IN NEW YORK, SUCH SERVICE BEING HEREBY ACKNOWLEDGED BY BORROWER TO BE
EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT. COPIES OF ANY SUCH PROCESS SO
SERVED SHALL ALSO, IF PERMITTED BY LAW, BE SENT BY REGISTERED MAIL TO BORROWER
AT ITS ADDRESS SET FORTH BELOW, BUT THE FAILURE OF BORROWER TO RECEIVE SUCH
COPIES SHALL NOT AFFECT IN ANY WAY THE SERVICE OF SUCH PROCESS AS AFORESAID.
BORROWER SHALL FURNISH TO LENDER PARTIES A CONSENT OF CORPORATION SERVICE
COMPANY AGREEING TO ACT HEREUNDER PRIOR TO THE EFFECTIVE DATE OF THIS AGREEMENT.
NOTHING HEREIN SHALL AFFECT THE RIGHT OF LENDER PARTIES TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF LENDER PARTIES TO
BRING PROCEEDINGS AGAINST BORROWER IN THE COURTS OF ANY OTHER JURISDICTION. IF
FOR ANY REASON CORPORATION SERVICE COMPANY SHALL RESIGN OR OTHERWISE CEASE TO
ACT AS BORROWER'S AGENT, BORROWER HEREBY IRREVOCABLY AGREES TO (A) IMMEDIATELY
DESIGNATE AND APPOINT A NEW AGENT ACCEPTABLE TO ADMINISTRATIVE AGENT TO SERVE IN
SUCH CAPACITY AND, IN SUCH EVENT, SUCH NEW AGENT SHALL BE DEEMED TO BE
SUBSTITUTED FOR CORPORATION SERVICE COMPANY FOR ALL PURPOSES HEREOF AND (B)
PROMPTLY DELIVER TO AGENT THE WRITTEN CONSENT (IN FORM AND SUBSTANCE
SATISFACTORY TO ADMINISTRATIVE AGENT) OF SUCH NEW AGENT AGREEING TO SERVE IN
SUCH CAPACITY.

         Section 10.8 Limitation on Interest. Lender Parties, Restricted Persons
and any other parties to the Loan Documents intend to contract in strict
compliance with applicable usury Law from time to time in effect. In furtherance
thereof such Persons stipulate and agree that none of the terms and provisions
contained in the Loan Documents shall ever be construed to create a contract to
pay, for the use, forbearance or detention of money, interest in excess of the
maximum amount of interest permitted to be contracted for, charged, or received
by applicable Law from time to time in effect. Neither any Restricted Person nor
any present or future guarantors, endorsers, or other Persons hereafter becoming
liable for payment of any Obligation shall ever be liable for unearned interest
thereon or shall ever be required to pay interest thereon in excess of the
maximum amount that may be lawfully contracted for, charged, or received under
applicable Law from time to time in effect, and the provisions of this Section
10.8 shall

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

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<PAGE>

control over all other provisions of the Loan Documents which may be in conflict
or apparent conflict herewith. Lender Parties expressly disavow any intention to
contract for, charge, or receive excessive unearned interest or finance charges
in the event the maturity of any Obligation is accelerated. If (a) the maturity
of any Obligation is accelerated for any reason, (b) any Obligation is prepaid
and as a result any amounts held to constitute interest are determined to be in
excess of the legal maximum, or (c) any Lender or any other holder of any or all
of the Obligations shall otherwise collect moneys which are determined to
constitute interest which would otherwise increase the interest on any or all of
the Obligations to an amount in excess of that permitted to be contracted for,
charged or received by applicable Law then in effect, then all sums determined
to constitute interest in excess of such legal limit shall, without penalty, and
to the extent permitted by applicable Law be promptly applied to reduce the then
outstanding principal of the related Obligations or, at such Lender's or
holder's option, promptly returned to Borrower or other payor thereof upon such
determination. In determining whether or not the interest paid or payable, under
any specific circumstance, exceeds the maximum amount permitted under applicable
Law, Lender Parties and Restricted Persons (and any other payors thereof) shall
to the greatest extent permitted under applicable Law, (i) characterize any
non-principal payment as an expense, fee or premium rather than as interest,
(ii) exclude voluntary prepayments and the effects thereof, and (iii) amortize,
prorate, allocate, and spread the total amount of interest throughout the entire
contemplated term of the instruments evidencing the Obligations in accordance
with the amounts outstanding from time to time thereunder and the maximum legal
rate of interest from time to time in effect under applicable Law in order to
lawfully charge the maximum amount of interest permitted under applicable Law.

         Section 10.9 Termination; Limited Survival. In its sole and absolute
discretion Borrower may at any time that no Obligations are owing or outstanding
elect in a written notice delivered to Administrative Agent to terminate this
Agreement. Upon receipt by Administrative Agent of such a notice, if no
Obligations are then owing or outstanding this Agreement and all other Loan
Documents shall thereupon be terminated and the parties thereto released from
all prospective obligations thereunder. Notwithstanding the foregoing or
anything herein to the contrary, any waivers or admissions made by any
Restricted Person in any Loan Document, any Obligations under Sections 3.2
through 3.6, and any obligations which any Person may have to indemnify or
compensate any Lender Party shall survive any termination of this Agreement or
any other Loan Document. At the request and expense of Borrower, Administrative
Agent shall prepare and execute all necessary instruments to reflect and effect
such termination of the Loan Documents. Administrative Agent is hereby
authorized to execute all such instruments on behalf of all Lenders, without the
joinder of or further action by any Lender.

         Section 10.10 Severability. If any term or provision of any Loan
Document shall be determined to be illegal or unenforceable all other terms and
provisions of the Loan Documents shall nevertheless remain effective and shall
be enforced to the fullest extent permitted by applicable Law.

         Section 10.11 Counterparts; Fax. This Agreement may be separately
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to
constitute one and the same Agreement. This Agreement

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       83
<PAGE>

and the Loan Documents may be validly executed and delivered by facsimile or
other electronic transmission.

         Section 10.12 Waiver of Jury Trial, Punitive Damages, etc. RESTRICTED
PERSONS AND LENDER PARTIES MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY, AND
INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED
HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH OR ANY COURSE
OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR
ACTIONS OF ANY PARTY. THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR LENDERS
TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND MAKE THE LOANS.
BORROWER AND EACH LENDER PARTY HEREBY FURTHER (A) IRREVOCABLY WAIVES, TO THE
MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER
IN ANY SUCH LITIGATION ANY "SPECIAL DAMAGES," AS DEFINED BELOW, (B) CERTIFIES
THAT NO PARTY HERETO NOR ANY REPRESENTATIVE OR AGENT OR COUNSEL FOR ANY PARTY
HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS, AND (C)
ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT, THE OTHER
LOAN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS SECTION.
AS USED IN THIS SECTION, "SPECIAL DAMAGES" INCLUDES ALL SPECIAL, CONSEQUENTIAL,
EXEMPLARY, OR PUNITIVE DAMAGES (REGARDLESS OF HOW NAMED), BUT DOES NOT INCLUDE
ANY PAYMENTS OR FUNDS WHICH ANY PARTY HERETO HAS EXPRESSLY PROMISED TO PAY OR
DELIVER TO ANY OTHER PARTY HERETO.

         Section 10.13 Restatement. This Agreement amends and restates the
Existing Credit Agreement in its entirety. Borrower hereby agrees that (i) the
Indebtedness outstanding under the Existing Credit Agreement and all accrued and
unpaid interest thereon and (ii) all accrued and unpaid fees under the Existing
Credit Agreement shall be deemed to be outstanding under and governed by this
Agreement. Borrower hereby acknowledges, warrants, represents and agrees that
this Agreement is not intended to be, and shall not be deemed or construed to
be, a novation or release of the Existing Credit Agreement.

         Section 10.14 Special Provisions.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       84
<PAGE>

         (a)      From and after the Closing Date, (i) each Exiting Lender shall
cease to be a party to this Agreement, (ii) no Exiting Lender shall have any
obligations or liabilities under this Agreement with respect to the period from
and after the Closing Date and, without limiting the foregoing, no Exiting
Lender shall have any Revolver Commitment or Term Commitment under this
Agreement or any participation on any Letter of Credit outstanding hereunder,
and (iii) no Exiting Lender shall have any rights under the Existing Credit
Agreement, this Agreement or any other Loan Document (other than rights under
the Existing Credit Agreement expressly stated to survive the termination of the
Existing Credit Agreement and the repayment of amounts outstanding thereunder).

         (b)      Lenders (that are Lenders under the Existing Credit Agreement)
hereby waive any requirements for notice of prepayment, minimum amounts of
prepayments of the loans thereunder, ratable reductions of the commitments of
Lenders under the Existing Credit Agreement and ratable payments on account of
the principal or interest of any loan under the Existing Credit Agreement to the
extent that any such prepayment, reductions or payments are required to ensure
that, upon the effectiveness of this Agreement, the Revolver Loans of Lenders
shall be outstanding on a ratable basis in accordance with their respective
Percentage Shares.

         (c)      Lenders hereby authorize the Administrative Agent and the
Borrower to request Borrowings from Lenders, to make prepayments of Revolver
Loans (as defined in the Existing Credit Agreement) and to reduce commitments
under the Existing Credit Agreement among Lenders (as defined in the Existing
Credit Agreement) in order to ensure that, upon the effectiveness of this
Agreement and satisfaction of all conditions precedent under Article IV, the
Revolver Loans of Lenders shall be outstanding on a ratable basis in accordance
with their respective Percentage Shares and no such Borrowing, prepayment or
reduction shall violate any provisions of the Existing Credit Agreement or this
Agreement. Lenders hereby confirm that, from and after the Closing Date, all
participations of Lenders in respect of Letters of Credit outstanding hereunder
pursuant to subsection 2.9(c) shall be based upon the Percentage Shares of the
Lenders (after giving effect to this Agreement).

         (d)      Effective as of the Closing Date, Borrower hereby terminates
in full the commitments of the Exiting Lenders under the Existing Credit
Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       85
<PAGE>

         IN WITNESS WHEREOF, this Agreement is executed as of the date first
written above.

BORROWER:                             LA GRANGE ACQUISITION,L.P.

                                      By:   LA GP, LLC, its general partner

                                            By:   ______________________________
                                                  Ray C. Davis
                                                  Co-Chief Executive Officer

                                      Address for Borrower:
                                      2838 Woodside Street
                                      Dallas, Texas 75204
                                      Attention: Lon Kile
                                      Telephone: 214-981-0700
                                      Fax:       214-981-0701

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

                                            FLEET NATIONAL BANK,
                                            Administrative Agent, LC Issuer and
                                            a Lender
                                            By:   ______________________________
                                                  Allison Rossi
                                                  Director

                                            Address:

                                            100 Federal Street
                                            Boston, Massachusetts 02110
                                            Attention: Allison Rossi
                                            Mail Code: MADE 10008A
                                            Telephone: (617) 434-9061
                                            Fax:       (617)434-3652

                                            FLEET SECURITIES, INC.,
                                            Joint Lead Arranger and Book Runner

                                            By:   ______________________________
                                                  Jeffrey Bloomquist
                                                  Vice President

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

                                            WACHOVIA BANK, NATIONAL
                                            ASSOCIATION,
                                            as Syndication Agent and a Lender

                                            By:   ______________________________
                                                  David E. Humphreys
                                                  Vice President

                                            Address:

                                            1001 Fannin Street, Suite 2255
                                            Houston, TX 77002
                                            Attention: David Humphreys
                                            Telephone: (713) 346-2717
                                            Fax:       (713) 650-6354

                                            WACHOVIA CAPITAL MARKETS, LLC,
                                            Joint Lead Arranger and Book Runner

                                            By:   ______________________________
                                                  David E. Humphreys
                                                  Vice President

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

                                            THE ROYAL BANK OF SCOTLAND PLC,
                                            as Co-Documentation Agent and
                                            aLender

                                            By:   ______________________________
                                                  Name:  Adam Pettifer
                                                  Title: Senior Vice President

                                            Address:

                                            101 Park Avenue
                                            New York, New York 10178
                                            Attention: Chris Clarke
                                            Telephone: (212) 401-1406
                                            Fax:       (212) 401-1494:

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

                                            BNP PARIBAS,
                                            as Co-Documentation Agent and a
                                            Lender

                                            By:   ______________________________
                                                  Name:
                                                  Title:

                                            By:   ______________________________
                                                  Name:
                                                  Title:

                                            Address:

                                            919 Third Avenue
                                            New York, New York
                                            Attention: Coryn Lantin
                                            Telephone: (212) 471-6631
                                            Fax:       (212) 841-2683

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

                                            BANK OF SCOTLAND,
                                            as Senior Managing Agent and a
                                            Lender

                                            By:   ______________________________
                                                  Joseph Fratus
                                                  First Vice President

                                            Address:

                                            565 Fifth Avenue
                                            New York, New York 10017
                                            Attention: Shirley Vargas
                                            Telephone: (212) 450-0875
                                            Fax:       (212) 450-2807

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

                                            FORTIS CAPITAL CORP.,
                                            as Co-Agent and a Lender

                                            By:   ______________________________
                                                  Name:
                                                  Title:

                                            By:   ______________________________
                                                  Name:
                                                  Title:

                                            Address:

                                            15455 North Dallas Parkway, Suite
                                            1400
                                            Addison, Texas 75001
                                            Attention: Casey Lowary

                                            Telephone: (214) 953-9308
                                            Fax:       (214) 754-5982

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

                                            U.S. BANK NATIONAL ASSOCIATION,
                                            as Co-Agent and a Lender

                                            By:   ______________________________
                                                  Name:
                                                  Title:

                                            Address:

                                            918 17TH Street DNCOBB3E
                                            Denver, Colorado 80202
                                            Attention: Mark Thompson
                                            Telephone: (303) 585-4213
                                            Fax:       (303) 585-4362

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

                                            BMO NESBITT BURNS FINANCING, INC.,
                                            Lender

                                            By:   ______________________________
                                                  Cahal Carmody
                                                  Vice President

                                            Address:

                                            700 Louisiana Street, Suite 4400
                                            Houston, Texas 77002
                                            Attention: Cahal Carmody

                                            Telephone: (713) 546-9750
                                            Fax: (713)23-4007

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

                                            AUSTRALIA AND NEW ZEALAND BANKING
                                            GROUP LIMITED,
                                            as a Lender

                                            By:   ______________________________
                                                  Name: R. Scott McInnis
                                                  Title: Country Head - USA

                                            Address:  177 Avenue of the Americas
                                                      New York, NY 10036
                                            Attention: Joel Kaplan
                                            Telephone: (212) 801 9894
                                            Fax:       (212) 536 9294

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

                                            BANK ONE, NA,
                                            as a Lender

                                            By:   ______________________________
                                                  Name:
                                                  Title:

                                            Address:

                                            1 Bank One Plaza, Suite IL 1-0010
                                            Chicago, Illinois 60670
                                            Attention: Jim Moore
                                            Telephone: (312) 385-7057
                                            Fax:       (312) 385-7096

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

                                 COMERICA BANK,

                                   as a Lender

                                   By:

                                      ---------------------------------
                                      Michele L. Jones
                                      Vice President - Texas Division

                                    Address:

                                   1601 Elm Street, 2nd Floor
                                   Dallas, Texas 75201
                                   Attention: Michele L. Jones
                                   Telephone: (214) 969-6563
                                   Fax: (214) 969-6561

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

<PAGE>

                                   KEY BANK NATIONAL ASSOCIATION,
                                   as a Lender

                                   By:

                                      ---------------------------------
                                     Name: Kevin D. Smith
                                     Title: Vice President

                                    Address:

                                   127 Public Square
                                   Cleveland, Ohio 44114
                                   Attention: Melissa Pelham
                                   Telephone: (216) 689-0206
                                   Fax: (216) 689-5962

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

<PAGE>

                                   WEST LB AG, New York Branch

                                   as a Lender

                                   By:

                                      ---------------------------------
                                      Name:

                                     Title:

                                   By:

                                      ---------------------------------
                                      Name:

                                     Title:

                                   Address: 1211 Ave of Americas
                                            New York, New York 10036

                                   Attention: Jeffrey S. Davidson
                                   Telephone: 212-852-6204
                                   Fax: 212-597-1106

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

<PAGE>

                                  COMPASS BANK,

                                   as a Lender

                                   By:

                                      ---------------------------------
                                      Dorothy Marchand
                                      Senior Vice President

                                    Address:

                                   24 Greenway Plaza, Suite 1400A
                                   Houston, Texas 77046
                                   Attention: Dorothy Marchand
                                   Telephone: (713) 968-8272
                                   Fax: (713) 968-8292

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

<PAGE>

                                   UFJ BANK LIMITED,
                                   as a Lender

                                   By:

                                      ---------------------------------
                                      Name: L. J. Perenyi
                                      Title: Vice President

                                   Address: Structured Finance Department
                                            55 East 52nd Street, 26th Floor
                                            New York, NY 10055

                                   Attention: Seiji Tate
                                   Telephone: 212-339-6235
                                   Fax: 212-754-2368

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

<PAGE>

                                   HSH NORDBANK, AG, NEW YORK BRANCH,
                                   as a Lender

                                   By:

                                      ---------------------------------
                                      Name:
                                      Title:

                                    Address:

                                   590 Madison Avenue
                                   New York, New York, 10022
                                   Attention: Rohan Singh
                                   Telephone: (212) 407-6042
                                   Fax: (212) 407-6033

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

<PAGE>

                                   NATEXIS BANQUES POPULAIRES,
                                   as a Lender

                                   By:

                                      ---------------------------------
                                      Daniel Payer
                                      Vice President

                                   By:

                                      ---------------------------------
                                      Louis P. Laville, III
                                      Vice President

                                    Address:

                                   Houston Representative Office
                                   333 Clay Street, Suite 4340
                                   Houston, Texas 77002
                                   Attention: Daniel Payer
                                   Telephone: (713) 759-9495
                                   Fax: (713) 571-6167

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

<PAGE>

                                   BANK OF AMERICA, N.A.
                                   as a Lender

                                   By:

                                      ---------------------------------
                                      Steven A. Mackenzie
                                      Vice President - Credit Products

                                    Address:

                                   910 Main Street, 67th Floor
                                   Dallas, Texas 75202
                                   Attention: Steven A. Mackenzie
                                   Telephone: (214) 209-3680
                                   Fax: (214) 209-3140

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

<PAGE>

                                  GUARANTY BANK

                                   as a Lender

                                   By:

                                      ---------------------------------
                                       Jim R. Hamilton
                                       Senior Vice President

                                    Address:

                                   1100 NE Loop 410
                                   San Antonio, Texas78209
                                   Attention: Jim R. Hamilton

                                   Telephone: (210) 930-2926
                                   Fax: (210) 930-1783

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

<PAGE>

                                   STERLING BANK,

                                   as a Lender

                                   By:

                                      ---------------------------------
                                      Name: C. Scott Wilson
                                      Title: Vice President

                                   Address: 2550 North Loop West, Suite 100
                                            Houston, Texas 77092
                                   Attention: Cheri Allen - Administrator
                                   Telephone: (713) 507-7918
                                   Fax: (713) 507-7948

                                   SECOND AMENDED AND RESTATED CREDIT AGREEMENT

<PAGE>

                                   ALLIED IRISH BANKS P.L.C,
                                   as a Lender

                                   By:

                                      ---------------------------------
                                      Name:
                                      Title:

                                    Address:

                                   405 Park Avenue, 2nd Floor
                                   New York, New York 10022
                                   Attention: Vaughn Buck / Aidan Lanigan
                                   Telephone: (212) 515-6768 / (212) 515-6837
                                   Fax: (212) 339-8325

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: FLEET NATIONAL BANK

Lender's Revolver Commitment:                       $ 26,075,000

Lender's Term Commitment:                           $ 92,675,000

Revolver Percentage:                                        14.9%

Domestic Lending Office:

100 Federal Street
Boston, Massachusetts 02110
Attention: Allison Rossi
Mail Code: MADE 10008A
Telephone: (617) 434-9061
Fax: (617) 434-3652

Eurodollar Lending Office:

Same.

Notices:

Same.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       A-1

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: WACHOVIA BANK, NATIONAL ASSOCIATION

Lender's Revolver Commitment:                       $ 26,075,000

Lender's Term Commitment:                           $ 10,675,000

Revolver Percentage:                                        14.9%

Domestic Lending Office:

1001 Fannin Street, Suite 2255
Houston, TX 77002
Attention: David Humphreys
Telephone: (713) 346-2717

Fax: (713) 650-6354

Eurodollar Lending Office:

Same.

Notices:

Same.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       A-2

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: THE ROYAL BANK OF SCOTLAND PLC

Lender's Revolver Commitment:                       $ 10,500,000

Lender's Term Commitment:                           $ 19,500,000

Revolver Percentage:                                         6.0%

Domestic Lending Office:

101 Park Avenue
New York, New York 10178
Attention: Sheila Shaw
Telephone: (212) 401-1406
Fax: (212) 401-1494

Eurodollar Lending Office:

Same.

Notices:

600 Travis Street, Suite 6070
Houston, Texas 77002
Attention: Chris Clarke
Telephone: (713) 221-2400

Fax: (713) 221-2430

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       A-3

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: BNP PARIBAS

Lender's Revolver Commitment:                       $ 10,500,000

Lender's Term Commitment:                           $ 19,500,000

Revolver Percentage:                                         6.0%

Domestic Lending Office:

919 Third Avenue
New York, New York 10022
Attention: Coryn Lantin
Telephone: (212) 471-6631
Fax: (212) 841-2683

Eurodollar Lending Office:

Same.

Notices:

1200 Smith Street, Suite 3100
Houston, Texas 77002
Attention: Brian Malone
Telephone: (713) 982-1100

Fax: (713) 659-6915

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       A-4

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: BANK OF SCOTLAND

Lender's Revolver Commitment:                       $ 11,200,000

Lender's Term Commitment:                           $ 20,800,000

Revolver Percentage:                                         6.4%

Domestic Lending Office:

565 Fifth Avenue
New York, New York 10017
Attention: Shirley Vargas
Telephone: (212) 450-0800
Fax: (212) 450-2806

Eurodollar Lending Office:

Same.

Notices:

One City Centre
1021 Main Street, Suite 1370
Houston, Texas 77002

Attention: Justin Alexander / Rex McSwain
Telephone: (713) 650-0212 / (713) 650-0636
Fax: (713) 651-9714

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       A-5

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: FORTIS CAPITAL CORP.

Lender's Revolver Commitment:                       $ 10,150,000

Lender's Term Commitment:                           $ 18,850,000

Revolver Percentage:                                         5.8%

Domestic Lending Office:

15455 North Dallas Parkway, Suite 1400
Addison, Texas 75001
Attention: Casey Lowary

Telephone: (214) 953-9303
Fax: (214) 754-5982

Eurodollar Lending Office:

Same.

Notices:

Same.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       A-6

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: U.S. BANK NATIONAL ASSOCIATION

Lender's Revolver Commitment:                       $ 10,150,000

Lender's Term Commitment:                           $ 18,850,000

Revolver Percentage:                                         5.8%

Domestic Lending Office:

918 17TH Street DNCOBB3E
Denver, Colorado 80202
Attention: Mark Thompson
Telephone: (303) 585-4213
Fax: (303) 585-4362

Eurodollar Lending Office:

Same.

Notices:

Same.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       A-7

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: BMO NESBITT BURNS FINANCING, INC.

Lender's Revolver Commitment:                       $ 7,000,000

Lender's Term Commitment:                           $ 13,000,000

Revolver Percentage:                                         4.0%

Domestic Lending Office:

700 Louisiana Street, Suite 4400
Houston, Texas 77002
Attention: Cahal Carmody
Telephone: (713) 546-9750

Fax: (713) 23-4007

Eurodollar Lending Office:

Same.

Notices:

Same.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       A-8

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

Lender's Revolver Commitment:                       $ 8,050,000

Lender's Term Commitment:                           $ 14,950,000

Revolver Percentage:                                        4.6%

Domestic Lending Office:

1177 Avenue of the Americas, 6th Floor
New York, New York 10036
Attention: Joel Kaplan

Telephone: (212) 801-9894
Fax: (212) 536-9294

Eurodollar Lending Office:

Same.

Notices:

Same.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                       A-9

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: BANK ONE, NA

Lender's Revolver Commitment:                       $ 7,000,000

Lender's Term Commitment:                           $ 13,000,000

Revolver Percentage:                                         4.0%

Domestic Lending Office:

1 Bank One Plaza, Suite IL 1-0010
Chicago, Illinois 60670
Attention: Jim Moore
Telephone: (312) 385-7057

Fax: (312) 385-7096

Eurodollar Lending Office:

Same.

Notices:

910 Travis Street, TX2-4375
Houston, Texas 77002

Attention: Jeanie Gonzalez / Pete Torres
Telephone: (713) 751-6174 / (713) 751-6214
Fax: (713) 751-3982

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                      A-10

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: COMERICA BANK

Lender's Revolver Commitment:                       $ 7,000,000

Lender's Term Commitment:                           $ 13,000,000

Revolver Percentage:                                         4.0%

Domestic Lending Office:

1601 Elm Street, 2nd Floor
Dallas, Texas 75201
Attention: Michele L. Jones
Telephone: (214) 969-6563
Fax: (214) 969-6561

Eurodollar Lending Office:

Same.

Notices:

Same.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                      A-11

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: KEY BANK NATIONAL ASSOCIATION

Lender's Revolver Commitment:                       $ 4,900,000

Lender's Term Commitment:                           $ 9,100,000

Revolver Percentage:                                        2.8%

Domestic Lending Office:

127 Public Square
Cleveland, Ohio 44114
Attention: Melissa Pelham
Telephone: (216) 689-0206
Fax: (216) 689-5962

Eurodollar Lending Office:

Same.

Notices:

601 108th Avenue, NE 5th Floor
Bellevue, Washington 98009
Telephone: (425) 709-4579

Fax: (425) 709-4587

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                      A-12

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: WEST LB AG, NEW YORK BRANCH

Lender's Revolver Commitment:                       $ 4,900,000

Lender's Term Commitment:                           $ 9,100,000

Revolver Percentage:                                        2.8%

Domestic Lending Office:

1211 Avenue of the Americas
New York, New York 10036
Attention: Jeffrey S. Davidson
Telephone: (212) 852-6204
Fax: (212) 597-1106

Eurodollar Lending Office:

Same.

Notices:

1211 Avenue of the Americas
New York, New York 10036
Attention: Cheryl Wilson
Telephone: (212) 852-6152
Fax: (212) 302-7946

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                      A-13

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: COMPASS BANK

Lender's Revolver Commitment:                       $ 6,300,000

Lender's Term Commitment:                           $ 11,700,000

Revolver Percentage:                                         3.6%

Domestic Lending Office:

24 Greenway Plaza, Suite 1400A
Houston, Texas 77046
Attention: Dorothy Marchand
Telephone: (713) 968-8272

Fax: (713) 968-8292

Eurodollar Lending Office:

Same.

Notices:

Same.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                      A-14

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: UFJ BANK LIMITED

Lender's Revolver Commitment:                       $ 4,550,000

Lender's Term Commitment:                           $ 8,450,000

Revolver Percentage:                                        2.6%

Domestic Lending Office:

55 East 52nd Street
New York, New York 10055
Attention: Seiji Tate
Telephone: (212) 339-6235
Fax: (212) 754-2368

Eurodollar Lending Office:

Same

Notices:

1200 Smith Street, Suite 2265
Houston, Texas 77002
Attention: Lad Perenyi
Telephone: (713) 654-9970

Fax: (713) 654-1462

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                      A-15

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: HSH NORDBANK, AG, NEW YORK BRANCH

Lender's Revolver Commitment:                       $ 4,550,000

Lender's Term Commitment:                           $ 8,450,000

Revolver Percentage:                                        2.6%

Domestic Lending Office:

590 Madison Avenue
New York, New York, 10022
Attention: Rohan Singh
Telephone: (212) 407-6042
Fax: (212) 407-6033

Eurodollar Lending Office:

Same.

Notices:

Same.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                      A-16

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: NATEXIS BANQUES POPULAIRES

Lender's Revolver Commitment:                       $ 3,500,000

Lender's Term Commitment:                           $ 6,500,000

Revolver Percentage:                                        2.0%

Domestic Lending Office:

Houston Representative Office
333 Clay Street, Suite 4340
Houston, Texas 77002
Attention: Daniel Payer
Telephone: (713) 759-9495
Fax: (713) 571-6167

Eurodollar Lending Office:

Same.

Notices:

Same, with a copy to:

1251 Avenue of the Americas, 34th Floor
New York, New York 10020
Attention: Stacey Caruth

Fax: (212) 872-5160

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                      A-17

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: BANK OF AMERICA, N.A.

Lender's Revolver Commitment:                       $ 2,450,000

Lender's Term Commitment:                           $ 4,550,000

Revolver Percentage:                                        1.4%

Domestic Lending Office:

910 Main Street, 67th Floor
Dallas, Texas 75202
Attention:  Steven A. Mackenzie
Telephone: (214) 209-3680
Fax: (214) 209-3140

Eurodollar Lending Office:

Same.

Notices:

Same.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                      A-18

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: GUARANTY BANK

Lender's Revolver Commitment:                       $ 3,500,000

Lender's Term Commitment:                           $ 6,500,000

Revolver Percentage:                                        2.0%

Domestic Lending Office:

1100 NE Loop 410
San Antonio, Texas78209
Attention: Jim R. Hamilton
Telephone: (210) 930-2926
Fax: (210) 930-1783

Eurodollar Lending Office:

Same.

Notices:

8333 Douglas Avenue
Dallas, Texas 75225
Attention: Kim Thompson

Telephone: (214) 360-2609
Fax: (214) 360-5109

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                      A-19

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender: STERLING BANK

Lender's Revolver Commitment:                       $ 3,150,000

Lender's Term Commitment:                           $ 5,850,000

Revolver Percentage:                                        1.8%

Domestic Lending Office:

2550 North Loop West, Suite 100
Houston, Texas 77092
Attention: C. Scott Wilson
Telephone: (713) 577-7918
Fax: (713) 577-7948

Eurodollar Lending Office:

Same.

Notices:

Same.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                      A-20

<PAGE>

                                                                      SCHEDULE 1

                                 LENDER SCHEDULE

Lender:    ALLIED IRISH BANKS P.L.C.

Lender's Revolver Commitment:                       $ 3,500,000

Lender's Term Commitment:                           $         0

Revolver Percentage:                                        2.0%

Domestic Lending Office:

Bankcentre,
Ballsbridge
Dublin 4
Ireland
Attention:
Telephone: 011 353 1 6411324
Fax: 011 353 1 6089795

Eurodollar Lending Office:

Same.

Notices:

405 Park Avenue, 2nd Floor
New York, New York 10022

Attention: Vaughn Buck / Aidan Lanigan
Telephone: (212) 515-6768 / (212) 515-6837
Fax: (212) 339-8325

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                      A-21

<PAGE>

                                                                      SCHEDULE 2

                               DISCLOSURE SCHEDULE

Section 5.4.  No Conflict or Consents:

         None.

Section 5.6.  Initial Financial Statements:

         None.

Section 5.7.  Other Obligations and Restrictions:

         None.

Section 5.9.  Litigation:

         None

Section 5.10. Labor Disputes and Acts of God:

         None.

Section 5.11. ERISA Plans and Liabilities:

         None.

Section 5.12. Compliance with Laws:

         None.

Section 5.13  Environmental Laws:

         None.

Section 5.14. Names and Places of Business:

      a. Fictitious name(s):

      The Restricted Person(s) have the following fictitious names:

         ETC Oklahoma Pipeline, Ltd. - ETC Oklahoma Pipeline, L.P.

         ETC Marketing, Ltd. - ETC Marketing, L.P.

         LaGrange Acquisition, L.P. - Energy Transfer Company

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        1

<PAGE>

      b. Principal Place of Business:

      The Restricted Person(s) have the following additional principal places of
      business:

         None.

      c. Other offices:

      The Restricted Person(s) have the following additional offices:

         LaGrange Acquisition, L.P.
         800 E. Sonterra Blvd.
         Suite 400
         San Antonio, TX  78258

         ETC Oklahoma Pipeline, Ltd.
         Business Office
         7134 S. Yale
         Tulsa, OK  74136

         ETC Oklahoma Pipeline, Ltd.
         Elk City Plant
         Rt 4 Box 28-4 Hwy 6
         Elk City, OK 73644

         ETC Texas Pipeline, Ltd.
         Giddings Office
         3945 E Austin St
         Hwy 290 E
         Giddings, TX 78942

         ETC Texas Pipeline, Ltd.
         Grimes County Plant
         County Road 180
         Anderson, TX 77830

         ETC Texas Pipeline, Ltd.
         Hallettsville Treating Plant 1.25 mi W of Hwy 77 on FM 318
         Halletsville, TX 77964

         ETC Texas Pipeline, Ltd.
         Holland Creek Plant
         2277 County Road 246
         Navasota, TX 77868-0969

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        2

<PAGE>

         ETC Texas Pipeline, Ltd.
         La Grange Plant
         7307 N US Hwy 77
         LaGrange, TX  78945

         ETC Texas Pipeline, Ltd.
         Latium Treating Plant
         Washington City, TX

         ETC Texas Pipeline, Ltd.
         Navasota Plant Site & Field Office

         11386 County Road 419
         Grimes, Texas 77868-0969

         ETC Texas Pipeline, Ltd.
         Snook Office

         12935 FM 50

         LaGrange, TX 78945

         ETC Texas Pipeline, Ltd.
         Somerville Plant & Office

         1218 FM 1361

         Burleson, TX  77879

         ETC Marketing, Ltd.
         Trucking Operations Office

         1218 FM 1361

         Burleson, TX  77879

         ETC Texas Pipeline, Ltd.
         LaGrange Field Office
         7234 N US Hwy 77
         LaGrange, TX  78945

         ETC Oasis, L.P.
         911 Main Street, Suite 300
         Kansas City, MO 64105

         ETC Oasis, L.P.
         1100 Walnut, Suite 3300
         Kansas City, MO 64106

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        3

<PAGE>

         ETC Oasis, L.P.
         20 West 9th Street
         Kansas City, MO 64105

         Oasis Pipe Line Company Texas, L.P.
         12012 Wickchester Lane, Suite 540
         Houston, TX  77079

         Section 5.15 Borrower's Subsidiaries:

         Borrower owns all of the limited liability company interests in LG PL,
         LLC; LGM, LLC; ETC Oasis GP, LLC; Five-Dawaco, LLC and TETC, LLC

         Borrower directly owns the 99.9% limited partnership interests, and LG
         PL, LLC owns the .1% general partnership interest, in the following
         entities:

         ETC Gas Company, Ltd.
         ETC Texas Pipeline, Ltd.
         ETC Oklahoma Pipeline, Ltd.
         ETC Texas Processing, Ltd.

         Borrower directly owns the 99.9% limited partnership interests in the
         following entities and LGM, LLC; ETC Oasis GP, LLC; and Five-Dawaco,
         LLC, respectively, own the .1% general partnership interest in such
         entities:

         ETC Marketing, Ltd.
         ETC Oasis, L.P.
         ET Company I, Ltd.

         ET Company I, Ltd. directly owns the 99% limited partnership interests,
         and Five-Dawaco LLC owns the 1% general partnership interest, in the
         following entities:

         Whiskey Bay Gathering Company, Ltd.
         Whiskey Bay Gas Company, Ltd.
         Chalkley Transmission Company, Ltd.

         ET Company I, Ltd. directly owns the 99% limited partnership interest,
         and TETC, LLC owns the 1% general partnership interest, in Texas Energy
         Transfer Company, Ltd.

         ETC Oasis, L.P. directly owns all of the outstanding shares of Oasis
         Pipe Line Company.

         Oasis Pipeline Company owns all of the outstanding shares of the
         following entities:

         Oasis Pipe Line Finance Company
         Oasis Partner Company

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        4

<PAGE>

         Oasis Pipe Line Management Company

         Oasis Partner Company owns the 99% limited partnership interest, and
         Oasis Pipe Line Management Company owns the 1% general partnership
         interest, in Oasis Pipe Line Company Texas L.P.

         ETC Gas Company owns a 50% interest in South Texas Gathering and
         Treating Joint Venture.

         ETC Company I, Ltd. owns a direct or indirect 50% interest in VanTex
         Energy Services, Ltd., VanTex Gas Pipeline Company, LLC and VES Inc.

Section 5.20. Credit Agreements

         None.

Section 7.2.  Limitation on Liens

         None.

Section 7.10. Prohibit Contracts

         None.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        5

<PAGE>

                                                                      SCHEDULE 3

                                SECURITY SCHEDULE

1.       Second Amended and Restated Guaranty by ETC Gas Company, Ltd., ETC
         Texas Pipeline, Ltd., ETC Oklahoma Pipeline, Ltd., ETC Marketing, Ltd.,
         ETC Oasis, L.P., Texas Energy Transfer Company, Ltd., Whiskey Bay
         Gathering Company, Ltd., Whiskey Bay Gas Company, Ltd., Chalkley
         Transmission Company, Ltd., ET Company I, Ltd., Oasis Pipe Line
         Company, Oasis Pipe Line Company Texas, L.P., Oasis Pipe Line Finance
         Company, Oasis Partner Company, Oasis Pipe Line Management Company, LA
         GP, LLC, LG PL, LLC, LGM, LLC, ETC Oasis GP, LLC, FIVE-DAWACO, LLC,
         TETC, LLC, and ETC Texas Processing, Ltd. in favor of Administrative
         Agent.

2.       Second Amended and Restated Pledge Agreement by Borrower in favor of
         Administrative Agent (Partnership Pledge).

3.       Second Amended and Restated Pledge Agreement by Borrower in favor of
         Administrative Agent (LLC Pledge).

4.       Second Amended and Restated Security Agreement by Borrower in favor of
         Administrative Agent.

5.       Second Amended and Restated Pledge Agreement by LA GP, LLC, LG PL, LLC,
         LGM, LLC, ETC Oasis GP, LLC, Oasis Pipe Line Management Company,
         FIVE-DAWACO, LLC, TETC, LLC, ET Company I, Ltd., and Oasis Partner
         Company in favor of Administrative Agent.

6.       Second Amended and Restated Security Agreement by ETC Marketing, Ltd.,
         Oasis Pipe Line Company, Texas Energy Transfer Company, Ltd., Whiskey
         Bay Gathering Company, Ltd., Whiskey Bay Gas Company, Ltd., Chalkley
         Transmission Company, Ltd., ET Company I, Ltd., ETC Oasis, L.P., Oasis
         Pipe Line Management Company, Oasis Pipe Line Finance Company, Oasis
         Partner Company and ETC Gas Company, Ltd. in favor of Administrative
         Agent.

7.       Amended and Restated Stock Pledge Agreement by ETC Oasis, L.P. and
         Oasis Pipe Line Company in favor of Administrative Agent.

8.       First Amended and Restated Deed of Trust, Mortgage, Assignment,
         Security Agreement, Fixture Filing and Financing Statement by ETC Texas
         Pipeline, Ltd. and ETC Oklahoma Pipeline, Ltd., ETC Texas Processing,
         Ltd. and Oasis Pipe Line Texas L.P. in favor of Administrative Agent.

9.       UCC-1 Financing Statements relating to the foregoing Security
         Documents.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        1

<PAGE>

                                                                      SCHEDULE 4

                               INSURANCE SCHEDULE

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        1

<PAGE>

                                                                     EXHIBIT A-1

                                 PROMISSORY NOTE

                                 [REVOLVER NOTE]

$_________________                                             __________, 200__

         FOR VALUE RECEIVED, the undersigned, La Grange Acquisition, L.P., a
Texas limited partnership (herein called "Borrower"), hereby promises to pay to
the order of ________________________________________________, a ____________
(herein called "Lender"), the principal sum of _________________________ Dollars
($ ________________), or, if greater or less, the aggregate unpaid principal
amount of the Revolver Loans made under this Note by Lender to Borrower pursuant
to the terms of the Credit Agreement (as hereinafter defined), together with
interest on the unpaid principal balance thereof as hereinafter set forth, both
principal and interest payable as herein provided in lawful money of the United
States of America at the offices of Administrative Agent under the Credit
Agreement, 100 Federal Street, Boston, Massachusetts, or at such other place as
from time to time may be designated by the holder of this Note.

         This Note (a) is issued and delivered under that certain Second Amended
and Restated Credit Agreement dated January 20, 2004, among Borrower, Fleet
National Bank, as Administrative Agent, and the lenders (including Lender)
referred to therein (herein, as from time to time supplemented, amended or
restated, called the "Credit Agreement"), and is a "Revolver Note" as defined
therein, (b) is subject to the terms and provisions of the Credit Agreement,
which contains provisions for payments and prepayments hereunder and
acceleration of the maturity hereof upon the happening of certain stated events,
(c) is secured by and entitled to the benefits of certain Security Documents (as
identified and defined in the Credit Agreement), and (d) is given in renewal and
restatement of certain Indebtedness described in the Credit Agreement. Payments
on this Note shall be made and applied as provided herein and in the Credit
Agreement. Reference is hereby made to the Credit Agreement for a description of
certain rights, limitations of rights, obligations and duties of the parties
hereto and for the meanings assigned to terms used and not defined herein and to
the Security Documents for a description of the nature and extent of the
security thereby provided and the rights of the parties thereto.

         For the purposes of this Note, the following terms have the meanings
assigned to them below:

                  "Base Rate Payment Date" means (i) the last day of each March,
         June, September and December, beginning March 31, 2004, and (ii) any
         day on which past due interest or principal is owed hereunder and is
         unpaid. If the terms hereof or of the Credit Agreement provide that
         payments of interest or principal hereon shall be deferred from one
         Base Rate Payment Date to another day, such other day shall also be a
         Base Rate Payment Date.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        1

<PAGE>

                  "Eurodollar Rate Payment Date" means, with respect to any
         Eurodollar Loan: (i) the day on which the related Interest Period ends
         and, if such Interest Period is six or twelve months in length, each
         date specified by Administrative Agent that is approximately three, six
         or nine months (as applicable) after such Interest Period begins, and
         (ii) any day on which past due interest or past due principal is owed
         hereunder with respect to such Eurodollar Loan and is unpaid. If the
         terms hereof or of the Credit Agreement provide that payments of
         interest or principal with respect to such Eurodollar Loan shall be
         deferred from one Eurodollar Rate Payment Date to another day, such
         other day shall also be a Eurodollar Rate Payment Date.

         The principal amount of this Note, together with all interest accrued
hereon, shall be due and payable in full on the Maturity Date.

         Unless the Default Rate shall apply, (i) each Base Rate Loan shall bear
interest on each day outstanding at the Base Rate plus the applicable Base Rate
Margin in effect on such day and (ii) each Eurodollar Loan shall bear interest
on each day during the related Interest Period at the related Eurodollar Rate
plus the applicable Eurodollar Rate Margin in effect on such day. During a
Default Rate Period, all Loans shall bear interest on each day outstanding at
the Default Rate. The interest rate shall change whenever the applicable Base
Rate, the applicable Base Rate Margin, the applicable Eurodollar Rate or the
applicable Eurodollar Rate Margin changes. In no event shall the interest rate
on any Loan exceed the Highest Lawful Rate.

         Notwithstanding the foregoing paragraph and all other provisions of
this Note, in no event shall the interest payable hereon, whether before or
after maturity, exceed the maximum interest which, under applicable Law, may be
charged on this Note, and this Note is expressly made subject to the provisions
of the Credit Agreement which more fully set out the limitations on how interest
accrues hereon.

         On each Base Rate Payment Date, Borrower shall pay to the holder hereof
all unpaid interest which has accrued on the Base Rate Loans to but not
including such Base Rate Payment Date. On each Eurodollar Rate Payment Date
relating to such Eurodollar Loan, Borrower shall pay to the holder hereof all
unpaid interest which has accrued on such Eurodollar Loan to but not including
such Eurodollar Rate Payment Date. All interest on past due principal of and
past due interest on the Loan shall be due and payable daily as it accrues.

         If this Note is placed in the hands of an attorney for collection after
default, or if all or any part of the indebtedness represented hereby is proved,
established or collected in any court or in any bankruptcy, receivership, debtor
relief, probate or other court proceedings, Borrower and all endorsers, sureties
and guarantors of this Note jointly and severally agree to pay reasonable
attorneys' fees and collection costs to the holder hereof in addition to the
principal and interest payable hereunder.

         Borrower and all endorsers, sureties and guarantors of this Note hereby
severally waive demand, presentment, notice of demand and of dishonor and
nonpayment of this Note, protest, notice of protest, notice of intention to
accelerate the maturity of this Note, declaration or notice of acceleration of
the maturity of this Note, diligence in collecting, the bringing of any suit

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        2

<PAGE>

against any party and any notice of or defense on account of any extensions,
renewals, partial payments or changes in any manner of or in this Note or in any
of its terms, provisions and covenants, or any releases or substitutions of any
security, or any delay, indulgence or other act of any trustee or any holder
hereof, whether before or after maturity.

         THIS NOTE AND THE RIGHTS AND DUTIES OF THE PARTIES HERETO SHALL BE
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK , EXCEPT TO THE EXTENT THE SAME
ARE GOVERNED BY APPLICABLE FEDERAL LAW.

                                   LA GRANGE ACQUISITION, L.P.

                                   By: LA GP, LLC, its general partner

                                       By:

                                            ---------------------------
                                            Name:
                                            Title:

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        3

<PAGE>

                                                                     EXHIBIT A-2

                                 PROMISSORY NOTE

                                   [TERM NOTE]

$_________________                                             __________, 200__

         FOR VALUE RECEIVED, the undersigned, La Grange Acquisition, L.P., a
Texas limited partnership (herein called "Borrower"), hereby promises to pay to
the order of ________________________________________________, a ____________
(herein called "Lender"), the principal sum of _________________________ Dollars
($ ________________), or, if greater or less, the aggregate unpaid principal
amount of the Term Loans made under this Note by Lender to Borrower pursuant to
the terms of the Credit Agreement (as hereinafter defined), together with
interest on the unpaid principal balance thereof as hereinafter set forth, both
principal and interest payable as herein provided in lawful money of the United
States of America at the offices of Administrative Agent under the Credit
Agreement, 100 Federal Street, Boston, Massachusetts, or at such other place as
from time to time may be designated by the holder of this Note.

         This Note (a) is issued and delivered under that certain Second Amended
and Restated Credit Agreement dated January 20, 2004, among Borrower, Fleet
National Bank, as Administrative Agent, and the lenders (including Lender)
referred to therein (herein, as from time to time supplemented, amended or
restated, called the "Credit Agreement"), and is a "Term Note" as defined
therein, (b) is subject to the terms and provisions of the Credit Agreement,
which contains provisions for payments and prepayments hereunder and
acceleration of the maturity hereof upon the happening of certain stated events,
(c) is secured by and entitled to the benefits of certain Security Documents (as
identified and defined in the Credit Agreement), and (d) is given in renewal and
restatement of certain Indebtedness described in the Credit Agreement. Payments
on this Note shall be made and applied as provided herein and in the Credit
Agreement. Reference is hereby made to the Credit Agreement for a description of
certain rights, limitations of rights, obligations and duties of the parties
hereto and for the meanings assigned to terms used and not defined herein and to
the Security Documents for a description of the nature and extent of the
security thereby provided and the rights of the parties thereto.

         For the purposes of this Note, the following terms have the meanings
assigned to them below:

                  "Base Rate Payment Date" means (i) the last day of each March,
         June, September and December, beginning March 31, 2004, and (ii) any
         day on which past due interest or principal is owed hereunder and is
         unpaid. If the terms hereof or of the Credit Agreement provide that
         payments of interest or principal hereon shall be deferred from one
         Base Rate Payment Date to another day, such other day shall also be a
         Base Rate Payment Date.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        1

<PAGE>

                  "Eurodollar Rate Payment Date" means, with respect to any
         Eurodollar Loan: (i) the day on which the related Interest Period ends
         and, if such Interest Period is six or twelve months in length, each
         date specified by Administrative Agent that is approximately three, six
         or nine months (as applicable) after such Interest Period begins, and
         (ii) any day on which past due interest or past due principal is owed
         hereunder with respect to such Eurodollar Loan and is unpaid. If the
         terms hereof or of the Credit Agreement provide that payments of
         interest or principal with respect to such Eurodollar Loan shall be
         deferred from one Eurodollar Rate Payment Date to another day, such
         other day shall also be a Eurodollar Rate Payment Date.

         The principal amount of this Note, together with all interest accrued
hereon, shall be due and payable in full on the Maturity Date.

         Unless the Default Rate shall apply, (i) each Base Rate Loan shall bear
interest on each day outstanding at the Base Rate plus the applicable Base Rate
Margin in effect on such day and (ii) each Eurodollar Loan shall bear interest
on each day during the related Interest Period at the related Eurodollar Rate
plus the applicable Eurodollar Rate Margin in effect on such day. During a
Default Rate Period, all Loans shall bear interest on each day outstanding at
the Default Rate. The interest rate shall change whenever the applicable Base
Rate, the applicable Base Rate Margin, the applicable Eurodollar Rate or the
applicable Eurodollar Rate Margin changes. In no event shall the interest rate
on any Loan exceed the Highest Lawful Rate.

         Notwithstanding the foregoing paragraph and all other provisions of
this Note, in no event shall the interest payable hereon, whether before or
after maturity, exceed the maximum interest which, under applicable Law, may be
charged on this Note, and this Note is expressly made subject to the provisions
of the Credit Agreement which more fully set out the limitations on how interest
accrues hereon.

         On each Base Rate Payment Date, Borrower shall pay to the holder hereof
all unpaid interest which has accrued on the Base Rate Loans to but not
including such Base Rate Payment Date. On each Eurodollar Rate Payment Date
relating to such Eurodollar Loan, Borrower shall pay to the holder hereof all
unpaid interest which has accrued on such Eurodollar Loan to but not including
such Eurodollar Rate Payment Date. All interest on past due principal of and
past due interest on the Loan shall be due and payable daily as it accrues.

         If this Note is placed in the hands of an attorney for collection after
default, or if all or any part of the indebtedness represented hereby is proved,
established or collected in any court or in any bankruptcy, receivership, debtor
relief, probate or other court proceedings, Borrower and all endorsers, sureties
and guarantors of this Note jointly and severally agree to pay reasonable
attorneys' fees and collection costs to the holder hereof in addition to the
principal and interest payable hereunder.

         Borrower and all endorsers, sureties and guarantors of this Note hereby
severally waive demand, presentment, notice of demand and of dishonor and
nonpayment of this Note, protest, notice of protest, notice of intention to
accelerate the maturity of this Note, declaration or notice of acceleration of
the maturity of this Note, diligence in collecting, the bringing of any suit

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        2

<PAGE>

against any party and any notice of or defense on account of any extensions,
renewals, partial payments or changes in any manner of or in this Note or in any
of its terms, provisions and covenants, or any releases or substitutions of any
security, or any delay, indulgence or other act of any trustee or any holder
hereof, whether before or after maturity.

         THIS NOTE AND THE RIGHTS AND DUTIES OF THE PARTIES HERETO SHALL BE
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT THE SAME ARE
GOVERNED BY APPLICABLE FEDERAL LAW.

                                   LA GRANGE ACQUISITION, L.P.

                                   By: LA GP, LLC, its general partner

                                       By:

                                            ---------------------------
                                            Name:
                                            Title:

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        3

<PAGE>

                                                                       EXHIBIT B

                                BORROWING NOTICE

         Reference is made to that certain Second Amended and Restated Credit
Agreement dated as of January 20, 2004 (as from time to time amended, the
"Agreement"), by and among La Grange Acquisition, L.P. ("Borrower"), Fleet
National Bank, as Administrative Agent, and certain financial institutions
("Lenders"). Terms which are defined in the Agreement are used herein with the
meanings given them in the Agreement. Pursuant to the terms of the Agreement,
Borrower hereby requests Lenders to make [Revolver/Term] Loans to Borrower in
the aggregate principal amount of $ __________ and specifies ____________, ____,
as the date Borrower desires for Lenders to make such [Revolver/Term] Loans and
for Administrative Agent to deliver to Borrower the proceeds thereof. [Such
Revolver Loans are hereby designated as CE/PA Revolver Loans.]

         Type of Loans: [Eurodollar Loans][Base Rate Loans]
         Length of Interest Periods for Eurodollar Loan (1, 2, 3, 6 or 12
months)

         To induce Lenders to make such [Revolver/Term] Loans, Borrower hereby
represents, warrants, acknowledges, and agrees to and with Administrative Agent
and each Lender that:

                  (a) The officer of LA GP signing this instrument is the duly
         elected, qualified and acting officer of LA GP as indicated below such
         officer's signature hereto having all necessary authority to act for
         Borrower in making the request herein contained.

                  (b) The representations and warranties made by any Restricted
         Person in the Agreement and the other Loan Documents are true and
         correct on and as of the date hereof (except to the extent that the
         facts on which such representations and warranties are based have been
         changed by the extension of credit under the Agreement or to the extent
         that such representation or warranty was made as of a specific date or
         updated, modified or supplemented, as of a subsequent date with the
         consent of Majority Lenders), with the same effect as though such
         representations and warranties had been made on and as of the date
         hereof.

                  (c) There does not exist on the date hereof any condition or
         event which constitutes a Default which has not been waived in writing
         as provided in Section 10.1(a) of the Agreement; nor will any such
         Default exist upon Borrower's receipt and application of the Loans
         requested hereby. Borrower will use the Loans hereby requested in
         compliance with Section 2.4 of the Agreement.

                  (d) (i) No Material Adverse Change shall have occurred, (ii)
         no event or circumstance shall have occurred that would reasonably be
         expected to cause a Material Adverse Change, (iii) no material adverse
         change shall have occurred in the consolidated financial condition,
         business, operations, assets or prospects of the Master Partnership and
         (iv) no event or circumstance shall have occurred that would reasonably
         be expected to cause a material adverse change in the consolidated
         financial condition, business, operations, assets or prospects of the
         Master Partnership, other than, in each case,

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        1

<PAGE>

         changes resulting solely from general, regional, industry-wide, or
         economy-wide developments.

                  (e) Except to the extent waived in writing as provided in
         Section 10.1(a) of the Agreement, each Restricted Person has performed
         and complied with all agreements and conditions in the Agreement
         required to be performed or complied with by such Restricted Person on
         or prior to the date hereof, and each of the conditions precedent to
         Loans contained in the Agreement remains satisfied.

                  (f) The Revolver Facility Usage, after the making of the Loans
         requested hereby, will not be in excess of the Revolver Commitment on
         the date requested for the making of such Loans.

                  (g) The Loan Documents have not been modified, amended or
         supplemented by any unwritten representations or promises, by any
         course of dealing, or by any other means not provided for in Section
         10.1(a) of the Agreement. The Agreement and the other Loan Documents
         are hereby ratified, approved, and confirmed in all respects.

         The officer of LA GP signing this instrument hereby certifies that, to
the best of his knowledge after due inquiry, the above representations,
warranties, acknowledgments, and agreements of Borrower are true, correct and
complete in all material respects.

         IN WITNESS WHEREOF, this instrument is executed as of ___________,____.

                                   LA GRANGE ACQUISITION, L.P.

                                   By: LA GP, LLC, its general partner

                                       By:

                                          -----------------------------
                                          Name:
                                          Title:

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        2

<PAGE>

                                                                       EXHIBIT C

                         CONTINUATION/CONVERSION NOTICE

         Reference is made to that certain Second Amended and Restated Credit
Agreement dated as of January 20, 2004 (as from time to time amended, the
"Agreement"), by and among La Grange Acquisition, L.P. ("Borrower"), Fleet
National Bank, as Administrative Agent, and certain financial institutions
("Lenders"). Terms which are defined in the Agreement are used herein with the
meanings given them in the Agreement.

         Borrower hereby requests a conversion or continuation of existing
[Term] [Revolver] Loans into a new Borrowing pursuant to Section 2.3 of the
Agreement as follows:

         Existing Borrowing(s) of [Term] [Revolver] Loans to be Continued or
Converted:

                  $______________ of Eurodollar Loans with Interest Period
                  ending ________________

                  $______________ of Base Rate Loans

         Aggregate amount of new [Term] [Revolver] Borrowing:  $________________

         Type of Loans in new Borrowing:                        ________________

         Date of Continuation or Conversion:                    ________________

         Length of Interest Period for Eurodollar

         Loans (1, 2, 3, 6 or 12 months):                       ________ months

         Borrower hereby represents, warrants, acknowledges, and agrees to and
with each Lender that:

                  (a) The officer of LA GP signing this instrument is the duly
         elected, qualified and acting officer of LA GP as indicated below such
         officer's signature hereto having all necessary authority to act for
         Borrower in making the request herein contained.

                  (b) There does not exist on the date hereof any condition or
         event which constitutes a Default which has not been waived in writing
         as provided in Section 10.1(a) of the Agreement; nor will any such
         Default exist upon Borrower's receipt and application of the Loans
         requested hereby.

                  (c) The Loan Documents have not been modified, amended or
         supplemented by any unwritten representations or promises, by any
         course of dealing, or by any other means not provided for in Section
         10.1(a) of the Agreement. The Agreement and the other Loan Documents
         are hereby ratified, approved, and confirmed in all respects.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        1

<PAGE>

         The officer of LA GP signing this instrument hereby certifies that, to
the best of his knowledge after due inquiry, the above representations,
warranties, acknowledgments, and agreements of Borrower are true, correct and
complete in all material respects.

         IN WITNESS WHEREOF, this instrument is executed as of ___________,____.

                                   LA GRANGE ACQUISITION, L.P.

                                   By: LA GP, LLC, its general partner

                                       By:

                                          -----------------------------
                                          Name:
                                          Title:

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        2

<PAGE>

                                                                       EXHIBIT D

                            ASSIGNMENT AND ACCEPTANCE

         Reference is made to the Second Amended and Restated Credit Agreement
dated as of January 20, 2004 (the "Credit Agreement") among La Grange
Acquisition, L.P., a Texas limited partnership (the "Borrower"), the Lenders (as
defined in the Credit Agreement) and Fleet National Bank, as Administrative
Agent for the Lenders (the "Administrative Agent"). Terms defined in the Credit
Agreement are used herein with the same meaning.

         The "Assignor" and the "Assignee" referred to on Schedule 1 agree as
follows:

         1. The Assignor hereby sells and assigns to the Assignee, without
recourse and without representation or warranty except as expressly set forth
herein, and the Assignee hereby purchases and assumes from the Assignor, an
interest in and to the Assignor's rights and obligations under the Credit
Agreement and the other Loan Documents as of the date hereof equal to the
percentage interest specified on Schedule 1 of all outstanding rights and
obligations under the Credit Agreement and the other Loan Documents. After
giving effect to such sale and assignment, the Assignee's Commitment and the
amount of the Loans owing to the Assignee will be as set forth on Schedule 1.

         2. The Assignor (i) represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any adverse claim; (ii) makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Loan Documents
or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of the Loan Documents or any other instrument or document furnished
pursuant thereto; (iii) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any Restricted Person
or the performance or observance by any Restricted Person of any of its
obligations under the Loan Documents or any other instrument or document
furnished pursuant thereto; and (iv) attaches the Note held by the Assignor and
requests that Administrative Agent exchange such Note for new Notes in an amount
equal to the Commitment assumed by the Assignee pursuant hereto and to the
Assignor in an amount equal to the Commitment retained by the Assignor.

         3. The Assignee (i) confirms that it has received a copy of the Credit
Agreement, together with copies of the financial statements referred to in
Section 6.2 thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Acceptance; (ii) agrees that it will, independently and without
reliance upon Administrative Agent, the Assignor or any other Lender and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
the Credit Agreement; (iii) appoints and authorizes Administrative Agent to take
such action as agent on its behalf and to exercise such powers and discretion
under the Credit Agreement as are delegated to Administrative Agent by the terms
thereof, together with such powers and discretion as are reasonably incidental
thereto; (iv) agrees that it will perform in accordance with their terms all of
the obligations that by the

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        1

<PAGE>

terms of the Credit Agreement are required to be performed by it as a Lender;
and (v) attaches any U.S. Internal Revenue Service or other forms required under
Section 3.7(d).

         4. Following the execution of this Assignment and Acceptance, it will
be delivered to Administrative Agent for acceptance and recording by
Administrative Agent. The effective date for this Assignment and Acceptance (the
"Effective Date") shall be the date of acceptance hereof by Administrative
Agent, unless otherwise specified on Schedule 1.

         5. Upon such acceptance and recording by Administrative Agent, as of
the Effective Date, (i) the Assignee shall be a party to the Credit Agreement
and, to the extent provided in this Assignment and Acceptance, have the rights
and obligations of a Lender thereunder and (ii) the Assignor shall, to the
extent provided in this Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Credit Agreement.

         6. Upon such acceptance and recording by Administrative Agent, from and
after the Effective Date, Administrative Agent shall make all payments under the
Credit Agreement and the Notes in respect of the interest assigned hereby
(including, without limitation, all payments of principal, interest and
commitment fees with respect thereto) to the Assignee. The Assignor and Assignee
shall make all appropriate adjustments in payments under the Credit Agreement
and the Notes for periods prior to the Effective Date directly between
themselves.

         7. This Assignment and Acceptance shall be governed by, and construed
in accordance with, the Laws of the State of New York.

         8. This Assignment and Acceptance 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. Delivery of an executed
counterpart of Schedule 1 to this Assignment and Acceptance by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment
and Acceptance.

         IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule
1 to this Assignment and Acceptance to be executed by their officers thereunto
duly authorized as of the date specified thereon.

                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                        2
<PAGE>

                                   SCHEDULE 1
                                       to
                            ASSIGNMENT AND ACCEPTANCE

<TABLE>
<S>                                                                      <C>
Revolver Percentage assigned:                                            __%

Assignee's Commitment:

              Assignee's Term Loan:                                      $____________

              Assignee's Revolver Percentage of Maximum

              Revolver Facility Amount:                                  $____________

Assignee's Outstanding Term Loan:                                        $____________

Principal amount of Term Note payable to Assignee:                       $____________

Principal amount of Revolver Note payable to Assignee:                   $____________

Effective Date (if other than date
of acceptance by Administrative Agent):                                   ________, 200__
</TABLE>

                                             [NAME OF ASSIGNOR], as Assignor

                                             By:  ______________________________
                                                  Name:
                                                  Title:

                                             Dated:_________, ____

                                             [NAME OF ASSIGNEE], as Assignee

                                             By:  ______________________________
                                                  Name:
                                                  Title:

                                             Domestic Lending Office:

                                             Eurodollar Lending Office:

*        This date should be no earlier than five Business Days after the
         delivery of this Assignment and Acceptance to Administrative Agent.

                                 1  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Accepted [and Approved] **
this ___ day of ___________, ____

FLEET NATIONAL BANK

By:  ______________________________
     Name:
     Title:

[Approved this ____ day
of ____________, ____

LA GRANGE ACQUISITION, L.P.

By:      LA GP, LLC, its general partner

         By: _____________________________]**
             Name:
             Title:

**       Required if the Assignee is an Eligible Transferee solely by reason of
         subsection (b) of the definition of "Eligible Transferee."

                                 2  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

                                                                       EXHIBIT E

                   LETTER OF CREDIT APPLICATION AND AGREEMENT

                                 1  SECOND AMENDED AND RESTATED CREDIT AGREEMENT

<PAGE>

                                                                       EXHIBIT F

                            CERTIFICATE ACCOMPANYING
                              FINANCIAL STATEMENTS

         Reference is made to that certain Second Amended and Restated Credit
Agreement dated as of January 20, 2004 (as from time to time amended, the
"Agreement"), by and among La Grange Acquisition, L.P. ("Borrower"), Fleet
National Bank, as Administrative Agent, and certain financial institutions
("Lenders"), which Agreement is in full force and effect on the date hereof.
Terms which are defined in the Agreement are used herein with the meanings given
them in the Agreement.

         This Certificate is furnished pursuant to Section 6.2(b) of the
Agreement. Together herewith Borrower is furnishing to Administrative Agent and
each Lender Borrower's *[audited/unaudited] financial statements (the "Financial
Statements") as at ____________ (the "Reporting Date"). Borrower hereby
represents, warrants, and acknowledges to Administrative Agent and each Lender
that:

                  (a) the officer of LA GP signing this instrument is the duly
         elected, qualified and acting ____________ of LA GP and as such is LA
         GP's [chief financial officer/principal accounting officer];

                  (b) the Financial Statements are accurate and complete in all
         material respects [(subject, in the case of such unaudited financial
         statements to normal year-end adjustments)] and satisfy the
         requirements of the Agreement;

                  (c) attached hereto is a schedule of calculations showing
         Borrower's compliance as of the Reporting Date with the requirements of
         Section 7.14(a), Section 7.14(b), and Section 7.14(c) of the Agreement
         *[and Borrower's non-compliance as of such date with the requirements
         of Section(s) 7.14 ___ of the Agreement];

                  (d) on the Reporting Date Borrower was, and on the date hereof
         is, in full compliance with the disclosure requirements of Sections
         6.4, 5.14 or 5.15 of the Agreement, and no Default otherwise existed on
         the Reporting Date or otherwise exists on the date of this instrument
         *[except for Default(s) under Section(s) ____________ of the Agreement,
         which *[is/are] more fully described on a schedule attached hereto].

         The officer of LA GP signing this instrument hereby certifies that
he/she has reviewed the Loan Documents and the Financial Statements and has
otherwise undertaken such inquiry as is in his/her opinion necessary to enable
him/her to express an informed opinion with respect to the above
representations, warranties and acknowledgments of Borrower and, to the best of
his/her knowledge, such representations, warranties, and acknowledgments are
true, correct and complete in all material respects.

                                 1  SECOND AMENDED AND RESTATED CREDIT AGREEMENT

<PAGE>

     IN WITNESS WHEREOF, this instrument is executed as of ____________,____.

                                          LA GRANGE ACQUISITION, L.P.

                                          By: LA GP, LLC, its general partner

                                              By: ______________________________
                                                  Name:
                                                  Title:

General Partner hereby represents and warrants to Administrative Agent and each
Lender that the Financial Statements are accurate and complete in all material
respects *[(subject, in the case of such unaudited financial statements to
normal year-end adjustments)].

                                           U.S. PROPANE, L.P.

                                           By: U.S. PROPANE LLC

                                               By: _____________________________
                                                   Name:
                                                   Title:

                                 2  SECOND AMENDED AND RESTATED CREDIT AGREEMENT

<PAGE>

                                                                       EXHIBIT G

                    OPINION OF COUNSEL FOR RESTRICTED PERSONS

                     [LETTERHEAD OF VINSON & ELKINS L.L.P.]

                                January 20, 2004

Fleet National Bank, as Administrative Agent
100 Federal Street
Energy & Utilities, MADE 10008A
Boston, Massachusetts   02110

Ladies and Gentlemen:

         We have acted as counsel for Heritage Propane Partners, L.P. ("Heritage
L.P."), a limited partnership organized under the laws of the State of Delaware,
in connection with certain aspects of the transaction contemplated by the
Underwriting Agreement (as defined in Schedule I hereto). At the request of
Heritage L.P., we are furnishing this opinion letter to you pursuant to Section
4.1(g) of the Credit Agreement (as defined in Schedule I hereto). Unless
otherwise defined herein, capitalized terms used herein have the meanings
assigned to such terms in the Credit Agreement. Also, terms defined in Schedule
I hereto have the same meanings when used in the body of this opinion letter.
Other terms that are defined in the Uniform Commercial Code as in effect on the
date hereof in the State of New York (the "New York UCC") have the same meaning
when used herein unless otherwise indicated by the context in which such terms
are so used. Unless otherwise indicated, references to the "UCC" shall mean (i)
with respect to the validity, creation or attachment of a security interest
granted by the Security Documents other than the Mortgage, the New York UCC,
(ii) with respect to a security interest granted by the Mortgage, the Uniform
Commercial Code as in effect on the date hereof in the State of Texas (the
"Texas UCC"), and (iii) with respect to the perfection of a security interest,
the New York UCC, the Texas UCC and the Uniform Commercial Code as in effect on
the date hereof in the State of Delaware (the "Delaware UCC"), as applicable.
For convenience, all references to specific articles, parts, sections or
subsections of the UCC are made by using the corresponding citations to the New
York UCC.

         In rendering the opinions set forth below, we have reviewed execution
copies, or copies of original counterparts of the documents listed in Schedule I
hereto. The documents listed in Section A of Schedule I hereto are referred to
herein as the "Principal Documents". The entities listed below are collectively
referred to as "Principal Parties" and each, individually, as a "Principal
Party".

         (i)      La Grange Acquisition, L.P., a limited partnership organized
                  under the laws of Texas ("Borrower"),

         (ii)     ETC Gas Company, Ltd., a limited partnership organized under
                  the laws of Texas ("ETC Gas"),

                                 1  SECOND AMENDED AND RESTATED CREDIT AGREEMENT

<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 2

         (iii)    ETC Marketing, Ltd., a limited partnership organized under the
                  laws of Texas ("ETC Marketing"),

         (iv)     ETC Oasis, L.P., a limited partnership organized under the
                  laws of Delaware ("ETC Oasis"),

         (v)      ETC Oasis GP, LLC, a limited liability company organized under
                  the laws of Texas ("ETC Oasis GP"),

         (vi)     ETC Oklahoma Pipeline, Ltd., a limited partnership organized
                  under the laws of Texas ("ETC Oklahoma"),

         (vii)    ETC Texas Pipeline, Ltd., a limited partnership organized
                  under the laws of Texas ("ETC Texas"),

         (viii)   ETC Texas Processing, Ltd., a limited partnership organized
                  under the laws of Texas ("ETC Texas Processing"),

         (ix)     Five Dawaco, LLC, a limited liability company organized under
                  the laws of Texas ("DAWACO"),

         (x)      LA GP, LLC, a limited liability company organized under the
                  laws of Texas ("LA GP"),

         (xi)     LG PL, LLC, a limited liability company organized under the
                  laws of Texas ("LG PL"),

         (xii)    LGM, LLC, a limited liability company organized under the laws
                  of Texas ("LGM"),

         (xiii)   ET Company I, Ltd., a limited partnership organized under the
                  laws of Texas ("ET Co. I"),

         (xiv)    Texas Energy Transfer Company, Ltd., a limited partnership
                  organized under the laws of Texas ("TX Energy Transfer"),

         (xv)     Whiskey Bay Gathering Company, Ltd., a limited partnership
                  organized under the laws of Texas ("Whiskey Bay Gathering"),

         (xvi)    Whiskey Bay Gas Company, Ltd., a limited partnership organized
                  under the laws of Texas ("Whiskey Bay Gas"),

         (xvii)   Chalkley Transmission Company, Ltd., a limited partnership
                  organized under the laws of Texas ("Chalkley"),

         (xviii)  TETC, LLC, a limited liability company organized under the
                  laws of Texas ("TETC"),

         (xix)    Oasis Pipe Line Company, a corporation organized under the
                  laws of Delaware ("Oasis Pipe Line"),

         (xx)     Oasis Pipe Line Finance Company, a corporation organized under
                  the laws of Delaware ("Oasis Finance"),

         (xxi)    Oasis Partner Company, a corporation organized under the laws
                  of Delaware ("Oasis Partner"),

         (xxii)   Oasis Pipe Line Management Company, a corporation organized
                  under the laws of Delaware ("Oasis Management"), and

                                 2  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 3

         (xxiii)  Oasis Pipe Line Company Texas L.P., a limited partnership
                  organized under the laws of Texas ("Oasis Pipe Line TX").

         In rendering the opinions set forth below, we have reviewed such other
records, certificates and documents as we have deemed appropriate for the
purposes of such opinions. As to any facts material to our opinions, we have
made no independent investigation of such facts and have relied, to the extent
that we deem such reliance proper, upon statements of public officials and
officers or other representatives of Heritage L.P. and the Principal Parties and
on the representations and warranties set forth in the Principal Documents. We
have also reviewed and relied upon one or more certificates of officers or other
representatives of the Principal Parties certifying that (a) no Principal Party
is a party to or bound by any loan agreement, indenture, mortgage or similar
agreement relating to Indebtedness in excess of $50,000 (other than a Principal
Document), and (b) no Principal Party is subject to any administrative order
binding upon such Principal Party or to any pending legal proceeding, or any
legal proceeding threatened in writing, affecting such Principal Party or any of
its properties before any court, governmental agency or arbitrator seeking to
affect the enforceability or performance by any Principal Party of the Principal
Documents or the transactions contemplated thereby.

         In rendering the opinions expressed below, we have assumed the legal
capacity of all natural persons, the genuineness of all signatures, the
authenticity of all documents submitted to us as originals, and the conformity
to authentic original documents of all documents submitted to us as copies,
which assumptions we have not independently verified. In addition, we have
assumed that (i) each party to the Principal Documents is a corporation,
partnership, limited liability company or other entity duly organized and
validly existing under the laws of the jurisdiction of its organization; (ii)
the execution, delivery and performance by each Principal Party of the Principal
Documents to which it is a party do not conflict with or result in the breach of
any document or instrument binding on it; (iii) the execution, delivery and
performance by each Principal Party of the Principal Documents to which it is a
party do not contravene any provision of any law, rule or regulation applicable
to any of them (except that we have not made such assumption with respect to
Applicable Laws (as defined below) applicable to the Principal Parties, as to
which we express our opinions in paragraph 5); (iv) no authorization, approval,
consent, order, license, franchise, permit or other action by, and no notice to
or filing with, any Tribunal or any other third party is required for the due
execution, delivery and performance by each Principal Party of the Principal
Documents to which it is a party that has not been duly obtained or made and
that is not in full force and effect (except that we have not made such
assumption with respect to Governmental Approvals (as defined below) required to
be obtained or taken by the Principal Parties as to which we express our opinion
in paragraph 6); (v) the Principal Documents constitute valid, binding and
enforceable obligations of each party thereto (other than the Principal
Parties); and (vi) the laws of any jurisdiction other than the laws that are the
subject of this opinion letter do not adversely affect the opinions set forth
below. With respect to our opinions expressed below, we have assumed that the
transactions contemplated in the Principal Documents bears a reasonable
relationship to New York within the meaning of Section 35.51 of the Texas
Business and Commerce Code. With respect to certain of the

                                 3  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 4

foregoing matters as they relate to the Principal Parties, please refer to the
opinion letter, dated as of the date hereof, delivered to you by Hunton &
Williams.

         Based upon the foregoing, and subject to the assumptions,
qualifications, exceptions and limitations set forth herein, it is our opinion
that:

         1.       Each Principal Party (a) has the corporate, partnership or
limited liability company, as applicable, power and authority to execute,
deliver and perform its obligations under each Principal Document to which it is
a party, (b) has taken all corporate, partnership or limited liability company,
as applicable, action necessary to authorize the execution, delivery and
performance of such Principal Document, and (c) has duly executed and delivered
each such Principal Document.

         2.       Based solely on the certificates of public officials listed in
Section D of Schedule I hereto, each Principal Party is in good standing and
duly authorized to do business, or is active, as applicable, in each state for
which such a certificate has been obtained for such Principal Party.

         3.       At the time of the closing of the transaction contemplated by
the Principal Documents, LA GP is the sole general partner of Borrower; Heritage
ETC, L.P. is the sole limited partner of Borrower; Heritage ETC GP, L.L.C. is
the sole general partner of Heritage ETC, L.P.; ETC Oasis GP is the sole general
partner of ETC Oasis; LG PL is the sole general partner of ETC Gas, ETC Texas,
ETC Oklahoma and ETC Texas Processing; LGM is the sole general partner of ETC
Marketing; TETC is the sole general partner of TX Energy Transfer; DAWACO is the
sole general partner of ET Co. I, Whiskey Bay Gathering, Whiskey Bay Gas and
Chalkley; Oasis Management is the sole general partner of Oasis Pipe Line TX;
Borrower is the sole limited partner of ETC Gas, ETC Texas, ETC Oklahoma, ETC
Texas Processing, ETC Marketing, ETC Oasis and ET Co. I; ET Co. I is the sole
limited partner of TX Energy Transfer, Whiskey Bay Gathering, Whiskey Bay Gas
and Chalkley; Heritage ETC, L.P. is the sole member of LA GP; the Borrower is
the sole member of LGM, LG PL, ETC Oasis GP, DAWACO, and TETC.

         4.       Each Principal Document to which each Principal Party is a
party constitutes the valid and binding obligation of such Principal Party
enforceable against such Principal Party in accordance with its terms.

         5.       The execution and delivery by each Principal Party of each
Principal Document to which it is a party do not, and the performance by such
Principal Party of its obligations thereunder will not, (a) violate, as
applicable, the articles or certificate of incorporation, bylaws, limited
partnership agreement, limited liability company agreement, limited liability
company articles of organization or regulations of such Principal Party, or (b)
result in any violation by the Principal Parties of any Applicable Laws (as
defined below).

         "Applicable Laws" means the UCC, the General Corporation Law of the
         State of Delaware, the Delaware Revised Uniform Limited Partnership
         Act, the Texas

                                 4  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 5

         Revised Limited Partnership Act, those laws, rules and regulations of
         the State of New York, the State of Texas and the United States of
         America and the rules and regulations adopted thereunder, that, in our
         experience, are normally applicable to transactions of the type
         contemplated by the Principal Documents. However, the term "Applicable
         Laws" does not include, and we express no opinion with regard to (i)
         any state or federal laws, rules or regulations relating to: (A)
         pollution or protection of the environment; (B) zoning, land use,
         building or construction; (C) occupational safety and health or other
         similar matters; (D) labor, employee rights and benefits, including the
         Employee Retirement Income Security Act of 1974, as amended; (E) except
         as expressly provided in the second sentence of paragraph 7 below, the
         regulation of utilities, including the Public Utility Regulatory Policy
         Act of 1978, as amended; (F) antitrust and trade regulation; (G) tax;
         (H) except as expressly provided in paragraph 7 below, securities,
         including, without limitation, federal and state securities laws, rules
         or regulations; (I) corrupt practices, including, without limitation,
         the Foreign Corrupt Practices Act of 1977; and (J) copyrights, patents
         and trademarks, and (ii) any laws, rules or regulations of any county,
         municipality or similar political subdivision or any agency or
         instrumentality thereof.

         6.       No Governmental Approval (as defined below) which has not been
obtained or taken and is not in full force and effect, is required to be
obtained or taken by any Principal Party to authorize, or is required in
connection with, the execution and delivery by any Principal Party of each
Principal Document to which it is a party or the performance by any Principal
Party of its obligations thereunder, except (a) the filing of the Financing
Statements in the applicable Filing Offices, (b) filings that may be required to
continue the effectiveness of the Financing Statements, (c) filings of the
Mortgage referenced in paragraph 11 hereof, and (d) any filings necessary with
regard to future liens or mortgages required to be granted under the Principal
Documents.

         "Governmental Approvals" means any consent, approval, license,
         authorization or validation of, or filing, recording or registration
         with, any Tribunal pursuant to any Applicable Laws (as defined in
         paragraph 5 above).

         7.       No Principal Party is an "investment company" or a company
"controlled" by an "investment company" within the meaning of the Investment
Company Act of 1940, as amended. No Principal Party is a "holding company," a
"public-utility company," or a "subsidiary company" of a "holding company"
within the meaning of the Public Utility Holding Company Act of 1935, as
amended.

         8.       With respect to each Security Document, the provisions of such
Security Document are effective to create in favor of the Administrative Agent
to secure (with respect to each Security Documents other than the Mortgage) the
"Secured Obligations" (as defined in such Security Document) and (with respect
to the Mortgage) the "secured indebtedness" (as defined in the Mortgage), a
valid security interest in all of the right, title and interest of each
Principal Party that is a party to such Security Document in and to that portion
of the Collateral (as defined in

                                 5  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 6

such Security Document) in which a security interest may be created under
Article 9 of the applicable UCC without giving effect to the laws referred to in
Section 9-201(b) and (c) thereof (the "Article 9 Collateral").

         9.       Upon the proper filing of each unfiled Financing Statement (as
described in Section C of Schedule I hereto) in the applicable Filing Office
identified for such unfiled Financing Statement in Section C of Schedule I
hereto, such filings, together with the existing filings of each presently filed
Financing Statement (as described in Section C of Schedule I hereto) in the
Filing Office identified for such presently filed Financing Statement in Section
C of Schedule I hereto, will result in the perfection of the security interest
in favor of the Administrative Agent in that portion of the Article 9 Collateral
described in such Financing Statements in which the Principal Parties named as
debtors in such Financing Statements have an interest, to the extent that
perfection of a security interest in the Article 9 Collateral may be perfected
by the filing of a financing statement under the UCC in effect in the State in
which such Filing Office is located. For purposes of our opinion set forth in
this paragraph 9 with respect to the Delaware UCC, we have based such opinion
solely on our review of the generally available compilations of Article 9 of the
Delaware UCC and we have not reviewed any other laws of the State of Delaware or
retained or relied on any opinion or advice of Delaware counsel.

         10.      With respect to that portion of the Article 9 Collateral
consisting of the certificated securities identified in Exhibit A to the Oasis
Entities Stock Pledge Agreement, upon the Administrative Agent's taking
possession in the State of New York of such certificates, properly endorsed to
the Administrative Agent or in blank, the security interest of the
Administrative Agent therein is perfected by "control" (within the meaning of
Section 8-106 of the New York UCC).

         11.      The Mortgage is in a form to create a valid lien in favor of
the Trustee thereunder, to secure the secured indebtedness referred to therein,
covering the "Deed of Trust Mortgaged Properties" (as defined in the Mortgage),
to the extent the Deed of Trust Mortgaged Properties constitute, under Texas
law, real property located in the State of Texas. The form of the Mortgage
contains provisions sufficient to allow the Trustee thereunder to exercise its
non-judicial power of sale remedy. A fully executed, original counterpart of the
Mortgage is required to be notarized, filed, and recorded in the appropriate
real estate records of the offices of the County Clerks of the Texas counties in
which the real properties described in the Mortgage are located, in order to
perfect the lien granted thereunder covering such Deed of Trust Mortgaged
Properties. Once the Mortgage is properly filed and recorded, no further or
subsequent filing or refiling will be necessary in order to continue the
existence or perfection of the lien referred to in the first sentence of this
paragraph, except that in the event any indebtedness secured by the Mortgage has
not been paid before the expiration of four years from the date provided for
therein or in the Notes, as appropriate, for payment of such indebtedness, an
extension agreement with respect to the Mortgage, providing for the renewal or
extension of such indebtedness, should be executed by the Mortgagor, Trustee,
and Administrative Agent thereunder and notarized, filed, and recorded in the
same records of each office in which the Mortgage has been filed prior to the
expiration of such four-year period.

                                 6  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 7

         12.      In a properly presented case before a court of competent
jurisdiction in the State of Texas, or a federal court applying Texas law, such
court should recognize and give full force and effect to the choice of the laws
of the State of New York as the governing law of each of the Principal Documents
that choose New York law as the governing law thereof, except to the extent that
the perfection and the effect of perfection or non-perfection of the security
interest in the Collateral (as defined in each such Security Document) are
governed by the laws of a jurisdiction other than the State of New York.

         13.      In a properly presented case before a court of competent
jurisdiction in the State of New York, or a federal court applying New York law,
such court would honor the parties' choice of the laws of the State of New York
as the law governing the Principal Documents that choose New York law as the
governing law thereof (to the extent set forth in such Principal Documents).

         In rendering the foregoing opinions, we have also assumed, with your
permission, and without independent investigation on our part, the following:

         A.       With respect to our opinions set forth in paragraphs 8 through
10 above, we have assumed that each Principal Party has, or has the power to
transfer, rights in the properties in which it is purporting to grant a security
interest sufficient for attachment of such security interest within the meaning
of Section 9-203 of the UCC.

         B.       With respect to our opinions set forth in paragraphs 8 through
10 above, we have assumed that the Administrative Agent and Lenders have
acquired their interests in the Article 9 Collateral for value within the
meaning of Section 9-203 of the UCC.

         C.       With respect to our opinions set forth in paragraphs 8 through
10 above, we have assumed the descriptions of collateral contained in, or
attached as schedules, exhibits or attachments to, the Security Documents and
the Financing Statements sufficiently describe (for the purposes of the
attachment and perfection of security interests) the collateral intended to be
covered thereby; provided, that, the foregoing assumption shall not apply to (a)
the description in the Oasis Entities Stock Pledge Agreement and the Financing
Statements of the certificated securities referred to in paragraph 10 of this
opinion letter, and (b) except for any commercial tort claim or cooperative
interest, collateral identified by a type of collateral defined in Article 9 of
the UCC and, with respect to the Financing Statements, collateral described as
being all of the property of the applicable debtor. With respect to our opinions
set forth in paragraph 11 above, we have made no examination of, and express no
opinion with respect to, the accuracy and sufficiency of the description of any
portion of the Deed of Trust Mortgaged Properties, nor with respect to title
thereto.

         D.       With respect to our opinion set forth in paragraph 9 above, we
have relied on the articles or certificate of incorporation, limited liability
company agreement, limited liability company articles of organization or
regulations, or limited partnership agreement, as applicable, and on
certificates of public officials or officers or other representatives of the
Principal Parties as to the authenticity of such documents as the basis for
determining that (i) the name of each

                                 7  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 8

Principal Party, as set forth in subparagraphs (i) through (xxiii) of the second
paragraph of this opinion letter, is the correct legal name of such Principal
Party, (ii) the correct organizational identification number of such Principal
Party is as set forth on the Financing Statements and (iii) that each Principal
Party is solely organized under the laws of the State identified above in
subparagraphs (i) through (xxiii) of the second paragraph of this opinion letter
as such Principal Party's jurisdiction of organization. In addition, we have
assumed that the Financing Statements heretofore filed were duly authorized to
be filed in the applicable Filing Offices by the Principal Parties named as
debtors therein.

         E.       With respect to our opinions set forth in paragraph 10 above,
we have assumed that such certificated securities will at all times be held by
the Administrative Agent in the State of New York.

         The opinions set forth above are subject to the following
qualifications and exceptions:

         (a)      Our opinions above are subject to, and may be limited by,
bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium or other
laws now or hereafter in effect relating to or affecting enforcement of
creditors' rights generally and by general principles of equity (including,
without limitation, concepts of materiality, reasonableness, good faith and fair
dealing, and the possible unavailability of specific performance), regardless of
whether such enforcement is considered in a proceeding in equity or at law.

         (b)      We express no opinion with respect to the validity or
enforceability of the following provisions to the extent that they are contained
in the Principal Documents: (i) provisions releasing, exculpating or exempting a
party from, or requiring indemnification or contribution of a party for,
liability for its own negligence or to the extent that the same are inconsistent
with public policy; (ii) provisions purporting to waive, subordinate or not give
effect to rights to notice, demands, legal defenses or other rights or benefits
that cannot be waived, subordinated or rendered ineffective under applicable
law; (iii) provisions purporting to provide remedies inconsistent with the UCC
to the extent the UCC is applicable; (iv) provisions purporting to render void
and of no effect any transfers of a Principal Party's rights in any collateral
in violation of the terms of the Principal Documents; (v) other than with
respect to our opinions set forth in paragraphs 8 through 10 above, provisions
relating to the creation, attachment, perfection or enforceability of any
security interest; (vi) provisions relating to powers of attorney, severability
or set-offs; (vii) provisions stating that a guarantee will not be affected by a
modification of the obligation guaranteed in cases in which that modification
materially changes the nature or amount of such obligation; (viii) provisions
restricting access to courts or purporting to affect the jurisdiction or venue
of courts (other than the courts of the State of New York with respect to
Principal Documents governed by the laws of the State of New York, to the extent
permitted by Section 5-1402 of the General Obligations Law of the State of New
York); (ix) provisions relating to waiver of jury trial; (x) provisions
purporting to exclude conflicts-of-law rules; (xi) provisions pursuant to which
a party agrees that a judgment rendered by a court or other tribunal in one
jurisdiction may be enforced in any other jurisdiction; and (xii) provisions
providing that decisions by a party are conclusive or may be made in its sole
discretion. In addition to the foregoing, our opinion set forth in paragraph 4
is further subject to

                                 8  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 9

the qualification that certain remedies, waivers and other provisions of the
Mortgage or guaranties of the Guarantors may not be enforceable; nevertheless,
such unenforceability will not render the Mortgage or such guaranties invalid as
a whole nor preclude: (1) the judicial enforcement of the obligation of the
Borrower and the Guarantors to repay the principal, together with interest
thereon (to the extent not deemed a penalty), as provided in the Notes; (2) the
acceleration of the obligation of the Borrower and the Guarantors to repay such
principal, together with such interest, upon a default by the Borrower in the
payment of such principal or interest or upon a material default in any other
material provision of the Mortgage or such guaranties; and (c) the judicial
foreclosure, or if the Lenders elect to so pursue, the non-judicial foreclosure
(i.e., pursuant to the power of sale as specified in the Mortgage), in
accordance with Applicable Law and the Mortgage, of the lien on the Deed of
Trust Mortgaged Properties, upon maturity of the Notes or upon an acceleration
described in clause (2) above.

         (c)      With respect to our opinion in paragraph 13, and insofar as
our opinion set forth in paragraph 4 above relates to the enforceability under
New York law of the provisions of the Principal Documents choosing New York law
as the governing law thereof, such opinions are rendered in reliance upon the
Act of July 19, 1984, ch. 421, 1984 McKinney's Sess. Law of N.Y. 1406 (codified
at N.Y. Gen. Oblig. Law Sections 5-1401 (McKinney 1989)) (the "Act") and are
subject to the qualifications that such enforceability (i) as specified in the
Act, does not apply to the extent provided to the contrary in subsection two of
Section 1-105 of the New York UCC, (ii) may be limited by public policy
considerations of any jurisdiction in which enforcement of such provisions is
sought, and (iii) is subject to any U.S. Constitutional requirement under the
Full Faith and Credit Clause or the Due Process Clause thereof or the exercise
of any applicable judicial discretion in favor of another jurisdiction.

         (d)      Our opinion in paragraph 5, with respect to Texas law, takes
into account and is based on and qualified by our opinion in paragraph 12.

         (e)      Our opinion in paragraph 12 is based on Section 35.51 of the
Texas Business and Commerce Code, which Section to our knowledge has never been
judicially construed.

         (f)      Certain of the remedial provisions with respect to the Article
9 Collateral under the Security Documents to sell or offer for sale the Article
9 Collateral may be subject to compliance with applicable state and federal
securities laws. Without limiting the foregoing, we hereby advise you, in
connection with our opinion in paragraph 11 above, that Sections 51.003, 51.004
and 51.005 of the Texas Property Code, and Sections 1301(3) and 1371 of the New
York Real Property Acts Law (McKinney 1979) contain certain limitations on
recovery of deficiencies after foreclosure.

         (g)      In the case of property which becomes Article 9 Collateral
after the date hereof, our opinion in paragraph 8 above, as to the creation and
validity of the security interests therein described, is subject to the effect
of Section 552 of the Federal Bankruptcy Code, which limits the extent to which
property acquired by a debtor after the commencement of a case under the Federal
Bankruptcy Code may be subject to such security interest arising from a security
agreement entered into by the debtor before the commencement of such case.

                                 9  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 10

         (h)      We express no opinion as to Article 9 Collateral that is
subject to a state statute or a statute, regulation or treaty of the United
States referred to in Section 9-311(a) of the UCC.

         (i)      With respect to our opinion in paragraph 9 above, we express
no opinion as to the perfection of a security interest in any items of
collateral that are or are to become fixtures, as-extracted collateral or timber
to be cut.

         (j)      With respect to our opinions set forth in paragraphs 8 through
10 above, we express no opinion as to the priority of any security interest. Our
opinions set forth in paragraphs 8 and 9 above with respect to the Mortgage are
limited to collateral located in the State of Texas.

         (k)      We express no opinion herein regarding the enforceability of
any provision in a Principal Document that purports to prohibit, restrict or
condition the assignment of such Principal Document to the extent that such
restriction on assignability is governed by Sections 9-406 through 9-409 of the
New York UCC or the Texas UCC.

         (l)      With respect to our opinions set forth in paragraphs 8 through
10 above, the attachment and perfection of the Administrative Agent's security
interest in proceeds is limited to the extent set forth in Section 9-315 of the
UCC.

         (m)      We express no opinion as to any actions that may be required
to be taken periodically under the UCC or under any other applicable law in
order for the effectiveness of the Financing Statements or perfection of any
security interest to be maintained.

         (n)      With respect to our opinions set forth in paragraphs 3 and
5(a) above, we have relied solely on copies of the articles or certificate of
incorporation, bylaws, limited partnership agreement, limited liability company
agreement or limited liability company articles of organization or regulations,
as applicable, or on certificates of officers or other representatives of the
relevant Principal Parties, and we have relied without independent investigation
on certificates of officers or other representatives of the Principal Parties
and of public officials with respect to the authenticity of such articles or
certificates of incorporation, bylaws, limited partnership agreements, limited
liability company agreements or limited liability company articles of
organization or regulations.

         (o)      In rendering the opinions set forth above with respect to
remedies under the Security Documents, we call to your attention that (i) in
connection with a foreclosure or similar action on intrastate pipeline assets,
certain filings may have to be made with the Texas Railroad Commission, and (ii)
in connection with a foreclosure or similar action on contracts for the sale or
transportation of gas under Section 311 of the Natural Gas Policy Act of 1978,
as amended, certain filings may have to be made with the Federal Energy
Regulatory Commission.

         We express no opinion as to the laws of any jurisdiction other than:
(a) with respect to our opinions in paragraphs 5(b) and 6, Applicable Laws; (b)
with respect to our opinions in paragraphs 8 through 10, the UCC; (c) with
respect to our opinions in paragraphs 2 and 5(a), the

                                 10 SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 11

General Corporation Law of the State of Delaware, the Delaware Revised Uniform
Limited Partnership Act, and the Texas Revised Limited Partnership Act, as
applicable; (d) with respect to our opinion in paragraph 12, Section 35.51 of
the Texas Business and Commerce Code; (e) with respect to our opinion in
paragraph 11, the laws of the State of Texas; (f) the laws of the State of New
York; and (g) the federal laws of the United States of America.

         This opinion letter is rendered as of the date set forth above. We
expressly disclaim any obligation to update this letter after such date.

         This opinion letter is given solely for your benefit and the benefit of
the Lenders in connection with the Principal Documents and may not be furnished
to, or relied upon by, any other person or for any other purpose without our
prior written consent; provided, however, that your counsel may rely upon this
opinion letter with respect to any opinions being rendered by such counsel to
any Lender in connection with the Principal Documents, and the Underwriters, as
defined in Section E of Schedule I, may rely upon this opinion letter solely for
their benefit pursuant to Section 7(c) of the Underwriting Agreement, as defined
in Section E of Schedule I.

                                Very truly yours,

                             VINSON & ELKINS L.L.P.

                                 11 SECOND AMENDED AND RESTATED CREDIT AGREEMENT

<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 1

                                   SCHEDULE I
                   TO OPINION LETTER OF VINSON & ELKINS L.L.P.

                               DOCUMENTS EXAMINED

                                   SECTION A.
                               PRINCIPAL DOCUMENTS

1.       Second Amended and Restated Credit Agreement dated as of January 20,
         2004, among La Grange Acquisition, L.P. as Borrower, Fleet National
         Bank as Administrative Agent, Fleet Securities, Inc. and Wachovia
         Capital Markets, LLC as Joint Lead Arrangers and Book Runners, Wachovia
         Bank, National Association as Syndication Agent, The Royal Bank of
         Scotland plc and BNP Paribas as Co-Documentation Agents, Bank of
         Scotland as Senior Managing Agent, U.S. Bank National Association and
         Fortis Capital as Co-Agents, and certain financial institutions as
         Lenders (the "Credit Agreement").

2.       The Notes (as defined in the Credit Agreement), dated as of and
         delivered on the date of the Opinion Letter to which this Schedule I is
         attached.

3.       Second Amended and Restated Guaranty dated as of January 20, 2004,
         executed by ETC Gas, ETC Texas, ETC Oklahoma, ETC Marketing, ETC Oasis,
         ETC Texas Processing, Whiskey Bay Gas, Whiskey Bay Gathering, Chalkley,
         TX Energy Transfer, ET Co. I, Oasis Pipe Line, Oasis Finance, Oasis
         Partner, Oasis Management and Oasis Pipe Line TX in favor of
         Administrative Agent.

4.       Second Amended and Restated Pledge Agreement dated as of January 20,
         2004, executed by Borrower in favor of Administrative Agent (the
         "Borrower LLC Pledge Agreement").

5.       Second Amended and Restated Security Agreement dated as of January 20,
         2004, executed by Borrower in favor of Administrative Agent (the
         "Borrower Security Agreement").

6.       Second Amended and Restated Pledge Agreement dated as of January 20,
         2004, executed by Borrower in favor of Administrative Agent (the
         "Borrower Partnership Pledge Agreement").

7.       Second Amended and Restated Pledge Agreement dated as of January 20,
         2004, executed by LA GP, LG PL, LGM, ETC Oasis GP, Oasis Partner, Oasis
         Management, DAWACO, TETC and ET Co. I in favor of Administrative Agent
         (the "Subsidiary Pledge Agreement").

8.       Second Amended and Restated Security Agreement dated as of January 20,
         2004, executed by ETC Marketing, ETC Oasis, ETC Texas Processing, TX
         Energy Transfer,

                                 1  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 2

         Whiskey Bay Gas, Whiskey Bay Gathering, Chalkley, ET Co. I, Oasis Pipe
         Line, Oasis Management, Oasis Finance, Oasis Partner and ETC Gas in
         favor of Administrative Agent (the "Subsidiary Security Agreement").

9.       Amended and Restated Stock Pledge Agreement dated as of January 20,
         2004, executed by ETC Oasis and Oasis Pipe Line in favor of
         Administrative Agent (the "Oasis Entities Stock Pledge Agreement").

10.      First Amended and Restated Deed of Trust, Mortgage, Assignment,
         Security Agreement, Fixture Filing and Financing Statement dated as of
         January 20, 2004 executed by ETC Texas, Oasis Pipe Line TX, ETC
         Oklahoma and ETC Texas Processing (the "Mortgage").

The Borrower LLC Pledge Agreement, the Borrower Partnership Pledge Agreement,
the Subsidiary Pledge Agreement, the Oasis Entities Stock Pledge Agreement, the
Borrower Security Agreement, the Subsidiary Security Agreement and the Mortgage
are herein collectively called the "Security Documents".

                                   SECTION B.
                       CORPORATE DOCUMENTS AND PROCEEDINGS

1.       Unanimous Written Consent of Mangers in Lieu of Meeting of LA GP dated
         January 20, 2004.

2.       Resolutions of the Board of Managers of LA GP.

3.       Unanimous Written Consent of Mangers in Lieu of Meeting of LG PL dated
         January 20, 2004.

4.       Resolutions of the Board of Managers of LG PL.

5.       Unanimous Written Consent of Mangers in Lieu of Meeting of LGM dated
         January 20, 2004.

6.       Resolutions of the Board of Managers of LGM.

7.       Unanimous Written Consent of Mangers in Lieu of Meeting of ETC Oasis GP
         dated January 20, 2004.

8.       Resolutions of the Board of Managers of ETC Oasis GP.

                                 2  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 3

9.       Unanimous Written Consent of Mangers in Lieu of Meeting of DAWACO dated
         January 20, 2004.

10.      Resolutions of the Board of Managers of DAWACO.

11.      Unanimous Written Consent of Mangers in Lieu of Meeting of TETC dated
         January 20, 2004.

12.      Resolutions of the Board of Managers of TETC.

13.      Unanimous Written Consent of Directors in Lieu of Meeting of Oasis Pipe
         Line dated January 20, 2004.

14.      Resolutions of the Board of Directors of Oasis Pipe Line.

15.      Unanimous Written Consent of Directors in Lieu of Meeting of Oasis
         Management dated January 20, 2004.

16.      Resolutions of the Board of Directors of Oasis Management.

17.      Unanimous Written Consent of Directors in Lieu of Meeting of Oasis
         Finance dated January 20, 2004.

18.      Resolutions of the Board of Directors of Oasis Finance.

19.      Unanimous Written Consent of Directors in Lieu of Meeting of Oasis
         Partner dated January 20, 2004.

20.      Resolutions of the Board of Directors of Oasis Partner.

21.      Consent and Acknowledgment of DAWACO dated January 20, 2004.

22.      Consent and Acknowledgment of Heritage ETC GP, L.L.C. dated January 20,
         2004.

23.      Unanimous Consent of the Board of Directors of U.S. Propane, L.L.C.
         dated January 16, 2004.

                                   SECTION C.
                              FINANCING STATEMENTS

1.       Financing Statement 03-0004379086, naming La Grange Acquisition, L.P.,
         as debtor, and Fleet National Bank, as Administrative Agent, as secured
         party, and filed in the Office of the Secretary of State of the State
         of Texas on October 10, 2002.

                                 3  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 4

2.       An unfiled copy of a Financing Statement naming ETC Gas Company, Ltd.,
         as debtor, and Fleet National Bank, as Administrative Agent, as secured
         party, to be filed in the Office of the Secretary of State of the State
         of Texas.

3.       Financing Statement 03-0004378732, naming ETC Marketing, Ltd., as
         debtor, and Fleet National Bank, as Administrative Agent, as secured
         party, and filed in the Office of the Secretary of State of the State
         of Texas on October 10, 2002.

4.       Financing Statement 03-0004379531, naming ETC Oasis GP, LLC, as debtor,
         and Fleet National Bank, as Administrative Agent, as secured party, and
         filed in the Office of the Secretary of State of the State of Texas on
         October 10, 2002, as amended by UCC Financing Statement Amendment
         03-00236900, filed in the Office of the Secretary of State of the State
         of Texas on April 8, 2003.

5.       Financing Statement 03-0004378954, naming ETC Oklahoma Pipeline, Ltd.,
         as debtor, and Fleet National Bank, as Administrative Agent, as secured
         party and filed in the Office of the Secretary of State of the State of
         Texas on October 10, 2002.

6.       Financing Statement 03-0004378843, naming ETC Texas Pipeline, Ltd., as
         debtor, and Fleet National Bank, as Administrative Agent, as secured
         party, and filed in the Office of the Secretary of State of the State
         of Texas on October 10, 2002.

7.       Financing Statement 04-0042019696, naming ETC Texas Pipeline, Ltd., as
         debtor, and Fleet National Bank, as Administrative Agent, as secured
         party, and filed in the Office of the Secretary of State of the State
         of Texas on September 17, 2003, as a transmitting utility filing and a
         fixture filing, and an unfiled copy of a UCC Financing Statement
         Amendment amending such Financing Statement to restate the collateral
         description, to be filed in the Office of the Secretary of State of the
         State of Texas.

8.       An unfiled copy of a Financing Statement naming ETC Texas Processing,
         Ltd., as debtor, and Fleet National Bank, as Administrative Agent, as
         secured party, and to be filed in the Office of the Secretary of State
         of the State of Texas.

9.       An unfiled copy of a Financing Statement naming ETC Texas Processing,
         Ltd., as debtor, and Fleet National Bank, as Administrative Agent, as
         secured party, and to be filed in the Office of the Secretary of State
         of the State of Texas, as a transmitting utility filing and a fixture
         filing.

10.      Financing Statement 03-0012863720, naming FIVE-DAWACO, INC., as debtor,
         and Fleet National Bank, as Administrative Agent, as secured party, and
         filed in the Office of the Secretary of State of the State of Texas on
         January 6, 2003, and an unfiled copy of a UCC Financing Statement
         Amendment amending such Financing Statement to reflect a change of name
         of such debtor to Five Dawaco, LLC and a change of its type of

                                 4  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 5

         organization to a limited liability company, to be filed in the Office
         of the Secretary of State of the State of Texas.

11.      Financing Statement 03-0004379208, naming LA GP, LLC, as debtor, and
         Fleet National Bank, as Administrative Agent, as secured party, and
         filed in the Office of the Secretary of State of the State of Texas on
         October 10, 2002.

12.      Financing Statement 03-0004379319, naming LG PL, LLC, as debtor, and
         Fleet National Bank, as Administrative Agent, as secured party, and
         filed in the Office of the Secretary of State of the State of Texas on
         October 10, 2002, and an unfiled copy of a UCC Financing Statement
         Amendment amending such Financing Statement to restate the collateral
         description, to be filed in the Office of the Secretary of State of the
         State of Texas.

13.      Financing Statement 03-0004379420, naming LGM, LLC, as debtor, and
         Fleet National Bank, as Administrative Agent, as secured party, and
         filed in the Office of the Secretary of State of the State of Texas on
         October 10, 2002.

14.      Financing Statement 03-0012863053, naming ET Company I, Ltd., as
         debtor, and Fleet National Bank, as Administrative Agent, as secured
         party, and filed in the Office of the Secretary of State of the State
         of Texas on January 6, 2003.

15.      Financing Statement 03-0012862709, naming Texas Energy Transfer
         Company, Ltd., as debtor, and Fleet National Bank, as Administrative
         Agent, as secured party, and filed in the Office of the Secretary of
         State of the State of Texas on January 6, 2003.

16.      Financing Statement 03-0012862921, naming Whiskey Bay Gathering
         Company, Ltd., as debtor, and Fleet National Bank, as Administrative
         Agent, as secured party, and filed in the Office of the Secretary of
         State of the State of Texas on January 6, 2003.

17.      Financing Statement 03-0012862810, naming Whiskey Bay Gas Company,
         Ltd., as debtor, and Fleet National Bank, as Administrative Agent, as
         secured party, and filed in the Office of the Secretary of State of the
         State of Texas on January 6, 2003.

18.      Financing Statement 03-0012862698, naming Chalkley Transmission
         Company, Ltd., as debtor, and Fleet National Bank, as Administrative
         Agent, as secured party, and filed in the Office of the Secretary of
         State of the State of Texas on January 6, 2003.

19.      Financing Statement 03-0012863619, naming TETC, INC., as debtor and
         Fleet National Bank, as Administrative Agent, as secured party, and
         filed in the Office of the Secretary of State of the State of Texas on
         January 6, 2003, and an unfiled copy of a UCC Financing Statement
         Amendment amending such Financing Statement to reflect a change of name
         of such debtor to TETC, LLC and a change of its type of organization to
         a

                                 5  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 6

         limited liability company, to be filed in the Office of the Secretary
         of State of the State of Texas.

20.      Financing Statement 03-0012863497, naming Oasis Pipe Line Company Texas
         L.P., as debtor, and Fleet National Bank, as Administrative Agent, as
         secured party, and filed in the Office of the Secretary of State of the
         State of Texas on January 6, 2003.

21.      Financing Statement 04-0042039274, naming Oasis Pipe Line Company Texas
         L.P., as debtor, and Fleet National Bank, as Administrative Agent, as
         secured party, and filed in the Office of the Secretary of State of the
         State of Texas on September 17, 2003, as a transmitting utility filing
         and a fixture filing, and an unfiled copy of a UCC Financing Statement
         Amendment amending such Financing Statement to restate the collateral
         description, to be filed in the Office of the Secretary of State of the
         State of Texas.

22.      Financing Statement 3020443 1, naming Oasis Pipe Line Company, as
         debtor, and Fleet National Bank, as Administrative Agent, as secured
         party, and filed with the Delaware Department of State, U.C.C. Filing
         Section on January 6, 2003.

23.      Financing Statement 3020438 1, naming Oasis Pipe Line Finance Company,
         as debtor, and Fleet National Bank, as Administrative Agent, as secured
         party, and filed with the Delaware Department of State, U.C.C. Filing
         Section on January 6, 2003.

24.      Financing Statement 3020442 3, naming Oasis Partner Company, as debtor,
         and Fleet National Bank, as Administrative Agent, as secured party, and
         filed with the Delaware Department of State, U.C.C. Filing Section on
         January 6, 2003.

25.      Financing Statement 3020439 9, naming Oasis Pipe Line Management
         Company, as debtor, and Fleet National Bank, as Administrative Agent,
         as secured party, and filed with the Delaware Department of State,
         U.C.C. Filing Section on January 6, 2003.

26.      Financing Statement 3020680 8, naming ETC Oasis, L.P., as debtor, and
         Fleet National Bank, as Administrative Agent, as secured party, and
         filed with the Delaware Department of State, U.C.C. Filing Section on
         January 6, 2003.

The above-described Financing Statements and UCC Financing Statement Amendments
are herein collectively called the "Financing Statements" and the places in
which they are indicated to have been filed or are indicated to be filed are
herein collectively called the "Filing Offices."

                                   SECTION D.
                            GOVERNMENTAL CERTIFICATES

                                 6  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 7

1.       A certificate from the Secretary of State of Delaware, dated January
         13, 2004, regarding Oasis Pipe Line Company.

2.       A certificate from the Secretary of State of Delaware, dated January
         12, 2004, regarding Oasis Pipe Line Management Company.

3.       A certificate from the Secretary of State of Delaware, dated January
         12, 2004, regarding Oasis Partner Company.

4.       A certificate from the Secretary of State of Delaware, dated January
         12, 2004, regarding Oasis Pipe Line Finance Company.

5.       A certificate from the Secretary of State of Delaware, dated January
         12, 2004, regarding ETC Oasis, L.P.

6.       A certificate from the Secretary of State of Delaware, dated January
         12, 2004, regarding Heritage Holdings, Inc.

7.       A certificate from the Secretary of State of Louisiana, dated January
         9, 2004, regarding Five-Dawaco, Inc.

8.       A certificate from the Secretary of State of Louisiana, dated January
         9, 2004, regarding Chalkley Transmission Company, Ltd.

9.       A certificate from the Secretary of State of Louisiana, dated January
         9, 2004, regarding Texas Energy Transfer Company, Ltd.

10.      A certificate from the Secretary of State of Texas, dated January 9,
         2004, regarding Oasis Pipe Line Management Company.

11.      A certificate from the Secretary of State of Texas, dated January 9,
         2004, regarding Oasis Pipe Line Finance Company.

12.      A certificate from the Secretary of State of Texas, dated January 9,
         2004, regarding ETC Oasis, L.P.

13.      A certificate from the Secretary of State of Texas, dated January 9,
         2004, regarding TETC, Inc.

14.      A certificate from the Secretary of State of Texas, dated January 9,
         2004, regarding Five-Dawaco, Inc.

                                 7  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 8

15.      A certificate from the Secretary of State of Texas, dated January 9,
         2004, regarding ETC Oasis GP, LLC.

16.      A certificate from the Secretary of State of Texas, dated January 9,
         2004, regarding LGM, LLC.

17.      A certificate from the Secretary of State of Texas, dated January 9,
         2004, regarding LG PL, LLC.

18.      A certificate from the Secretary of State of Texas, dated January 12,
         2004, regarding LA GP, LLC.

19.      A certificate from the Secretary of State of Texas, dated January 9,
         2004, regarding ET Company I, Ltd.

20.      A certificate from the Secretary of State of Texas, dated January 9,
         2004, regarding Chalkley Transmission Company, Ltd.

21.      A certificate from the Secretary of State of Texas, dated January 9,
         2004, regarding Texas Energy Transfer Company, Ltd.

22.      A certificate from the Secretary of State of Texas, dated January 9,
         2004, regarding Whiskey Bay Gas Company, Ltd.

23.      A certificate from the Secretary of State of Texas, dated January 12,
         2004, regarding Whiskey Bay Gathering Company, Ltd.

24.      A certificate from the Secretary of State of Texas, dated January 9,
         2004, regarding Oasis Pipe Line Company Texas L.P.

25.      A certificate from the Secretary of State of Texas, dated January 9,
         2004, regarding ETC Marketing, Ltd.

26.      A certificate from the Secretary of State of Texas, dated January 9,
         2004, regarding ETC Oklahoma Pipeline, Ltd.

27.      A certificate from the Secretary of State of Texas, dated January 12,
         2004, regarding ETC Texas Pipeline, Ltd.

28.      A certificate from the Secretary of State of Texas, dated January 12,
         2004, regarding ETC Gas Company, Ltd.

                                 8  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 9

29.      A certificate from the Secretary of State of Texas, dated January 12,
         2004, regarding La Grange Acquisition, L.P.

30.      A certificate from the Secretary of State of Texas, dated January 14,
         2004, regarding ETC Texas Processing, Ltd.

31.      A certificate from the Texas Comptroller of Public Accounts, dated
         January 12, 2004, regarding Oasis Pipe Line Management Company.

32.      A certificate from the Texas Comptroller of Public Accounts, dated
         January 12, 2004, regarding Oasis Pipe Line Finance Company.

33.      A certificate from the Texas Comptroller of Public Accounts, dated
         January 12, 2004, regarding TETC, Inc.

34.      A certificate from the Texas Comptroller of Public Accounts, dated
         January 12, 2004, regarding Five-Dawaco, Inc.

35.      A certificate from the Texas Comptroller of Public Accounts, dated
         January 12, 2004, regarding ETC Oasis GP, LLC.

36.      A certificate from the Texas Comptroller of Public Accounts, dated
         January 12, 2004, regarding LGM, LLC.

37.      A certificate from the Texas Comptroller of Public Accounts, dated
         January 12, 2004, regarding LG PL, LLC.

38.      A certificate from the Texas Comptroller of Public Accounts, dated
         January 12, 2004, regarding LA GP, LLC.

                                   SECTION E.
                                NEW DEFINED TERMS

         Underwriting Agreement means the Underwriting Agreement dated January
13, 2004 by and among Heritage L.P., U.S. Propane, L.P. (the "General Partner"),
Heritage ETC, L.P. (the "New Operating Partnership"), Heritage ETC GP, L.L.C.
(the "New OLP General Partner"), Heritage Operating, L.P. (the "Heritage
Operating Partnership"), Heritage LP, Inc. ("Heritage OLP LP"), and the
underwriters named therein.

         Underwriters means Lehman Brothers Inc., Citigroup Global Markets Inc.,
UBS Securities LLC, A.G. Edwards & Sons, Inc., Wachovia Capital Markets, LLC,
Credit Suisse

                                 9  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

Fleet National Bank, as Administrative Agent
January 20, 2004
Page 10

First Boston LLC, RBC Dain Rauscher Inc., Raymond James & Associates, Inc. and
Stephens Inc.

                                 10 SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

                                                                       EXHIBIT H

                      ENVIRONMENTAL COMPLIANCE CERTIFICATE

         Reference is made to that certain Second Amended and Restated Credit
Agreement dated as of January 20, 2004 (as from time to time amended, the
"Agreement"), by and among La Grange Acquisition, L.P. ("Borrower"), Fleet
National Bank, as Administrative Agent, and certain financial institutions
("Lenders"). Terms which are defined in the Agreement are used herein with the
meanings given them in the Agreement. Borrower hereby certifies to
Administrative Agent and Lenders as follows:

                  1.       For the Fiscal Year ending immediately prior to the
         date hereof, Borrower has complied and is complying with Section [____]
         of the Agreement *[except as set forth in Schedule I attached hereto];

                  2.       To the best knowledge of the undersigned after due
         inquiry, Borrower is on the date hereof in compliance with all
         applicable Environmental Laws, noncompliance with which could cause a
         Material Adverse Change;

                  3.       Borrower has taken (and continues to take) steps to
         minimize the generation of potentially harmful effluents;

                  4.       Borrower has established an ongoing program of
         conducting an internal audit of each operating facility of Borrower to
         identify actual or potential environmental liabilities which could
         reasonably be expected to have a Material Adverse Effect; and

                  5.       Borrower has established an ongoing program of
         training its employees in issues of environmental, health and safety
         compliance, and Borrower presently has one or more individuals in
         charge of implementing such training program.

         The officer of LA GP signing this instrument hereby certifies that, to
the best of his knowledge after due inquiry and consultation with the operating
officers of Borrower, the above representations, warranties, acknowledgments,
and agreements of Borrower are true, correct and complete in all material
respects.

                                 1  SECOND AMENDED AND RESTATED CREDIT AGREEMENT
<PAGE>

IN WITNESS WHEREOF, this instrument is executed as of ____________, ____.

                                           LA GRANGE ACQUISITION, L.P.

                                           By: LA GP, LLC, its general partner

                                               By: _____________________________
                                                   Name:
                                                   Title:

                                 2  SECOND AMENDED AND RESTATED CREDIT AGREEMENT

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