Document:

<PAGE>
                                                                    Exhibit 10.5

[H & P LOGO]

                                CREDIT AGREEMENT

                               dated July 16, 2002

                                      among

                  HELMERICH & PAYNE INTERNATIONAL DRILLING CO.

                             HELMERICH & PAYNE, INC.

                               THE SEVERAL LENDERS
                         FROM TIME TO TIME PARTY HERETO

                                       and

                     BANK OF OKLAHOMA, NATIONAL ASSOCIATION,
                             as Administrative Agent

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                             Page
                                                                                                             ----
<S>                                                                                                          <C>
ARTICLE I - DEFINITIONS.......................................................................................1
1.1      Definitions..........................................................................................1
1.2      Construction and Interpretation.....................................................................18
1.3      Accounting Terms....................................................................................18
ARTICLE II - TERMS OF THE CREDIT FACILITY....................................................................18
2.1      Commitments.........................................................................................18
2.2      Method of Borrowing.................................................................................19
2.3      Continuation and Conversion.........................................................................21
2.4      Notes...............................................................................................22
2.5      Reduction, Termination and Extension of Revolving Commitments.......................................23
2.6      Additional Provisions Relating to Letters of Credit.................................................23
2.7      Additional Provisions Relating to Swingline Loans...................................................28
2.8      Pro Rata Treatment..................................................................................28
2.9      Records of Loans....................................................................................29
ARTICLE III - INTEREST, FEES AND REPAYMENT...................................................................30
3.1      Interest............................................................................................30
3.2      Fees................................................................................................30
3.3      Maturity; Repayment.................................................................................31
3.4      Prepayments.........................................................................................32
3.5      Sharing of Payments.................................................................................32
3.6      Payments............................................................................................33
3.7      Computations of Interest and Fees...................................................................33
3.8      Maximum Lawful Interest Rate........................................................................33
ARTICLE IV - YIELD PROTECTION; OTHER PROVISIONS RELATING TO CREDIT FACILITY..................................34
4.1      Capital Adequacy....................................................................................34
4.2      Limitation on LIBOR Rate Loans......................................................................34
4.3      Illegality..........................................................................................34
4.4      Requirements of Law.................................................................................35
4.5      Treatment of Affected Loans.........................................................................36
4.6      Taxes...............................................................................................36
4.7      Compensation........................................................................................39
4.8      Replacement of Lenders..............................................................................39
ARTICLE V - CLOSING; CONDITIONS PRECEDENT....................................................................40
5.1      Closing Date........................................................................................40
5.2      Closing Conditions..................................................................................40
5.3      Conditions to All Extensions of Credit..............................................................42
ARTICLE VI - REPRESENTATIONS AND WARRANTIES..................................................................43
6.1      Organization; Existence; Compliance with Law........................................................43
6.2      Existence and Authorization.........................................................................43
6.3      Enforceability......................................................................................44
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                         <C>
6.4      No Legal Bar........................................................................................44
6.5      Financial Condition.................................................................................44
6.6      No Material Litigation and Disputes.................................................................44
6.7      No Defaults.........................................................................................45
6.8      Ownership and Operation of Property.................................................................45
6.9      Licenses............................................................................................45
6.10     No Burdensome Restrictions..........................................................................45
6.11     Taxes...............................................................................................45
6.12     ERISA Matters.......................................................................................45
6.13     Governmental Regulations............................................................................46
6.14     Subsidiaries........................................................................................47
6.15     Purpose of Extensions of Credit.....................................................................47
6.16     Environmental Matters...............................................................................48
6.17     Labor Matters.......................................................................................48
6.18     No Material Misstatements...........................................................................49
ARTICLE VII - AFFIRMATIVE COVENANTS..........................................................................49
7.1      Reporting Requirements..............................................................................49
7.2      Preservation of Existence and Franchises............................................................51
7.3      Books and Records...................................................................................51
7.4      Compliance with Law.................................................................................52
7.5      Payment of Taxes and Other Indebtedness.............................................................52
7.6      Insurance...........................................................................................52
7.7      Maintenance of Property.............................................................................52
7.8      Performance of Obligations..........................................................................52
7.9      Use of Proceeds.....................................................................................52
7.10     Audits/Inspections..................................................................................52
7.11     Financial Covenants.................................................................................53
7.12     Liquidity Maintenance...............................................................................53
7.13     Additional Guarantors...............................................................................53
ARTICLE VIII - NEGATIVE COVENANTS............................................................................54
8.1      Indebtedness........................................................................................54
8.2      Liens...............................................................................................54
8.3      Merger and Consolidation............................................................................55
8.4      Dissolution.........................................................................................56
8.5      Asset Dispositions..................................................................................56
8.6      Transactions with Affiliates........................................................................57
8.7      Fiscal Year; Organizational Documents...............................................................57
8.9      Contingent Debt.....................................................................................57
ARTICLE IX - EVENTS OF DEFAULT...............................................................................58
9.1      Events of Default...................................................................................58
9.2      Acceleration; Remedies..............................................................................61
9.3      Waiver of Event of Default..........................................................................61
9.4      Allocation of Payments After Event of Default.......................................................62
ARTICLE X - AGENCY PROVISIONS................................................................................63
10.1     Appointment, Powers and Immunities..................................................................63
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                         <C>
10.2     Reliance by Administrative Agent....................................................................63
10.3     Defaults............................................................................................64
10.4     Rights as a Lender..................................................................................64
10.5     Indemnification.....................................................................................64
10.6     Non-Reliance on Administrative Agent and Other Lenders..............................................65
10.7     Successor Administrative Agent......................................................................65
ARTICLE XI - PARENT GUARANTY.................................................................................65
ARTICLE XII - GENERAL PROVISIONS.............................................................................67
12.1     Notices.............................................................................................67
12.2     Right of Set-Off; Adjustments.......................................................................68
12.3     Benefit of Agreement................................................................................69
12.4     No Waiver; Remedies Cumulative......................................................................71
12.5     Expenses; Indemnification...........................................................................71
12.6     Amendments, Waivers and Consents....................................................................72
12.7     Counterparts........................................................................................74
12.8     Headings............................................................................................74
12.9     Survival............................................................................................74
12.10    Governing Law.......................................................................................74
12.11    Waiver of Jury Trial................................................................................74
12.12    Severability........................................................................................74
12.13    Entire Agreement....................................................................................75
12.14    Binding Effect......................................................................................75
12.15    Termination.........................................................................................75
12.16    Confidentiality.....................................................................................75
12.17    Spinoff/Merger; Other Proposed Transactions.........................................................76
</TABLE>

<PAGE>

                             SCHEDULES AND EXHIBITS

SCHEDULES

Schedule 1.1      Material Subsidiaries
Schedule 2.6(a)   Existing Letters of Credit
Schedule 6.5      Subsequent Events
Schedule 6.14     Subsidiaries
Schedule 6.17     Labor Matters
Schedule 7.6      Insurance

EXHIBITS

Exhibit "A"       Form of Promissory Note
Exhibit "A-1"     Form of Swingline Note
Exhibit "B"       Form of Subsidiary Guaranty Agreement
Exhibit "C"       Form of Notice of Borrowing
Exhibit "D"       Form of Notice of Request for Letter of Credit
Exhibit "E"       Form of Notice of Continuation/Conversion
Exhibit "F"       Form of Opinion
Exhibit "G"       Form of Compliance Certificate
Exhibit "H"       Form of Assignment and Acceptance

<PAGE>

                                CREDIT AGREEMENT

         THIS CREDIT AGREEMENT (this "Agreement"), dated July 16, 2002, is
entered into by and among HELMERICH & PAYNE INTERNATIONAL DRILLING CO., a
Delaware corporation (the "Borrower"), HELMERICH & PAYNE, INC., a Delaware
corporation (the "Parent"), the Lenders (as hereinafter defined), and BANK OF
OKLAHOMA, NATIONAL ASSOCIATION, as Administrative Agent for the Lenders (in such
capacity, the "Administrative Agent"), with reference to the following:

         A. The Borrower is primarily engaged in the business of the contract
drilling of oil and gas wells for others.

         B. The Borrower has requested that the Lenders provide a revolving
credit facility in the maximum principal amount of $125,000,000 to be used for
the purposes hereinafter stated.

         C. The Lenders have agreed to establish the requested revolving credit
facility in favor of the Borrower on the terms and conditions hereinafter set
forth.

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

         1.1 Definitions. As used in this Agreement, the following terms have
the meanings specified below, unless the context otherwise requires:

         "Adjusted LIBOR Rate" means, with respect to any LIBOR Rate Loan for
any Interest Period therefor, the rate per annum (rounded upwards, if necessary,
to the nearest 1/100 of 1%) determined by the Administrative Agent to be equal
to the quotient obtained by dividing (a) the LIBOR Rate for such LIBOR Rate Loan
for such Interest Period by (b) 1 minus the Eurodollar Reserve Requirement for
such LIBOR Rate Loan for such Interest Period.

         "Administrative Agent Fee Letter" means the letter agreement dated as
of the date hereof between the Borrower and the Administrative Agent, as
amended, modified, restated or supplemented from time to time.

         "Affiliate" means, with respect to any Person, any other Person (i)
directly or indirectly controlling or controlled by or under direct or indirect
common control with such Person or (ii) directly or indirectly owning or holding
five percent (5%) or more of the Capital Stock in such Person. For purposes of
this definition, "control" means when used with respect to any Person, the power
to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise.

                                       1
<PAGE>

         "Aggregate Revolving Committed Amount" means the aggregate amount of
Revolving Commitments in effect from time to time, as referenced in Section
2.1(a), as such amounts may be reduced from time to time pursuant to Section
2.5. The initial Aggregate Revolving Committed Amount is $125,000,000.

         "Agreement" (and such terms as "herein," "hereof," "hereto," "hereby,"
"hereunder" and the like) means and refers to this Credit Agreement, together
with all exhibits and schedules attached hereto, as it may be amended, modified,
restated or supplemented from time to time,

         "Applicable Lending Office" means, for each Lender, the office of such
Lender (or of an Affiliate of such Lender) as such Lender may from time to time
specify to the Administrative Agent and the Borrower by written notice as the
office at which its LIBOR Rate Loans are made and maintained.

         "Applicable Margins" means, for any day, the rates per annum set forth
below opposite the applicable Consolidated Debt to EBITDA Ratio, it being
understood that (i) the Applicable Margin for LIBOR Rate Loans shall be the
percentage set forth under the column "LIBOR Rate Loans," and (ii) the
Applicable Margin for Prime Rate Loans shall be the percentage set forth under
the column "Prime Rate Loans."

<TABLE>
<CAPTION>
                         Consolidated Debt to EBITDA
    Pricing Level                   Ratio                     LIBOR Rate Loans              Prime Rate Loans
    -------------        ---------------------------          ----------------              ----------------
    <S>                  <C>                             <C>                            <C>
        Tier I                Less than 2.0:1.0           (Plus) 0.875% (87.5 bps)      (Minus) 1.750% (175 bps)
       Tier II             Greater than or equal to      (Plus) 1.125% (112.5 bps)      (Minus) 1.500% (150 bps)
                                   2.0:1.0
</TABLE>

Until the first Rate Determination Date, the Applicable Margins shall those
applicable to the "Tier I Pricing Level" shown in the table above. The
Applicable Margins shall be determined and adjusted, if appropriate, quarterly
on each Rate Determination Date; provided that in the event the applicable
Required Financial Information is not delivered to the Administrative Agent by
the date required by Section 7.1(a) or 7.1(b), as applicable, the Applicable
Margins shall be based on the highest pricing level until such time as the
Required Financial Information is delivered. Subject to such proviso, each
Applicable Margin shall be effective from one Rate Determination Date until the
next Rate Determination Date. The Administrative Agent shall determine the
appropriate Applicable Margins promptly upon receipt of the Required Financial
Information and shall promptly notify the Borrower and the Lenders of any
changes therein. Such determinations by the Administrative Agent shall be
conclusive, absent manifest error. Adjustments in the Applicable Margins shall
be effective as to existing Extensions of Credit as well as new Extensions of
Credit made thereafter.

         "Asset Disposition" means and includes the sale, lease (including any
Sale/Leaseback Transaction), transfer or other disposition of any Property by a
member of the Consolidated

                                       2
<PAGE>

Group (including the Capital Stock of a Subsidiary), whether pursuant to a
single transaction or a series of related transactions.

         "Bank of Oklahoma" means Bank of Oklahoma, National Association, and
its successors.

         "Bank One Agreement" means the Credit Agreement dated as of October 27,
1998, between the Parent and Bank One, Oklahoma, N.A., as amended pursuant to a
First Amendment to Credit Agreement dated as of May 20, 1999, as assigned to and
assumed by the Borrower pursuant to an Assignment and Assumption Agreement dated
as of July 16, 2002, among the Parent, the Borrower and Bank One, Oklahoma,
N.A., as further amended pursuant to a Second Amendment dated as of July 16,
2002, among the Parent, the Borrower and Bank One, Oklahoma, N.A., and as it may
be further amended, supplemented, assigned or otherwise modified from time to
time.

         "Bankruptcy Code" means the United States Bankruptcy Code (Title 11 of
the United States Code), as amended, modified, succeeded or replaced from time
to time.

         "Bankruptcy Event" means, with respect to any Person, the occurrence of
any of the following with respect to such Person: (i) a court or governmental
agency having jurisdiction in the premises shall enter a decree or order for
relief in respect of such Person in an involuntary case under the Bankruptcy
Code or any other applicable insolvency or other similar Law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or similar official) of such Person or for any substantial part of
its Property or ordering the winding up or liquidation of its affairs; or (ii)
there shall be commenced against such Person an involuntary case under the
Bankruptcy Code or any other applicable insolvency or other similar Law now or
hereafter in effect, or any case, proceeding or other action for the appointment
of a receiver, liquidator, assignee, custodian, trustee, sequestrator (or
similar official) of such Person or for any substantial part of its Property or
for the winding up or liquidation of its affairs, and such involuntary case or
other case, proceeding or other action shall remain undismissed, undischarged or
unbonded for a period of 90 consecutive days; or (iii) such Person shall
commence a voluntary case under the Bankruptcy Code or any other applicable
insolvency or other similar Law now or hereafter in effect, or consent to the
entry of an order for relief in an involuntary case under any such law, or
consent to the appointment or taking possession by a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar official) of such Person
or for any substantial part of its Property or make any general assignment for
the benefit of creditors; or (iv) such Person shall be unable to pay or shall
fail to pay, or shall admit in writing its inability to pay, its debts generally
as they become due.

         "Business Day" means a day other than a Saturday, Sunday or other day
on which commercial banks in Tulsa, Oklahoma, or New York, New York, are
authorized or required by law to be closed, except that, when used in connection
with a LIBOR Rate Loan, such day shall also be a day on which dealings between
banks are carried on in Dollar deposits in London, England.

                                       3
<PAGE>

         "Capital Lease" means, as applied to any Person, any lease of any
Property (whether real, personal or mixed) by that Person as lessee which, in
accordance with GAAP, is or should be accounted for as a capital lease on the
balance sheet of that Person.

         "Capital Stock" means (i) in the case of a corporation, capital stock,
(ii) in the case of a partnership, partnership interests (whether general or
limited), (iii) in the case of a limited liability company, membership
interests, (iv) in the case of an association or other business entity, shares,
interests, participations, rights or other equivalents (however designated) of
capital stock, and (v) any other interest or participation that confers on a
Person the right to receive a share of the profits and losses of, or
distributions of assets of, the issuing Person.

         "Change of Control" means (i) the acquisition by any Person, or two or
more Persons acting in concert, of beneficial ownership (within the meaning of
Rule 13d-3 of the SEC under the Securities Exchange Act) of 35% or more of the
outstanding shares of Voting Stock of the Parent, (ii) the existence of any
circumstance or the occurrence of any event whereby the individuals who comprise
the Incumbent Board shall cease for any reason to constitute at least two-thirds
of the voting members of the Board of Directors of the Parent, or (iii) the
failure of the Borrower to be and remain a wholly-owned Subsidiary of the Parent
(unless the Borrower and the Parent have been merged or consolidated with each
other in a merger or consolidation permitted by Section 8.3(ii)). For purposes
of this definition, the "Incumbent Board" means the individuals who are members
of the Board of Directors of the Parent as of the Closing Date and any
individual who is hereafter elected to the Board of Directors by the Parent's
common stockholders after his or her nomination for election as a new director
is approved by a vote of at least two-thirds of the Incumbent Board, provided,
however, that no individual shall be considered a member of the Incumbent Board
if such individual initially assumes office as a result of either an actual or
threatened "election contest" (as described in Rule 14A-11 of the SEC
promulgated under the Securities Exchange Act) or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board of Directors, including an individual elected by reason of any agreement
intended to avoid or settle any election contest or proxy contest.

         "Charter Documents" means, with respect to any Credit Party, its
Articles or Certificate of Incorporation, Articles of Organization or other
similar publicly-filed organizational documents, and its bylaws, partnership
agreement, operating agreement and other similar internal governance documents,
as the same may be amended or modified from time to time (subject to the terms
of this Agreement).

         "Cimarex" means Cimarex Energy Co., a Delaware corporation, formerly
known as Helmerich & Payne Exploration and Production Co.

         "Closing Date" means the time and date, as specified in Section 5.1, on
which the initial Extensions of Credit are made hereunder.

         "Commitment Period" means the period from and including the Closing
Date to but not including the earlier of (i) the Revolving Commitment
Termination Date, or (ii) the date on

                                       4
<PAGE>

which the Revolving Commitments terminate in accordance with the provisions of
this Agreement.

         "Commitments" means any of the Revolving Commitments, the LOC
Commitments or the Swingline Commitments.

         "Committed Amount" means any of the Revolving Committed Amount, the LOC
Committed Amount or the Swingline Committed Amount, as applicable.

         "Consolidated Debt to Capitalization Ratio" means, for the Consolidated
Group as of the last day of each fiscal quarter, the ratio of (i) Consolidated
Total Funded Debt on such day, minus the aggregate amount of any Funded Debt
incurred as the direct result of Forward Sale Contracts relating to securities
held in the Investment Portfolio, as long as such Funded Debt is fully secured
by Marketable Securities, to (ii) Consolidated Total Capitalization on such day.

         "Consolidated Debt to EBITDA Ratio" means, for the Consolidated Group
as of the last day of each fiscal quarter, the ratio of (i) Consolidated Total
Funded Debt on such day, minus the sum of (A) the aggregate amount of any Funded
Debt incurred as the direct result of Forward Sale Contracts relating to
securities held in the Investment Portfolio, as long as such Funded Debt is
fully secured by Marketable Securities, and (B) an amount equal to the after-tax
fair market value of the cash, cash equivalents and Marketable Securities held
in the Investment Portfolio (excluding any securities which are subject to a
Forward Sale Contract or which secure any margin loan, Forward Sale Contract or
other Indebtedness), to (ii) Consolidated EBITDA for the period of four
consecutive fiscal quarters ending as of such day. In no event, however, shall
the amount determined under clause (i) be less than zero.

         "Consolidated EBITDA" means, for any period for the Consolidated Group,
the sum of (i) net income (or loss) determined on a consolidated basis in
accordance with GAAP, plus (ii) to the extent deducted in determining
consolidated net income, (A) all interest expense (net of interest income),
including the amortization of debt discount and premium, and the interest
component under Capital Leases, (B) income taxes, (C) depreciation and
amortization, (D) non-recurring, non-cash charges and adjustments, in either
case related to impairment of long-lived assets, and (E) other non-cash
extraordinary items, in each case determined on a consolidated basis in
accordance with GAAP, minus (iii) to the extent included in determining
consolidated net income, non-recurring gains (including gains on the sale of
Marketable Securities), in each case determined on a consolidated basis in
accordance with GAAP; provided, however, that Consolidated EBITDA shall exclude
any EBITDA attributable to or arising from the oil and gas exploration and
production business of the Consolidated Group.

         "Consolidated Group" means the Parent and its Subsidiaries.

         "Consolidated Tangible Net Worth" means, as of any date, consolidated
shareholders' equity or net worth of the Consolidated Group, as determined in
accordance with GAAP, minus intangible assets of the Consolidated Group, as
determined in accordance with GAAP, including (i) deferred charges, (ii) the
amount of any write-up in the book value of any assets reflected on

                                       5
<PAGE>

any balance sheet resulting from revaluation thereof or any write-up in excess
of the cost of such assets acquired (excluding Marketable Securities), and (iii)
the aggregate of all amounts reflected on the assets side of any such balance
sheet for franchises, licenses, permits, patents, patent applications,
copyrights, trademarks, trade names, goodwill, experimental or organizational
expenses and other like intangibles.

         "Consolidated Total Capitalization" means, as of any date, the sum of
Consolidated Total Funded Debt and Consolidated Tangible Net Worth, each
calculated at such time.

         "Consolidated Total Funded Debt" means, as of any date, the aggregate
Funded Debt of the Consolidated Group determined on a consolidated basis in
accordance with GAAP.

         "Contingent Debt" means, with respect to any Person, without
duplication, any contingent liabilities, obligations or indebtedness of such
Person (other than endorsements in the ordinary course of business of negotiable
instruments for deposit or collection), including (i) any obligations or similar
undertakings to guarantee any Indebtedness of any other Person in any manner,
whether direct or indirect, and including any obligation to purchase any such
Indebtedness or any Property constituting security therefor, to advance or
provide funds or other support for the payment or purchase of any such
Indebtedness or to maintain working capital, solvency or other balance sheet
condition of such other Person (including keep well agreements, maintenance
agreements, comfort letters or similar agreements or arrangements) for the
benefit of any holder of Indebtedness of such other Person, to lease or purchase
Property, securities or services primarily for the purpose of assuring the
holder of such Indebtedness, or otherwise to assure or hold harmless the holder
of such Indebtedness against loss in respect thereof, (ii) obligations to
indemnify other Persons against liability or loss, to the extent not arising in
the ordinary course of business, and (iii) warranty obligations and other
contractually assumed obligations, to the extent not arising in the ordinary
course of business.

         "Contractual Obligation" means, as to any Person, any provision of any
security issued or guaranteed by such Person or of any material agreement,
instrument or undertaking to which such Person is a party or by which it or any
of its Property is bound.

         "Credit Documents" means a collective reference to this Agreement, the
Notes, the Subsidiary Guaranty, each Subsidiary Guaranty Joinder Agreement, the
LOC Documents, the Administrative Agent Fee Letter, the Fee Letter, and all
other related agreements and documents issued or delivered hereunder or
thereunder or pursuant hereto or thereto (in each case as the same may be
amended, modified, restated, supplemented, extended, renewed or replaced from
time to time), and "Credit Document" means any one of them.

         "Credit Parties" means, collectively, the Borrower, the Parent and the
Material Subsidiaries, and "Credit Party" means any one of them.

         "Default" means any event, act or circumstance which, with the giving
of notice or the lapse of time, or both, would constitute an Event of Default.

                                       6
<PAGE>

         "EBITDA" means, for any period and for any member of the Consolidated
Group, the sum of (i) its net income (or loss) determined in accordance with
GAAP, plus (ii) to the extent deducted in determining such net income, (A)
interest expense (net of interest income), including the amortization of debt
discount and premium, and the interest component under Capital Leases, in each
case determined in accordance with GAAP, (B) income taxes, (C) depreciation and
amortization, (D) non-recurring, non-cash charges and adjustments, in either
case related to impairment of long-lived assets, and (E) other non-cash
extraordinary items, minus (iii) to the extent included in determining net
income, non-recurring gains (including gains on the sale of Marketable
Securities), in each case determined in accordance with GAAP.

         "Eligible Assignee" means (i) a Lender, (ii) an Affiliate of a Lender
or any fund that makes purchases, holds or invests in bank loans or similar
extensions of credit and is managed or advised by a Lender (or an Affiliate of a
Lender) or an investment advisor (or an Affiliate of an investment advisor) to a
Lender, or (iii) any other Person approved by the Administrative Agent and the
Borrower (such approval by the Administrative Agent or the Borrower not to be
unreasonably withheld or delayed and such approval to be deemed given by the
Borrower if no objection is received by the assigning Lender and the
Administrative Agent from the Borrower within five Business Days after notice of
such proposed assignment has been provided by the assigning Lender to the
Borrower), unless an Event of Default has occurred and is continuing at the time
any assignment is effected in accordance with Section 12.3, in which case no
approval from the Borrower or the Administrative Agent shall be required;
provided, however, that neither the Borrower nor an Affiliate of the Borrower
shall qualify as an Eligible Assignee.

         "Environmental Law" means any law, statute, rule, regulation, code or
ordinance of any Governmental Authority and any order, decree, judgment,
injunction, notice or binding agreement issued, promulgated or entered into by
any Governmental Authority, relating in any way to (i) the environment, (ii) the
preservation or reclamation of natural resources, (iii) emissions, discharges,
releases or threatened releases of Hazardous Materials into the environment,
including ambient air, surface water, ground water or land, (iii) the
manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of Hazardous Materials, (iv) the health effects of
Hazardous Materials, or (v) health, industrial hygiene, environmental conditions
or safety matters.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended, and any successor statute thereto, as interpreted by the rules and
regulations thereunder, all as the same may be in effect from time to time.

         "ERISA Affiliate" means an entity which, at the relevant time, is under
common control with any member of the Consolidated Group within the meaning of
Section 4001(a)(14) of ERISA, or is a member of a group which includes any
member of the Consolidated Group and which is treated as a single employer under
Section 414(b) or (c) of the IRC.

         "ERISA Event" means (i) with respect to any Single Employer Plan or
Multiple Employer Plan, the occurrence of a Reportable Event or the substantial
cessation of operations (within the meaning of Section 4062(e) of ERISA), (ii)
the withdrawal by any member of the Consolidated

                                       7
<PAGE>

Group or any ERISA Affiliate from a Multiple Employer Plan during a plan year in
which it was a substantial employer (as such term is defined in Section
4001(a)(2) of ERISA), or the termination of a Multiple Employer Plan, (iii) the
distribution of a notice of intent to terminate or the actual termination of a
Plan pursuant to Section 4041(a)(2) or 4041A of ERISA, (iv) the institution of
proceedings to terminate or the actual termination of a Plan by the PBGC under
Section 4042 of ERISA, (v) any event or condition which could reasonably
constitute grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Plan, (vi) the complete or partial
withdrawal of any member of the Consolidated Group or any ERISA Affiliate from a
Multiemployer Plan, (vii) the conditions for imposition of a lien under Section
302(f) of ERISA exist with respect to any Single Employer Plan or Multiple
Employer Plan, or (viii) the adoption of an amendment to any Plan requiring the
provision of security to such Plan pursuant to Section 307 of ERISA.

         "Eurodollar Reserve Requirement" means, at any time, the maximum rate
at which reserves (including any marginal, special, supplemental, or emergency
reserves) are required to be maintained under regulations issued from time to
time by the Board of Governors of the Federal Reserve System (or any successor)
by member banks of the Federal Reserve System against "Eurocurrency liabilities"
(as such term is used in Regulation D). Without limiting the effect of the
foregoing, the Eurodollar Reserve Requirement shall reflect any other reserves
required to be maintained by such member banks with respect to (i) any category
of liabilities which includes deposits by reference to which the Adjusted LIBOR
Rate is to be determined, or (ii) any category of extensions of credit or other
assets which include LIBOR Rate Loans. The Adjusted LIBOR Rate shall be adjusted
automatically on and as of the effective date of any change in the Eurodollar
Reserve Requirement.

         "Event of Default" has the meaning assigned to such term in Section
9.1.

         "Executive Officer" of any Person means the chief executive officer,
chief operating officer, president, vice president, chief financial officer or
treasurer of such Person.

         "Extension of Credit" means, as to any Lender, the making of, or
participation in, a Loan by such Lender (including continuations and conversions
thereof other than a conversion of a LIBOR Rate Loan into a Prime Rate Loan) or
the issuance or extension of, or participation in, a Letter of Credit.

         "Facility" means the senior credit facility established by the Lenders
under Article II.

         "Facility Maturity Date" means June 30, 2005, or such later date to
which the Facility Maturity Date may be extended from time to time pursuant to
Section 2.5(c).

         "Federal Funds Rate" means, for any day, the rate per annum (rounded
upwards, if necessary, to the nearest 1/100 of 1%) equal to the weighted average
of the rates on 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 such day is not a Business Day, the

                                       8
<PAGE>

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 no such rate is so published on such next succeeding Business Day,
the Federal Funds Rate for such day shall be the average rate charged to the
Administrative Agent (in its individual capacity) on such day on such
transactions as determined by the Administrative Agent.

         "Fee Letter" means that certain letter agreement, dated as of the date
hereof, between the Administrative Agent (on behalf of the Lenders) and the
Borrower, as amended, modified, restated or supplemented from time to time.

         "Fees" means all fees payable pursuant to Section 3.2.

         "Forward Sale Contract" means a prepaid forward sale agreement in which
the Borrower receives an up-front payment in exchange for a commitment to
deliver securities in the future, with the number of shares to be delivered
varying with the share price at maturity.

         "Funded Debt" means, with respect to any Person, without duplication,
(i) all obligations of such Person for borrowed money, (ii) all obligations of
such Person evidenced by bonds, debentures, notes or similar instruments, or
upon which interest payments are customarily made, (iii) all purchase money
Indebtedness (including for purposes hereof, indebtedness and obligations in
respect of conditional sale or title retention arrangements and obligations in
respect of the deferred purchase price of property or services) of such Person,
including the principal portion of all obligations of such Person under Capital
Leases, (iv) all Contingent Debt of such Person with respect to Funded Debt of
another Person, (v) the maximum available amount of all standby letters of
credit or acceptances issued or created for the account of such Person, (vi) all
Funded Debt of another Person secured by a Lien on any Property of such Person,
whether or not such Funded Debt has been assumed, (vii) the principal balance
outstanding under Synthetic Leases, and (viii) the Funded Debt of any
partnership or joint venture in which such Person is a general partner or joint
venturer, but only to the extent to which there is recourse to such Person for
the payment of such Funded Debt.

         "GAAP" means generally accepted accounting principles in the United
States applied on a consistent basis and subject to the terms of Section 1.3.

         "Governmental Authority" means any federal, state, local or foreign
court or governmental agency, authority, instrumentality or regulatory body.

         "Guarantors" means the Parent and each of the current or future
Material Subsidiaries.

         "Hazardous Materials" means all explosive or radioactive substances or
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos, or asbestos-containing
materials, polychorinated biphenyls, radon gas, infectious or medical waste and
all other substances or wastes of any nature regulated pursuant to any
Environmental Law as hazardous, toxic, a pollutant or a contaminant.

                                       9
<PAGE>

         "Hedging Agreement" means any interest rate protection agreement,
including an interest rate swap, cap or collar agreement or similar arrangement,
foreign currency exchange rate protection agreement, commodity price protection
or other interest rate, currency exchange rate or commodity price hedging
agreement.

         "IRC" means the Internal Revenue Code of 1986, as amended, and any
successor statute thereto, as interpreted by the rules and regulations issued
thereunder, in each case as in effect from time to time.

         "Indebtedness" means, with respect to any Person, without duplication,
(i) all obligations of such Person for borrowed money, (ii) all obligations of
such Person evidenced by bonds, debentures, notes or similar instruments, or
upon which interest payments are customarily made, (iii) all obligations of such
Person under conditional sale or other title retention agreements relating to
any Properties purchased by such Person (other than customary reservations or
retentions of title under agreements with suppliers entered into in the ordinary
course of business), (iv) all obligations of such Person issued or assumed as
the deferred purchase price of Property or services purchased by such Person
(other than trade debt incurred in the ordinary course of business and due
within six months of the incurrence thereof) which would appear as liabilities
on a balance sheet of such Person, (v) all obligations of such Person under
take-or-pay or similar arrangements or under commodities agreements, (vi) all
Indebtedness of others secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien on,
or payable out of the proceeds of production from, Property owned or acquired by
such Person, whether or not the obligations secured thereby have been assumed,
(vii) all Contingent Debt of such Person with respect to Indebtedness of another
Person, (viii) the principal portion of all obligations of such Person under
Capital Leases, (ix) all obligations of such Person under Hedging Agreements,
(x) the maximum amount of all standby letters of credit issued or bankers'
acceptances facilities created for the account of such Person and, without
duplication, all drafts drawn thereunder (to the extent unreimbursed), (xi) all
preferred Capital Stock issued by such Person and which by the terms thereof
could be (at the request of the holders thereof or otherwise) subject to
mandatory sinking fund payments, repurchase, redemption or other acceleration
any time during the period ending one year after the term of the Agreement,
(xii) the principal portion of all obligations of such Person under Synthetic
Leases, and (xiii) the Indebtedness of any partnership or unincorporated joint
venture in which such Person is a general partner or a joint venturer, but only
to the extent to which there is recourse to such Person for the payment of such
Indebtedness.

         "Interest Payment Date" means (i) as to any Prime Rate Loan, the last
day of each March, June, September and December, beginning September 30, 2002,
and the Facility Maturity Date, as applicable, and (ii) as to any LIBOR Rate
Loan, the last day of each Interest Period for such Loan, the date of repayment
of principal of such Loan and the Facility Maturity Date, as applicable.

         "Interest Period" means, as to any LIBOR Rate Loan, a period of 30, 60
or 90 days' duration, as the Borrower may elect, commencing in each case on the
date of the borrowing (including conversions, extensions and renewals);
provided, however, (A) if any Interest Period

                                       10
<PAGE>

would end on a day which is not a Business Day, such Interest Period shall be
extended to the next succeeding Business Day (except that in the case of LIBOR
Rate Loans where the next succeeding Business Day falls in the next succeeding
calendar month, then on the next preceding Business Day), (B) no Interest Period
shall extend beyond the Facility Maturity Date, and (C) in the case of LIBOR
Rate Loans, where an Interest Period begins on a day for which there is no
numerically corresponding day in the calendar month in which the Interest Period
is to end, such Interest Period shall end on the last day of such calendar
month.

         "Investment Portfolio" means the Marketable Securities and cash or cash
equivalents maintained by the Credit Parties.

         "Issuing Lender" means Bank of Oklahoma.

         "Issuing Lender Fees" has the meaning assigned to such term in Section
3.2(b)(ii).

         "Lenders" means each of the Persons identified as a "Lender" on the
signature pages of this Agreement, and their respective successors and permitted
assigns. Unless the context otherwise expressly requires, the term includes the
Issuing Lender and the Swingline Lender.

         "Letter of Credit" means any standby letter of credit issued by the
Issuing Lender for the account of the Borrower in accordance with the terms of
Section 2.1(b).

         "Letter of Credit Fee" has the meaning assigned to such term in Section
3.5(b)(i).

         "LIBOR Rate" means, with respect to any LIBOR Rate Loan for any
Interest Period therefor, the rate per annum (rounded upwards, if necessary, to
the nearest 1/100 of 1%) equal to the "London Interbank Offered Rate" quoted as
the British Bankers' Association Interest Settlement Rate in U.S. Dollars at
approximately 11:00 a.m. (London time) on the Business Day prior to the first
day of such Interest Period for a term comparable to such Interest Period, as
shown on the LIBOR01 page of the Reuters Information Service; provided, however,
if more than one rate is specified on such LIBOR01 Page, the applicable rate
shall be the arithmetic mean of all such rates (rounded upwards, if necessary,
to the nearest 1/100 of 1%). If the Reuters Information Service shall cease to
publish such rate, the Administrative Agent shall determine such rate as the
average of quotations for three (3) major New York money center banks of whom
the Administrative Agent shall inquire as the "London Interbank Offered Rate"
for deposits in U.S. Dollars at approximately 11:00 a.m. (London time) on the
Business Day prior to the first day of such Interest Period for a term
comparable to such Interest Period.

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

         "License" means any license, permit, certificate, consent, franchise,
concession, authorization, approval, filing, registration, notification or other
grant of authority from or with any Governmental Authority or other Person
obtained or required to be obtained from any Gover-

                                       11
<PAGE>

nmental Authority in connection with the management or operation of the
business, or the ownership, lease, license or use of any Property, of any member
of the Consolidated Group.

         "Lien" means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, security interest, encumbrance, lien (statutory or otherwise),
preference, priority or charge of any kind (including any agreement to give any
of the foregoing, any conditional sale or other title retention agreement, any
financing or similar statement or notice filed under the UCC or other similar
recording or notice statute, and any lease in the nature thereof).

         "Loan" or "Loans" means the Revolving Loans, the Swingline Loans or the
Term Loans, and the Prime Rate Loans and LIBOR Rate Loans comprising such Loans.

         "LOC Commitment" means the commitment of the Issuing Lender to issue
Letters of Credit in an aggregate face amount at any time outstanding (together
with the amounts of any unreimbursed drawings thereon) of up to the LOC
Committed Amount.

         "LOC Committed Amount" means the sum of $25,000,000.

         "LOC Documents" means, with respect to any Letter of Credit, such
Letter of Credit, any amendments thereto, any documents delivered in connection
therewith, any application therefor, and any agreements, instruments, guarantees
or other documents (whether general in application or applicable only to such
Letter of Credit) governing or providing for the rights and obligations of the
parties concerned or at risk.

         "LOC Obligations" means, at any time, the sum of (i) the maximum amount
which is, or at any time thereafter may become, available to be drawn under
Letters of Credit then outstanding, assuming compliance with all requirements
for drawings referred to in such Letters of Credit plus (ii) the aggregate
amount of all drawings under Letters of Credit honored by the Issuing Lender but
not theretofore reimbursed.

         "Marketable Securities" means readily marketable publicly-traded
securities, including any stock or other equity security publicly-traded on the
New York Stock Exchange, the American Stock Exchange or the National Association
of Securities Dealers Automated Quotation System (NASDAQ) and, if approved by
the Administrative Agent, any other stock traded on a recognized
over-the-counter market.

         "Material Adverse Effect" means a material adverse effect on or
material impairment of (i) the validity or enforceability of any Credit Document
or the rights, benefits or remedies of the Administrative Agent or the Lenders
under any Credit Document, (ii) the condition (financial or otherwise),
operations, business, assets, liabilities or prospects of the Consolidated Group
taken as a whole, or (iii) the ability of the Credit Parties to perform or
fulfill their obligations under the Credit Documents.

         "Material Subsidiary" means each Subsidiary of the Borrower listed on
Schedule 1.1 and each other Subsidiary (whether now existing or hereafter
acquired or formed) of the Parent

                                       12
<PAGE>

whose net assets comprise (or on a pro forma basis would comprise) more than 5%
of the Consolidated Tangible Net Worth of the Consolidated Group or whose EBITDA
for either of the two most recent fiscal years account (or on a pro forma basis
would account) for more than 5% of Consolidated EBITDA; provided, however, that
(i) Helmerich & Payne de Venezuela, C.A. will not be considered a Material
Subsidiary unless and until such time as its net assets comprise more than 10%
of the Consolidated Tangible Net Worth of the Consolidated Group or its EBITDA
for either of the two most recent fiscal years account for more than 10% of
Consolidated EBITDA, and (ii) no Subsidiary now existing or hereafter formed in
connection with the Spinoff/Merger (including Cimarex) or any other disposition
permitted by Section 8.5(i) shall constitute a Material Subsidiary for purposes
of this Agreement so long as such Subsidiary has no material Properties other
than those assets associated with the oil and gas exploration and production
business of the Consolidated Group.

         "Medium Term Notes" means the $200,000,000 aggregate principal amount
of unsecured medium term Senior Notes to be issued and sold by the Borrower
substantially on the terms and conditions set forth in the Note Purchase
Agreement (draft dated June 26, 2002) relating thereto, a copy of which has been
provided to the Administrative Agent (and furnished by the Administrative Agent
to the Lenders).

         "Multiemployer Plan" means any Plan that is a "multiemployer plan" as
defined in Section 3(37) or 4001(a)(3) of ERISA.

         "Multiple Employer Plan" means a Plan (other than a Multiemployer Plan)
which any member of the Consolidated Group or any ERISA Affiliate and at least
one employer other than the members of the Consolidated Group or any ERISA
Affiliate are contributing sponsors.

         "Non-Use Fee" has the meaning assigned to such term in Section 3.2(a).

         "Notes" means the promissory notes of the Borrower in favor of each of
the Lenders (or nominees thereof) evidencing the Loans, each in substantially
the form attached as Exhibit "A" (with appropriate insertions) or, in the case
of the Swingline Loans, Exhibit "A-1," as such promissory notes may be amended,
modified, supplemented, extended, renewed or replaced from time to time, and
"Note" means any of the Notes.

         "Notice of Borrowing" means a written request for a borrowing, in
substantially the form of Exhibit "C."

         "Notice of Continuation/Conversion" means a written notice of
continuation or conversion, in substantially the form of Exhibit "E."

         "Notice of Request for Letter of Credit" means a written request for
the issuance or extension of a Letter of Credit, in substantially the form of
Exhibit "D."

         "Obligations" means, collectively, the Revolving Loans, the Swingline
Loans, the LOC Obligations, and the Term Loans, including principal, interest,
fees, indemnities and other

                                       13
<PAGE>

amounts payable under the Credit Documents, and whether or not allowed as a
claim in any bankruptcy proceeding.

         "Operating Lease" means any lease which is not a Capital Lease.

         "Other Taxes" has the meaning assigned to such term in Section 4.6.

         "Participation Interest" means the purchase by a Lender of a
participation interest in LOC Obligations as provided in Section 2.6(a), in
Swingline Loans as provided in Section 2.7 and in Loans as provided in Section
3.5.

         "PBGC" means the Pension Benefit Guaranty Corporation established
pursuant to Subtitle A of Title IV of ERISA and any successor thereof.

         "Percentage" means, with respect to each Lender and subject to any
adjustments provided for in this Agreement, (i) until and including the
Revolving Commitment Termination Date, such Lender's Revolving Commitment
Percentage, and (ii) at any time after the Revolving Commitment Termination
Date, the percentage obtained by dividing such Lender's Term Loan outstanding at
such time by the aggregate amount of all Term Loans outstanding at such time.

         "Permitted Liens" means Liens permitted under Section 8.2.

         "Person" means any individual, partnership, joint venture, firm,
corporation, limited liability company, association, trust or other enterprise
(whether or not incorporated) or any Governmental Authority.

         "Plan" means any employee benefit plan (as defined in Section 3(3) of
ERISA) which is covered by ERISA and with respect to which any member of the
Consolidated Group or any ERISA Affiliate is (or, if such plan were terminated
at such time, would under Section 4069 of ERISA be deemed to be) an "employer"
within the meaning of Section 3(5) of ERISA.

         "Prime Rate" means the national "prime rate," as reported in the "Money
Rates Section" of The Wall Street Journal (Southwest Edition), changing as of
the effective date of each change in such rate. In the event such rate is no
longer published as provided herein, the Administrative Agent shall designate a
comparable index rate as the "Prime Rate" and notify the Borrower and the
Lenders of such designation.

         "Prime Rate Loan" means any Loan bearing interest at a rate determined
by reference to the Prime Rate.

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

                                       14
<PAGE>

         "Rate Determination Date" means the date that is five Business Days
after the date by which the Required Financial Information is required to be
delivered in accordance with the provisions of Section 7.1(a) or Section 7.1(b),
as applicable.

         "Regulation D, O, T, U, or X" means Regulation D, O T, U or X,
respectively, of the Board of Governors of the Federal Reserve System as from
time to time in effect and any successor to all or a portion thereof.

         "Reportable Event" means any of the events set forth in Section 4043(c)
of ERISA, other than those events as to which the notice requirement has been
waived by regulation.

         "Required Financial Information" means the annual and quarterly
Compliance Certificates and related financial statements and information
required by the provisions of Sections 7.1(a), (b) and (c).

         "Required Lenders" means, at any time, Lenders having more than 66.6%
of the aggregate Commitments or, if the Commitments have been terminated,
Lenders having more than 66.6% of the aggregate principal amount of the
Obligations outstanding (taking into account in each case Participation
Interests or obligation to participate therein); provided that, in making a
determination of Required Lenders, there shall be excluded the Commitments of,
and outstanding principal amount of Obligations (taking into account
Participation Interests therein) owing to, any Lender that, at the time in
question, (i) has failed to make a Loan or purchase a Participation Interest
required pursuant to the terms of this Agreement within one Business Day of when
due, (ii) other than as set forth in subdivision (i) above, has failed to pay to
the Administrative Agent or any Lender an amount owed by such Lender pursuant to
the terms of this Agreement within one Business Day of when due, unless such
amount is subject to a good faith dispute, or (iii) has been deemed insolvent or
has become subject to a bankruptcy or insolvency proceeding or with respect to
which (or with respect to any of the assets of which) a receiver, trustee or
similar official has been appointed.

         "Requirement of Law" means, as to any Person, any requirement or
provision of the Charter Documents of such Person, or of any law, statute, rule,
regulation, code or ordinance, or of any order, decree, judgment, injunction or
other determination of an arbitrator or a court or other Governmental Authority,
in each case applicable to or binding upon such Person or to which any of its
material Properties is subject.

         "Revolving Commitment" means, with respect to each Lender, the
commitment of such Lender to make Revolving Loans in an aggregate principal
amount at any time outstanding of up to such Lender's Revolving Committed
Amount, as such amount may be reduced from time to time in accordance with the
provisions hereof.

         "Revolving Commitment Percentage" means, for each Lender, a fraction
(expressed as a percentage), the numerator of which is the Revolving Committed
Amount of such Lender at such time and the denominator of which is the Aggregate
Revolving Committed Amount at such time.

                                       15
<PAGE>

The initial Revolving Commitment Percentages are set out on the signature pages
to this Agreement.

         "Revolving Commitment Termination Date" means the date which is 364
days following the Closing Date, or such later date to which the Revolving
Commitment Termination Date may be extended from time to time pursuant to
Section 2.5(c).

         "Revolving Committed Amount" means the amount of each Lender's
Revolving Commitment as set out on the signature pages to this Agreement.

         "Revolving Loans" has the meaning assigned to such term in Section
2.1(a).

         "Revolving Obligations" means, collectively, the Revolving Loans, the
Swingline Loans and the LOC Obligations.

         "Sale/Leaseback Transaction" means any arrangement pursuant to which
any member of the Consolidated Group, directly or indirectly, becomes liable as
lessee, guarantor or other surety with respect to any lease, whether an
Operating Lease or a Capital Lease, of any Property (i) which such member of the
Consolidated Group has sold or transferred (or is to sell or transfer) to, or
arranged the purchase by, a Person which is not a member of the Consolidated
Group or (ii) which such member of the Consolidated Group intends to use for
substantially the same purpose as any other Property which has been sold or
transferred (or is to be sold or transferred) by such member of the Consolidated
Group to another Person which is not a member of the Consolidated Group in
connection with such lease.

         "SEC" means the Securities and Exchange Commission, or any agency which
succeeds to its functions.

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

         "Single Employer Plan" means any Plan which is covered by Title IV of
ERISA, but which is not a Multiemployer Plan or a Multiple Employer Plan.

         "Spinoff/Merger" means the proposed series of transactions (i) reported
by the Parent in its Current Report on Form 8-K dated February 25, 2002, and
filed with the SEC pursuant to which (A) the Parent will transfer to Cimarex
certain assets primarily related to the oil and gas exploration, production,
marketing and sales operations of the Parent, (B) Cimarex will assume certain
liabilities of the Parent, and (C) the Parent will distribute to its
stockholders approximately 0.53 shares of common stock of Cimarex for each share
of common stock of the Parent, and (ii) contemplated by (A) the Agreement and
Plan of Merger dated as of February 3, 2002, by and among the Parent, Cimarex,
Mountain Acquisition Co. and Key Production Company, Inc., (B) the Distribution
Agreement by and between the Parent and Cimarex, and (C) any agreement
referenced in the agreements referred to in the foregoing Agreement and Plan of
Merger and Distribution Agreement.

                                       16
<PAGE>

         "Subsidiary" means, as to any Person at any time, (i) any corporation
more than 50% of whose Capital Stock of any class or classes having by the terms
thereof ordinary voting power to elect a majority of the directors of such
corporation (irrespective of whether or not at such time, any class or classes
of such corporation shall have or might have voting power by reason of the
happening of any contingency) is at such time owned by such Person directly or
indirectly through Subsidiaries, and (ii) any partnership, association, joint
venture or other entity of which such Person directly or indirectly through
Subsidiaries owns at such time more than 50% of the Capital Stock; provided that
no Plan shall be considered to be a Subsidiary of the Parent or the Borrower.

         "Subsidiary Guaranty" means the Guaranty Agreement, substantially in
the form attached hereto as Exhibit "B," to be given by the Material
Subsidiaries in favor of the Lenders and the Administrative Agent with respect
to the obligations of the Borrower under the Credit Documents, as amended or
modified from time to time.

         "Subsidiary Guaranty Joinder Agreement" means the Joinder Agreement,
substantially in the form of Schedule 1 to the Subsidiary Guaranty, to be
executed and delivered by each new Material Subsidiary in accordance with the
provisions of Section 7.13.

         "Swingline Commitment" means the commitment of the Swingline Lender to
make Swingline Loans in an aggregate principal amount at any time outstanding up
to the Swingline Committed Amount and the commitment of the Lenders to purchase
participation interests in the Swingline Loans up to their respective Revolving
Commitment Percentage as provided in Section 2.1(c), as such amounts may be
reduced from time to time in accordance with the provisions hereof.

         "Swingline Committed Amount" means the sum of $10,000,000.

         "Swingline Lender" means Bank of Oklahoma.

         "Swingline Loan" means a swingline revolving loan made by the Swingline
Lender pursuant to the provisions of Section 2.1(c).

         "Synthetic Lease" means any synthetic lease, tax retention operating
lease, off-balance sheet loan or similar off-balance sheet financing product
where such transaction is considered borrowed money indebtedness for tax
purposes but is classified as an Operating Lease under GAAP.

         "Taxes" has the meaning assigned to such term in Section 4.6.

         "Term Loans" means the Term Loans into which the Revolving Loans
outstanding on the Revolving Commitment Termination Date shall be converted, as
provided in Section 2.1(d).

         "UCC" means the Uniform Commercial Code as in effect from time to time
in the State of Oklahoma or other applicable jurisdiction.

         "Voting Stock" means, with respect to any Person, Capital Stock issued
by such Person the holders of which are ordinarily, in the absence of
contingencies, entitled to vote for the election of

                                       17
<PAGE>

directors (or persons performing similar functions) of such Person, even though
the right so to vote has been suspended by the happening of such a contingency.

         1.2 Construction and Interpretation. For purposes of this Agreement,
the following rules of construction shall apply, unless elsewhere specifically
indicated to the contrary: (i) all terms defined herein in the singular shall
include the plural, as the context requires, and vice-versa; (ii) pronouns
stated in the neuter gender shall include the masculine, the feminine and the
neuter genders; (iii) for purposes of the computation of periods of time
hereunder, the word "from" means "from and including" and the words "to" and
"until" each mean "to but excluding"; (iv) the term "or" is not exclusive; (iv)
the term "including" (or any form thereof) shall not be limiting or exclusive;
(vi) references to article and sections are references to the respective
articles and sections of this Agreement, and references to exhibits and
schedules are references to the exhibits and schedules attached to this
Agreement; (vii) all references to this Agreement or any of the other Credit
Documents shall include any and all modifications, amendments or supplements
hereto or thereto and any and all renewals and extensions hereof or thereof; and
(viii) references to specific provisions or sections of statutes and other laws
(such as the Bankruptcy Code, ERISA and the IRC) shall be construed also to
refer to any successor provisions or sections.

         1.3 Accounting Terms. Except as otherwise expressly provided herein,
all accounting terms used herein shall be interpreted, and all financial
statements and certificates and reports as to financial matters required to be
delivered to the Lenders hereunder shall be prepared, in accordance with GAAP
applied on a consistent basis. All calculations made for the purposes of
determining compliance with this Agreement shall (except as otherwise expressly
provided herein) be made by application of GAAP applied on a basis consistent
with the most recent annual or quarterly financial statements delivered pursuant
to Section 7.1.

                                   ARTICLE II
                          TERMS OF THE CREDIT FACILITY

         2.1 Commitments.

                  (a) Revolving Commitments. During the Commitment Period, and
         subject to the terms and conditions of this Agreement, each Lender
         severally agrees to make revolving loans (the "Revolving Loans") to the
         Borrower from time to time in amounts not to exceed at any time such
         Lender's Revolving Commitment, minus its Revolving Commitment
         Percentage of the sum of (x) all LOC Obligations then outstanding and
         (y) the aggregate principal amount of all Swingline Loans then
         outstanding. At no time shall the aggregate principal amount of
         Revolving Loans outstanding hereunder, together with all other
         Revolving Obligations then outstanding, exceed the Aggregate Revolving
         Credit Commitment, and with regard to each Lender individually, such
         Lender's Revolving Commitment Percentage of the Revolving Loans and
         other Revolving Obligations at any time outstanding shall not exceed
         such Lender's Revolving Committed Amount. The Revolving Loans may
         consist of Prime Rate Loans or LIBOR Rate Loans, or a combination
         thereof, as the Borrower may from time to time request, and may be
         repaid

                                       18
<PAGE>

         and reborrowed in accordance with the provisions hereof. No Lender
         shall be responsible for any failure by any other Lender to perform its
         obligation to make any Revolving Loan hereunder nor shall the Revolving
         Commitment of any Lender be increased or decreased as a result of any
         such failure. The Revolving Commitments of the Lenders shall expire on
         the Revolving Commitment Termination Date.

                  (b) Letter of Credit Sublimit Commitment. During the
         Commitment Period, and subject to the terms and conditions of this
         Agreement and the LOC Documents, if any, the Issuing Lender shall
         issue, and the Lenders shall severally participate in, such Letters of
         Credit as the Borrower may request, in form acceptable to the Issuing
         Lender, for the purposes hereinafter set forth; provided that the
         aggregate amount of LOC Obligations shall not at any time exceed the
         LOC Committed Amount. The renewal or extension of any outstanding
         Letter of Credit shall, for purposes hereof, be treated in all respects
         the same as the issuance of a new Letter of Credit hereunder; provided
         that the Issuing Lender may renew or extend outstanding Letters of
         Credit (but shall not issue new Letters of Credit) after the expiration
         of the Commitment Period. Letters of Credit issued hereunder (including
         renewals and extensions) shall have an expiry date which in any event
         does not extend beyond the date which is five Business Days prior to
         the Facility Maturity Date.

                  (c) Swingline Sublimit Commitment. During the Commitment
         Period, and subject to the terms and conditions of this Agreement, the
         Swingline Lender agrees to make certain revolving loans (the "Swingline
         Loans") to the Borrower; provided that the aggregate principal amount
         of Swingline Loans at any time outstanding shall not exceed the
         Swingline Committed Amount. All Swingline Loans shall be Prime Rate
         Loans, and may be repaid and reborrowed in accordance with the
         provisions hereof.

                  (d) Term Loan Commitment. On the Revolving Commitment
         Termination Date, and subject to the terms and conditions of this
         Agreement and provided that no Event of Default has occurred and is
         then continuing, each Lender severally agrees, automatically and
         without any request from the Borrower, to make a term loan (each a
         "Term Loan," and collectively, the "Term Loans"), in the principal
         amount equal to its Revolving Commitment Percentage of the aggregate
         Revolving Loans outstanding at the close of business on the Revolving
         Commitment Termination Date. The Term Loans may be comprised of Prime
         Rate Loans or LIBOR Rate Loans, or a combination thereof, as the
         Borrower may from time to time request. Amounts repaid on the Term
         Loans may not be reborrowed. Except as provided in Section 2.6(c), no
         borrowings may be requested under the Term Loans after the conversion
         of the Revolving Loans outstanding at the close of business on the
         Revolving Commitment Termination Date.

         2.2 Method of Borrowing; Use of Proceeds.

                  (a) Notice of Request for Extensions of Credit. The Borrower
         shall request an Extension of Credit as follows:

                                       19
<PAGE>

                           (i) Revolving Loans. In the case of a request for
                  Revolving Loans, by delivering a written Notice of Borrowing
                  (or by giving telephonic notice promptly confirmed by a Notice
                  of Borrowing in writing) to the Administrative Agent not later
                  than 11:00 a.m. (Tulsa, Oklahoma time) on the Business Day
                  prior to the date of the requested borrowing in the case of
                  Prime Rate Loans, and on the third Business Day prior to the
                  date of the requested borrowing in the case of LIBOR Rate
                  Loans. Each Notice of Borrowing shall be irrevocable and shall
                  specify (A) that a Revolving Loan is requested, (B) the date
                  of the requested borrowing (which shall be a Business Day),
                  (C) the aggregate principal amount to be borrowed, (D) whether
                  the borrowing is to be comprised of Prime Rate Loans, LIBOR
                  Rate Loans or a combination thereof (it being understood that
                  each Loan extended as a LIBOR Rate Loan shall be in the
                  minimum principal amount of $5,000,000 or in an integral
                  multiple of $500,000 in excess thereof), and (E) if LIBOR Rate
                  Loans are requested, the Interest Period(s) therefor. If the
                  Borrower shall fail to specify the type of loan requested, the
                  Borrower shall be deemed to have requested a Prime Rate Loan,
                  and if the Borrower shall fail to specify the applicable
                  Interest Period in the case of a request for a LIBOR Rate
                  Loan, the Borrower shall be deemed to have requested an
                  Interest Period of 30 days. The Administrative Agent shall
                  give notice to each Lender promptly upon receipt of each
                  Notice of Borrowing pursuant to this Section 2.2(a)(i), the
                  contents thereof and each such Lender's share of any borrowing
                  to be made pursuant thereto.

                           (ii) Letters of Credit. In the case of a request for
                  the issuance or extension of a Letter of Credit, by delivering
                  a Notice of Request for Letter of Credit to the Issuing
                  Lender, with a copy to the Administrative Agent, not later
                  than 11:00 a.m. (Tulsa, Oklahoma time) on the third Business
                  Day prior to the date of the requested issuance or extension
                  (or such shorter period as may be agreed by the Issuing
                  Lender). Each such request for issuance or extension of a
                  Letter of Credit shall be irrevocable and shall specify, among
                  other things, (A) that a Letter of Credit is requested, (B)
                  the date of the requested issuance or extension, (C) the type,
                  amount, expiry date and terms on which the Letter of Credit is
                  to be issued or extended, and (D) the beneficiary.

                           (iii) Swingline Loans. In the case of a request for a
                  Swingline Loan, by delivering a written Notice of Borrowing
                  (or by giving telephonic notice promptly confirmed by a Notice
                  of Borrowing in writing) to the Swingline Lender not later
                  than 11:00 a.m. (Tulsa, Oklahoma time) on the Business Day of
                  the requested borrowing. Each such request for borrowing shall
                  be irrevocable and shall specify (A) that a Swingline Loan is
                  requested, (B) the date of the requested borrowing (which
                  shall be a Business Day), (C) the aggregate principal amount
                  to be borrowed, and (D) the requested maturity. Each Swingline
                  Loan shall have a maturity date as the Borrower may request
                  and the Swingline Lender may agree, but in no event shall the
                  term of any Swingline Loan be longer than 10 days from the
                  date of borrowing.

                                       20
<PAGE>

                  (b) Minimum Amounts. Each request for a Revolving Loan shall
         be in the minimum principal amount of $5,000,000 (or the remaining
         Aggregate Revolving Committed Amount, if less than $5,000,000, but only
         if the request is for a Prime Rate Loan), or in an integral multiple of
         $500,000 in excess thereof. Each request for a Swingline Loan shall be
         in the minimum principal amount of $500,000 (or the remaining Aggregate
         Revolving Committed Amount, if less than $500,000), or in an integral
         multiple of $250,000 in excess thereof.

                  (c) Use of Proceeds. Proceeds of the Revolving Loans and
         Swingline Loans shall be used by the Borrower for working capital and
         general corporate purposes of the Consolidated Group, including capital
         expenditures. The proceeds of the initial Revolving Loan shall be used
         to repay the existing revolving loans, if any, made by Bank of Oklahoma
         to the Parent.

                  (d) Maximum Number of LIBOR Rate Loans. Not more than 10 LIBOR
         Rate Loans (whether as original borrowings or as continuations or
         conversions pursuant to Section 2.3) may be outstanding at any time.
         For purposes of this Section 2.2(d), a LIBOR Rate Loan may consist of
         an original borrowing and a continuation and/or conversion pursuant to
         Section 2.3 and may be considered a single LIBOR Rate Loan, provided
         that the borrowing and the continuation/conversion are made on the same
         day and have the same Interest Period.

         2.3 Continuation and Conversion. The Borrower shall have the option, on
any Business Day, to extend existing Loans into a subsequent permissible
Interest Period or to convert Loans into Loans of another interest rate type;
provided, however, that (i) except as provided in Section 4.3, LIBOR Rate Loans
may be converted into Prime Rate Loans or extended as LIBOR Rate Loans for new
Interest Periods only on the last day of the Interest Period applicable thereto,
(ii) without the consent of the Required Lenders, LIBOR Rate Loans may be
extended, and Prime Rate Loans may be converted into LIBOR Rate Loans, only if
the conditions precedent set forth in Section 5.3 are satisfied on the date of
continuation or conversion, and (iii) Loans converted into LIBOR Rate Loans
shall be in the minimum principal amount of $5,000,000 or in integral multiple
of $500,000 in excess thereof. Each such continuation or conversion shall be
effected by the Borrower by giving a Notice of Continuation/Conversion (or
telephonic notice promptly confirmed in writing) to Administrative Agent prior
to 11:00 a.m. (Tulsa, Oklahoma time) on the Business Day of, in the case of the
conversion of a LIBOR Rate Loan into a Prime Rate Loan, and on the third
Business Day prior to, in the case of the continuation of a LIBOR Rate Loan as,
or conversion of a Prime Rate Loan into, a LIBOR Rate Loan, the date of the
proposed continuation or conversion, specifying the date of the proposed
continuation or conversion, the Loans to be so continued or converted, the types
of Loans into which such Loans are to be converted and, if appropriate, the
applicable Interest Periods with respect thereto. If the Borrower shall fail to
specify the applicable Interest Period in the case of a request for continuation
of a LIBOR Rate Loan as, or conversion of a Prime Rate Loan into, a LIBOR Rate
Loan, the Borrower shall be deemed to have requested an Interest Period of 30
days. Each request for continuation or conversion shall be irrevocable and shall
constitute a representation and warranty by the Borrower of the matters
specified in

                                       21
<PAGE>

subsections (a), (b), (c) and (d) of Section 5.3. In the event the Borrower
fails to request continuation or conversion of any LIBOR Rate Loan in accordance
with this Section 2.3, or any such conversion or continuation is not permitted
or required by this Section, then such LIBOR Rate Loan shall be automatically
converted into a Prime Rate Loan at the end of the Interest Period applicable
thereto. The Administrative Agent shall give each Lender notice as promptly as
practicable of any such proposed extension or conversion affecting any Loan.

         2.4 Notes. The Loans from time to time outstanding shall be evidenced
by the Notes, which shall be made, executed and delivered by the Borrower
payable to the order of the respective Lenders on or before the Closing Date.

                                       22
<PAGE>

         2.5 Reduction, Termination and Extension of Revolving Commitments.

                  (a) Voluntary Reduction of Revolving Commitments. The
         Revolving Commitments may be terminated or permanently reduced in whole
         or in part upon three (3) Business Days' prior written notice to the
         Administrative Agent, provided that (i) after giving effect to any
         voluntary reduction, the aggregate amount of Revolving Obligations
         shall not exceed the Aggregate Revolving Committed Amount, as reduced,
         and (ii) partial reductions shall be in a minimum principal amount of
         $5,000,000 and in integral multiples of $1,000,000 in excess thereof.

                  (b) Termination of Revolving Commitments. The Revolving
         Commitments hereunder shall terminate on the Revolving Commitment
         Termination Date.

                  (c) Extension of Revolving Commitment Termination Date. By
         submitting a request for extension to the Administrative Agent (an
         "Extension Request") at least 60 days prior to the then-current
         Revolving Commitment Termination Date, the Borrower may request that
         the Lenders extend the Facility (and correspondingly, the Revolving
         Commitment Termination Date and the Facility Maturity Date) for an
         additional period of 364 days beyond the then-current Revolving
         Commitment Termination Date and Facility Maturity Date. The Lenders
         agree to consider each Extension Request, but no Extension Request
         shall be approved unless it is agreed to by all of the Lenders. The
         Administrative Agent shall give the Borrower notice of the Lenders'
         decision with respect to the Borrower's Extension Request not less than
         15 days prior to the then-current Revolving Commitment Termination
         Date; provided, however, that if the Administrative Agent fails to
         notify the Borrower of the Lenders' decision, the Extension Request
         will be deemed not to have been approved. In the event that the Lenders
         approve the Extension Request, (i) the Revolving Commitment Termination
         Date and the Facility Maturity Date shall each be extended for an
         additional period of 364 days, and (ii) the terms and provisions of
         this Agreement shall continue in full force and effect, except as may
         otherwise be agreed in writing by the Borrower, the Lenders and the
         Administrative Agent. Notwithstanding the foregoing, the Lenders shall
         not be obligated, and nothing contained in this Agreement shall be
         construed as obligating the Lenders, to agree or consent to any
         extension request, and any determination by the Lenders not to consent
         to any Extension Request shall be final.

         2.6 Additional Provisions Relating to Letters of Credit.

                  (a) Participation. Each Lender, with respect to the
         outstanding letters of credit identified on Schedule 2.6(a) (the
         "Existing Letters of Credit"), hereby purchases, without recourse to
         the Issuing Lender, a risk participation in such Existing Letters of
         Credit and the obligations arising thereunder, and with respect to
         Letters of Credit issued on or after the Closing Date, upon issuance of
         a Letter of Credit, shall be deemed to have purchased, without recourse
         to the Issuing Lender, a risk participation from the Issuing Lender in
         such Letter of Credit and the obligations arising thereunder, in each
         case in an amount equal to its pro rata share of the obligations under
         such Letter of Credit (based on the res-

                                       23
<PAGE>

         pective Percentages of the Lenders) and shall absolutely,
         unconditionally and irrevocably assume, as primary obligor and not as
         surety, and be obligated to pay to the Issuing Lender therefor and
         discharge when due, its pro rata share of the obligations arising under
         such Letter of Credit. Without limiting the scope and nature of each
         Lender's participation in any Letter of Credit, to the extent that the
         Issuing Lender has not been reimbursed as required hereunder or under
         any such Letter of Credit, each Lender shall pay to the Issuing Lender
         its pro rata share of such unreimbursed drawing in same day funds on
         the day of notification by the Issuing Lender of an unreimbursed
         drawing pursuant to the provisions of subsection (c) of this Section
         2.6. The obligation of each Lender to so reimburse the Issuing Lender
         shall be absolute and unconditional and shall not be affected by the
         occurrence of a Default, an Event of Default or any other occurrence or
         event. Any such reimbursement shall not relieve or otherwise impair the
         obligation of the Borrower to reimburse the Issuing Lender under any
         Letter of Credit, together with interest as hereinafter provided.

                  (b) Reimbursement. In the event of any drawing under any
         Letter of Credit, the Issuing Lender will promptly notify the Borrower.
         Unless the Borrower shall immediately notify the Issuing Lender that
         the Borrower intends to otherwise reimburse the Issuing Lender for such
         drawing, the Borrower shall be deemed to have requested that the
         Lenders make a Revolving Loan (or to increase the amount of their
         outstanding Term Loans) in the amount of the drawing as provided in
         subsection (c) hereof on the related Letter of Credit, the proceeds of
         which will be used to satisfy the related reimbursement obligations.
         The Borrower promises to reimburse the Issuing Lender on the day of
         drawing under any Letter of Credit (either with the proceeds of a Loan
         obtained hereunder or otherwise) in same day funds. If the Borrower
         shall fail to reimburse the Issuing Lender as provided hereinabove, the
         unreimbursed amount of such drawing shall bear interest at a per annum
         rate equal to the Prime Rate plus the sum of (i) the Applicable Margin
         and (ii) two percent (2%). The Borrower's reimbursement obligations
         hereunder shall be absolute and unconditional under all circumstances
         irrespective of any rights of setoff, counterclaim or defense to
         payment the Borrower may claim or have against the Issuing Lender, the
         Administrative Agent, the Lenders, the beneficiary of the Letter of
         Credit drawn upon or any other Person, including any defense based on
         any failure of the Borrower or any other Credit Party to receive
         consideration or the legality, validity, regularity or unenforceability
         of the Letter of Credit. The Issuing Lender will promptly notify the
         other Lenders of the amount of any unreimbursed drawing and each Lender
         shall promptly pay to the Administrative Agent for the account of the
         Issuing Lender in Dollars and in immediately available funds, the
         amount of such Lender's Percentage of such unreimbursed drawing. Such
         payment shall be made on the day such notice is received by such Lender
         from the Issuing Lender if such notice is received at or before 12:00
         noon (Tulsa, Oklahoma time); otherwise, such payment shall be made at
         or before 11:00 a.m. (Tulsa, Oklahoma time) on the Business Day next
         succeeding the day such notice is received. If such Lender does not pay
         such amount to the Issuing Lender in full upon such request, such
         Lender shall, on demand, pay to the Administrative Agent for the
         account of the Issuing Lender interest on the unpaid amount during the
         period from the date of such drawing until such Lender pays such amount
         to the Issuing Lender in full at a

                                       24
<PAGE>

         rate per annum equal to, if paid within two Business Days of the date
         that such Lender is required to make payments of such amount pursuant
         to the preceding sentence, the Federal Funds Rate and thereafter at a
         rate equal to the Prime Rate. Each Lender's obligation to make such
         payment to the Issuing Lender, and the right of the Issuing Lender to
         receive the same, shall be absolute and unconditional, shall not be
         affected by any circumstance whatsoever and without regard to the
         termination of this Agreement or the Commitments hereunder, the
         existence of a Default or Event of Default or the acceleration of the
         obligations of the Borrower hereunder and shall be made without any
         offset, abatement, withholding or reduction whatsoever. Simultaneously
         with the making of each such payment by a Lender to the Issuing Lender,
         such Lender shall, automatically and without any further action on the
         part of the Issuing Lender or such Lender, acquire a Participation
         Interest in the unreimbursed drawing in an amount equal to such payment
         (excluding the portion of such payment, if any, constituting interest
         owing to the Issuing Lender).

                  (c) Repayment with Revolving Loan or Term Loan Increase. On
         any day on which the Borrower shall have requested, or been deemed to
         have requested, a Revolving Loan advance or a Term Loan increase to
         reimburse a drawing under a Letter of Credit, the Administrative Agent
         shall give notice to the Lenders that a Revolving Loan or a Term Loan
         increase has been requested or deemed requested by the Borrower to be
         made in connection with a drawing under a Letter of Credit, in which
         case a Revolving Loan advance or Term Loan increase comprised of Prime
         Rate Loans (or LIBOR Rate Loans to the extent the Borrower has complied
         with the procedures of Section 2.2(a)(i) with respect thereto) shall be
         immediately made to the Borrower by all Lenders (notwithstanding any
         termination of the Commitments pursuant to Section 9.2) pro rata based
         on the respective Percentages of the Lenders (determined before giving
         effect to any termination of the Commitments pursuant to Section 9.2)
         and the proceeds thereof shall be paid directly to the Issuing Lender
         for application to the respective LOC Obligations. Each Lender hereby
         irrevocably agrees to make its pro rata share of each such Revolving
         Loan or Term Loan increase immediately upon any such request or deemed
         request in the amount, in the manner and on the date specified in the
         preceding sentence notwithstanding (i) the amount of such borrowing may
         not comply with the minimum amount for advances of Revolving Loans
         otherwise required hereunder, (ii) whether any conditions specified in
         Section 5.3 are then satisfied, (iii) whether a Default or an Event of
         Default then exists, (iv) failure for any such request or deemed
         request for Revolving Loan or Term Loan increase to be made by the time
         otherwise required hereunder, (v) whether the date of such borrowing is
         a date on which Revolving Loans are otherwise permitted to be made
         hereunder or (vi) any termination of the Commitments relating thereto
         immediately prior to or contemporaneously with such borrowing. In the
         event that any Revolving Loan or Term Loan increase cannot for any
         reason be made on the date otherwise required above (including as a
         result of the commencement of a proceeding under the Bankruptcy Code
         with respect to the Borrower or any Credit Party), then each such
         Lender hereby agrees that it shall forthwith purchase (as of the date
         such borrowing would otherwise have occurred, but adjusted for any
         payments received from the Borrower on or after such date and prior to
         such purchase)

                                       25
<PAGE>

         from the Issuing Lender such participation in the outstanding LOC
         Obligations as shall be necessary to cause each such Lender to share in
         such LOC Obligations ratably (based upon the respective Percentages of
         the Lenders (determined before giving effect to any termination of the
         Commitments pursuant to Section 9.2)), provided that in the event such
         payment is not made on the day of drawing, such Lender shall pay in
         addition to the Issuing Lender interest on the amount of its unfunded
         Participation Interest at a rate equal to, if paid within two Business
         Days of the date of drawing, the Federal Funds Rate, and thereafter at
         the Prime Rate.

                  (d) Terms of Letters of Credit. Each Letter of Credit shall be
         a standby letter of credit issued for the purpose stated in the
         applicable Notice of Request for Letter of Credit. Notwithstanding
         anything to the contrary set forth in this Agreement, including Section
         2.2(a)(ii) hereof, a Letter of Credit issued hereunder may contain a
         statement to the effect that such Letter of Credit is issued for the
         account of a Credit Party, provided that notwithstanding such
         statement, the Borrower shall be the actual account party for all
         purposes of this Agreement for such Letter of Credit and such statement
         shall not affect the Borrower's reimbursement obligations hereunder
         with respect to such Letter of Credit. The Issuing Lender may issue the
         Letters of Credit subject to The Uniform Customs and Practice for
         Documentary Credits, as published as of the date of issue by the
         International Chamber of Commerce.

                  (e) Indemnification; Nature of Issuing Lender's Duties. In
         addition to its other obligations under this Section 2.6, the Borrower
         hereby agrees to protect, indemnify, pay and save the Issuing Lender
         harmless from and against any and all claims, demands, liabilities,
         damages, losses, costs, charges and expenses (including reasonable
         attorneys' fees) that the Issuing Lender may incur or be subject to as
         a consequence, direct or indirect, of (A) the issuance of any Letter of
         Credit or (B) the failure of the Issuing Lender to honor a drawing
         under a Letter of Credit as a result of any act or omission, whether
         rightful or wrongful, of any Governmental Authority (all such acts or
         omissions, herein called "Government Acts"). As between the Borrower
         and the Issuing Lender, the Borrower shall assume all risks of the
         acts, omissions or misuse of any Letter of Credit by the beneficiary
         thereof. The Issuing Lender shall not be responsible: (A) for the form,
         validity, sufficiency, accuracy, genuineness or legal effect of any
         document submitted by any party in connection with the application for
         and issuance of any Letter of Credit, even if it should in fact prove
         to be in any or all respects invalid, insufficient, inaccurate,
         fraudulent or forged; (B) for the validity or sufficiency of any
         instrument transferring or assigning or purporting to transfer or
         assign any Letter of Credit or the rights or benefits thereunder or
         proceeds thereof, in whole or in part, that may prove to be invalid or
         ineffective for any reason; (C) for errors, omissions, interruptions or
         delays in transmission or delivery of any messages, by mail, cable,
         telegraph, telex or otherwise, whether or not they be in cipher; (D)
         for any loss or delay in the transmission or otherwise of any document
         required in order to make a drawing under a Letter of Credit or of the
         proceeds thereof; and (E) for any consequences arising from causes
         beyond the control of the Issuing Lender, including any Government
         Acts. None of the above shall affect, impair, or prevent the vesting of
         the Issuing Lender's rights or powers hereunder. In

                                       26
<PAGE>

         furtherance and extension and not in limitation of the specific
         provisions set forth in this subsection (e), any action taken or
         omitted by the Issuing Lender, under or in connection with any Letter
         of Credit or the related certificates, if taken or omitted in good
         faith, shall not put such Issuing Lender under any resulting liability
         to the Borrower or any other Credit Party. It is the intention of the
         parties that this Agreement shall be construed and applied to protect
         and indemnify the Issuing Lender against any and all risks involved in
         the issuance of the Letters of Credit, all of which risks are hereby
         assumed by the Borrower (on behalf of itself and each of the other
         Credit Parties), including any and all Government Acts. The Issuing
         Lender shall not, in any way, be liable for any failure by the Issuing
         Lender or anyone else to pay any drawing under any Letter of Credit as
         a result of any Government Acts or any other cause beyond the control
         of the Issuing Lender. Nothing in this subsection (e) is intended to
         limit the reimbursement obligations of the Borrower contained in
         subsection (b) above. The obligations of the Borrower under this
         subsection (e) shall survive the termination of this Agreement. No act
         or omissions of any current or prior beneficiary of a Letter of Credit
         shall in any way affect or impair the rights of the Issuing Lender to
         enforce any right, power or benefit under this Agreement.
         Notwithstanding anything to the contrary contained in this subsection
         (e), the Borrower shall have no obligation to indemnify the Issuing
         Lender in respect of any liability incurred by the Issuing Lender (A)
         arising out of the gross negligence or willful misconduct of the
         Issuing Lender, as determined by a court of competent jurisdiction, or
         (B) caused by the Issuing Lender's failure to pay under any Letter of
         Credit after presentation to it of a request strictly complying with
         the terms and conditions of such Letter of Credit, as determined by a
         court of competent jurisdiction, unless such payment is prohibited by
         any law, regulation, court order or decree.

                  (f) Responsibility of Issuing Lender. It is expressly
         understood and agreed that the obligations of the Issuing Lender
         hereunder to the Lenders are only those expressly set forth in this
         Agreement and that the Issuing Lender shall be entitled to assume that
         the conditions precedent set forth in Section 5.3 have been satisfied
         unless it shall have acquired actual knowledge that any such condition
         precedent has not been satisfied; provided, however, that nothing set
         forth in this Section 2.6 shall be deemed to prejudice the right of any
         Lender to recover from the Issuing Lender any amounts made available by
         such Lender to the Issuing Lender pursuant to this Section 2.6 in the
         event that it is determined by a court of competent jurisdiction that
         the payment with respect to a Letter of Credit constituted gross
         negligence or willful misconduct on the part of the Issuing Lender.

                  (g) Reports. The Issuing Lender will provide to the
         Administrative Agent for dissemination to the Lenders at least
         quarterly, and more frequently upon request, a detailed summary report
         on its Letters of Credit and the activity thereon, including, among
         other things, the Credit Party for whose account the Letter of Credit
         is issued, the beneficiary, the face amount, and the expiry date. The
         Issuing Lender will provide copies of the Letters of Credit to the
         Administrative Agent and the Lenders promptly upon request.

                                       27
<PAGE>

                  (h) Conflict with LOC Documents. Solely as among the parties
         hereto, in the event of any conflict between this Agreement and any LOC
         Document (including any letter of credit application), this Agreement
         shall control.

         2.7 Additional Provisions Relating to Swingline Loans. The Swingline
Lender may, at any time, in its sole discretion, by written notice to the
Borrower and the Lenders, demand repayment of its Swingline Loans by way of a
Revolving Loan advance, in which case the Borrower shall be deemed to have
requested a Revolving Loan advance comprised solely of Prime Rate Loans in the
amount of such Swingline Loans; provided, however, that any such demand shall be
deemed to have been given one Business Day prior to the Revolving Commitment
Termination Date and on the date of the occurrence of any Event of Default
described in Section 9.1 and upon acceleration of the indebtedness hereunder and
the exercise of remedies in accordance with the provisions of Section 9.2. Each
Lender hereby irrevocably agrees to make its Revolving Commitment Percentage of
each such Revolving Loan in the amount, in the manner and on the date specified
in the preceding sentence notwithstanding (i) the amount of such borrowing may
not comply with the minimum amount for advances of Revolving Loans otherwise
required hereunder, (ii) whether any conditions specified in Section 5.3 are
then satisfied, (iii) whether a Default or an Event of Default then exists, (iv)
failure of any such request or deemed request for Revolving Loan to be made by
the time otherwise required hereunder, (v) whether the date of such borrowing is
a date on which Revolving Loans are otherwise permitted to be made hereunder or
(vi) any termination of the Commitments relating thereto immediately prior to or
contemporaneously with such borrowing. In the event that any Revolving Loan
cannot for any reason be made on the date otherwise required above (including as
a result of the commencement of a proceeding under the Bankruptcy Code with
respect to the Borrower or any other Credit Party), then each Lender hereby
agrees that it shall forthwith purchase (as of the date such borrowing would
otherwise have occurred, but adjusted for any payments received from the
Borrower on or after such date and prior to such purchase) from the Swingline
Lender such Participation Interests in the outstanding Swingline Loans as shall
be necessary to cause each such Lender to share in such Swingline Loans ratably
based upon its Revolving Commitment Percentage of the Revolving Committed Amount
(determined before giving effect to any termination of the Commitments pursuant
to Section 9.2), provided that (A) all interest payable on the Swingline Loans
shall be for the account of the Swingline Lender until the date as of which the
respective Participation Interest is funded and (B) at the time any purchase of
Participation Interests pursuant to this sentence is actually made, the
purchasing Lender shall be required to pay to the Swingline Lender, to the
extent not paid to the Swingline Lender by the Borrower in accordance with the
terms of Section 3.3(b), interest on the principal amount of Participation
Interests purchased for each day from and including the day upon which such
borrowing would otherwise have occurred to but excluding the date of payment for
such Participation Interests, at the rate equal to the Federal Funds Rate.

         2.8 Pro Rata Treatment. Except to the extent otherwise provided herein:

                                       28
<PAGE>

                  (a) Loans. Each Revolving Loan advance, each payment or
         prepayment of principal of any Loan (other than Swingline Loans) or
         reimbursement obligations arising from drawings under Letters of
         Credit, each payment of interest on the Loans (other than Swingline
         Loans) or reimbursement obligations arising from drawings under Letters
         of Credit, each payment of Non-Use Fees, each payment of Letter of
         Credit Fees, each reduction of the Revolving Committed Amount and each
         conversion or extension of any Loan (other than Swingline Loans) shall
         be allocated pro rata among the Lenders in accordance with the
         respective Revolving Commitment Percentages.

                  (b) Advances. No Lender shall be responsible for the failure
         or delay by any other Lender in its obligation to make its ratable
         share of a borrowing hereunder; provided, however, that the failure of
         any Lender to fulfill its obligations hereunder shall not relieve any
         other Lender of its obligations hereunder. Unless the Administrative
         Agent shall have been notified by any Lender prior to the date of any
         requested borrowing that such Lender does not intend to make available
         to the Administrative Agent its ratable share of such borrowing to be
         made on such date, the Administrative Agent may assume that such Lender
         has made such amount available to the Administrative Agent on the date
         of such borrowing, and the Administrative Agent in reliance upon such
         assumption, may (in its sole discretion but without any obligation to
         do so) make available to the Borrower a corresponding amount. If such
         corresponding amount is not in fact made available to the
         Administrative Agent, the Administrative Agent shall be able to recover
         such corresponding amount from such Lender. If such Lender does not pay
         such corresponding amount forthwith upon the Administrative Agent's
         demand therefor, the Administrative Agent will promptly notify the
         Borrower, and the Borrower shall immediately pay such corresponding
         amount to the Administrative Agent. The Administrative Agent shall also
         be entitled to recover from the Lender or the Borrower, as the case may
         be, interest on such corresponding amount in respect of each day from
         the date such corresponding amount was made available by the
         Administrative Agent to the Borrower to the date such corresponding
         amount is recovered by the Administrative Agent at a per annum rate
         equal to (i) from the Borrower at the applicable rate for the
         applicable borrowing pursuant to the Notice of Borrowing and (ii) from
         a Lender at the Federal Funds Rate.

         2.9 Records of Loans. The Administrative Agent shall make reasonable
efforts to maintain an accurate record of (i) the amount, type and Interest
Period of each Loan hereunder, (ii) the amount of any principal or interest due
and payable or to become due and payable to each Lender hereunder, and (iii) the
amount of any sum received by the Administrative Agent hereunder from or for the
account of the Borrower and each Lender's share thereof, and each Lender shall
likewise make reasonable efforts to maintain an accurate record of each Loan
made by such Lender, including the amounts of principal and interest payable and
paid to such Lender from time to time under this Agreement. The entries made by
each Lender in its records, if consistent with the entries made by the
Administrative Agent in its records, shall be prima facie evidence of the
existence and amounts of the obligations of the Borrower therein recorded;
provided, however, that the failure of any Lender or the Administrative Agent to
maintain any

                                       29
<PAGE>

such records, or any error therein, shall not in any manner affect the
obligation of the Borrower to repay the Loans and other obligations owing to
such Lender.

                                   ARTICLE III
                          INTEREST, FEES AND REPAYMENT

         3.1 Interest. Subject to the provisions of Article IV, the Loans
hereunder shall bear interest at a per annum rate, payable in arrears on each
applicable Interest Payment Date (or at such other times as may be specified
herein), as follows:

                  (a) Prime Rate Loans. During such periods as the Loans shall
         be comprised of Prime Rate Loans, the sum of the Prime Rate minus the
         Applicable Margin.

                  (b) LIBOR Rate Loans. During such periods as the Loans shall
         be comprised of LIBOR Rate Loans, the sum of the Adjusted LIBOR Rate
         plus the Applicable Margin.

                  (c) Default Rate. Upon the occurrence and during the
         continuation of any Event of Default, the principal of and, to the
         extent permitted by law, interest on the Loans and any other amounts
         owing hereunder or under the other Credit Documents shall bear
         interest, payable on demand, at a per annum rate 2% greater than the
         rate which would otherwise be applicable (or if no rate is applicable,
         whether in respect of interest, fees or other amounts, then the Prime
         Rate plus the then effective Applicable Margin for Prime Rate Loans
         plus 2%.

         3.2 Fees.

                  (a) Non-Use Fee. In consideration of the Revolving
         Commitments, hereunder, the Borrower agrees to pay to the
         Administrative Agent for the benefit of each Lender a non-use fee (the
         "Non-Use Fee") for the period from the Closing Date to the Revolving
         Commitment Termination Date calculated at the rate of 0.15% (15 bps)
         per annum on the average daily unused amount of each Lender's Revolving
         Committed Amount for the applicable period. The Non-Use Fee shall be
         payable quarterly in arrears on the 15th day following the last day of
         each calendar quarter for the immediately preceding quarter (or portion
         thereof) beginning with the first such date to occur after the Closing
         Date and on the Revolving Commitment Termination Date. For purposes of
         computing the Non-Use Fee, outstanding Letters of Credit shall be
         considered usage of the Aggregate Revolving Committed Amount; however,
         outstanding Swingline Loans shall be considered usage of the Revolving
         Committed Amount of Bank of Oklahoma only.

                  (b)      Letter of Credit Fees.

                           (i) Letter of Credit Fee. In consideration of the
                  issuance of each Letter of Credit hereunder, the Borrower
                  promises to pay to the Administrative Agent for the benefit of
                  each Lender a fee (the "Letter of Credit Fee") on each
                  Lender's Percentage of the actual daily maximum amount
                  available to be drawn under each

                                       30
<PAGE>

                  outstanding Letter of Credit from the date of its issuance to
                  the date of its stated expiration, computed at a per annum
                  rate for each day equal to the Applicable Margin for LIBOR
                  Rate Loans. The Letter of Credit Fee shall be payable in
                  advance upon the issuance of each Letter of Credit (or, in the
                  case of the Existing Letters of Credit, upon the Closing
                  Date); provided, however, that if any Letter of Credit has a
                  stated expiration of more than one year from the date of
                  issuance (or provides for automatic renewals beyond a period
                  of one year from the date of issuance), the Letter of Fee
                  shall be payable in advance upon issuance for the first year
                  and on each anniversary date for each subsequent year
                  thereafter.

                           (ii) Issuing Lender Fees. In addition to the Letter
                  of Credit Fee payable pursuant to clause (i) above, the
                  Borrower promises to pay to the Issuing Lender, without
                  sharing by the other Lenders, the customary charges from time
                  to time of the Issuing Lender with respect to the issuance,
                  amendment, transfer, administration, cancellation and
                  conversion of, and drawings under, each Letter of Credit.

                           (iii) Default Fee. Upon the occurrence and during the
                  continuation of any Event of Default, the Letter of Credit Fee
                  shall accrue at a per annum rate 2% greater than the rate
                  which would otherwise be applicable.

                  (c) Administrative Fees. The Borrower agrees to pay to the
         Administrative Agent, for its own account, the fees referred to in and
         payable from time to time under the Administrative Agent Fee Letter.

                  (d) Commitment Fees. On the Closing Date, the Borrower agrees
         to pay to the Administrative Agent for the benefit of each of the
         Lenders, the commitment fees referred to in the Fee Letter.

                  (e) Modification Fee. In the event that the Lenders and the
         Administrative Agent are requested to enter into or to approve any
         amendment, modification, interpretation, termination, waiver or consent
         with respect to this Agreement or any of the other Credit Documents,
         other than an extension of the Facility in accordance with Section
         2.5(c), the Borrower shall pay to the Administrative Agent a
         modification fee of $5,000 (in addition to any out-of-pocket expenses
         reimbursable under Section 12.5(a)).

                  3.3      Maturity; Repayment.

                  (a) Swingline Loans. The principal amount of each Swingline
         Loan shall be due and payable on the earlier of (i) the maturity date
         agreed to by the Swingline Lender and the Borrower at the time such
         Swingline Loan is made, but in any event not more than 10 days from the
         date such Swingline Loan was made, and (ii) the Revolving Commitment
         Termination Date.

                                       31
<PAGE>

                  (b) Term Loans. The principal amount of all Term Loans
         outstanding shall be due and payable in full on the Facility Maturity
         Date.

         3.4 Prepayments. The Loans may be repaid in whole or in part without
premium or penalty (except, in the case of LIBOR Rate Loans, breakage costs
related to prepayments not made on the last day of the relevant Interest Period,
as provided in Section 4.7) and partial prepayments shall be minimum principal
amounts of $5,000,000 (except Swingline Loans, which may be prepaid in minimum
principal amounts of $500,000), and in integral multiples of $500,000 in excess
thereof. Unless otherwise directed by the Borrower, prepayments on the Loans
shall be applied first to Prime Rate Loans and then to LIBOR Rate Loans in
direct order of Interest Period maturities. Amounts prepaid on the Revolving
Obligations may, subject to the terms and conditions hereof, be reborrowed.
Amounts prepaid on the Term Loans may not be reborrowed.

         3.5 Sharing of Payments. The Lenders agree among themselves that, in
the event that any Lender shall obtain payment in respect of any Loan, LOC
Obligations or any other obligation owing to such Lender under this Agreement
through the exercise of a right of setoff, banker's lien or counterclaim, or
pursuant to a secured claim under Section 506 of the Bankruptcy Code or other
security or interest arising from, or in lieu of, such secured claim, received
by such Lender under any applicable bankruptcy, insolvency or other similar law
or otherwise, or by any other means, in excess of its pro rata share of such
payment as provided for in this Agreement, such Lender shall promptly purchase
from the other Lenders a Participation Interest in such Loans, LOC Obligations
and other obligations in such amounts, and make such other adjustments from time
to time, as shall be equitable to the end that all Lenders share such payment in
accordance with their respective ratable shares as provided for in this
Agreement. The Lenders further agree among themselves that if payment to a
Lender obtained by such Lender through the exercise of a right of setoff,
banker's lien, counterclaim or other event as aforesaid shall be rescinded or
must otherwise be restored, each Lender which shall have shared the benefit of
such payment shall, by repurchase of a Participation Interest theretofore sold,
return its share of that benefit (together with its share of any accrued
interest payable with respect thereto) to each Lender whose payment shall have
been rescinded or otherwise restored. The Borrower agrees that any Lender so
purchasing such a Participation Interest may, to the fullest extent permitted by
law, exercise all rights of payment, including setoff, banker's lien or
counterclaim, with respect to such Participation Interest as fully as if such
Lender were a holder of such Loan, LOC Obligations or other obligation in the
amount of such Participation Interest. Except as otherwise expressly provided in
this Agreement, if any Lender or the Administrative Agent shall fail to remit to
the Administrative Agent or any other Lender an amount payable by such Lender or
the Administrative Agent to the Administrative Agent or such other Lender
pursuant to this Agreement on the date when such amount is due, such payments
shall be made together with interest thereon for each date from the date such
amount is due until the date such amount is paid to the Administrative Agent or
such other Lender at a rate per annum equal to the Federal Funds Rate. If under
any applicable bankruptcy, insolvency or other similar law, any Lender receives
a secured claim in lieu of a setoff to which this Section 3.5 applies, such
Lender shall, to the extent practicable, exercise its rights in respect of such
secured claim in a manner consistent with the

                                       32
<PAGE>

rights of the Lenders under this Section 3.5 to share in the benefits of any
recovery on such secured claim.

         3.6 Payments. Except as otherwise specifically provided herein, all
payments hereunder shall be made to the Administrative Agent, at the address
specified in Section 12.1, in Dollars and in immediately available funds,
without setoff, deduction, counterclaim or withholding of any kind, not later
than 11:00 a.m. (Tulsa, Oklahoma time) on the date when due. Payments received
after such time shall be deemed to have been received on the next succeeding
Business Day. The Administrative Agent may (but shall not be obligated to) debit
the amount of any such payment which is not made by such time to any ordinary
deposit account of the Borrower maintained with the Administrative Agent (with
notice to the Borrower). The Borrower shall, at the time it makes any payment
under this Agreement, specify to the Administrative Agent the Loans, LOC
Obligations, Fees, interest or other amounts payable by the Borrower hereunder
to which such payment is to be applied (and in the event that it fails so to
specify, or if such application would be inconsistent with the terms hereof, the
Administrative Agent shall distribute such payment to the Lenders in such manner
as the Administrative Agent may determine to be appropriate in respect of
obligations owing by the Borrower hereunder, subject to the terms of Section
2.8(a)). The Administrative Agent will distribute such payments to such Lenders,
if any such payment is received prior to 11:00 a..m. (Tulsa, Oklahoma time) on a
Business Day in like funds as received prior to the end of such Business Day and
otherwise the Administrative Agent will distribute such payment to such Lenders
on the next succeeding Business Day. Whenever any payment hereunder shall be
stated to be due on a day which is not a Business Day, the due date thereof
shall be extended to the next succeeding Business Day (subject to accrual of
interest and Fees for the period of such extension), except that in the case of
LIBOR Rate Loans, if the extension would cause the payment to be made in the
next following calendar month, then such payment shall instead be made on the
next preceding Business Day.

         3.7 Computations of Interest and Fees. Except as expressly provided
otherwise herein, all computations of interest and fees shall be made on the
basis of actual number of days elapsed over a year of 360 days. Interest shall
accrue from and include the date of borrowing, but exclude the date of payment.

         3.8 Maximum Lawful Interest Rate. It is not the intention of the
Lenders or the Borrower to violate the laws of any applicable jurisdiction
relating to usury or other restrictions on the maximum lawful interest rate. The
Credit Documents and all other agreements between the Borrower and the Lenders,
whether now existing or hereafter arising and whether written or oral, are
hereby limited so that in no event shall the interest paid or agreed to be paid
to the Lenders for the use, forbearance or detention of money loaned, or for the
payment or performance of any covenant or obligation contained herein or in any
other Credit Document, exceed the maximum amount permissible under applicable
law. If from any circumstances whatsoever fulfillment of any provision hereof or
of any other Credit Document, at the time the performance of such provision
shall be due, shall involve transcending the limit of validity prescribed by
law, then, ipso facto, the obligation to be fulfilled shall be reduced to the
limit of such validity. If from any such circumstances the Lenders should ever
receive anything of value deemed interest under applicable law which would
exceed interest at the highest lawful rate, such excessive interest shall be

                                       33
<PAGE>

applied to the reduction of the principal amount owing hereunder, and not to the
payment of interest, or if such excessive interest exceeds any unpaid balance of
principal, such excess shall be refunded to the Borrower. All sums paid or
agreed to be paid to the Lenders for the use, forbearance or detention of monies
advances under the Facility shall, to the extent permitted by applicable law, be
amortized, prorated, allocated and spread throughout the full term of the
Obligations until payment in full so that the rate of interest on account of the
Obligations is uniform throughout the term thereof. This Section 3.8 shall
control every other provision of the Credit Documents and all other agreements
between the Lenders and the Borrower contemplated thereby.

                                   ARTICLE IV
         YIELD PROTECTION; OTHER PROVISIONS RELATING TO CREDIT FACILITY

         4.1 Capital Adequacy. If any Lender has determined that, after the
Closing Date, the adoption or the becoming effective of, or any change in, or
any change by any Governmental Authority, central bank or comparable agency
charged with the interpretation or administration thereof in the interpretation
or administration of, any law, rule or regulation regarding capital adequacy
applicable to such Lender (or its parent holding company or its Applicable
Lending Office), or compliance by such Lender (or its parent holding company or
its Applicable Lending Office) with any request or directive regarding capital
adequacy (whether or not having the force of law) of any such Governmental
Authority, central bank or comparable agency, has or would have the effect of
reducing the rate of return on such Lender's capital or assets as a consequence
of its commitments or obligations hereunder to a level below that which such
Lender could have achieved but for such adoption, effectiveness, change or
compliance (taking into consideration such Lender's policies with respect to
capital adequacy), then, upon notice from such Lender to the Borrower, the
Borrower shall be obligated to pay to such Lender such additional amount or
amounts as will compensate such Lender for such reduction. Each determination by
any such Lender of amounts owing under this Section 4.1 shall, absent manifest
error, be conclusive and binding on the parties hereto.

         4.2 Limitation on LIBOR Rate Loans. If on or prior to the first day of
any Interest Period for any LIBOR Rate Loan, (i) the Administrative Agent
determines (which determination shall be conclusive) that by reason of
circumstances affecting the relevant market, adequate and reasonable means do
not exist for ascertaining the Adjusted LIBOR Rate for such Interest Period, or
(ii) the Required Lenders determine (which determination shall be conclusive)
and notify the Administrative Agent that the Adjusted LIBOR Rate will not
adequately and fairly reflect the cost to the Lenders of funding LIBOR Rate
Loans for such Interest Period, then in either of such events the Administrative
Agent shall give the Borrower prompt notice thereof, and so long as such
condition remains in effect, the Lenders shall be under no obligation to make
additional LIBOR Rate Loans, continue LIBOR Rate Loans, or to convert Prime Rate
Loans into LIBOR Rate Loans, and the Borrower shall, on the last day(s) of the
then current Interest Period(s) for the outstanding LIBOR Rate Loans, either
prepay such LIBOR Rate Loans or convert such LIBOR Rate Loans into Prime Rate
Loans in accordance with the terms of this Agreement.

         4.3 Illegality. Notwithstanding any other provision of this Agreement,
in the event that it becomes unlawful for any Lender (or its Applicable Lending
Office) to make, maintain, or

                                       34
<PAGE>

fund LIBOR Rate Loans hereunder, then such Lender shall promptly notify the
Borrower and Administrative Agent thereof and such Lender's obligation to make
or continue LIBOR Rate Loans and to convert Prime Rate Loans into LIBOR Rate
Loans shall be suspended until such time as such Lender may again make,
maintain, and fund LIBOR Rate Loans (in which case the provisions of Section 4.5
shall be applicable).

         4.4 Requirements of Law. If, after the date hereof, the adoption of any
applicable law, rule, or regulation, or any change in any applicable law, rule,
or regulation, or any change in the interpretation or administration thereof by
any Governmental Authority, central bank, or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender (or its
Applicable Lending Office) with any request or directive (whether or not having
the force of law) of any such Governmental Authority, central bank, or
comparable agency:

                  (i) shall subject such Lender (or its Applicable Lending
         Office) to any Taxes (as defined in Section 4.6(a)) with respect to any
         LIBOR Rate Loans, its Notes, any Letter of Credit or any Lender's
         participation therein, any LOC Documents, or its obligation to make
         LIBOR Rate Loans, or change the basis of taxation of any amounts
         payable to such Lender (or its Applicable Lending Office) under this
         Agreement or its Notes in respect of any LIBOR Rate Loans (other than a
         change in the rate of tax);

                  (ii) shall impose, modify, or deem applicable any reserve,
         special deposit, assessment, or similar requirement (other than the
         Eurodollar Reserve Requirement utilized in the determination of the
         Adjusted LIBOR Rate) relating to any extensions of credit or other
         assets of, or any deposits with or other liabilities or commitments of,
         such Lender (or its Applicable Lending Office), including the
         Commitment of such Lender hereunder; or

                  (iii) shall impose on such Lender (or its Applicable Lending
         Office) or the London interbank market any other condition affecting
         this Agreement or its Notes or any of such extensions of credit or
         liabilities or commitments (including any Letter of Credit or any
         Lender's participation therein or any LOC Documents);

and the result of any of the foregoing is to increase the cost to such Lender
(or its Applicable Lending Office) of making, converting into, continuing, or
maintaining any LIBOR Rate Loans or any Letter of Credit or any Lender's
participation therein or any LOC Documents or to reduce any sum received or
receivable by such Lender (or its Applicable Lending Office) under this
Agreement or its Notes with respect to any LIBOR Rate Loans or any Letter of
Credit or LOC Document, then the Borrower shall pay to such Lender on demand
such amount or amounts as will compensate such Lender for such increased cost or
reduction. If any Lender requests compensation by the Borrower under this
Section 4.4, the Borrower may, by notice to such Lender (with a copy to the
Administrative Agent), suspend the obligation of such Lender to make or continue
LIBOR Rate Loans, or to convert Prime Rate Loans into LIBOR Rate Loans, until
the event or condition giving rise to such request ceases to be in effect (in
which case the provisions of Section 4.5 shall be applicable); provided that
such suspension shall not affect the

                                       35
<PAGE>

right of such Lender to receive the compensation so requested. Each Lender shall
promptly notify the Borrower and the Administrative Agent of any event of which
it has knowledge, occurring after the date hereof, which will entitle such
Lender to compensation pursuant to this Section 4.4 and will designate a
different Applicable Lending Office if such designation will avoid the need for,
or reduce the amount of, such compensation and will not, in the sole judgment of
such Lender, be otherwise disadvantageous to it; provided, that in determining
whether designating a different Applicable Lending Office would be
disadvantageous to such Lender, such Lender shall disregard any economic
disadvantage that the Borrower agrees in form and substance satisfactory to such
Lender to indemnify and hold such Lender harmless therefrom. Any Lender claiming
compensation under this Section 4.4 shall furnish to the Borrower and the
Administrative Agent a statement setting forth the additional amount or amounts
to be paid to it hereunder which shall be conclusive in the absence of manifest
error. In determining such amount, such Lender may use any reasonable averaging
and attribution methods.

         4.5 Treatment of Affected Loans. If the obligation of any Lender to
make any LIBOR Rate Loan or to continue, or to convert Prime Rate Loans into,
LIBOR Rate Loans shall be suspended pursuant to Section 4.3 or 4.4, such
Lender's LIBOR Rate Loans shall be automatically converted into Prime Rate Loans
on the last day(s) of the then current Interest Period(s) for such LIBOR Rate
Loans (or, in the case of a conversion required by Section 4.4, on such earlier
date as such Lender may specify to the Borrower with a copy to the
Administrative Agent) and, unless and until such Lender gives notice as provided
below that the circumstances specified in Section 4.3 or 4.4 that gave rise to
such conversion no longer exist:

                  (i) to the extent that such Lender's LIBOR Rate Loans have
         been so converted, all payments and prepayments of principal that would
         otherwise be applied to such Lender's LIBOR Rate Loans shall be applied
         instead to its Prime Rate Loans; and

                  (ii) all Loans that would otherwise be made or continued by
         such Lender as LIBOR Rate Loans shall be made or continued instead as
         Prime Rate Loans, and all Prime Rate Loans of such Lender that would
         otherwise be converted into LIBOR Rate Loans shall remain as Prime Rate
         Loans.

If such Lender gives notice to the Borrower (with a copy to the Administrative
Agent) that the circumstances specified in Section 4.3 or 4.4 that gave rise to
the conversion of such Lender's LIBOR Rate Loans pursuant to this Section 4.5 no
longer exist (which such Lender agrees to do promptly upon such circumstances
ceasing to exist) at a time when LIBOR Rate Loans made by other Lenders are
outstanding, such Lender's Prime Rate Loans shall be automatically converted, on
the first day(s) of the next succeeding Interest Period(s) for such outstanding
LIBOR Rate Loans, to the extent necessary so that, after giving effect thereto,
all Loans held by the Lenders holding LIBOR Rate Loans and by such Lender are
held pro rata (as to principal amounts, interest rate basis, and Interest
Periods) in accordance with their respective Commitments.

         4.6 Taxes.

                                       36
<PAGE>

                  (a) No Deductions. Any and all payments by the Borrower to or
         for the account of any Lender or the Administrative Agent hereunder or
         under any other Credit Document shall be made free and clear of and
         without deduction for any and all present or future taxes, duties,
         levies, imposts, deductions, charges or withholdings, and all
         liabilities with respect thereto, excluding, in the case of each Lender
         and the Administrative Agent, taxes imposed on its net income, and
         franchise taxes imposed in lieu of a tax on net income, by the
         jurisdiction under the laws of which such Lender (or its Applicable
         Lending Office) or the Administrative Agent (as the case may be) is
         organized or maintained or any political subdivision thereof (all such
         non-excluded taxes, duties, levies, imposts, deductions, charges,
         withholdings, and liabilities being hereinafter referred to as
         "Taxes"). If the Borrower shall be required by law to deduct or
         withhold any Taxes from or in respect of any sum payable under this
         Agreement or any other Credit Document to any Lender or the
         Administrative Agent, (i) except as provided in Section 4.6(e), the sum
         payable shall be increased as necessary so that after making all
         required deductions or withholdings for or on account of Taxes
         (including deductions or withholdings for or on account of Taxes
         applicable to additional sums payable under this Section 4.6) such
         Lender or the Administrative Agent receives an amount equal to the sum
         it would have received had no such deductions been made, (ii) the
         Borrower shall make such deductions or withholdings, (iii) the Borrower
         shall pay the full amount deducted or withheld to the relevant taxation
         authority or other Governmental Authority in accordance with applicable
         law, and (iv) within thirty (30) days after the date of any payment of
         Taxes, the Borrower shall furnish to the Administrative Agent, at its
         address referred to in Section 12.1, the original or a certified copy
         of a receipt evidencing payment thereof.

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

                  (c) Indemnity. Except as provided in Section 4.6(e), the
         Borrower agrees to indemnify each Lender and the Administrative Agent
         for the full amount of Taxes and Other Taxes (including any Taxes or
         Other Taxes imposed or asserted by any jurisdiction on amounts payable
         under this Section 4.6 for or on account of Taxes or Other Taxes) paid
         by such Lender or the Administrative Agent (as the case may be) and any
         liability (including penalties, interest, and expenses) arising
         therefrom or with respect thereto.

                  (d) Exemption from Backup Withholding. If requested in writing
         by the Borrower or the Administrative Agent, each Lender shall provide
         the Borrower and the Administrative Agent with accurate and complete
         original signed copies of Internal Revenue Service Form W-9 or any
         successor form prescribed by the Internal Revenue Service certifying
         that such Lender is entitled to a complete exemption from United States
         withholding tax on payments pursuant to this Agreement or any of the
         other Credit Documents.

                                       37
<PAGE>

                  (e) Non-U.S. Lenders. Each Lender that is not a United States
         person under Section 7701(a)(30) of the IRC for U.S. federal income tax
         purposes, on or prior to the date on which it becomes a Lender under
         this Agreement pursuant to Section 4.8 or 12.3), and from time to time
         thereafter if (x) a lapse in time or change in circumstances renders
         the previous certification obsolete or inaccurate in any material
         respect or (y) requested in writing by the Borrower or the
         Administrative Agent (but only so long as such Lender remains lawfully
         able to do so), shall provide the Borrower and the Administrative Agent
         with (i) two accurate and complete original signed copies of Internal
         Revenue Service Form W-8BEN or W-8ECI, as appropriate, or any successor
         form prescribed by the Internal Revenue Service, certifying that such
         Lender is entitled to benefits under an income tax treaty to which the
         United States is a party which completely eliminates United States
         withholding tax on all payments hereunder or under any other Credit
         Documents or certifying that all such payments are effectively
         connected with the conduct of a trade or business in the United States,
         or (ii) if such Lender is not a "bank" within the meaning of Section
         881(c)(3)(A) of the IRC and cannot deliver either Internal Revenue
         Service Form W-8BEN (with respect to a complete exemption under an
         income tax treaty) or Form W-8ECI pursuant to clause (i), (A) a
         certificate, in form satisfactory to the Borrower and the
         Administrative Agent, and (B) two accurate and complete original signed
         copies of Form W-8BEN or any successor form prescribed by the Internal
         Revenue Service, certifying that such Lender is entitled to a complete
         exemption from United States withholding tax on payments of interest
         pursuant to this Agreement or any of the other Credit Documents. For
         any period with respect to which a Lender has failed to provide the
         Borrower and the Administrative Agent with the appropriate form
         pursuant to this Section 4.6(e) (unless such failure is due to a change
         in treaty, law, or regulation (or in the official interpretation
         thereof) enacted or promulgated subsequent to the date on which a form
         with respect to such Lender originally was required to be provided),
         such Lender shall not be entitled to indemnification under Section
         4.6(a) or 4.6(c) with respect to Taxes imposed by the United States;
         provided, however, that should a Lender, which is otherwise exempt from
         United States withholding tax, become subject to Taxes because of its
         failure to deliver a form required hereunder, the Borrower shall take
         such steps as such Lender shall reasonably request to assist such
         Lender, at such Lender's expense, to recover such Taxes. In addition,
         for any period with respect to which a Lender has provided the Borrower
         and the Administrative Agent with the Internal Revenue Service forms
         specified in clause (ii) of the first sentence of this Section 4.6(e),
         such Lender shall not be entitled to indemnification under Section
         4.6(a) or 4.6(c) with respect to Taxes imposed by the United States
         other than Taxes imposed on interest.

                  (f) Lending Offices. If the Borrower is required to pay
         additional amounts to or for the account of any Lender pursuant to this
         Section 4.6, then such Lender will agree to use reasonable efforts to
         change the jurisdiction of its Applicable Lending Office so as to
         eliminate or reduce any such additional payment which may thereafter
         accrue if such change, in the sole judgment of such Lender, is not
         otherwise materially disadvantageous to such Lender; provided, that in
         determining whether changing the jurisdiction of an Applicable Lending
         Office would be disadvantageous to such Lender, such Lender shall

                                       38
<PAGE>

         disregard any economic disadvantage that the Borrower agrees in form
         and substance satisfactory to such Lender to indemnify and hold such
         Lender harmless from.

                  (g) Refund to Borrower. If any Lender determines that it has
         actually received or realized any refund of tax, any reduction of, or
         credit against, its tax liabilities or otherwise recovered any amount
         in connection with any deduction or withholding, or payment of any
         additional amount, by the Borrower pursuant to Section 4.4 or 4.6, such
         Lender shall reimburse the Borrower an amount that the Lender shall, in
         its sole discretion, determine is equal to the net benefit, after tax,
         which was actually obtained by the Lender as a consequence of such
         refund, reduction, credit or recovery; provided, that nothing in this
         subsection (f) shall require any Lender to make available its tax
         returns (or any other information relating to its taxes which it deems
         to be confidential).

                  (h) Survival. Without prejudice to the survival of any other
         agreement of the Borrower hereunder, the agreements and obligations of
         the Borrower contained in this Section 4.6 shall survive the repayment
         of the Loans, the LOC Obligations and other obligations under the
         Credit Documents and the termination of the Commitments hereunder.

         4.7 Compensation. Upon the request of any Lender, the Borrower shall
pay to such Lender such amount or amounts as shall be sufficient (in the
reasonable opinion of such Lender) to compensate it for any loss, cost, or
expense (excluding loss of anticipated profits) incurred by it as a result of:
(i) any payment, prepayment, or conversion of a LIBOR Rate Loan for any reason
(including the acceleration of the Loans pursuant to Section 9.2) on a date
other than the last day of the Interest Period for such Loan; or (ii) any
failure by the Borrower for any reason (including the failure of any condition
precedent specified in Article V to be satisfied) to borrow, convert, continue,
or prepay a LIBOR Rate Loan on the date for such borrowing, conversion,
continuation, or prepayment specified in the relevant Notice of Borrowing,
prepayment, continuation, or conversion under this Agreement. With respect to
LIBOR Rate Loans, such indemnification may include an amount equal to the
excess, if any, of (i) the amount of interest which would have accrued on the
amount so prepaid, or not so borrowed, converted or continued, for the period
from the date of such prepayment or of such failure to borrow, convert or
continue to the last day of the applicable Interest Period (or, in the case of a
failure to borrow, convert or continue, the Interest Period that would have
commenced on the date of such failure) in each case at the applicable rate of
interest for such LIBOR Rate Loans provided for herein (excluding, however, the
Applicable Margin included therein, if any) over (ii) the amount of interest (as
reasonably determined by such Lender) which would have accrued to such Lender on
such amount by placing such amount on deposit for a comparable period with
leading banks in the interbank Eurodollar market. Without prejudice to the
survival of any other agreement of the Borrower hereunder, the covenants of the
Borrower set forth in this Section 4.7 shall survive the repayment of the Loans,
LOC Obligations and other obligations under the Credit Documents and the
termination of the Commitments hereunder.

         4.8 Replacement of Lenders. The Borrower shall have the right, if no
Default then exists, to replace any Lender (a "Replaced Lender") with one or
more other Eligible Assignees

                                       39
<PAGE>

reasonably acceptable to the Administrative Agent (collectively, the
"Replacement Lender") if such Lender is charging the Borrower increased costs
pursuant to Section 4.4 or 4.6 in excess of those being charged generally by the
other Lenders or such Lender becomes incapable of making LIBOR Rate Loans as
provided in Section 4.3 when other Lenders are generally able to do so;
provided, however, that (i) at the time of any replacement pursuant to this
Section 4.8, the Replacement Lender shall enter into one or more assignment
agreements in accordance with Section 12.3(b) (and with all fees payable
pursuant to Section 12.3(b) to be paid by the Replacement Lender) pursuant to
which the Replacement Lender shall acquire all of the Commitments and
outstanding Revolving Obligations of the Replaced Lender and, in connection
therewith, shall pay to (x) the Replaced Lender, an amount equal to the sum of
(A) the principal of, and all accrued interest on, all outstanding Loans of the
Replaced Lender, (B) all other Obligations owing to such Replaced Lender,
together with all then unpaid interest with respect thereto at such time, and
(C) all accrued, but theretofore unpaid, fees owing to the Replaced Lender
pursuant to Section 3.2, and (y) the Issuing Lender, an amount equal to such
Replaced Lender's Revolving Commitment Percentage of a participation in any LOC
Obligations (which at such time remains a LOC Obligation) to the extent such
amount was not theretofore purchased by such Replaced Lender pursuant to Section
2.6(b), and (ii) all obligations of the Borrower owing to the Replaced Lender
(other than those specifically described in clause (i) above in respect of which
the assignment purchase price has been, or is concurrently being, paid, but
including any amounts which would be paid to a Lender pursuant to Section 4.7 if
the Borrower were prepaying a LIBOR Rate Loan) shall be paid in full to such
Replaced Lender concurrently with such replacement. Upon the execution of the
respective assignment agreement, the payment of amounts referred to in clauses
(i) and (ii) above and, if so requested by the Replacement Lender, delivery to
the Replacement Lender of a Note executed by the Borrower, the Replacement
Lender shall become a Lender hereunder and the Replaced Lender shall cease to
constitute a Lender hereunder and be released of all its obligations as a
Lender, except with respect to indemnification provisions applicable to the
Replaced Lender under this Agreement, which shall survive as to such Replaced
Lender.

                                    ARTICLE V
                          CLOSING; CONDITIONS PRECEDENT

         5.1 Closing Date. The closing of the transactions contemplated by this
Agreement will take place, and the initial Extensions of Credit will be made, on
July 16, 2002, or at such other date (not later than July 31, 2002) as the
parties shall mutually agree (the "Closing Date"), provided that all conditions
to the closing set forth in Section 5.2 have been satisfied.

         5.2 Closing Conditions. The obligation of the Lenders to enter into
this Agreement and to make the initial Extensions of Credit hereunder is subject
to satisfaction of the following conditions precedent at or as of the Closing
Date (in each case in form and substance acceptable to the Lenders, unless
otherwise specified):

                  (a) Executed Credit Documents. Receipt by the Administrative
         Agent of multiple counterparts of the Credit Documents, including this
         Agreement, the Notes

                                       40
<PAGE>

         (provided that there shall only be one original of each Note) and the
         Subsidiary Guaranty, each duly executed by an appropriate officer of
         each of the parties thereto.

                  (b) Financial Information. Receipt by the Administrative Agent
         of such financial information regarding the Borrower and the
         Consolidated Group as may be requested by, and in each case in form and
         substance satisfactory to, the Administrative Agent and the Lenders,
         including, to the extent available, any of the information otherwise
         required to be delivered pursuant to Section 7.1.

                  (c) Corporate Documents. Receipt by the Administrative Agent
         of the following:

                           (i) Charter Documents. Copies of the Articles or
                  Certificate of Incorporation, Articles of Organization or
                  other similar publicly-filed organizational documents of each
                  of the Credit Parties, each certified to be true and complete
                  as of a recent date by the appropriate Governmental Authority
                  of the state or other jurisdiction of its incorporation or, if
                  certification by the appropriate Governmental Authority is not
                  available, certified by its secretary or assistant secretary
                  to be true and correct as of the Closing Date.

                           (ii) Bylaws. A copy of the bylaws, operating
                  agreement or other internal governance documents of each of
                  the Credit Parties, each certified by its secretary or
                  assistant secretary to be true and correct as of the Closing
                  Date.

                           (iii) Resolutions. Copies of resolutions of the Board
                  of Directors of each of the Credit Parties approving and
                  adopting the Credit Documents to which it is a party, the
                  transactions contemplated therein and authorizing execution
                  and delivery thereof, certified by its secretary or assistant
                  secretary to be true and correct and in force and effect as of
                  the Closing Date.

                           (iv) Good Standing. Copies of certificates of good
                  standing, existence or its equivalent with respect to each of
                  the Credit Parties certified as of a recent date by the
                  appropriate Governmental Authorities of the state or other
                  jurisdiction of incorporation and each other jurisdiction in
                  which the failure to so qualify and be in good standing could
                  reasonably be expected to have a Material Adverse Effect.

                           (v) Incumbency Certificate. An incumbency certificate
                  with respect to each of the Credit Parties, certified by its
                  secretary or assistant secretary to be true and correct as of
                  the Closing Date.

                  (d) Opinion of Counsel. Receipt by the Administrative Agent of
         opinions of McAfee & Taft A Professional Corporation, counsel to the
         Parent and the Borrower, and Steven R. Mackey, Vice President and
         General Counsel of the Parent, as to the matter set forth on Exhibit
         "F" and such other matters as the Administrative Agent or its counsel

                                       41
<PAGE>

         may reasonably request at least three Business Days prior to the
         Closing Date (such opinions may be based upon such customary
         assumptions and may contains such customary qualifications and
         exceptions as may be approved by the Administrative Agent and its
         counsel).

                  (e) Certificate of Chief Financial Officer. A certificate,
         signed by the chief financial officer of the Parent, stating that, as
         of the Closing Date and to the best of such officer's knowledge, (i) no
         Default or Event of Default has occurred and is continuing, (ii) the
         representations and warranties made by the Borrower and the Parent
         herein or by the Credit Parties in any other Credit Documents are true
         and correct, and (iii) except as set forth on Schedule 6.5 and except
         as contemplated by Section 12.17, since September 30, 2001, there has
         been no circumstance, development or event which has had or could
         reasonably be expected to have a Material Adverse Effect. Such
         certificate shall also set forth calculations demonstrating the
         Borrower's compliance with Sections 7.11(c) and 7.12.

                  (f) Fees and Expenses. Payment by the Credit Parties of all
         fees and expenses owed by them to the Lenders and the Administrative
         Agent, including the reasonable fees and expenses of counsel to the
         Administrative Agent.

                  (g) Other. Receipt by the Lenders of such other documents,
         instruments, agreements or information as reasonably requested by any
         Lender.

                  (h) Bank One Agreement. Receipt by the Administrative Agent
         and the Lenders of satisfactory evidence that (i) any existing defaults
         or events of default under the Bank One Agreement have been cured or
         permanently waived, and (ii) the Bank One Agreement has been modified
         such that the affirmative and negative covenants contained therein and
         the events of default specified therein are no more restrictive than
         the covenants contained herein and the Events of Defaults specified
         herein.

In addition, there shall not have occurred or become known any material adverse
change or any condition or event that could reasonably be expected to result in
a material adverse change in the business, operations, financial condition,
liabilities (contingent or otherwise) or prospects of the Consolidated Group
taken as a whole since the dates of the latest financial information furnished
to the Administrative Agent and the Lenders.

         5.3 Conditions to All Extensions of Credit. The obligation of each
Lender to make any Extension of Credit hereunder (including the initial
Extension of Credit to be made hereunder) is subject to the satisfaction of the
following additional conditions precedent on the date of making such Extension
of Credit (in addition to the conditions set forth in Article II):

                  (a) Representations and Warranties. The representations and
         warranties made by the Borrower and the Parent herein or by the Credit
         Parties in any other Credit Documents or which are contained in any
         certificate furnished at any time under or in connection herewith shall
         be true and correct in all material respects on and as of the date

                                       42
<PAGE>

         of such Extension of Credit as if made on and as of the date of such
         extension or such request, as applicable (except for those which
         expressly relate to an earlier specified date).

                  (b) No Default or Event of Default. No Default or Event of
         Default shall have occurred and be continuing on such date or after
         giving effect to the Extension of Credit to be made on such date and
         the application of the proceeds thereof unless such Default or Event of
         Default shall have been waived in accordance with this Agreement.

                  (c) Bankruptcy or Insolvency. No Bankruptcy Event shall have
         occurred by or with respect to the Borrower, the Parent or any of the
         Parent's Subsidiaries.

                  (d) No Material Adverse Effect. No circumstance, event or
         condition shall have occurred or be existing which could reasonably be
         expected to have a Material Adverse Effect.

Each request for an Extension of Credit (including extensions and conversions)
and each acceptance by the Borrower of an Extension of Credit (including
extensions and conversions) shall be deemed to constitute a representation and
warranty by the Borrower as of the date of such Extension of Credit that the
applicable conditions in subsections (a), (b), (c) and (d) of this Section 5.3
have been satisfied.

                                   ARTICLE VI
                         REPRESENTATIONS AND WARRANTIES

         To induce the Lenders to make the Extensions of Credit hereunder to the
Borrower, the Borrower and the Parent hereby jointly and severally represent and
warrant to the Administrative Agent and to each Lender that:

         6.1 Organization; Existence; Compliance with Law. Each of the members
of the Consolidated Group (i) is duly organized, validly existing in good
standing under the laws of the jurisdiction of its incorporation or
organization, (ii) has the corporate or other necessary organizational power and
authority, and the legal right to own and operate its Properties, to lease the
Properties it operates as lessee and to conduct the business in which it is
currently engaged, (iii) is duly qualified as a foreign entity and in good
standing under the laws of each jurisdiction where its ownership, lease or
operation of Property or the conduct of its business requires such
qualification, other than in such jurisdictions where the failure to be so
qualified and in good standing has not had and could not have a Material Adverse
Effect, and (iv) is in compliance with all Requirements of Law, except to the
extent that the failure to comply therewith has not had and could not be
reasonably expected to have a Material Adverse Effect.

         6.2 Existence and Authorization. Each of the Credit Parties has the
corporate or other necessary organizational power and authority, and the legal
right, to make, deliver and perform the Credit Documents to which it is a party
and has taken all necessary corporate or other action to authorize the
execution, delivery and performance by it of the Credit Documents to which it is

                                       43
<PAGE>

a party. No consent or authorization of, filing with, notice to or other act by
or in respect of, any Governmental Authority or any other Person is required in
connection with acceptance of Extensions of Credit or the making of the
guaranties hereunder or with the execution, delivery or performance of any
Credit Documents by the Credit Parties (other than those which have been
obtained, such filings as are required by the SEC and to fulfill other reporting
requirements with Governmental Authorities) or with the validity or
enforceability of any Credit Document against the Credit Parties.

         6.3 Enforceability. Each Credit Document to which it is a party
constitutes a legal, valid and binding obligation of such Credit Party
enforceable against such Credit Party in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors' rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

         6.4 No Legal Bar. The execution, delivery and performance of the Credit
Documents, the borrowings hereunder and the use of the Extensions of Credit will
not violate any Requirement of Law or any Contractual Obligation of any member
of the Consolidated Group (except those as to which waivers or consents have
been obtained and those which could not reasonably be expected to have a
Material Adverse Effect), and will not result in, or require, the creation or
imposition of any Lien on any of its respective properties or revenues pursuant
to any Requirement of Law or Contractual Obligation. No member of the
Consolidated Group is in default under or with respect to any of its Contractual
Obligations in any respect which has had or could reasonably be expected to have
a Material Adverse Effect.

         6.5 Financial Condition. The audited consolidated balance sheets of the
Parent and its consolidated Subsidiaries dated as of September 30, 1999,
September 30, 2000, and September 30, 2001, respectively, together, in each
case, with the related audited statements of income and cash flows, and the
unaudited company-prepared consolidated balance sheet for the Parent and its
consolidated Subsidiaries, dated as of March 31, 2002, together with related
consolidated statements of income and cash flows, copies of which have
previously been provided to the Administrative Agent for distribution to the
Lenders, were prepared in accordance with GAAP consistently applied throughout
the periods covered thereby, are complete and correct in all material respects
and present fairly the financial condition (including disclosure of all material
liabilities, contingent or otherwise) and results of operations of the Persons
and for the periods specified, subject in the case of interim company-prepared
statements to normal year-end adjustments and the absence of footnotes. Except
as set forth on Schedule 6.5, since September 30, 2001, and except as
contemplated by Section 12.17, there has been no circumstance, development or
event which has had or could reasonably be expected to have a Material Adverse
Effect.

         6.6 No Material Litigation and Disputes. No unsealed litigation or, to
the best knowledge of the Credit Parties, claims, investigation, sealed
litigation or proceeding of or before any arbitrator or Governmental Authority
is pending or, to the best knowledge of the Credit Parties, threatened by or
against, any members of the Consolidated Group or against any of their

                                       44
<PAGE>

respective properties or revenues which (a) relate to the Credit Documents or
any of the transactions contemplated hereby or thereby or (b) if adversely
determined, could, after giving effect to any applicable insurance, reasonably
be expected to have a Material Adverse Effect.

         6.7 No Defaults. No Default or Event of Default has occurred and is
continuing. No default exists, nor, to the best knowledge of the Credit Parties,
is any such default asserted under any Contractual Obligations to which any
member of the Consolidated Group is a party which individually or in the
aggregate has had or could reasonably be expected to have a Material Adverse
Effect.

         6.8 Ownership and Operation of Property. Each of the members of the
Consolidated Group has good title to, or a valid leasehold interest in, all of
its material real property, and good title to, or a valid leasehold interest in,
all of its other material Property, and none of such Properties is subject to
any Lien, except for Permitted Liens.

         6.9 Licenses. Each of the members of the Consolidated Group has
obtained all material Licenses, governmental or private, necessary to the
ownership of its Properties and to the conduct of its business, which are
material to the Consolidated Group taken as a whole.

         6.10 No Burdensome Restrictions. None of the members of the
Consolidated Group is subject to any Requirement of Law or any Contractual
Obligation which has had or could be reasonably expected to have a Material
Adverse Effect.

         6.11 Taxes. Each of the members of the Consolidated Group has filed or
caused to be filed all income tax returns (federal, state, local and foreign)
and all other material tax returns which are required to be filed and has paid
(i) all amounts shown therein to be due (including interest and penalties) and
(ii) all other taxes, fees, assessments and other governmental charges
(including mortgage recording taxes, documentary stamp taxes and intangibles
taxes) owing, except for such taxes which are not yet delinquent or as are being
contested in good faith by proper proceedings and against which adequate
reserves are being maintained in accordance with GAAP. No tax claim or
assessment has been asserted in writing against members of the Consolidated
Group which has had or, if adversely determined, could reasonably be expected to
have a Material Adverse Effect.

         6.12 ERISA Matters.

                  (i) During the five-year period prior to the date on which
         this representation is made or deemed made: (A) no ERISA Event has
         occurred, and, to the best knowledge of the Credit Parties, no event or
         condition has occurred or exists as a result of which any ERISA Event
         could reasonably be expected to occur, with respect to any Plan; (B) no
         "accumulated funding deficiency," as such term is defined in Section
         302 of ERISA and Section 412 of the IRC, whether or not waived, has
         occurred with respect to any Plan; (C) each Plan has been maintained,
         operated, and funded in compliance with its own terms and in material
         compliance with the provisions of ERISA, the IRC, and any other
         applicable federal or state laws, except to the extent any
         noncompliance could not

                                       45
<PAGE>

         reasonably be expected to have a Material Adverse Effect; and (D) no
         Lien in favor of the PBGC or a Plan has arisen or is reasonably likely
         to arise on account of any Plan.

                  (ii) The actuarial present value of all "benefit liabilities"
         (as defined in Section 4001(a)(16) of ERISA), whether or not vested,
         under each Single Employer Plan, as of the last annual valuation date
         prior to the date on which this representation is made or deemed made
         (determined, in each case, in accordance with Financial Accounting
         Standards Board Statement 87, utilizing the actuarial assumptions used
         in such Plan's most recent actuarial valuation report), did not exceed
         as of such valuation date the fair market value of the assets of such
         Plan.

                  (iii) No member of the Consolidated Group nor any ERISA
         Affiliate has incurred, or, to the best knowledge of the Credit
         Parties, could be reasonably expected to incur, any withdrawal
         liability under ERISA to any Multiemployer Plan or Multiple Employer
         Plan, except to the except to the extent any such withdrawal liability
         could not reasonably be expected to have a Material Adverse Effect. No
         member of the Consolidated Group nor any ERISA Affiliate would become
         subject to any withdrawal liability under ERISA if any member of the
         Consolidated Group or any ERISA Affiliate were to withdraw completely
         from all Multiemployer Plans and Multiple Employer Plans as of the
         valuation date most closely preceding the date on which this
         representation is made or deemed made. No member of the Consolidated
         Group nor any ERISA Affiliate has received any notification that any
         Multiemployer Plan is in reorganization (within the meaning of Section
         4241 of ERISA), is insolvent (within the meaning of Section 4245 of
         ERISA), or has been terminated (within the meaning of Title IV of
         ERISA), and no Multiemployer Plan is, to the best knowledge of the
         Credit Parties, reasonably expected to be in reorganization, insolvent,
         or terminated.

                  (iv) To the best knowledge of the Credit Parties, no
         prohibited transaction (within the meaning of Section 406 of ERISA or
         Section 4975 of the IRC) or breach of fiduciary responsibility has
         occurred with respect to a Plan which has subjected or may subject any
         member of the Consolidated Group or any ERISA Affiliate to any
         liability under Sections 406, 409, 502(i), or 502(l) of ERISA or
         Section 4975 of the IRC, or under any agreement or other instrument
         pursuant to which any member of the Consolidated Group or any ERISA
         Affiliate has agreed or is required to indemnify any person against any
         such liability.

                  (v) No member of the Consolidated Group nor any ERISA
         Affiliates has any liability with respect to "expected post-retirement
         benefit obligations" within the meaning of the Financial Accounting
         Standards Board Statement 106. Each Plan which is a welfare plan (as
         defined in Section 3(1) of ERISA) to which Sections 601-609 of ERISA
         and Section 4980B of the IRC apply has been administered in compliance
         in all material respects of such sections, except to the extent any
         noncompliance could not reasonably be expected to have a Material
         Adverse Effect.

         6.13 Governmental Regulations.

                                       46
<PAGE>

                  (a) Margin Stock. No part of the proceeds of the Extensions of
         Credit hereunder will be used, directly or indirectly, for the purpose
         of purchasing or carrying any "margin stock" within the meaning of
         Regulation U, or for the purpose of purchasing or carrying or trading
         in any other securities. If requested by any Lender or the
         Administrative Agent, the Borrower will furnish to the Administrative
         Agent and each Lender a statement to the foregoing effect in conformity
         with the requirements of FR Form U-1 referred to in said Regulation U.
         No indebtedness being reduced or retired out of the proceeds of the
         Extensions of Credit hereunder was or will be incurred for the purpose
         of purchasing or carrying any margin stock within the meaning of
         Regulation U or any " margin security" within the meaning of Regulation
         T. "Margin stock" within the meanings of Regulation U does not
         constitute more than 25% of the value of the consolidated assets of the
         Borrower and its Subsidiaries.

                  (b) Securities Laws. None of the transactions contemplated by
         this Agreement (including the direct or indirect use of the proceeds of
         the Loans) will violate or result in a violation of the Securities Act
         of 1933, as amended, or the Securities Exchange Act, or regulations
         issued pursuant thereto, or Regulation T, U or X.

                  (c) Investment Company Act; Public Utility Holding Company
         Act. None of the members of the Consolidated Group is subject to
         regulation under the Public Utility Holding Company Act of 1935, the
         Federal Power Act or the Investment Company Act of 1940, each as
         amended. In addition, none of the members of the Consolidated Group is
         (i) an "investment company" registered or required to be registered
         under the Investment Company Act of 1940, as amended, and is not
         controlled by such a company, or (ii) a "holding company," or a
         "subsidiary company" of a "holding company," or an "affiliate" of a
         "holding company" or of a "subsidiary" of a "holding company," within
         the meaning of the Public Utility Holding Company Act of 1935, as
         amended.

                  (d) Regulation O. No director, executive officer or principal
         shareholder of any member of the Consolidated Group is a director,
         executive officer or principal shareholder of any Lender. For the
         purposes hereof the terms "director," "executive officer" and
         "principal shareholder"(when used with reference to any Lender) have
         the respective meanings assigned thereto in Regulation O.

         6.14 Subsidiaries. Set forth on Schedule 6.14 are all the Subsidiaries
of the Parent, including the jurisdiction of organization, classes of Capital
Stock or other equity interests (including options, warrants, rights of
subscription, conversion and exchangeability and other similar rights) and
ownership and ownership percentages thereof. The outstanding shares of Capital
Stock shown have been validly issued, fully paid and are non-assessable and
owned free of Liens other than Permitted Liens.

         6.15 Purpose of Extensions of Credit. The proceeds of the Revolving
Loans will be used solely for the purposes stated in Section 2.2(c).

                                       47
<PAGE>

         6.16     Environmental Matters.

                  (i) All of the facilities and Properties owned, leased or
         operated by each member of the Consolidated Group, and all of the
         Consolidated Group's respective operations at such facilities and
         Properties, are in compliance with all applicable Environmental Laws,
         and there is no violation of any Environmental Law with respect to such
         Properties or businesses, except to the extent any noncompliance or
         violation has not resulted and could not reasonably be expected to
         result in a Material Adverse Effect.

                  (ii) No Hazardous Materials are located or have been released
         on, under or about any of the facilities and Properties owned, leased
         or operated by any member of the Consolidated Group in amounts or
         concentrations that constitute a violation of, or could give rise to
         liability under, any Environmental Laws, and no Hazardous Materials
         have been generated, treated, stored, released from or disposed of at,
         on or under any of such facilities or Properties or any other location,
         or transported from such Properties to or disposed of at any other
         location by or on behalf of any members of the Consolidated Group in
         violation of any Environmental Law, except to the extent any such
         violation or liability has not resulted and could not reasonably be
         expected to result in a Material Adverse Effect.

                  (iii) No member of the Consolidated Group has (A) received any
         written notice of any judicial proceeding or administrative action that
         is pending or threatened under any Environmental Law with respect to
         any member of the Consolidated Group or its facilities, Properties or
         business, (B) entered into or been subject to any consent decree,
         consent order, administrative order or compliance order, or other
         administrative or judicial requirement that remains outstanding under
         any Environmental Law, or (C) been subject to any governmental
         enforcement action under any Environmental Laws with respect to any of
         its facilities or Properties or any off-site waste disposal site.

         6.17     Labor Matters. Except as set forth in Schedule 6.17:

                  (i) There are no strikes or lockouts against any members of
         the Consolidated Group pending or, to the best knowledge of the Credit
         Parties, threatened which could reasonably be expected to have a
         Material Adverse Effect.

                  (ii) The hours worked by and payments made to employees of the
         Consolidated Group have not been in violation of the Fair Labor
         Standards Act or any other applicable federal, state, local or foreign
         law dealing with such matters in any case where a Material Adverse
         Effect has occurred or could reasonably be expected to occur as a
         result of the violation thereof.

                  (iii) As of the date hereof, all payments due from members of
         the Consolidated Group, or for which any claim may be made against a
         member of the Consolidated Group, on account of wages and employee
         health and welfare insurance and other benefits, have been paid or
         accrued as a liability on the books of the respective members

                                       48
<PAGE>

         of the Consolidated Group, except to the extent any failure to so pay
         or accrue could not reasonably be expected to have a Material Adverse
         Effect.

         6.18 No Material Misstatements. None of the information contained in
reports, financial statements, exhibits or schedules, taken as a whole,
furnished by or on behalf of any member of the Consolidated Group to the
Administrative Agent or any Lender in connection with the negotiation of the
Credit Documents or included therein or delivered pursuant thereto contained,
contains or will contain any material misstatement of fact or omitted, omits or
will omit to state any material fact necessary to make the statements therein,
in light of the circumstances under which they were, are or will be made, not
materially misleading.

                                   ARTICLE VII
                              AFFIRMATIVE COVENANTS

         The Borrower and the Parent hereby jointly and severally covenant and
agree that, so long as this Agreement is in effect or any amounts payable
hereunder or under any other Credit Document shall remain outstanding or any
Letter of Credit is outstanding, and until all of the Commitments hereunder
shall have terminated:

         7.1 Reporting Requirements. The members of the Consolidated Group will
furnish, or cause to be furnished, to the Administrative Agent (with sufficient
copies for each of the Lenders):

                  (a) Annual Financial Statements. As soon as available, and in
         any event within 95 days after the close of each fiscal year of the
         Consolidated Group, a consolidated balance sheet and income statement
         of the members of the Consolidated Group as of the end of such fiscal
         year, together with related consolidated statements of operations and
         retained earnings and of cash flows for such fiscal year, in each case
         setting forth in comparative form consolidated figures for the
         preceding fiscal year, all such financial information described above
         to be in reasonable form and detail and audited by independent
         certified public accountants of recognized national or regional
         standing reasonably acceptable to the Administrative Agent and whose
         opinion shall be to the effect that such financial statements have been
         prepared in accordance with GAAP (except for changes with which such
         accountants concur) and shall not be limited as to the scope of the
         audit or qualified as to the status of the members of the Consolidated
         Group as a going concern or any other material qualifications or
         exceptions. Such financial statements shall be accompanied by a
         certificate of the accountants conducting the annual audit stating that
         they have reviewed this Agreement and stating further whether, in the
         course of their audit, they have become aware of any Default or Event
         of Default and, if any such Default or Event of Default exists,
         specifying the nature and extent thereof.

                  (b) Quarterly Financial Statements. As soon as available, and
         in any event within 50 days after the close of each fiscal quarter of
         the Consolidated Group (excluding the fourth fiscal quarter) an
         internally-prepared consolidated balance sheet and income statement of
         the members of the Consolidated Group as of the end of such fiscal
         quarter,

                                       49
<PAGE>

         together with related consolidated statements of operations and
         retained earnings and of cash flows for such fiscal quarter, in each
         case setting forth in comparative form consolidated figures for the
         corresponding period of the preceding fiscal year, all such financial
         information described above to be in reasonable form and detail and
         reasonably acceptable to the Administrative Agent, and accompanied by a
         certificate of the chief financial officer of the Parent to the effect
         that such quarterly financial statements fairly present in all material
         respects the financial condition of the members of the Consolidated
         Group and have been prepared in accordance with GAAP, subject to
         changes resulting from audit and normal year-end audit adjustments.

                  (c) Compliance Certificate. At the time of delivery of the
         financial statements provided for in Sections 7.1(a) and 7.1(b) above,
         a certificate of the chief financial officer or other Executive Officer
         of the Parent, in substantially the form of Exhibit "G," (i)
         demonstrating compliance with the financial covenants contained in
         Section 7.11 by calculation thereof as of the end of each such fiscal
         period, (ii) containing information regarding the amount of all Asset
         Dispositions during the prior fiscal year (annually only), and (iii)
         stating that no Default or Event of Default exists, or if any Default
         or Event of Default does exist, specifying the nature and extent
         thereof and what action the Credit Parties propose to take with respect
         thereto.

                  (d) Auditor's Reports. Promptly upon receipt thereof, a copy
         of any other report or " management letter" submitted by independent
         accountants to any member of the Consolidated Group in connection with
         any annual, interim or special audit of the books of such Person.

                  (e) Reports. Promptly upon transmission or receipt thereof,
         copies of any filings and registrations with, and reports to or from,
         the SEC, or any successor agency, and copies of all financial
         statements, proxy statements, notices and reports as the Parent shall
         send to its shareholders.

                  (f) Notice of Default. Promptly upon any Executive Officer of
         a Credit Party obtaining knowledge thereof, written notice of the
         occurrence of a Default or Event of Default, specifying the nature and
         existence thereof and what action the Credit Parties propose to take
         with respect thereto.

                  (g) Notice of Litigation and Potential Liabilities. Promptly
         upon any Executive Officer of a Credit Party obtaining knowledge
         thereof, written notice of: (i) the commencement of any litigation,
         arbitral or governmental proceeding against any Credit Party which, if
         adversely determined, would impose liability on one or more of the
         members of the Consolidated Group, after allowance for insurance
         coverage, of $10,000,000 or more in the aggregate or which would
         otherwise be likely to have a Material Adverse Effect; or (ii) the
         institution of any proceedings against such Person with respect to, or
         the receipt of notice by such Person of potential liability or
         responsibility for violation, or alleged violation of any Requirement
         of Law, including any Environmental Laws, the violation of which could
         have a Material Adverse Effect.

                                       50
<PAGE>

                  (h) ERISA. Promptly upon any Executive Officer of a Credit
         Party obtaining knowledge thereof, written notice of: (i) any event or
         condition, including, but not limited to, any Reportable Event, that
         constitutes, or might reasonably lead to, an ERISA Event; (ii) with
         respect to any Multiemployer Plan, the receipt of notice as prescribed
         in ERISA or otherwise of any withdrawal liability assessed against the
         Credit Parties or any ERISA Affiliates, or of a determination that any
         Multiemployer Plan is in reorganization or insolvent (both within the
         meaning of Title IV of ERISA); (iii) the failure to make full payment
         on or before the due date (including extensions) thereof of all amounts
         which any member of the Consolidated Group or any ERISA Affiliate is
         required to contribute to each Plan pursuant to its terms and as
         required to meet the minimum funding standard set forth in ERISA and
         the IRC with respect thereto; or (iv) any change in the funding status
         of any Plan that could have a Material Adverse Effect, together with a
         description of any such event or condition or a copy of any such notice
         and a statement by an Executive Officer of the Parent briefly setting
         forth the details regarding such event, condition, or notice, and the
         action, if any, which has been or is being taken or is proposed to be
         taken by the Credit Parties with respect thereto. Promptly upon
         request, the Credit Parties shall furnish the Administrative Agent and
         the Lenders with such additional information concerning any Plan as may
         be reasonably requested, including, but not limited to, copies of each
         annual report/return (Form 5500 series), as well as all schedules and
         attachments thereto required to be filed with the Department of Labor
         and/or the Internal Revenue Service pursuant to ERISA and the IRC,
         respectively, for each "plan year" (within the meaning of Section 3(39)
         of ERISA).

                  (i) Lien Matters. Promptly upon any Executive Officer of a
         Credit Party obtaining knowledge thereof, written notice of the
         incurrence or existence of any Lien on or against the Properties of any
         member of the Consolidated Group, other than a Permitted Lien.

                  (j) Other Information. With reasonable promptness upon any
         such request, such other information regarding the business, properties
         or financial condition of any member of the Consolidated Group as the
         Administrative Agent (on behalf of any Lender) or the Required Lenders
         may reasonably request.

         7.2 Preservation of Existence and Franchises. Except as a result of or
in connection with a merger or consolidation of a Subsidiary permitted under
Section 8.3 or an Asset Disposition involving the Voting Stock of a Subsidiary
permitted under Section 8.5, each Credit Party will do all things necessary to
preserve and keep in full force and effect its existence, rights, franchises and
authority.

         7.3 Books and Records. Each member of the Consolidated Group will keep
complete and accurate books and records of its transactions in accordance with
good accounting practices on the basis of GAAP (including the establishment and
maintenance of appropriate reserves).

                                       51
<PAGE>

         7.4 Compliance with Law. Each member of the Consolidated Group will
comply with all Requirements of Law applicable to it or its Properties, if
noncompliance with any such Requirement of Law could have a Material Adverse
Effect.

         7.5 Payment of Taxes and Other Indebtedness. Each member of the
Consolidated Group will pay and discharge (i) all taxes, assessments and
governmental charges or levies imposed upon it, or upon its income or profits,
or upon any of its Properties, before they shall become delinquent, (ii) all
lawful claims (including claims for labor, materials and supplies) which, if
unpaid, might give rise to a Lien upon any of its properties, and (iii) except
as prohibited hereunder, all of its other Indebtedness as it shall become due;
provided, however, that no member of the Consolidated Group shall be required to
pay any such tax, assessment, charge, levy, claim or Indebtedness (A) which is
being contested in good faith by appropriate proceedings and as to which
adequate reserves therefor have been established in accordance with GAAP or (B)
if the failure to make any such payment (x) would not give rise to an immediate
right to foreclose on a Lien securing such amounts and (y) could not have a
Material Adverse Effect.

         7.6 Insurance. Each member of the Consolidated Group will at all times
maintain in full force and effect insurance (including worker's compensation
insurance, liability insurance and casualty insurance) or appropriate risk
management programs in such amounts, covering such risks and liabilities and
with such deductibles or self-insurance retentions as are reasonable or
customary given the nature of its business, the circumstances and geographic
area in which such business is being conducted and the availability of insurance
coverage at commercially reasonable rates. The present insurance coverage and
risk management programs of the members of the Consolidated Group are outlined
as to carrier, policy number, expiration date, type and amount on Schedule 7.6.

         7.7 Maintenance of Property. Each member of the Consolidated Group will
maintain and preserve its Properties and equipment material to the conduct of
its business in good repair, working order and condition, normal wear and tear,
obsolescence and casualty and condemnation excepted, and will make, or cause to
be made, in such Properties and equipment from time to time all repairs,
renewals, replacements, extensions, additions, betterments and improvements
thereto as may be needed or proper, to the extent and in the manner customary
for companies in similar businesses.

         7.8 Performance of Obligations. Each member of the Consolidated Group
will perform all of its obligations under the terms of all material agreements,
indentures, mortgages, security agreements and other debt instruments to which
it is a party or by which it is bound, except where any failure to perform could
not reasonably be expected to have a Material Adverse Effect.

         7.9 Use of Proceeds. The Borrower will use the proceeds of Extensions
of Credit solely for the purposes set forth in Section 2.2(c).

         7.10 Audits/Inspections. Upon reasonable notice and during normal
business hours, each member of the Consolidated Group will permit
representatives appointed by the Administrative Agent, including independent
accountants, agents, attorneys, and appraisers, to visit and inspect its

                                       52
<PAGE>

books and records, facilities and other business assets (other than privileged
information and sensitive proprietary information), and to make photocopies or
photographs thereof and to write down and record any information such
representative obtains and shall permit the Administrative Agent or its
representatives to investigate and verify the accuracy of information provided
to the Administrative Agent or the Lenders and to discuss all such matters with
the officers, employees and, subject to the right of the representatives of the
Consolidated Group to be present, representatives of such Person.

         7.11 Financial Covenants.

                  (a) Consolidated Debt to EBITDA Ratio. The Parent will
         maintain a Consolidated Debt to EBITDA Ratio, calculated as of the last
         day of each fiscal quarter beginning September 30, 2002, of not greater
         than 2.75 to one (2.75:1.00).

                  (b) Consolidated Debt to Capitalization Ratio. The Parent will
         maintain a Consolidated Debt to Capitalization Ratio, calculated as of
         the last day of each fiscal quarter beginning September 30, 2002, of
         not greater than 40%.

                  (c) Consolidated Tangible Net Worth. The Parent will maintain
         at all times Consolidated Tangible Net Worth of not less than
         $750,000,000.

         7.12 Liquidity Maintenance. The Credit Parties will at all times
maintain in the Investment Portfolio, free and clear of any and all Liens,
assets consisting of cash, cash equivalents and Marketable Securities having a
fair market value, calculated on a pre-tax basis, of not less than $100,000,000.

         7.13 Additional Guarantors. The Borrower will cause each current or
future Material Subsidiary to guarantee the prompt payment and performance when
due of the Obligations in accordance with the terms and provisions of the
Subsidiary Guaranty. As soon as practicable and in any event within 30 days
after any Person becomes a direct or indirect Material Subsidiary, the Borrower
shall provide the Administrative Agent with written notice thereof and shall
cause such Person to execute a Subsidiary Guaranty Joinder Agreement in
substantially the same form as Schedule 1 to the Subsidiary Guaranty.
Notwithstanding the foregoing, the Lenders agree to release any Material
Subsidiary from its obligations under the Subsidiary Guaranty if the Capital
Stock of such Subsidiary is sold or transferred pursuant to an Asset Disposition
permitted under Section 8.5 or if such Subsidiary becomes a party to a merger or
consolidation in connection with a permitted Asset Disposition (such release to
be delivered upon the consummation of the relevant transaction).

                                       53
<PAGE>

                                  ARTICLE VIII
                               NEGATIVE COVENANTS

         The Borrower and the Parent hereby jointly and severally covenant and
agree that, so long as this Agreement is in effect or any amounts payable
hereunder or under any other Credit Document shall remain outstanding or any
Letter of Credit is outstanding, and until all of the Commitments hereunder
shall have terminated:

         8.1 Indebtedness. No member of the Consolidated Group will create,
incur or assume any Indebtedness if any Event of Default has occurred and is
continuing at the time such Indebtedness is to be created, incurred or assumed
or if any Event of Default would result from the creation, incurrence or
assumption of such Indebtedness.

         8.2 Liens. No member of the Consolidated Group will contract, create,
incur, assume or permit to exist, directly or indirectly, any Lien with respect
to any of its Property, whether now owned or after acquired, except for the
following types and categories of Liens ("Permitted Liens"):

                  (i) Liens (other than Liens created or imposed under ERISA)
         for taxes, assessments or governmental charges or levies not yet due or
         Liens for taxes being contested in good faith by appropriate
         proceedings for which adequate reserves determined in accordance with
         GAAP have been established (and as to which the Property subject to any
         such Lien is not yet subject to foreclosure, sale or loss on account
         thereof);

                  (ii) statutory Liens of landlords and Liens of carriers,
         warehousemen, mechanics, materialmen and suppliers and other Liens
         imposed by law or pursuant to customary reservations or retentions of
         title arising in the ordinary course of business, provided that such
         Liens secure only amounts not yet due and payable or, if due and
         payable, are unfiled and no other action has been taken to enforce the
         same or are being contested in good faith by appropriate proceedings
         for which adequate reserves determined in accordance with GAAP have
         been established (and as to which the Property subject to any such Lien
         is not yet subject to foreclosure, sale or loss on account thereof);

                  (iii) Liens (other than Liens created or imposed under ERISA)
         incurred or deposits made by any member of the Consolidated Group in
         the ordinary course of business in connection with workers'
         compensation, unemployment insurance and other types of insurance, or
         to secure the performance of tenders, statutory obligations, bids,
         leases, government contracts, performance and return-of-money bonds and
         other similar obligations (exclusive of obligations for the payment of
         Funded Debt);

                  (iv) Liens in connection with attachments or judgments
         (including judgment or appeal bonds), provided that the judgments
         secured shall, within 60 days after the entry

                                       54
<PAGE>

         thereof, have been discharged or execution thereof stayed pending
         appeal, or shall have been discharged within 60 days after the
         expiration of any such stay;

                  (v) easements, rights-of-way, covenants, restrictions
         (including zoning restrictions), defects or irregularities in title and
         other similar charges or encumbrances not, in any material respect,
         impairing the use of the Property for its intended purposes;

                  (vi) Liens arising from UCC financing statements (or
         equivalent filings, registrations or agreements in foreign
         jurisdictions) relating to, leases permitted by this Agreement;

                  (vii) Liens in favor of customs and revenue authorities
         arising as a matter of law to secure payment of customs duties in
         connection with the importation of goods;

                  (viii) Liens created in connection with trading activities in
         the Investment Portfolio and secured only by Marketable Securities in
         the Investment Portfolio, so long as the Borrower remains at all times
         in compliance with the requirements of Section 7.12;

                  (ix) normal and customary rights of setoff upon deposits of
         cash in favor of banks or other depository institutions;

                  (x) Liens of a collection bank arising under Section 4-210 of
         the UCC on items in the course of collection; and

                  (xi) other Liens (in addition to those permitted by the
         foregoing clauses (i) through (x)) securing Indebtedness at any time
         outstanding which in the aggregate does not exceed 5% of Consolidated
         Total Capitalization.

         8.3 Merger and Consolidation. No member of the Consolidated Group will
enter into any merger or consolidation (other than as contemplated by the
Spinoff/Merger or in connection with any other disposition of the oil and gas
exploration and production business of the Consolidated Group), except that:

                  (i) the Parent or Borrower may enter into any merger or
         consolidation with any Person which is not a Credit Party so long as
         (A) it is the surviving entity of such merger or consolidation and
         remains fully obligated under the Credit Documents for payment of the
         Obligations, and (B) no Default or Event of Default has occurred or is
         continuing or would be created by or result from such merger or
         consolidation, including a breach of the covenants set forth in
         Sections 7.11 and 7.12;

                  (ii) the Borrower and the Parent may merge or consolidate with
         or into each other, so long as no Default or Event of Default has
         occurred or is continuing or would be created by or result from such
         merger or consolidation, including a breach of the covenants set forth
         in Sections 7.11 and 7.12;

                                       55
<PAGE>

                  (iii) any Material Subsidiary may be party to a merger or
         consolidation with another Material Subsidiary or with the Borrower or
         the Parent so long as no Default or Event of Default has occurred or is
         continuing or would be created by or result from such merger or
         consolidation, including a breach of the covenants set forth in
         Sections 7.11 and 7.12, provided that, if the Borrower or the Parent is
         a party to such transaction, it shall be the surviving entity; and

                  (iv) a Subsidiary of the Borrower or of the Parent may enter
         into a transaction of merger or consolidation in connection with an
         Asset Disposition permitted under clauses (i), (viii) or (ix) of
         Section 8.5.

         8.4 Dissolution. No Credit Party will dissolve, liquidate or wind up
its affairs.

         8.5 Asset Dispositions. No member of the Consolidated Group will make
any Asset Disposition, except for the following:

                  (i) the transactions contemplated by the Spinoff/Merger (or,
         in the event the Spinoff/Merger is not consummated, any other sale,
         transfer or other disposition, whether by spinoff or otherwise, of the
         oil and gas exploration and production business of the Consolidated
         Group or the stock of Cimarex, Helmerich & Payne Energy Services, Inc.,
         or Mountain Acquisition Co.);

                  (ii) the sale of inventory in the ordinary course of business;

                  (iii) the sale, lease or other disposition of drillings rigs,
         machinery and other equipment which is no longer used or useful in the
         conduct of business or which is obsolete or worn-out;

                  (iv) the sale, lease, transfer or disposition of any Property
         by any member of the Consolidated Group to another member of the
         Consolidated Group, provided that, if the Property is transferred to a
         member of the Consolidated Group which is not a Credit Party and such
         transfer would cause it to become a Material Subsidiary, the Borrower
         shall cause such member to provide a Subsidiary Guaranty Joinder
         Agreement in accordance with the requirements of Section 7.13;

                  (v) use or operating agreements or short-term Operating Leases
         entered into by any member of the Consolidated Group as owner or lessor
         with respect to personal property in the ordinary course of business
         and on market terms;

                  (vi) Operating Leases entered into by any member of the
         Consolidated Group as owner or lessor with respect to office space in
         the ordinary course of business and on market terms;

                                       56
<PAGE>

                  (vii) sales and trades of securities (including the execution
         and performance of Forward Sale Contacts), as long as the Credit
         Parties remain at all times in compliance with the requirements of
         Section 7.12;

                  (viii) the sale or other disposition of any real property (or
         the sale or other disposition of the Capital Stock of a Subsidiary of
         the Borrower or the Parent formed for the purpose of effectuating the
         sale or other disposition of real property), so long as no Default or
         Event of Default has occurred or is continuing or would be created by
         or result from such sale or other disposition, including a breach of
         the covenants set forth in Sections 7.11 and 7.12; and

                  (ix) the sale, transfer, lease or other disposition (or any
         series of related sales, transfers, leases or other dispositions) of
         Properties of the Consolidated Group, including the Capital Stock of
         any Subsidiary of the Borrower or the Parent which is not a Credit
         Party, during any fiscal year which have an aggregate fair market value
         of less than $25,000,000, so long as, at the time of any such sale or
         other disposition, no Default or Event of Default has occurred or is
         continuing or would be created by or result from such sale or other
         disposition, including a breach of the covenants set forth in Sections
         7.11 and 7.12.

         8.6 Transactions with Affiliates. No member of the Consolidated Group
will enter into or permit to exist any transaction or series of transactions
with any officer, director, shareholder, Subsidiary or Affiliate of such Person
other than (i) extensions of credit and transfers of cash and assets by and
between Credit Parties, (ii) transactions permitted by this Agreement, (iii) to
the extent comparable with other members of the Borrower's industry peer group,
payment of compensation (including benefits) to and reimbursement of expenses of
officers and directors, including stock options and grant and stock option and
grant plans, directors' fees, directors' stock option or grant plans, and
directors' reimbursable expenses, and (iv) except as otherwise specifically
limited in this Agreement, other transactions which are entered into in the
ordinary course of such Person's business.

         8.7 Fiscal Year; Organizational Documents. No member of the
Consolidated Group will change its fiscal year or amend, modify or change any of
its Charter Documents in a manner adverse to the interests of the Lenders.

         8.8 Contingent Debt. No member of the Consolidated Group will assume,
incur or permit to exist any Contingent Debt other than (i) Contingent Debt
relating to Indebtedness of the Consolidated Group permitted under Section 8.1,
(ii) the endorsement of checks or other negotiable instruments in the ordinary
course of business, and (iii) Contingent Debt which does not exceed $10,000,000
in the aggregate at any time outstanding. No member of the Consolidated Group
will enter into any Hedging Agreement except in the ordinary course of business
to manage existing or reasonably anticipated risks.

                                       57
<PAGE>

                                   ARTICLE IX
                                EVENTS OF DEFAULT

         9.1 Events of Default. An Event of Default shall exist upon the
occurrence of any of the following specified events (each an "Event of
Default"):

                  (a) Non-Payment. There shall occur:

                           (i) a default in the payment when due of principal on
                  any of the Loans; or

                           (ii) a default in the payment when due of any
                  interest on any of the Loans, or of any reimbursement
                  obligations arising from drawings under Letters of Credit, or
                  of any Fees or other amounts owing hereunder, under any of the
                  other Credit Documents or in connection herewith or therewith,
                  and such default shall continue unremedied for a period of
                  five days; or

                  (b) Representations. Any representation, warranty or statement
         made or deemed to be made by the Borrower herein or any Credit Party in
         any of the other Credit Documents or in any statement or certificate
         delivered or required to be delivered pursuant hereto or thereto, shall
         prove untrue in any material respect on the date as of which it was
         made or deemed to have been made; or

                  (c)      Covenants.  There shall occur a

                           (i) default in the due performance or observance of
                  any term, covenant or agreement contained in Sections 7.2,
                  7.4, 7.9, 7.10, 7.11, 7.12 or 7.13 or in Sections 8.3, 8.4,
                  8.5, 8.6, 8.7 or 8.8, inclusive;

                           (ii) default in the due performance or observance of
                  any term, covenant or agreement contained in Sections 7.1(a),
                  (b), (c), (d) or (j) or in Sections 8.1 or 8.2 and such
                  default shall continue unremedied for a period of at least
                  five days after the earlier of an Executive Officer of a
                  Credit Party becoming aware of such default or notice thereof
                  by the Administrative Agent; or

                           (iii) default in the due performance or observance by
                  it of any term, covenant or agreement (other than those
                  referred to in subsection (a), (b), (c)(i) or (c)(ii) of this
                  Section 9.1) contained in this Agreement or any other Credit
                  Document and such default shall continue unremedied for a
                  period of at least 30 days after the earlier of an Executive
                  Officer of a Credit Party becoming aware of such default or
                  notice thereof by the Administrative Agent; or

                  (d) Other Credit Documents. Any Credit Document shall fail to
         be in full force and effect or to give the Administrative Agent and/or
         the Lenders the rights, powers

                                       58
<PAGE>

         and privileges purported to be created thereby, or any Credit Party
         shall so state in writing; or

                  (e) Guaranties. Except as the result of or in connection with
         a merger or disposition of a Subsidiary permitted under Section 8.3 or
         Section 8.5, the guaranty given by any Guarantor (including any Person
         which becomes a Guarantor after the Closing Date in accordance with
         Section 7.13) or any provision of Article XI or of the Subsidiary
         Guaranty shall cease to be in full force and effect, or any Guarantor
         (including any Person which becomes a Guarantor after the Closing Date
         in accordance with Section 7.13) or any Person acting by or on behalf
         of such Guarantor shall deny or disaffirm such Guarantor's obligations
         under Article XI or the Subsidiary Guaranty or any Guarantor shall
         default in the due performance or observance of any term, covenant or
         agreement on its part to be performed or observed pursuant to Article
         XI or the Subsidiary Guaranty; or

                  (f) Bankruptcy. Any Bankruptcy Event shall occur with respect
         to any member of the Consolidated Group; or

                  (g) Defaults under Other Agreements.

                           (i) The occurrence of an "Event of Default" or other
                  default and the expiration of any applicable grace period
                  applicable thereto under (A) the Bank One Agreement or (B) the
                  Medium Term Notes or any indenture or other agreement
                  governing the Medium Term Notes;

                           (ii) Any member of the Consolidated Group shall
                  default in the performance or observance (beyond the
                  applicable grace period with respect thereto, if any) of any
                  material obligation or condition of any contract or lease
                  material to the members of the Consolidated Group taken as a
                  whole, and such default has had or could reasonably be
                  expected to result in a Material Adverse Effect; or

                           (iii) With respect to any Indebtedness (other than
                  Indebtedness outstanding under this Agreement) in excess of
                  $5,000,000 in the aggregate for the members of the
                  Consolidated Group taken as a whole, (A) any member of the
                  Consolidated Group shall default in any payment (beyond the
                  applicable grace period with respect thereto, if any) with
                  respect to any such Indebtedness; (B) there shall occur and
                  continue a default in the observance or performance of any
                  provision relating to such Indebtedness or contained in any
                  instrument or agreement evidencing, securing or relating
                  thereto, or any other event or condition shall occur or
                  condition exist, the effect of which default or other event or
                  condition is to cause, or to permit the holder or holders of
                  such Indebtedness (or trustee or agent on behalf of such
                  holders) to cause, any such Indebtedness to become due prior
                  to its stated maturity; or (C) any such Indebtedness shall be
                  declared due and payable, or required to be prepaid other than
                  by a regularly scheduled required prepayment, prior to the
                  stated maturity thereof; or

                                       59
<PAGE>

                  (h) Judgments. One or more judgments or decrees shall be
         entered against one or more of the members of the Consolidated Group
         involving a liability of $20,000,000 or more in the aggregate (to the
         extent not paid or fully covered by insurance provided by a carrier who
         has acknowledged coverage and has the ability to perform) and any such
         judgments or decrees shall not have been vacated, discharged or stayed
         or bonded pending appeal within 30 days from the entry thereof; or

                  (i) ERISA. Any of the following events or conditions, if such
         event or condition could reasonably be expected to involve possible
         taxes, penalties, and other liabilities against one or more members of
         the Consolidated Group in an aggregate amount in excess of $5.0
         million: (i) any "accumulated funding deficiency," as such term is
         defined in Section 302 of ERISA and Section 412 of the IRC, whether or
         not waived, shall exist with respect to any Plan, or any lien shall
         arise on the assets of any member of the Consolidated Group or any
         ERISA Affiliate in favor of the PBGC or a Plan; (ii) an ERISA Event
         shall occur with respect to a Single Employer Plan, which is, in the
         reasonable opinion of the Administrative Agent, likely to result in the
         termination of such Plan for purposes of Title IV of ERISA; (iii) an
         ERISA Event shall occur with respect to a Multiemployer Plan or
         Multiple Employer Plan, which is, in the reasonable opinion of the
         Administrative Agent, likely to result in (A) the termination of such
         Plan for purposes of Title IV of ERISA, or (B) any member of the
         Consolidated Group or any ERISA Affiliate incurring any liability in
         connection with a withdrawal from, reorganization of (within the
         meaning of Section 4241 of ERISA), or insolvency (within the meaning of
         Section 4245 of ERISA) of such Plan; or (iv) any prohibited transaction
         (within the meaning of Section 406 of ERISA or Section 4975 of the IRC)
         or breach of fiduciary responsibility shall occur which may subject any
         member of the Consolidated Group or any ERISA Affiliate to any
         liability under Sections 406, 409, 502(i), or 502(l) of ERISA or
         Section 4975 of the IRC, or under any agreement or other instrument
         pursuant to which any member of the Consolidated Group or any ERISA
         Affiliate has agreed or is required to indemnify any person against any
         such liability; or

                  (j) Licenses. Any License necessary for any Credit Party to
         carry on its business shall be cancelled or revoked by the applicable
         Governmental Authority or shall be limited or altered by the applicable
         Governmental Authority in a manner which has had or could reasonably be
         expected to result in a Material Adverse Effect (unless such
         cancellation, revocation, limitation or alteration is being contested
         by such Credit Party in good faith by appropriate legal proceedings and
         the effectiveness of such action has been stayed pending the outcome of
         such proceedings), or any suit, action, proceeding or investigation
         shall be commenced or initiated seeking to cancel, revoke, limit or
         alter any License which is necessary for any Credit Party to carry on
         its business (unless such suit, action, proceeding or investigation is
         being contested or defended in good faith by appropriate legal
         proceedings, including appellate review, and the effectiveness of any
         proposed action has been stayed pending the outcome of such
         proceedings); or

                  (k) Ownership. There shall occur a Change of Control.

                                       60
<PAGE>

         9.2 Acceleration; Remedies. Upon the occurrence of an Event of Default,
and at any time thereafter unless and until such Event of Default has been
waived by the requisite Lenders (pursuant to the voting requirements of Section
12.6) or cured to the satisfaction of the requisite Lenders (pursuant to the
voting procedures in Section 12.6), the Administrative Agent may, and upon the
request and direction of the Required Lenders shall, by written notice to the
Borrower take any of the following actions:

                  (a) Termination of Commitments. Declare the Commitments
         terminated whereupon the Commitments shall be immediately terminated.

                  (b) Acceleration. Declare the unpaid principal of and any
         accrued interest in respect of all Loans, any reimbursement obligations
         arising from drawings under Letters of Credit and any and all other
         indebtedness or obligations of any and every kind owing by the Borrower
         to the Administrative Agent and/or any of the Lenders hereunder to be
         due whereupon the same shall be immediately due and payable without
         presentment, demand, protest or other notice of any kind, all of which
         are hereby waived by the Borrower. Amounts received after termination
         of the Commitments and acceleration of the maturity of the Loans and
         Obligations hereunder, shall be shared ratably among the Lenders as set
         forth in Section 9.4.

                  (c) Enforcement of Rights. Enforce any and all rights and
         interests created and existing under the Credit Documents and all
         rights of set-off.

Notwithstanding the foregoing, if an Event of Default specified in Section
9.1(f) shall occur with respect to any member of the Consolidated Group, then
the Commitments shall automatically terminate and all Loans, all reimbursement
obligations arising from drawings under Letters of Credit, all accrued interest
in respect thereof, all accrued and unpaid Fees and other indebtedness or
obligations owing to the Administrative Agent and/or any of the Lenders
hereunder by the Borrower automatically shall immediately become due and payable
without the giving of any notice or other action by the Administrative Agent or
the Lenders.

         9.3 Waiver of Event of Default. Notwithstanding anything contained in
Section 9.2, if at any time within 60 days after an acceleration of the Loans
pursuant to Section 9.2, (i) the Borrower shall pay all arrears of interest and
all payments on account of principal which shall have become due otherwise than
by acceleration (with interest on principal and, to the extent permitted by law,
on overdue interest, at the rates specified in this Agreement) and (ii) all
Events of Default and Defaults (other than non-payment of the principal of and
accrued interest on the Loans, in each case which is due and payable solely by
virtue of acceleration) shall be waived pursuant to Section 12.6, the Required
Lenders, by written notice to the Borrower, may at their option rescind and
annul the acceleration and its consequences; but such action shall not affect
any subsequent Event of Default or Default or impair any right consequent
thereon. The provisions of this Section 9.3 are intended merely to bind the
Lenders to a decision which may be made at the election of the Required Lenders
and are not intended to benefit the Borrower and do

                                       61
<PAGE>

not grant the Borrower the right to require the Lenders to rescind or annual any
acceleration hereunder, even if the conditions set forth herein are met.

         9.4 Allocation of Payments After Event of Default. Notwithstanding any
other provisions of this Agreement to the contrary, after the occurrence and
during the continuance of an Event of Default, all amounts collected or received
on or in respect of the Obligations (or other amounts owing under the Credit
Documents in connection therewith) shall be paid over or delivered as follows:

                  FIRST, to the payment of all reasonable out-of-pocket costs
         and expenses (including reasonable attorneys' fees) of the
         Administrative Agent in connection with enforcing the rights and
         remedies of the Lenders under the Credit Documents and any protective
         advances made with respect thereto;

                  SECOND, to payment of any fees owed to the Administrative
         Agent hereunder;

                  THIRD, to the payment of all reasonable out-of-pocket costs
         and expenses (including reasonable attorneys' fees) of each of the
         Lenders hereunder in connection with enforcing its rights under the
         Credit Documents or otherwise with respect to the Obligations owing to
         such Lender;

                  FOURTH, to the payment of all accrued interest and fees on or
         in respect of the Obligations;

                  FIFTH, to the payment of the outstanding principal amount of
         the Obligations hereunder (including the payment or cash
         collateralization of the outstanding LOC Obligations);

                  SIXTH, to all other Obligations hereunder and other
         obligations which shall have become due and payable under the Credit
         Documents otherwise and not repaid pursuant to clauses "FIRST" through
         "FIFTH" above; and

                  SEVENTH, to the payment of the surplus, if any, to the
         Borrower or such other Persons as may be lawfully entitled to receive
         such surplus.

In carrying out the foregoing, (i) amounts received shall be applied in the
order provided until exhausted prior to application to the next succeeding
category; and (ii) except as otherwise provided, the Lenders shall receive
amounts ratably in accordance with their respective pro rata share (based on the
proportion that the then outstanding Obligations held by such Lenders bears to
the aggregate amount of Obligations then outstanding) of amounts available to be
applied pursuant to clauses "THIRD," "FOURTH," "FIFTH" and "SIXTH"; and (iii) to
the extent that any amounts available for distribution pursuant to clause
"FIFTH" above are attributable to the issued but undrawn amount of outstanding
Letters of Credit, such amounts shall be held by the Administrative Agent in a
cash collateral account and applied (A) first, to reimburse the Issuing Lender
for any drawings under such Letters of Credit and (B) then, following the
expiration of all

                                       62
<PAGE>

Letters of Credit, to all other obligations of the types described in clauses
"FOURTH" and "FIFTH" above in the manner provided in this Section 9.4

                                    ARTICLE X
                                AGENCY PROVISIONS

         10.1 Appointment, Powers and Immunities. Each Lender hereby irrevocably
appoints and authorizes the Administrative Agent to act as its agent under this
Agreement and the other Credit Documents with such powers and discretion as are
specifically delegated to the Administrative Agent by the terms of this
Agreement and the other Credit Documents, together with such other powers as are
reasonably incidental thereto. Each Lender further authorizes and directs the
Administrative Agent to execute and deliver releases (or similar agreements) to
give effect to the provisions of this Agreement and the other Credit Documents,
including specifically the provisions of Section 8.5 hereof. The Administrative
Agent (which term as used in this sentence and in Section 10.5 and the first
sentence of Section 10.6 hereof shall include its Affiliates and its own and its
Affiliates' officers, directors, employees, and agents): (i) shall not have any
duties or responsibilities except those expressly set forth in this Agreement
and shall not be a trustee or fiduciary for any Lender; (ii) shall not be
responsible to the Lenders for any recital, statement, representation, or
warranty (whether written or oral) made by a member of the Consolidated Group or
other Lender in or in connection with any Credit Document or any certificate or
other document referred to or provided for in, or received by any of them under,
any Credit Document, or for the value, validity, effectiveness, genuineness,
enforceability, or sufficiency of any Credit Document, or any other document
referred to or provided for therein or for any failure by any Credit Party or
any other Person to perform any of its obligations thereunder; (iii) shall not
be responsible for or have any duty to ascertain, inquire into, or verify the
performance or observance of any covenants or agreements by any Credit Party or
the satisfaction of any condition or to inspect the property (including the
books and records) of any Credit Party or any of its Subsidiaries or Affiliates;
(iv) shall not be required to initiate or conduct any litigation or collection
proceedings under any Credit Document, except as expressly provided under the
Credit Documents; and (v) shall not be responsible for any action taken or
omitted to be taken by it under or in connection with any Credit Document,
except for its own gross negligence or willful misconduct. The Administrative
Agent may employ agents and attorneys-in-fact and shall not be responsible for
the negligence or misconduct of any such agents or attorneys-in-fact selected by
it with reasonable care.

         10.2 Reliance by Administrative Agent. The Administrative Agent shall
be entitled to rely upon any certification, notice, instrument, writing, or
other communication (including any thereof by telephone or telecopy) believed by
it to be genuine and correct and to have been signed, sent or made by or on
behalf of the proper Person or Persons, and upon advice and statements of legal
counsel (including counsel for any Credit Party), independent accountants, and
other experts selected by the Administrative Agent. The Administrative Agent may
deem and treat the payee of any Note as the holder thereof for all purposes
hereof unless and until the Administrative Agent receives and accepts an
Assignment and Acceptance executed in accordance with Section 12.3(b) hereof. As
to any matters not expressly provided for by this Agreement, the Administrative
Agent shall not be required to exercise any discretion or take any

                                       63
<PAGE>

action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of
the Required Lenders, and such instructions shall be binding on all of the
Lenders; provided, however, that the Administrative Agent shall not be required
to take any action that exposes the Administrative Agent to personal liability
or that is contrary to any Credit Document or applicable law or unless it shall
first be indemnified to its satisfaction by the Lenders against any and all
liability and expense which may be incurred by it by reason of taking any such
action.

         10.3 Defaults. The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of a Default or Event of Default unless
the Administrative Agent has received written notice from a Lender or a Credit
Party specifying such Default or Event of Default and stating that such notice
is a "Notice of Default." In the event that the Administrative Agent receives
such a notice of the occurrence of a Default or Event of Default, the
Administrative Agent shall give prompt notice thereof to the Lenders. The
Administrative Agent shall (subject to Section 12.2) take such action with
respect to such Default or Event of Default as shall reasonably be directed by
the Required Lenders (or such other Lenders as required by Section 12.6),
provided that, unless and until the Administrative Agent shall have received
such directions, the Administrative Agent may (but shall not be obligated to)
take such action, or refrain from taking such action, with respect to such
Default or Event of Default as it shall deem advisable in the best interest of
the Lenders.

         10.4 Rights as a Lender. With respect to its Commitment and the Loans
made by it, Bank of Oklahoma (and any successor acting as Administrative Agent)
in its capacity as a Lender hereunder shall have the same rights and powers
hereunder as any other Lender and may exercise the same as though it were not
acting as the Administrative Agent, and the term "Lender" or "Lenders" shall,
unless the context otherwise indicates, include the Administrative Agent in its
individual capacity. Bank of Oklahoma (and any successor acting as
Administrative Agent) and its Affiliates may (without having to account therefor
to any Lender) accept deposits from, lend money to, make investments in, provide
services to, and generally engage in any kind of lending, trust, or other
business with any Credit Party or any of its Subsidiaries or Affiliates as if it
were not acting as Administrative Agent, and Bank of Oklahoma (and any successor
acting as Administrative Agent) and its Affiliates may accept fees and other
consideration from any Credit Party or any of its Subsidiaries or Affiliates for
services in connection with this Agreement or otherwise without having to
account for the same to the Lenders.

         10.5 Indemnification. The Lenders agree to indemnify the Administrative
Agent (to the extent not reimbursed under Section 12.5 hereof, but without
limiting the obligations of the Borrower under Section 12.5) ratably (in
accordance with their respective Revolving Commitments (or, if the Revolving
Commitments have been terminated, their respective interests in the outstanding
Loans and Participation Interests in Letters of Credit) for any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses (including reasonable attorneys' fees), or disbursements of any
kind and nature whatsoever that may be imposed on, incurred by or asserted
against the Administrative Agent in such capacity (including by any Lender) in
any way relating to or arising out of any Credit Document or the transactions
contemplated thereby or any action taken or omitted by the Administrative Agent
under any

                                       64
<PAGE>

Credit Document; provided that no Lender shall be liable for any of the
foregoing to the extent they arise from the gross negligence or willful
misconduct of the Person to be indemnified. Without limitation of the foregoing,
each Lender agrees to reimburse the Administrative Agent promptly upon demand
for its ratable share of any costs or expenses payable by the Borrower under
Section 12.5, to the extent that the Administrative Agent is not promptly
reimbursed for such costs and expenses by the Borrower. The agreements in this
Section 10.5 shall survive the repayment of the Loans, LOC Obligations and other
obligations under the Credit Documents and the termination of the Commitments
hereunder.

         10.6 Non-Reliance on Administrative Agent and Other Lenders. Each
Lender agrees that it has, independently and without reliance on the
Administrative Agent or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own credit analysis of the
Credit Parties and their Subsidiaries and decision to enter into this Agreement
and that it will, independently and without reliance upon the Administrative
Agent or any other Lender, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own analysis and
decisions in taking or not taking action under the Credit Documents. Except for
notices, reports, and other documents and information expressly required to be
furnished to the Lenders by the Administrative Agent hereunder, the
Administrative Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the affairs, financial
condition, or business of any Credit Party or any of its Subsidiaries or
Affiliates that may come into the possession of the Administrative Agent or any
of its Affiliates.

         10.7 Successor Administrative Agent. The Administrative Agent may
resign at any time by giving notice thereof to the Lenders and the Credit
Parties. Upon any such resignation, the Required Lenders shall have the right to
appoint a successor Administrative Agent. If no successor Administrative Agent
shall have been so appointed by the Required Lenders and shall have accepted
such appointment within 30 days after the retiring Administrative Agent's giving
of notice of resignation, then the retiring Administrative Agent may, on behalf
of the Lenders, appoint a successor Administrative Agent which shall be a
commercial bank organized under the laws of the United States having combined
capital and surplus of at least $100,000,000. Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor, such successor
shall thereupon succeed to and become vested with all the rights, powers,
discretion, privileges, and duties of the retiring Administrative Agent, and the
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder. After any retiring Administrative Agent's resignation
hereunder as Administrative Agent, the provisions of this Article X shall
continue in effect for its benefit in respect of any actions taken or omitted to
be taken by it while it was acting as Administrative Agent.

                                   ARTICLE XI
                                 PARENT GUARANTY

         11.1 Guaranty. The Parent unconditionally and irrevocably guarantees
the full and punctual payment of all existing and future Obligations of the
Borrower to the Lenders or the Administrative Agent arising under or in
connection with or evidenced by this Agreement or any

                                       65
<PAGE>

other Credit Document, as and when the same shall become due and payable,
whether at the stated maturity, upon acceleration or otherwise, in accordance
with the terms hereof and thereof. If the Borrower fails to pay when due any
Obligation guaranteed hereby, the Parent unconditionally agrees to cause such
payment to be made punctually as and when the same shall become due and payable,
whether at the stated maturity, upon acceleration or otherwise.

         11.2 Guarantee Unconditional. The obligations of the Parent under this
Article XI are absolute and unconditional. Without limiting the generality of
the foregoing, the obligations of the Parent under this Article XI shall not be
impaired, released, discharged or otherwise affected by:

                  (i) any extension, renewal, settlement, compromise, waiver or
         release in respect of any obligation of the Borrower or any other
         Credit Party under this Agreement or any other Credit Document, by
         operation of law or otherwise;

                  (ii) any modification, amendment or waiver of or supplement to
         this Agreement or any Credit Document;

                  (iii) any release, impairment or invalidity of any guarantee
         or other liability of any other Credit Party or third party for any
         obligation of the Borrower under this Agreement or any other Credit
         Document;

                  (iv) any change in the corporate existence, structure or
         ownership of the Borrower or any other Credit Party or any insolvency,
         bankruptcy, reorganization or other similar proceeding affecting the
         Borrower or any other Credit Party;

                  (v) the existence of any claim, set-off or other rights which
         the Parent may have at any time against the Borrower or any other
         Credit Party, the Administrative Agent, any Lender or any other Person,
         whether or not arising in connection with the Revolving Loans and this
         Agreement or any unrelated transaction;

                  (vi) any invalidity or unenforceability relating to or against
         the Borrower or any other Credit Party for any reason of this Agreement
         or any other Credit Document, or any provision of applicable law or
         regulation purporting to prohibit the payment by any other Credit Party
         of any amount payable by it under this Agreement or any other Credit
         Document; or

                  (vii) any other act or omission to act or delay of any kind by
         any other Credit Party, any Lender or any other Person or any other
         circumstance which might, but for the provisions of this Section 11.2,
         constitute a legal or equitable discharge of the Parent's obligations
         under this Article XI.

         11.3 Discharge Only Upon Payment in Full; Reinstatement in Certain
Circumstances. The Parent's obligations under this Article XI constitute a
continuing guaranty and shall remain in full force and effect until the
Revolving Commitments shall have been terminated, all Letters

                                       66
<PAGE>

of Credit shall have expired or been terminated, and all amounts payable under
this Agreement and the Credit Documents shall have been indefeasibly paid in
full. If at any time any amount payable by the Borrower under this Agreement or
any other Credit Document is rescinded or must be otherwise restored or returned
upon the insolvency, bankruptcy or reorganization of the Borrower or any other
Credit Party or otherwise, the Parent's obligations under this Article XI with
respect to such payment shall be reinstated at such time as though such payment
had become due but had not been made at such time.

         11.4 Waiver. The Parent irrevocably waives acceptance hereof,
presentment, demand, protest and any notice not provided for herein, as well as
any requirement that at any time any action be taken by any Person against the
Borrower or other Credit Party or any other Person.

         11.5 Subrogation. If the Parent makes any payment under this Article XI
with respect to the obligations of the Borrower, the Parent shall be subrogated
to the rights of the payee against the Borrower with respect to the portion of
such obligations paid by the Parent; provided that the Parent shall not enforce
any payment by way of subrogation or contribution against the Borrower so long
as any amount payable under this Agreement or any other Credit Document remains
unpaid.

         11.6 Stay of Acceleration. If acceleration of the time for payment of
any amount payable by the Borrower under this Agreement or any other Credit
Document is stayed upon the insolvency, bankruptcy or reorganization of the
Borrower, all such amounts otherwise subject to acceleration under the terms of
such Credit Document shall nonetheless be payable by the Parent under this
Article XI forthwith on demand by the Administrative Agent made at the request
of the Required Lenders.

         11.7 Successors and Assigns. The guarantee by the Parent under this
Article XI is for the benefit of the Administrative Agent and the Lenders, and
their respective successors and assigns. If any Revolving Loans, participations
in Letters of Credit or Swingline Loans or other amounts payable under this
Agreement and the other Credit Documents are assigned pursuant to Section
12.3(b), the rights under this Article XI, to the extent applicable to the
indebtedness so assigned, shall be transferred with such indebtedness.

                                   ARTICLE XII
                               GENERAL PROVISIONS

         12.1 Notices. Except as otherwise expressly provided herein, all
notices and other communications shall have been duly given and shall be
effective (a) when delivered, (b) when transmitted via telecopy (or other
facsimile device) to the number set out below, (c) the Business Day following
the day on which the same has been delivered prepaid to a reputable national
overnight air courier service, or (d) the third Business Day following the day
on which the same is sent by certified or registered mail, postage prepaid, in
each case to the respective parties at the address, in the case of the Borrower
and the Administrative Agent, set forth below, and, in the case of the Lenders,
set forth on the signature pages hereto, or at such other address as such party
may specify by written notice to the other parties hereto:

                                       67
<PAGE>

         If to the Borrower:

                           Helmerich & Payne International Drilling Co.
                           c/o Helmerich & Payne, Inc.
                           Utica at Twenty-First
                           Tulsa, Oklahoma 74114
                           Fax:  (918) 743-2671
                           Attn:    Chief Financial Officer

                           with a copy to:

                           Helmerich & Payne International Drilling Co.
                           c/o Helmerich & Payne, Inc.
                           Utica at Twenty-First
                           Tulsa, Oklahoma 74114
                           Fax:  (918) 743-2671
                           Attention: General Counsel

         If to the Administrative Agent:

                           Bank of Oklahoma, N.A.
                           Bank of Oklahoma Tower
                           One Williams Center
                           Tulsa, Oklahoma  74192
                           Attn: John M. Tyson, Asst. Vice President
                           Fax:  (918) 280-3366

         12.2 Right of Set-Off; Adjustments. Upon the occurrence and during the
continuance of any Event of Default, each Lender (and each of its Affiliates) is
hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held and other indebtedness at
any time owing by such Lender (or any of its Affiliates) to or for the credit or
the account of the Borrower against any and all of the obligations of the
Borrower now or hereafter existing under this Agreement, under the Notes, under
any other Credit Document or otherwise, irrespective of whether such Lender
shall have made any demand under hereunder or thereunder and although such
obligations may be unmatured and regardless of the adequacy of any other
collateral securing the Obligations. Each Credit Party hereby irrevocably waives
any obligation that any Lender may have to any set-off based on the failure of
any Agent or any Lender to exercise any rights that it may have with respect to
any other collateral prior to the exercise of any set-off. Each Lender agrees
promptly to notify the Borrower after any such set-off and application made by
such Lender; provided, however, that the failure to give such notice shall not
affect the validity of such set-off and application. The rights of each Lender
under this Section 12.2 are in addition to other rights and remedies (including
other rights of set-off) that such Lender may have.

                                       68
<PAGE>

         12.3     Benefit of Agreement.

                  (a) Parties to Agreement. This Agreement shall be binding upon
         and inure to the benefit of and be enforceable by the parties hereto
         and their respective successors and assigns; provided that the Borrower
         may not assign or transfer any of its interests and obligations without
         prior written consent of each of the Lenders; provided further that the
         rights of each Lender to transfer, assign or grant participations in
         its rights and/or obligations hereunder shall be limited as set forth
         in this Section 12.3.

                  (b) Assignment by a Lender. Each Lender may assign to one or
         more Eligible Assignees all or a portion of its rights and obligations
         under this Agreement (including all or a portion of its Loans, its
         Notes, Commitments and Participations); provided, however, that

                           (i) each such assignment shall be to one or more
                  Eligible Assignees;

                           (ii) except in the case of an assignment to an
                  existing Lender, an Affiliate of an existing Lender or any
                  fund that invests in bank loans or similar extensions of
                  credit and is advised or managed by a Lender (or an Affiliate
                  of a Lender) or an investment advisor (or any Affiliate to an
                  investment advisor) to an existing Lender or an assignment of
                  all of a Lender's rights and obligations under this Agreement,
                  any such partial assignment shall be in an amount at least
                  equal to $1,000,000 (or, if less, the remaining amount of the
                  Commitment being assigned by such Lender) or such lesser
                  amount agreed to by the Borrower and the Administrative Agent;

                           (iii) each such assignment shall consist of the same
                  percentage of all of the Obligations and Commitments of the
                  existing Lender hereunder; and

                           (iv) the parties to such assignment shall execute and
                  deliver to the Administrative Agent for its acceptance an
                  Assignment and Acceptance in the form of Exhibit "H" hereto,
                  together with any Note subject to such assignment and a
                  processing fee of $3,500; provided, no such fee shall be
                  payable in respect of assignments to any Affiliate of a Lender
                  or a fund that invests in bank loans or similar extensions of
                  credit and is advised or managed by a Lender (or an Affiliate
                  of a Lender) or an investment advisor (or any Affiliate to an
                  investment advisor) to an existing Lender.

         Upon execution, delivery, and acceptance of such Assignment and
         Acceptance, the assignee thereunder shall be a party hereto and, to the
         extent of such assignment, have the obligations, rights, and benefits
         of a Lender hereunder and the assigning Lender shall, to the extent of
         such assignment, relinquish its rights and be released from its
         obligations under this Agreement. Upon the consummation of any
         assignment pursuant to this Section 12.3(b), the Administrative Agent
         and the Borrower shall make appropriate

                                       69
<PAGE>

         arrangements so that, if required, new Notes are issued to the assignor
         and the assignee. Upon or prior to the consummation of any assignment
         to an assignee that is not already a Lender hereunder pursuant to this
         Section 12.3(b), such assignee shall deliver to the Borrower and the
         Administrative Agent certification as to exemption from deduction or
         withholding of taxes in accordance with Section 4.6. To the extent that
         an assignment of all or any portion of a Lender's rights and
         obligations under this Agreement (including all or a portion of its
         Loans, its Note and its Commitment) pursuant to this Section 12.3(b)
         would, due to circumstances existing at the time of such assignment,
         result in increased costs under Section 4.6 from those being charged by
         the assigning Lender prior to such assignment, then the Borrower shall
         not be obligated to pay such increased costs (although the Borrower
         shall be obligated to pay other increased costs resulting from changes
         after the date of such assignment).

                  (c) Register. The Administrative Agent shall maintain at its
         address referred to in Section 12.1 a copy of each Assignment and
         Acceptance delivered to and accepted by it and a register for the
         recordation of the names and addresses of the Lenders and the
         Commitment of, and principal amount of the Loans owing to, each Lender
         from time to time (the "Register"). The entries in the Register shall
         be conclusive and binding for all purposes, absent manifest error, and
         the Borrower, the Administrative Agent and the Lenders may treat each
         Person whose name is recorded in the Register as a Lender hereunder for
         all purposes of this Agreement. The Register shall be available for
         inspection by the Borrower or any Lender at any reasonable time and
         from time to time upon reasonable prior notice. Any assignment of any
         Loan or other obligations shall be effective only upon an entry with
         respect thereto being made in the Register.

                  (d) Sale of Participations. Each Lender may, without notice to
         or consent of the Borrower, the Administrative Agent, sell
         participations to one or more Persons in all or a portion of its
         rights, obligations or rights and obligations under this Agreement
         (including all or a portion of its Commitment or its Loans); provided,
         however, that (i) such Lender's obligations under this Agreement shall
         remain unchanged, (ii) such Lender shall remain solely responsible to
         the other parties hereto for the performance of such obligations, (iii)
         the participant shall be entitled to the benefit of the yield
         protection provisions contained in Sections 4.2 through 4.7, inclusive,
         and the right of set-off contained in Section 12.2, provided, however,
         the participant shall not be entitled to receive any greater amount
         pursuant to Sections 4.2 through 4.6, inclusive, than the participating
         Lender would have been entitled to receive in respect of the amount of
         the participation sold by such participating Lender to such participant
         had no such participation occurred, and (v) the Credit Parties shall
         continue to deal solely and directly with such Lender in connection
         with such Lender's rights and obligations under this Agreement, and
         such Lender shall retain the sole right to enforce the obligations of
         the Credit Parties relating to the Loans and other obligations owing to
         such Lender and to approve any amendment, modification, or waiver of
         any provision of this Agreement (other than amendments, modifications,
         or waivers (i) decreasing the amount of principal of or the rate at
         which interest is payable on such Loans or Notes, (ii) extending any
         scheduled principal payment date or date fixed for the payment of
         interest on such Loans

                                       70
<PAGE>

         or Notes, (iii) extending its Commitment, or (iv) except as the result
         of or in connection with a merger of a member of the Consolidated Group
         permitted under Section 8.3, release the Borrower or substantially all
         of the other Credit Parties from its or their obligations under the
         Credit Documents).

                  (e) Certain Permitted Assignments. Notwithstanding any other
         provision set forth in this Agreement, any Lender may, without notice
         to or consent of the Borrower or the Administrative Agent, at any time
         assign and pledge all or any portion of its Loans and its Note (i) to
         any Federal Reserve Bank as collateral security pursuant to Regulation
         A and any Operating Circular issued by such Federal Reserve Bank or
         (ii) in the case of any Lender which has made Loans hereunder and is a
         fund that invests in bank loans or similar extensions of credit, any
         such Lender may assign or pledge all or any portion of its Loans and
         its Note to any holders of obligations owed, or securities issued, by
         such fund, as security for such obligations or securities, or to any
         trustee for, or any other representative of, such holders. No such
         assignment shall release the assigning Lender from its obligations
         hereunder.

                  (f) Furnishing of Information. Any Lender may furnish any
         information concerning the members of the Consolidated Group in the
         possession of such Lender from time to time to assignees and
         participants (including prospective assignees and participants),
         subject, however, to the provisions of Section 12.16 hereof.

         12.4 No Waiver; Remedies Cumulative. No failure or delay on the part of
the Administrative Agent or any Lender in exercising any right, power or
privilege hereunder or under any other Credit Document and no course of dealing
between the Administrative Agent or any Lender and any of the Credit Parties
shall operate as a waiver thereof; nor shall any single or partial exercise of
any right, power or privilege hereunder or under any other Credit Document
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege hereunder or thereunder. The rights and remedies
provided herein are cumulative and not exclusive of any rights or remedies which
the Administrative Agent or any Lender would otherwise have. No notice to or
demand on any Credit Party in any case shall entitle the Credit Parties to any
other or further notice or demand in similar or other circumstances or
constitute a waiver of the rights of the Administrative Agent or the Lenders to
any other or further action in any circumstances without notice or demand.

         12.5 Expenses; Indemnification.

                  (a) Reimbursement of Expenses. The Borrower agrees to pay on
         demand all costs and expenses reasonably incurred by the Administrative
         Agent in connection with the syndication, preparation, execution,
         delivery, administration, modification, and amendment of this
         Agreement, the other Credit Documents, and the other documents to be
         delivered hereunder, including the reasonable fees and expenses of
         counsel for the Administrative Agent with respect thereto and with
         respect to advising the Administrative Agent as to its rights and
         responsibilities under the Credit Documents. The Borrower further
         agrees to pay on demand all costs and expenses reasonably incurred by
         the

                                       71
<PAGE>

         Administrative Agent and the Lenders, if any (including reasonable
         attorneys' fees and expenses), in connection with the enforcement
         (whether through negotiations, legal proceedings, or otherwise) of the
         Credit Documents and the other documents to be delivered thereunder.

                  (b) Indemnification. The Borrower agrees to indemnify and hold
         harmless the Administrative Agent and each Lender and each of their
         Affiliates and their respective officers, directors, trustees,
         employees, agents, and advisors (each, an "Indemnified Party") from and
         against any and all claims, damages, losses, liabilities, costs, and
         expenses (including reasonable attorneys' fees, disbursements and other
         charges) that may be incurred by or asserted or awarded against any
         Indemnified Party, in each case arising out of or in connection with or
         by reason of (including in connection with any investigation,
         litigation, or proceeding and regardless of whether such Indemnified
         Party is a party thereto or preparation of defense in connection
         therewith) the Credit Documents or any of the transactions contemplated
         herein or the actual or proposed use of the proceeds of the Loans,
         except to the extent such claim, damage, loss, liability, cost, or
         expense is found in a final, non-appealable judgment by a court of
         competent jurisdiction to have resulted from such Indemnified Party's
         bad faith, gross negligence or willful misconduct. In the case of an
         investigation, litigation or other proceeding to which the indemnity in
         this Section 12.5 applies, such indemnity shall be effective whether or
         not such investigation, litigation or proceeding is brought by any of
         the Credit Parties, their respective directors, shareholders or
         creditors or an Indemnified Party or any other Person or any
         Indemnified Party is otherwise a party thereto and whether or not the
         transactions contemplated hereby are consummated. The Borrower agrees
         not to assert any claim against the Administrative Agent, any Lender,
         any of their Affiliates, or any of their respective directors,
         officers, employees, attorneys, agents, and advisors, on any theory of
         liability, for special, indirect, consequential, or punitive damages
         arising out of or otherwise relating to the Credit Documents, any of
         the transactions contemplated herein or the actual or proposed use of
         the proceeds of the Loans.

                  (c) Survival. Without prejudice to the survival of any other
         agreement of the Borrower hereunder, the agreements and obligations of
         the Borrower contained in this Section 12.5 shall survive the repayment
         of the Loans, LOC Obligations and other obligations under the Credit
         Documents and the termination of the Commitments hereunder.

         12.6 Amendments, Waivers and Consents. Neither this Agreement nor any
other Credit Document nor any of the terms hereof or thereof (including any
condition precedent to any Extension of Credit set forth in Section 5.2 or 5.3)
may be amended, changed, waived, discharged or terminated unless such amendment,
change, waiver, discharge or termination is in writing entered into by, or
approved in writing by, the Required Lenders and the Borrower, provided,
however, that:

                  (a) without the consent of each Lender affected thereby,
         neither this Agreement nor any other Credit Document may be amended to:

                                       72
<PAGE>

                           (i) extend the Revolving Commitment Termination Date
                  or the Facility Maturity Date (whether in accordance with
                  Section 2.5(c) or otherwise), or the final maturity of any
                  Loan or any reimbursement obligation, or any portion thereof,
                  arising from drawings under Letters of Credit;

                           (ii) reduce the rate or extend the time of payment of
                  interest (other than as a result of waiving the applicability
                  of any post-default increase in interest rates) thereon or
                  Fees hereunder;

                           (iii) reduce or waive the principal amount of any
                  Loan or of any reimbursement obligation, or any portion
                  thereof, arising from drawings under Letters of Credit;

                           (iv) increase the Commitment of a Lender over the
                  amount thereof in effect (it being understood and agreed that
                  a waiver of any Default or Event of Default or mandatory
                  reduction in the Commitments shall not constitute a change in
                  the terms of any Commitment of any Lender);

                           (v) release either the Borrower or the Parent from
                  its obligations under the Credit Documents or, except as
                  provided in the last sentence of Section 7.13, release any
                  Material Subsidiary from its obligations under the Credit
                  Documents;

                           (vi) amend, modify or waive any provision of this
                  Section 12.6 or Sections 2.8, 3.5, 3.6, 4.1 through 4.8,
                  9.1(a), 12.2, 12.3, 12.5 or 12.9 or the last sentence of
                  Section 2.5(c);

                           (vii) reduce any percentage specified in, or
                  otherwise modify, the definition of Required Lenders, or
                  change any provision requiring the consent of all Lenders; or

                           (viii) consent to the assignment or transfer by the
                  Borrower or all or substantially all of the other Credit
                  Parties of any of its or their rights and obligations under
                  (or in respect of) the Credit Documents except as permitted
                  thereby.

                  (b) without the consent of the Administrative Agent, no
         provision of Article X may be amended;

                  (c) without the consent of the Issuing Lender, no provision of
         Section 2.6 may be amended; and

                  (d) without the consent of the Swingline Lender, no provision
         of Section 2.7 may be amended.

                                       73
<PAGE>

Notwithstanding the fact that the consent of all the Lenders is required in
certain circumstances as set forth above, (x) each Lender is entitled to vote as
such Lender sees fit on any bankruptcy reorganization plan that affects the
Loans, and each Lender acknowledges that the provisions of Section 1126(c) of
the Bankruptcy Code supersedes the unanimous consent provisions set forth
herein. In the event that any fee is imposed by the Lenders as a condition to or
in connection with any amendment, modification, interpretation, termination,
waiver or consent with respect to this Agreement or any of the other Credit
Documents, such fee shall be paid to the Lenders in accordance with their
respective Percentages.

         12.7 Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be an original,
but all of which shall constitute one and the same instrument. It shall not be
necessary in making proof of this Agreement to produce or account for more than
one such counterpart for each of the parties hereto. Delivery by facsimile by
any of the parties hereto of an executed counterpart of this Agreement shall be
as effective as an original executed counterpart hereof and shall be deemed a
representation that an original executed counterpart hereof will be delivered.

         12.8 Headings. The headings of the sections and subsections hereof are
provided for convenience only and shall not in any way affect the meaning or
construction of any provision of this Agreement.

         12.9 Survival. All indemnities set forth herein, including those set
forth in Sections 2.6(e), 4.6, 4.7, 10.5 and 12.5, shall survive the execution
and delivery of this Agreement, the making of the Loans, the issuance of the
Letters of Credit, the repayment of the Loans, LOC Obligations and other
obligations under the Credit Documents and the termination of the Commitments
hereunder, and all representations and warranties made by the Borrower herein
shall survive delivery of the Notes and the making of the Loans hereunder.

         12.10 Governing Law. THIS AGREEMENT AND, UNLESS OTHERWISE EXPRESSLY
PROVIDED THEREIN, THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF OKLAHOMA.

         12.11 Waiver of Jury Trial. TO THE EXTENT PERMITTED BY LAW, EACH OF THE
ADMINISTRATIVE AGENT, THE LENDERS, THE BORROWER AND THE PARENT HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OF THE OTHER
CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY.

         12.12 Severability. If any provision of any of the Credit Documents is
determined to be illegal, invalid or unenforceable, such provision shall be
fully severable and the remaining provisions shall remain in full force and
effect and shall be construed without giving effect to the illegal, invalid or
unenforceable provisions.

                                       74
<PAGE>

         12.13 Entire Agreement. This Agreement together with the other Credit
Documents represent the entire agreement of the parties hereto and thereto, and
supersede all prior agreements and understandings, oral or written, if any,
including any commitment letters or correspondence relating to the Credit
Documents or the transactions contemplated herein and therein. To the extent
that there is any irreconcilable conflict or inconsistency between any provision
of this Agreement and any provision of any other Credit Document, this Agreement
shall govern and control. Upon the Closing Date and the making of the initial
Revolving Loan hereunder, the existing revolving credit facility established by
Bank of Oklahoma in favor of the Parent (and all commitments thereunder) will
terminate and all loan agreements, promissory notes and other agreements
relating to such revolving credit facility will be cancelled or terminated,
except that any provisions contained in such agreements relating to
indemnification by the Borrower shall survive such cancellation and termination
to the extent that such agreements expressly provide for such survival.

         12.14 Binding Effect. This Agreement shall become effective at such
time on or after the Closing Date when it shall have been executed by the
Borrower and the Administrative Agent, and the Administrative Agent shall have
received copies hereof (telefaxed or otherwise) which, when taken together, bear
the signatures of each Lender, and thereafter this Agreement shall be binding
upon and inure to the benefit of the Borrower, the Parent, the Administrative
Agent and each Lender and their respective successors and assigns.

         12.15 Termination. The term of this Agreement shall be effective until
no Loans, LOC Obligations or any other amounts payable hereunder or under any of
the other Credit Documents shall remain outstanding, no Letters of Credit shall
be outstanding, and all of the Commitments hereunder shall have expired or been
terminated.

         12.16 Confidentiality. The Administrative Agent and each Lender (each,
a "Lending Party") agrees to keep (and to cause its affiliates and its and their
respective officers, directors, employees, agents and advisors to keep)
confidential any information furnished or made available to it by the Credit
Parties pursuant to this Agreement that is marked confidential; provided that
nothing herein shall prevent any Lending Party from disclosing such information
(i) to any other Lending Party or any Affiliate of any Lending Party, or any
officer, director, employee, agent, or advisor of any Lending Party or Affiliate
of any Lending Party, (ii) to any other Person if reasonably incidental to the
administration of the credit facility provided herein, (iii) as required by any
law, rule, or regulation, (iv) upon the order of any court or administrative
agency or pursuant to subpoena or other legal process, (v) upon the request or
demand of any regulatory agency or authority, (vi) that is or becomes available
to the public or that is or becomes available to any Lending Party other than as
a result of a disclosure prohibited by this Agreement, (vii) in connection with
any litigation to which such Lending Party or any of its Affiliates may be a
party, (viii) to the extent necessary in connection with the exercise of any
remedy under this Agreement or any other Credit Document, (ix) to any direct or
indirect contractual counterparty in swap agreements or such contractual
counterparty's professional advisor (so long as such contractual counterparty or
professional advisor to such contractual counterparty has agreed in a writing
enforceable by the Borrower to be bound by the provisions of this Section 12.16)
and (x) subject to

                                       75
<PAGE>

provisions the same as those contained in this Section 12.16, to any actual or
proposed participant or assignee.

         12.17 Spinoff/Merger; Other Proposed Transactions.

                  (a) Spinoff/Merger. Anything in this Agreement to the contrary
         notwithstanding, nothing in this Agreement shall prohibit, and no
         Material Adverse Effect or Default or Event of Default hereunder shall
         result or be deemed to result from, (i) the consummation by the Parent
         of the Spinoff/Merger or any transaction contemplated thereby, or (ii)
         in the event the Spinoff/Merger is not consummated, the sale or other
         disposition of the oil and gas exploration and production business of
         the Consolidated Group and/or the stock of Cimarex, Helmerich & Payne
         Energy Services, Inc., or Mountain Acquisition Co.

                  (b) Other Proposed Transactions. The parties acknowledge that
         one or more members of the Consolidated Group intend to undertake and
         consummate the following proposed transactions (the "Proposed
         Transactions"): (i) the sale and issuance of the Medium Term Notes, and
         (ii) an internal reorganization of the Consolidated Group pursuant to
         which (x) substantially all of the Properties of the Parent (other than
         those primarily related to the oil and gas exploration, production,
         marketing and sales operations of the Parent) will be transferred to
         the Borrower or one or more Subsidiaries of the Borrower and (y) the
         current direct and indirect Subsidiaries of the Parent will become
         direct or indirect subsidiaries of the Borrower. The parties agree
         that, notwithstanding any provision of this Agreement to the contrary,
         provided that the Proposed Transactions are carried out without a
         breach of the covenants in Sections 7.11 or 7.12 and, with respect to
         the internal reorganization, in compliance with the requirements of
         Section 7.13 (if applicable), none of the Proposed Transactions will be
         deemed to have a Material Adverse Effect or otherwise to constitute or
         create a Default or Event of Default under this Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
                   [SIGNATURES APPEAR ON THE FOLLOWING PAGES]

                                       76
<PAGE>

         IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart
of this Agreement to be duly executed and delivered as of the date first above
written.

BORROWER:                        HELMERICH & PAYNE INTERNATIONAL
                                 DRILLING CO.,
                                 a Delaware corporation

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

PARENT:                          HELMERICH & PAYNE, INC.,
                                 a Delaware corporation

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

ADMINISTRATIVE AGENT:            BANK OF OKLAHOMA, NATIONAL
                                 ASSOCIATION

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

Notice Address:
Bank of Oklahoma Tower
One Williams Center
Tulsa, Oklahoma 74172
Attn: John M. Tyson, Assistant Vice President
Fax: (918) 280-3368

                                       77
<PAGE>

LENDERS:                         BANK OF OKLAHOMA, NATIONAL
                                 ASSOCIATION

                                 By:____________________________________________
                                 Name:__________________________________________
                                 Title:_________________________________________

Revolving Commitment:
$50,000,000

Notice Address:
Bank of Oklahoma Tower
One Williams Center
Tulsa, Oklahoma 74192
Attn: John M. Tyson, Assistant Vice President
Fax: (918) 280-3368

                                       78
<PAGE>

                                         WELLS FARGO BANK TEXAS, N.A.

                                         By: ________________________________
                                         Name: ______________________________
                                         Title: _____________________________

Revolving Commitment:
$30,000,000

Notice Address:
1000 Louisiana Street, 3rd Floor
Houston, Texas 77002
Attention:  Philip C. Lauinger III, Vice President
FAX:  (713) 739-1087

                                       79
<PAGE>
                                         MIDFIRST BANK

                                         By:____________________________________
                                         Name:__________________________________
                                         Title:_________________________________

Revolving Commitment:
$20,000,000

Notice Address:
321 S. Boston, Suite 104
Tulsa, Oklahoma 74103
Attention:  Ed Fariss, Senior Vice President
FAX:  (918) 587-0369

                                       80
<PAGE>
                                        UMB BANK, N.A.

                                        By:_____________________________________
                                        Name:___________________________________
                                        Title:__________________________________

Revolving Commitment:
$15,000,000

Notice Address:
1437 S. Boulder
Tulsa, Oklahoma 74119
Attention: Richard J. Lehrter,
  Community Bank President
FAX:  (___) ___-____

                                       81
<PAGE>
                                       COMMERCE BANK, N.A.

                                            By: ________________________________
                                            Name: ______________________________
                                            Title: _____________________________

Revolving Commitment:
$10,000,000

Notice Address:
1000 Walnut Street, BB17-1
Kansas City, Missouri  64106
Attention:  David Emley, Assistant Vice President
FAX:  (816) 234-7290

                                       82<PAGE>

                                                                    EXHIBIT 10.1

                                                                  EXECUTION COPY

                UNCOMMITTED AMENDED AND RESTATED CREDIT AGREEMENT

                    DATED TO BE EFFECTIVE AS OF JULY 1, 2002

                                      AMONG

                           WOODWARD MARKETING, L.L.C.,
                                  AS BORROWER,

                              FORTIS CAPITAL CORP.,
     AS ADMINISTRATIVE AGENT, COLLATERAL AGENT, AN ISSUING BANK, AND A BANK,

                                  BNP PARIBAS,
               AS DOCUMENTATION AGENT, AN ISSUING BANK, AND A BANK

                                       AND

                     THE OTHER FINANCIAL INSTITUTIONS WHICH
                            MAY BECOME PARTIES HERETO

                         THIS AGREEMENT PROVIDES FOR AN
                   UNCOMMITTED FACILITY WITH A DEMAND FEATURE.
                 ALL ADVANCES AND ISSUANCES OF LETTERS OF CREDIT
                   ARE DISCRETIONARY ON THE PART OF THE BANKS
                     IN THEIR SOLE AND ABSOLUTE DISCRETION.
                THE BANKS MAY MAKE DEMAND FOR PAYMENT AT ANY TIME
                     IN THEIR SOLE AND ABSOLUTE DISCRETION.

<PAGE>

                UNCOMMITTED AMENDED AND RESTATED CREDIT AGREEMENT

          This UNCOMMITTED AMENDED AND RESTATED CREDIT AGREEMENT (the
"Agreement") is entered into effective as of July 1, 2002, among WOODWARD
MARKETING, L.L.C., a Delaware limited liability company (the "Borrower"), FORTIS
CAPITAL CORP., a Connecticut corporation ("Fortis"), as a Bank, as an Issuing
Bank, and as Administrative Agent for the Banks (in such capacity, the
"Administrative Agent"), and as Collateral Agent, BNP PARIBAS, a bank organized
under the laws of France ("BNP Paribas"), as a Bank, as an Issuing Bank, and as
Documentation Agent (together with the Administrative Agent, the "Agents"), and
each other financial institution which may become a party hereto (collectively
the "Banks").

          WHEREAS, the Borrower, the Agents, the Issuing Banks and the Banks
entered into that certain Credit Agreement dated as of December 1, 2001 (the
"Original Credit Agreement") with respect to an uncommitted facility of up to
$125,000,000, including an uncommitted letter of credit facility.

          WHEREAS, the Borrower, the Agents, the Issuing Banks and the Banks
desire to amend and restate the Original Credit Agreement so that, from time to
time, the Banks, on an uncommitted and fully discretionary basis, continue to
make loans to the Borrower and continue to issue Letters of Credit for the
account of the Borrower in order to provide working capital to the Borrower, to
facilitate the Borrower's purchases of natural gas in the ordinary course of
business, to secure swap counterparties for out-of-the-money swap obligations,
and for such other purposes set forth herein. The Banks have indicated their
willingness to consider to continue to lend such amounts and to consider to
continue to issue and participate in such Letters of Credit on the terms and
conditions of this Agreement.

          NOW, THEREFORE, in consideration of the mutual agreements, provisions
and covenants contained herein, the parties agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

          1.01 Certain Defined Terms. The following terms have the following
meanings:

          "Account" has the meaning stated in the New York Uniform Commercial
Code.

          "Account Debtor" means a Person who is obligated to the Borrower under
an Account of the Borrower.

          "Acquisition" means any transaction or series of related transactions
for the purpose of or resulting, directly or indirectly, in (a) the acquisition
of all or substantially all of the assets of a Person, or of any business or
division of a Person, (b) the acquisition of in excess of 50% of the capital
stock, partnership interests or equity of any Person, or otherwise causing any
Person to become a Subsidiary, or (c) a merger or consolidation or any other
combination with another Person (other than a Person that is a Subsidiary);
provided, however, that the relevant Borrower or the Subsidiary is the surviving
entity.

                                       2

<PAGE>

          "Activation Period" means the period which commences within a
reasonable period of time not to exceed two Business Days after receipt by Bank
of America, N.A. of a written notice from Fortis in the form of Exhibit B to the
Three Party Agreement Relating to Lockbox Services (With Activation) dated as of
April 15, 2002 among the Borrower, Fortis and Bank of America, N.A.

          "Adjusted Pro Rata Share" means, as to any Bank at any particular
time, the percentage equivalent (expressed as a decimal, rounded to the ninth
decimal place) at such time of (a) an amount equal to such Bank's Uncommitted
Line Portion plus, in the case of BNP Paribas, the amount of advances made in
excess of the Borrowing Base Advance Cap to fund Obligations of the Borrower
under Swap Contracts, divided by (b) the combined total of the Uncommitted Line
Portion of all the Banks plus, in the case of BNP Paribas, the amount of
advances made in excess of the Borrowing Base Advance Cap to fund Obligations of
the Borrower under Swap Contracts.

          "Administrative Agent" means Fortis in its capacity as administrative
agent for the Banks hereunder, and any successor agent arising under Section
10.09.

          "Administrative Agent's Payment Office" means the address for payments
set forth on Schedule 11.02 hereto in relation to the Administrative Agent, or
such other address as the Administrative Agent may from time to time specify.

          "Advance Maturity Date" means the maturity date of advances made
hereunder which for Base Rate Loans will be the earliest to occur of (a) written
demand by any Agent, or (b) 60 days from the date of the Borrowing, and for
Offshore Rate Loans will be the earliest to occur of (i) written demand by any
Agent, or (ii) 60 days from the date of the Borrowing, or (iii) the end of the
Interest Period for such Offshore Rate Loan.

          "Affiliate" means, as to any Person, any other Person which, directly
or indirectly, is in control of, is controlled by, or is under common control
with, such Person. A Person shall be deemed to control another Person if the
controlling Person possesses, directly or indirectly, the power to direct or
cause the direction of the management and policies of the other Person, whether
through the ownership of voting securities, by contract, or otherwise.

          "Agents" means the Administrative Agent, the Collateral Agent and the
Documentation Agent.

          "Agent-Related Persons" means the Administrative Agent, the Collateral
Agent and the Documentation Agent, together with their respective Affiliates and
the officers, directors, employees, agents and attorneys-in-fact of such Persons
and Affiliates.

          "Agreement" means this Credit Agreement.

          "Applicable Margin" means:

                                       3

<PAGE>

          (a)  with respect to Base Rate Loans, one-half percent (0.50%);
               and

          (b)  with respect to Offshore Rate Loans, two and one-half
               percent (2.50%).

          "Approving Banks" has the meaning set forth in Section 2.14.

          "Assets from Risk Management Activities" means unrealized gains
resulting from Mark-to-Market valuation of storage, transportation, and
requirements contracts, over-the-counter and exchange-traded options, and
forwards, futures, and swap contracts.

          "Assignee" has the meaning specified in Subsection 11.08(a).

          "Atmos Support Agreement" means an agreement of Atmos Energy
Corporation to provide certain support for Borrower and its operations and to
remit insurance proceeds to the Agents as provided therein, such agreement to be
in form and substance acceptable to Agents.

          "Attorney Costs" means and includes all reasonable fees and
disbursements of any law firm or other external counsel, the allocated cost of
internal legal services and all disbursements of internal counsel.

          "Bank Blocked Account" means the Collateral Agent's account no.
323373461 maintained with Chase into which collections and available balances
from the Lock Box will be deposited pursuant to Section 7.14.

          "Bankruptcy Code" means the Federal Bankruptcy Reform Act of 1978, as
amended (11 U.S.C.ss.101, et seq.).

          "Banks" shall initially mean Fortis, BNP Paribas, Societe Generale,
Natexis Banques Populaires, New York Branch, and RZB Finance, LLC. At such time
as additional lending institutions are added to this Agreement, either through
an amendment to this Agreement or through an Assignment and Acceptance in
accordance with Subsection 11.08(a) hereof, the term "Bank" shall mean Fortis,
BNP Paribas, Societe Generale, Natexis Banques Populaires, New York Branch, RZB
Finance, LLC, and each such additional lending institution. References to the
"Banks" shall include Fortis and BNP Paribas, including each in its capacity as
an Issuing Bank; for purposes of clarification only, to the extent that Fortis
or BNP Paribas may have any rights or obligations in addition to those of the
Banks due to their status as an Issuing Bank and as Agents, Fortis' and BNP
Paribas' status as such will be specifically referenced.

          "Base Rate" means, for any day, the higher of: (a) 0.50% per annum
above the latest Federal Funds Rate; or (b) the per annum rate of interest
established by Chase from time to time at its principal office in New York City
as its "prime rate" or "base rate" for U.S. dollar loans (with any change in
such prime rate or base rate to become effective as and when such prime rate or
base rate changes). (The "prime rate" or "base rate" is a rate set by Chase
based upon various factors including Chase's costs and desired return, general
economic conditions and other factors, and is used as a reference point for
pricing some loans, which may be priced at, above or below such announced rate.)

          "Base Rate Loan" means any Loan bearing interest based upon the Base
Rate.

                                       4

<PAGE>

          "BNP Paribas" means BNP Paribas, a bank organized under the laws of
France.

          "Borrower" means Woodward Marketing, L.L.C., a Delaware limited
liability company.

          "Borrowing" means a borrowing hereunder consisting of Revolving Loans
made to the Borrower on the same day by the Banks under Article II.

          "Borrowing Base Advance Cap" means at any time an amount equal to the
least of:

          (a)  $250,000,000.00;

          (b)  the Total Subscribed Line Portions;

          (c)  the Borrowing Base Sub-Cap; or

          (d)  the sum of:

          (i)    the amount of Cash Collateral and other liquid investments
     which are acceptable to the Banks in their sole discretion and which are
     subject to a first perfected security interest in favor of Administrative
     Agent, as collateral agent for the Banks, and which have not been used in
     determining availability for any other advance (other than advances made
     under the Borrowing Base Line) or Letter of Credit Issuance; plus

          (ii)   90% of Borrower's equity in Eligible Broker accounts from and
     after the date that a tri-party agreement with respect to such accounts is
     entered into, to the extent such equity is not being used in determining
     availability for any other advance (other than advances made under the
     Borrowing Base Line) or Letter of Credit Issuance; plus

          (iii)  90% of the amount of Tier I Accounts which are not being used
     in determining availability for any other advance (other than advances made
     under the Borrowing Base Line) or Letter of Credit Issuance, net of
     deductions, offsets and counterclaims; plus

          (iv)   85% of the amount of Tier II Accounts which are not being used
     in determining availability for any other advance (other than advances made
     under the Borrowing Base Line) or Letter of Credit Issuance, net of
     deductions, offsets and counterclaims; plus

          (v)    85% of the amount of Tier I Unbilled Accounts which are not
     being used in determining availability for any other advance (other than
     advances made under the Borrowing Base Line) or Letter of Credit Issuance;
     plus

          (vi)   80% of the amount of Tier II Unbilled Accounts which are not
     being used in determining availability for any other advance (other than
     advances made under the Borrowing Base Line) or Letter of Credit Issuance;
     plus

                                       5

<PAGE>

          (vii)  80% of the amount of Eligible Inventory which are not being
     used in determining availability for any other advance (other than advances
     made under the Borrowing Base Line) or Letter of Credit Issuance; plus

          (viii) 80% of the amount of Eligible Exchange Receivables which are
     not being used in determining availability for any other advance (other
     than advances made under the Borrowing Base Line) or Letter of Credit
     Issuance; plus

          (ix)   80% of the amount of Undelivered Product Value; plus

          (x)    70% of Realizable Unrealized Profits, up to a maximum amount of
     $50,000,000, less

          (xi)   the amounts which would be subject to a so-called "First
     Purchaser Lien" as defined in Texas Bus. & Com. Code Section 9.343,
     comparable laws of the states of Louisiana, Oklahoma, Kansas, Wyoming or
     New Mexico, or any other comparable law, unless a Letter of Credit secures
     payment of all amounts subject to such First Purchaser Lien; less

          (xii)  125% of the mark to market amounts owed to BNP Paribas and/or
     its Affiliates and Societe Generale and/or its Affiliates under Swap
     Contracts; and less

          (xiii) 100% of Borrower's Unrealized Mark-to-Market Losses as of the
     date of determination of the Borrowing Base Advance Cap.

          In no event shall any amounts described in (d)(i) through (d)(x) above
which may fall into more than one of such categories be counted more than once
when making the calculation under this definition.

          "Borrowing Base Collateral Position Report" means a report detailing
all Collateral which has been or is being used in determining availability for
an advance or letter of credit issuance under the Borrowing Base Line, such
report to be in the form attached hereto as Exhibit E.

          "Borrowing Base Line" means the uncommitted line of credit for the
purpose of (a) providing working capital and to fund payments to suppliers of
Product; (b) to provide for Letters of Credit to secure suppliers of Product;
and (c) to fund payments due to a Swap Bank under any Swap Contract.

          "Borrowing Base Sub-Cap" means (a) from the date of this Agreement
until the date the first election is made by the Borrower pursuant to clause (b)
of this definition, $125,000,000, and (b) thereafter, at any time, the amount
set forth in the table below under the heading "Borrowing Base Sub-Cap" elected
by the Borrower from time to time by written notice to the Agents, provided
that, at the time of any such election of any such amount as the Borrowing Base
Sub-Cap, but not for any other purpose herein, each of the Borrower's Net
Working Capital, Tangible Net Worth and ratio of Total Liabilities to Tangible
Net Worth at such time of election, and the maximum cumulative loss for the
period commencing on the Closing Date and ending on the date of such election
(determined as a single accounting period),

                                       6

<PAGE>

each as determined by the most recent monthly financial statements received
pursuant to Section 7.01(c), are within the requirements set forth opposite such
amount in the table below. For purposes of testing whether such requirements
have been met, the highest amount elected by the Borrower for the month being
tested shall be used, where during the same month being tested the Borrower
elected to either increase or decrease the availability by selecting a different
amount under the column entitled "Borrowing Base Sub-Cap".

<TABLE>
<CAPTION>
                                                                                      Maximum Cumulative
                                                                Maximum Ratio at       Cumulative Loss
  Borrowing Base           Minimum Net     Minimum Tangible   Total Liabilities to   from Closing Date to
     Sub-Cap             Working Capital       Net Worth       Tangible Net Worth      time of election
  --------------         ---------------   ----------------   --------------------   --------------------
   <S>                     <C>                <C>                   <C>                   <C>
   $100,000,000            $20,000,000        $21,000,000           5.00 to 1             $ 4,000,000
   $125,000,000            $25,000,000        $26,000,000           5.00 to 1             $ 5,000,000
   $150,000,000            $30,000,000        $31,000,000           5.00 to 1             $ 6,000,000
   $175,000,000            $35,000,000        $36,000,000           5.00 to 1             $ 7,000,000
   $200,000,000            $40,000,000        $41,000,000           5.00 to 1             $ 8,000,000
   $225,000,000            $45,000,000        $46,000,000           5.00 to 1             $ 9,000,000
   $250,000,000            $50,000,000        $51,000,000           5.00 to 1             $10,000,000
</TABLE>

          "Borrowing Date" means any date on which a Borrowing occurs under
Section 2.03.

          "Business Day" (a) with respect to all matters other than those
related to Offshore Rate Loans, means any day other than a Saturday, Sunday or
other day on which commercial banks in New York, New York, are authorized, or
required, by law to close and (b) means, for purposes of determining business
days in connection with Offshore Rate Loans, any day on which transactions are
made in the applicable offshore dollar interbank market other than a Saturday,
Sunday or other day on which commercial banks in New York, New York, are
authorized or required, by law to close.

          "Capital Adequacy Regulation" means any guideline, request or
directive of any central bank or other Governmental Authority, or any other law,
rule or regulation, whether or not having the force of law, in each case,
regarding capital adequacy of any Bank or of any corporation controlling a Bank.

          "Capital Stock" means capital stock, membership interest, equity
interest or other obligations or securities of, or any interest in, any Person.

          "Cash Collateral" means currency issued by the United States and
Marketable Securities which have been Cash Collateralized for the benefit of the
Banks.

          "Cash Collateralize" means to pledge and deposit with or deliver to
the Collateral Agent, for the benefit of the Collateral Agent, the Issuing Banks
and the Banks, Cash Collateral as collateral for the Obligations pursuant to
documentation in form and substance satisfactory to Agents (which documents are
hereby consented to by the Banks). The Borrower hereby grants to the Collateral
Agent, for the benefit of the Collateral Agent, the Issuing Banks and the Banks,
a security interest in all such Cash Collateral. Cash Collateral shall be
maintained in the Bank Blocked Account.

                                       7

<PAGE>

          "Change of Control" means, at any time:

          (a)  Atmos Energy Corporation shall cease to own and control legally
and beneficially, either directly or indirectly, Voting Interests in Atmos
Energy Holdings, Inc. representing 100% of the combined voting power of all of
the Voting Interests in Atmos Energy Holdings, Inc. (on a fully diluted basis);
or

          (b)  Atmos Energy Holdings, Inc. shall cease to own and control
directly or indirectly, beneficial interest in Equity Interests representing
100% of the economic equity interest in the Borrower.

          "Chase" means JP Morgan Chase Bank (or any successor).

          "Closing Date" means the date on which all conditions precedent set
forth in Section 5.01 are satisfied or waived by all Banks.

          "Code" means the Internal Revenue Code of 1986, and regulations
promulgated thereunder.

          "Collateral" means all assets of the Borrower including, without
limitation, all accounts, equipment, chattel paper, inventory, natural gas in
transit, instruments, contract rights, the Bank Blocked Account, stock,
partnership interests, and general intangibles, whether presently existing or
hereafter acquired or created and the proceeds thereof.

          "Collateral Agent" means Fortis Capital Corp.

          "Collateral Position" means the total availability under the Borrowing
Base Advance Cap.

          "Compliance Certificate" means a certificate, in form attached hereto
as Exhibit C, whereby the Borrower certifies that it is in compliance with this
Agreement.

          "Consolidated" means the consolidation of accounts in accordance with
GAAP.

          "Contingent Obligation" means, as to any Person, any direct or
indirect liability of that Person, whether or not contingent, with or without
recourse, (a) with respect to any Indebtedness, lease, dividend, letter of
credit or other obligation (the "primary obligations") of another Person (which
obligations and Person are referred to herein as the "primary obligation" and
the "primary obligor," respectively), including any obligation of that Person
(i) to purchase, repurchase or otherwise acquire such primary obligations or any
security therefor, (ii) to advance or provide funds for the payment or discharge
of any such primary obligation, or to maintain working capital or equity capital
of the primary obligor or otherwise to maintain the net worth or solvency or any
balance sheet item, level of income or financial condition of the primary
obligor, (iii) to purchase property, securities or services primarily for the
purpose of assuring the owner of any such primary obligation of the ability of
the primary obligor to make payment of such

                                       8

<PAGE>

primary obligation, or (iv) otherwise to assure or hold harmless the holder of
any such primary obligation against loss in respect thereof (each, a "Guaranty
Obligation"); (b) with respect to any Surety Instrument (other than any Letter
of Credit) issued for the account of that Person or as to which that Person is
otherwise liable for reimbursement of drawings or payments; (c) to purchase any
materials, supplies or other property from, or to obtain the services of,
another Person if the relevant contract or other related document or obligation
requires that payment for such materials, supplies or other property, or for
such services, shall be made regardless of whether delivery of such materials,
supplies or other property is ever made or tendered, or such services are ever
performed or tendered; or (d) in respect of any swap contract.

          "Contractual Obligation" means, as to any Person, any provision of any
security issued by such Person or of any agreement, undertaking, contract,
indenture, mortgage, deed of trust or other instrument, document or agreement to
which such Person is a party or by which it or any of its property is bound.

          "Conversion/Continuation Date" means any date on which, under Section
2.04, the Borrower (a) converts Loans of one Type to another Type, or (b)
continues such Loans as Loans of the same Type, but with a new Interest Period.

          "Conversion to Reduced Funding Banks Date" has the meaning specified
in Section 2.14.

          "Credit Extension" means and includes (a) the making of any Loans
hereunder, and (b) the Issuance of any Letters of Credit hereunder.

          "Current Assets" means, with respect to any Person on any date of
determination, all assets of such Person and its Subsidiaries that, in
accordance with GAAP, would be classified as current assets on the balance sheet
of a Person conducting a business the same as or similar to that of such Person,
after deducting appropriate and adequate reserves therefrom in accordance with
GAAP, determined on a Consolidated basis, and excluding any accounts receivable
owed by any Affiliate of the Borrower to the extent such accounts receivable
arose in transactions conducted other than on an arms-length basis.

          "Current Liabilities" means, with respect to any Person on any date of
determination, all liabilities of such Person and its Subsidiaries that, in
accordance with GAAP, would be classified as current liabilities on the balance
sheet of a Person conducting a business the same as or similar to that of such
Person, as determined on a Consolidated basis, but excluding to the extent
otherwise included therein any current portion of the Subordinated Debt.

          "Declining Bank" has the meaning specified in Section 2.14.

          "Default" means any event or circumstance which, with the giving of
notice, the lapse of time, or both, would constitute an Event of Default.

          "Default Rate" has the meaning specified in Subsection 2.08(a).

          "Documentation Agent" means BNP Paribas in its capacity as
documentation agent for the Banks hereunder.

                                       9

<PAGE>

                  "Dollar Advance Cap" means a cap upon Revolving Loans under
the Borrowing Base Line with the following limits:

          (a)  $50,000,000.00 at such times as the Borrowing Base Sub-Cap is
$100,000,000.00;

          (b)  $60,000,000.00 at such times as the Borrowing Base Sub-Cap is
$125,000,000.00;

          (c)  $70,000,000.00 at such times as the Borrowing Base Sub-Cap is
$150,000,000.00; and

          (d)  $80,000,000.00 at such times as the Borrowing Base Sub-Cap is
$175,000,000.00; and

          (e)  $90,000,000.00 at such times as the Borrowing Base Sub-Cap is
$200,000,000.00; and

          (f)  $100,000,000.00 at such times as the Borrowing Base Sub-Cap is
$225,000,000.00; and

          (g)  $100,000,000.00 at such times as the Borrowing Base Sub-Cap is
$250,000,000.00.

          "Dollars," and "$" each mean lawful money of the United States.

          "Effective Amount" means (a) with respect to any Loans on any date,
the aggregate outstanding principal amount thereof after giving effect to any
Borrowings and prepayments or repayments of Loans occurring on such date; and
(b) with respect to any outstanding L/C Obligations on any date, the amount of
such L/C Obligations on such date after giving effect to any Issuances of
Letters of Credit occurring on such date and any other changes in the aggregate
amount of the L/C Obligations as of such date, including changes as a result of
expiration or cancellation, any reimbursements of outstanding unpaid drawings
under any Letters of Credit or any reductions in the maximum amount available
for drawing under Letters of Credit taking effect on such date.

          "Eligible Accounts" means, at the time of any determination thereof,
each of the Borrower's Accounts as to which the following requirements have been
fulfilled to the satisfaction of the Banks:

          (a)  Such Account (if for an amount in excess of $750,000.00) is
acceptable to each of the Banks in their sole discretion and either (i) is the
result of a sale to a Tier I or Tier II Account Party, or (ii) is secured by
letters of credit in form acceptable to the Banks in their sole discretion and
issued by banks approved by the Banks in their sole discretion;

          (b)  Borrower has lawful and absolute title to such Account;

                                       10

<PAGE>

          (c)  Such Account is a valid, legally enforceable obligation of the
Person who is obligated under such Account for goods actually delivered or to be
delivered to such Account Debtor in the ordinary course of the Borrower's
business;

          (d)  Such Account shall have excluded therefrom any portion that is
subject to any dispute, offset, counterclaim or other claim or defense on the
part of the Account Debtor or to any claim on the part of the Account Debtor
denying liability under such Account; provided, however, that in the event that
the portion that is subject to any such dispute, counterclaim or other claim or
defense is secured with a Letter of Credit, such portion secured by the Letter
of Credit shall not be excluded;

          (e)  Such Account is not evidenced by any chattel paper, promissory
note or other instrument;

          (f)  Such Account is subject to a fully perfected first priority
security interest (or properly filed and acknowledged assignment, in the case of
U.S. government contracts, if any) in favor of the Administrative Agent pursuant
to the Loan Documents, prior to the rights of, and enforceable as such against,
any other Person, and such Account is not subject to any security interest or
Lien in favor of any Person other than the Liens of the Banks pursuant to the
Loan Documents;

          (g)  Such Account shall have excluded therefrom any portion which is
not payable in Dollars in the U.S.;

          (h)  Such Account has been due and payable for 15 days or less (or 30
days or less, if the Account Debtor is a Governmental Authority) from the date
of the invoice and no extension or indulgence has been granted extending the due
date beyond a 15 day period (or 30 days, as the case may be), except if such
Account by its terms provides for a 15 day payment period, then such Account
shall be eligible for up to 30 days from the date of invoice, or as otherwise
approved by Banks in writing; and

          (i)  No Account Debtor in respect of such Account is (i) an Affiliate
of the Borrower, or (ii) incorporated in or primarily conducting business in any
jurisdiction outside of the U.S., unless such Account Debtor and the Account is
approved in writing by the Banks; provided, however, that as long as Atmos
Energy Corporation maintains an S&P rating of BBB+ or a Moody's rating of Baa1
or better, and such Accounts would otherwise qualify as Eligible Accounts,
Accounts of Atmos Energy Corporation (and its Subsidiaries and Affiliates that
have been approved by Agents as Tier I Account Parties) may be included as Tier
I Accounts to the extent that such Accounts do not exceed 50% of Borrower's
total Accounts.

          (j)  The balance of such Account shall be the net of, in each case (i)
any accounts payable owing to the Account Debtor by the Borrower on such Account
and (ii) after application thereof to any Eligible Exchange Receivables,
Unbilled Eligible Accounts, and Realizable Unrealized Profits with such Account
Debtor, other offsets against amounts owed to such Account Debtor, whether in
respect of unbilled purchases, out-of-the-money positions or unperformed
contracts for purchase.

                                       11

<PAGE>

          "Eligible Assignee" means (a) a commercial bank organized under the
laws of the United States, or any state thereof, and having a combined capital
and surplus of at least $100,000,000.00; (b) a commercial bank organized under
the laws of any other country which is a member of the Organization for Economic
Cooperation and Development (the "OECD"), or a political subdivision of any such
country, and having a combined capital and surplus of at least $100,000,000.00,
provided, however, that such bank is acting through a branch or agency located
in the United States; and (c) a Person that is primarily engaged in the business
of commercial lending and that is (i) a Subsidiary of a Bank (or bank referred
to in the preceding clauses (a) or (b)), (ii) a Subsidiary of a Person of which
a Bank (or bank referred to in the preceding clauses (a) or (b)) is a
Subsidiary, or (iii) a Person of which a Bank (or bank referred to in the
preceding clauses (a) or (b)) is a Subsidiary.

          "Eligible Broker" means BNP Paribas, FIMAT USA, Inc. or any Affiliate
of BNP Paribas or FIMAT USA, Inc., or any broker approved in writing by the
Agents and the Banks.

          "Eligible Commodity Futures Accounts" means an account or accounts
with an Eligible Broker, in which the Collateral Agent is granted a first and
prior security interest as Collateral Agent for the Banks pursuant to Hedging
Assignments which security interest is subject only to the rights of the
Eligible Broker under such accounts.

          "Eligible Exchange Receivables" means all enforceable rights of the
Borrower to receive Product in exchange for the sale or trade of Product
previously delivered to the exchange debtor by the Borrower valued at an
independent posting and which (a) are evidenced by a written agreement
enforceable against the exchange debtor thereof, (b) are current pursuant to the
terms of the contract or invoice, (c) are subject to a perfected, first Lien in
favor of the Administrative Agent for the benefit of the Banks subject only to
Permitted Liens, and no other Lien, charge, offset or claim, (d) are not the
subject of a dispute between the exchange debtor and the Borrower, (e) are
valued at Platt's spot market price or an independent posting acceptable to the
Banks in their sole discretion, (f) if arising pursuant to contracts involving
an amount in excess of $750,000, are contracts by exchangers pre-approved by the
Banks in their sole discretion, or contracts secured by letters of credit in
form acceptable to the Banks in their sole discretion and issued by banks
approved by the Banks in their sole discretion, (g) have not been otherwise
determined by the Banks in their sole discretion to be unacceptable to them, and
(h) are the net of, in each case (i) any payables owing to such exchange debtor
by the Borrower and (ii) after application thereof to any Eligible Accounts,
Unbilled Eligible Accounts, and Realizable Unrealized Profits with such Account
Debtor, other offsets against amounts owed to such exchange debtor, whether in
respect of unbilled purchases, out-of-the-money positions or unperformed
contracts for purchase. The Product and Account relating to or creating any
Eligible Exchange Receivable shall not be simultaneously included in any other
availability calculation, including, without limitation, Undelivered Product
Value, Eligible Inventory or Eligible Accounts.

          "Eligible Inventory" means, at the time of determination thereof, all
of the Borrower's inventory stored in terminals (and provided the terminal
owners are subject to approval by the Banks in their sole discretion) valued at
the lower of cost or current market price (as referenced by a published source
acceptable to Banks in their sole discretion), and in all instances as to which
the following requirements have been fulfilled to the satisfaction of the Banks:

                                       12

<PAGE>

          (a)  The inventory is owned by the Borrower free and clear of all
Liens in favor of third parties, except Liens in favor of the Banks under the
Loan Documents and except for Permitted Liens;

          (b)  The inventory has not been identified to deliveries with the
result that a buyer would have rights to the inventory that would be superior to
the Administrative Agent's security interest for the benefit of the Banks, nor
shall such inventory have become the subject of a customer's ownership or Lien;

          (c)  The inventory is in transit in the U.S. under the control and
ownership of the Borrower or is in a pipeline or a bill of lading has been
issued to the Administrative Agent if such inventory is in the hands of a third
party carrier or is located in the U.S. at the locations described on Schedule
7.03(f), or at such other place as has been specifically agreed to in writing by
the Banks and the Borrower; and

          (d)  The inventory is subject to a fully perfected first priority
security interest in favor of the Administrative Agent for the benefit of the
Banks pursuant to the Loan Documents.

          "Environmental Claims" means all claims, however asserted, by any
Governmental Authority or other Person alleging potential liability or
responsibility for violation of any Environmental Law, or for release or injury
to the environment.

          "Environmental Laws" means all federal, state or local laws, statutes,
common law duties, rules, regulations, ordinances and codes, together with all
administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authorities, in each case
relating to environmental, health, safety and land use matters.

          "Equity Interests": means, with respect to any Person, all of the
shares of capital stock of (or other ownership, beneficial or profit interests
in) such Person, all of the warrants, options or other rights for the purchase
or other acquisition from such Person of shares of capital stock of (or other
ownership, beneficial or profit interests in) such Person, all of the securities
convertible into or exchangeable for shares of capital stock of (or other
ownership, beneficial or profit interests in) such Person or warrants, rights or
options for the purchase or other acquisition from such Person of such shares
(or such other interests), and all of the other ownership, beneficial or profit
interests in such Person (including, without limitation, partnership, member or
trust interests therein), whether voting or nonvoting, and whether or not such
shares, warrants, options, rights or other interests are authorized or otherwise
existing on any date of determination.

          "ERISA" means the Employee Retirement Income Security Act of 1974, and
regulations promulgated thereunder.

                                       13

<PAGE>

          "ERISA Affiliate" means any trade or business (whether or not
incorporated) under common control with the Borrower within the meaning of
Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for
purposes of provisions relating to Section 412 of the Code).

          "ERISA Event" means (a) a Reportable Event with respect to a Pension
Plan; (b) a withdrawal by the Borrower or any ERISA Affiliate from a Pension
Plan subject to Section 4063 of ERISA during a plan year in which it was a
substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation
of operations which is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA
Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is
in reorganization; (d) the filing of a notice of intent to terminate, the
treatment of a Plan amendment as a termination under Section 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension
Plan or Multiemployer Plan; (e) an event or condition which might reasonably be
expected to constitute grounds under Section 4042 of ERISA for the termination
of, or the appointment of a trustee to administer, any Pension Plan or
Multiemployer Plan; or (f) the imposition of any liability under Title IV of
ERISA, other than PBGC premiums due but not delinquent under Section 4007 of
ERISA, upon the Borrower or any ERISA Affiliate.

          "Eurodollar Reserve Percentage" means for any day for any Interest
Period the maximum reserve percentage (expressed as a decimal, rounded upward to
the next 1/100th of 1%) in effect on such day (whether or not applicable to any
Bank) under regulations issued from time to time by the FRB for determining the
maximum reserve requirement (including any emergency, supplemental or other
marginal reserve requirement) with respect to Eurocurrency funding (currently
referred to as "Eurocurrency liabilities").

          "Event of Default" means any of the events or circumstances specified
in Section 9.01.

          "Exchange Act" means the Securities and Exchange Act of 1934, as
amended, and regulations promulgated thereunder.

          "Existing Letters of Credit" means all letters of credit issued by
Fortis and BNP Paribas for the account of the Borrower which are outstanding as
of the date hereof under the Original Credit Agreement and shall not include any
Letter of Credit which is not described on Schedule 3.10 hereto.

          "Expiration Date" means the earliest to occur of:

          (a)  December 31, 2002; or

          (b)  the date demand for payment is made by the Administrative Agent;
or

          (c)  the date an Event of Default occurs.

          "FDIC" means the Federal Deposit Insurance Corporation, and any
Governmental Authority succeeding to any of its principal functions.

                                       14

<PAGE>

          "Federal Funds Rate" means, for any day, the rate set forth in the
weekly statistical release designated as H.15(519), or any successor
publication, published by the Federal Reserve Bank of New York (including any
such successor, "H.15(519)") on the preceding Business Day opposite the caption
"Federal Funds (Effective)"; or, if for any relevant day such rate is not so
published on any such preceding Business Day, the rate for such day will be the
arithmetic mean as determined by the Administrative Agent of the rates for the
last transaction in overnight Federal Funds arranged prior to 9:00 a.m. (New
York City time) on that day by each of three leading brokers of Federal Funds
transactions in New York City selected by the Administrative Agent.

          "Fortis" means Fortis Capital Corp., a Connecticut corporation.

          "FRB" means the Board of Governors of the Federal Reserve System, and
any Governmental Authority succeeding to any of its principal functions.

          "Further Taxes" means any and all present or future taxes, levies,
assessments, imposts, duties, deductions, fees, withholding or similar charges
(including, without limitation, net income taxes and franchise taxes), and all
liabilities with respect thereto, imposed by any jurisdiction on account of
amount payable or paid pursuant to Section 4.01.

          "GAAP" means generally accepted accounting principles set forth from
time to time in the opinions and pronouncements of the Accounting Principles
Board and the American Institute of Certified Public Accountants and statements
and pronouncements of the Financial Accounting Standards Board (or agencies with
similar functions of comparable stature and authority within the U.S. accounting
profession), which are applicable to the circumstances as of the date of
determination.

          "Governmental Authority" means any nation or government, any state or
other political subdivision thereof, any central bank (or similar monetary or
regulatory authority) thereof, any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government,
and any corporation or other entity owned or controlled, through stock or
capital ownership or otherwise, by any of the foregoing.

          "Guarantors" means Atmos Energy Holdings, Inc. and Atmos Energy
Marketing LLC.

          "Guaranty" means a Guaranty Agreement, in form and substance
acceptable to the Banks in their sole discretion, which has been executed by a
Guarantor and delivered to the Administrative Agent for the benefit of the
Banks.

          "Guaranty Obligation" has the meaning specified in the definition of
"Contingent Obligation."

          "Hedging Assignment" means a security agreement among Borrower, the
Administrative Agent and an Eligible Broker relating to the collateral
assignment to the Administrative Agent, as collateral agent for the Banks, of
all sums owing from time to time to Borrower with respect to an Eligible
Commodities Futures Account, such agreement to be in form and substance
acceptable to the Banks in their sole discretion.

                                       15

<PAGE>

          "Honor Date" has the meaning specified in Subsection 3.03(b).

          "Indebtedness" of any Person means, without duplication, (a) all
indebtedness for borrowed money; (b) all obligations issued, undertaken or
assumed as the deferred purchase price of property or services (other than trade
payables entered into in the ordinary course of business on ordinary terms); (c)
all non-contingent reimbursement or payment obligations with respect to Surety
Instruments; (d) all obligations evidenced by notes, bonds, debentures or
similar instruments, including obligations so evidenced incurred in connection
with the acquisition of property, assets or businesses; (e) all indebtedness
created or arising under any conditional sale or other title retention
agreement, or incurred as financing, in either case with respect to property
acquired by the Person (even though the rights and remedies of the seller or
bank under such agreement in the event of default are limited to repossession or
sale of such property); (f) all obligations with respect to capital leases; (g)
all obligations with respect to swap contracts; (h) all indebtedness referred to
in clauses (a) through (g) above secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by)
any Lien upon or in property (including accounts and contract rights) owned by
such Person, even though such Person has not assumed or become liable for the
payment of such indebtedness; and (i) all Guaranty Obligations in respect of
indebtedness or obligations of others of the kinds referred to in clauses (a)
through (g) above.

          "Indemnified Liabilities" has the meaning specified in Section 11.05.

          "Indemnified Person" has the meaning specified in Section 11.05.

          "Independent Auditor" has the meaning specified in Subsection 7.01(a).

          "Insolvency Proceeding" means, with respect to any Person (a) any
case, action or proceeding with respect to such Person before any court or other
Governmental Authority relating to bankruptcy, reorganization, insolvency,
liquidation, receivership, dissolution, winding-up or relief of debtors, or (b)
any general assignment for the benefit of creditors, composition, marshalling of
assets for creditors, or other, similar arrangement in respect of its creditors
generally or any substantial portion of its creditors; undertaken under U.S.
Federal, state or foreign law, including the Bankruptcy Code.

          "Interest Payment Date" means, as to any Loan other than a Base Rate
Loan, the last day of each Interest Period applicable to such Loan and, as to
any Base Rate Loan, the fifth Business Day of each month.

          "Interest Period" means, as to any Offshore Rate Loan, the period
commencing on the Borrowing Date of such Loan or on the Conversion/Continuation
Date on which the Loan is converted into or continued as an Offshore Rate Loan,
and ending on the date selected by the Borrower as the ending date thereof, not
to exceed a period of 60 days, in its Notice of Borrowing or Notice of
Conversion/Continuation;

          provided, however, that:

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

                                       16

<PAGE>

          (b)  any Interest Period pertaining to an Offshore Rate Loan that
begins on the last Business Day of a calendar month (or on a day for which there
is no numerically corresponding day in the calendar month at the end of such
Interest Period) shall end on the last Business Day of the calendar month at the
end of such Interest Period; and

          (c)  no Interest Period shall extend beyond the Expiration Date.

          "IRS" means the Internal Revenue Service, and any Governmental
Authority succeeding to any of its principal functions under the Code.

          "Issue" means, with respect to any Letter of Credit, to issue or to
extend the expiry of, or to renew or increase the amount of, such Letter of
Credit; and the terms "Issued," "Issuing" and "Issuance" have corresponding
meanings.

          "Issuing Banks" initially means Fortis and BNP Paribas, and in the
future means any Bank which Issues Letters of Credit hereunder, in such Bank's
capacity as an issuer of one or more Letters of Credit hereunder, together with
any replacement letter of credit issuer arising under Section 2.14.

          "L/C Advance" means each Bank's participation in any L/C Borrowing or
Reducing L/C Borrowing in accordance with (i) its Pro Rata Share with respect to
Letters of Credit Issued prior to the Conversion to Reduced Funding Banks Date
and (ii) its proportionate share, if any, as an Approving Bank with respect to
all Letters of Credit Issued thereafter.

          "L/C Amendment Application" means an application form for amendment of
outstanding standby or commercial documentary letters of credit as shall at any
time be in use at any Issuing Bank, as such Issuing Bank shall request.

          "L/C Application" means an application form for Issuances of standby
or commercial documentary letters of credit as shall at any time be in use at
any Issuing Bank, as such Issuing Bank shall request.

          "L/C Borrowing" means an extension of credit resulting from either a
drawing under any Letter of Credit or a Reducing L/C Borrowing, which extension
of credit shall not have been reimbursed on the date when made nor converted
into a Borrowing of Revolving Loans under Subsection 3.03(c).

          "L/C Cap" means the maximum availability for Issuance of Letters of
Credit under the Borrowing Base Line which shall be an amount equal to the total
Effective Amount of L/C Obligations plus the Effective Amount of then
outstanding Loans not to exceed the Borrowing Base Advance Cap.

          "L/C Obligations" means at any time the sum of (a) the aggregate
undrawn amount of all Letters of Credit then outstanding, plus (b) the amount of
all unreimbursed drawings under all Letters of Credit, including all outstanding
L/C Borrowings.

                                       17

<PAGE>

          "L/C-Related Documents" means the Letters of Credit, the L/C
Applications, the L/C Amendment Applications, the Continuing Agreement for
Letters of Credit dated December 1, 2001, and any other document relating to any
Letter of Credit, including, but not limited to, any Issuing Bank's standard
form documents for letter of credit issuances.

          "Lending Office" means, as to any Bank, the office or offices of such
Bank specified as its "Lending Office" on Schedule 11.02, or such other office
or offices as such Bank may from time to time notify the Borrower and the
Administrative Agent.

          "Letter of Credit Facility" means, at any time, the uncommitted
undertaking to provide Letters of Credit in an amount equal to the lesser of (a)
the amount of the aggregate Uncommitted Line Portions at such time and (b)
$250,000,000, as such amount may be reduced at or prior to such time pursuant to
this Agreement.

          "Letters of Credit" means (a) any letters of credit (whether standby
letters of credit or commercial documentary letters of credit) Issued by an
Issuing Bank pursuant to Article III, (b) any Reducing Letters of Credit, and
(c) any of the Existing Letters of Credit.

          "Liabilities from Risk Management Activities" means unrealized losses
resulting from Mark-to-Market valuation of storage, transportation, and
requirements contracts, over-the-counter and exchange-traded options, and
forwards, futures, and swap contracts.

          "LIBOR" means the rate of interest per annum determined by the
Administrative Agent as the rate at which dollar deposits in the approximate
amount of Fortis' Offshore Rate Loan for such Interest Period would be offered
by Fortis' London branch as stated on Telerate News Service Page 3750 as of
11:00 a.m. (London time) two (2) Business Days prior to the Borrowing Date. If
such interest rates shall cease to be available from Telerate News Service, the
LIBOR Rate shall be determined from such financial reporting service or other
information as shall be mutually acceptable to the Administrative Agent and the
Borrower.

          "Lien" means any security interest, mortgage, deed of trust, pledge,
hypothecation, assignment, charge, encumbrance, or lien, statutory or other in
respect of any property, including those created by, arising under or evidenced
by any conditional sale or other title retention agreement, the interest of a
lessor under a capital lease, any financing lease having substantially the same
economic effect as any of the foregoing, or the filing of any financing
statement naming the owner of the asset to which such lien relates as debtor,
under the Uniform Commercial Code or any comparable law.

          "Line" means the Borrowing Base Line.

          "Loan" means any extension of credit by a Bank to the Borrower under
Article II or Article III in the form of a Revolving Loan or an L/C Advance. All
Loans are demand in nature and Borrower hereby acknowledges and agrees the
Banks' right to demand payment at any time and for any reason or for no reason,
and such right is absolute and unconditional.

          "Loan Documents" means this Agreement, the Notes, the Guaranty, the
Security Agreement, the L/C-Related Documents, Swap Contracts, the Three Party
Agreement, the Atmos Support Agreement, and all other documents delivered to the
Administrative Agent or any Bank in connection herewith.

                                       18

<PAGE>

          "Lock Box" has the meaning specified in Section 7.14.

          "Long Position" means the aggregate number of MMBTUS of Product,
including that of the Prompt Month, which are either held in inventory by the
Borrower or which the Borrower has contracted to purchase (whether by purchase
of a contract on a commodities exchange or otherwise), or which the Borrower
will receive on exchange or the notional quantity under a swap contract
including, without limitation, all option contracts representing the obligation
of the Borrower to purchase Product at the option of a third party, and in each
case, for which a fixed purchase price has been set. Long Positions will be
expressed as a positive number.

          "Margin Stock" means "margin stock" as such term is defined in
Regulation G, T, U or X of the FRB.

          "Mark-to-Market" means, the method of accounting used to account for
derivative commodity instruments entered into for trading purposes, in
accordance with EITF 98-10, "Accounting for Energy Trading and Risk Management
Activities" and any future open obligation.

          "Marketable Securities" means (a) certificates of deposit issued by
any bank with a Fitch rating of A or better, (b) commercial paper rated P-1, A-1
or F-1, (c) bankers acceptances rated prime, or (d) U.S. Government obligations
with tenors of 90 days or less.

          "Material Adverse Effect" means (a) a material adverse change in, or a
material adverse effect upon, the operations, business, properties, condition
(financial or otherwise) or prospects of the Borrower or the Borrower and its
Subsidiaries taken as a whole, (b) a material impairment of the ability of the
Borrower to perform under any Loan Document and to avoid any Event of Default,
or (c) a material adverse effect upon the legality, validity, binding effect or
enforceability against the Borrower or any of its Subsidiaries.

          "Maturity Date" means March 31, 2003.

          "Multiemployer Plan" means a "multiemployer plan," within the meaning
of Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate
makes, is making, or is obligated to make contributions or, during the preceding
three (3) calendar years, has made, or been obligated to make, contributions.

          "Net Position" means the sum of all Long Positions and Short Positions
of the Borrower.

          "Net Position Report" means a report in form attached hereto as
Exhibit F.

          "Net Working Capital" means, as to the Borrower and the Subsidiaries,
the excess of Current Assets (minus all amounts due from employees, owners,
Subsidiaries and Affiliates other than Accounts of Atmos Energy Corporation and
its Subsidiaries and Affiliates permitted

                                       19

<PAGE>

to be included as Eligible Accounts in the calculation of the Borrowing Base
Advance Cap) over Current Liabilities (excluding the current portion of the
Subordinated Debt), less investments in Capital Stock.

          "Notes" means the promissory notes executed by the Borrower in favor
of a Bank pursuant to Subsection 2.02(b), in form approved by the Banks. A Note
will be issued by the Borrower to each entity that becomes a Bank hereunder from
time to time, but will not be issued to Participants of a Bank.

          "Notice of Borrowing" means the applicable notice in substantially the
form of Exhibit A.

          "Notice of Conversion/Continuation" means a notice in substantially
the form of Exhibit B.

          "Obligations" means all advances, debts, liabilities, obligations,
covenants and duties arising under any Loan Document, owing by the Borrower to
any Bank, or any affiliate of any Bank, Agents, or any Indemnified Person,
whether direct or indirect (including those acquired by assignment), absolute or
contingent, due or to become due, now existing or hereafter arising, including,
without limitation, all obligations of the Borrower under Revolving Loans,
Letters of Credit, and any Swap Contracts.

          "Offshore Effective Amount" means the product of the principal amount
of an Offshore Rate Loan or requested Offshore Rate Loan and the number of days
in the applicable Interest Period for such Offshore Rate Loan.

          "Offshore Rate" means, for any Interest Period, with respect to
Offshore Rate Loans comprising part of the same Borrowing, the rate of interest
per annum (rounded upward to the next 1/16th of 1%) determined by Agents as
follows:

                                              LIBOR
          Offshore Rate =         -----------------------------
                           1.00 - Eurodollar Reserve Percentage

          The Offshore Rate shall be adjusted automatically as to all Offshore
Rate Loans then outstanding as of the effective date of any change in the
Eurodollar Reserve Percentage.

          "Offshore Rate Loan" means a Loan that bears interest based on the
Offshore Rate.

          "Organization Documents" means (a) for any corporation, the
certificate or articles of incorporation, the bylaws, any certificate of
determination or instrument relating to the rights of preferred shareholders of
such corporation, any shareholder rights agreement, and all applicable
resolutions of the board of directors (or any committee thereof) of such
corporation, and (b) for any partnership, the partnership agreement, and all
other documents or filings as may be required by the Secretary of State (or
other applicable governmental agency) in the state of such partnership's
formation.

                                       20

<PAGE>

          "Original Credit Agreement" means that certain Credit Agreement, dated
as of December 1, 2001, between the Borrower, the banks party thereto from time
to time, and Fortis Capital Corp., as agent for the banks, as heretofore
amended.

          "Other Taxes" means any present or future stamp or documentary taxes
or any other excise or property taxes, charges or similar levies which arise
from any payment made hereunder or from the execution, delivery or registration
of, or otherwise with respect to, this Agreement or any other Loan Documents.

          "Participant" has the meaning specified in Subsection 11.08(d).

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

          "Pension Plan" means a pension plan (as defined in Section 3(2) of
ERISA) subject to Title IV of ERISA which the Borrower sponsors, maintains, or
to which it makes, is making, or is obligated to make contributions, or in the
case of a multiple employer plan (as described in Section 4064(a) of ERISA) has
made contributions at any time during the immediately preceding five (5) plan
years.

          "Permitted Liens" has the meaning specified in Section 8.01.

          "Person" means an individual, partnership, corporation, business
trust, joint stock company, trust, unincorporated association, joint venture or
Governmental Authority.

          "Plan" means an employee benefit plan (as defined in Section 3(3) of
ERISA) which the Borrower sponsors or maintains or to which the Borrower makes,
is making, or is obligated to make contributions and includes any Pension Plan.

          "Product" means natural gas.

          "Pro Rata Share" means, as to any Bank at any time, the percentage
equivalent (expressed as a decimal, rounded to the ninth decimal place) at such
time of such Bank's Uncommitted Line Portion divided by the combined total of
the Uncommitted Line of all the Banks.

          "Prompt Month" means, as of any Reporting Effective Date, the month
following the month such reporting occurs.

          "Realizable Unrealized Profits" means at any time, the sum of the
Borrower's net unrealized cash market profits realizable within six months from
such time, from Accounts of the Borrower which are Eligible Accounts (other than
the requirement of subparagraph (h) in the definition of "Eligible Accounts")
and which are for Product which has been contracted to be delivered to an
Account Debtor, net of, in each case (i) any accounts payable owing to the
Account Debtor from the Borrower on such Account and (ii) after application
thereof to any Eligible Accounts, Eligible Exchange Receivables, and Unbilled
Eligible Accounts with such Account Debtor, other offsets against amounts owed
to such Account Debtor, whether in respect of unbilled purchases,
out-of-the-money positions or unperformed contracts for purchase.

                                       21

<PAGE>

          "Reducing Letters of Credit" means any letters of credit (whether
standby letters of credit or commercial documentary letters of credit) that
(a) are Issued by an Issuing Bank pursuant to Article III, and (b) specifically
provide that the amount available for drawing under such letters of credit will
be reduced, automatically and without any further amendment or endorsement to
such letters of credit, by the amount of any payment or payments made to the
beneficiary of such Letter of Credit by the Borrower if such payment or payments
(i) are made through a bank and (ii) reference such letters of credit by the
letter of credit numbers thereof, notwithstanding the fact that such payment or
payments are not made pursuant to conforming and proper draws under such letters
of credit.

          "Reducing L/C Borrowing" means any extension of credit by the Banks to
the Borrower for the purpose of funding any payment or payments made to the
beneficiary of a Reducing Letter of Credit by the Borrower if such payment or
payments (a) are made through the Issuing Bank of such Reducing Letter of
Credit, (b) reference the Reducing Letter of Credit by the letter of credit
number thereof, and (c) are not made pursuant to a conforming and proper draws
under such Reducing Letter of Credit.

          "Replacement Bank" has the meaning specified in Section 4.08.

          "Reportable Event" means, any of the events set forth in Section
4043(b) of ERISA or the regulations thereunder, other than any such event for
which the 30-day notice requirement under ERISA has been waived in regulations
issued by the PBGC.

          "Reporting Effective Date" means the effective date of any report
required to be made hereunder.

          "Required Banks" means, at any time, Banks holding at least two-thirds
of all of the Uncommitted Line Portions.

          "Requirement of Law" means, as to any Person, any law (statutory or
common), treaty, rule or regulation or determination of an arbitrator or of a
Governmental Authority, in each case applicable to or binding upon the Person or
any of its property or to which the Person or any of its property is subject.

          "Responsible Officer" means any of the following: J.D. Woodward III,
Ronald W. Bahr or Randy W. Randel.

          "Revolving Loan" has the meaning specified in Section 2.01.

          "Security Agreements" means a security agreement, in form and
substance acceptable to the Collateral Agent and the Banks, duly executed by the
Borrower and delivered to the Collateral Agent for the benefit of the Banks
granting to the Collateral Agent, as collateral agent for the Banks, a first and
prior security interest in and Lien upon the Collateral, and all Hedging
Assignments.

          "Short Position" means the aggregate number of MMBTUS of Product,
including that of the Prompt Month, which the Borrower has contracted to sell
(whether by sale of a contract on a commodities exchange or otherwise) or
deliver on exchange or under a swap

                                       22

<PAGE>

contract, including, without limitation, all option contracts representing the
obligation of the Borrower to sell Product at the option of a third party and in
each case for which a fixed sales price has been set. Short Positions shall be
expressed as a negative number.

          "Subordinated Debt" means Indebtedness of the Borrower which has been
reported to the Banks and which has been subordinated to the Obligations
pursuant to a Subordination Agreement substantially in the form attached hereto
as Exhibit G.

          "Subsidiary" of a Person means any corporation, association,
partnership, joint venture, limited liability company or other business entity
of which more than 50% of the voting stock or other equity interests (in the
case of Persons other than corporations), is owned or controlled directly or
indirectly by the Person, or one or more of the Subsidiaries of the Person, or a
combination thereof. Unless the context otherwise clearly requires, references
herein to a "Subsidiary" refer to a Subsidiary of the Borrower.

          "Surety Instruments" means all letters of credit (including standby
and commercial), banker's acceptances, bank guaranties, shipside bonds, surety
bonds and similar instruments.

          "Swap Bank" means BNP Paribas or Societe Generale, or any Affiliate of
BNP Paribas or Societe Generale, or any other Bank approved by the Agents.

          "Swap Contract" means any agreement entered into with a Swap Bank,
whether or not in writing, relating to any single transaction that is a rate
swap, basis swap, forward rate transaction, commodity swap, commodity option,
equity or equity index swap or option, bond, note or bill option, interest rate
option, forward foreign exchange transaction, cap, collar or floor transaction,
currency swap, cross-currency rate swap, currency option or any other similar
transaction (including any option to enter into any of the foregoing) or any
combination of the foregoing and, unless the context clearly requires, any
master agreement relating to or governing any or all of the foregoing.

          "Swap-Related Standby Letter of Credit" means any Letter of Credit
issued under the Letter of Credit Facility to support obligations of the
Borrower under a Swap Contract.

          "Tangible Net Worth" means (a) the sum of the Borrower's assets, as
determined in accordance with GAAP, less (b) the sum of the Borrower's
liabilities excluding Subordinated Debt, as determined in accordance with GAAP,
less (c) all amounts due from employees, owners, Subsidiaries and Affiliates
other than Accounts permitted to be included as Eligible Accounts in the
calculation of the Borrowing Base Advance Cap, less (d) investments in Capital
Stock, less (e) the intangible assets of the Borrower, as determined in
accordance with GAAP.

          "Taxes" means any and all present or future taxes, levies,
assessments, imposts, duties, deductions, fees, withholdings, or similar
charges, and all liabilities with respect thereto, excluding, in the case of
each Bank and the Administrative Agent, taxes imposed on or measured by each
Bank's net income or capital (with respect to franchise taxes or similar taxes)
by the jurisdiction (or any political subdivision thereof) under the laws of
which such Bank or the Administrative Agent, as the case may be, is organized or
maintains a lending office.

                                       23

<PAGE>

          "Three Party Agreement" means the Three Party Agreement Relating to
Lockbox Services (With Activation) dated April 15, 2002, among the Borrower,
Fortis Capital Corp. and Bank of America, N.A.

          "Tier I Account" means an Eligible Account with a Tier I Account
Party.

          "Tier I Account Party" means an Account Debtor which is approved by
the Banks in their sole discretion as a Tier I Account Party.

          "Tier I Unbilled Account" means Unbilled Eligible Accounts with a Tier
I Account Party.

          "Tier II Account" means Eligible Accounts with a Tier II Account
Party.

          "Tier II Account Party" means any Account Debtor approved by the Banks
in their sole discretion as a Tier II Account Party.

          "Tier II Unbilled Account" means Unbilled Eligible Accounts with a
Tier II Account Party.

          "Total Liabilities" means, with respect to any Person on any date of
determination, all liabilities of such Person and its Subsidiaries that, in
accordance with GAAP, would be classified as liabilities on the balance sheet of
a Person conducting a business the same as or similar to that of such Person, as
determined on a Consolidated basis, but excluding to the extent otherwise
included therein any portion of the Subordinated Debt.

          "Total Subscribed Line Portions" means the Dollar amount shown in
Schedule 2.01 across from the phrase "Total Subscribed Line Portions".

          "Type" means either a Base Rate Loan or an Offshore Rate Loan.

          "Unbilled Eligible Accounts" means Accounts of the Borrower for
Product which has been delivered to an Account Debtor and which would be
Eligible Accounts but for the fact that such Accounts have not actually been
invoiced at such time, net of, in each case (i) any accounts payable owing to
the Account Debtor from the Borrower on such Account and (ii) after application
thereof to any Eligible Accounts, Eligible Exchange Receivables, and Realizable
Unrealized Profits with such Account Debtor, other offsets against amounts owed
to such Account Debtor, whether in respect of unbilled purchases,
out-of-the-money positions or unperformed contracts for purchase.

          "Uncommitted Line" means the aggregate Line limits of all the Banks as
is set forth on Schedule 2.01.

          "Uncommitted Line Portion" means for each Bank the portion of each of
the Line limits assigned to such Bank as set forth on Schedule 2.01.

          "Undelivered Product Value" means the lesser of the (a) cost or (b)
current market value of Product purchased by the Borrower under the Letters of
Credit but which has not been physically delivered to the Borrower. Undelivered
Product Value cannot simultaneously be included in an Eligible Exchange
Receivable.

                                       24

<PAGE>

          "Unfunded Pension Liability" means the excess of a Plan's benefit
liabilities under Section 4001(a)(16) of ERISA, over the current value of that
Plan's assets, determined in accordance with the assumptions used for funding
the Pension Plan pursuant to Section 412 of the Code for the applicable plan
year.

          "United States" and "U.S." each means the United States of America.

          "Unrealized Mark-to-Market Losses" means Borrower's unrealized
Mark-to-Market losses as of the day of determination of Borrower's Borrowing
Base to be reported on a Borrowing Base Collateral Position Report. Such losses,
if any, to be calculated by subtracting (a) the sum of the current Liabilities
from Risk Management Activities and noncurrent Liabilities from Risk Management
Activities from (b) the sum of current Assets from Risk Management Activities
and noncurrent Assets from Risk Management Activities on the day of
determination of the Borrower's Borrowing Base. If this amount is less than
zero, the Unrealized Mark-to-Market Loss is the absolute value of the
difference. If this amount is greater than zero, the Unrealized Mark-to-Market
Loss is zero.

          "Voting Interests" means shares of capital stock issued by a
corporation, or equivalent Equity Interests in any other Person, the holders of
which are ordinarily, in the absence of contingencies, entitled to vote for the
election of directors (or persons performing similar functions) of such Person,
even if the right to so vote has been suspended by the happening of such a
contingency.

          1.02 Other Interpretive Provisions.

          (a)  The meanings of defined terms are equally applicable to the
singular and plural forms of the defined terms.

          (b)  The words "hereof," "herein," "hereunder" and similar words refer
to this Agreement as a whole and not to any particular provision of this
Agreement; and Subsection, Section, Schedule and Exhibit references are to this
Agreement unless otherwise specified.

          (c)  (i)   The term "documents" includes any and all instruments,
documents, agreements, certificates, indentures, notices and other writings,
however evidenced.

               (ii)  The term "including" is not limiting and means "including
without limitation."

               (iii) In the computation of periods of time from a specified date
to a later specified date, the word "from" means "from and including"; the words
"to" and "until" each mean "to but excluding," and the word "through" means "to
and including."

          (d)  Unless otherwise expressly provided herein, (i) references to
agreements (including this Agreement) and other contractual instruments shall be
deemed to include all subsequent amendments and other modifications thereto, but
only to the extent such amendments

                                       25

<PAGE>

and other modifications are not prohibited by the terms of any Loan Document,
and (ii) references to any statute or regulation are to be construed as
including all statutory and regulatory provisions consolidating, amending,
replacing, supplementing or interpreting the statute or regulation.

          (e)  The captions and headings of this Agreement are for convenience
of reference only and shall not affect the interpretation of this Agreement.

          (f)  This Agreement and other Loan Documents may use several different
limitations, tests or measurements to regulate the same or similar matters. All
such limitations, tests and measurements are cumulative and shall each be
performed in accordance with their terms.

          (g)  This Agreement and the other Loan Documents are the result of
negotiations among and have been reviewed by counsel to the Agents, the Banks,
the Borrower and the other parties, and are the products of all parties.
Accordingly, they shall not be construed against the Banks or Agents merely
because of Agents' or Banks' involvement in their preparation.

          1.03 Accounting Principles.

          (a)  Unless the context otherwise clearly requires, all accounting
terms not expressly defined herein shall be construed, and all financial
computations required under this Agreement shall be made in accordance with
GAAP, consistently applied.

          (b)  References herein to "fiscal year" and "fiscal quarter" refer to
such fiscal periods of the Borrower.

                                   ARTICLE II

                                   THE CREDITS

          2.01 Amounts and Terms of Uncommitted Line.

          (a)  Each Bank severally agrees, on an UNCOMMITTED AND ABSOLUTELY
DISCRETIONARY basis, and on the terms and conditions set forth herein, to
consider making Loans, from time to time, to the Borrower under the Borrowing
Base Line (each such loan, a "Revolving Loan") on any Business Day during the
period from the Closing Date to the Expiration Date, in an aggregate amount not
to exceed at any time outstanding (i) such Bank's Uncommitted Line Portion for
the Borrowing Base Line; or (ii) the Dollar Advance Cap; provided, however,
that, after giving effect to any Borrowing of Revolving Loans, the Effective
Amount of all outstanding Revolving Loans, plus the Effective Amount of all L/C
Obligations, shall not exceed the Borrowing Base Advance Cap. At no time shall
the Dollar Advance Cap be exceeded.

          (b)  Advances Related to the Swap Contracts. In addition to advances
requested from time to time by the Borrower, in the event that either (i) any
amounts owing to BNP Paribas

                                       26

<PAGE>

or any of its Affiliates under any Swap Contract are not paid within two (2)
Business Days after such obligation arises, then BNP Paribas shall notify the
Administrative Agent of such failure to pay and the Administrative Agent
(without the necessity of any instructions or request from the Borrower) shall
make a Revolving Loan in accordance with the provisions of Section 2.03 of this
Agreement under the Borrowing Base Line for any amounts due by the Borrower to
BNP Paribas or any of its Affiliates under any Swap Contract, and then apply the
proceeds of such advance to pay to BNP Paribas or any of its Affiliates all
amounts owed to such Person under such Swap Contract. Upon making any such
Revolving Loan, the Administrative Agent shall send notice of such Revolving
Loan to the Borrower and the Banks. Any such advance shall initially be a Base
Rate Loan. In the event that any such advance made to fund BNP Paribas or any of
its Affiliates results in an advance in excess of the Borrowing Base Advance
Cap, the Banks shall have no duty to fund their pro rata share of any excess
resulting from such advance made to repay amounts owing to BNP Paribas or any of
its Affiliates under any Swap Contract, but BNP Paribas' or any of its
Affiliates' outstandings hereunder shall be deemed to be increased by the amount
of such excess. In the event any advance described above does exceed the
Borrowing Base Advance Cap, the Borrower shall pay to the Administrative Agent,
for the benefit of BNP Paribas or any of its Affiliates, the amount of such
excess, together with interest thereon, within one (1) Business Day after the
date of such advance and, notwithstanding anything to the contrary herein, the
Banks shall not share in such payment.

          THE BORROWER ACKNOWLEDGES AND AGREES THAT THE BANKS HAVE ABSOLUTELY NO
DUTY TO FUND ANY REVOLVING LOAN REQUESTED BY THE BORROWER BUT WILL EVALUATE EACH
LOAN REQUEST AND IN EACH BANK'S ABSOLUTE AND SOLE DISCRETION WILL DECIDE WHETHER
TO FUND SUCH LOAN REQUEST. THE BORROWER FURTHER ACKNOWLEDGES AND AGREES THAT BNP
PARIBAS HAS ABSOLUTELY NO DUTY TO ENTER INTO ANY SWAP CONTRACT, AND THE ENTERING
INTO OF ANY SWAP CONTRACT SHALL BE AT BNP PARIBAS' ABSOLUTE AND SOLE DISCRETION.

          2.02 Loan Accounts.

          (a)  The Loans made by each Bank and the Letters of Credit Issued by
an Issuing Bank shall be evidenced by one or more accounts or records maintained
by the Administrative Agent in the ordinary course of business. The accounts or
records maintained by the Administrative Agent shall be conclusive absent
manifest error of the amount of the Loans made by the Banks to the Borrower and
the Letters of Credit Issued for the account of the Borrower hereunder, and the
interest and payments thereon. Any failure so to record or any error in doing so
shall not, however, limit or otherwise affect the Obligation of the Borrower
hereunder to pay any amount owing with respect to the Loans or any Letter of
Credit.

          (b)  Upon the request of any Bank made through the Administrative
Agent, the Loans made by such Bank may be evidenced by one or more Notes,
instead of loan accounts. Each such Bank may endorse on the schedules annexed to
its Note(s) the date, amount and maturity of each Loan made by it and the amount
of each payment of principal made by the Borrower with respect thereto. Each
such Bank is irrevocably authorized by the Borrower to endorse its Note(s) and
each Bank's record shall be conclusive absent manifest error; provided,

                                       27

<PAGE>

however, that the failure of a Bank to make, or an error in making, a notation
thereon with respect to any Loan shall not limit or otherwise affect the
Obligations of the Borrower hereunder or under any such Note to such Bank.

          2.03 Procedure for Borrowing.

          (a)  Each Borrowing of Revolving Loans consisting only of Base Rate
Loans, if approved by the Banks in their sole discretion, shall be made upon the
Borrower's irrevocable written notice delivered to the Administrative Agent and
the Banks in the form of a Notice of Borrowing (Revolving Loan), which notice
must be received by the Administrative Agent and the Banks by no later than
12:00 p.m. noon (New York City time) on the Borrowing Date specifying the amount
of the Borrowing. Each such Notice of Borrowing shall be by electronic transfer
or facsimile, confirmed immediately in an original writing. Each Borrowing of
Revolving Loans that includes any Offshore Rate Loans, if approved by the Banks
in their sole discretion, shall be made upon the Borrower's irrevocable written
notice delivered to the Administrative Agent and the Banks in the form of a
Notice of Borrowing (which notice must be received by the Administrative Agent
by no later than 12:00 p.m. noon (New York City time) four (4) Business Days
prior to the requested Borrowing Date), specifying the amount of the Borrowing.
Each such Notice of Borrowing shall be by electronic transfer or facsimile,
confirmed immediately in an original writing. Each requested Offshore Rate Loan
must have an Offshore Effective Amount of at least $15,000,000.

          (b)  The Administrative Agent will promptly notify each Bank of its
receipt of any Notice of Borrowing and of the amount of such Bank's Pro Rata
Share of that Borrowing.

          (c)  Unless a Bank has provided the Administrative Agent with, and the
Administrative Agent has actually received, a written notice in the form
attached hereto as Exhibit H prior to 5:00 p.m. (New York City time) one
Business Day immediately prior to the proposed Borrowing Date that such Bank
does not approve further Borrowings and/or Issuances of Letters of Credit, if
the Administrative Agent elects in its sole discretion to advance a Loan
pursuant to a Notice of Borrowing, each Bank will be deemed to have approved
such Borrowing and will make the amount of its Pro Rata Share of such Borrowing
available to the Administrative Agent for the account of the Borrower at the
Administrative Agent's payment office by 3:00 p.m. (New York City time) on the
Borrowing Date requested by the Borrower in funds immediately available to the
Administrative Agent. The proceeds of all such Loans will then be made available
to the Borrower by the Administrative Agent at such office by crediting the Lock
Box with the aggregate of the amounts made available to the Administrative Agent
by the Banks and in like funds as received by the Administrative Agent. If any
Bank in a timely manner provides the Administrative Agent with such a written
notice of its disapproval of further Borrowings and/or Issuances of Letters of
Credit, then the Administrative Agent shall notify the Borrower that one or more
of the Banks have elected not to fund further Borrowings and/or participate in
further Issuances of Letters of Credit and whether a Bank (or Banks) has (have)
elected to become the Approving Bank(s) thereby triggering the Conversion to
Reduced Funding Banks Date.

                                       28

<PAGE>

          2.04 Conversion and Continuation Elections.

          (a)  Borrower may, upon irrevocable written notice to the
Administrative Agent in accordance with Subsection 2.04(b):

               (i)   elect, as of any Business Day, in the case of Base Rate
     Loans, or as of the last day of the applicable Interest Period, in the case
     of any Offshore Rate Loan, to convert any such Loans into Loans of any
     other Type (provided, however, that the Offshore Effective Amount of each
     Offshore Rate Loan must be at least $15,000,000); or

               (ii)  elect, as of the last day of the applicable Interest
     Period, to continue any Revolving Loans having Interest Periods expiring on
     such day (provided, however, that the Offshore Effective Amount of each
     Offshore Rate Loan must be at least $15,000,000);

provided, however, that if at any time the aggregate amount of Offshore Rate
Loans in respect of any Borrowing is reduced, by payment, prepayment, or
conversion of part thereof, to have an Offshore Effective Amount of less than
$15,000,000, such Offshore Rate Loans shall automatically convert into Base Rate
Loans, and on and after such date the right of the Borrower to continue such
Loans as, and convert such Loans into, Offshore Rate Loans shall terminate.

          (b)  Borrower shall deliver a Notice of Conversion/Continuation to be
received by the Administrative Agent not later than 12:00 p.m. noon (New York
City time) on the Conversion/Continuation Date if the Loans are to be converted
into Base Rate Loans; and four (4) Business Days in advance of the
Conversion/Continuation Date, if the Loans are to be converted into or continued
as Offshore Rate Loans, specifying:

               (i)   the proposed Conversion/Continuation Date;

               (ii)  the aggregate amount of Loans to be converted or continued;

               (iii) the Type of Loans resulting from the proposed conversion or
     continuation; and

               (iv)  other than in the case of conversions into Base Rate Loans,
     the duration of the requested Interest Period.

          (c)  If upon the expiration of any Interest Period applicable to
Offshore Rate Loans, the Borrower has failed to timely select a new Interest
Period to be applicable to its Offshore Rate Loans, or if any Default or Event
of Default then exists, the Borrower shall be deemed to have elected to convert
such Offshore Rate Loans into Base Rate Loans effective as of the expiration
date of such Interest Period.

          (d)  The Administrative Agent will promptly notify each Bank of its
receipt of a Notice of Conversion/Continuation, or, if no timely notice is
provided by the Borrower, the Administrative Agent will promptly notify each
Bank of the details of any automatic conversion. All conversions and
continuations shall be made ratably according to the respective outstanding
principal amounts of the Loans, with respect to which the notice was given, held
by each Bank.

                                       29

<PAGE>

          (e)  Unless the Required Banks otherwise agree, during the existence
of a Default or Event of Default, the Borrower may not elect to have a Loan
converted into or continued as an Offshore Rate Loan.

          (f)  After giving effect to any Borrowing, conversion or continuation
of Loans, there may not be more than five (5) Interest Periods in effect.

          (g)  The Administrative Agent will promptly notify, in writing, each
Bank of the amount of such Bank's Pro Rata Share of that Borrowing.

          (h)  If any Bank has provided the Administrative Agent with, and the
Administrative Agent has actually received, a written notice in the form of
Exhibit H by 5:00 p.m. (New York City time) one Business Day immediately prior
to the requested Conversion/Continuation Date, then the Administrative Agent
shall notify the Borrower and the other Banks by no later than 6:00 p.m. (New
York City time) that one or more of the Banks has (have) elected not to
convert/continue such Loan and whether Bank(s) has (have) elected to become the
Approving Bank(s) thereby triggering the Conversion to Reduced Funding Banks
Date.

          2.05 Optional Prepayments The Borrower may, at any time or from time
to time, upon the Borrower's irrevocable written notice to the Administrative
Agent received prior to 1:00 p.m. (New York City time) on the date of
prepayment, prepay Loans in whole or in part without premium except any amounts
due by Borrower pursuant to Article IV. The Administrative Agent will promptly
notify each Bank of its receipt of any such prepayment, and of such Bank's Pro
Rata Share of such prepayment.

          2.06 Mandatory Prepayments of Loans; Mandatory Commitment Reductions.
If on any date the Effective Amount of L/C Obligations exceeds the L/C Cap, the
Borrower shall Cash Collateralize on such date the outstanding Letters of Credit
in an amount equal to the excess above any such cap. If on any date after giving
effect to any Cash Collateralization made on such date pursuant to the preceding
sentence, the Effective Amount of all Revolving Loans then outstanding plus the
Effective Amount of all L/C Obligations exceeds the lesser of (a) the Collateral
Position or (b) the total Uncommitted Line, or if the Effective Amount of all
Revolving Loans under the Borrowing Base Line then outstanding, plus the
Effective Amount of all L/C Obligations under such Line exceed the Borrowing
Base Advance Cap, the Borrower shall immediately, and without notice or demand,
prepay the outstanding principal amount of the Revolving Loans and L/C Advances
by an amount equal to the applicable excess.

          2.07 Repayment. The Borrower shall repay the principal amount of each
Revolving Loan to the Administrative Agent on behalf of the Banks, on the
Advance Maturity Date for such Loan. All amounts owing a Swap Bank under any
Swap Contract, to the extent such amounts have not been repaid from the proceeds
of a Revolving Loan, shall be paid on demand, or if no demand is made, on the
first (1st) Business Day after the Borrower receives notice that such amount was
advanced by or becomes owing to a Swap Bank.

                                       30

<PAGE>

          2.08 Interest.

          (a)  Each Revolving Loan (except for a Revolving Loan made as a result
of a drawing under a Letter of Credit or a Reducing L/C Borrowing) shall bear
interest on the outstanding principal amount thereof from the applicable
Borrowing Date at a floating rate per annum equal to the Base Rate plus the
Applicable Margin at all times such Loan is a Base Rate Loan or at the Offshore
Rate plus the Applicable Margin at all times such Loan is an Offshore Rate Loan.
Each Revolving Loan made as a result of a drawing under a Letter of Credit or a
Reducing L/C Borrowing, all amounts owing to BNP Paribas with respect to any
Swap Contract shall bear interest on the outstanding principal amount thereof
from the date funded at a floating rate per annum equal to the Base Rate plus
the Applicable Margin until such Loan has been outstanding for more than two (2)
Business Days and, thereafter, shall bear interest on the outstanding principal
amount thereof at a floating rate per annum equal to the Base Rate, plus three
percent (3.0%) per annum (the "Default Rate").

          (b)  Interest on each Revolving Loan shall be paid upon demand, or if
no demand is made, shall be paid in arrears on each Interest Payment Date.

          (c)  Notwithstanding subsection (a) of this Section, if any amount of
principal of or interest on any Loan, or any other amount payable hereunder or
under any other Loan Document is not paid in full when due (whether at stated
maturity, by acceleration, demand or otherwise), the Borrower agrees to pay
interest on such unpaid principal or other amount, from the date such amount
becomes due until the date such amount is paid in full, and after as well as
before any entry of judgment thereon to the extent permitted by law, payable on
demand, at a fluctuating rate per annum equal to the Default Rate.

          (d)  Anything herein to the contrary notwithstanding, the Obligations
of the Borrower to any Bank hereunder shall be subject to the limitation that
payments of interest shall not be required for any period for which interest is
computed hereunder, to the extent (but only to the extent) that contracting for
or receiving such payment by such Bank would be contrary to the provisions of
any law applicable to such Bank limiting the highest rate of interest that may
be lawfully contracted for, charged or received by such Bank, and in such event
the Borrower shall pay such Bank interest at the highest rate permitted by
applicable law.

          (e)  Regardless of any provision contained in any Note or in any of
the Loan Documents, none of the Banks shall ever be deemed to have contracted
for or be entitled to receive, collect or apply as interest under any such Note
or any Loan Document, or otherwise, any amount in excess of the maximum rate of
interest permitted to be charged by applicable law, and, in the event that any
of the Banks ever receive, collect or apply as interest any such excess, such
amount which would be excessive interest shall be applied to the reduction of
the unpaid principal balance of the Note, and, if the principal balance of such
Note is paid in full, any remaining excess shall forthwith be paid to the
Borrower. In determining whether or not the interest paid or payable under any
specific contingency exceeds the highest lawful rate, the Borrower and such Bank
shall, to the maximum 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 effect thereof, and (iii)
spread the total amount of interest throughout the entire contemplated term of
such Note so that the interest rate is uniform throughout such term; provided,
however, that if all Obligations under the Note and all Loan Documents are
performed in full prior to the end of the full contemplated term thereof,

                                       31

<PAGE>

and if the interest received for the actual term thereof exceeds the maximum
lawful rate, such Bank shall refund to the Borrower the amount of such excess,
or credit the amount of such excess against the aggregate unpaid principal
balance of such Bank's Note at the time in question.

          2.09 Fees. In addition to certain fees described in Section 3.08, the
Borrower shall pay to the Administrative Agent, for the account of each Bank,
fees in accordance with a separate letter agreement between the Agents, the
Banks and the Borrower. The Borrower shall also pay to the Agents, for their own
accounts, fees in accordance with a separate letter agreement between the Agents
and the Borrower.

          2.10 Computation of Fees and Interest.

          (a)  All other computations of fees and interest shall be made on the
basis of a 360-day year and actual days elapsed (which results in more interest
being paid than if computed on the basis of a 365-day year). Interest and fees
shall accrue during each period during which interest or such fees are computed
from the first day thereof through the last day thereof.

          (b)  Each determination of an interest rate by the Administrative
Agent shall be conclusive and binding on the Borrower and the Banks in the
absence of manifest error.

          2.11 Payments by the Borrower.

          (a)  All payments to be made by the Borrower shall be made without
set-off, recoupment or counterclaim. Except as otherwise expressly provided
herein, all payments by the Borrower shall be made to the Administrative Agent
for the account of the Banks at the Administrative Agent's Payment Office, and
shall be made in dollars and in immediately available funds, no later than 1:00
p.m. (New York City time) on the date specified herein. The Administrative Agent
will promptly distribute to each Bank its Pro Rata Share or Adjusted Pro Rata
Share, as the case may be, of such payment in like funds as received. Any
payment received by the Administrative Agent later than 1:00 p.m. (New York City
time) shall be deemed to have been received on the following Business Day and
any applicable interest or fee shall continue to accrue.

          (b)  Subject to the provisions set forth in the definition of
"Interest Period" herein, whenever any payment is due on a day other than a
Business Day, such payment shall be made on the following Business Day, and such
extension of time shall in such case be included in the computation of interest
or fees, as the case may be.

          (c)  Unless the Administrative Agent receives notice from the Borrower
prior to the date on which any payment is due to the Banks that the Borrower
will not make such payment in full as and when required, the Administrative
Agent may assume that the Borrower has made such payment in full to the
Administrative Agent on such date in immediately available funds and the
Administrative Agent may (but shall not be so required), in reliance upon such
assumption, distribute to each Bank on such due date an amount equal to the
amount then due such Bank. If and to the extent the Borrower has not made such
payment in full to the Administrative Agent, each Bank shall repay to the
Administrative Agent on demand such amount distributed to such Bank, together
with interest thereon at the Federal Funds Rate for each day from the date such
amount is distributed to such Bank until the date repaid.

                                       32

<PAGE>

          2.12 Payments by the Banks to the Administrative Agent. If and to the
extent any Bank shall not have made its full amount available to the
Administrative Agent in immediately available funds and the Administrative Agent
in such circumstances has made available to the Borrower such amount, that Bank
shall on the Business Day following such Borrowing Date make such amount
available to the Administrative Agent, together with interest at the Federal
Funds Rate for each day during such period. A notice of the Administrative Agent
submitted to any Bank with respect to amounts owing under this Section 2.12
shall be conclusive, absent manifest error. If such amount is so made available,
such payment to the Administrative Agent shall constitute such Bank's Loan on
the date of Borrowing for all purposes of this Agreement. If such amount is not
made available to the Administrative Agent on the Business Day following the
Borrowing Date, the Administrative Agent will notify the Borrower of such
failure to fund and, upon demand by the Administrative Agent, the Borrower shall
pay such amount to the Administrative Agent for the Administrative Agent's
account, together with interest thereon for each day elapsed since the date of
such Borrowing, at a rate per annum equal to the interest rate applicable at the
time to the Loans comprising such Borrowing.

          2.13 Sharing of Payments, Etc. If, other than as expressly provided
elsewhere herein, any Bank shall obtain on account of the Loans made by it any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) in excess of its Pro Rata Share or Adjusted Pro Rata
Share, as the case may be at such time (other than payments to BNP Paribas with
respect to advances made in excess of the Borrowing Base Advance Cap as a result
of payment under a Swap Contract), such Bank shall immediately (a) notify the
Administrative Agent of such fact, and (b) purchase from the other Banks such
participations in the Loans made by them as shall be necessary to cause such
purchasing Bank to share the excess payment pro rata with each of them;
provided, however, that if all or any portion of such excess payment is
thereafter recovered from the purchasing Bank, such purchase shall to that
extent be rescinded and each other Bank shall repay to the purchasing Bank the
purchase price paid therefor, together with an amount equal to such paying
Bank's ratable share (according to the proportion of (i) the amount of such
paying Bank's required repayment to (ii) the total amount so recovered from the
purchasing Bank) of any interest or other amount paid or payable by the
purchasing Bank in respect of the total amount so recovered. The Borrower agrees
that any Bank so purchasing a participation from another Bank may, to the
fullest extent permitted by law, exercise all its rights of payment (including
the right of set-off, but subject to Section 11.09) with respect to such
participation as fully as if such Bank were the direct creditor of the Borrower
in the amount of such participation. the Administrative Agent will keep records
(which shall be conclusive and binding in the absence of manifest error) of
participations purchased under this Section and will in each case notify the
Banks following any such purchases or repayments.

          2.14 The Election of Approving Banks to Continue Funding. If one or
more Banks (the "Declining Bank" or "Declining Banks") provides the
Administrative Agent with, and the Administrative Agent has actually received, a
written notice in the form of Exhibit H for reasons other than a Default and the
other Bank or Banks do approve further Revolving Loans (including the conversion
and extension of such Revolving Loans) or the further issuances of,

                                       33

<PAGE>

extensions of, the automatic renewal of or amendments to Letters of Credit, the
Administrative Agent shall notify the Banks by 6:00 p.m. (New York City time)
that same day. If the Bank or Banks which are not the Declining Banks desire,
they may (on a pro rata basis among the Banks that have elected to continue
funding) make the full or partial amount of such requested Revolving Loan or
issue or amend the requested Letter of Credit irrespective of the Declining
Banks' disapproval (in such case, the Banks that elect to continue funding shall
be referred to as the "Approving Banks"). In such event, from such date (the
"Conversion to Reduced Funding Banks Date") forward (a) all subsequent Revolving
Loans and Issuances of Letters of Credit or Amendments to Letters of Credit that
increase the face amount of a Letter of Credit or extend the term of a Letter of
Credit shall be made unilaterally by the Approving Banks and no Letter of Credit
thereafter Issued shall be participated in by the Declining Banks, (b) all
Banks' interests in the Collateral and loan management decisions shall be
pro-rata based on each Bank's total Effective Amount of Revolving Loans, plus
the Effective Amounts of such Bank's L/C Obligations from time to time, and (c)
the Approving Banks' Pro Rata Share of the Uncommitted Line Portion shall be
increased on the basis of each such advance and Issuance of a Letter of Credit
made by such approving Bank.

          Notwithstanding the foregoing, however, for purposes of allocating
repayments prior to the occurrence of a Default hereunder, the Adjusted Pro Rata
Share of the Uncommitted Line of each Bank shall remain fixed at the percentage
held by such Bank the day before the Conversion to Reduced Funding Banks Date,
without respect to any changes which may subsequently occur in such Bank's Pro
Rata Share of the Uncommitted Line except that in the event that Obligations
become owing to BNP Paribas and its Affiliates after such date pursuant to Swap
Contracts as a result of contracts or transactions existing on the Conversion to
Reduced Funding Banks Date, the Adjusted Pro Rata Share of each Bank shall be
recalculated to account for the increase in Obligations that have become owing
to BNP Paribas or its Affiliates until such time, if any, that all Declining
Banks are fully repaid. Upon the occurrence of a Default and thereafter,
repayments shall be allocated according to the Adjusted Pro Rata Share of the
outstanding balances held by the Banks on the date of Default except that in the
event that Obligations become owing to BNP Paribas or its Affiliates after such
date pursuant to Swap Contracts as a result of contracts or transactions
existing on the date of such Default, the Adjusted Pro Rata Share of each Bank
shall be recalculated to account for the increase in Obligations owing to BNP
Paribas or its Affiliates.

          2.15 Payments from Guarantors and Liquidation of Collateral.
Notwithstanding anything to the contrary contained herein, in the event
repayment is made to the Banks by Guarantors or pursuant to a liquidation of
Collateral, such repayment shall be shared by the Banks on the basis of each
Bank's then existing Adjusted Pro Rata Share rather than each Bank's Pro Rata
Share.

                                       34

<PAGE>

                                   ARTICLE III

                              THE LETTERS OF CREDIT

          3.01 The Letter of Credit Lines.

          (a)  On an uncommitted basis and on the terms and conditions set forth
herein and unless a Bank has provided the Administrative Agent with, and the
Administrative Agent has actually received, a written notice in the form
attached hereto as Exhibit H prior to 5:00 p.m. (New York City time) one
Business Day immediately prior to the proposed date of Issuance of a Letter of
Credit that such Bank does not approve further Borrowings and/or Issuances of
Letters of Credit, (i) each Issuing Bank agrees, (A) from time to time on any
Business Day during the period from the Closing Date to the Expiration Date, to
consider the Issuance of Letters of Credit for the account of the Borrower under
the Borrowing Base Line and to consider whether to amend or renew Letters of
Credit previously Issued by it, in accordance with Subsections 3.02(b), 3.02(c),
and 3.02(d) and (B) to honor drafts under the Letters of Credit; and (ii) each
of the Banks will be deemed to have approved such Issuance, amendment or
renewal, and shall participate in Letters of Credit Issued for the account of
the Borrower. If any Bank gives the Administrative Agent timely notice of its
disapproval of further Borrowings and/or Issuances of Letters of Credit, then
the Administrative Agent shall notify the Borrower that one or more of the Banks
have elected not to fund further Borrowings or participate in the further
Issuances of Letters of Credit, and whether a Bank (or Banks) has (have) elected
to become the Approving Bank(s) thereby triggering the Conversion to Reduced
Funding Banks Date. No Declining Bank shall have any obligation to or shall be
deemed to have participated in any Letters of Credit which are Issued on or
after the Conversion to Reduced Funding Banks Date. No Swap-Related Standby
Letter of Credit shall be Issued if, after giving effect to such Issuance, the
outstanding amounts of all Swap-Related Standby Letters of Credit plus the
Mark-to-Market value of amounts owed to Swap Banks by the Borrower under Swap
Contracts would exceed $50,000,000. Within the foregoing limits, and subject to
the other terms and conditions hereof including, without limitation, the
approval of all Banks (or after the Conversion to Reduced Funding Banks, all
Approving Banks) in their sole discretion, the Borrower's ability to request
that an Issuing Bank Issue Letters of Credit shall be fully revolving, and,
accordingly, the Borrower may, during the foregoing period, request that an
Issuing Bank Issue Letters of Credit to replace Letters of Credit which have
expired or which have been drawn upon and reimbursed. Borrower acknowledges and
agrees that the Existing Letters of Credit are an Obligation under this
Agreement.

          (b)  Each Issuing Bank is under no obligation to consider the Issuance
of or to Issue any Letter of Credit unless all Banks shall have consented
(deemed or explicit) to the Issuance of such Letter of Credit in their sole
discretion. An Issuing Bank is under no obligation to Issue any Letter of Credit
if:

               (i)    any order, judgment or decree of any Governmental
     Authority or arbitrator shall by its terms purport to enjoin or restrain
     such Issuing Bank from Issuing such Letter of Credit, or any Requirement of
     Law applicable to such Issuing Bank or any request or directive (whether or
     not having the force of law) from any Governmental Authority with
     jurisdiction over such Issuing Bank shall prohibit, or request that such
     Issuing Bank refrain from, the issuance of letters of credit generally or
     such Letter of Credit in particular or shall impose upon such Issuing Bank
     with respect to such Letter of Credit any restriction, reserve or capital
     requirement (for which such Issuing Bank is not otherwise compensated
     hereunder) not in effect on the Closing Date, or shall impose upon such
     Issuing Bank any unreimbursed loss, cost or expense which was not
     applicable on the Closing Date and which such Issuing Bank in good faith
     deems material to it;

                                       35

<PAGE>

               (ii)   such Issuing Bank has received written notice from any
     Bank, any other Issuing Bank, the Administrative Agent or the Borrower, on
     or prior to the Business Day prior to the requested date of Issuance of
     such Letter of Credit, that one or more of the applicable conditions
     contained in Article V is not then satisfied;

               (iii)  the expiry date of any requested Letter of Credit is after
     the earlier to occur of (A) 90 days after the date of Issuance of such
     Letter of Credit or (B) the Maturity Date, unless all the Banks have
     approved such expiry date in writing, but any Swap-Related Standby Letter
     of Credit may by its terms be renewable for successive 90-day periods
     unless a notice that the applicable Issuing Bank declines to renew such
     Letter of Credit is given to the applicable Issuing Bank and the
     Administrative Agent on or prior to any date for notice of non-renewal to
     the beneficiary set forth in such Swap-Related Standby Letter of Credit,
     but in any event at least five Business Days prior to the date of the
     notice of non-renewal of such Swap-Related Standby Letter of Credit, any
     such automatic renewal of a Letter of Credit being subject to the
     fulfillment of the applicable conditions set forth in Article V; provided
     that the terms of each of the Swap-Related Standby Letters of Credit that
     is automatically renewable (1) shall require the applicable Issuing Bank to
     give the beneficiary of such Swap-Related Standby Letter of Credit notice
     of any non-renewal prior to the expiry date, (2) shall permit such
     beneficiary, upon receipt of such notice, to draw under such Swap-Related
     Standby Letter of Credit prior to the expiry date of the Swap-Related
     Standby Letter of Credit, and (3) shall not permit the expiry date (after
     giving effect to any renewal) of such Swap-Related Standby Letter of Credit
     in any event to be extended to a date that is later than the Maturity Date.
     If a notice of non-renewal is given by the applicable Issuing Bank pursuant
     to the immediately preceding sentence, the related Swap-Related Standby
     Letter of Credit shall expire on its expiry date;

               (iv)   the expiry date of any such requested Letter of Credit is
     prior to the maturity date of any financial obligation to be supported by
     the requested Letter of Credit;

               (v)    such requested Letter of Credit is not in form and
     substance acceptable to such Issuing Bank, or the Issuance of a Letter of
     Credit shall violate any applicable policies of such Issuing Bank;

               (vi)   such Letter of Credit is for the purpose of supporting the
     Issuance of any letter of credit by any other Person;

               (vii)  such Letter of Credit is denominated in a currency other
     than Dollars; or

               (viii) the amount of such requested Letter of Credit together
     with outstanding Letters of Credit and Revolving Loans exceeds the
     Borrowing Base Advance Cap.

          3.02 Issuance, Amendment and Renewal of Letters of Credit.

          (a)  Each Letter of Credit which is Issued hereunder shall be Issued
upon the irrevocable written request of the Borrower pursuant to a Notice of
Borrowing (Letter of Credit) in the applicable form attached hereto as Exhibit A
received by an Issuing Bank (with a copy

                                       36

<PAGE>

sent by the Borrower to the Administrative Agent) by no later than 12:00 p.m.
noon (New York City time) on the proposed date of Issuance. Each such request
for Issuance of a Letter of Credit shall be by electronic transfer or facsimile,
confirmed immediately in an original writing or by electronic transfer, in the
form of an L/C Application, and shall specify in form and detail satisfactory to
such Issuing Bank: (i) the proposed date of Issuance of the Letter of Credit
(which shall be a Business Day); (ii) whether the requested Letter of Credit
would be a commercial documentary letter of credit, Swap-Related Standby Letter
of Credit or other standby letter of credit; (iii) the face amount of the Letter
of Credit; (iv) the expiry date of the Letter of Credit; (v) the name and
address of the beneficiary thereof; (vi) the documents to be presented by the
beneficiary of the Letter of Credit in case of any drawing thereunder; (vii) the
full text of any certificate to be presented by the beneficiary in case of any
drawing thereunder; and (viii) such other matters as such Issuing Bank may
require. Upon receipt of such request, the Administrative Agent will promptly
notify the Banks of the receipt by it of any L/C Application. No such Issuance
will be made if prior to 5:00 p.m. (New York City time) one Business Day
immediately prior to the proposed date of Issuance, a Bank has provided the
Administrative Agent with, and the Administrative Agent has actually received, a
written notice in the form of Exhibit H. If the Administrative Agent does timely
receive a written notice in the form of Exhibit H, the Administrative Agent
shall notify the Borrower, such Issuing Bank and the Banks by 6:00 p.m. (New
York City time) one Business Day immediately prior to the proposed date of
Issuance, and the proposed Letter of Credit will not be Issued, unless one or
more of the Banks have elected to become Approving Banks thereby triggering the
Conversion to Reduced Funding Banks Date.

          (b)  From time to time while a Letter of Credit is outstanding and
prior to the Expiration Date, an Issuing Bank will, upon the written request of
the Borrower received by such Issuing Bank (with a copy sent by the Borrower to
the Administrative Agent) by no later than 12:00 p.m. noon (New York City time)
on the proposed date of amendment, consider the amendment of any Letter of
Credit Issued by it. Each such request for amendment of a Letter of Credit shall
be made by electronic transfer or facsimile, confirmed immediately in an
original writing or by electronic transfer, made in the form of an L/C Amendment
Application and shall specify in form and detail satisfactory to such Issuing
Bank and the Administrative Agent: (i) the Letter of Credit to be amended; (ii)
the proposed date of amendment of the Letter of Credit (which shall be a
Business Day); (iii) the nature of the proposed amendment; and (iv) such other
matters as such Issuing Bank may require. Such Issuing Bank shall be under no
obligation to amend any Letter of Credit. No such amendment will be made if a
Bank has provided the Administrative Agent with, and the Administrative Agent
has actually received, a written notice in the form of Exhibit H by 5:00 p.m.
(New York City time) on the Business Day immediately preceding the proposed date
of amendment. If the Administrative Agent does timely receive a written notice
in the form of Exhibit H, the Administrative Agent shall notify the Borrower,
such Issuing Bank and the Banks by 6:00 p.m. (New York City time) one Business
Day immediately prior to the proposed date of amendment, and the Letter of
Credit will not be amended; provided, however, that one or more Banks may elect
to become the Approving Banks and amend such Letter of Credit, thereby
triggering the Conversion to Reduced Funding Banks Date.

          (c)  The Issuing Banks and the Banks agree that, while a Letter of
Credit is outstanding and prior to the Expiration Date, at the option of the
Borrower and upon the written request of the Borrower received by an Issuing
Bank (with a copy sent to the Administrative

                                       37

<PAGE>

Agent and the other Issuing Banks) by no later than 12:00 p.m. noon (New York
City time) on the proposed date of renewal, the Issuing Bank may consider the
renewal of any Letter of Credit Issued by it. No such renewal will be made if
prior to 5:00 p.m. (New York City time) one Business Day immediately prior to
the proposed date of renewal, a Bank has provided the Administrative Agent with,
and the Administrative Agent has actually received, a written notice in the form
of Exhibit H. If the Administrative Agent does timely receive a written notice
in the form of Exhibit H, the Administrative Agent shall notify the Borrower,
such Issuing Bank and the Banks by 6:00 p.m. (New York City time) one Business
Day immediately prior to the proposed date of renewal, and the Letter of Credit
will not be renewed, unless one or more of the Banks have elected to become
Approving Banks. Each such request for renewal of a Letter of Credit made by the
Borrower shall be made by electronic transfer or facsimile, confirmed
immediately in an original writing or by electronic transfer, in the form of an
L/C Amendment Application, and shall specify in form and detail satisfactory to
such Issuing Bank and the Banks: (i) the Letter of Credit to be renewed; (ii)
the proposed date of renewal of the Letter of Credit (which shall be a Business
Day); (iii) the revised expiry date of the Letter of Credit; and (iv) such other
matters as such Issuing Bank may require. The Issuing Banks shall be under no
obligation to renew any Letter of Credit.

          (d)  If any outstanding Letter of Credit Issued by an Issuing Bank
shall provide that it shall be automatically renewed unless the beneficiary
thereof receives notice from such Issuing Bank that such Letter of Credit shall
not be renewed, and if at the time of renewal such Issuing Bank would be
entitled to authorize the automatic renewal of such Letter of Credit in
accordance with this Subsection 3.02(d) upon the request of the Borrower, then
such Issuing Bank shall nonetheless be permitted to allow such Letter of Credit
to renew, and, provided that no Bank has elected to become a Declining Bank by
5:00 p.m. one Business Day immediately prior to the day that the beneficiary of
such Letter of Credit would receive notice from the Issuing Bank that such
Letter of Credit shall not be renewed, the Borrower and the Banks hereby
authorize such renewal, and, accordingly, such Issuing Bank shall be deemed to
have received an L/C Amendment Application from the Borrower requesting such
renewal. The Issuing Banks shall be under no obligation to allow the automatic
renewal of any Letter of Credit.

          (e)  Any Issuing Bank may, at its election, deliver any notices of
termination or other communications to any Letter of Credit beneficiary or
transferee, and take any other action as necessary or appropriate, at any time
and from time to time, in order to cause the expiry date of such Letter of
Credit to be a date not later than the Expiration Date.

          (f)  This Agreement shall control in the event of any conflict with
any L/C-Related Document (other than any Letter of Credit).

          (g)  Each Issuing Bank will also deliver to the Administrative Agent a
true and complete copy of each Letter of Credit or amendment to or renewal of a
Letter of Credit Issued by it.

                                       38

<PAGE>

          3.03 Risk Participations, Drawings, Reducing Letters of Credit and
Reimbursements.

          (a)  Immediately upon the Issuance of each Letter of Credit by an
Issuing Bank which is Issued prior to the Conversion to Reduced Funding Banks
Date, each Bank shall be deemed to, and hereby irrevocably and unconditionally
agrees to, purchase from such Issuing Bank a participation in such Letter of
Credit and each drawing or Reducing Letter of Credit Borrowing thereunder in an
amount equal to the product of (i) the Pro Rata Share of such Bank, times (ii)
the maximum amount available to be drawn under such Letter of Credit and the
amount of such drawing or Reducing Letter of Credit Borrowing, respectively. All
Letters of Credit Issued after the Conversion to Reduced Funding Banks Date
shall be participated in only by the Approving Banks. For purposes of Section
2.01, each Issuance of a Letter of Credit shall be deemed to utilize the
Uncommitted Line Portion of each Bank by an amount equal to the amount of such
participation.

          (b)  In the event of any request for a drawing under a Letter of
Credit Issued by an Issuing Bank by the beneficiary or transferee thereof, such
Issuing Bank will promptly notify the Borrower. Any notice given by an Issuing
Bank or the Administrative Agent pursuant to this Subsection 3.03(b) may be oral
if immediately confirmed in writing (including by facsimile); provided, however,
that the lack of such an immediate confirmation shall not affect the
conclusiveness or binding effect of such notice. The Borrower shall reimburse an
Issuing Bank prior to 5:00 p.m. (New York City time), on each date that any
amount is paid by such Issuing Bank under any Letter of Credit or to the
beneficiary of a Reducing Letter of Credit in the form of a Reducing L/C
Borrowing (each such date, an "Honor Date"), in an amount equal to the amount so
paid by such Issuing Bank. In the event the Borrower fails to reimburse such
Issuing Bank for the full amount of any drawing under any Letter of Credit or of
any Reducing L/C Borrowing, as the case may be, by 5:00 p.m. (New York City
time) on the Honor Date, such Issuing Bank will promptly notify the
Administrative Agent and the Administrative Agent will promptly notify each Bank
thereof, and the Borrower shall be deemed to have requested that Revolving Loans
be made by the Banks to be disbursed to such Issuing Bank not later than one (1)
Business Day after the Honor Date under such Letter of Credit, subject to the
amount of the unutilized portion of the Borrowing Base Line.

          (c)  In the event of any request for a Reducing L/C Borrowing by the
Borrower in association with any Reducing Letter of Credit, the amount available
for drawing under such Reducing Letter of Credit will be reduced automatically,
and without any further amendment or endorsement to such Reducing Letter of
Credit, by the amount actually paid to such beneficiary, notwithstanding the
fact that the payment creating such Reducing L/C Borrowing is not made pursuant
to a conforming and proper draw under the corresponding Reducing Letter of
Credit; provided, however, that if any Bank has given the Issuing Banks, the
Administrative Agent, the Borrower and each of the other Banks written notice
that such Bank objects to further Reducing L/C Borrowings at least three (3)
Business Days prior to the date the Borrower requests the Reducing L/C
Borrowing, then the relevant Issuing Bank will not make such Reducing L/C
Borrowing unless all Banks consent thereto.

          (d)  Each Bank shall upon any notice pursuant to Subsection 3.03(b)
make available to the Administrative Agent for the account of any Issuing Bank
an amount in Dollars and in immediately available funds equal to its Pro Rata
Share of the amount of the drawing or of the Reducing L/C Borrowing, as the case
may be, whereupon the participating Banks shall (subject to Subsection 3.03(e))
each be deemed to have made a Revolving Loan to the Borrower

                                       39

<PAGE>

in that amount. If any Bank so notified fails to make available to the
Administrative Agent for the account of such Issuing Bank the amount of such
Bank's Pro Rata Share of the amount of the drawing or of the Reducing L/C
Borrowing, as the case may be, by no later than 3:00 p.m. (New York City time)
on the Business Day following the Honor Date, then interest shall accrue on such
Bank's obligation to make such payment, from the Honor Date to the date such
Bank makes such payment, at a rate per annum equal to the Federal Funds Rate in
effect from time to time during such period. The Administrative Agent will
promptly give notice of the occurrence of the Honor Date, but failure of the
Administrative Agent to give any such notice on the Honor Date or in sufficient
time to enable any Bank to effect such payment on such date shall not relieve
such Bank from its obligations under this Section 3.03.

          (e)  With respect to any unreimbursed drawing or Reducing L/C
Borrowing, as the case may be, that is not converted into Revolving Loans in
whole or in part for any reason, the Borrower shall be deemed to have incurred
from the relevant Issuing Bank an L/C Borrowing in the amount of such drawing or
Reducing L/C Borrowing, as the case may be, which L/C Borrowing shall be due and
payable on demand (together with interest) and shall bear interest at a rate per
annum equal to the Default Rate, and each Bank's payment to such Issuing Bank
pursuant to Subsection 3.03(d) shall be deemed payment in respect of its
participation in such L/C Borrowing and shall constitute an L/C Advance from
such Bank in satisfaction of its participation obligation under this Section
3.03.

          (f)  In the event that payment under any Letter of Credit Issued by an
Issuing Bank is drawn or purported to be drawn in a currency other than United
States Dollars, the amount of reimbursement to such Issuing Bank therefor shall
be calculated on the basis of such Issuing Bank's selling rate of exchange in
effect (for the date on which such Issuing Bank pays such draft or reimburses
any of its correspondents which paid such draft) for cable transfers to the
place where and in the currency in which such draft is payable. The Borrower
shall comply with any and all governmental exchange regulations now or hereafter
applicable to any foreign exchange, and shall indemnify and hold the Banks
harmless from any failure of the Borrower so to comply. If for any cause
whatsoever, there exists at the time in question no rate of exchange generally
current at such Issuing Bank for effective cable transfer of the sort above
provided for, the Borrower agrees to pay the Banks on demand an amount in United
States Dollars equivalent to the actual cost of settlement of such Issuing
Bank's obligation to the payor of the draft or acceptance or any holder thereof,
as the case may be, and however and whenever such settlement may be made by such
Issuing Bank.

          (g)  Each Bank's obligation in accordance with this Agreement to make
the Revolving Loans or L/C Advances, as contemplated by this Section 3.03, as a
result of a drawing under a Letter of Credit or Reducing L/C Borrowing, shall be
absolute and unconditional and without recourse to the relevant Issuing Bank and
shall not be affected by any circumstance, including (i) any set-off,
counterclaim, recoupment, defense or other right which such Bank may have
against such Issuing Bank, the Borrower or any other Person for any reason
whatsoever; (ii) the occurrence or continuance of a Default, an Event of Default
or a Material Adverse Effect; or (iii) any other circumstance, happening or
event whatsoever, whether or not similar to any of the foregoing.

                                       40

<PAGE>

          (h)  Notwithstanding the foregoing, each Revolving Loan and L/C
Advance made to fund payment of any Letter of Credit which was Issued or amended
on or after the Conversion to Reduced Funding Banks Date shall be made only by
the Approving Banks.

          3.04 Repayment of Participations.

          (a)  Upon (and only upon) receipt by the Administrative Agent for the
account of an Issuing Bank of immediately available funds from the Borrower (i)
in reimbursement of any payment made by such Issuing Bank under a Letter of
Credit or in connection with a Reducing L/C Borrowing with respect to which any
Bank has paid the Administrative Agent for the account of such Issuing Bank for
such Bank's participation in the Letter of Credit pursuant to Section 3.03 or
(ii) in payment of interest thereon, the Administrative Agent will pay to each
Bank, in the same funds as those received by the Administrative Agent for the
account of such Issuing Bank, the amount of such Bank's Pro Rata Share of such
funds, and such Issuing Bank shall receive the amount of the Pro Rata Share of
such funds of any Bank that did not so pay the Administrative Agent for the
account of such Issuing Bank.

          (b)  If the Administrative Agent or an Issuing Bank is required at any
time to return to the Borrower, or to a trustee, receiver, liquidator,
custodian, or any official in any Insolvency Proceeding, any portion of the
payments made by the Borrower to the Administrative Agent for the account of
such Issuing Bank pursuant to Subsection 3.04(a) in reimbursement of a payment
made under a Letter of Credit or in connection with a Reducing L/C Borrowing or
interest or fee thereon, each Bank shall, on demand of such Issuing Bank,
forthwith return to the Administrative Agent or such Issuing Bank the amount of
its Pro Rata Share of any amounts so returned by the Administrative Agent or
such Issuing Bank plus interest thereon from the date such demand is made to the
date such amounts are returned by such Bank to the Administrative Agent or such
Issuing Bank, at a rate per annum equal to the Federal Funds Rate in effect from
time to time.

          3.05 Role of the Issuing Banks.

          (a)  Each Bank and the Borrower agree that, in paying any drawing
under a Letter of Credit Issued by an Issuing Bank or funding any Reducing L/C
Borrowing, such Issuing Bank shall not have any responsibility to obtain any
document (other than any sight draft or certificates expressly required by such
Letter of Credit, but with respect to Reducing Letter of Credit Borrowings, no
document of any kind need be obtained) or to ascertain or inquire as to the
validity or accuracy of any such document or the authority of the Person
executing or delivering any such document.

          (b)  No Agent-Related Person nor any of the respective correspondents,
participants or assignees of any Issuing Bank shall be liable to any Bank for:
(i) any action taken or omitted in connection herewith at the request or with
the approval of the Banks; (ii) any action taken or omitted in the absence of
gross negligence or willful misconduct; or (iii) the due execution,
effectiveness, validity or enforceability of any L/C-Related Document.

                                       41

<PAGE>

          (c)  The Borrower hereby assumes all risks of the acts or omissions of
any beneficiary or transferee with respect to its use of any Letter of Credit;
provided, however, that this assumption is not intended to, and shall not,
preclude the Borrower pursuing such rights and remedies as it may have against
the beneficiary or transferee at law or under any other agreement. No
Agent-Related Person, nor any of the respective correspondents, participants or
assignees of any Issuing Bank shall be liable or responsible for any of the
matters described in clauses (a) through (g) of Section 3.06; provided, however,
that anything in such clauses or elsewhere herein to the contrary
notwithstanding, that the Borrower may have a claim against an Issuing Bank, and
such Issuing Bank may be liable to the Borrower, to the extent, but only to the
extent, of any direct, as opposed to consequential or exemplary, damages
suffered by the Borrower which the Borrower proves were caused by such Issuing
Bank's willful misconduct or gross negligence or such Issuing Bank's willful
failure to pay under any Letter of Credit after the presentation to it by the
beneficiary of a sight draft and certificate(s) strictly complying with the
terms and conditions of a Letter of Credit. In furtherance and not in limitation
of the foregoing: (i) the Issuing Banks may accept documents that appear on
their face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary; and (ii) the Issuing
Banks shall not be responsible for the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign a Letter of Credit
or the rights or benefits thereunder or proceeds thereof, in whole or in part,
which may prove to be invalid or ineffective for any reason.

          3.06 Obligations Absolute. The Obligations of the Borrower under this
Agreement and any L/C-Related Document to reimburse an Issuing Bank for a
drawing under a Letter of Credit or for a Reducing L/C Borrowing, and to repay
any L/C Borrowing and any drawing under a Letter of Credit or Reducing L/C
Borrowing converted into Revolving Loans, shall be unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement and each such other L/C-Related Document under all circumstances,
including the following:

          (a)  any lack of validity or enforceability of this Agreement or any
L/C-Related Document;

          (b)  any change in the time, manner or place of payment of, or in any
other term of, all or any of the Obligations of the Borrower in respect of any
Letter of Credit or any other amendment or waiver of or any consent to departure
from all or any of the L/C-Related Documents;

          (c)  the existence of any claim, set-off, defense or other right that
the Borrower may have at any time against any beneficiary or any transferee of
any Letter of Credit (or any Person for whom any such beneficiary or any such
transferee may be acting), any Issuing Bank or any other Person, whether in
connection with this Agreement, the transactions contemplated hereby or by the
L/C-Related Documents or any unrelated transaction;

          (d)  any draft, demand, certificate or other document presented under
any Letter of Credit proving to be forged, fraudulent, invalid or insufficient
in any respect or any statement therein being untrue or inaccurate in any
respect; or any loss or delay in the transmission or otherwise of any document
required in order to make a drawing under any Letter of Credit;

                                       42

<PAGE>

          (e)  any payment by any Issuing Bank under any Letter of Credit
against presentation of a draft or certificate that does not strictly comply
with the terms of any Letter of Credit; or any payment made by any Issuing Bank
under any Letter of Credit to any Person purporting to be a trustee in
bankruptcy, debtor-in-possession, assignee for the benefit of creditors,
liquidator, receiver or other representative of or successor to any beneficiary
or any transferee of any Letter of Credit, including any arising in connection
with any Insolvency Proceeding;

          (f)  any exchange, release or non-perfection of any collateral, or any
release or amendment or waiver of or consent to departure from any other
guarantee, for all or any of the Obligations of the Borrower in respect of any
Letter of Credit; or

          (g)  any other circumstance or happening whatsoever, whether or not
similar to any of the foregoing, including any other circumstance that might
otherwise constitute a defense available to, or a discharge of, the Borrower.

          Notwithstanding anything to the contrary in this Section 3.06 or in
the Continuing Agreement for Letters of Credit, the Issuing Banks shall not be
excused from liability to Borrower to the extent of any direct damages (as
opposed to consequential, indirect and punitive damages, claims in respect of
which are hereby waived by Borrower) suffered by Borrower that are caused by any
of the Issuing Bank's gross negligence or willful misconduct when determining
whether drafts and other documents presented under a Letter of Credit comply
with the terms thereof, provided, however, that the parties hereto expressly
agree that:

               (i)   the Issuing Banks may accept documents that appear on their
     face to be in substantial compliance with the terms of a Letter of Credit
     without responsibility for further investigation, regardless of any notice
     or information to the contrary, and may make payment upon presentation of
     documents that appear on their face to be in substantial compliance with
     the terms of such Letter of Credit;

               (ii)  the Issuing Banks shall have the right, in their sole
     discretion, to decline to accept documents and to make such payment if such
     documents are not in strict compliance with the terms of such Letter of
     Credit; and

               (iii) this sentence shall establish the standard of care to be
     exercised by the Banks when determining whether drafts and other documents
     presented under a Letter of Credit comply with the terms thereof (and the
     parties hereto hereby waive, to the extent permitted by applicable law, any
     standard of care inconsistent with the foregoing).

          3.07 Cash Collateral Pledge. Upon the request of the Administrative
Agent, (i) if an Issuing Bank has honored any full or partial drawing request on
any Letter of Credit and such drawing has resulted in an L/C Borrowing
hereunder, or (ii) if, as of the Expiration Date, any Letters of Credit may for
any reason remain outstanding and partially or wholly undrawn, the Borrower
shall immediately Cash Collateralize the L/C Obligations in an amount equal to
such L/C Obligations. Upon the occurrence of the circumstances described in
Section 2.06 requiring the Borrower to Cash Collateralize Letters of Credit,
then, the Borrower shall immediately Cash Collateralize the L/C Obligations in
an amount equal to the applicable excess.

                                       43

<PAGE>

          3.08 Letter of Credit Fees.

          (a)  The Borrower shall pay to each Issuing Bank, for its own account,
such customary fees and charges in connection with the issuance, administration,
payment, negotiation and amendment of each Letter of Credit as the Borrower and
the Issuing Bank shall from time to time agree.

          (b)  The Borrower shall pay to the Administrative Agent for the
account of each of the Banks a letter of credit fee with respect to each of the
Letters of Credit Issued hereunder equal to the greater of (i) $700 or (ii)
1.50% per annum with respect to commercial documentary letters of credit and
standby letters of credit, or 2.00% per annum with respect to Swap-Related
Standby Letters of Credit, together with any related fees such as telecopy,
facsimile and courier fees, such letter of credit fees to be due and payable
monthly in arrears for the preceding month during which Letters of Credit are
outstanding, commencing on the first such monthly date to occur after the
Closing Date.

          3.09 Applicability of Uniform Customs and Practice and ISP98. Unless
otherwise expressly agreed by an Issuing Bank and the Borrower when a Letter of
Credit is Issued (including any such agreement applicable to an Existing Letter
of Credit), the rules of the Uniform Customs and Practice for Documentary
Credits, as most recently published by the International Chamber of Commerce
(the "ICC") at the time of Issuance (including the ICC decision published by the
Commission on Banking Technique and Practice on April 6, 1998 regarding the
European single currency (euro)) shall apply to each standby Letter of Credit
and documentary Letter of Credit. If Borrower desires to use the rules of the
"International Standby Practices 1998" published by the Institute of
International Banking Law & Practice (or such later version thereof as may be in
effect at the time of Issuance) for standby Letters of Credit, Borrower shall
request and note this explicitly on the standby Letter of Credit application.

          3.10 Existing Letters of Credit. Borrower hereby acknowledges and
agrees that the Existing Letters of Credit listed on Schedule 3.10 hereto shall
be deemed to be Letters of Credit Issued under this Agreement for all purposes.

                                   ARTICLE IV

                     TAXES, YIELD PROTECTION AND ILLEGALITY

          4.01 Taxes.

          (a)  Any and all payments by the Borrower to each Bank or either or
both of the Agents under this Agreement and any other Loan Document shall be
made free and clear of, and without deduction or withholding for, any Taxes. In
addition, the Borrower shall pay all Other Taxes.

          (b)  If the Borrower shall be required by law to deduct or withhold
any Taxes, Other Taxes or Further Taxes from or in respect of any sum payable
hereunder to any Bank or the Administrative Agent, then:

                                       44

<PAGE>

               (i)   the sum payable shall be increased as necessary so that
     after making all required deductions and withholdings (including deductions
     and withholdings applicable to additional sums payable under this Section)
     such Bank or the Administrative Agent, as the case may be, receives and
     retains an amount equal to the sum it would have received and retained had
     no such deductions or withholdings been made;

               (ii)  the Borrower shall make such deductions and withholdings;

               (iii) the Borrower shall pay the full amount deducted or withheld
     to the relevant taxing authority or other authority in accordance with
     applicable law; and

               (iv)  the Borrower shall also pay to each Bank or the
     Administrative Agent for the account of such Bank, at the time interest is
     paid, Further Taxes in the amount that Bank specifies as necessary to
     preserve the after-tax yield the Bank would have received if such Taxes,
     Other Taxes or Further Taxes had not been imposed.

          (c)  The Borrower agrees to indemnify and hold harmless each Bank and
the Administrative Agent for the full amount of (i) Taxes, (ii) Other Taxes, and
(iii) Further Taxes in the amount that the Administrative Agent or such Bank
specifies as necessary to preserve the after-tax yield the Administrative Agent
or such Bank would have received if such Taxes, Other Taxes or Further Taxes had
not been imposed, and any liability (including penalties, interest, additions to
tax and expenses) arising therefrom or with respect thereto, whether or not such
Taxes, Other Taxes or Further Taxes were correctly or legally asserted,
provided, however, that the Borrower shall not be required to indemnify or hold
harmless any Bank to the extent (but only to the extent) of such Bank's gross
negligence or willful misconduct. Payment under this indemnification shall be
made within 30 days after the date the Bank or the Administrative Agent makes
written demand therefor.

          (d)  Within 30 days after the date of any payment by the Borrower of
Taxes, Other Taxes or Further Taxes, the Borrower shall furnish the
Administrative Agent the original or a certified copy of a receipt evidencing
payment thereof, or other evidence of payment satisfactory to the Administrative
Agent.

          (e)  If the Borrower is required to pay any amount to the
Administrative Agent or any Bank pursuant to subsection (b) or (c) of this
Section, then such Bank shall use reasonable efforts (consistent with legal and
regulatory restrictions) to change the jurisdiction of its Lending Office so as
to eliminate any such additional payment by the Borrower which may thereafter
accrue, if such change in the judgment of such Bank is not otherwise
disadvantageous to such Bank.

          4.02 Illegality.

          (a)  If any Bank determines that the introduction of any Requirement
of Law, or any change in any Requirement of Law, or in the interpretation or
administration of any Requirement of Law, has made it unlawful, or that any
central bank or other Governmental Authority has asserted that it is unlawful,
for such Bank or its applicable Lending Office to make Offshore Rate Loans,
then, on notice thereof by such Bank to the Borrower through the Administrative
Agent, any obligation of that Bank to make Offshore Rate Loans shall be
suspended until the Bank notifies the Administrative Agent and the Borrower that
the circumstances giving rise to such determination no longer exist.

                                       45

<PAGE>

          (b)  If a Bank determines that it is unlawful to maintain any Offshore
Rate Loan, the Borrower shall, upon receipt of notice of such fact and demand
from such Bank (with a copy to the Administrative Agent), prepay in full,
without premium or penalty, such Offshore Rate Loans of that Bank then
outstanding, together with interest accrued thereon either on the last day of
the Interest Period thereof, if the Bank may lawfully continue to maintain such
Offshore Rate Loans to such day, or immediately, if the Bank may not lawfully
continue to maintain such Offshore Rate Loan. If the Borrower is required to so
prepay any Offshore Rate Loan, then concurrently with such prepayment, the
Borrower shall borrow from the affected Bank, in the amount of such repayment, a
Base Rate Loan.

          4.03 Increased Costs and Reduction of Return.

          (a)  If any Bank determines that, due to either (i) the introduction
of or any change (other than any change by way of imposition of or increase in
reserve requirements included in the calculation of the Offshore Rate or in
respect of the assessment rate payable by any Bank to the FDIC for insuring U.S.
deposits) in or in the interpretation of any law or regulation or (ii) the
compliance by that Bank with any guideline or request from any central bank or
other Governmental Authority (whether or not having the force of law), there
shall be any increase in the cost to such Bank of agreeing to make or making,
funding or maintaining any Offshore Rate Loans or participating in Letters of
Credit, or, in the case of an Issuing Bank, any increase in the cost to such
Issuing Bank of agreeing to issue, issuing or maintaining any Letter of Credit
or of agreeing to make or making, funding or maintaining any unpaid drawing
under any Letter of Credit, then the Borrower shall be liable for, and shall
from time to time, within 30 days of demand (with a copy of such demand to be
sent to the Administrative Agent), pay to the Administrative Agent for the
account of such Bank, additional amounts as are sufficient to compensate such
Bank for such increased costs, provided, however, that the Borrower shall not be
required to pay any such amount to the extent that such amount is reflected in
changes in the Base Rate, the Offshore Rate or other fees or charges of such
Bank.

          (b)  If any Bank shall have determined that (i) the introduction of
any Capital Adequacy Regulation, (ii) any change in any Capital Adequacy
Regulation, (iii) any change in the interpretation or administration of any
Capital Adequacy Regulation by any central bank or other Governmental Authority
charged with the interpretation or administration thereof, or (iv) compliance by
the Bank (or its Lending Office) or any corporation controlling the Bank with
any Capital Adequacy Regulation, affects or would affect the amount of capital
required or expected to be maintained by the Bank or any corporation controlling
the Bank and (taking into consideration such Bank's or such corporation's
policies with respect to capital adequacy and such Bank's desired return on
capital) determines that the amount of such capital is increased as a
consequence of its loans, credits or obligations under this Agreement, then,
within 30 days of demand of such Bank to the Borrower through the Administrative
Agent, the Borrower shall pay to the Bank, from time to time as specified by the
Bank, additional amounts sufficient to compensate the Bank for such increase,
provided, however, that the Borrower shall not be required to pay any such
amount to the extent that such amount is reflected in changes in the Base Rate.

                                       46

<PAGE>

          4.04 Funding Losses. The Borrower shall reimburse each Bank and hold
each Bank harmless from any loss or expense which the Bank may sustain or incur
as a consequence of:

          (a)  the failure of the Borrower to make on a timely basis any payment
of principal of any Offshore Rate Loan;

          (b)  the failure of the Borrower to borrow, continue or convert a Loan
after the Borrower has given (or are deemed to have given) a Notice of Borrowing
or a Notice of Conversion/Continuation;

          (c)  the failure of the Borrower to make any prepayment in accordance
with any notice delivered under Section 2.06;

          (d)  the prepayment (including prepayments made pursuant to Article II
but excluding prepayments made pursuant to Section 4.02) or other payment
(including after acceleration thereof) of an Offshore Rate Loan on a day that is
not the last day of the relevant Interest Period; or

          (e) the automatic conversion under Section 2.04 of any Offshore Rate
Loan to a Base Rate Loan on a day that is not the last day of the relevant
Interest Period except any such automatic conversion resulting from prepayments
required by Section 4.02;

including any such loss or expense arising from the liquidation or reemployment
of funds obtained by it to maintain its Offshore Rate Loans or from fees payable
to terminate the deposits from which such funds were obtained. For purposes of
calculating amounts payable by the Borrower to the Banks under this Section and
under Section 4.03, each Offshore Rate Loan made by a Bank (and each related
reserve, special deposit or similar requirement) shall be conclusively deemed to
have been funded at the LIBOR used in determining the Offshore Rate for such
Offshore Rate Loan by a matching deposit or other borrowing in the interbank
eurodollar market for a comparable amount and for a comparable period, whether
or not such Offshore Rate Loan is in fact so funded.

          4.05 Inability to Determine Rates. If the Administrative Agent and the
Banks determine that for any reason adequate and reasonable means do not exist
for determining the Offshore Rate for any requested Interest Period with respect
to a proposed Offshore Rate Loan, or that the Offshore Rate applicable pursuant
to Subsection 2.08(a) for any requested Interest Period with respect to a
proposed Offshore Rate Loan does not adequately and fairly reflect the cost to
the Banks of funding such Loan, the Administrative Agent will promptly so notify
the Borrower and each Bank. Thereafter, the obligation of the Banks to make or
maintain Offshore Rate Loans, as the case may be, hereunder shall be suspended
until the Administrative Agent upon the instruction of the Banks revokes such
notice in writing. Upon receipt of such notice, the Borrower may revoke any
Notice of Borrowing or Notice of Conversion/Continuation then submitted by it.
If the Borrower does not revoke such Notice, the Banks shall make, convert or
continue the Loans, as proposed by the Borrower, in the amount specified in the
applicable notice submitted by the Borrower, but such Loans shall be made,
converted or continued as Base Rate Loans instead of Offshore Rate Loans.

                                       47

<PAGE>

          4.06 Reserves on Offshore Rate Loans. The Borrower shall pay to each
Bank, as long as such Bank shall be required under regulations of the FRB to
maintain reserves with respect to liabilities or assets consisting of or
including Eurocurrency funds or deposits (currently known as "Eurocurrency
liabilities"), additional costs on the unpaid principal amount of each Offshore
Rate Loan equal to the actual costs of such reserves allocated to such Loan by
the Bank (as determined by the Bank in good faith, which determination shall be
conclusive), payable on each date on which interest is payable on such Loan,
provided, however, that the Borrower shall have received at least 15 days' prior
written notice (with a copy to the Administrative Agent) of such additional
interest from the Bank. If a Bank fails to give notice 15 days prior to the
relevant Interest Payment Date, such additional interest shall be payable 15
days from receipt of such notice.

          4.07 Certificates of Banks. Together with any demand by a Bank for
reimbursement or compensation pursuant to this Article IV, such Bank shall
provide to the Borrower (with a copy to the Administrative Agent) a certificate
signed by an authorized officer of the Bank (a) describing the event giving rise
to such demand, and (b) showing the method and detailed calculations (which may
include any reasonable averaging, attribution or allocation procedures) used by
the Bank to determine the amount demanded by the Bank. In calculating the amount
of costs, expenses, capital requirements or rate of reduction allocable to the
Borrower, such Bank shall use such reasonable methods as such Bank shall
determine. Such calculation and certification shall be conclusive and binding on
the Borrower in the absence of manifest error.

          4.08 Substitution of Banks. Upon the receipt by the Borrower from any
Bank (an "Affected Bank") of a claim for compensation under Section 4.03, the
Borrower may: (a) request the Affected Bank to use its best efforts to obtain a
replacement bank or financial institution satisfactory to the Borrower to
acquire and assume all or a ratable part of all of such Affected Bank's Loans
and Uncommitted Line Portion (a "Replacement Bank"); (b) request one or more of
the other Banks to acquire and assume all or part of such Affected Bank's Loans
and Uncommitted Line Portion; or (c) designate a Replacement Bank. Any such
designation of a Replacement Bank under clause (a) or (c) shall be subject to
the prior written consent of Agents (which consent shall not be unreasonably
withheld).

          4.09 Survival. The agreements and Obligations of the Borrower in this
Article IV shall survive the payment of all other Obligations.

                                    ARTICLE V

                                  CLOSING ITEMS

          5.01 Matters to be Satisfied Upon Execution of Agreement. At
the time the Banks execute this Agreement, unless otherwise waived by the Banks,
the Documentation Agent shall have received all of the following, in form and
substance satisfactory to the Documentation Agent, the Administrative Agent, and
each Bank, and in sufficient copies for each Bank:

          (a)  Loan Documents. This Agreement, the Notes, the Guaranty, a
Reaffirmation Agreement reaffirming the Security Agreements, the Atmos Support
Agreement, the Tri-party

                                       48

<PAGE>

Agreement among Borrower, the Administrative Agent and each Eligible Broker, the
Continuing Agreement for Letters of Credit and certain other documents executed
in connection with the Original Credit Agreement, and each other document or
certificate executed in connection with this Agreement, executed by each party
thereto;

          (b)  Subordination Agreement. A Subordination Agreement, duly executed
and delivered by Atmos Energy Holdings, Inc., in a form substantially similar to
Exhibit G;

          (c)  Payment of Existing Subordinated Indebtedness. Evidence of the
repayment in full by the Borrower of all amounts owed to Atmos Energy Marketing,
LLC for Indebtedness incurred, as subordinated pursuant to that certain
Subordination Agreement dated as of December 1, 2001 among the Borrower, Atmos
Energy Marketing, LLC, and the Administrative Agent.

          (d)  Resolutions; Incumbency. Copies of the resolutions of the members
of the Borrower authorizing the transactions contemplated hereby, certified as
of the Closing Date by the Secretary of the Borrower, and certifying the names
and true signatures of the officers of the Borrower authorized to execute,
deliver and perform, as applicable, this Agreement, and all other Loan Documents
to be delivered by the Borrower hereunder;

          (e)  Organization Documents; Existence; Good Standing. The articles or
certificate of formation and the regulations of the Borrower as in effect on the
Closing Date, all certified by the Secretary of the Borrower as of the Closing
Date, and the articles or certificate of formation and the Bylaws or regulations
of Atmos Energy Corporation and Atmos Energy Holdings, Inc. as in effect on the
Closing Date, all certified by the Secretary of Atmos Energy Corporation and
Guarantors as of the Closing Date together with certificates of existence and
good standing for the Borrower, Atmos Energy Corporation and Guarantors from the
Secretary of State (or similar, applicable Governmental Authority) of its state
of incorporation and each state where the general partner of the Borrower is
qualified to do business as a foreign corporation, certified as of, or
reasonably close to, the Closing Date;

          (f)  Legal Opinions. Legal opinion of counsel to the Borrower and
counsel to Guarantors each addressed to the Administrative Agent and the Banks,
in form and substance acceptable to the Administrative Agent and the Banks;

          (g)  Payment of Fees. Evidence of payment by the Borrower of all
accrued and unpaid fees, costs and expenses to the extent then due and payable
on the Closing Date, together with Attorney Costs of Agents to the extent
invoiced prior to or on the Closing Date, plus such additional amounts of
Attorney Costs as shall constitute the Agents' reasonable estimate of Attorney
Costs incurred or to be incurred by them through the closing proceedings
(provided, however, that such estimate shall not thereafter preclude final
settling of accounts between the Borrower and Agents); including any such costs,
fees and expenses arising under or referenced in Sections 2.09 and 11.04(a) and
all costs of the auditors and consultants retained by the Banks in connection
with the Obligations of the Borrower to Agents;

          (h)  Certificate. A certificate signed by a Responsible Officer of the
Borrower, dated as of the Closing Date, stating to the best of such officer's
knowledge that:

                                       49

<PAGE>

               (i)   The representations and warranties contained in Article VI
     are true and correct on and as of such date, as though made on and as of
     such date; and

               (ii)  No Default or Event of Default exists or would result from
     the Credit Extension.

               (iii) There has occurred since April 30, 2002, no event or
     circumstance that has resulted or could reasonably be expected to result in
     a Material Adverse Effect;

          (i)  Insurance. Evidence of insurance required to be maintained by the
Borrower hereunder;

          (j)  Filings. Evidence that all filings needed to perfect the security
interests granted by the Security Agreements have been completed or due
provision has been made therefor;

          (k)  Service of Process Form. An acknowledgement letter from
Corporation Service Company as contemplated by Subsection 11.16(b); and

          (l)  Other Documents. Such other approvals, opinions, documents or
materials as the Agents or any Bank may request.

                                   ARTICLE VI

                         REPRESENTATIONS AND WARRANTIES

          The Borrower represents and warrants to the Agents and each Bank that:

          6.01 Existence and Power. Each of the Borrower, its Subsidiaries and
Guarantors:

          (a)  is a limited liability company or corporation, as the case may
be, duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization;

          (b)  has the power and authority and all governmental licenses,
authorizations, consents and approvals to own its assets, carry on their
business and to execute, deliver, and perform their respective Obligations under
the Loan Documents;

          (c)  is duly qualified as a foreign limited liability company or
corporation, as the case may be, and is licensed and in good standing under the
laws of each jurisdiction where its ownership, lease or operation of property or
the conduct of its business requires such qualification or license; and to the
best knowledge of such Person, is in compliance with all Requirements of Law.

          6.02 Authorization; No Contravention. The execution, delivery and
performance by the Borrower and Guarantors of each Loan Document to which such
Person is party, have been duly authorized, and do not and will not:

                                       50
<PAGE>
                  (a) contravene the terms of the Organization Documents of such
Person;

                  (b) conflict with or result in any breach or contravention of,
or the creation of any Lien under, any document evidencing any Contractual
Obligation to which such Person is a party or any order, injunction, writ or
decree of any Governmental Authority to which such Person or its property is
subject; or

                  (c) to the best knowledge of the Borrower, violate any
Requirement of Law.

                  6.03 Governmental Authorization. No approval, consent,
exemption, authorization, or other action by, or notice to, or filing with, any
Governmental Authority is necessary or required in connection with the
execution, delivery or performance by, or enforcement against, the Borrower or
any of its Subsidiaries or Guarantors, as applicable, of any Loan Document.

                  6.04 Binding Effect. This Agreement and each other Loan
Document to which the Borrower or any of its Subsidiaries or Guarantors is a
party constitute the legal, valid and binding obligations of such Person to the
extent it is a party thereto, enforceable against such Person in accordance with
their respective terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, or similar laws affecting the enforcement of creditors'
rights generally or by general principles of equity.

                  6.05 Litigation. Except as specifically disclosed in Schedule
6.05, there are no actions, suits or proceedings, pending, or to the knowledge
of the Borrower, or Guarantors threatened at law, in equity, in arbitration or
before any Governmental Authority, against the Borrower, or any of its
Subsidiaries or Guarantors or any of their respective properties which purport
to affect or pertain to this Agreement or any other Loan Document, or any of the
transactions contemplated hereby or thereby; and no injunction, writ, temporary
restraining order or any order of any nature has been issued by any court or
other Governmental Authority purporting to enjoin or restrain the execution,
delivery or performance of this Agreement or any other Loan Document, or
directing that the transactions provided for herein or therein not be
consummated as herein or therein provided.

                 6.06 No Default. No Default or Event of Default exists or would
result from the incurring of any Obligations by the Borrower. As of the Closing
Date, neither the Borrower nor any of its Subsidiaries are in default under or
with respect to any Contractual Obligation in any respect which, individually or
together with all such defaults, could reasonably be expected to have a Material
Adverse Effect.

                  6.07 ERISA Compliance. Except as specifically disclosed in
Schedule 6.07:

         (a) Each Plan is in compliance in all material respects with the
applicable provisions of ERISA, the Code and other federal or state law. Each
Plan which is intended to qualify under Section 401(a) of the Code has received
a favorable determination letter from the IRS and to the best knowledge of the
Borrower, nothing has occurred which would cause the loss of such qualification.
The Borrower and each ERISA Affiliate have made all required contributions to
any Plan subject to Section 412 of the Code, and no application for a funding
waiver or an extension of any amortization period pursuant to Section 412 of the
Code has been made with respect to any Plan.

                                       51
<PAGE>

                  (b) There are no pending or, to the best knowledge of the
Borrower, threatened claims, actions or lawsuits, or action by any Governmental
Authority, with respect to any Plan which have resulted or could reasonably be
expected to result in a Material Adverse Effect. There has been no prohibited
transaction or violation of the fiduciary responsibility rules with respect to
any Plan which has resulted or could reasonably be expected to result in a
Material Adverse Effect.

                  (c) (i) To the Borrower's best knowledge, no ERISA Event has
occurred or is reasonably expected to occur; (ii) no Pension Plan has any
Unfunded Pension Liability; (iii) neither the Borrower nor any ERISA Affiliate
has incurred, or reasonably expects to incur, any liability under Title IV of
ERISA with respect to any Pension Plan (other than premiums due and not
delinquent under Section 4007 of ERISA); (iv) neither the Borrower nor any ERISA
Affiliate has incurred, or reasonably expects to incur, any liability (and no
event has occurred which, with the giving of notice under Section 4219 of ERISA,
would result in such liability) under Section 4201 or 4243 of ERISA with respect
to a Multiemployer Plan; and (v) neither the Borrower nor any ERISA Affiliate
has engaged in a transaction that could be subject to Section 4069 or 4212(c) or
ERISA.

                  6.08 Use of Proceeds; Margin Regulations. The proceeds of the
Loans are to be used solely for the purposes set forth in and permitted by
Section 7.12. Neither the Borrower nor any Subsidiary is generally engaged in
the business of purchasing or selling Margin Stock or extending credit for the
purpose of purchasing or carrying Margin Stock.

                  6.09 Title to Properties. The Borrower and each of its
Subsidiaries have good record and marketable title in fee simple to, or valid
leasehold interests in, all real property necessary or used in the ordinary
conduct of their respective businesses, except for such defects in title as
could not, individually or in the aggregate, have a Material Adverse Effect. As
of the Closing Date, the property of the Borrower and its Subsidiaries is
subject to no Liens, other than Permitted Liens.

                  6.10 Taxes. The Borrower and its Subsidiaries have filed all
Federal and other material tax returns and reports required to be filed, and
have paid all Federal and other material taxes, assessments, fees and other
governmental charges shown thereon to be due and payable, and have paid all
material taxes, assessments, fees and other governmental charges levied or
imposed upon them or their properties, income or assets as due and payable,
except those which are being contested in good faith by appropriate proceedings
and for which adequate reserves have been provided in accordance with GAAP.
There is no proposed tax assessment against the Borrower or any of its
Subsidiaries that would, if made, have a Material Adverse Effect.

                  6.11 Financial Condition.

                  (a) The unaudited balance sheet of the Borrower dated as of
April 30, 2002:

                  (i) fairly presents the financial condition of the Borrower as
          of the date thereof; and

                                       52
<PAGE>

                  (ii) shows all material indebtedness and other liabilities,
         direct or contingent, of the Borrower and as of the date thereof,
         including liabilities for taxes, material commitments and Contingent
         Obligations.

                  (b) Since April 30, 2002, there has been no Material Adverse
Effect.

                  6.12 Environmental Matters. The Borrower conducts in the
ordinary course of business a review of the effect of existing Environmental
Laws and existing Environmental Claims on its business, operations and
properties, and as a result thereof the Borrower has reasonably concluded that,
except as previously specifically disclosed in Schedule 6.12, such Environmental
Laws and Environmental Claims could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

                  6.13 Regulated Entities. Neither the Borrower, nor any Person
controlling the Borrower, or any of its Subsidiaries, is an "Investment Company"
within the meaning of the Investment Company Act of 1940. The Borrower is not
subject to regulation under the Public Utility Holding Company Act of 1935, the
Federal Power Act, the Interstate Commerce Act, any state public utilities code,
or any other Federal or state statute or regulation limiting its ability to
incur Indebtedness.

                  6.14 No Burdensome Restrictions. Neither the Borrower nor any
of its Subsidiaries is a party to or bound by any Contractual Obligation, or
subject to any restriction in any Organization Document, or any Requirement of
Law, which could reasonably be expected to have a Material Adverse Effect.

                  6.15 Copyrights, Patents, Trademarks and Licenses, Etc. To the
Borrower's best knowledge, the Borrower or its Subsidiaries own or are licensed
or otherwise have the right to use all of the patents, trademarks, service
marks, trade names, copyrights, contractual franchises, authorizations and other
rights that are reasonably necessary for the operation of their respective
businesses, without conflict with the rights of any other Person. To the
knowledge of the Borrower, no slogan or other advertising device, product,
process, method, substance, part or other material now employed, or now
contemplated to be employed, by the Borrower or any Subsidiary infringes upon
any rights held by any other Person. Except as specifically disclosed in
Schedule 6.05, no claim or litigation regarding any of the foregoing is pending
or threatened, and no patent, invention, device, application, principle or any
statute, law, rule, regulation, standard or code is pending or, to the knowledge
of the Borrower, proposed.

                  6.16 Subsidiaries. The Borrower has no Subsidiaries other than
those specifically disclosed in part (a) of Schedule 6.16 hereto and have no
equity investments in any other corporation or entity other than those
specifically disclosed in part (b) of Schedule 6.16.

                  6.17 Insurance. Except as specifically disclosed in Schedule
6.17, the properties of the Borrower and its Subsidiaries are insured with
financially sound and reputable insurance companies not Affiliates of the
Borrower, in such amounts, with such deductibles and covering such risks as are
customarily carried by companies engaged in similar businesses and owning
similar properties in localities where the Borrower or such Subsidiary operates.

                                       53
<PAGE>

                 6.18 Full Disclosure. To the Borrower's best knowledge, none of
the representations or warranties made by the Borrower or any of its
Subsidiaries in the Loan Documents as of the date such representations and
warranties are made or deemed made, and none of the statements contained in any
exhibit, report, statement or certificate furnished by or on behalf of the
Borrower or any of its Subsidiaries in connection with the Loan Documents
(including the offering and disclosure materials delivered by or on behalf of
the Borrower to the Banks prior to the Closing Date), contains any untrue
statement of a material fact or omits any material fact required to be stated
therein or necessary to make the statements made therein, in light of the
circumstances under which they are made, not misleading as of the time when made
or delivered.

                                   ARTICLE VII

                              AFFIRMATIVE COVENANTS

                  So long as any Bank shall be continuing to consider making
Revolving Loans or Issuing Letters of Credit hereunder, or any Loan or other
Obligation shall remain unpaid or unsatisfied, or any Letter of Credit shall
remain outstanding:

                  7.01 Financial Statements. The Borrower shall deliver to the
Banks, in form and detail satisfactory to the Banks:

                  (a) as soon as available, but not later than 120 days after
the end of each fiscal year, (i) a copy of the consolidated audited financial
statements to include a balance sheet as at the end of such year for each of (A)
Atmos Energy Corporation, (B) the Atmos Energy Holdings, Inc., and (C) the
Borrower, and (ii) a copy of the consolidating unaudited financial statements to
include a consolidating balance sheet as at the end of such year for Atmos
Energy Holdings, Inc. and the Borrower, and (iii) a copy of the consolidated
audited financial statements of the Borrower and its Subsidiaries, and the
related statements of income or operations, members' capital and cash flows for
such year for such entities, setting forth in each case in comparative form the
figures for the previous fiscal year, and accompanied by the opinion of a
nationally-recognized independent public accounting firm ("Independent Auditor")
which report shall state that such financial statements present fairly the
financial position for the periods indicated in conformity with GAAP applied on
a basis consistent with prior years. Such opinion shall not be qualified or
limited because of a restricted or limited examination by the Independent
Auditor of any material portion of the records of such entities;

                  (b) as soon as available, but not later than 60 days after the
end of each of the first three fiscal quarters of each fiscal year of Atmos
Energy Holdings, Inc. and Atmos Energy Corporation, (i) the unaudited
consolidated financial statements of Atmos Energy Corporation and Atmos Energy
Holdings, Inc., each to include a balance sheet as at the end of such fiscal
quarter, with the related statements of income and or operations, members'
capital and cash flows for such year for such entities, for the period
commencing at the end of the previous fiscal quarter and ending with the end of
such fiscal quarter and for the period commencing at the end of the previous
fiscal year and ending with the end of such fiscal quarter, setting forth in
comparative form, in the case of each such consolidated balance sheet, the
corresponding figures as of the last day of the corresponding period in the
immediately preceding fiscal year and, in the case

                                       54
<PAGE>

of each such consolidated statement of income and operations, members' capital
and cash flows, the corresponding figures for the corresponding period in the
immediately preceding fiscal year, and (ii) the unaudited consolidating
financial statement of Atmos Energy Holdings, Inc.; and

                  (c) as soon as available, but not later than 45 days after the
end of each month, the consolidated financial statements of the Borrower and its
subsidiaries in form acceptable to Banks.

                  7.02 Certificates; Other Information. The Borrower shall
furnish to the Agents and the Banks:

                 (a) concurrently with the delivery of the financial statements
referred to in Subsections 7.01(a), (b), and (c), a Compliance Certificate
executed by a Responsible Officer of the Borrower;

                  (b) a Borrowing Base Collateral Position Report executed by a
Responsible Officer of the Borrower as of 15th day of each month and as of the
last Business Day of each month, in each case delivered within ten (10) days of
such reporting date;

                  (c) on or before the tenth (10th) day of each month, a Net
Position Report as of the first (1st) day of said month, and on or before the
twenty-fifth (25th) day of each month, a Net Position Report as of the fifteenth
(15th) day of such month, in each case certified by a Responsible Officer of the
Borrower;

                  (d) promptly when available, such additional information
regarding the business, financial or corporate affairs of the Borrower or any
Subsidiary as the Agents, at the request of any Bank, may from time to time
reasonably request; and

                  (e) a quarterly report of inventory storage locations at each
quarter end.

                  7.03 Notices. The Borrower shall promptly notify the Agents
and each Bank:

                  (a) of the occurrence of any Default or Event of Default, and
of the occurrence or existence of any event or circumstance that could
reasonably be expected to become a Default or Event of Default;

                  (b) of the occurrence of any event which could reasonably be
expected to cause a material impairment of the Collateral Position;

                  (c) of the occurrence of any event which could reasonably be
expected to cause a Material Adverse Effect, including (i) breach or
non-performance of, or any default under, a material Contractual Obligation of
the Borrower or any Subsidiary; (ii) any material dispute, litigation,
investigation, proceeding or suspension between the Borrower or any Subsidiary
and any Governmental Authority; or (iii) the commencement of, or any material
development in, any litigation or proceeding affecting the Borrower or any
Subsidiary, including pursuant to any applicable Environmental Laws;

                                       55
<PAGE>

                  (d) of the occurrence of any of the following events affecting
the Borrower or any ERISA Affiliate (but in no event more than 10 days after the
Borrower receives notice or becomes aware of such event), and deliver to the
Agents and each Bank a copy of any notice with respect to such event that is
filed with a Governmental Authority and any notice delivered by a Governmental
Authority to the Borrower or any ERISA Affiliate with respect to such event:

                  (i) an ERISA Event;

                  (ii) a material increase in the Unfunded Pension Liability of
         any Pension Plan;

                  (iii) the adoption of, or the commencement of contributions
         to, any Plan subject to Section 412 of the Code by the Borrower or any
         ERISA Affiliate; or

                  (iv) the adoption of any amendment to a Plan subject to
         Section 412 of the Code, if such amendment results in a material
         increase in contributions or Unfunded Pension Liability;

                  (e) of any material change in accounting policies or financial
reporting practices by the Borrower; and

                  (f) of any intended relocation of inventory or any intended
new location of inventory owned by the Borrower, at least ten (10) Business Days
prior to the date such inventory is to be stored at such location.

                  Each notice under this Section shall be accompanied by a
written statement by a Responsible Officer of the Borrower setting forth details
of the occurrence referred to therein, and stating what action the Borrower or
any affected Subsidiary proposes to take with respect thereto and at what time.
Each notice under Subsection 7.03(a) shall describe with particularity any and
all clauses or provisions of this Agreement or other Loan Document that have
been (or reasonably could be expected to be) breached or violated as therein
provided.

                  7.04 Preservation of Corporate Existence, Etc. The Borrower
shall, and shall cause each of its Subsidiaries to:

                  (a) preserve and maintain in full force and effect its
existence and good standing under the laws of its state or jurisdiction of
organization;

                  (b) preserve and maintain in full force and effect all
governmental rights, privileges, qualifications, permits, licenses and
franchises necessary or desirable in the normal conduct of its business;

                  (c) use reasonable efforts, in the ordinary course of
business, to preserve its business organization and goodwill; and

                  (d) preserve or renew all of its registered patents,
trademarks, trade names and service marks, the non-preservation of which could
reasonably be expected to have a Material Adverse Effect.

                                       56
<PAGE>

                  7.05 Maintenance of Property. The Borrower shall maintain, and
shall cause each of its Subsidiaries to maintain, and preserve all its property
which is used or useful in its business in good working order and condition,
ordinary wear and tear excepted and make all necessary repairs thereto and
renewals and replacements thereof except in any case where the failure to do so
could not reasonably be expected to have a Material Adverse Effect.

                  7.06 Insurance. The Borrower shall maintain, and shall cause
each of its Subsidiaries to maintain, with financially sound and reputable
independent insurers, insurance with respect to its properties and business
against loss or damage of the kinds customarily insured against by Persons
engaged in the same or similar business, of such types and in such amounts as
are customarily carried under similar circumstances by such other Persons,
including, without limitation, marine cargo insurance, if appropriate.

                  7.07 Payment of Obligations. The Borrower shall, and shall
cause each of its Subsidiaries to, pay and discharge as the same shall become
due and payable, all their respective obligations and liabilities, including:

                  (a) all tax liabilities, assessments and governmental charges
or levies upon it or its properties or assets, unless the same are being
contested in good faith by appropriate proceedings and adequate reserves in
accordance with GAAP are being maintained by the Borrower or such Subsidiary;

                  (b) all lawful claims which, if unpaid, would by law become a
Lien upon its property unless the same are being contested in good faith by
appropriate proceedings and adequate reserves in accordance with GAAP are being
maintained by the Borrower or Subsidiary, and provided that at such time the
claim becomes a Lien (other than a lis pendens notice), it shall be promptly
paid; and

                  (c) all indebtedness, as and when due and payable, but subject
to any subordination provisions contained in any instrument or agreement
evidencing such Indebtedness.

                 7.08 Compliance with Laws. The Borrower shall comply, and shall
cause each of its Subsidiaries to comply, with all Requirements of Law of any
Governmental Authority having jurisdiction over it or its business (including
the Federal Fair Labor Standards Act).

                 7.09 Compliance with ERISA. The Borrower shall, and shall cause
each of its ERISA Affiliates to: (a) maintain each Plan in compliance with the
applicable provisions of ERISA, the Code and other federal or state law; (b)
cause each Plan which is qualified under Section 401(a) of the Code to maintain
such qualification; and (c) make all required contributions to any Plan subject
to Section 412 of the Code.

                 7.10 Inspection of Property and Books and Records. The Borrower
shall maintain and shall cause each of its Subsidiaries to maintain proper books
of record and account, in which full, true and correct entries in conformity
with GAAP consistently applied shall be made of all financial transactions and
matters involving the assets and business of the Borrower and such Subsidiary.
The Borrower shall permit, and shall cause each of its Subsidiaries to permit
representatives and independent contractors of either of the Agents or any Bank
to visit

                                       57
<PAGE>

and inspect any of their respective properties, to examine their respective
corporate, financial and operating records, and make copies thereof or abstracts
therefrom, and to discuss their respective affairs, finances and accounts with
their respective directors, officers, and independent public accountants, all at
the expense of the Agent or Bank causing such inspection and at such reasonable
times during normal business hours and as often as may be reasonably desired,
upon reasonable advance notice to the Borrower; provided, however, that when an
Event of Default exists either of the Agents or any Bank may do any of the
foregoing at the expense of the Borrower at any time during normal business
hours and without advance notice.

                  7.11 Environmental Laws. The Borrower shall, and shall cause
each of its Subsidiaries to, conduct its operations and keep and maintain its
property in compliance in all material respects with all Environmental Laws.

                  7.12 Use of Proceeds. The Borrower shall use the proceeds of
the Loans for the uses described in this Agreement and not in contravention of
any Requirement of Law or of any Loan Document restrictions on use of loan
proceeds.

                  The Borrower shall not use the proceeds of the Loan or any
Letter of Credit to acquire, directly or indirectly, any Margin Stock.

                  7.13 Collateral Position Audit. At such times as Agents deem
advisable, the Borrower will allow Agents or an entity satisfactory to Agents to
conduct a thorough examination of the Collateral, and the Borrower will fully
cooperate in such examination. The Borrower will pay the costs and expenses of
one such examination each calendar year.

                  7.14 Lock Box. The Borrower shall (i) maintain a lock box with
Bank of America, N.A. (the "Lock Box") and shall notify in writing and otherwise
take such reasonable steps to ensure that all Account Debtors under any of its
Accounts forward payment in the form of cash, checks, drafts or other similar
items of payment directly to such Lock Box and shall provide Banks with
reasonable evidence of such notification, and (ii) deposit and cause its
Subsidiaries to deposit or cause to be deposited all payments under such
Accounts to the Lock Box. In the event that any Account Debtor does make any
payment directly to the Borrower, the Borrower shall promptly deposit such
amounts into the Lock Box. The Borrower and each Bank acknowledge and agree that
prior to the Activation Period, the Borrower may operate and transact business
through the Lock Box account in its normal fashion, including making withdrawals
from the Lock Box account. The Borrower and each Bank further acknowledge and
agree that during the Activation Period, Bank of America, N.A. shall transfer
all collected and available balances in the Lock Box to the Bank Blocked Account
pursuant to the Three Party Agreement. The Borrower and each Bank acknowledge
and agree that the Bank Blocked Account is owned by the Collateral Agent for the
benefit of the Agents, the Issuing Banks and the Banks and the Lock Box is under
the dominion and control of the Collateral Agent. The Collateral Agent at any
time may apply amounts contained in the Bank Blocked Account toward satisfaction
of the Obligations.

                                       58
<PAGE>

                  7.15 Financial Covenants. The Borrower will, at all times,
observe the following financial covenants:

                  (a) minimum Net Working Capital as follows:

                  (i) $20,000,000.00 at such time as the elected Borrowing Base
Sub-Cap is $100,000,000.00 or less;

                  (ii) $25,000,000.00 at such time as the elected Borrowing Base
Sub-Cap is $125,000,000.00 or less but greater than $100,000,000.00;

                  (iii) $30,000,000.00 at such time as the elected Borrowing
Base Sup-Cap is $150,000,000.00 or less but greater than $125,000,000.00;

                  (iv) $35,000,000.00 at such time as the elected Borrowing Base
Sub-Cap is $175,000,000.00 or less but greater than $150,000,000.00;

                  (v) $40,000,000.00 at such time as the elected Borrowing Base
Sub-Cap is $200,000,000.00 or less but greater than $175,000,000.00;

                  (vi) $45,000,000.00 at such time as the elected Borrowing Base
Sub-Cap is $225,000,000.00 or less but greater than $200,000,000.00; and

                  (vii) $50,000,000.00 at such time as the elected Borrowing
Base Sub-Cap is $250,000,000.00 or less but greater than $225,000,000.00.

                  (b) minimum Tangible Net Worth as follows:

                  (i) $21,000,000.00 at such time as the elected Borrowing Base
Sub-Cap is $100,000,000.00 or less;

                  (ii) $26,000,000.00 at such time as the elected Borrowing Base
Sub-Cap is $125,000,000.00 or less but greater than $100,000,000.00;

                  (iii) $31,000,000.00 at such time as the elected Borrowing
Base Sub-Cap is $150,000,000.00 or less but greater than $125,000,000.00;

                  (iv) $36,000,000.00 at such time as the elected Borrowing Base
Sub-Cap is $175,000,000.00 or less but greater than $150,000,000.00;

                  (v) $41,000,000.00 at such time as the elected Borrowing Base
Sub-Cap is $200,000,000.00 or less but greater than $175,000,000.00;

                  (vi) $46,000,000.00 at such time as the elected Borrowing Base
Sub-Cap is $225,000,000.00 or less but greater than $200,000,000.00; and

                  (vii) $51,000,000.00 at such time as the elected Borrowing
Base Sub-Cap is $250,000,000.00 or less but greater than  $225,000,000.00.

                  (c) at all times, a ratio of Total Liabilities (excluding the
amount of Subordinated Debt that is included in the calculation of Tangible Net
Worth) to Tangible Net Worth not to exceed 5.0:1.0.

                                       59
<PAGE>

                                  ARTICLE VIII

                               NEGATIVE COVENANTS

                  So long as any Loan or other Obligation shall remain unpaid or
unsatisfied, or any Letter of Credit shall remain outstanding, unless the Banks
waive compliance in writing:

                 8.01 Limitation on Liens. The Borrower shall not, and shall not
suffer or permit any Subsidiary to, directly or indirectly, make, create, incur,
assume or suffer to exist any Lien upon or with respect to any part of its
property, whether now owned or hereafter acquired, other than the following
("Permitted Liens"):

                  (a) any Lien existing on property of the Borrower or any of
its Subsidiaries on the Closing Date and set forth in Schedule 8.01 securing
Indebtedness outstanding on such date;

                  (b) any Lien created under any Loan Document;

                  (c) Liens for taxes, fees, assessments or other governmental
charges which are not delinquent or remain payable without penalty, or to the
extent that non-payment thereof is permitted by Section 7.07, provided, however,
that no notice of lien has been filed or recorded under the Code;

                  (d) carriers', warehousemen's, mechanics', landlords',
materialmen's, repairmen's or other similar Liens arising in the ordinary course
of business which are not delinquent or remain payable without penalty and, with
respect to any such warehousemen's or landlord's lien, such liens only secure
accrued rental charges;

                  (e) Liens (other than any Lien imposed by ERISA) consisting of
pledges or deposits required in the ordinary course of business in connection
with workers' compensation, unemployment insurance and other social security
legislation;

                  (f) Liens on the property of the Borrower or its Subsidiaries
securing (i) the non-delinquent performance of bids, trade contracts (other than
for borrowed money), leases, statutory obligations, (ii) contingent obligations
on surety and appeal bonds, and (iii) other non-delinquent obligations of a like
nature; in each case, incurred in the ordinary course of business; provided,
however, that all such Liens in the aggregate would not (even if enforced) cause
a Material Adverse Effect;

                  (g) Liens consisting of judgment or judicial attachment liens;
provided, however, that the enforcement of such Liens is effectively stayed and
all such unstayed liens in the aggregate at any time outstanding for the
Borrower and its Subsidiaries do not exceed $250,000.00;

                  (h) easements, rights-of-way, restrictions and other similar
encumbrances incurred in the ordinary course of business which, in the
aggregate, are not substantial in amount, and which do not in any case
materially interfere with the ordinary conduct of the business of the Borrower
and its Subsidiaries;

                                       60
<PAGE>

                  (i) purchase money security interests (other than capital
leases) on any property acquired or held by the Borrower or its Subsidiaries in
the ordinary course of business, securing Indebtedness incurred or assumed for
the purpose of financing all or any part of the cost of acquiring such property;
provided, however, that (i) any such Lien attaches to such property concurrently
with or within 20 days after the acquisition thereof, (ii) such Lien attaches
solely to the property so acquired in such transaction, (iii) the principal
amount of the debt secured thereby does not exceed 100% of the cost of such
property, and (iv) the principal amount of the Indebtedness secured by any and
all such purchase money security interests shall not at any time exceed
$250,000.00;

                  (j) Liens of interest owners, including without limitation,
Liens arising as would be defined in Texas Bus. & Com. Code Section 9.343,
comparable laws of the states of Oklahoma, Kansas, Wyoming or New Mexico, or
other comparable law; and

                  (k) Liens not permitted by clause 8.01 (a), (b), (c), (d),
(e), (f), (g), (h) or (i), in an aggregate amount not to exceed $250,000.

                  (l) Liens securing contractual obligations permitted by
section 8.06.

                  8.02 Consolidations and Mergers. The Borrower shall not, nor
shall it suffer or permit any of its Subsidiaries to, merge, consolidate with or
into, or convey, transfer, lease or otherwise dispose of (whether in one
transaction or in a series of transactions) all or substantially all of its
assets (whether now owned or hereafter acquired) to or in favor of any Person.

                  8.03 Limitation on Indebtedness. The Borrower shall not suffer
or permit any of its Subsidiaries to, create, incur, assume, suffer to exist, or
otherwise become or remain directly or indirectly liable with respect to, any
Indebtedness, except:

                  (a) Indebtedness incurred pursuant to or in accordance with,
this Agreement;

                  (b) Indebtedness consisting of trade payables in the ordinary
course of business;

                  (c) Indebtedness existing on the Closing Date, and described
on Schedule 8.01;

                  (d) Indebtedness in respect of purchase money security
interests permitted by Section 8.01 hereof;

                  (e) Indebtedness in respect of Contingent Obligations
permitted by Section 8.06 hereof; and

                  (f) Subordinated Debt.

                  8.04 Transactions with Affiliates. The Borrower shall not, and
shall not suffer or permit any of its Subsidiaries to, enter into any
transaction with any Affiliate of the Borrower, except upon fair and reasonable
terms no less favorable to the Borrower or such Subsidiary than would obtain in
a comparable arm's-length transaction with a Person not an Affiliate of the
Borrower or such Subsidiary. Without limiting the foregoing, all sales of
Product by Borrower to, and purchases of Product by Borrower from, any Affiliate
of Borrower shall be at the market price on the day of sale, except for
transactions made in connection with Borrower's Index Sales Strategies which
strategies shall have been approved by the Banks prior to any such transactions.

                                       61
<PAGE>

                  8.05 Use of Proceeds. The Borrower shall not suffer or permit
any of its Subsidiaries to, use any portion of the Loan proceeds or any Letter
of Credit, directly or indirectly, (a) to purchase or carry Margin Stock, (b) to
repay or otherwise refinance indebtedness of the Borrower or others incurred to
purchase or carry Margin Stock, (c) to extend credit for the purpose of
purchasing or carrying any Margin Stock, or (d) to acquire any security in any
transaction that is subject to Section 13 or 14 of the Exchange Act.

                  8.06 Contingent Obligations. The Borrower shall not suffer or
permit any of its Subsidiaries to, create, incur, assume or suffer to exist any
Contingent Obligations except:

                  (a) endorsements for collection or deposit in the ordinary
course of business;

                  (b) swap contracts entered into in the ordinary course of
business as bona fide hedging transactions; and

                  (c) Contingent Obligations of the Borrower and its
Subsidiaries existing as of the Closing Date and described on Schedule 8.07.

                  8.07 Restricted Payments. The Borrower shall not suffer or
permit any of its Subsidiaries to, directly or indirectly declare or make, any
distribution of income or capital on account of any membership interest of the
Borrower now or hereafter in existence ("Distributions"), or set aside or
otherwise deposit or invest any sums for such purpose, except Distributions to
its members, so long as no Default or Event of Default has occurred or would
result therefrom.

                 8.08 ERISA. The Borrower shall not, nor suffer or permit any of
its ERISA Affiliates to: (a) engage in a prohibited transaction or violation of
the fiduciary responsibility rules with respect to any Plan; or (b) engage in a
transaction that could be subject to Section 4069 or 4212(c) of ERISA.

                  8.09 Change in Business. The Borrower shall not, nor suffer or
permit any of its Subsidiaries to, engage in any line of business different from
the line of business carried on by the Borrower and its Subsidiaries on the date
hereof.

                  8.10 Accounting Changes. The Borrower shall not, nor suffer or
permit any of its Subsidiaries to, make any significant change in accounting
treatment or reporting practices, except as required by GAAP, or change the
fiscal year of the Borrower or of any Subsidiary.

                  8.11 Net Position. At no time will the Borrower allow its Net
Position to exceed 5,000,000 MMBTUS of natural gas. At no time will the Borrower
allow the sum of the following: (a) 25% of the Borrower's Net Position Value,
plus (b) Borrower's Transportation and Storage Exposure, plus (c) Borrower's
Below Index Sales Exposure, to exceed 33% of Borrower's Net Working Capital at
such time, where,

                  "Net Position Value" means Borrower's Net Position valued at
$3.00/MMBTU.

                                       62
<PAGE>

                  "Below Index Sales Exposure" means (the maximum volume of gas
                  required to be sold at below index prices multiplied by the
                  discount from index), minus (the net positive value of all
                  hedge contracts related to the utilization of the related
                  storage & transportation assets).

                  "Transportation and Storage Exposure" means the aggregate
                  contractual cost of transportation & storage contracts for a
                  term of in excess of 3 months.

                  8.12 Loans and Investments. The Borrower shall not purchase or
acquire, or suffer or permit any Subsidiary to purchase or acquire, or make any
commitment therefor, any capital stock, equity interest, or any obligations or
other securities of, or any interest in, any Person, or make or commit to make
any Acquisitions, or make or commit to make any advance, loan, extension of
credit or capital contribution to or any other investment in, any Person
including any Affiliate of Borrower, except for:

                  (a) investments in cash equivalents and Marketable Securities;
and

                  (b) extensions of credit in the nature of accounts receivable
or notes receivable arising from the sale or lease of goods or services in the
ordinary course of business.

                  8.13 Change of Management. Borrower shall not permit any
Change of Management. For purposes of this Section 8.13, "Change of Management"
shall mean that J. D. Woodward has ceased to act in his capacity as chief
executive officer of the Borrower.

                  8.14 Deposit Accounts. Borrower shall not maintain any deposit
accounts with a bank or financial institution other than the Bank Blocked
Account with the Collateral Agent, except that the Borrower may maintain the
Lock Box with Bank of America, N.A. which shall be pledged to the Administrative
Agent, for the benefit of the Agents, the Issuing Banks and the Banks pursuant
to the Three Party Agreement.

                  8.15 Risk Management Policy. The Borrower will not materially
change its risk management policies without the prior written consent of the
Administrative Agent and the Banks. Borrower agrees that upon request by Agents,
from time to time, the Borrower and the Banks will review and evaluate
Borrower's risk management policies.

                 8.16 Swap-Related Standby Letters of Credit. The Borrower shall
not permit outstanding Swap-Related Standby Letters of Credit plus any net
Mark-to-Market values of amounts owed to Swap Banks by the Borrower under Swap
Contracts to exceed $50,000,000.

                                       63
<PAGE>

                                   ARTICLE IX

                                EVENTS OF DEFAULT

                  9.01 Event of Default. Any of the following shall constitute
an "Event of Default":

                  (a) Non-Payment. The Borrower fails to pay any amount payable
hereunder or under any other Loan Document when due including without limitation
such amounts as may come due as a result of a "demand" made by the Banks under
the Notes; or

                  (b) Representation or Warranty. Any representation or warranty
made or deemed made herein, in any other Loan Document, or which is contained in
any certificate, document or financial or other statement by the Borrower, or
any Responsible Officer furnished at any time under this Agreement, or in or
under any other Loan Document, is incorrect or incomplete in any respect on or
as of the date made or deemed made; or

                  (c) Covenant Defaults. The Borrower fails to perform or
observe any other term, covenant or agreement contained in any of the Loan
Documents; or

                  (d) Cross-Default. The Borrower or any Subsidiary of the
Borrower (i) fails to make any payment in respect of any Indebtedness or
Contingent Obligation having an aggregate principal amount (including undrawn
committed or available amounts and including amounts owing to all creditors
under any combined or syndicated credit arrangement) of more than $250,000.00
when due (whether by scheduled maturity, required prepayment, acceleration,
demand, or otherwise); or (ii) fails to perform or observe any other material
condition or covenant, or any other event shall occur or condition exist, under
any agreement or instrument relating to any such Indebtedness or Contingent
Obligation, if, after expiration of any grace or cure period therein provided,
the effect of such failure, event or condition is to cause, or to permit the
holder or holders of such Indebtedness or beneficiary or beneficiaries of such
Indebtedness (or a trustee or agent on behalf of such holder or holders or
beneficiary or beneficiaries) to cause such Indebtedness to be declared to be
due and payable prior to its stated maturity, or such Contingent Obligation to
become payable or cash collateral in respect thereof to be demanded, except to
the extent that any such amounts are in bona fide dispute in an aggregate amount
not exceeding $250,000 for which adequate reserves are maintained in accordance
with GAAP; or

                  (e) Insolvency; Voluntary Proceedings. The Borrower or any
Subsidiary of the Borrower (i) ceases or fails to be solvent, or generally fails
to pay, or admits in writing its inability to pay, its debts as they become due,
whether at stated maturity or otherwise; (ii) commences any Insolvency
Proceeding with respect to itself; or (iii) takes any action to effectuate or
authorize any of the foregoing; or

                  (f) Involuntary Proceedings. (i) Any involuntary Insolvency
Proceeding is commenced or filed against the Borrower or any Subsidiary of the
Borrower, or any writ, judgment, warrant of attachment, execution or similar
process, is issued or levied against a substantial part of the Borrower or any
Subsidiary or any of any of the Borrower's properties, and any such proceeding
or petition shall not be dismissed, or such writ, judgment, warrant of
attachment, execution or similar process shall not be released, vacated or fully
bonded within 60 days after commencement, filing or levy; (ii) the Borrower or
any Subsidiary of the Borrower admits the material allegations of a petition
against it in any Insolvency Proceeding, or an order for relief (or similar
order under non-U.S. law) is ordered in any Insolvency Proceeding; or (iii) the
Borrower or any Subsidiary of the Borrower acquiesces in the appointment of a
receiver,

                                       64
<PAGE>

trustee, custodian, conservator, liquidator, mortgagee in possession (or agent
therefor), or other similar Person for itself or a substantial portion of its
property or business; or

                  (g) ERISA. (i) An ERISA Event shall occur with respect to a
Pension Plan or Multiemployer Plan which has resulted or could reasonably be
expected to result in liability of the Borrower under Title IV of ERISA to the
Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of
$250,000.00; (ii) the aggregate amount of Unfunded Pension Liability among all
Pension Plans at any time exceeds $250,000.00; or (iii) the Borrower or any
ERISA Affiliate shall fail to pay when due, any installment payment with respect
to its withdrawal liability under Section 4201 of ERISA under a Multiemployer
Plan in an aggregate amount in excess of $250,000.00; or

                  (h) Monetary Judgments. One or more non-interlocutory
judgments, non-interlocutory orders, decrees or arbitration awards is entered
against the Borrower or any Subsidiary of the Borrower, which such judgment,
order, decree or award is not effectively stayed pending appeal thereof,
involving in the aggregate a liability as to any single or related series of
transactions, incidents or conditions, to pay an amount of $250,000.00 or more;
or

                  (i) Non-Monetary Judgments. Any non-monetary judgment, order
or decree is entered against the Borrower or any Subsidiary of the Borrower
which does or would reasonably be expected to have a Material Adverse Effect; or

                  (j) Change of Control. There occurs any Change of Control not
previously approved by the Banks; or

                  (k) Adverse Change. There occurs a Material Adverse Effect; or

                  (l) Guarantor Defaults. Any Guarantor fails in any material
respect to perform or observe any term, covenant or agreement in the Guaranty
executed by such Guarantor; or such Guaranty is for any reason (other than
satisfaction in full of all Obligations and the termination of the Loans)
partially (including with respect to future advances) or wholly revoked or
invalidated, or otherwise ceases to be in full force and effect, or such
Guarantor or any other Person contests in any manner the validity or
enforceability thereof or denies that it has any further liability or obligation
thereunder; or any event described at subsections (e) or (f) of this Section
occurs with respect to such Guarantor.

IN NO EVENT SHALL ANY PROVISION OF THIS AGREEMENT PROVIDING FOR SPECIFIC EVENTS
OF DEFAULT BE CONSTRUED TO WAIVE, LIMIT OR OTHERWISE MODIFY THE DEMAND NATURE OF
THE LOANS WHICH MAY BE MADE PURSUANT TO THIS AGREEMENT, AND THE BORROWER HEREBY
ACKNOWLEDGES AND AGREES THAT THE BANKS' RIGHT TO DEMAND PAYMENT AT ANY TIME FOR
ANY REASON OR FOR NO REASON IS ABSOLUTE AND UNCONDITIONAL.

                                       65
<PAGE>

                  9.02 Remedies. If any Event of Default occurs, the
Administrative Agent may and shall, at the request of the Required Banks:

                  (a) declare an amount equal to the maximum aggregate amount
that is or at any time thereafter may become available for drawing by the
beneficiary under any outstanding Letters of Credit (whether or not any
beneficiary shall have presented, or shall be entitled at such time to present,
the drafts or other documents required to draw under such Letters of Credit) to
be immediately due and payable, and declare the unpaid principal amount of all
outstanding Loans, all interest accrued and unpaid thereon, and all other
amounts owing or payable hereunder or under any other Loan Document to be
immediately due and payable, without presentment, demand, protest or other
notice of any kind, all of which are hereby expressly waived by the Borrower;
and

                  (b) exercise on behalf of itself and the Banks all rights and
remedies available to it and the Banks under the Loan Documents or applicable
law including, without limitation, seeking to lift the stay in effect under the
Proceeding; provided, however, that upon the occurrence of any event specified
in subsection (e) or (f) of Section 9.01, the obligation of each Bank to make
Loans and any obligation of an Issuing Bank to Issue Letters of Credit shall
automatically terminate and an amount equal to the maximum aggregate amount that
is or at any time thereafter may become available for drawing by the beneficiary
under any outstanding Letters of Credit (whether or not any beneficiary shall
have presented, or shall be entitled at such time to present, the drafts or
other documents required to draw under such Letters of Credit) together with the
unpaid principal amount of all outstanding Loans and all interest and other
amounts as aforesaid shall automatically become due and payable without further
act of the Administrative Agent, any Issuing Bank or any Bank.

                  9.03 Rights Not Exclusive. The rights provided for in this
Agreement and the other Loan Documents are cumulative and are not exclusive of
any other rights, powers, privileges or remedies provided by law or in equity,
or under any other instrument, document or agreement now existing or hereafter
arising.

                                    ARTICLE X

                                     AGENTS

                  10.01    Appointment and Authorization.

                  (a) Each Bank hereby irrevocably (subject to Section 10.09)
appoints, designates and authorizes the Agents to take such action on its behalf
under the provisions of this Agreement and each other Loan Document and to
exercise such powers and perform such duties as are expressly delegated to it by
the terms of this Agreement or any other Loan Document, together with such
powers as are reasonably incidental thereto. Notwithstanding any provision to
the contrary contained elsewhere in this Agreement or in any other Loan
Document, the Agents shall not have any duties or responsibilities, except those
expressly set forth herein, nor shall the Agents have or be deemed to have any
fiduciary relationship with any Bank, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the Agents.
Without limiting the generality of the foregoing sentence, the use of the term
"agent" in this Agreement with reference to the Agents is not intended to
connote any fiduciary or other implied (or express) obligations arising under
agency doctrine of any applicable law. Instead, such term is

                                       66
<PAGE>

used merely as a matter of market custom and is intended to create or reflect
only an administrative relationship between independent contracting parties.

                  (b) Each Issuing Bank shall act on behalf of the Banks with
respect to any Letters of Credit Issued by it and the documents associated
therewith until such time and except for so long as the Administrative Agent may
agree at the request of the Banks to act for such Issuing Bank with respect
thereto; provided, however, that such Issuing Bank shall have all of the
benefits and immunities (i) provided to the Administrative Agent in this Article
X with respect to any acts taken or omissions suffered by such Issuing Bank in
connection with Letters of Credit Issued by it or proposed to be Issued by it
and the application and agreements for letters of credit pertaining to the
Letters of Credit as fully as if the term "Administrative Agent," as used in
this Article X, included such Issuing Bank with respect to such acts or
omissions, and (ii) as additionally provided in this Agreement with respect to
such Issuing Banks. Prior to the issuance of a Letter of Credit by an Issuing
Bank other than the Administrative Agent, such Issuing Bank shall provide
written notice to the Administrative Agent of the dollar amount, the date of
such issuance and the expiry date of such Letter of Credit. Such issuance shall
be subject to the consent of the Administrative Agent. Such consent shall not
result in the imposition of any liability upon the Administrative Agent.

                  10.02 Delegation of Duties. Each of the Agents may execute any
of its duties under this Agreement or any other Loan Document by or through
agents, employees or attorneys-in-fact and shall be entitled to advice of
counsel concerning all matters pertaining to such duties. Neither of the Agents
shall not be responsible for the negligence or misconduct of any agent or
attorney-in-fact that it selects with reasonable care.

                  10.03 Liability of Agents. None of Agent-Related Persons shall
(a) be liable for any action taken or omitted to be taken by any of them under
or in connection with this Agreement or any other Loan Document or the
transactions contemplated hereby (except for its own gross negligence or willful
misconduct), or (b) be responsible in any manner to any of the Banks for any
recital, statement, representation or warranty made by the Borrower or any
Subsidiary or Affiliate of the Borrower, or any officer thereof, contained in
this Agreement or in any other Loan Document, or in any certificate, report,
statement or other document referred to or provided for in, or received by
Agents under or in connection with, this Agreement or any other Loan Document,
or for the value of or title to any Collateral, or the validity, effectiveness,
genuineness, enforceability or sufficiency of this Agreement or any other Loan
Document, or for any failure of the Borrower or any other party to any Loan
Document to perform its obligations hereunder or thereunder. No Agent-Related
Person shall be under any obligation to any Bank to ascertain or to inquire as
to the observance or performance of any of the agreements contained in, or
conditions of, this Agreement or any other Loan Document, or to inspect the
properties, books or records of the Borrower or any of the Borrower's
Subsidiaries or Affiliates.

                  10.04    Reliance by Agents.

                  (a) Each of the Agents shall be entitled to rely, and shall be
fully protected in relying, upon any writing, resolution, notice, consent,
certificate, affidavit, letter, telegram, facsimile, telex or telephone message,
statement or other document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person

                                       67
<PAGE>

or Persons, and upon advice and statements of legal counsel (including counsel
to the Borrower), independent accountants and other experts selected by Agents.
Each of the Agents shall be fully justified in failing or refusing to take any
action under this Agreement or any other Loan Document unless it shall first
receive such advice or concurrence of all of the Banks or the Required Banks, as
applicable, as it deems appropriate and, if it so requests, it shall first be
indemnified to its satisfaction by the Banks against any and all liability and
expense which may be incurred by it by reason of taking or continuing to take
any such action. Each of the Agents shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement or any other Loan
Document in accordance with a request or consent of all of the Banks or the
Required Banks, as applicable, and such request and any action taken or failure
to act pursuant thereto shall be binding upon the Banks.

                  (b) For purposes of determining compliance with the conditions
specified in Section 5.01, each Bank that has executed this Agreement shall be
deemed to have consented to, approved or accepted or to be satisfied with, each
document or other matter either sent by Agents to such Bank for consent,
approval, acceptance or satisfaction, or required thereunder to be consented to
or approved by or acceptable or satisfactory to the Bank.

                  10.05 Notice of Default. Agents shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default, except
with respect to defaults in the payment of principal, interest and fees required
to be paid to the Administrative Agent for the account of the Banks, unless the
Administrative Agent shall have received written notice from a Bank or the
Borrower referring to this Agreement, describing such Default or Event of
Default and stating that such notice is a "notice of default." The
Administrative Agent will notify the BNP Paribas, as an agent, and the Banks of
its receipt of any such notice. The Agents shall take such action with respect
to such Default or Event of Default as may be requested by all of the Banks or
the Required Banks, as applicable, in accordance with Article IX; provided,
however, that unless and until the Administrative Agent has received any such
request, the Agents may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable or in the best interest of the Banks.

                  10.06 Credit Decision. Each Bank acknowledges that none of
Agent-Related Persons has made any representation or warranty to it, and that no
act by Agents hereinafter taken, including any review of the affairs of the
Borrower and its Subsidiaries, shall be deemed to constitute any representation
or warranty by any Agent-Related Person to any Bank. Each Bank represents to the
Agents that it has, independently and without reliance upon any Agent-Related
Person and based on such documents and information as it has deemed appropriate,
made its own appraisal of and investigation into the business, prospects,
operations, property, financial and other condition and creditworthiness of the
Borrower and its Subsidiaries, the value of and title to any Collateral, and all
applicable bank regulatory laws relating to the transactions contemplated
hereby, and made its own decision to enter into this Agreement and to extend
credit to the Borrower hereunder. Each Bank also represents that it will,
independently and without reliance upon any Agent-Related Person and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or
not taking action under this Agreement and the other Loan Documents, and to make
such investigations as it deems necessary to inform itself as to the business,
prospects, operations, property, financial and other condition and
creditworthiness of the Borrower. Except

                                       68
<PAGE>

for notices, reports and other documents expressly herein required to be
furnished to the Banks by the Agents, the Agents shall not have any duty or
responsibility to provide any Bank with any credit or other information
concerning the business, prospects, operations, property, financial and other
condition or creditworthiness of the Borrower which may come into the possession
of any of Agent-Related Persons.

                  10.07 Indemnification. Whether or not the transactions
contemplated hereby are consummated, the Banks shall indemnify upon demand
Agent-Related Persons (to the extent not reimbursed by or on behalf of the
Borrower and without limiting the obligation of the Borrower to do so), pro
rata, from and against any and all Indemnified Liabilities; provided, however,
that no Bank shall be liable for the payment to Agent-Related Persons of any
portion of such Indemnified Liabilities resulting solely from such Person's
gross negligence or willful misconduct. Without limitation of the foregoing,
each Bank shall reimburse Agents upon demand for its ratable share of any costs
or out-of-pocket expenses (including Attorney Costs) incurred by Agents in
connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement, any other Loan Document, or any document
contemplated by or referred to herein, to the extent that Agents are not
reimbursed for such expenses by or on behalf of the Borrower. The undertaking in
this Section shall survive the payment of all Obligations hereunder and the
resignation or replacement of Agents.

                  10.08 Agents in Individual Capacity. Fortis and its Affiliates
and BNP Paribas and its Affiliates may make loans to, issue letters of credit
for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting
or other business with the Borrower and its Subsidiaries and Affiliates as
though Fortis and BNP Paribas were not Agents or Issuing Banks hereunder and
without notice to or consent of the Banks. The Banks acknowledge that, pursuant
to such activities, Fortis or its Affiliates and BNP Paribas or its Affiliates
may receive information regarding the Borrower or its Affiliates (including
information that may be subject to confidentiality obligations in favor of the
Borrower or such Subsidiary) and acknowledge that the Agents shall be under no
obligation to provide such information to them. With respect to its Loans,
Fortis and BNP Paribas shall have the same rights and powers under this
Agreement as any other Bank and may exercise the same as though it were not the
Agents or Issuing Banks, and the terms "Bank" and "Banks" include each of Fortis
and BNP Paribas in its individual capacity.

                  10.09 Successor Administrative Agent. The Administrative Agent
may resign as the Administrative Agent upon thirty (30) days' notice to the
Banks. If the Administrative Agent resigns under this Agreement, BNP Paribas
shall automatically become the successor agent, unless BNP Paribas declines. If
BNP Paribas declines, the Required Banks shall appoint, from among the Banks, a
successor agent for the Banks. If no successor agent is appointed prior to the
effective date of the resignation of the Administrative Agent, the resigning
Administrative Agent may appoint, after consulting with the Banks, a successor
agent from among the Banks. Upon the acceptance of its appointment as successor
agent hereunder, the successor agent shall succeed to all the rights, powers and
duties of the retiring Administrative Agent and the term "Administrative Agent"
shall mean such successor agent and the retiring Administrative Agent's
appointment, powers and duties as Administrative Agent shall be terminated.
After any retiring

                                       69
<PAGE>

Administrative Agent's resignation hereunder as Administrative Agent, the
provisions of this Article X and Sections 11.04 and 11.05 shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement. If no successor agent has accepted
appointment as the Administrative Agent by the date which is thirty (30) days
following a retiring Administrative Agent's notice of resignation, the retiring
Administrative Agent's resignation shall nevertheless thereupon become effective
and the Banks shall perform all of the duties of the Administrative Agent
hereunder until such time, if any, as the Banks appoint a successor agent as
provided for above.

                  10.10    Withholding Tax.

                  (a) If any Bank is a "foreign corporation, partnership or
trust" within the meaning of the Code and such Bank claims exemption from, or a
reduction of, U.S. withholding tax under Sections 1441 or 1442 of the Code, such
Bank agrees with and in favor of the Administrative Agent, to deliver to the
Administrative Agent:

                     (i) if such Bank claims an exemption from, or a reduction
         of, withholding tax under a United States tax treaty, properly
         completed and executed copies of IRS Form W-8BEN before the payment of
         any interest in the first calendar year and before the payment of any
         interest in each third succeeding calendar year during which interest
         may be paid under this Agreement;

                     (ii) if such Bank claims that interest paid under this
         Agreement is exempt from United States withholding tax because it is
         effectively connected with a United States trade or business of such
         Bank, two properly completed and executed copies of IRS Form W-8ECI
         before the payment of any interest is due in the first taxable year of
         such Bank and in each succeeding taxable year of such Bank during which
         interest may be paid under this Agreement; and

                     (iii) such other form or forms as may be required under the
         Code or other laws of the United States as a condition to exemption
         from, or reduction of, United States withholding tax.

Such Bank agrees to promptly notify the Administrative Agent of any change in
circumstances which would modify or render invalid any claimed exemption or
reduction.

                  (b) If any Bank claims exemption from, or reduction of,
withholding tax under a United States tax treaty by providing IRS Form W-8BEN
and such Bank sells, assigns, grants a participation in, or otherwise transfers
all or part of the Obligations of the Borrower to such Bank, such Bank agrees to
notify the Administrative Agent of the percentage amount in which it is no
longer the beneficial owner of Obligations of the Borrower to such Bank. To the
extent of such percentage amount, the Administrative Agent will treat such
Bank's IRS Form W-8BEN as no longer valid.

                  (c) If any Bank claiming exemption from United States
withholding tax by filing IRS Form W-8ECI with the Administrative Agent sells,
assigns, grants a participation in, or otherwise transfers all or part of the
Obligations of the Borrower to such Bank, such Bank agrees to undertake sole
responsibility for complying with the withholding tax requirements imposed by
Sections 1441 and 1442 of the Code.

                                       70
<PAGE>

                  (d) If any Bank is entitled to a reduction in the applicable
withholding tax, the Administrative Agent may withhold from any interest payment
to such Bank an amount equivalent to the applicable withholding tax after taking
into account such reduction. However, if the forms or other documentation
required by subsection (a) of this Section are not delivered to the
Administrative Agent, then the Administrative Agent may withhold from any
interest payment to such Bank not providing such forms or other documentation an
amount equivalent to the applicable withholding tax imposed by Sections 1441 and
1442 of the Code, without reduction.

                  (e) If the IRS or any other Governmental Authority of the
United States or other jurisdiction asserts a claim that the Administrative
Agent did not properly withhold tax from amounts paid to or for the account of
any Bank (because the appropriate form was not delivered, was not properly
executed, or because such Bank failed to notify the Administrative Agent of a
change in circumstances which rendered the exemption from, or reduction of,
withholding tax ineffective, or for any other reason) such Bank shall indemnify
the Administrative Agent fully for all amounts paid, directly or indirectly, by
the Administrative Agent as tax or otherwise, including penalties and interest,
and including any taxes imposed by any jurisdiction on the amounts payable to
the Administrative Agent under this Section, together with all costs and
expenses (including Attorney Costs), except to the extent caused solely by the
gross negligence or willful misconduct of the Administrative Agent. The
obligation of the Banks under this Subsection shall survive the payment of all
Obligations and the resignation or replacement of the Administrative Agent.

                  10.11 Collateral Matters. (a) The Agents are authorized on
behalf of all the Banks, without the necessity of any notice to or further
consent from the Banks, from time to time to take any action with respect to any
Collateral or the Loan Documents which may be necessary to perfect and maintain
perfected the security interest in and Liens upon the Collateral granted
pursuant to the Loan Documents.

                  (b) The Banks irrevocably authorize the Agents, at their
option and in their discretion, to release any Lien granted to or held by the
Administrative Agent upon any Collateral (I) upon payment in full of all Loans
and all other Obligations known to the Agents and payable under this Agreement
or any other Loan Document; (ii) constituting property sold or to be sold or
disposed of as part of or in connection with any disposition permitted
hereunder; (iii) constituting property in which the Borrower or any Subsidiary
owned no interest at the time the Lien was granted or at any time thereafter;
(iv) constituting property leased to the Borrower or any Subsidiary under a
lease which has expired or been terminated in a transaction permitted under this
Agreement or is about to expire and which has not been, and is not intended by
the Borrower or such Subsidiary to be, renewed or extended; (v) consisting of an
instrument evidencing Indebtedness or other debt instrument, if the indebtedness
evidenced thereby has been paid in full; or (vi) if approved, authorized or
ratified in writing by the all of the Banks. Upon request by the Agents at any
time, the Banks will confirm in writing the Agents' authority to release
particular types or items of Collateral pursuant to this Subsection 10.11(b);
provided, however, that the absence of any such confirmation for whatever reason
shall not affect the Agents' rights under this Section 10.11.

                                       71
<PAGE>
                  (c) Each Bank agrees with and in favor of each other (which
agreement shall not be for the benefit of the Borrower or any Subsidiary) that
the Borrower's obligations to such Bank under this Agreement and the other Loan
Documents is not and shall not be secured by any real property collateral now or
hereafter acquired by such Bank.

                  10.12 Monitoring Responsibility. Each Bank will make its own
credit decisions hereunder, including the decision whether or not to make
advances or consent to the Issuance of Letters of Credit, thus the Agents shall
have no duty to monitor the Collateral Position, the amounts outstanding under
sub-lines or the reporting requirements or the contents of reports delivered by
the Borrower. Each Bank assumes the responsibility of keeping itself informed at
all times.

                                   ARTICLE XI

                                  MISCELLANEOUS

                  11.01 Amendments and Waivers. No amendment, supplement,
modification or waiver of any provision of this Agreement or any other Loan
Document, and no consent with respect to any departure by the Borrower
therefrom, shall be effective unless the same shall be in accordance with the
provisions of this Section 11.01. The Required Banks may, or, with the written
consent of the Required Banks, the Administrative Agent may, from time to time,
(a) enter into with the Borrower written amendments, supplements or
modifications hereto and to the other Loan Documents for the purpose of adding
any provisions to this Agreement or the other Loan Documents or changing in any
manner the rights of the Banks or of the Borrower hereunder or thereunder or (b)
waive, on such terms and conditions as the Required Banks or the Administrative
Agent, as the case may be, may specify in such instrument, any of the
requirements of this Agreement or the other Loan Documents or any Default or
Event of Default and its consequences; provided, however, that no such waiver
and no such amendment, supplement or modification shall (i) reduce the amount or
extend the scheduled date of maturity of any Loan or of any installment thereof,
or reduce the stated rate of any interest or fee payable hereunder or extend the
scheduled date of any payment thereof or increase the amount or extend the
expiration date of any Bank's Uncommitted Line Portion, in each case without the
consent of each Bank affected thereby, or (ii) amend, modify or waive any
provision of this Section 11.01 or reduce the percentage specified in the
definition of Required Banks, or consent to the assignment or transfer by the
Borrower of any of its rights and obligations under this Agreement and the other
Loan Documents or release all or substantially all of the Collateral or release
a Guarantor from its obligations under a Guaranty, in each case without the
written consent of each of the Banks directly affected thereby, or (iii) amend,
modify or waive any provision of Section 10 without the written consent of the
Agents. Any such waiver and any such amendment, supplement or modification shall
apply equally to each of the Banks and shall be binding upon the Borrower, the
Banks, the Agents and all future holders of the Loans. In the case of any
waiver, the Borrower, the Banks and the Agents shall be restored to their former
positions and rights hereunder and under the other Loan Documents, and any
Default or Event of Default waived shall be deemed to be cured and not
continuing; but no such waiver shall extend

                                       72
<PAGE>

to any subsequent or other Default or Event of Default or impair any right
consequent thereon. Any such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

                  11.02    Notices.

                  (a) All notices, requests and other communications shall be in
writing (including, unless the context expressly otherwise provides, by
facsimile transmission; provided, however, that any matter transmitted by the
Borrower by facsimile (i) shall be immediately confirmed by a telephone call to
the recipient at the number specified on Schedule 11.02, and (ii) shall be
followed promptly by delivery of a hard copy original thereof) and mailed, faxed
or delivered, to the address or facsimile number specified for notices on
Schedule 11.02; or, as directed to the Borrower or the Agents, to such other
address as shall be designated by such party in a written notice to the other
parties, and as directed to any other party, at such other address as shall be
designated by such party in a written notice to the Borrower and the Agents.

                  (b) All such notices, requests and communications shall, when
transmitted by overnight delivery, or faxed, be effective when delivered for
overnight (next-day) delivery, or transmitted in legible form by facsimile
machine, respectively, or if mailed, upon the third Business Day after the date
deposited into the U.S. mail, or if delivered, upon delivery; except that
notices pursuant to Articles II, III or X shall not be effective until actually
received by the Administrative Agent or Agents, as applicable.

                  (c) Any agreement of the Agents and the Banks herein to
receive certain notices by telephone or facsimile is solely for the convenience
and at the request of the Borrower. The Agents and the Banks shall be entitled
to rely on the authority of any Person purporting to be a Person authorized by
the Borrower to give such notice and the Agents and the Banks shall not have any
liability to the Borrower or other Person on account of any action taken or not
taken by the Agents or the Banks in reliance upon such telephonic or facsimile
notice, except to the extent of the gross negligence or willful misconduct of
the Agents or any Bank. The obligation of the Borrower to repay the Loans and
L/C Obligations shall not be affected in any way or to any extent by any failure
by the Agents and the Banks to receive written confirmation of any telephonic or
facsimile notice or the receipt by the Agents and the Banks of a confirmation
which is at variance with the terms understood by the Agents and the Banks to be
contained in the telephonic or facsimile notice.

                  11.03 No Waiver; Cumulative Remedies. No failure to exercise
and no delay in exercising, on the part of the Agents or any Bank, any right,
remedy, power or privilege hereunder, shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any
other right, remedy, power or privilege.

                  11.04    Costs and Expenses.  The Borrower shall:

                  (a) whether or not the transactions contemplated hereby are
consummated, pay or reimburse Fortis and BNP Paribas (including in their
capacity as Agents) within five (5) Business Days after demand (subject to
Subsection 5.01(e)) for all the actual and

                                       73
<PAGE>

reasonable costs and expenses incurred by Fortis and BNP Paribas (including in
their capacity as Agents) in connection with the preparation, delivery, and
execution of, and any amendment, supplement, waiver or modification to (in each
case, whether or not consummated), this Agreement, any Loan Document and any
other documents prepared in connection herewith or therewith, and the
consummation of the transactions contemplated hereby and thereby, including
reasonable Attorney Costs and costs of commercial finance examinations, incurred
by Fortis and BNP Paribas (including in their capacity as Agents) excluding,
however, any costs or expenses incurred in connection with any negotiation,
dispute or claim solely between or among either of the Agents and/or one or more
of the Banks; and

                  (b) pay or reimburse the Agents and each Bank within five
Business Days after demand (subject to Subsection 5.01(e)) for all actual and
reasonable costs and expenses (including Attorney Costs) incurred by them in
connection with the monitoring, administration, enforcement, attempted
enforcement, or preservation of any rights or remedies under this Agreement or
any other Loan Document excluding, however, any costs or expenses incurred in
connection with any negotiation, dispute or claim solely between or among the
Agents and/or one or more of the Banks; and all such costs and expenses during
the existence of an Event of Default or after acceleration of the Loans
(including in connection with any "workout" or restructuring regarding the
Loans, and including in any Insolvency Proceeding or appellate proceeding).

                  11.05 INDEMNITY. WHETHER OR NOT THE TRANSACTIONS CONTEMPLATED
HEREBY ARE CONSUMMATED, THE BORROWER SHALL INDEMNIFY AND HOLD AGENT-RELATED
PERSONS, AND EACH BANK AND EACH OF ITS RESPECTIVE OFFICERS, DIRECTORS,
EMPLOYEES, COUNSEL, AGENTS AND ATTORNEYS-IN-FACT (EACH, AN "INDEMNIFIED PERSON")
HARMLESS FROM AND AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES,
PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, CHARGES, EXPENSES AND DISBURSEMENTS
(INCLUDING ATTORNEY COSTS) OF ANY KIND OR NATURE WHATSOEVER WHICH MAY AT ANY
TIME (INCLUDING AT ANY TIME FOLLOWING REPAYMENT OF THE LOANS, THE TERMINATION OF
THE LETTERS OF CREDIT AND THE TERMINATION, RESIGNATION OR REPLACEMENT OF THE
ADMINISTRATIVE AGENT OR REPLACEMENT OF ANY BANK) BE IMPOSED ON, INCURRED BY OR
ASSERTED AGAINST ANY SUCH PERSON IN ANY WAY RELATING TO OR ARISING OUT OF THIS
AGREEMENT OR ANY DOCUMENT CONTEMPLATED BY OR REFERRED TO HEREIN, OR THE
TRANSACTIONS CONTEMPLATED HEREBY, OR ANY ACTION TAKEN OR OMITTED BY ANY SUCH
PERSON UNDER OR IN CONNECTION WITH ANY OF THE FOREGOING, INCLUDING WITH RESPECT
TO ANY INVESTIGATION, LITIGATION OR PROCEEDING (INCLUDING ANY INSOLVENCY
PROCEEDING OR APPELLATE PROCEEDING) RELATED TO OR ARISING OUT OF THIS AGREEMENT
OR THE LOANS OR LETTERS OF CREDIT OR THE USE OF THE PROCEEDS THEREOF, WHETHER OR
NOT ANY INDEMNIFIED PERSON IS A PARTY THERETO (ALL THE FOREGOING, COLLECTIVELY,
THE "INDEMNIFIED LIABILITIES"); PROVIDED, HOWEVER, THAT THE BORROWER SHALL HAVE
NO OBLIGATION HEREUNDER TO ANY INDEMNIFIED PERSON FOR THAT PORTION OF ANY
INDEMNIFIED LIABILITIES THAT IS ADJUDGED BY A COURT OF COMPETENT JURISDICTION TO
HAVE BEEN CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH
INDEMNIFIED PERSON OR THAT PORTION OF ANY INDEMNIFIED LIABILITIES WHICH ARE OWED
BY AN INDEMNIFIED PERSON TO ANY OTHER INDEMNIFIED PERSON, BUT IN ALL EVENTS, THE
BORROWER SHALL REMAIN LIABLE FOR THE REMAINDER OF THE INDEMNIFIED LIABILITIES
NOT SO EXCLUDED. THE AGREEMENTS IN THIS SECTION SHALL SURVIVE PAYMENT OF ALL
OTHER OBLIGATIONS.

                                       74
<PAGE>

                  11.06 Payments Set Aside. To the extent that the Borrower
makes a payment to the Agents or the Banks, or the Agents or the Banks exercise
their right of set-off, and such payment or the proceeds of such set-off or any
part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside or required (including pursuant to any settlement
entered into by the Agents or such Bank in its discretion) to be repaid to a
trustee, receiver or any other party, in connection with any Insolvency
Proceeding or otherwise, then (a) to the extent of such recovery the obligation
or part thereof originally intended to be satisfied shall be revived and
continued in full force and effect as if such payment had not been made or such
set-off had not occurred, and (b) each Bank severally agrees to pay to each of
the Agents upon demand its pro rata share of any amount so recovered from or
repaid by the Agents.

                  11.07 Successors and Assigns. The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, except that the Borrower may not assign or
transfer any of its rights or Obligations under this Agreement without the prior
written consent of the Agents and each Bank.

                  11.08    Assignments, Participations, Etc.

                  (a) Any Bank, at any time may assign and delegate to one or
more Eligible Assignees (each an "Assignee") all, or any ratable part of all, of
the Loans, the Uncommitted Line, the L/C Obligations and the other rights and
obligations of such Bank hereunder, in a minimum amount of $1,000,000.00;
provided, however, that (i) any such disposition shall not, without the prior
consent of the Borrower, require the Borrower to apply to register or qualify
the Loan or any Note under the securities laws of any state, and (ii) the
Borrower and the Administrative Agent may continue to deal solely and directly
with such Bank in connection with the interest so assigned to an Assignee until
(x) written notice of such assignment, together with payment instructions,
addresses and related information with respect to the Assignee, shall have been
given to the Borrower and the Administrative Agent by such Bank and the
Assignee; (y) such Bank and its Assignee shall have delivered to the Borrower
and the Administrative Agent an Assignment and Acceptance ("Assignment and
Acceptance") in form attached hereto as Exhibit D, together with any Note or
Notes subject to such assignment; and (z) the assignor Bank or Assignee has paid
to the Administrative Agent a processing fee in the amount of $2,500.00.

                  (b) From and after the date that the Administrative Agent
notifies the assignor Bank that it has received an executed Assignment and
Acceptance and payment of the above-referenced processing fee, (i) the Assignee
thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, shall have the rights and obligations of a Bank under the Loan
Documents, and (ii) the assignor Bank shall, to the extent that rights and
obligations hereunder and under the other Loan Documents have been assigned by
it pursuant to such Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Loan Documents.

                  (c) The Borrower shall execute and deliver to the
Administrative Agent, new Notes evidencing such Assignee's assigned Loans and
Uncommitted Line Portion and, if the assignor Bank has retained a portion of its
Loans and its Uncommitted Line Portion, replacement Notes in the principal
amount of the Loans retained by the assignor Bank (such Notes to be in

                                       75
<PAGE>

exchange for, but not in payment of, the Notes held by such Bank). Immediately
upon each Assignee's making its processing fee payment under the Assignment and
Acceptance, this Agreement shall be deemed to be amended to the extent, but only
to the extent, necessary to reflect the addition of the Assignee and the
resulting adjustment of the Uncommitted Line Portion arising therefrom. The
Uncommitted Line Portion allocated to each Assignee shall reduce such
Uncommitted Line Portion of the assigning Bank pro tanto. Upon such Assignment,
the Administrative Agent is authorized to revise Schedule 2.01 and Schedule
11.02 to reflect the adjusted status of the Banks.

                  (d) Any Bank may at any time sell to one or more commercial
banks or other Persons not Affiliates of the Borrower (a "Participant")
participating interests in any Loans, the Uncommitted Line Portion of that Bank
and the other interests of that Bank (the "originating Bank") hereunder and
under the other Loan Documents; provided, however, that (i) the originating
Bank's and the Borrower's obligations under this Agreement shall remain
unchanged, (ii) the originating Bank shall remain solely responsible for the
performance of such obligations, (iii) the Borrower, the Issuing Banks and the
Administrative Agent shall continue to deal solely and directly with the
originating Bank in connection with the originating Bank's rights and
obligations under this Agreement and the other Loan Documents, and (iv) no Bank
shall transfer or grant any participating interest under which the Participant
has rights to approve any amendment to, or any consent or waiver with respect
to, this Agreement or any other Loan Document, except to the extent such
amendment, consent or waiver would require unanimous consent of the Banks as
described in the first proviso to Section 11.01. In the case of any such
participation, the Participant shall not have any rights under this Agreement,
or any of the other Loan Documents, and all amounts payable by the Borrower
hereunder shall be determined as if such Bank had not sold such participation;
except that, if amounts outstanding under this Agreement are due and unpaid, or
shall have been declared or shall have become due and payable upon the
occurrence of an Event of Default, each Participant shall be deemed to have the
right of set-off in respect of its participating interest in amounts owing under
this Agreement to the same extent as if the amount of its participating interest
were owing directly to it as a Bank under this Agreement.

                  (e) Each Bank agrees to take normal and reasonable precautions
and exercise due care to maintain the confidentiality of all information
identified as "confidential" or "secret" by the Borrower and provided to it by
the Borrower or any Subsidiary or Affiliate, or by the Agents on the Borrower or
Subsidiary's or Affiliate's behalf, under this Agreement or any other Loan
Document, and neither it nor any of its Affiliates shall use any such
information other than in connection with or in enforcement of this Agreement
and the other Loan Documents; except to the extent such information (i) was or
becomes generally available to the public other than as a result of disclosure
by the Bank, or (ii) was or becomes available on a non-confidential basis from a
source other than the Borrower; provided, however, that such source is not bound
by a confidentiality agreement with, or under obligation of confidentiality, the
Borrower known to the Bank; provided, however, that any Bank may disclose such
information (A) at the request or pursuant to any requirement of any
Governmental Authority to which the Bank is subject or in connection with an
examination of such Bank by any such authority; (B) pursuant to subpoena or
other court process; (C) when required to do so in accordance with the
provisions of any applicable Requirement of Law; (D) to the extent reasonably
required in connection with any litigation or proceeding to which the
Administrative Agent, any Bank or their respective

                                       76
<PAGE>

Affiliates may be party; (E) to the extent reasonably required in connection
with the exercise of any remedy hereunder or under any other Loan Document; (F)
to such Bank's independent auditors and other professional advisors; (G) to any
Affiliate of such Bank, or to any Participant or Assignee, actual or potential;
provided, however, that such Affiliate, Participant or Assignee agrees to keep
such information confidential to the same extent required of the Banks
hereunder, and (H) as to any Bank, as expressly permitted under the terms of any
other document or agreement regarding confidentiality to which the Borrower is
party or is deemed party with such Bank. The foregoing is not intended to limit
the Banks' obligations to maintain confidential information received from the
Borrower under applicable laws.

                  (f) Notwithstanding any other provision in this Agreement, any
Bank may at any time create a security interest in, or pledge, all or any
portion of its rights under and interest in this Agreement and the Note held by
it in favor of any Federal Reserve Bank in accordance with Regulation A of the
FRB or U.S. Treasury Regulation 31 CFR ss.203.14, and such Federal Reserve Bank
may enforce such pledge or security interest in any manner permitted under
applicable law.

                  11.09 Set-off. In addition to any rights and remedies of the
Banks provided by law, if an Event of Default exists or the Loans have been
accelerated, each Bank is authorized at any time and from time to time, without
prior notice to the Borrower, any such notice being waived by the Borrower to
the fullest extent permitted by law, to set off and apply any and all deposits
at any time held by, and other indebtedness at any time owing by, such Bank to
or for the credit or the account of the Borrower against any and all Obligations
owing to such Bank, now or hereafter existing, irrespective of whether or not
the Agents or such Bank shall have made demand under this Agreement or any Loan
Document and although such Obligations may be contingent or unmatured. Each Bank
agrees promptly to notify the Borrower and the Administrative Agent after any
such set-off and application made by such Bank; provided, however, that the
failure to give such notice shall not affect the validity of such set-off and
application.

                  11.10 Automatic Debits of Fees. With respect to any letter of
credit fee or other fee, interest or any other cost or expense (including
Attorney Costs) due and payable to the Agents, the Issuing Banks, Fortis or BNP
Paribas under the Loan Documents, the Borrower hereby irrevocably authorizes the
Collateral Agent to debit any deposit accounts of the Borrower with the
Collateral Agent (such deposit accounts being owned by the Collateral Agent and
under the exclusive dominion and control of the Collateral Agent) including the
Bank Blocked Account in an amount such that the aggregate amount debited from
all such deposit accounts does not exceed such fee or other cost or expense. If
there are insufficient funds in such deposit accounts to cover the amount of the
fee or other cost or expense then due, such debits will be reversed (in whole or
in part, in the Administrative Agent's sole discretion) and such amount not
debited shall be deemed to be unpaid. No such debit under this Section shall be
deemed a set-off.

                  11.11 Notification of Addresses, Lending Offices, Etc. Each
Bank shall notify the Agents in writing of any changes in the address to which
notices to the Bank should be directed, of addresses of any Lending Office, of
payment instructions in respect of all payments to be made to it hereunder and
of such other administrative information as the Agents shall reasonably request.

                                       77
<PAGE>

                  11.12 Bank Blocked Account Charges and Procedures. The
Collateral Agent is hereby authorized to (a) charge the Bank Blocked Account or
any deposit account of the Borrower maintained at the Collateral Agent for all
returned checks, service charges, and other fees and charges associated with the
deposits by the Borrower to and withdrawals by the Borrower from the Bank
Blocked Account; (b) follow its usual procedures in the event the Bank Blocked
Account or any check, draft or other order for payment of money should be or
become the subject of any writ, levy, order or other similar judicial or
regulatory order or process; (c) charge the Bank Blocked Account or any deposit
account of the Borrower maintained at the Collateral Agent for any Letter of
Credit reimbursement, Loan repayments, interest or fees; and (d) pay from the
Bank Blocked Account, on behalf of the Borrower, suppliers and other business
expenses of the Borrower. If the available balances in the Bank Blocked Account
relating to the Borrower are not sufficient to pay the Administrative Agent for
any returned check, draft or order for the payment of money relating to the
Borrower, or to compensate the Administrative Agent for any charges or fees due
the Administrative Agent with respect to the deposits by the Borrower to and
withdrawals by the Borrower from the Bank Blocked Account, the Borrower agrees
to pay on demand the amount due the Administrative Agent. The Borrower agrees
that it cannot, and will not, withdraw any monies from the Bank Blocked Account
and it will not permit the Bank Blocked Account to become subject to any other
pledge, assignment, lien, charge or encumbrance of any kind, nature or
description, other than the Administrative Agent's security interest.

                  11.13 Counterparts. This Agreement may be executed in any
number of separate counterparts, each of which, when so executed, shall be
deemed an original, and all of said counterparts taken together shall be deemed
to constitute but one and the same instrument.

                  11.14 Severability. The illegality or unenforceability of any
provision of this Agreement or any instrument or agreement required hereunder
shall not in any way affect or impair the legality or enforceability of the
remaining provisions of this Agreement or any instrument or agreement required
hereunder.

                  11.15 No Third Parties Benefited. This Agreement is made and
entered into for the sole protection and legal benefit of the Borrower, the
Banks, the Administrative Agent and Agent-Related Persons, and their permitted
successors and assigns, and no other Person shall be a direct or indirect legal
beneficiary of, or have any direct or indirect cause of action or claim in
connection with, this Agreement or any of the other Loan Documents.

                  11.16    GOVERNING LAW AND JURISDICTION.

                  (a) THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW (WITHOUT REFERENCE TO PRINCIPLES OF
CONFLICTS OF LAWS) OF THE STATE OF NEW YORK; PROVIDED, HOWEVER, THAT THE
ADMINISTRATIVE AGENT AND THE BANKS SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL
LAW.

                  (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE STATE COURTS LOCATED
IN NEW YORK COUNTY, CITY OF NEW YORK,

                                       78
<PAGE>

STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF
THE BORROWER, THE ADMINISTRATIVE AGENT AND THE BANKS CONSENTS, FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH
OF THE BORROWER, THE ADMINISTRATIVE AGENT AND THE BANKS IRREVOCABLY WAIVES ANY
OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS
AGREEMENT OR ANY DOCUMENT RELATED HERETO. THE BORROWER HEREBY WAIVES PERSONAL
SERVICE OF ANY AND ALL PROCESS UPON THE BORROWER AND IRREVOCABLY APPOINTS
CORPORATION SERVICE COMPANY, 80 STATE STREET, ALBANY, NY 12207, AS REGISTERED
AGENT FOR THE PURPOSE OF ACCEPTING SERVICE OF PROCESS WITHIN THE STATE OF NEW
YORK AND AGREES TO OBTAIN A LETTER FROM CORPORATION SERVICE COMPANY,
ACKNOWLEDGING SAME AND CONTAINING THE AGREEMENT OF CORPORATION SERVICE COMPANY,
TO PROVIDE THE ADMINISTRATIVE AGENT WITH THIRTY (30) DAYS ADVANCE NOTICE PRIOR
TO ANY RESIGNATION OF CORPORATION SERVICE COMPANY AS SUCH REGISTERED AGENT.

                  11.17 WAIVER OF JURY TRIAL. THE BORROWER, THE BANKS AND THE
AGENTS EACH WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE
OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY
ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES
AGAINST ANY OTHER PARTY OR ANY AGENT-RELATED PERSON, PARTICIPANT OR ASSIGNEE,
WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. THE
BORROWER, THE BANKS AND THE ADMINISTRATIVE AGENT EACH AGREE THAT ANY SUCH CLAIM
OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT
LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO
A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION,
COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE
THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR
ANY PROVISION HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS.

                  11.18 DISCRETIONARY FACILITY. THE BORROWER ACKNOWLEDGES AND
AGREES THAT THIS AGREEMENT PROVIDES FOR A CREDIT FACILITY THAT IS COMPLETELY
DISCRETIONARY ON THE PART OF THE BANKS AND THAT THE BANKS HAVE ABSOLUTELY NO
DUTY OR OBLIGATION TO ADVANCE ANY

                                       79
<PAGE>

REVOLVING LOANS OR TO ISSUE ANY LETTER OF CREDIT. THE BORROWER UNDERSTANDS THAT
WITHOUT REASON, CAUSE OR PRIOR NOTICE, THE BANKS MAY CEASE ADVANCING REVOLVING
LOANS AND ISSUING LETTERS OF CREDIT AND MAKE DEMAND FOR PAYMENT OF ALL
OBLIGATIONS OF BORROWER TO THE BANKS AT ANY TIME. BORROWER REPRESENTS AND
WARRANTS TO THE BANKS THAT BORROWER IS AWARE OF THE RISKS ASSOCIATED WITH
CONDUCTING BUSINESS UTILIZING AN UNCOMMITTED FACILITY.

                  11.19 Entire Agreement. THIS AGREEMENT, TOGETHER WITH THE
OTHER LOAN DOCUMENTS, EMBODIES THE ENTIRE AGREEMENT AND UNDERSTANDING AMONG THE
BORROWER, THE BANKS AND THE ADMINISTRATIVE AGENT, AND SUPERSEDES ALL PRIOR OR
CONTEMPORANEOUS AGREEMENTS AND UNDERSTANDINGS OF SUCH PERSONS, VERBAL OR
WRITTEN, RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF.

                  11.20 Effect of Amendment and Restatement. On the Closing
Date, the Original Credit Agreement shall be amended, restated and superseded in
its entirety by this Agreement. The parties hereto acknowledge and agree that
the liens and security interests granted under the Security Agreements (as
defined in the Original Credit Agreement) are continuing and in full force and
effect and, upon the amendment and restatement of the Original Credit Agreement
pursuant to this Agreement, such liens and security interests secure and
continue to secure the payment of the Obligations, and that the Notes
outstanding under and as defined in the Original Credit Agreement are, upon the
Closing Date, replaced by the Notes issued hereunder.

                                       80
<PAGE>

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

<TABLE>
<CAPTION>
<S>                                                     <C>
                                                          WOODWARD MARKETING, L.L.C.,
                                                          a Delaware limited liability company

                                                          By:   /s/ RONALD W. BAHR
                                                               ----------------------------------
                                                              Name:  Ronald W. Bahr
                                                                     ----------------------------
                                                              Title:  Senior Vice President
                                                                      ---------------------------

                                                              Borrower's Address:
                                                              11251 Northwest Freeway, Suite 400
                                                              Houston, Texas  77092
                                                              Attention:  Ronald W. Bahr
                                                              Telephone:  (713) 688-7771
                                                              Facsimile:  (713) 688-5124

                                                          FORTIS CAPITAL CORP., a Connecticut corporation as
                                                          Administrative Agent, Collateral Agent, and a Bank

                                                          By:  /s/ IRENE C. RUMMEL
                                                               ----------------------------------
                                                              Name:  Irene C. Rummel
                                                                     ----------------------------
                                                              Title:  Senior Vice President
                                                                      ---------------------------

                                                          By:  /s/ LEONARD RUSSO
                                                               ----------------------------------
                                                              Name:  Leonard Russo
                                                                     ----------------------------
                                                              Title:  Director
                                                                      ---------------------------

                                                              100 Crescent Court
                                                              Suite 1777
                                                              Dallas, TX 75201
                                                              Telephone:  (214) 953-9314
                                                              Facsimile:  (214) 969-9332

                                                     [Woodward - Credit Agreement]
</TABLE>

                                       81
<PAGE>

<TABLE>
<CAPTION>
<S>                                                      <C>
                                                              FORTIS CAPITAL CORP.,
                                                              a Connecticut corporation,
                                                              as a Bank and Issuing Bank

                                                          By:  /s/ IRENE C. RUMMEL
                                                               ----------------------------------
                                                              Name:  Irene C. Rummel
                                                                     ----------------------------
                                                              Title:  Senior Vice President
                                                                      ---------------------------

                                                          By:  /s/ LEONARD RUSSO
                                                               ----------------------------------
                                                              Name:  Leonard Russo
                                                                     ----------------------------
                                                              Title:  Director
                                                                      ---------------------------

                                                              100 Crescent Court
                                                              Suite 1777
                                                              Dallas, TX 75201
                                                              Telephone:  (214) 953-9314
                                                              Facsimile:  (214) 969-9332
</TABLE>

                                       82
<PAGE>

<TABLE>
<CAPTION>
<S>                                                         <C>
                                                              BNP PARIBAS,
                                                              a bank organized under the laws of France, as a
                                                              Bank, Issuing Bank, and Documentation Agent

                                                          By:  /s/ EDWARD K. CHIN
                                                               ----------------------------------
                                                              Name:  Edward K. Chin
                                                                     ----------------------------
                                                              Title:  Director
                                                                      ---------------------------

                                                          By:  /s/ SALI WIN
                                                               ----------------------------------
                                                              Name:  Sali Win
                                                                     ----------------------------
                                                              Title:  Director
                                                                      ---------------------------

                                                              787 Seventh Avenue
                                                              New York, New York  10019
                                                              Attention:  Edward Chin
                                                              Telephone:  (212) 841-2020
                                                              Facsimile:  (212) 841-2536
</TABLE>

                                       83
<PAGE>

<TABLE>
<CAPTION>
<S>                                                      <C>
                                                              SOCIETE GENERALE,
                                                              as a Bank

                                                          By:  /s/ EMMANUEL CHESNEAU
                                                               ---------------------
                                                              Name:  Emmanuel Chesneau
                                                                     ----------------------------
                                                              Title:  Director
                                                                      ---------------------------

                                                              1221 Avenue of the Americas
                                                              New York, New York 10020
                                                              Attention: Barbara Paulsen
                                                              Telephone: (212) 278-6496
                                                              Fax: (212) 278-7417

                                                              NATEXIS BANQUES POPULAIRES,
                                                              NEW YORK BRANCH,
                                                              as a Bank

                                                          By:  /s/ DAVID PERSHAD
                                                               ----------------------------------
                                                              Name:  David Pershad
                                                                     ----------------------------
                                                              Title:  Vice President
                                                                      ---------------------------

                                                          By:  /s/ GUILLAUME DE PARSCAU
                                                               ------------------------
                                                              Name:  Guillaume de Parscau
                                                                     ----------------------------
                                                              Title:  First Vice President
                                                                      ---------------------------

                                                              1251 Avenue of the Americas, 34th Floor
                                                              New York, New York  10020
                                                              Attention:  David Pershad
                                                              Telephone:  (212) 872-5015
                                                              Facsimile:  (212) 354-9095
</TABLE>

                                       84
<PAGE>

<TABLE>
<CAPTION>
<S>                                                      <C>
                                                              RZB FINANCE LLC,
                                                              as a Bank

                                                          By:  /s/ HERMINE KIROLOS
                                                               ----------------------------------
                                                              Name:  Hermine Kirolos
                                                                     ----------------------------
                                                              Title:  Group Vice President
                                                                      ---------------------------

                                                              1133 Avenue of the Americas
                                                              New York, New York  10036
                                                              Attention:  Hermine Kirolos
                                                              Telephone:  (212) 845-4114
                                                              Facsimile:  (212) 944-6389
</TABLE>

                                       85
<PAGE>

                                 Schedule 2.01-1

                                  SCHEDULE 2.01

                              UNCOMMITTED LINE AND
                            UNCOMMITTED LINE PORTION
                           (EXCLUDING SWAP CONTRACTS)

                  I.       UNCOMMITTED LINE:

                  A.       Maximum Line:                      $250,000,000.00

                  B.       Total Line Amount
                           Subscribed:                        $210,000,000.00

                  C.       Subscribed Percentage:             84%

                  II.      UNCOMMITTED LINE PORTIONS, SUBSCRIBED AMOUNTS:

<TABLE>
<CAPTION>
        Line:                   Bank                         Dollar Amount           Share
        ----                    ----                         -------------           -----
<S>                      <C>                                <C>                    <C>
Borrowing Base Line      Fortis Capital Corp.               $ 75,000,000.00         35.71428%

                         BNP Paribas                        $ 75,000,000.00         35.71428%

                         Societe Generale                   $ 35,000,000.00         16.66667%

                         Natexis Banques Populaires,
                         New York Branch                    $ 15,000,000.00          7.14285%

                         RZB Finance LLC                    $ 10,000,000.00          4.76190%

                         TOTAL SUBSCRIBED LINE PORTIONS     $210,000,000.00            100%
</TABLE>

                                Schedule 2.01-1
<PAGE>

                                  SCHEDULE 3.10

                           EXISTING LETTERS OF CREDIT

                               [To be completed.]

                                Schedule 3.10-1

<PAGE>

                                  SCHEDULE 6.05

                 LITIGATION, AND PATENT, TRADEMARK, ETC. CLAIMS
None.

                                Schedule 6.05-1

<PAGE>

                                  SCHEDULE 6.07

                                  ERISA MATTERS
None.

                                Schedule 6.07-1

<PAGE>

                                  SCHEDULE 6.12

                              ENVIRONMENTAL MATTERS
None.

                                Schedule 6.12-1

<PAGE>

                                  SCHEDULE 6.16

                       SUBSIDIARIES AND EQUITY INVESTMENTS
Southern Resources, Inc.

                                Schedule 6.16-1

<PAGE>

                                  SCHEDULE 6.17

                                INSURANCE MATTERS
None.

                                Schedule 6.17-1

<PAGE>

                                SCHEDULE 7.03(F)

                         LOCATIONS OF INVENTORY STORAGE

North Liberty, Kansas
Saltville, Virginia
Barnsley, Kentucky
East Diamond, Kentucky
Bearcreek, Louisiana
Epps, Louisiana

                               Schedule 7.03(f)-1

<PAGE>

                                  SCHEDULE 8.01

                        PERMITTED INDEBTEDNESS AND LIENS
None.

                                 Schedule 8.01-1
<PAGE>

                                  SCHEDULE 8.07

                             CONTINGENT OBLIGATIONS
None.

                                 Schedule 8.07-1
<PAGE>

                                 SCHEDULE 11.02

                    LENDING OFFICES AND ADDRESSES FOR NOTICES

FORTIS CAPITAL CORP.,
--------------------
as Administrative Agent and Collateral Agent

Fortis Capital Corp.
100 Crescent Court
Suite 1777
Dallas, TX 75201
Attention: Marla Jennings
Telephone:  (214) 953-9314
Facsimile:  (214) 969-9332

FORTIS CAPITAL CORP.,
--------------------
as Issuing Bank and a Bank

Fortis Capital Corp.
100 Crescent Court
Suite 1777
Dallas, TX 75201
Attention: Marla Jennings
Telephone:  (214) 953-9314
Facsimile:  (214) 969-9332

BNP PARIBAS,
-----------
as Documentation Agent

BNP Paribas
787 Seventh Avenue
New York, New York  10019
Attention:  Edward Chin
Telephone:  (212) 841-2020
Facsimile:  (212) 841-2536

                                Schedule 11.02-1
<PAGE>

BNP PARIBAS,
-----------
as Issuing Bank and a Bank

BNP Paribas
787 Seventh Avenue
New York, New York  10019
Attention:  Edward Chin
Telephone:  (212) 841-2020
Facsimile:  (212) 841-2536

SOCIETE GENERALE

Societe Generale
1221 Avenue of the Americas
New York, New York 10020
Attention: Barbara Paulsen
Telephone: (212) 278-6496
Fax: (212) 278-7417

NATEXIS BANQUES POPULAIRES, NEW YORK BRANCH

Natexis Banques Populaires, New York Branch
1251 Avenue of the Americas
34th Floor
New York, New York  10020
Attention:  David Pershad
Telephone:  (212) 872-5015
Facsimile:  (212) 354-9095

RZB FINANCE LLC

RZB Finance LLC
1133 Avenue of the Americas
New York, New York  10036
Attention:  Hermine Kirolos
Telephone:  (212) 845-4114
Facsimile:  (212) 944-6389

                                Schedule 11.02-2
<PAGE>

                                    EXHIBIT A

                           FORM OF NOTICE OF BORROWING
                               (LETTERS OF CREDIT)

                                     [DATE]

Fortis Capital Corp.                                  BNP Paribas
100 Crescent Court                                    787 Seventh Avenue
Suite 1777                                            New York, New York 10019
Dallas, TX 75201                                      Attention: Edward Chin
Attention: Marla Jennings                             Telephone:  (212) 841-2020
Telephone:  (214) 953-9314                            Facsimile:  (212) 841-2536
Facsimile:  (214) 969-9332

         Re:      Uncommitted Amended and Restated Credit Agreement, dated to be
                  effective as of July 1, 2002 (as amended or supplemented from
                  time to time, the "Agreement"), by and among Woodward
                  Marketing, L.L.C. (the "Borrower"), the banks that from time
                  to time are parties thereto, Fortis Capital Corp., as
                  Administrative Agent, and BNP Paribas, as Documentation Agent

Ladies and Gentlemen:

                  Reference is made to the Agreement (capitalized terms used
herein that are not defined shall have the respective meanings ascribed thereto
in the Agreement). The Borrower hereby gives notice of its intention to request
the [ISSUANCE, AMENDMENT, OR RENEWAL] of Letters of Credit as is further
described on the Letter of Credit Application attached hereto.

                  The Borrower represents and warrants, as of the date hereof
and as of the date any Letter of Credit is Issued, amended or renewed, that (i)
no Default or Event of Default has occurred and is continuing on the date
hereof, nor will any thereof occur after giving effect to the Letters of Credit
requested above; (ii) that the Borrowing Base Advance Cap will not be exceeded
after giving effect to the Letters of Credit requested above; and (iii) all of
Borrower's representations and warranties under the Agreement are true and
correct, to Borrower's knowledge, as of the date hereof.

                                            Very truly yours,

                                            WOODWARD MARKETING, L.L.C.,

                                            By: ________________________________
                                                Name: __________________________
                                                Title: _________________________

                                      A-1
<PAGE>

                           FORM OF NOTICE OF BORROWING
                                (REVOLVING LOAN)

                                     [DATE]

Fortis Capital Corp.
100 Crescent Court
Suite 1777
Dallas, TX 75201
Attention: Marla Jennings
Telephone:  (214) 953-9314
Facsimile:  (214) 969-9332

         Re:      Uncommitted Amended and Restated Credit Agreement, dated to be
                  effective as of July 1, 2002 (as amended or supplemented from
                  time to time, the "Agreement"), by and among Woodward
                  Marketing, L.L.C. (the "Borrower"), the banks that from time
                  to time are parties thereto, Fortis Capital Corp., as
                  Administrative Agent, and BNP Paribas, as Documentation Agent

Ladies and Gentlemen:

                  Reference is made to the Agreement (capitalized terms used
herein that are not defined shall have the respective meanings ascribed thereto
in the Agreement). The Borrower hereby gives notice of its intention to borrow
under the Borrowing Base Line.
Please advance a Revolving Loan as follows:

                  Date of Borrowing (a-1)       : ______________________________
                  Amount                        : ______________________________
                  Type of Advance
                  (Base Rate or Offshore Rate)  : ______________________________
                  Interest Period
                  (if Offshore Rate)            : ______________________________

                  The Borrower represents and warrants, as of the date hereof
and as of the date any Revolving Loan is made or renewed, that (i) no Default or
Event of Default has occurred and is continuing on the date hereof, nor will any
thereof occur after giving effect to the Revolving

_____________________

(a-1) The aggregate amount of the Borrowing comprised of Offshore Rate Loans
must be made in an amount equal to the Offshore Effective Amount. The date of
the Borrowing must be a Business Day. Borrower must give four (4) Business Days
advance notice for Borrowings comprised of Offshore Rate Loans, and the same
Business Day advance notice for Borrowings comprised of Base Rate Loans.

                                      A-2
<PAGE>

Loan requested above; (ii) that neither the Borrowing Base Advance Cap nor the
Dollar Advance Cap will be exceeded after giving effect to the Revolving Loan
requested above; and (iii) all of Borrower's representations and warranties
under the Agreement are true and correct, to Borrower's knowledge, as of the
date hereof.

                                              Very truly yours,

                                              WOODWARD MARKETING, L.L.C.,

                                              By: ______________________________
                                                  Name: ________________________
                                                  Title: _______________________

                                      A-3
<PAGE>

                                    EXHIBIT B

                                     FORM OF
                        NOTICE OF CONVERSION/CONTINUATION

                                     [Date]

Fortis Capital Corp.
100 Crescent Court
Suite 1777
Dallas, TX 75201
Attention: Marla Jennings
Telephone:  (214) 953-9314
Facsimile:  (214) 969-9332

         Re:      Uncommitted Amended and Restated Credit Agreement, dated to be
                  effective as of July 1, 2002 (as amended or supplemented from
                  time to time, the "Agreement"), by and among Woodward
                  Marketing, L.L.C. (the "Borrower"), the banks that from time
                  to time are parties thereto, Fortis Capital Corp., as
                  Administrative Agent, and BNP Paribas, as Documentation Agent

Ladies and Gentlemen:

                  The Borrower hereby gives you irrevocable notice pursuant to
Section 2.04 of the Agreement that the undersigned hereby requests a
[conversion] [continuation] of [outstanding Borrowings] [an outstanding
Borrowing] into a new Borrowing (the "Proposed Borrowing") on the terms set
forth below:

                  Outstanding Borrowing #1

                  Date of Borrowing                      :
                  Aggregate Amount for Conversion(2)     :
                  Type of Advance                        :
                  Interest Period                        :

                  Proposed Borrowing

_________________________

     (2) The aggregate amount for conversion with respect to Borrowings
comprised of Offshore Rate Loans must be made in an amount equal to the Offshore
Effective Amount or, if the remaining outstanding amount of such Borrowing would
be less than an amount equal to the Offshore Effective Amount following the
conversion or continuation, in the remaining outstanding amount of such
Borrowing.

                                      B-1
<PAGE>

                  Date of Conversion or Continuation(3)    :
                  Aggregate Amount                         :
                  Type of Advance                          :
                  Interest Period                          :

                  The undersigned hereby certifies that the following statements
are true on the date hereof, and will be true on the date of the proposed
Borrowing:

                  (a) the representations and warranties contained in the
Agreement are correct in all material respects, before and after giving effect
to the proposed Borrowing and the application of the proceeds therefrom, as
though made on the date of the proposed Borrowing;

                  (b) no Default has occurred and remains uncured, nor would
result from the proposed Borrowing; and

                  (c) the Borrowing Base Advance Cap will not be exceeded after
giving effect to the proposed Borrowing.

                                              Very truly yours,

                                              WOODWARD MARKETING, L.L.C.,

                                              By: ______________________________
                                                  Name: ________________________
                                                  Title: _______________________

______________________

     (3) The date of the proposed conversion or continuation must be a Business
Day. Borrower must give four (4) Business Days advance notice for conversions
into or continuations of Borrowings comprised of Offshore Rate Loans, and the
same Business Day advance notice for conversions into or continuations of
Borrowings comprised of Base Rate Loans.

                                      B-2
<PAGE>

                                    EXHIBIT C

                                     FORM OF
                             COMPLIANCE CERTIFICATE

                                     [Date]

Fortis Capital Corp.                                  BNP Paribas
100 Crescent Court                                    787 Seventh Avenue
Suite 1777                                            New York, NY 10019
Dallas, TX 75201                                      Attention: Edward Chin
Attention: Marla Jennings                             Telephone:  (212) 841-2020
Telephone:  (214) 953-9314                            Facsimile:  (212) 841-2536
Facsimile:  (214) 969-9332

         Re:      Uncommitted Amended and Restated Credit Agreement, dated to be
                  effective as of July 1, 2002 (as amended or supplemented from
                  time to time, the "Agreement"), by and among Woodward
                  Marketing, L.L.C. (the "Borrower"), the banks that from time
                  to time are parties thereto, Fortis Capital Corp., as
                  Administrative Agent, and BNP Paribas, as Documentation Agent

Ladies and Gentlemen:

                  The Borrower, acting through its duly authorized Responsible
Officers (as that term is defined in the Agreement), certifies to each of the
Banks that the Borrower is in compliance with the Agreement and in particular
certifies the following as of ____________:

<TABLE>
<CAPTION>
<S>                                                                             <C>
                  (i)      Net Working Capital                                  $                ;
                                                                                 ----------------

                  (ii)     Tangible Net Worth                                   $                ;
                                                                                 ----------------

                  (iii)    Ratio of Total Liabilities to Tangible
                           Net Worth                                                             :1;
                                                                                -----------------

                  (iv)     Borrowing Base Sub-Cap                               $                .
                                                                                 ----------------
</TABLE>

                  Further, the undersigned hereby certify that the Net Position
has at no time exceeded the limitations set forth in Section 8.11 of the
Agreement and that the undersigned has no knowledge of any Defaults under the
Agreement which existed as of [______________] or which exist as of the date of
this letter.

                  The undersigned also certifies that the accompanying financial
statements present fairly, in all material respects, the financial condition of
the Borrower as of [_____________], and the related results of operations for
the [___________] then ended, in conformity with generally accepted accounting
principles.

                                      C-1
<PAGE>

                                           Very truly yours,

                                           WOODWARD MARKETING, L.L.C.

                                           By: _________________________________
                                               Name: ___________________________
                                               Title: __________________________

                                      C-2
<PAGE>

                                    EXHIBIT D

                                     FORM OF
                            ASSIGNMENT AND ACCEPTANCE

                                     [Date]

                  Reference is made to the Uncommitted Amended and Restated
Credit Agreement dated to be effective as of July 1, 2002 (as amended or
supplemented from time to time, the "Agreement"), among WOODWARD MARKETING,
L.L.C. (the "Borrower"), the banks that from time to time are signatories
thereto, and Fortis Capital Corp., as Administrative Agent. Capitalized terms
used herein but not defined herein shall have the meanings specified in the
Agreement.

                  Pursuant to the terms of the Agreement, [_________________]
("Assignor"), wishes to assign and delegate to [________________] ("Assignee"),
[_______]% of its rights and obligations under the Agreement. Therefore,
Assignor, Assignee, and Administrative Agent agree as follows:

                  1. The Assignor hereby sells and assigns and delegates to the
Assignee, and the Assignee hereby purchases and assumes from the Assignor,
without recourse to the Assignor and without representation or warranty except
for the representations and warranties specifically set forth in clauses (i),
(ii), and (iii) of Section 2 of this Assignment and Acceptance, a [_____]%
interest in and to all of the Assignor's rights and obligations under the
Agreement and the other Loan Documents as of the Effective Date (as defined
below), including such percentage interest in the Assignor's Uncommitted Line
Portion, the Loans owing to the Assignor, the Assignor's Pro Rata Share of the
Letters of Credit, and the Note held by the Assignor.

                  2. The Assignor (i) represents and warrants that, prior to
executing this Assignment and Acceptance, its Uncommitted Line Portion is
$[________________], the aggregate outstanding principal amount of Loans owed by
the Borrower to the Assignor is $[______________], and its Pro Rata Share of the
outstanding Effective Amount of L/C Obligations is $[_____________]; (ii)
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; (iii) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties, or representations
made in or in connection with the Agreement or any other Loan Document or the
execution, legality, validity, enforceability, genuineness, sufficiency, or
value of the Agreement or any other Loan Document or any other instrument or
document furnished pursuant thereto; (iv) makes no representation or warranty
and assumes no responsibility with respect to the financial condition of the
Borrower or the performance or observance by the Borrower of any of its
obligations under the Agreement or any other Loan Document or any other
instrument or document furnished pursuant thereto; and (v) attaches the Note
referred to in Section 1 above and requests that Administrative Agent exchange
such Note for a new Note dated [____________], in the principal amount of
$[_____________] payable to the order of the Assignee[, and a new Note dated in
the principal amount of $[______________] payable to the order of Assignor].

                                      D-1
<PAGE>

                  3. The Assignee (i) confirms that it has received a copy of
the Agreement, together with copies of the financial statements referred to in
Section 7.01 thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Acceptance (ii) agrees that it will, independently and without
reliance upon Administrative Agent, the Assignor 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
the Agreement or any other Loan Document; (iii) appoints and authorizes
Administrative Agent to take such action as agent on its behalf and to exercise
such powers under the Agreement and any other Loan Document as are delegated to
Administrative Agent by the terms thereof, together with such powers as are
reasonably incidental thereto; (iv) agrees that it will perform in accordance
with their terms all of the obligations which by the terms of the Agreement or
any other Loan Document are required to be performed by it as a Bank; (v)
specifies as its Lending Office (and address for notices) the office set forth
beneath its name on the signature pages hereof; (vi) attaches the forms
prescribed by the Internal Revenue Service of the United States certifying as to
the Assignee's status for purposes of determining exemption from United States
withholding taxes with respect to all payments to be made to the Assignee under
the Agreement and Notes or such other documents as are necessary to indicate
that all such payments are subject to such rates at a rate reduced by an
applicable tax treaty, and (vii) represents that it is an Eligible Assignee.

                  4. The effective date for this Assignment and Acceptance shall
be [___________________] ("Effective Date"), and following the execution of this
Assignment and Acceptance, Administrative Agent will record it in its records of
the transactions under the Agreement.

                  5. Upon such recording, from and after the Effective Date,
Administrative Agent shall make all payments under the Agreement and the Notes
in respect of the interest assigned hereby (including all payments of principal,
interest, and fees) to the Assignee. The Assignor and Assignee shall make all
appropriate adjustments in payments under the Agreement and the Notes for
periods prior to the Effective Date directly between themselves.

                  6. This Assignment and Acceptance shall be governed by, and
construed and enforced in accordance with, the laws of the State of New York.

                  The parties hereto have caused this Assignment and Acceptance
to be duly executed as of the date first above written.

                                      D-2
<PAGE>

                                  [ASSIGNOR]

                                  By:____________________________________

                                  Name:__________________________________

                                  Title:_________________________________

                                  Address:_______________________________

                                  _______________________________________

                                  _______________________________________

                                  Attention:_____________________________

                                  Telecopy No:___________________________

                                  [ASSIGNEE]

                                  By:____________________________________

                                  Name:__________________________________

                                  Title:_________________________________

                                  Lending Office:

                                  Address:_______________________________

                                  _______________________________________

                                  _______________________________________

                                  Attention:_____________________________

                                  Telecopy No:___________________________

                                  FORTIS CAPITAL CORP., as Administrative Agent

                                  By:____________________________________

                                  Name:__________________________________

                                  Title:_________________________________

                                      D-3
<PAGE>

                                    EXHIBIT E

                                     FORM OF
                    BORROWING BASE COLLATERAL POSITION REPORT

                                     [Date]
Fortis Capital Corp.                                  BNP Paribas
100 Crescent Court                                    787 Seventh Avenue
Suite 1777                                            New York, NY 10019
Dallas, TX 75201                                      Attention: Edward Chin
Attention: Marla Jennings                             Telephone:  (212) 841-2020
Telephone:  (214) 953-9314                            Facsimile:  (212) 841-2536
Facsimile:  (214) 969-9332

         Re:      Uncommitted Amended and Restated Credit Agreement, dated to be
                  effective as of July 1, 2002 (as amended or supplemented from
                  time to time, the "Agreement"), by and among Woodward
                  Marketing, L.L.C. (the "Borrower"), the banks that from time
                  to time are parties thereto, Fortis Capital Corp., as
                  Administrative Agent, and BNP Paribas, as Documentation Agent

Ladies and Gentlemen:

                  The Borrower, acting through its duly authorized Responsible
Officer (as that term is defined in the Agreement), deliver the attached report
to the Banks and certify to each of the Banks that it is in compliance with the
Agreement. Further, the undersigned hereby certifies that the Net Position has
at no time exceeded the limitations set forth in Section 8.11 of the Agreement
and that the undersigned has no knowledge of any Defaults or Events of Default
under the Agreement which exist as of the date of this letter.

                  The undersigned also certifies that the amounts set forth on
the attached report constitute all Collateral which has been or is being used in
determining availability for an advance or letter of credit issued under the
Borrowing Base Line as of the preceding date.

                  This certificate and attached reports are submitted pursuant
to Section 7.02(b) of the Agreement. Capitalized terms used herein and in the
attached reports have the meanings specified in the Agreement.

                                              Very truly yours,

                                              WOODWARD MARKETING, L.L.C.,

                                              By:
                                                    ----------------------------
                                              Name:
                                                    ----------------------------
                                              Title:
                                                    ----------------------------

                                      E-1
<PAGE>

                           WOODWARD MARKETING, L.L.C.,
                    BORROWING BASE COLLATERAL POSITION REPORT
                                  AS OF [DATE]

                  In my capacity as Responsible Officer for Woodward Marketing,
L.L.C., I hereby certify that as of the date written above, the amounts
indicated below were accurate and true as of the date of preparation. I also
certify that the net long or short position has not exceeded the limitations set
forth in Section 8.11 of the Credit Agreement.

I.       COLLATERAL
<TABLE>
<CAPTION>
<S>                                                                 <C>          <C>             <C>
         A.   Cash Collateral                                       $______      100%            $______
         B.   Equity in Eligible Broker
              accounts                                              $______      90%             $______
         C.   Tier I Accounts                                       $______      90%             $______
         D.   Tier II Accounts                                      $______      85%             $______
         E.   Tier I Unbilled Accounts                              $______      85%             $______
         F.   Tier II Unbilled Accounts                             $______      80%             $______
         G.   Eligible Inventory                                    $______      80%             $______
         H.   Eligible Exchange Receivables                         $______      80%             $______
         I.   Undelivered Product Value                             $______      80%             $______
         J.   Realizable Unrealized Profits, up to a maximum
              amount of $50,000,000; less                           $______      70%             $______
         K.   First purchaser liability; less                       $(_____)     100%            $(_____)
         L.   Mark-to-Market amounts owed under Commodity Swap
              Contracts to BNP Paribas; less                        $(_____)     125%            $(_____)
         M.   Unrealized Mark-to-Market Losses                      $(_____)     100%            $(_____)

         TOTAL COLLATERAL                                           $
                                                                     ===========           ===    ============
         BORROWING BASE SUB-CAP                                                                  $
                                                                     -----------           ---
                                                                                                  ------------
         BORROWING BASE ADVANCE CAP                                                              $
                                                                                                  ------------

                                                                                                  ------------
                                                                                                  ------------
II.      BANK OUTSTANDINGS                                                                       $
                                                                                                  ------------
         A.   Loans from the Banks                                                               $
                                                                                                  ------------
         B.   L/C's from the Banks                                                               $
                                                                                                  ------------

                                                                                                  ------------
TOTAL OUTSTANDINGS UNDER BORROWING BASE LINE
                                                                                                  ------------
III.     EXCESS/(DEFICIT) (I-II)
                                                                                                  ------------
IV.      NET SHORT OR LONG POSITION ___________ MMBTUS                                           $
                                                                                                  ------------
</TABLE>

Attached hereto are (i) an aging report, (ii) a schedule of netted qualified
exchange balances, (iii) a schedule of qualified inventory and (iv) a schedule
of all contras applied against (i), (ii), and (iii).

                                      E-2
<PAGE>

                                        By: ____________________________________
                                                   Responsible Officer

                                      E-3
<PAGE>

                                    EXHIBIT F

                 FORM OF NET POSITION REPORT AND EXPOSURE REPORT

                                     [Date]

Fortis Capital Corp.                                  BNP Paribas
100 Crescent Court                                    787 Seventh Avenue
Suite 1777                                            New York, NY 10019
Dallas, TX 75201                                      Attention: Edward Chin
Attention: Marla Jennings                             Telephone: (212) 841-2020
Telephone:  (214) 953-9314                            Facsimile:  (212) 841-2536
Facsimile:  (214) 969-9332

         Re:      Net Positions

                  In my capacity as Responsible Officer of Woodward Marketing,
L.L.C., I hereby certify to you that as of the date written above, such
company's aggregate net positions are as follows:
                                                                      MMBTUS of
                                                                     Natural Gas
                                                                     -----------
        Long                                                            _____
        (Short)                                                         _____

        Net Position                                                    _____

                  To the best of my knowledge, these net positions have at no
time exceeded the limitations set forth in Section 8.11 of that certain
Uncommitted Amended and Restated Credit Agreement, dated to be effective as of
July 1, 2002, as amended or supplemented from time to time, by and among
Woodward Marketing, L.L.C., the banks that from time to time are parties
thereto, Fortis Capital Corp., as Administrative Agent, and BNP Paribas, as
Documentation Agent.

                  Furthermore, at no time has the sum of the following:

            (a) 25% of the Borrower's Net Position Value,   $_____________, plus

            (b) Borrower's Transportation and Storage
         Exposure,                                          $_____________, plus

            (c) Borrower's Below Index Sales Exposure,      $_____________
         exceeded 33% of Borrower's Net Working Capital,

            where,

                                      F-1
<PAGE>

                  "Net Position Value" means Borrower's Net Position valued at
$3.00/MMBTU.

                  "Below Index Sales Exposure" means (the maximum volume of gas
required to be sold at below index prices multiplied by the discount from
index), minus (the net positive value of all hedge contracts related to the
utilization of the related storage & transportation assets).

                  "Transportation and Storage Exposure" means the aggregate
contractual cost of transportation & storage contracts for a term of in excess
of 3 months.

                                          Very truly yours,

                                          WOODWARD MARKETING, L.L.C.,

                                          By: __________________________________
                                              Name: ____________________________
                                              Title: ___________________________

Date:_______

                                      F-2
<PAGE>

                                    EXHIBIT G

                             SUBORDINATION AGREEMENT

                  THIS SUBORDINATION AGREEMENT (this "Agreement") is made as of
the _____ day of __________, 2002, by and between FORTIS CAPITAL CORP. a
Connecticut Corporation ("Administrative Agent"), as Administrative Agent for
the ratable benefit of the Banks (hereinafter defined),
___________________________ (the Subordinated Creditor") and acknowledged by
WOODWARD MARKETING, L.L.C., a Delaware limited liability company ("Borrower").

                                    RECITALS

                  WHEREAS, Administrative Agent and the Banks have made, or in
the future may make, credit accommodations available to Borrower, pursuant to
the terms and provisions of that certain Uncommitted Amended and Restated Credit
Agreement dated to be effective as of July 1, 2002 ("Credit Agreement") among
Administrative Agent, the Borrower and the banks and financial institutions from
time to time party thereto (collectively, the "Banks"); and

                  WHEREAS, Subordinated Creditor has made, or in the future may
make, credit accommodations available to Borrower; and

                  WHEREAS, in order to induce Administrative Agent to consider
making the credit accommodations described above available to Borrower in the
future, Subordinated Creditor has agreed to subordinate certain of its rights
and claims now existing or hereafter arising against Borrower to the rights and
claims of Administrative Agent now existing or hereafter arising against
Borrower, all in accordance with the terms and provisions of this Agreement; and

                  WHEREAS, the parties hereto are entering into this Agreement
in order to set forth their agreements as to payment of the Senior Indebtedness
(hereinafter defined) and the Junior Indebtedness (hereinafter defined) and
their agreements as to certain other matters including but not limited to lien
priorities.

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

                                    AGREEMENT

                              ARTICLE I DEFINITIONS

                  As used in this Agreement, the terms defined above shall have
their respective meanings set forth above and the following terms shall have the
following meanings:

                  "Collateral" shall mean any and all property which now
constitutes or hereafter will constitute collateral or other security for
payment of the Senior Indebtedness pursuant to the Senior Documents or
otherwise.

                                      G-1
<PAGE>

                  "Default" shall have the meaning set forth in the Credit
Agreement.

                  "Distribution" by any Person shall mean (a) with respect to
any stock issued by such Person, the retirement, redemption, purchase or other
acquisition for value of any such stock, (b) the declaration or payment of any
dividend or other distribution on or with respect to any such stock, (c) any
loan or advance by such Person to, or other investment by such Person in, the
holder of any such stock, and (d) any other payment (other than ordinary
salaries to employees or advances made in the ordinary course of business to
employees for travel or other expenses incurred in the ordinary course of
business) by such Person to or for the benefit of the holder of any such stock.

                  "Event of Default" shall have the meaning set forth in the
Credit Agreement.

                  "Federal Bankruptcy Code" shall have the meaning set forth in
Article VIII of this Agreement.

                  "Junior Creditor" shall mean the Subordinated Creditor and its
successors and assigns.

                  "Junior Documents" shall mean any and all agreements,
documents and instruments evidencing, governing or executed or delivered in
connection with the Junior Indebtedness.

                  "Junior Indebtedness" shall mean any and all indebtedness,
obligations and liabilities of every kind and character of Borrower now or
hereafter owing to any party to this Agreement other than Senior Creditor,
including, without limitation, the indebtedness evidenced and to be evidenced by
the Junior Documents, whether such indebtedness, obligations and liabilities are
direct or indirect, primary or secondary, joint, several or joint and several,
fixed or contingent and whether incurred by Borrower as maker, endorser,
guarantor or otherwise.

                  "Permitted Payments shall have the meaning set forth in
Article IV of this Agreement.

                  "Person" shall mean and include an individual, a partnership,
a corporation, a business trust, a joint stock company, a trust, an
unincorporated association, a joint venture or other entity or a governmental
authority.

                  "Proceeds" shall have the meaning assigned to it under the
Uniform Commercial Code, shall also include "products" (as defined in the
Uniform Commercial Code), and, in any event, shall include, but not be limited
to (a) any and all proceeds of any insurance, indemnity, warranty, letter of
credit or guaranty or collateral security payable to any grantor from time to
time with respect to any of the Collateral, (b) any and all payments (in any
form whatsoever) made or due and payable to the owner of the Collateral from
time to time in connection with any requisition, confiscation, condemnation,
seizure or forfeiture of all or any part of the Collateral by any governmental
body, authority, bureau or agency (or any Person acting under color of
governmental authority) and (c) any and all other amounts from time to time paid
or payable under or in connection with any of the Collateral.

                                       G-2
<PAGE>

                  "Senior Creditor" shall mean Administrative Agent and its
successors and assigns.

                  "Senior Documents" shall mean any and all agreements,
documents and instruments evidencing, governing or executed or delivered in
connection with the Senior Indebtedness or the Senior Creditor's interests in
the Collateral, including, without limitation, the Credit Agreement.

                  "Senior Indebtedness" shall mean any and all indebtedness,
obligations and liabilities of every kind and character of Borrower now or
hereafter owing to Senior Creditor, whether such indebtedness, obligations and
liabilities are direct or indirect, primary or secondary, joint, several or
joint and several, fixed or contingent and whether incurred by Borrower as
maker, endorser, guarantor or otherwise, including, without limitation, any and
all indebtedness, obligations and liabilities of Borrower now or hereafter owing
to Senior Creditor pursuant to or evidenced by the Senior Documents.

                         ARTICLE II RIGHTS IN COLLATERAL

                  2.1 Priorities Regarding Collateral. The Junior Creditor
covenants and agrees that it will not take or hold any liens or security
interests on any property of Borrower. If for any reason, however, the Junior
Creditor does obtain a lien or security interest in the Collateral, any and
every lien and security interest in the Collateral in favor of or held for the
benefit of the Senior Creditor has and shall have priority over any lien or
security interest that Junior Creditor has or might have or acquire in the
Collateral notwithstanding any statement or provision contained in the Junior
Documents or otherwise to the contrary and irrespective of the time or order of
filing or recording of financing statements, deeds of trust, mortgages or other
notices of security interests, liens or assignments granted pursuant thereto,
and irrespective of anything contained in any filing or agreement to which any
party hereto or its respective successors and assigns may now or hereafter be a
party, and irrespective of the ordinary rules for determining priorities under
the Uniform Commercial Code or under any other law governing the relative
priorities of secured creditors.

                  2.2 Management of Collateral. Senior Creditor shall have the
exclusive right to manage, perform and enforce the terms of the Senior Documents
with respect to the Collateral, to exercise and enforce all privileges and
rights thereunder according to its discretion and the exercise of its business
judgment including, but not limited to, the exclusive right to take or retake
possession of the Collateral and to hold, prepare for sale, process, sell,
lease, dispose of, or liquidate the Collateral, pursuant to a foreclosure or
otherwise. Notwithstanding any rights or remedies available to the Junior
Creditor under applicable law or under any document or instrument evidencing,
securing or otherwise executed in connection with the incurrence of the
obligations contemplated by the Junior Documents, Junior Creditor shall not be
permitted to foreclose upon its security interest in any of the Collateral, or
to exercise similar remedies with respect thereto, so long as any of the Senior
Indebtedness shall continue to exist, and only the Senior Creditor shall have
the right to restrict or permit, or approve or disapprove, the sale, transfer or
other disposition of Collateral. Junior Creditor will not in any manner
interfere with Senior Creditor's security interests in the Collateral unless and
until Borrower has satisfied in full the Senior Indebtedness and Senior Creditor
has given Junior Creditor written notice thereof.

                                      G-3
<PAGE>

The Junior Creditor waives notice of, and agrees not to challenge the method,
manner, time, place or terms, of any disposition of the Collateral by Senior
Creditor. Accordingly, should Senior Creditor elect to exercise its rights and
remedies with respect to any of the Collateral, Senior Creditor may proceed to
do so without regard to any interest of the Junior Creditor, and the Junior
Creditor waives any claims that it may have against Senior Creditor for any
disposition of the Collateral. The Junior Creditor agrees, whether or not a
default has occurred in the payment of any indebtedness or the performance of
any other obligations to it, that any liens on and security interests in the
Collateral or any portion thereof that it might have or acquire shall
automatically be fully released ipso facto as to all indebtedness and other
obligations secured thereby owing to Junior Creditor if and when Senior Creditor
releases its lien in and security interest on such Collateral in the event of
any sale, disposition or other realization by Senior Creditor (or any agent
therefor) upon such Collateral.

                              ARTICLE III PROCEEDS

                  3.1 Distribution of Proceeds of Collateral. At any time during
which all or any part of the Senior Indebtedness remains outstanding, and
whether or not the same is then due and payable, the Proceeds of any sale,
disposition or other realization by Senior Creditor (or any agent therefor) upon
all or any part of the Collateral shall be applied first to the payment in full
of all Senior Indebtedness in such order as Senior Creditor shall determine in
its sole discretion.

                  3.2 Contingent Obligations. For purposes of distributing the
Proceeds of Collateral pursuant to this Article III, the portion of Senior
Indebtedness consisting of loans or advances not yet made by Senior Creditor to
Borrower under the Senior Documents (including, but not limited to, amounts with
respect to letters of credit outstanding and reimbursement for fees, costs and
expenses) shall be considered Senior Indebtedness then outstanding, and the
Senior Creditor shall have the right to retain, in a cash collateral account,
cash collateral equal to the amount thereof which Senior Creditor determines, in
its sole good faith discretion, may arise or exist from time to time.

                  3.3 Holding of Proceeds in Trust. Except as provided for in
Article IV of this Agreement, in the event the Junior Creditor receives Proceeds
of the Collateral, Junior Creditor shall be deemed to hold all of such Proceeds
in trust for the benefit of Senior Creditor until the proper application thereof
in accordance with Section 3.1 hereof. The Junior Creditor shall not seek to
challenge the validity, enforceability, priority or perfection of any of the
Senior Documents if the purpose or effect thereof would in any manner defeat or
delay the distribution of the Proceeds of any Collateral in the manner set forth
in Section 3.1 hereof.

                            ARTICLE IV SUBORDINATION

                  The Junior Creditor covenants and agrees that the Junior
Indebtedness, howsoever evidenced and whether now existing or hereafter
incurred, shall be subordinate and junior in right of payment, to the extent and
in the manner hereinafter set forth, to all Senior Indebtedness:

                  (a) The holder of the Senior Indebtedness shall first be
finally and irrevocably paid in cash an aggregate amount equal to the principal
thereof and termination fees, if any, interest at the time due thereon, and all
other costs, fees, expenses and/or obligations now or

                                      G-4
<PAGE>

hereafter owing thereunder, before any payment or Distribution of any character,
whether in cash, securities or other property, shall be made on account of the
Junior Indebtedness or otherwise to or for the benefit of Junior Creditor; and
any payment or Distribution of any character, whether in cash, securities or
other property, which would otherwise, but for the provisions of this Article
IV, be payable or deliverable in respect of the Junior Indebtedness or otherwise
shall be paid or delivered directly to the holder of the Senior Indebtedness (or
its duly authorized representatives), until all the Senior Indebtedness shall
have been paid in full.

                  (b) Notwithstanding the provisions of subparagraph (a) of this
Article IV, Borrower may (i) pay interest on the unpaid principal balance of the
Junior Indebtedness on a monthly basis in arrears and make both scheduled
payments and prepayments of principal on the terms and conditions set forth in
the Junior Documents and (ii) make Distributions to Atmos Energy Marketing, LLC,
a Delaware limited liability company (the "Permitted Payments"); provided,
however, that as a condition precedent to Borrower's right to make (and the
Junior Creditor's rights to receive) any and all such Permitted Payments, there
shall not have occurred or then exist a Default or Event of Default under any of
the Senior Indebtedness or any of the Senior Documents, or an event or condition
which with notice, lapse of time or the making of such payment or Distribution
would constitute a Default or Event of Default under any of the foregoing.

                  (c) The Junior Creditor agrees to promptly notify the Senior
Creditor in writing of any default or event of default on any Junior
Indebtedness or otherwise or under any of the Junior Documents and further
agrees not to exercise any right or remedy or take any enforcement action with
respect to any default or event of default on any of the Junior Indebtedness or
otherwise or under any of the Junior Documents until such time as the Senior
Indebtedness has been paid in full. Without limiting any of the foregoing, any
failure of Borrower to perform any of its obligations to Junior Creditor as a
result of any of the prohibitions, restrictions or limitations set forth in this
Agreement shall not constitute the basis for a default or event of default on
any Junior Indebtedness or under any Junior Documents.

                  (d) No reimbursement, payment, direct or indirect, or
disbursement of other property or assets of Borrower shall be made by Borrower
on account of the Junior Indebtedness or otherwise or received, accepted,
retained or applied by the Junior Creditor (except for the account and benefit
of Senior Creditor, which shall be held in trust for Senior Creditor or except
for Permitted Payments as allowed in subparagraph (b) of this Article IV) until
such time as the Senior Indebtedness has been finally and irrevocably paid in
full in cash.

                  (e) Without affecting Junior Creditor's obligations set forth
in this Agreement not to exercise any remedy as set forth in this Agreement, in
the event that the Junior Creditor receives any payment of any character,
whether in cash, securities, or other properties, payable or deliverable in
respect of the Junior Indebtedness and (i) such payment would cause an event or
condition to occur which, with notice, lapse of time, or both, would cause a
Default or an Event of Default to occur under the Senior Documents; or (ii) such
payment is made after a Default or an Event of Default has occurred under the
Senior Documents; or (iii) such payment is made at a time that the management of
Borrower knew or reasonably should have known that a Default or an Event of
Default had occurred under the Senior Documents, or that such payment could
reasonably be expected to cause a Default or an Event of Default to occur under
the Senior

                                      G-5
<PAGE>

Documents, then such cash, securities or other properties shall be held in trust
for the benefit of the holder of the Senior Indebtedness and shall be paid or
delivered to the holder of the Senior Indebtedness (or its authorized
representatives), in the proportions in which it holds same, until all the
Senior Indebtedness shall have been paid in full.

                  (f) The provisions of this Agreement are and are intended
solely for the purpose of defining the relative rights of the holder of the
Junior Indebtedness, on the one hand, and the holder of the Senior Indebtedness
on the other hand. Nothing contained in this Agreement is intended to or shall
impair, as between Borrower and its creditors other than the holder of the
Senior Indebtedness and the holder of the Junior Indebtedness, the obligations
of Borrower which are absolute and unconditional, to pay to the holder of the
Junior Indebtedness the principal thereof and interest thereon as and when the
same shall become due and payable in accordance with its terms, or is intended
to or shall affect the relative rights against Borrower of the holder of the
Senior Indebtedness.

                  (g) No right of any present or future holder of any of the
Senior Indebtedness to enforce the subordination as herein provided shall at any
time in any way be prejudiced or impaired by any act or failure to act on the
part of Borrower or by any act in good faith or failure to act in good faith by
any such holder, or by any noncompliance by Borrower with the covenants,
agreements and conditions of the Junior Indebtedness, regardless of any
knowledge thereof any such holder may have or be otherwise charged with.

                  (h) Senior Creditor shall have no obligation to preserve the
rights of the Collateral against any prior parties or to marshal any of the
Collateral for the benefit of any Person.

                    ARTICLE V BENEFIT OF AGREEMENT; AMENDMENT

                  This Agreement shall constitute a continuing offer to all
persons who, in reliance upon such provisions, become a Senior Creditor, and
such provisions are made for the benefit of each Senior Creditor and each of
them may enforce such provisions. The Junior Creditor agrees not to assign or
transfer, at any time this Agreement remains in effect, any rights, claim or
interest of any kind in or to any Junior Indebtedness without first notifying
Senior Creditor and making such assignment expressly subject to this Agreement.
The provisions of the Junior Documents as in effect on the date hereof may not
be amended or modified in any respect without the prior written consent of
Senior Creditor.

                          ARTICLE VI FURTHER ASSURANCES
Each of the parties hereto hereby agrees to promptly execute and deliver to the
other parties hereto any and all such further instruments and documents and take
such further action as such other parties may reasonably request in order to
fully effect the purposes of this Agreement.

                   ARTICLE VII REPRESENTATIONS AND WARRANTIES

                  7.1 Senior Creditor and Junior Creditor. Each of the parties
hereto hereby represents and warrants to the other party hereto that:

                                      G-6
<PAGE>

                  (a) such party has full power, authority and legal right to
execute, deliver and perform this Agreement, and has taken all necessary
corporate action to authorize the execution, delivery and performance of this
Agreement; and

                  (b) this Agreement constitutes a legal, valid and binding
obligation of such party enforceable against it in accordance with its terms
except as enforceability may be limited by applicable bankruptcy, insolvency,
moratorium or other similar laws affecting creditors rights generally and except
as enforceability may be limited by general principles of equity (whether
considered in a suit at law or in equity).

                             ARTICLE VIII BANKRUPTCY

                  The Junior Creditor agrees not to commence, or to join with
any other creditor in commencing, any case under Title 11 of the United States
Code, as amended and/or superseded (the "Federal Bankruptcy Code") by or against
Borrower or any of its property without the prior written consent of Senior
Creditor. The provisions of this Agreement shall continue in full force and
effect, notwithstanding the commencement of a case under the Federal Bankruptcy
Code by or against Borrower. In furtherance of the foregoing, if Junior Creditor
receives any property of, or payments from Borrower after the commencement of
such a case on account of a secured claim which is subordinated by the terms of
this Agreement (whether as "adequate protection" payments or otherwise), Junior
Creditor shall immediately turn such property or payments over to the Senior
Creditor. To the extent that Junior Creditor has or acquires any rights under
Section 363 or Section 364 of the Federal Bankruptcy Code with respect to the
Collateral, the Junior Creditor hereby agrees not to assert such rights without
the prior written consent of the Senior Creditor. The Junior Creditor hereby
grants to the Senior Creditor the right, but Senior Creditor shall not be
obligated, to file, prove and vote claims on account of the Junior Indebtedness
in any receivership, bankruptcy, or other proceeding under the Federal
Bankruptcy Code commenced by or against Borrower.

                            ARTICLE IX MISCELLANEOUS

                  9.1 No Waiver, Cumulative Remedies. No failure to exercise,
and no delay in exercising on the part of any party hereto, any right, power or
privilege under this Agreement shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, power or privilege under this Agreement
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege. The rights and remedies provided in this Agreement
are cumulative and shall not be exclusive of any rights or remedies provided by
law.

                  9.2 Notices. All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
telegraph, telecopier, or telex) and, unless otherwise expressly provided
herein, shall be deemed to have been duly given or made when delivered by hand,
or five days after being deposited in the mail, postage prepaid, or, in the case
of telegraphic notice, when delivered to the telegraph company, or in the case
of telex notice, when sent, answer back received, addressed as set forth below
or to such address or other address as may be hereafter notified by the
respective parties hereto:

                                      G-7
<PAGE>

                To Senior Creditor:               Fortis Capital Corp.
                                                  100 Crescent Court
                                                  Suite 1777
                                                  Dallas, TX 75201
                                                  Attention: Marla Jennings
                                                  Telephone:  (214) 953-9314
                                                  Facsimile:  (214) 969-9332
                To Junior Creditor:               ______________________________
                                                  ______________________________
                                                  ______________________________
                                                  Attention: ___________________
                                                  Telephone: ___________________
                                                  Facsimile: ___________________

                  9.3 GOVERNING LAW. THIS AGREEMENT SHALL BE INTERPRETED AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE
OF NEW YORK AND SHALL BE BINDING UPON AND INURE TO THE BENEFIT OF THE PARTIES
HERETO AND THEIR RESPECTIVE SUCCESSORS, TRANSFEREES AND ASSIGNS.

                  9.4 Amendments and Waivers. Neither this Agreement nor any of
the terms hereof may be amended, waived, discharged or terminated unless such
amendment, waiver, discharge or termination is in writing signed by each of the
parties hereto.

                  9.5 Exculpation. Neither the Senior Creditor nor its agents
have made to the other parties hereto nor do any of them hereby or otherwise
make any representations or warranties, express or implied, nor do they assume
any liability with respect to (i) obligors under any instruments of guarantee;
(ii) the enforceability, validity, value or collectibility of the Senior
Indebtedness, any Collateral therefor, or any guarantee or security which may
have been granted to any of them in connection with the Senior Documents; or
(iii) Borrower's title or right to transfer any collateral or security. No party
hereto shall be liable to any other party hereto for any action or failure to
act or any error of judgment, negligence, or mistake or oversight whatsoever on
its part or its respective agents, officers, employees or attorneys with respect
to any transaction relating to the Collateral or this Agreement. To the maximum
extent permitted by law, except as otherwise provided herein, the Junior
Creditor waives any claim it might have against Senior Creditor with respect to,
or arising out of, the handling of the Collateral (including, without
limitation, any such claim based upon the timing or method of realizing upon
such Collateral).

                  9.6 Third Party Rights. This Agreement is solely for the
benefit of the parties hereto and their respective successors and assigns, and
no other Person shall have any right, benefit, priority or other interest under,
or because of the existence of, this Agreement.

                  9.7 Termination. This Agreement shall terminate upon the final
and indefeasible payment in full of all the Senior Indebtedness and the
termination of all of the Senior Documents.

                                      G-8
<PAGE>

                  9.8 Counterparts. This Agreement may be executed by one or
more of the parties hereto in any number of separate counterparts, each of which
shall be an original, but all of which shall constitute but one agreement.

                  9.9 Legend. All promissory notes issued in connection with the
Junior Indebtedness shall contain a legend substantially in the form of the
following:

                  "THIS PROMISSORY NOTE, AND PAYMENT AND ENFORCEMENT HEREOF, IS
                  SUBJECT TO THE TERMS AND PROVISIONS OF THAT CERTAIN
                  SUBORDINATION AGREEMENT DATED AS OF ________________, 2002
                  BETWEEN FORTIS CAPITAL CORP., AS ADMINISTRATIVE AGENT, AND
                  _________________________________ AS SUCH SUBORDINATION
                  AGREEMENT MAY BE AMENDED FROM TIME TO TIME."

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                           [EXECUTION PAGES TO FOLLOW]

                                      G-9
<PAGE>

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

                                   SENIOR CREDITOR:

                                   FORTIS CAPITAL CORP., as Administrative Agent

                                   By:  __________________________________
                                   Name:  ________________________________
                                   Title:  _______________________________

                                      G-10
<PAGE>

                                   JUNIOR CREDITOR:

                                   By:  __________________________________
                                   Name:  ________________________________
                                   Title:  _______________________________

                                      G-11
<PAGE>

                  ACKNOWLEDGMENT BY WOODWARD MARKETING, L.L.C.

                  Woodward Marketing, L.L.C. hereby acknowledges receipt of a
copy of the foregoing Subordination Agreement and agrees that, except as
otherwise provided by the foregoing Subordination Agreement, it will not pay any
indebtedness subordinated by the foregoing Subordination Agreement until all the
Senior Indebtedness shall have been paid in full.

                                       WOODWARD MARKETING, L.L.C.,
                                       a Delaware limited liability company

                                       By:  __________________________________
                                       Name:  ________________________________
                                       Title:  _______________________________

                                      G-12
<PAGE>

                                    EXHIBIT H

                        FORM OF NOTICE OF DISAPPROVAL OF
                     FURTHER ADVANCES AND LETTERS OF CREDIT

Fortis Capital Corp.
100 Crescent Court
Suite 1777
Dallas, TX  75201
Attention:  Marla Jennings
Telephone:  (214) 953-9314
Facsimile:  (214) 969-9332

         Re:      Uncommitted Amended and Restated Credit Agreement, dated to be
                  effective as of July 1, 2002 (as amended or supplemented from
                  time to time, the "Agreement"), by and among Woodward
                  Marketing, L.L.C., (the "Borrower"), the banks that from time
                  to time are parties thereto, Fortis Capital Corp., as
                  Administrative Agent, and BNP Paribas, as Documentation Agent

Ladies and Gentlemen:

                  You are hereby notified that the undersigned Bank disapproves
further advances under Article II of the Agreement and further Issuances,
amendments or renewals of Letters of Credit under Article III of the Agreement.

                  The undersigned acknowledges that one or more Banks may
continue to fund advances and issue Letters of Credit under the Agreement in
which case the Conversion to Reduced Funding Banks Date shall occur. Capitalized
terms used herein and in the attached reports have the meanings specified in the
Agreement.

                                               Very truly yours,

                                               NAME OF BANK

                                               By:  ___________________________
                                               Name: _________________________
                                               Title: __________________________
c/c      Woodward Marketing, L.L.C.
         All other Banks

                                       H-1
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               Page

                                                  ARTICLE I

                                                 DEFINITIONS

<S>                                                                                                             <C>
1.01     Certain Defined Terms.  The following terms have the following meanings:.............................   2
1.02     Other Interpretive Provisions........................................................................  25
1.03     Accounting Principles................................................................................  26

                                                  ARTICLE II

                                                 THE CREDITS

2.01     Amounts and Terms of Uncommitted Line................................................................  26
2.02     Loan Accounts........................................................................................  27
2.03     Procedure for Borrowing..............................................................................  28
2.04     Conversion and Continuation Elections................................................................  29
2.05     Optional Prepayments  The Borrower may, at any time or from time to time, upon the Borrower's
         irrevocable written notice to the Administrative Agent received prior to 1:00 p.m.  (New York City
         time) on the date of prepayment, prepay Loans in whole or in part without premium except any amounts
         due by Borrower pursuant to Article IV.  The Administrative Agent will promptly notify each Bank of
         its receipt of any such prepayment, and of such Bank's Pro Rata Share of such prepayment.............  30
2.06     Mandatory Prepayments of Loans; Mandatory Commitment Reductions.  If on any date the Effective
         Amount of L/C Obligations exceeds the L/C Cap, the Borrower shall Cash Collateralize on such date
         the outstanding Letters of Credit in an amount equal to the excess above any such cap.  If on any
         date after giving effect to any Cash Collateralization made on such date pursuant to the preceding
         sentence, the Effective Amount of all Revolving Loans then outstanding plus the Effective Amount of
         all L/C Obligations exceeds the lesser of (a) the Collateral Position or (b) the total Uncommitted
         Line, or if the Effective Amount of all Revolving Loans under the Borrowing Base Line then
         outstanding, plus the Effective Amount of all L/C Obligations under such Line exceed the Borrowing
         Base Advance Cap, the Borrower shall immediately, and without notice or demand, prepay the
         outstanding principal amount of the Revolving Loans and L/C Advances by an amount equal to the
         applicable excess....................................................................................  30
2.07     Repayment.  The Borrower shall repay the principal amount of each Revolving Loan to the
         Administrative Agent on behalf of the Banks, on the Advance Maturity Date for such Loan. All
         amounts owing a Swap Bank under any Swap Contract, to the extent such amounts have not been repaid
         from the proceeds of a Revolving Loan, shall be paid on demand, or if no demand is made, on the
         first (1st) Business Day after the Borrower receives notice that such amount was advanced by or
         becomes owing to a Swap Bank.........................................................................  30
2.08     Interest.............................................................................................  30
</TABLE>

                                         -i-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                            <C>
2.09     Fees.  In addition to certain fees described in Section 3.08, the Borrower shall pay to the
         Administrative Agent, for the account of each Bank, fees in accordance with a separate letter
         agreement between the Agents, the Banks and the Borrower. The Borrower shall also pay to the
         Agents, for their own accounts, fees in accordance with a separate letter agreement between the
         Agents and the Borrower...............................................................................  32
2.10     Computation of Fees and Interest......................................................................  32
2.11     Payments by the Borrower..............................................................................  32
2.12     Payments by the Banks to the Administrative Agent.  If and to the extent any Bank shall not have
         made its full amount available to the Administrative Agent in immediately available funds and the
         Administrative Agent in such circumstances has made available to the Borrower such amount, that
         Bank shall on the Business Day following such Borrowing Date make such amount available to the
         Administrative Agent, together with interest at the Federal Funds Rate for each day during such
         period. A notice of the Administrative Agent submitted to any Bank with respect to amounts owing
         under this Section 2.12 shall be conclusive, absent manifest error. If such amount is so made
         available, such payment to the Administrative Agent shall constitute such Bank's Loan on the date
         of Borrowing for all purposes of this Agreement. If such amount is not made available to the
         Administrative Agent on the Business Day following the Borrowing Date, the Administrative Agent
         will notify the Borrower of such failure to fund and, upon demand by the Administrative Agent, the
         Borrower shall pay such amount to the Administrative Agent for the Administrative Agent's account,
         together with interest thereon for each day elapsed since the date of such Borrowing, at a rate per
         annum equal to the interest rate applicable at the time to the Loans comprising such Borrowing........  33
2.13     Sharing of Payments, Etc.  If, other than as expressly provided elsewhere herein, any Bank shall
         obtain on account of the Loans made by it any payment (whether voluntary, involuntary, through the
         exercise of any right of set-off, or otherwise) in excess of its Pro Rata Share or Adjusted Pro
         Rata Share, as the case may be at such time (other than payments to BNP Paribas with respect to
         advances made in excess of the Borrowing Base Advance Cap as a result of payment under a Swap
         Contract), such Bank shall immediately (a) notify the Administrative Agent of such fact, and (b)
         purchase from the other Banks such participations in the Loans made by them as shall be necessary
         to cause such purchasing Bank to share the excess payment pro rata with each of them; provided,
         however, that if all or any portion of such excess payment is thereafter recovered from the
         purchasing Bank, such purchase shall to that extent be rescinded and each other Bank shall repay to
         the purchasing Bank the purchase price paid therefor, together with an amount equal to such paying
         Bank's ratable share (according to the proportion of (i) the amount of such paying Bank's required
         repayment to (ii) the total amount so recovered from the purchasing Bank) of any interest or other
         amount paid or payable by the purchasing Bank in respect of the total amount so recovered.  The
         Borrower agrees that any Bank so purchasing a participation from another Bank may, to the fullest
         extent permitted by law, exercise all its rights of payment (including the right of set-off, but
         subject to Section 11.09) with respect to such participation as fully as if such Bank were the
         direct creditor of the Borrower in the amount of such participation. the Administrative Agent will
         keep records (which shall be conclusive and binding in the absence of manifest error) of
         participations purchased under this Section and will in each case notify the Banks following any
         such purchases or repayments..........................................................................  33
</TABLE>

                                      -ii-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                             <C>
2.14     The Election of Approving Banks to Continue Funding.  If one or more Banks (the "Declining Bank" or
         "Declining Banks") provides the Administrative Agent with, and the Administrative Agent has
         actually received, a written notice in the form of Exhibit H for reasons other than a Default and
         the other Bank or Banks do approve further Revolving Loans (including the conversion and extension
         of such Revolving Loans) or the further issuances of, extensions of, the automatic renewal of or
         amendments to Letters of Credit, the Administrative Agent shall notify the Banks by 6:00 p.m. (New
         York City time) that same day. If the Bank or Banks which are not the Declining Banks desire, they
         may (on a pro rata basis among the Banks that have elected to continue funding) make the full or
         partial amount of such requested Revolving Loan or issue or amend the requested Letter of Credit
         irrespective of the Declining Banks' disapproval (in such case, the Banks that elect to continue
         funding shall be referred to as the "Approving Banks"). In such event, from such date (the
         "Conversion to Reduced Funding Banks Date") forward (a) all subsequent Revolving Loans and
         Issuances of Letters of Credit or Amendments to Letters of Credit that increase the face amount of
         a Letter of Credit or extend the term of a Letter of Credit shall be made unilaterally by the
         Approving Banks and no Letter of Credit thereafter Issued shall be participated in by the Declining
         Banks, (b) all Banks' interests in the Collateral and loan management decisions shall be pro-rata
         based on each Bank's total Effective Amount of Revolving Loans, plus the Effective Amounts of such
         Bank's L/C Obligations from time to time, and (c) the Approving Banks' Pro Rata Share of the
         Uncommitted Line Portion shall be increased on the basis of each such advance and Issuance of a
         Letter of Credit made by such approving Bank..........................................................  33
2.15     Payments from Guarantor and Liquidation of Collateral.  Notwithstanding anything to the contrary
         contained herein, in the event repayment is made to the Banks by Guarantor or pursuant to a
         liquidation of Collateral, such repayment shall be shared by the Banks on the basis of each Bank's
         then existing Adjusted Pro Rata Share rather than each Bank's Pro Rata Share..........................  34

                                                ARTICLE III

                                           THE LETTERS OF CREDIT

3.01     The Letter of Credit Lines............................................................................  35
3.02     Issuance, Amendment and Renewal of Letters of Credit..................................................  36
3.03     Risk Participations, Drawings, Reducing Letters of Credit and Reimbursements..........................  39
3.04     Repayment of Participations...........................................................................  41
3.05     Role of the Issuing Banks.............................................................................  41
3.06     Obligations Absolute.  The Obligations of the Borrower under this Agreement and any L/C-Related
         Document to reimburse an Issuing Bank for a drawing under a Letter of Credit or for a Reducing L/C
         Borrowing, and to repay any L/C Borrowing and any drawing under a Letter of Credit or Reducing L/C
         Borrowing converted into Revolving Loans, shall be unconditional and irrevocable, and shall be paid
         strictly in accordance with the terms of this Agreement and each such other L/C-Related Document
         under all circumstances, including the following:.....................................................  42
</TABLE>

                                     -iii-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                             <C>
3.07     Cash Collateral Pledge.  Upon the request of the Administrative Agent, (i) if an Issuing Bank has
         honored any full or partial drawing request on any Letter of Credit and such drawing has resulted
         in an L/C Borrowing hereunder, or (ii) if, as of the Expiration Date, any Letters of Credit may for
         any reason remain outstanding and partially or wholly undrawn, the Borrower shall immediately Cash
         Collateralize the L/C Obligations in an amount equal to such L/C Obligations.  Upon the occurrence
         of the circumstances described in Section 2.06 requiring the Borrower to Cash Collateralize Letters
         of Credit, then, the Borrower shall immediately Cash Collateralize the L/C Obligations in an amount
         equal to the applicable excess........................................................................  43
3.08     Letter of Credit Fees.................................................................................  44
3.09     Applicability of Uniform Customs and Practice and ISP98.  Unless otherwise expressly agreed by an
         Issuing Bank and the Borrower when a Letter of Credit is Issued (including any such agreement
         applicable to an Existing Letter of Credit), the rules of the Uniform Customs and Practice for
         Documentary Credits, as most recently published by the International Chamber of Commerce (the
         "ICC") at the time of Issuance (including the ICC decision published by the Commission on Banking
         Technique and Practice on April 6, 1998 regarding the European single currency (euro)) shall apply
         to each standby Letter of Credit and documentary Letter of Credit. If Borrower desires to use the
         rules of the "International Standby Practices 1998" published by the Institute of International
         Banking Law & Practice (or such later version thereof as may be in effect at the time of Issuance)
         for standby Letters of Credit, Borrower shall request and note this explicitly on the standby
         Letter of Credit application..........................................................................  44
3.10     Existing Letters of Credit.  Borrower hereby acknowledges and agrees that the Existing Letters of
         Credit listed on Schedule 3.10 hereto shall be deemed to be Letters of Credit Issued under this
         Agreement for all purposes............................................................................  44

                                                 ARTICLE IV

                                   TAXES, YIELD PROTECTION AND ILLEGALITY

4.01     Taxes...................................................................................................  44
4.02     Illegality..............................................................................................  45
4.03     Increased Costs and Reduction of Return.................................................................  46
4.04     Funding Losses.  The Borrower shall reimburse each Bank and hold each Bank harmless from any loss or
         expense which the Bank may sustain or incur as a consequence of:........................................  47
4.05     Inability to Determine Rates.  If the Administrative Agent and the Banks determine that for any
         reason adequate and reasonable means do not exist for determining the Offshore Rate for any
         requested Interest Period with respect to a proposed Offshore Rate Loan, or that the Offshore Rate
         applicable pursuant to Subsection 2.08(a) for any requested Interest Period with respect to a
         proposed Offshore Rate Loan does not adequately and fairly reflect the cost to the Banks of funding
         such Loan, the Administrative Agent will promptly so notify the Borrower and each Bank. Thereafter,
         the obligation of the Banks to make or maintain Offshore Rate Loans, as the case may be, hereunder
         shall be suspended until the Administrative Agent upon the instruction of the Banks revokes such
         notice in writing. Upon receipt of such notice, the Borrower may revoke any Notice of Borrowing or
         Notice of Conversion/Continuation then submitted by it. If the Borrower does not revoke such
         Notice, the Banks shall make, convert or continue the Loans, as proposed by the Borrower, in the
         amount specified in the applicable notice submitted by the Borrower, but such Loans shall be made,
         converted or continued as Base Rate Loans instead of Offshore Rate Loans..............................  47
</TABLE>

                                       -iv-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                             <C>
4.06     Reserves on Offshore Rate Loans.  The Borrower shall pay to each Bank, as long as such Bank shall
         be required under regulations of the FRB to maintain reserves with respect to liabilities or assets
         consisting of or including Eurocurrency funds or deposits (currently known as "Eurocurrency
         liabilities"), additional costs on the unpaid principal amount of each Offshore Rate Loan equal to
         the actual costs of such reserves allocated to such Loan by the Bank (as determined by the Bank in
         good faith, which determination shall be conclusive), payable on each date on which interest is
         payable on such Loan, provided, however, that the Borrower shall have received at least 15 days'
         prior written notice (with a copy to the Administrative Agent) of such additional interest from the
         Bank.  If a Bank fails to give notice 15 days prior to the relevant Interest Payment Date, such
         additional interest shall be payable 15 days from receipt of such notice..............................  48
4.07     Certificates of Banks.  Together with any demand by a Bank for reimbursement or compensation
         pursuant to this Article IV, such Bank shall provide to the Borrower (with a copy to the
         Administrative Agent) a certificate signed by an authorized officer of the Bank (a) describing the
         event giving rise to such demand, and (b) showing the method and detailed calculations (which may
         include any reasonable averaging, attribution or allocation procedures) used by the Bank to
         determine the amount demanded by the Bank.  In calculating the amount of costs, expenses, capital
         requirements or rate of reduction allocable to the Borrower, such Bank shall use such reasonable
         methods as such Bank shall determine. Such calculation and certification shall be conclusive and
         binding on the Borrower in the absence of manifest error..............................................  48
4.08     Substitution of Banks.  Upon the receipt by the Borrower from any Bank (an "Affected Bank") of a
         claim for compensation under Section 4.03, the Borrower may: (a) request the Affected Bank to use
         its best efforts to obtain a replacement bank or financial institution satisfactory to the Borrower
         to acquire and assume all or a ratable part of all of such Affected Bank's Loans and Uncommitted
         Line Portion (a "Replacement Bank"); (b) request one or more of the other Banks to acquire and
         assume all or part of such Affected Bank's Loans and Uncommitted Line Portion; or (c) designate a
         Replacement Bank.  Any such designation of a Replacement Bank under clause (a) or (c) shall be
         subject to the prior written consent of Agents (which consent shall not be unreasonably withheld).....  48
4.09     Survival.  The agreements and Obligations of the Borrower in this Article IV shall survive the
         payment  all other Obligations........................................................................  48

                                                 ARTICLE V

                                               CLOSING ITEMS

5.01     Matters to be Satisfied Upon Execution of Agreement.  At the time the Banks execute this Agreement,
         unless otherwise waived by the Banks, the Documentation Agent shall have received all of the
         following, in form and substance satisfactory to the Documentation Agent, the Administrative Agent,
         and each Bank, and in sufficient copies for each Bank:................................................  48
</TABLE>

                                       -v-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                            <C>

                                                 ARTICLE VI

                                       REPRESENTATIONS AND WARRANTIES

6.01     Existence and Power.  Each of the Borrower, its Subsidiaries and Guarantor:...........................  50
6.02     Authorization; No Contravention.  The execution, delivery and performance by the Borrower and
         Guarantor of each Loan Document to which such Person is party, have been duly authorized, and do
         not and will not:.....................................................................................  50
6.03     Governmental Authorization.  No approval, consent, exemption, authorization, or other action by, or
         notice to, or filing with, any Governmental Authority is necessary or required in connection with the
         execution, delivery or performance by, or enforcement against, the Borrower or any of its
         Subsidiaries or Guarantor, as applicable, of any Loan Document........................................  51
6.04     Binding Effect.  This Agreement and each other Loan Document to which the Borrower or any of its
         Subsidiaries or Guarantor is a party constitute the legal, valid and binding obligations of such
         Person to the extent it is a party thereto, enforceable against such Person in accordance with
         their respective terms, except as enforceability may be limited by applicable bankruptcy,
         insolvency, or similar laws affecting the enforcement of creditors' rights generally or by general
         principles of equity..................................................................................  51
6.05     Litigation.  Except as specifically disclosed in Schedule 6.05, there are no actions, suits or
         proceedings, pending, or to the knowledge of the Borrower, or Guarantor threatened at law, in
         equity, in arbitration or before any Governmental Authority, against the Borrower, or any of its
         Subsidiaries or Guarantor or any of their respective properties which purport to affect or pertain
         to this Agreement or any other Loan Document, or any of the transactions contemplated hereby or
         thereby; and no injunction, writ, temporary restraining order or any order of any nature has been
         issued by any court or other Governmental Authority purporting to enjoin or restrain the execution,
         delivery or performance of this Agreement or any other Loan Document, or directing that the
         transactions provided for herein or therein not be consummated as herein or therein provided..........  51
6.06     No Default.  No Default or Event of Default exists or would result from the incurring of any
         Obligations by the Borrower.  As of the Closing Date, neither the Borrower nor any of its
         Subsidiaries are in default under or with respect to any Contractual Obligation in any respect
         which, individually or together with all such defaults, could reasonably be expected to have a
         Material Adverse Effect...............................................................................  51
6.07     ERISA Compliance.  Except as specifically disclosed in Schedule 6.07:.................................  51
6.08     Use of Proceeds; Margin Regulations.  The proceeds of the Loans are to be used solely for the
         purposes set forth in and permitted by Section 7.12.  Neither the Borrower nor any Subsidiary is
         generally engaged in the business of purchasing or selling Margin Stock or extending credit for the
         purpose of purchasing or carrying Margin Stock........................................................  52
6.09     Title to Properties.  The Borrower and each of its Subsidiaries have good record and marketable
         title in fee simple to, or valid leasehold interests in, all real property necessary or used in the
         ordinary conduct of their respective businesses, except for such defects in title as could not,
         individually or in the aggregate, have a Material Adverse Effect.  As of the Closing Date, the
         property of the Borrower and its Subsidiaries is subject to no Liens, other than Permitted Liens......  52
</TABLE>

                                      -vi-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                            <C>
6.10     Taxes.  The Borrower and its Subsidiaries have filed all Federal and other material tax returns and
         reports required to be filed, and have paid all Federal and other material taxes, assessments, fees
         and other governmental charges shown thereon to be due and payable, and have paid all material
         taxes, assessments, fees and other governmental charges levied or imposed upon them or their
         properties, income or assets as due and payable, except those which are being contested in good
         faith by appropriate proceedings and for which adequate reserves have been provided in accordance
         with GAAP.  There is no proposed tax assessment against the Borrower or any of its Subsidiaries
         that would, if made, have a Material Adverse Effect...................................................  52
6.11     Financial Condition...................................................................................  52
6.12     Environmental Matters.  The Borrower conducts in the ordinary course of business a review of the
         effect of existing Environmental Laws and existing Environmental Claims on its business, operations
         and properties, and as a result thereof the Borrower has reasonably concluded that, except as
         previously specifically disclosed in Schedule 6.12, such Environmental Laws and Environmental
         Claims could not, individually or in the aggregate, reasonably be expected to have a Material
         Adverse Effect........................................................................................  53
6.13     Regulated Entities.  Neither the Borrower, nor any Person controlling the Borrower, or any of its
         Subsidiaries, is an "Investment Company" within the meaning of the Investment Company Act of 1940.
         The Borrower is not subject to regulation under the Public Utility Holding Company Act of 1935, the
         Federal Power Act, the Interstate Commerce Act, any state public utilities code, or any other
         Federal or state statute or regulation limiting its ability to incur Indebtedness.....................  53
6.14     No Burdensome Restrictions.  Neither the Borrower nor any of its Subsidiaries is a party to or
         bound by any Contractual Obligation, or subject to any restriction in any Organization Document, or
         any Requirement of Law, which could reasonably be expected to have a Material Adverse Effect..........  53
6.15     Copyrights, Patents, Trademarks and Licenses, Etc.  To the Borrower's best knowledge, the Borrower
         or its Subsidiaries own or are licensed or otherwise have the right to use all of the patents,
         trademarks, service marks, trade names, copyrights, contractual franchises, authorizations and
         other rights that are reasonably necessary for the operation of their respective businesses,
         without conflict with the rights of any other Person.  To the knowledge of the Borrower, no slogan
         or other advertising device, product, process, method, substance, part or other material now
         employed, or now contemplated to be employed, by the Borrower or any Subsidiary infringes upon any
         rights held by any other Person.  Except as specifically disclosed in Schedule 6.05, no claim or
         litigation regarding any of the foregoing is pending or threatened, and no patent, invention,
         device, application, principle or any statute, law, rule, regulation, standard or code is pending
         or, to the knowledge of the Borrower, proposed........................................................  53
6.16     Subsidiaries.  The Borrower has no Subsidiaries other than those specifically disclosed in part (a)
         of Schedule 6.16 hereto and have no equity investments in any other corporation or entity other
         than those specifically disclosed in part (b) of Schedule 6.16........................................  53
6.17     Insurance.  Except as specifically disclosed in Schedule 6.17, the properties of the Borrower and
         its Subsidiaries are insured with financially sound and reputable insurance companies not
         Affiliates of the Borrower, in such amounts, with such deductibles and covering such risks as are
         customarily carried by companies engaged in similar businesses and owning similar properties in
         localities where the Borrower or such Subsidiary operates.............................................  53
</TABLE>

                                     -vii-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                             <C>
6.18     Full Disclosure.  To the Borrower's best knowledge, none of the representations or warranties made
         by the Borrower or any of its Subsidiaries in the Loan Documents as of the date such
         representations and warranties are made or deemed made, and none of the statements contained in any
         exhibit, report, statement or certificate furnished by or on behalf of the Borrower or any of its
         Subsidiaries in connection with the Loan Documents (including the offering and disclosure materials
         delivered by or on behalf of the Borrower to the Banks prior to the Closing Date), contains any
         untrue statement of a material fact or omits any material fact required to be stated therein or
         necessary to make the statements made therein, in light of the circumstances under which they are
         made, not misleading as of the time when made or delivered............................................  54

                                                ARTICLE VII

                                           AFFIRMATIVE COVENANTS

7.01     Financial Statements.  The Borrower shall deliver to the Banks, in form and detail satisfactory to
         the Banks:............................................................................................  54
7.02     Certificates; Other Information.  The Borrower shall furnish to the Agents and the Banks:.............  55
7.03     Notices.  The Borrower shall promptly notify the Agents and each Bank:................................  55
7.04     Preservation of Corporate Existence, Etc.  The Borrower shall, and shall cause each of its
         Subsidiaries to:......................................................................................  56
7.05     Maintenance of Property.  The Borrower shall maintain, and shall cause each of its Subsidiaries to
         maintain, and preserve all its property which is used or useful in its business in good working
         order and condition, ordinary wear and tear excepted and make all necessary repairs thereto and
         renewals and replacements thereof except in any case where the failure to do so could not
         reasonably be expected to have a Material Adverse Effect..............................................  57
7.06     Insurance.  The Borrower shall maintain, and shall cause each of its Subsidiaries to maintain, with
         financially sound and reputable independent insurers, insurance with respect to its properties and
         business against loss or damage of the kinds customarily insured against by Persons engaged in the
         same or similar business, of such types and in such amounts as are customarily carried under
         similar circumstances by such other Persons, including, without limitation, marine cargo insurance,
         if appropriate. The Administrative Agent, for the benefit of the Banks, shall be named as an
         additional insured and loss payee under all such polices, without liability for premiums or club
         calls.................................................................................................  57
7.07     Payment of Obligations.  The Borrower shall, and shall cause each of its Subsidiaries to, pay and
         discharge as the same shall become due and payable, all their respective obligations and
         liabilities, including:...............................................................................  57
7.08     Compliance with Laws.  The Borrower shall comply, and shall cause each of its Subsidiaries to comply,
         with all Requirements of Law of any Governmental Authority having jurisdiction over it or its
         business (including the Federal Fair Labor Standards Act).............................................  57
</TABLE>

                                     -viii-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                             <C>
7.09     Compliance with ERISA.  The Borrower shall, and shall cause each of its ERISA Affiliates to: (a)
         maintain each Plan in compliance with the applicable provisions of ERISA, the Code and other
         federal or state law; (b) cause each Plan which is qualified under Section 401(a) of the Code to
         maintain such qualification; and (c) make all required contributions to any Plan subject to Section
         412 of the Code.......................................................................................  57
7.10     Inspection of Property and Books and Records.  The Borrower shall maintain and shall cause each of
         its Subsidiaries to maintain proper books of record and account, in which full, true and correct
         entries in conformity with GAAP consistently applied shall be made of all financial transactions
         and matters involving the assets and business of the Borrower and such Subsidiary.  The Borrower
         shall permit, and shall cause each of its Subsidiaries to permit representatives and independent
         contractors of either of the Agents or any Bank to visit and inspect any of their respective
         properties, to examine their respective corporate, financial and operating records, and make copies
         thereof or abstracts therefrom, and to discuss their respective affairs, finances and accounts with
         their respective directors, officers, and independent public accountants, all at the expense of the
         Agent or Bank causing such inspection and at such reasonable times during normal business hours and
         as often as may be reasonably desired, upon reasonable advance notice to the Borrower; provided,
         however, that when an Event of Default exists either of the Agents or any Bank may do any of the
         foregoing at the expense of the Borrower at any time during normal business hours and without
         advance notice........................................................................................  57
7.11     Environmental Laws.  The Borrower shall, and shall cause each of its Subsidiaries to, conduct its
         operations and keep and maintain its property in compliance in all material respects with all
         Environmental Laws....................................................................................  58
7.12     Use of Proceeds.  The Borrower shall use the proceeds of the Loans for the uses described in this
         Agreement and not in contravention of any Requirement of Law or of any Loan Document restrictions on
         use of loan proceeds..................................................................................  58
7.13     Collateral Position Audit.  At such times as Agents deem advisable, the Borrower will allow Agents
         or an entity satisfactory to Agents to conduct a thorough examination of the Collateral, and the
         Borrower will fully cooperate in such examination.  The Borrower will pay the costs and expenses of
         one such examination each calendar year...............................................................  58
7.14     Lock Box.  The Borrower shall (i) maintain a lock box with Bank of America, N.A. (the "Lock Box")
         and shall notify in writing and otherwise take such reasonable steps to ensure that all Account
         Debtors under any of its Accounts forward payment in the form of cash, checks, drafts or other
         similar items of payment directly to such Lock Box and shall provide Banks with reasonable evidence
         of such notification, and (ii) deposit and cause its Subsidiaries to deposit or cause to be
         deposited all payments under such Accounts to the Lock Box.  In the event that any Account Debtor
         does make any payment directly to the Borrower, the Borrower shall promptly deposit such amounts
         into the Lock Box.  The Borrower and each Bank acknowledge and agree that prior to the Activation
         Period, the Borrower may operate and transact business through the Lock Box account in its normal
         fashion, including making withdrawals from the Lock Box account. The Borrower and each Bank further
         acknowledge and agree that during the Activation Period, Bank of America, N.A. shall transfer all
         collected and available balances in the Lock Box to the Bank Blocked Account pursuant to the Three
         Party Agreement.  The Borrower and each Bank acknowledge and agree that the Bank Blocked Account is
         owned by the Collateral Agent for the benefit of the Agents, the Issuing Banks and the Banks and
         the Lock Box is under the dominion and control of the Collateral Agent. The Collateral Agent at any
         time may apply amounts contained in the Bank Blocked Account toward satisfaction of the Obligations...  58
</TABLE>

                                      -ix-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                            <C>
7.15     Financial Covenants.  The Borrower will, at all times, observe the following financial covenants:.....  58
7.16     Separate Operations.  The Borrower will at all times maintain and observe policies and procedures to
         insure that its operations are separate and distinct from the operations of Borrower's Affiliates.....  59

                                                ARTICLE VIII

                                             NEGATIVE COVENANTS

8.01     Limitation on Liens. The Borrower shall not, and shall not suffer or permit any Subsidiary to,
         directly or indirectly, make, create, incur, assume or suffer to exist any Lien upon or with
         respect to any part of its property, whether now owned or hereafter acquired, other than the
         following ("Permitted Liens"):........................................................................  60
8.02     Consolidations and Mergers.  The Borrower shall not, nor shall it suffer or permit any of its
         Subsidiaries to, merge, consolidate with or into, or convey, transfer, lease or otherwise dispose of
         (whether in one transaction or in a series of transactions) all or substantially all of its assets
         (whether now owned or hereafter acquired) to or in favor of any Person................................  61
8.03     Limitation on Indebtedness.  The Borrower shall not suffer or permit any of its Subsidiaries to,
         create, incur, assume, suffer to exist, or otherwise become or remain directly or indirectly liable
         with respect to, any Indebtedness, except:............................................................  61
8.04     Transactions with Affiliates.  The Borrower shall not, and shall not suffer or permit any of its
         Subsidiaries to, enter into any transaction with any Affiliate of the Borrower, except upon fair
         and reasonable terms no less favorable to the Borrower or such Subsidiary than would obtain in a
         comparable arm's-length transaction with a Person not an Affiliate of the Borrower or such
         Subsidiary.  Without limiting the foregoing, all sales of Product by Borrower to, and purchases of
         Product by Borrower from, any Affiliate of Borrower shall be at the market price on the day of
         sale, except for transactions made in connection with Borrower's Index Sales Strategies which
         strategies shall have been approved by the Banks prior to any such transactions.......................  61
8.05     Use of Proceeds.  The Borrower shall not suffer or permit any of its Subsidiaries to, use any
         portion of the Loan proceeds or any Letter of Credit, directly or indirectly, (a) to purchase or
         carry Margin Stock, (b) to repay or otherwise refinance indebtedness of the Borrower or others
         incurred to purchase or carry Margin Stock, (c) to extend credit for the purpose of purchasing or
         carrying any Margin Stock, or (d) to acquire any security in any transaction that is subject to
         Section 13 or 14 of the Exchange Act..................................................................  62
8.06     Contingent Obligations.  The Borrower shall not suffer or permit any of its Subsidiaries to, create,
         incur, assume or suffer to exist any Contingent Obligations except:...................................  62
8.07     Restricted Payments.  The Borrower shall not suffer or permit any of its Subsidiaries to, directly
         or indirectly declare or make, any distribution of income or capital on account of any membership
         interest of the Borrower now or hereafter in existence ("Distributions"), or set aside or otherwise
         deposit or invest any sums for such purpose, except Distributions to its members, so long as no
         Default or Event of Default has occurred or would result therefrom....................................  62
</TABLE>

                                      -x-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                             <C>
8.08     ERISA.  The Borrower shall not, nor suffer or permit any of its ERISA Affiliates to:  (a) engage in
         a prohibited transaction or violation of the fiduciary responsibility rules with respect to any
         Plan; or (b) engage in a transaction that could be subject to Section 4069 or 4212(c) of ERISA........  62
8.09     Change in Business.  The Borrower shall not, nor suffer or permit any of its Subsidiaries to,
         engage in any line of business different from the line of business carried on by the Borrower and
         its Subsidiaries on the date hereof...................................................................  62
8.10     Accounting Changes.  The Borrower shall not, nor suffer or permit any of its Subsidiaries to, make
         any significant change in accounting treatment or reporting practices, except as required by GAAP,
         or change the fiscal year of the Borrower or of any Subsidiary........................................  62
8.11     Net Position.  At no time will the Borrower allow its Net Position to exceed 5,000,000 MMBTUS of
         natural gas.  At no time will the Borrower allow the sum of the following:  (a) 25% of the
         Borrower's Net Position Value, plus (b) Borrower's Transportation and Storage Exposure, plus (c)
         Borrower's Below Index Sales Exposure, to exceed 33% of Borrower's Net Working Capital at such
         time, where,..........................................................................................  62
8.12     Loans and Investments.  The Borrower shall not purchase or acquire, or suffer or permit any
         Subsidiary to purchase or acquire, or make any commitment therefor, any capital stock, equity
         interest, or any obligations or other securities of, or any interest in, any Person, or make or
         commit to make any Acquisitions, or make or commit to make any advance, loan, extension of credit
         or capital contribution to or any other investment in, any Person including any Affiliate of
         Borrower, except for:.................................................................................  63
8.13     Change of Management.  Borrower shall not permit any Change of Management.  For purposes of this
         Section 8.13, "Change of Management" shall mean that J. D. Woodward has ceased to act in his
         capacity as chief executive officer of the Borrower...................................................  63
8.14     Deposit Accounts.  Borrower shall not maintain any deposit accounts with a bank or financial
         institution other than the Bank Blocked Account with the Collateral Agent, except that the Borrower
         may maintain the Lock Box with Bank of America, N.A. which shall be pledged to the Administrative
         Agent, for the benefit of the Agents, the Issuing Banks and the Banks pursuant to the Three Party
         Agreement.............................................................................................  63
8.15     Risk Management Policy.  The Borrower will not materially change its risk management policies
         without the prior written consent of the Administrative Agent and the Banks.  Borrower agrees that
         upon request by Agents, from time to time, the Borrower and the Banks will review and evaluate
         Borrower's risk management policies...................................................................  63

8.16     Swap-Related Standby Letters of Credit. The Borrower shall not permit outstanding Swap-Related
         Standby Letters of Credit plus any net Mark-to-Market values of amounts owed to Swap Banks by the
         Borrower under Swap Contracts to exceed $50,000,000...................................................  63

                                                 ARTICLE IX

                                             EVENTS OF DEFAULT

9.01     Event of Default.  Any of the following shall constitute an "Event of Default":.......................  64
9.02     Remedies.  If any Event of Default occurs, the Administrative Agent may and shall, at the request
         of the Required Banks:................................................................................  66
9.03     Rights Not Exclusive.  The rights provided for in this Agreement and the other Loan Documents are
         cumulative and are not exclusive of any other rights, powers, privileges or remedies provided by
         law or in equity, or under any other instrument, document or agreement now existing or hereafter
         arising...............................................................................................  66
</TABLE>

                                      -xi-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                             <C>

                                                 ARTICLE X

                                                   AGENTS

10.01    Appointment and Authorization.........................................................................  66
10.02    Delegation of Duties.  Each of the Agents may execute any of its duties under this Agreement or any
         other Loan Document by or through agents, employees or attorneys-in-fact and shall be entitled to
         advice of counsel concerning all matters pertaining to such duties.  Neither of the Agents shall
         not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it
         selects with reasonable care..........................................................................  67
10.03    Liability of Agents.  None of Agent-Related Persons shall (a) be liable for any action taken or
         omitted to be taken by any of them under or in connection with this Agreement or any other Loan
         Document or the transactions contemplated hereby (except for its own gross negligence or willful
         misconduct), or (b) be responsible in any manner to any of the Banks for any recital, statement,
         representation or warranty made by the Borrower or any Subsidiary or Affiliate of the Borrower, or
         any officer thereof, contained in this Agreement or in any other Loan Document, or in any
         certificate, report, statement or other document referred to or provided for in, or received by
         Agents under or in connection with, this Agreement or any other Loan Document, or for the value of
         or title to any Collateral, or the validity, effectiveness, genuineness, enforceability or
         sufficiency of this Agreement or any other Loan Document, or for any failure of the Borrower or any
         other party to any Loan Document to perform its obligations hereunder or thereunder.  No
         Agent-Related Person shall be under any obligation to any Bank to ascertain or to inquire as to the
         observance or performance of any of the agreements contained in, or conditions of, this Agreement
         or any other Loan Document, or to inspect the properties, books or records of the Borrower or any
         of the Borrower's Subsidiaries or Affiliates..........................................................  67
10.04    Reliance by Agents....................................................................................  67
10.05    Notice of Default.  Agents shall not be deemed to have knowledge or notice of the occurrence of any
         Default or Event of Default, except with respect to defaults in the payment of principal, interest
         and fees required to be paid to the Administrative Agent for the account of the Banks, unless the
         Administrative Agent shall have received written notice from a Bank or the Borrower referring to
         this Agreement, describing such Default or Event of Default and stating that such notice is a
         "notice of default." The Administrative Agent will notify the BNP Paribas, as an agent, and the
         Banks of its receipt of any such notice. The Agents shall take such action with respect to such
         Default or Event of Default as may be requested by all of the Banks or the Required Banks, as
         applicable, in accordance with Article IX; provided, however, that unless and until the
         Administrative Agent has received any such request, the Agents may (but shall not be obligated to)
         take such action, or refrain from taking such action, with respect to such Default or Event of
         Default as it shall deem advisable or in the best interest of the Banks...............................  68
10.06    Credit Decision.  Each Bank acknowledges that none of Agent-Related Persons has made any
         representation or warranty to it, and that no act by Agents hereinafter taken, including any review
         of the affairs of the Borrower and its Subsidiaries, shall be deemed to constitute any
         representation or warranty by any Agent-Related Person to any Bank.  Each Bank represents to the
         Agents that it has, independently and without reliance upon any Agent-Related Person and based on
         such documents and information as it has deemed appropriate, made its own appraisal of and
         investigation into the business, prospects, operations, property, financial and other condition and
         creditworthiness of the Borrower and its Subsidiaries, the value of and title to any Collateral,
         and all applicable bank regulatory laws relating to the transactions contemplated hereby, and made
         its own decision to enter into this Agreement and to extend credit to the Borrower hereunder.  Each
         Bank also represents that it will, independently and without reliance upon any Agent-Related Person
         and based on such documents and information as it shall deem appropriate at the time, continue to
         make its own credit analysis, appraisals and decisions in taking or not taking action under this
         Agreement and the other Loan Documents, and to make such investigations as it deems necessary to
         inform itself as to the business, prospects, operations, property, financial and other condition
         and creditworthiness of the Borrower.  Except for notices, reports and other documents expressly
         herein required to be furnished to the Banks by the Agents, the Agents shall not have any duty or
         responsibility to provide any Bank with any credit or other information concerning the business,
         prospects, operations, property, financial and other condition or creditworthiness of the Borrower
         which may come into the possession of any of Agent-Related Persons....................................  68

</TABLE>

                                     -xii-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                             <C>
10.07    Indemnification.  Whether or not the transactions contemplated hereby are consummated, the Banks
         shall indemnify upon demand Agent-Related Persons (to the extent not reimbursed by or on behalf of
         the Borrower and without limiting the obligation of the Borrower to do so), pro rata, from and
         against any and all Indemnified Liabilities; provided, however, that no Bank shall be liable for
         the payment to Agent-Related Persons of any portion of such Indemnified Liabilities resulting
         solely from such Person's gross negligence or willful misconduct.  Without limitation of the
         foregoing, each Bank shall reimburse Agents upon demand for its ratable share of any costs or
         out-of-pocket expenses (including Attorney Costs) incurred by Agents in connection with the
         preparation, execution, delivery, administration, modification, amendment or enforcement (whether
         through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or
         responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or
         referred to herein, to the extent that Agents are not reimbursed for such expenses by or on behalf
         of the Borrower.  The undertaking in this Section shall survive the payment of all Obligations
         hereunder and the resignation or replacement of Agents................................................  69
10.08    Agents in Individual Capacity.  Fortis and its Affiliates and BNP Paribas and its Affiliates may
         make loans to, issue letters of credit for the account of, accept deposits from, acquire equity
         interests in and generally engage in any kind of banking, trust, financial advisory, underwriting
         or other business with the Borrower and its Subsidiaries and Affiliates as though Fortis and BNP
         Paribas were not Agents or Issuing Banks hereunder and without notice to or consent of the Banks.
         The Banks acknowledge that, pursuant to such activities, Fortis or its Affiliates and BNP Paribas
         or its Affiliates may receive information regarding the Borrower or its Affiliates (including
         information that may be subject to confidentiality obligations in favor of the Borrower or such
         Subsidiary) and acknowledge that the Agents shall be under no obligation to provide such
         information to them.  With respect to its Loans, Fortis and BNP Paribas shall have the same rights
         and powers under this Agreement as any other Bank and may exercise the same as though it were not
         the Agents or Issuing Banks, and the terms "Bank" and "Banks" include each of Fortis and BNP
         Paribas in its individual capacity....................................................................  69
</TABLE>

                                     -xiii-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                             <C>
10.09    Successor Administrative Agent.  The Administrative Agent may resign as the Administrative Agent
         upon thirty (30) days' notice to the Banks.  If the Administrative Agent resigns under this
         Agreement, BNP Paribas shall automatically become the successor agent, unless BNP Paribas declines.
         If BNP Paribas declines, the Required Banks shall appoint, from among the Banks, a successor agent
         for the Banks.  If no successor agent is appointed prior to the effective date of the resignation
         of the Administrative Agent, the resigning Administrative Agent may appoint, after consulting with
         the Banks, a successor agent from among the Banks.  Upon the acceptance of its appointment as
         successor agent hereunder, the successor agent shall succeed to all the rights, powers and duties
         of the retiring Administrative Agent and the term "Administrative Agent" shall mean such successor
         agent and the retiring Administrative Agent's appointment, powers and duties as Administrative
         Agent shall be terminated. After any retiring Administrative Agent's resignation hereunder as
         Administrative Agent, the provisions of this Article X and Sections 11.04 and 11.05 shall inure to
         its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent
         under this Agreement.  If no successor agent has accepted appointment as the Administrative Agent
         by the date which is thirty (30) days following a retiring Administrative Agent's notice of
         resignation, the retiring Administrative Agent's resignation shall nevertheless thereupon become
         effective and the Banks shall perform all of the duties of the Administrative Agent hereunder until
         such time, if any, as the Banks appoint a successor agent as provided for above.......................  69
10.10    Withholding Tax.......................................................................................  70
10.11    Collateral Matters.  (a)  The Agents are authorized on behalf of all the Banks, without the
         necessity of any notice to or further consent from the Banks, from time to time to take any action
         with respect to any Collateral or the Loan Documents which may be necessary to perfect and maintain
         perfected the security interest in and Liens upon the Collateral granted pursuant to the Loan
         Documents.............................................................................................  71
10.12    Monitoring Responsibility.  Each Bank will make its own credit decisions hereunder, including the
         decision whether or not to make advances or consent to the Issuance of Letters of Credit, thus the
         Agents shall have no duty to monitor the Collateral Position, the amounts outstanding under
         sub-lines or the reporting requirements or the contents of reports delivered by the Borrower.  Each
         Bank assumes the responsibility of keeping itself informed at all times...............................  72

                                                 ARTICLE XI

                                               MISCELLANEOUS

11.01    Amendments and Waivers.  No amendment, supplement, modification or waiver of any provision of this
         Agreement or any other Loan Document, and no consent with respect to any departure by the Borrower
         therefrom, shall be effective unless the same shall be in accordance with the provisions of this
         Section 11.01. The Required Banks may, or, with the written consent of the Required Banks, the
         Administrative Agent may, from time to time, (a) enter into with the Borrower written amendments,
         supplements or modifications hereto and to the other Loan Documents for the purpose of adding any
         provisions to this Agreement or the other Loan Documents or changing in any manner the rights of
         the Banks or of the Borrower hereunder or thereunder or (b) waive, on such terms and conditions as
         the Required Banks or the Administrative Agent, as the case may be, may specify in such instrument,
         any of the requirements of this Agreement or the other Loan Documents or any Default or Event of
         Default and its consequences; provided, however, that no such waiver and no such amendment,
         supplement or modification shall (i) reduce the amount or extend the scheduled date of maturity of
         any Loan or of any installment thereof, or reduce the stated rate of any interest or fee payable
         hereunder or extend the scheduled date of any payment thereof or increase the amount or extend the
         expiration date of any Bank's Uncommitted Line Portion, in each case without the consent of each
         Bank affected thereby, or (ii) amend, modify or waive any provision of this Section 11.01 or reduce
         the percentage specified in the definition of Required Banks, or consent to the assignment or
         transfer by the Borrower of any of its rights and obligations under this Agreement and the other
         Loan Documents or release all or substantially all of the Collateral or release the Guarantor from
         its obligations under the Guaranty, in each case without the written consent of each of the Banks
         directly affected thereby, or (iii) amend, modify or waive any provision of Section 10 without the
         written consent of the Agents.  Any such waiver and any such amendment, supplement or modification
         shall apply equally to each of the Banks and shall be binding upon the Borrower, the Banks, the
         Agents and all future holders of the Loans.  In the case of any waiver, the Borrower, the Banks and
         the Agents shall be restored to their former positions and rights hereunder and under the other
         Loan Documents, and any Default or Event of Default waived shall be deemed to be cured and not
         continuing; but no such waiver shall extend to any subsequent or other Default or Event of Default
         or impair any right consequent thereon. Any such waiver or consent shall be effective only in the
         specific instance and for the specific purpose for which given........................................  72

</TABLE>

                                     -xiv-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                             <C>
11.02    Notices...............................................................................................  73
11.03    No Waiver; Cumulative Remedies.  No failure to exercise and no delay in exercising, on the part of
         the Agents or any Bank, any right, remedy, power or privilege hereunder, shall operate as a waiver
         thereof; nor shall any single or partial exercise of any right, remedy, power or privilege
         hereunder preclude any other or further exercise thereof or the exercise of any other right,
         remedy, power or privilege............................................................................  73
11.04    Costs and Expenses.  The Borrower shall:..............................................................  73
11.05    INDEMNITY.  WHETHER OR NOT THE TRANSACTIONS CONTEMPLATED HEREBY ARE CONSUMMATED, THE BORROWER SHALL
         INDEMNIFY AND HOLD AGENT-RELATED PERSONS, AND EACH BANK AND EACH OF ITS RESPECTIVE OFFICERS,
         DIRECTORS, EMPLOYEES, COUNSEL, AGENTS AND ATTORNEYS-IN-FACT (EACH, AN "INDEMNIFIED PERSON")
         HARMLESS FROM AND AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES,
         ACTIONS, JUDGMENTS, SUITS, COSTS, CHARGES, EXPENSES AND DISBURSEMENTS (INCLUDING ATTORNEY COSTS) OF
         ANY KIND OR NATURE WHATSOEVER WHICH MAY AT ANY TIME (INCLUDING AT ANY TIME FOLLOWING REPAYMENT OF
         THE LOANS, THE TERMINATION OF THE LETTERS OF CREDIT AND THE TERMINATION, RESIGNATION OR REPLACEMENT
         OF THE ADMINISTRATIVE AGENT OR REPLACEMENT OF ANY BANK) BE IMPOSED ON, INCURRED BY OR ASSERTED
         AGAINST ANY SUCH PERSON IN ANY WAY RELATING TO OR ARISING OUT OF THIS AGREEMENT OR ANY DOCUMENT
         CONTEMPLATED BY OR REFERRED TO HEREIN, OR THE TRANSACTIONS CONTEMPLATED HEREBY, OR ANY ACTION TAKEN
         OR OMITTED BY ANY SUCH PERSON UNDER OR IN CONNECTION WITH ANY OF THE FOREGOING, INCLUDING WITH
         RESPECT TO ANY INVESTIGATION, LITIGATION OR PROCEEDING (INCLUDING ANY INSOLVENCY PROCEEDING OR
         APPELLATE PROCEEDING) RELATED TO OR ARISING OUT OF THIS AGREEMENT OR THE LOANS OR LETTERS OF CREDIT
         OR THE USE OF THE PROCEEDS THEREOF, WHETHER OR NOT ANY INDEMNIFIED PERSON IS A PARTY THERETO (ALL
         THE FOREGOING, COLLECTIVELY, THE "INDEMNIFIED LIABILITIES"); PROVIDED, HOWEVER, THAT THE BORROWER
         SHALL HAVE NO OBLIGATION HEREUNDER TO ANY INDEMNIFIED PERSON FOR THAT PORTION OF ANY INDEMNIFIED
         LIABILITIES THAT IS ADJUDGED BY A COURT OF COMPETENT JURISDICTION TO HAVE BEEN CAUSED BY THE GROSS
         NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNIFIED PERSON OR THAT PORTION OF ANY INDEMNIFIED
         LIABILITIES WHICH ARE OWED BY AN INDEMNIFIED PERSON TO ANY OTHER INDEMNIFIED PERSON, BUT IN ALL
         EVENTS, THE BORROWER SHALL REMAIN LIABLE FOR THE REMAINDER OF THE INDEMNIFIED LIABILITIES NOT SO
         EXCLUDED.  THE AGREEMENTS IN THIS SECTION SHALL SURVIVE PAYMENT OF ALL OTHER OBLIGATIONS..............  74
</TABLE>

                                      -xv-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                             <C>
11.06    Payments Set Aside.  To the extent that the Borrower makes a payment to the Agents or the Banks, or
         the Agents or the Banks exercise their right of set-off, and such payment or the proceeds of such
         set-off or any part thereof are subsequently invalidated, declared to be fraudulent or
         preferential, set aside or required (including pursuant to any settlement entered into by the
         Agents or such Bank in its discretion) to be repaid to a trustee, receiver or any other party, in
         connection with any Insolvency Proceeding or otherwise, then (a) to the extent of such recovery the
         obligation or part thereof originally intended to be satisfied shall be revived and continued in
         full force and effect as if such payment had not been made or such set-off had not occurred, and
         (b) each Bank severally agrees to pay to each of the Agents upon demand its pro rata share of any
         amount so recovered from or repaid by the Agents......................................................  75
11.07    Successors and Assigns.  The provisions of this Agreement shall be binding upon and inure to the
         benefit of the parties hereto and their respective successors and assigns, except that the Borrower
         may not assign or transfer any of its rights or Obligations under this Agreement without the prior
         written consent of the Agents and each Bank...........................................................  75
11.08    Assignments, Participations, Etc......................................................................  75
11.09    Set-off.  In addition to any rights and remedies of the Banks provided by law, if an Event of
         Default exists or the Loans have been accelerated, each Bank is authorized at any time and from
         time to time, without prior notice to the Borrower, any such notice being waived by the Borrower to
         the fullest extent permitted by law, to set off and apply any and all deposits at any time held by,
         and other indebtedness at any time owing by, such Bank to or for the credit or the account of the
         Borrower against any and all Obligations owing to such Bank, now or hereafter existing,
         irrespective of whether or not the Agents or such Bank shall have made demand under this Agreement
         or any Loan Document and although such Obligations may be contingent or unmatured. Each Bank agrees
         promptly to notify the Borrower and the Administrative Agent after any such set-off and application
         made by such Bank; provided, however, that the failure to give such notice shall not affect the
         validity of such set-off and application..............................................................  77
</TABLE>

                                  -xvi-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                             <C>
11.10    Automatic Debits of Fees.  With respect to any letter of credit fee or other fee, interest or any
         other cost or expense (including Attorney Costs) due and payable to the Agents, the Issuing Banks,
         Fortis or BNP Paribas under the Loan Documents, the Borrower hereby irrevocably authorizes the
         Collateral Agent to debit any deposit accounts of the Borrower with the Collateral Agent (such
         deposit accounts being owned by the Collateral Agent and under the exclusive dominion and control
         of the Collateral Agent) including the Bank Blocked Account in an amount such that the aggregate
         amount debited from all such deposit accounts does not exceed such fee or other cost or expense.
         If there are insufficient funds in such deposit accounts to cover the amount of the fee or other
         cost or expense then due, such debits will be reversed (in whole or in part, in the Administrative
         Agent's sole discretion) and such amount not debited shall be deemed to be unpaid.  No such debit
         under this Section shall be deemed a set-off..........................................................  77
11.11    Notification of Addresses, Lending Offices, Etc.  Each Bank shall notify the Agents in writing of
         any changes in the address to which notices to the Bank should be directed, of addresses of any
         Lending Office, of payment instructions in respect of all payments to be made to it hereunder and
         of such other administrative information as the Agents shall reasonably request.......................  77
11.12    Bank Blocked Account Charges and Procedures.  The Collateral Agent is hereby authorized to (a)
         charge the Bank Blocked Account or any deposit account of the Borrower maintained at the Collateral
         Agent for all returned checks, service charges, and other fees and charges associated with the
         deposits by the Borrower to and withdrawals by the Borrower from the Bank Blocked Account; (b)
         follow its usual procedures in the event the Bank Blocked Account or any check, draft or other
         order for payment of money should be or become the subject of any writ, levy, order or other
         similar judicial or regulatory order or process; (c) charge the Bank Blocked Account or any deposit
         account of the Borrower maintained at the Collateral Agent for any Letter of Credit reimbursement,
         Loan repayments, interest or fees; and (d) pay from the Bank Blocked Account, on behalf of the
         Borrower, suppliers and other business expenses of the Borrower.  If the available balances in the
         Bank Blocked Account relating to the Borrower are not sufficient to pay the Administrative Agent
         for any returned check, draft or order for the payment of money relating to the Borrower, or to
         compensate the Administrative Agent for any charges or fees due the Administrative Agent with
         respect to the deposits by the Borrower to and withdrawals by the Borrower from the Bank Blocked
         Account, the Borrower agrees to pay on demand the amount due the Administrative Agent.  The
         Borrower agrees that it cannot, and will not, withdraw any monies from the Bank Blocked Account and
         it will not permit the Bank Blocked Account to become subject to any other pledge, assignment,
         lien, charge or encumbrance of any kind, nature or description, other than the Administrative
         Agent's security interest.............................................................................  78
11.13    Counterparts.  This Agreement may be executed in any number of separate counterparts, each of which,
         when so executed, shall be deemed an original, and all of said counterparts taken together shall be
         deemed to constitute but one and the same instrument..................................................  78
11.14    Severability.  The illegality or unenforceability of any provision of this Agreement or any
         instrument or agreement required hereunder shall not in any way affect or impair the legality or
         enforceability of the remaining provisions of this Agreement or any instrument or agreement
         required hereunder....................................................................................  78
</TABLE>

                                     -xvii-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                             <C>
11.15    No Third Parties Benefited.  This Agreement is made and entered into for the sole protection and
         legal benefit of the Borrower, the Banks, the Administrative Agent and Agent-Related Persons, and
         their permitted successors and assigns, and no other Person shall be a direct or indirect legal
         beneficiary of, or have any direct or indirect cause of action or claim in connection with, this
         Agreement or any of the other Loan Documents..........................................................  78
11.16    GOVERNING LAW AND JURISDICTION........................................................................  78
11.17    WAIVER OF JURY TRIAL.  THE BORROWER, THE BANKS AND THE AGENTS EACH WAIVE THEIR RESPECTIVE RIGHTS TO
         A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS
         AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY
         ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER
         PARTY OR ANY AGENT-RELATED PERSON, PARTICIPANT OR ASSIGNEE, WHETHER WITH RESPECT TO CONTRACT
         CLAIMS, TORT CLAIMS, OR OTHERWISE.  THE BORROWER, THE BANKS AND THE ADMINISTRATIVE AGENT EACH AGREE
         THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY.  WITHOUT
         LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS
         WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS,
         IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR THE OTHER
         LOAN DOCUMENTS OR ANY PROVISION HEREOF OR THEREOF.  THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
         AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS ....  79
11.18    DISCRETIONARY FACILITY.  THE BORROWER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT PROVIDES FOR A
         CREDIT FACILITY THAT IS COMPLETELY DISCRETIONARY ON THE PART OF THE BANKS AND THAT THE BANKS HAVE
         ABSOLUTELY NO DUTY OR OBLIGATION TO ADVANCE ANY REVOLVING LOANS OR TO ISSUE ANY LETTER OF CREDIT.
         THE BORROWER UNDERSTANDS THAT WITHOUT REASON, CAUSE OR PRIOR NOTICE, THE BANKS MAY CEASE ADVANCING
         REVOLVING LOANS AND ISSUING LETTERS OF CREDIT AND MAKE DEMAND FOR PAYMENT OF ALL OBLIGATIONS OF
         BORROWER TO THE BANKS AT ANY TIME.  BORROWER REPRESENTS AND WARRANTS TO THE BANKS THAT BORROWER IS
         AWARE OF THE RISKS ASSOCIATED WITH CONDUCTING BUSINESS UTILIZING AN UNCOMMITTED FACILITY..............  79
11.19    Entire Agreement.  THIS AGREEMENT, TOGETHER WITH THE OTHER LOAN DOCUMENTS, EMBODIES THE ENTIRE
         AGREEMENT AND UNDERSTANDING AMONG THE BORROWER, THE BANKS AND THE ADMINISTRATIVE AGENT, AND
         SUPERSEDES ALL PRIOR OR CONTEMPORANEOUS AGREEMENTS AND UNDERSTANDINGS OF SUCH PERSONS, VERBAL OR
         WRITTEN, RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF............................................  80
</TABLE>

                                    -xviii-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                               Page
<S>                                                                                                             <C>
11.20    Effect of Amendment and Restatement.  On the Closing Date, the Original Credit Agreement shall be
         amended, restated and superseded in its entirety by this Agreement.  The parties hereto acknowledge
         and agree that the liens and security interests granted under the Security Agreements (as defined
         in the Original Credit Agreement) are continuing and in full force and effect and, upon the
         amendment and restatement of the Original Credit Agreement pursuant to this Agreement, such liens
         and security interests secure and continue to secure the payment of the Obligations, and that the
         Notes outstanding under and as defined in the Original Credit Agreement are, upon the Closing Date,
         replaced by the Notes issued hereunder................................................................  80
</TABLE>

                                     -xix-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]