Document:

<PAGE>

                                                                     EXHIBIT 4.2

                                                                  EXECUTION COPY

================================================================================

                           CITGO PETROLEUM CORPORATION

                                     Issuer

                          11 3/8% Senior Notes Due 2011

                                   ----------

                                    INDENTURE

                          Dated as of February 27, 2003

                                   ----------

                              THE BANK OF NEW YORK
                                     Trustee

================================================================================

<PAGE>

                              CROSS-REFERENCE TABLE

<Table>
<Caption>
  TIA                                                        Indenture
Section                                                      Section
-------                                                      ---------
<S>                                                          <C>

310(a)(1)       ..........................................     7.10
      (a)(2)    ..........................................     7.10
      (a)(3)    ..........................................     N.A.
      (a)(4)    ..........................................     N.A.
      (b)       ..........................................     7.08; 7.10
      (c)       ..........................................     N.A.
311(a)          ..........................................     7.11
      (b)       ..........................................     7.11
      (c)       ..........................................     N.A.
312(a)          ..........................................     2.05
      (b)       ..........................................     11.02
      (c)       ..........................................     11.02
313(a)          ..........................................     7.06
      (b)(1)    ..........................................     N.A.
      (b)(2)    ..........................................     7.06
      (c)(1)    ..........................................     11.02
      (c)(2)    ..........................................     11.02
      (d)       ..........................................     7.06
314(a)          ..........................................     4.02; 4.13; 4.14
      (b)       ..........................................     N.A.
      (c)(1)    ..........................................     11.04.
      (c)(2)    ..........................................     11.04.
      (c)(3)    ..........................................     N.A.
      (d)       ..........................................     N.A.
      (e)       ..........................................     11.05
315(a)          ..........................................     7.01
      (b)       ..........................................     7.05; 11.02
      (c)       ..........................................     7.01
      (d)       ..........................................     7.01
      (e)       ..........................................     6.11
316(a)(1)(A)    ..........................................     6.05
      (a)(1)(B) ..........................................     6.04
      (a)(2)    ..........................................     N.A.
      (b)       ..........................................     6.07
      (c)       ..........................................     9.04
317(a)(1)       ..........................................     6.08
      (a)(2)    ..........................................     6.09
      (b)       ..........................................     2.04
318(a)          ..........................................     11.01
      (c)       ..........................................     11.01
                                            N.A. means Not Applicable.
</Table>

Note: This Cross-Reference Table shall not, for any purpose, be deemed to be
part of the Indenture.

<PAGE>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                           Page
                                                                           ----
<S>            <C>                                                         <C>

                                    ARTICLE 1

                   Definitions and Incorporation by Reference

SECTION 1.01.  Definitions....................................................1
SECTION 1.02.  Incorporation by Reference of Trust Indenture Act.............42
SECTION 1.03.  Rules of Construction.........................................42

                                    ARTICLE 2

                                 The Securities

SECTION 2.01.  Form and Dating...............................................43
SECTION 2.02.  Execution and Authentication..................................43
SECTION 2.03.  Registrar and Paying Agent....................................44
SECTION 2.04.  Paying Agent To Hold Money in Trust...........................45
SECTION 2.05.  Securityholder Lists..........................................45
SECTION 2.06.  Transfer and Exchange.........................................46
SECTION 2.07.  Replacement Securities........................................46
SECTION 2.08.  Outstanding Securities........................................47
SECTION 2.09.  Temporary Securities..........................................47
SECTION 2.10.  Cancellation..................................................47
SECTION 2.11.  Defaulted Interest............................................48
SECTION 2.12.  CUSIP Numbers.................................................48
SECTION 2.13.  Issuance of Additional Securities.............................48

                                    ARTICLE 3

                                   Redemption

SECTION 3.01.  Notices to Trustee............................................49
SECTION 3.02.  Selection of Securities To Be Redeemed........................49
SECTION 3.03.  Notice of Redemption..........................................50
SECTION 3.04.  Effect of Notice of Redemption................................51
SECTION 3.05.  Deposit of Redemption Price...................................51
SECTION 3.06.  Securities Redeemed in Part...................................51
</Table>

<PAGE>

                                                                              ii

<Table>
<S>            <C>                                                         <C>
                                    ARTICLE 4

                                    Covenants

SECTION 4.01.  Payment of Securities.........................................51
SECTION 4.02.  SEC Reports...................................................52
SECTION 4.03.  Limitation on Indebtedness....................................53
SECTION 4.04.  Limitation on Restricted Payments.............................57
SECTION 4.05.  Limitation on Restrictions on Distributions
                     from Restricted Subsidiaries............................61
SECTION 4.06.  Limitation on Sales of Assets and Subsidiary Stock............63
SECTION 4.07.  Limitation on Affiliate Transactions..........................68
SECTION 4.08.  Limitation on Issuance of Guarantees of Indebtedness..........70
SECTION 4.09.  Change of Control.............................................71
SECTION 4.10.  Limitation on Liens...........................................73
SECTION 4.11.  Limitation on Sale/Leaseback Transactions.....................74
SECTION 4.12.  Business Activities of Pledged Entities.......................74
SECTION 4.13.  Compliance Certificate........................................75
SECTION 4.14.  Further Instruments and Acts..................................75
SECTION 4.15.  Investment Grade Covenants....................................75

                                    ARTICLE 5

                                Successor Company

SECTION 5.01.  When Company May Merge or Transfer Assets.....................77
SECTION 5.02.  When Subsidiary Guarantor May Merge or Transfer Assets........78

                                    ARTICLE 6

                              Defaults and Remedies

SECTION 6.01.  Events of Default.............................................79
SECTION 6.02.  Acceleration..................................................82
SECTION 6.03.  Other Remedies................................................83
SECTION 6.04.  Waiver of Past Defaults.......................................83
SECTION 6.05.  Control by Majority...........................................83
SECTION 6.06.  Limitation on Suits...........................................84
SECTION 6.07.  Rights of Holders to Receive Payment..........................84
</Table>

<PAGE>
                                                                             iii

<Table>
<S>            <C>                                                         <C>
SECTION 6.08.  Collection Suit by Trustee....................................85
SECTION 6.09.  Trustee May File Proofs of Claim..............................85
SECTION 6.10.  Priorities....................................................85
SECTION 6.11.  Undertaking for Costs.........................................86
SECTION 6.12.  Waiver of Stay or Extension Laws..............................86

                                    ARTICLE 7

                                     Trustee

SECTION 7.01.  Duties of Trustee.............................................86
SECTION 7.02.  Rights of Trustee.............................................88
SECTION 7.03.  Individual Rights of Trustee..................................89
SECTION 7.04.  Trustee's Disclaimer..........................................89
SECTION 7.05.  Notice of Defaults............................................89
SECTION 7.06.  Reports by Trustee to Holders.................................90
SECTION 7.07.  Compensation and Indemnity....................................90
SECTION 7.08.  Replacement of Trustee........................................91
SECTION 7.09.  Successor Trustee by Merger...................................92
SECTION 7.10.  Eligibility; Disqualification.................................93
SECTION 7.11.  Preferential Collection of Claims Against Company.............93

                                    ARTICLE 8

                       Discharge of Indenture; Defeasance

SECTION 8.01.  Discharge of Liability on Securities; Defeasance..............93
SECTION 8.02.  Conditions to Defeasance......................................95
SECTION 8.03.  Application of Trust Money....................................96
SECTION 8.04.  Repayment to Company..........................................96
SECTION 8.05.  Indemnity for Government Obligations..........................97
SECTION 8.06.  Reinstatement.................................................97

                                    ARTICLE 9

                                   Amendments

SECTION 9.01.  Without Consent of Holders....................................97
SECTION 9.02.  With Consent of Holders.......................................98
SECTION 9.03.  Compliance with Trust Indenture Act...........................99
SECTION 9.04.  Revocation and Effect of Consents and Waivers.................99
</Table>

<PAGE>
                                                                              iv

<Table>
<S>            <C>                                                         <C>
SECTION 9.05.  Notation on or Exchange of Securities........................100
SECTION 9.06.  Trustee To Sign Amendments...................................100
SECTION 9.07.  Payment for Consent..........................................101

                                   ARTICLE 10

                              Subsidiary Guaranties

SECTION 10.01.  Guaranties..................................................101
SECTION 10.02.  Limitation on Liability.....................................103
SECTION 10.03.  Successors and Assigns......................................104
SECTION 10.04.  No Waiver...................................................104
SECTION 10.05.  Modification................................................104
SECTION 10.06.  Release of Subsidiary Guarantor.............................104
SECTION 10.07.  Form of Supplemental Indenture..............................105

                                   ARTICLE 11

                                  Miscellaneous

SECTION 11.01.  Trust Indenture Act Controls................................105
SECTION 11.02.  Notices.....................................................106
SECTION 11.03.  Communication by Holders with Other
                     Holders................................................107
SECTION 11.04.  Certificate and Opinion as to Conditions Precedent..........107
SECTION 11.05.  Statements Required in Certificate or Opinion...............107
SECTION 11.06.  When Securities Disregarded.................................108
SECTION 11.07.  Rules by Trustee, Paying Agent and Registrar................108
SECTION 11.08.  Legal Holidays..............................................108
SECTION 11.09.  Governing Law...............................................109
SECTION 11.10.  No Recourse Against Others..................................109
SECTION 11.11.  Successors..................................................109
SECTION 11.12.  Multiple Originals..........................................109
SECTION 11.13.  Table of Contents; Headings.................................109
</Table>

<PAGE>
                                                                               v

Exhibit I - Form of Supplemental Indenture to be Delivered By Subsidiary
       Guarantors

Rule 144A/Regulation S Appendix

Exhibit 1 - Form of Initial Security

Exhibit A - Form of Exchange Security

<PAGE>

                                    INDENTURE dated as of 27, 2003, between
                           CITGO PETROLEUM CORPORATION, a Delaware corporation
                           (the "Company"), and THE BANK OF NEW YORK, a New York
                           banking corporation (the "Trustee").

                  Each party agrees as follows for the benefit of the other
party and for the equal and ratable benefit of the Holders of the Securities.

                                    ARTICLE 1

                  Definitions and Incorporation by Reference

                  SECTION 1.01. Definitions.

                  "Additional Assets" means

                  (1) any property, plant or equipment used in a Related
         Business;

                  (2) the Capital Stock of a Person that becomes a Restricted
         Subsidiary as a result of the acquisition of such Capital Stock by the
         Company or another Restricted Subsidiary; or

                  (3) Capital Stock constituting a minority interest in any
         Person that at such time is a Restricted Subsidiary;

                  provided, however, that any such Restricted Subsidiary
described in clause (2) or (3) above is primarily engaged in a Related Business.

                  "Additional Securities" means, subject to the Company's
compliance with Section 4.03, 11 3/8% Senior Securities Due 2011 issued from
time to time after the Issue Date under the terms of this Indenture (other than
pursuant to Section 2.06, 2.07, 2.09 or 3.06 of this Indenture and other than
Exchange Securities or Private Exchange Securities issued pursuant to an
exchange offer for other Securities outstanding under this Indenture).

                  "Affiliate" of any specified Person means any other Person,
directly or indirectly, controlling or controlled by or under direct or indirect
common control with such specified Person. For the purposes of this

<PAGE>
                                                                               2

definition, "control" when used with respect to any Person means 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;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing. For purposes of Sections 4.04, 4.06 and 4.07 only, "Affiliate" shall
also mean any beneficial owner of Capital Stock representing 5% or more of the
total voting power of the Voting Stock (on a fully diluted basis) of the Company
or of rights or warrants to purchase such Capital Stock (whether or not
currently exercisable) and any Person who would be an Affiliate of any such
beneficial owner pursuant to the first sentence hereof.

                  "Asset Disposition" means any sale, lease, transfer or other
disposition by the Company or any Restricted Subsidiary, including any
disposition by means of a merger, consolidation or similar transaction (each
referred to for the purposes of this definition as a "disposition") of:

                  (1) any shares of Capital Stock, or other ownership interests,
         of a Restricted Subsidiary (other than directors' qualifying shares or
         shares required by applicable law to be held by a Person other than the
         Company or a Restricted Subsidiary);

                  (2) substantially all the assets of any division or line of
         business of the Company or any Restricted Subsidiary; or

                  (3) any other assets of the Company or any Restricted
         Subsidiary outside of the ordinary course of business of the Company or
         such Restricted Subsidiary

other than, in the case of clauses (1), (2) and (3) above, (A) a disposition by
a Restricted Subsidiary to the Company or by the Company or a Restricted
Subsidiary to a Wholly Owned Subsidiary, (B) for purposes of Section 4.06 only,
(x) a disposition that constitutes a Restricted Payment (or would constitute a
Restricted Payment but for the exclusions from the definition thereof) and that
is not prohibited by Section 4.04, and (y) a disposition of all or substantially
all the assets of the Company in accordance with Section 5.01, (C) a
disposition, whether in a single

<PAGE>
                                                                               3

transaction or a series of related transactions, of assets with a fair market
value of less than $10,000,000), (D) sales pursuant to a Qualified Receivables
Transaction of accounts receivable and related assets of the type specified in
the definition of "Qualified Receivables Transaction" to a Receivables
Subsidiary (in the case of a sale by the Company or any of its Restricted
Subsidiaries) or any other Person (in the case of a sale by a Receivables
Subsidiary), in each case, for the fair market value thereof, including cash in
an amount at least equal to 90% of the fair market value thereof as determined
in accordance with GAAP, (E) sales by the Company or any Restricted Subsidiary
of hydrocarbons or refined products therefrom that the Company or any Restricted
Subsidiary had previously acquired from the Permitted Holder or any of its
Subsidiaries pursuant to an arrangement between the Company and the Permitted
Holder providing for the resale by the Company or any Restricted Subsidiary of
the Permitted Holder's products for a customary fee, (F) sales by the Company or
any Restricted Subsidiary of inventory at fair market value for cash
consideration to the extent such cash consideration is applied by the Company or
such Restricted Subsidiary within 20 days of such sale to acquire hydrocarbons
or refined products, and (G) a disposition of cash or Temporary Cash
Investments.

                  "Attributable Debt" in respect of a Sale/Leaseback Transaction
means, as at the time of determination, the present value (discounted at the
interest rate borne by the Securities, compounded annually) of the total
obligations of the lessee for rental payments during the remaining term of the
lease included in such Sale/Leaseback Transaction (including any period for
which such lease has been extended); provided, however, that if such
Sale/Leaseback Transaction results in a Capital Lease Obligation, the amount of
Indebtedness represented thereby will be determined in accordance with the
definition of "Capital Lease Obligation".

                  "Available Liquidity" with respect to the Company means, at
any time, the sum of (w) committed lines of credit that may be readily drawn by
the Company, (x) funds readily available to the Company pursuant to an accounts
receivable facility permitted by Section 4.03(b)(13) and (y) unrestricted cash
on the consolidated balance sheet of the Company held by the Company or any
Restricted

<PAGE>
                                                                               4

Subsidiary; provided, however, that any cash of any Restricted Subsidiary shall
be deemed to be unrestricted for purposes of this definition only to the extent
that such Restricted Subsidiary is not, at the applicable time, subject to any
material restrictions, directly or indirectly, on its ability to dividend or
distribute such cash to the Company.

                  "Average Life" means, as of the date of determination, with
respect to any Indebtedness, the quotient obtained by dividing (1) the sum of
the products of the numbers of years from the date of determination to the dates
of each successive scheduled principal payment of such Indebtedness or
redemption or similar payment with respect to such Indebtedness multiplied by
the amount of such payment by (2) the sum of all such payments.

                  "Board of Directors" with respect to a Person means the Board
of Directors of such Person or any committee thereof duly authorized to act on
behalf of such Board.

                  "Business Day" means each day which is not a Legal Holiday.

                  "Capital Lease Obligation" means an obligation that is
required to be classified and accounted for as a capital lease for financial
reporting purposes in accordance with GAAP, and the amount of Indebtedness
represented by such obligation shall be the capitalized amount of such
obligation determined in accordance with GAAP; and the Stated Maturity thereof
shall be the date of the last payment of rent or any other amount due under such
lease prior to the first date upon which such lease may be terminated by the
lessee without payment of a penalty. For purposes of Section 4.10, a Capital
Lease Obligation shall be deemed to be secured by a Lien on the property being
leased.

                  "Capital Stock" of any Person means any and all shares,
interests, rights to purchase, warrants, options, participation or other
equivalents of or interests in (however designated) equity of such Person,
including any Preferred Stock, but excluding any debt securities convertible
into such equity.

<PAGE>
                                                                               5

                  "Change of Control" means any of the following events:

                  (1) prior to the first public offering of common stock of the
         Company, the Permitted Holder ceases to be the "beneficial owner" (as
         defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or
         indirectly, of a majority in the aggregate of the total voting power of
         the Voting Stock of the Company, whether as a result of issuance of
         securities of the Company, any merger, consolidation, liquidation or
         dissolution of the Company, or any direct or indirect transfer of
         securities or otherwise (for purposes of this clause (1) and clause (2)
         below, the Permitted Holder shall be deemed to beneficially own any
         Voting Stock of a Person (the "specified person") held by any other
         Person (the "parent entity") so long as the Permitted Holder
         beneficially owns (as so defined), directly or indirectly, in the
         aggregate a majority of the voting power of the Voting Stock of the
         parent entity);

                  (2) after the first public offering of common stock of the
         Company, any "person" (as such term is used in Sections 13(d) and 14(d)
         of the Exchange Act), other than the Permitted Holder, is or becomes
         the beneficial owner (as defined in clause (1) above, except that for
         purposes of this clause (2) such person shall be deemed to have
         "beneficial ownership" of all shares that any such person has the right
         to acquire, whether such right is exercisable immediately or only after
         the passage of time), directly or indirectly, of more than 35% of the
         total voting power of the Voting Stock of the Company; provided,
         however, that the Permitted Holder beneficially owns (as defined in
         clause (1) above), directly or indirectly, in the aggregate a lesser
         percentage of the total voting power of the Voting Stock of the Company
         than such other person and does not have the right or ability by voting
         power, contract or otherwise to elect or designate for election a
         majority of the Board of Directors of the Company (for the purposes of
         this clause (2), such other person shall be deemed to beneficially own
         any Voting Stock of a specified person held by a parent entity, if such
         other person is the beneficial owner (as defined in this

<PAGE>
                                                                               6

         clause (2)), directly or indirectly, of more than 35% of the voting
         power of the Voting Stock of such parent entity and the Permitted
         Holder beneficially owns (as defined in clause (1) above), directly or
         indirectly, in the aggregate a lesser percentage of the voting power of
         the Voting Stock of such parent entity and does not have the right or
         ability by voting power, contract or otherwise to elect or designate
         for election a majority of the board of directors of such parent
         entity);

                  (3) individuals who on the Issue Date constituted the Board of
         Directors of the Company (together with any new directors whose
         election by such Board of Directors of the Company or whose nomination
         for election by the shareholders of the Company, was (A) approved by a
         vote of 66K% of the directors of the Company then still in office who
         were either directors on the Issue Date or whose election or nomination
         for election was previously so approved or (B) approved by the
         Permitted Holder at a time when the Permitted Holder held, directly or
         indirectly, a majority in the aggregate of the total voting power of
         the Voting Stock of the Company) cease for any reason to constitute a
         majority of the Board of Directors of the Company then in office;

                  (4) the adoption of a plan relating to the liquidation or
         dissolution of the Company; or

                  (5) the merger or consolidation of the Company with or into
         another Person or the merger of another Person with or into the
         Company, or the sale of all or substantially all the assets of the
         Company (determined on a consolidated basis) to another Person other
         than (i) a transaction in which the survivor or transferee is a Person
         that is controlled by the Permitted Holder or (ii) a transaction
         following which (A) in the case of a merger or consolidation
         transaction, holders of securities that represented 100% of the Voting
         Stock of the Company immediately prior to such transaction (or other
         securities into which such securities are converted as part of such
         merger or consolidation transaction) own directly or indirectly at
         least a majority of the voting power of the Voting Stock of the
         surviving Person in such merger or consolidation transaction
         immediately after

<PAGE>
                                                                               7

         such transaction and in substantially the same proportion as before the
         transaction and (B) in the case of a sale of assets transaction, each
         transferee becomes an obligor in respect of the Securities and a
         Subsidiary of the transferor of such assets;

provided, however, that none of the events set forth above under paragraphs (1)
through (5) of this definition of "Change of Control" shall constitute a Change
of Control if, immediately following the consummation of any such event and
after giving effect thereto, the Securities have an Investment Grade Rating.

                  "CITGO Pipeline I" means CITGO Pipeline Holding I, LLC, a
Delaware limited liability company that holds the Company's equity interests in
the Colonial Pipeline.

                  "CITGO Pipeline II" means CITGO Pipeline Holding II, LLC, a
Delaware limited liability company that holds the Company's equity interests in
the Explorer Pipeline.

                  "CITGO Puerto Rico" means CITGO International Puerto Rico
Company, a Puerto Rican civil partnership and an indirect wholly owned
subsidiary of the Company.

                  "CITGO Puerto Rico Credit Agreement" means the 364-day credit
agreement entered into as of May 28, 2002, among CITGO Puerto Rico, the lenders
referred to therein and Mizuho Corporation Bank Limited as Administrative Agent,
together with the related documents thereto (including the revolving loan
facility, note purchase or placement facility, letter of credit facility or
other arrangement for the extension of credit thereunder, any guarantees and
security documents), as amended, extended, renewed, restated, supplemented or
otherwise modified (in whole or in part, and without limitation as to amount,
terms, conditions, covenants and other provisions) from time to time, and any
agreement (and related document) governing Indebtedness Incurred to Refinance,
in whole or in part, the borrowings and commitments then outstanding or
permitted to be outstanding under such credit agreement or a successor credit
agreement, whether by the same or any other lender or group of lenders.

<PAGE>
                                                                               8

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

                  "Commodity Agreement" means any commodity or raw material
futures contract, commodity or raw materials option, or any other agreement
designed to protect against or manage exposure to fluctuations in commodity or
raw materials prices, other than hydrocarbons.

                  "Company" means the party named as such in this Indenture
until a successor replaces it and, thereafter, means the successor and, for
purposes of any provision contained herein and required by the TIA, each other
obligor on the indenture securities.

                  "Consolidated Coverage Ratio" as of any date of determination
means the ratio of (x) the aggregate amount of EBITDA for the period of the most
recent four consecutive fiscal quarters ending at least 45 days prior to the
date of such determination to (y) Consolidated Interest Expense for such four
fiscal quarters; provided, however, that:

                  (1) if the Company or any Restricted Subsidiary has Incurred
         any Indebtedness since the beginning of such period that remains
         outstanding or if the transaction giving rise to the need to calculate
         the Consolidated Coverage Ratio is an Incurrence of Indebtedness, or
         both, EBITDA and Consolidated Interest Expense for such period shall be
         calculated after giving effect on a pro forma basis to such
         Indebtedness as if such Indebtedness had been Incurred on the first day
         of such period;

                  (2) if the Company or any Restricted Subsidiary has repaid,
         repurchased, defeased or otherwise discharged any Indebtedness since
         the beginning of such period or if any Indebtedness is to be repaid,
         repurchased, defeased or otherwise discharged (in each case other than
         Indebtedness Incurred under any revolving credit facility unless such
         Indebtedness has been permanently repaid and has not been replaced) on
         the date of the transaction giving rise to the need to calculate the
         Consolidated Coverage Ratio, EBITDA and Consolidated Interest Expense
         for such period shall be calculated on a pro forma basis as if such
         discharge had occurred on the first day of such period and as if

<PAGE>
                                                                               9

         the Company or such Restricted Subsidiary had not earned the interest
         income actually earned during such period in respect of cash or
         Temporary Cash Investments used to repay, repurchase, defease or
         otherwise discharge such Indebtedness;

                  (3) if since the beginning of such period the Company or any
         Restricted Subsidiary shall have made any Asset Disposition, EBITDA for
         such period shall be reduced by an amount equal to EBITDA (if positive)
         directly attributable to the assets which are the subject of such Asset
         Disposition for such period, or increased by an amount equal to EBITDA
         (if negative), directly attributable thereto for such period and
         Consolidated Interest Expense for such period shall be reduced by an
         amount equal to the Consolidated Interest Expense directly attributable
         to any Indebtedness of the Company or any Restricted Subsidiary repaid,
         repurchased, defeased or otherwise discharged with respect to the
         Company and its continuing Restricted Subsidiaries in connection with
         such Asset Disposition for such period (or, if the Capital Stock of any
         Restricted Subsidiary is sold, the Consolidated Interest Expense for
         such period directly attributable to the Indebtedness of such
         Restricted Subsidiary to the extent the Company and its continuing
         Restricted Subsidiaries are no longer liable for such Indebtedness
         after such sale);

                  (4) if since the beginning of such period the Company or any
         Restricted Subsidiary (by merger or otherwise) shall have made a
         Material Investment in any Restricted Subsidiary (or any person which
         becomes a Restricted Subsidiary) or an acquisition of assets, including
         any acquisition of assets occurring in connection with a transaction
         requiring a calculation to be made hereunder, which constitutes all or
         substantially all of an operating unit of a business, EBITDA and
         Consolidated Interest Expense for such period shall be calculated after
         giving pro forma effect thereto (including the Incurrence of any
         Indebtedness) as if such Material Investment or acquisition occurred on
         the first day of such period; and

                  (5) if since the beginning of such period any Person (that
         subsequently became a Restricted

<PAGE>
                                                                              10

         Subsidiary or was merged with or into the Company or any Restricted
         Subsidiary since the beginning of such period) shall have made any
         Asset Disposition, any Investment or acquisition of assets that would
         have required an adjustment pursuant to clause (3) or (4) above if made
         by the Company or a Restricted Subsidiary during such period, EBITDA
         and Consolidated Interest Expense for such period shall be calculated
         after giving pro forma effect thereto as if such Asset Disposition,
         Investment or acquisition occurred on the first day of such period.

For purposes of this definition, whenever pro forma effect is to be given to an
acquisition of assets, the amount of income or earnings relating thereto and the
amount of Consolidated Interest Expense associated with any Indebtedness
Incurred in connection therewith, the pro forma calculations shall be determined
in good faith by a responsible financial or accounting Officer of the Company.
If any Indebtedness bears a floating rate of interest and is being given pro
forma effect, the interest on such Indebtedness shall be calculated as if the
rate in effect on the date of determination had been the applicable rate for the
entire period (taking into account any Interest Rate Agreement applicable to
such Indebtedness if such Interest Rate Agreement has a remaining term in excess
of 12 months).

                  "Consolidated Interest Expense" means, for any period, the
total interest expense of the Company and its consolidated Restricted
Subsidiaries, plus, to the extent not included in such total interest expense,
and to the extent incurred by the Company or its Restricted Subsidiaries,
without duplication:

                  (1) interest component of Capital Lease Obligations;

                  (2) amortization of debt discount;

                  (3) capitalized interest;

                  (4) non-cash interest expense;

                  (5) commissions, discounts and other fees and charges owed
         with respect to letters of credit and bankers' acceptance financing;

<PAGE>
                                                                              11

                  (6) net payments pursuant to Hedging Obligations arising from
         Interest Rate Agreements or Currency Agreements;

                  (7) dividends accrued in respect of all Preferred Stock held
         by Persons other than the Company or a Wholly Owned Subsidiary (other
         than dividends payable solely in Capital Stock (other than Disqualified
         Stock) of the Company); provided, however, that such dividends will be
         multiplied by a fraction the numerator of which is one and the
         denominator of which is one minus the effective combined tax rate of
         the issuer of such Preferred Stock (expressed as decimal) for such
         period (as estimated by the Chief Financial Officer of the Company in
         good faith); and

                  (8) interest accruing on any Indebtedness of any other Person
         to the extent such Indebtedness is Guaranteed by (or secured by the
         assets of) the Company or any Restricted Subsidiary, other than
         pursuant to Ordinary Course Guarantees.

                  "Consolidated Net Income" means, for any period, the net
income of the Company and its consolidated Subsidiaries; provided, however, that
there shall not be included in such Consolidated Net Income:

                  (1) any net income of any Person (other than the Company) if
         such Person is not a Restricted Subsidiary, except that:

                           (A) subject to the exclusion contained in clause (3)
                  below, the Company's equity in the net income of any such
                  Person for such period shall be included in such Consolidated
                  Net Income up to the aggregate amount of cash actually
                  distributed by such Person during such period to the Company
                  or a Restricted Subsidiary as a dividend or other distribution
                  (subject, in the case of a dividend or other distribution paid
                  to a Restricted Subsidiary, to the limitations contained in
                  clause (2) below) less, for purpose of Section 4.04 only, the
                  aggregate amount of Investments in LCR made pursuant to clause
                  (13) of the definition of "Permitted Investments"; and

<PAGE>
                                                                              12

                           (B) the Company's equity in a net loss of any such
                  Person for such period shall be included in determining such
                  Consolidated Net Income;

                  (2) any net income of any Restricted Subsidiary if such
         Restricted Subsidiary is subject to restrictions, directly or
         indirectly, on the payment of dividends or the making of distributions
         by such Restricted Subsidiary, directly or indirectly, to the Company,
         except that:

                           (A) subject to the exclusion contained in clause (3)
                  below, the Company's equity in the net income of any such
                  Restricted Subsidiary for such period shall be included in
                  such Consolidated Net Income up to the aggregate amount of
                  cash actually distributed by such Restricted Subsidiary during
                  such period to the Company or another Restricted Subsidiary as
                  a dividend or other distribution (subject, in the case of a
                  dividend or other distribution paid to another Restricted
                  Subsidiary, to the limitation contained in this clause); and

                           (B) the Company's equity in a net loss of any such
                  Restricted Subsidiary for such period shall be included in
                  determining such Consolidated Net Income;

                  (3) any gain (or loss) realized upon the sale or other
         disposition of any assets of the Company, its consolidated Subsidiaries
         or any other Person (including pursuant to any sale-and-leaseback
         arrangement) which is not sold or otherwise disposed of in the ordinary
         course of business and any gain (or loss) realized upon the sale or
         other disposition of any Capital Stock of any Person;

                  (4) extraordinary gains or losses; and

                  (5) the cumulative effect of a change in accounting
         principles; and

                  (6) the tax effect of any of the items described in clauses
         (1) through (5) above;

<PAGE>
                                                                              13

in each case, for such period. Notwithstanding the foregoing, for the purpose of
Section 4.04 only, there shall be excluded from Consolidated Net Income any
repurchases, repayments or redemptions of Investments, proceeds realized on the
sale of Investments or return of capital to the Company or a Restricted
Subsidiary to the extent such repurchases, repayments, redemptions, proceeds or
returns increase the amount of Restricted Payments permitted under such Section
pursuant to clause (a)(3)(D) thereof.

                  "Consolidated Net Tangible Assets" as of any date of
determination, means the consolidated total assets of the Company and its
Restricted Subsidiaries determined in accordance with GAAP, less the sum of

                  (1) all current liabilities and current liability items; and

                  (2) all goodwill, trade names, trademarks, patents,
         organization expense, unamortized debt discount and expense and other
         similar intangibles properly classified as intangibles in accordance
         with GAAP.

                  "Consolidated Net Worth" means the total of the amounts shown
on the balance sheet of the Company and its consolidated Subsidiaries,
determined on a consolidated basis in accordance with GAAP, as of the end of the
most recent fiscal quarter of the Company ending at least 45 days prior to the
taking of any action for the purpose of which the determination is being made,
as the sum of:

                  (1) the par or stated value of all outstanding Capital Stock
         of the Company plus

                  (2) paid-in capital or capital surplus relating to such
         Capital Stock plus

                  (3) any retained earnings or earned surplus;

less (A) any accumulated deficit and (B) any amounts attributable to
Disqualified Stock.

                  "Credit Agreements" means

                  (1) the Three-Year Credit Agreement;

<PAGE>
                                                                              14

                  (2) the 364-Day Credit Agreement;

                  (3) the CITGO Puerto Rico Credit Agreement; and

                  (4) the New Credit Agreement.

                  "Currency Agreement" means any foreign exchange contract,
currency swap agreement or other similar agreement designed to protect such
Person against fluctuations in currency values.

                  "Default" means any event which is, or after notice or passage
of time or both would be, an Event of Default.

                  "Disqualified Stock" means, with respect to any Person, any
Capital Stock which by its terms (or by the terms of any security into which it
is convertible or for which it is exchangeable at the option of the holder) or
upon the happening of any event:

                  (1) matures or is mandatorily redeemable (other than
         redeemable only for Capital Stock of such Person which is not itself
         Disqualified Stock) pursuant to a sinking fund obligation or otherwise;

                  (2) is convertible or exchangeable at the option of the holder
         for Indebtedness or Disqualified Stock; or

                  (3) is mandatorily redeemable or must be purchased upon the
         occurrence of certain events or otherwise, in whole or in part;

on or prior to the first anniversary of the Stated Maturity of the Securities;
provided, however, that any Capital Stock that would not constitute Disqualified
Stock but for provisions thereof giving holders thereof the right to require
such Person to purchase or redeem such Capital Stock upon the occurrence of an
"asset sale" or "change of control" occurring prior to the first anniversary of
the Stated Maturity of the Securities shall not constitute Disqualified Stock if
(1) the "asset sale" or "change of control" provisions applicable to such
Capital Stock are not more favorable to the holders of such Capital Stock than
the terms applicable to the Securities in Sections 4.06 and 4.09 of this
Indenture and (2) any such

<PAGE>
                                                                              15

requirement only becomes operative after compliance with such terms applicable
to the Securities, including the purchase of any Securities tendered pursuant
thereto.

                  The amount of any Disqualified Stock that does not have a
fixed redemption, repayment or repurchase price shall be calculated in
accordance with the terms of such Disqualified Stock as if such Disqualified
Stock were redeemed, repaid or repurchased on any date on which the amount of
such Disqualified Stock is to be determined pursuant to the Indenture; provided,
however, that if such Disqualified Stock could not be required to be redeemed,
repaid or repurchased at the time of such determination, the redemption,
repayment or repurchase price shall be the book value of such Disqualified Stock
as reflected in the most recent financial statements of such Person.

                  "EBITDA" for any period means the sum of Consolidated Net
Income, plus the following to the extent deducted in calculating such
Consolidated Net Income:

                  (1) all income tax expense of the Company and its consolidated
         Restricted Subsidiaries;

                  (2) Consolidated Interest Expense;

                  (3) depreciation and amortization expense of the Company and
         its consolidated Restricted Subsidiaries (excluding amortization
         expense attributable to a prepaid operating activity item that was paid
         in cash in a prior period but including amortization of prepaid
         turnaround costs); and

                  (4) all other non-cash charges of the Company and its
         consolidated Restricted Subsidiaries (excluding any such non-cash
         charge to the extent that it represents an accrual of or reserve for
         cash expenditures in any future period);

in each case for such period. Notwithstanding the foregoing, the provision for
taxes based on the income or profits of, and the depreciation and amortization
and non-cash charges of, a Restricted Subsidiary shall be added to Consolidated
Net Income to compute EBITDA only to the extent (and in the same proportion,
including by reason of minority interests) that the net income or loss of such
Restricted Subsidiary was included in calculating

<PAGE>
                                                                              16

Consolidated Net Income and only if a corresponding amount would be permitted at
the date of determination to be dividended to the Company by such Restricted
Subsidiary without prior approval (that has not been obtained), pursuant to the
terms of its charter and all agreements, instruments, judgments, decrees,
orders, statutes, rules and governmental regulations applicable to such
Restricted Subsidiary or its stockholders.

                  "Equity Offering" means (i) any primary public offering or
private placement to any Person of Capital Stock (other than Disqualified Stock)
of the Company or (ii) any cash capital contribution received by the Company
from any holder of Capital Stock of the Company and which is accounted for as
additional Capital Stock equity (other than Disqualified Stock).

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

                  "Free Cash Flow" for any period means EBITDA less the
following:

                  (1) all cash payments with respect to income taxes of the
         Company and its Restricted Subsidiaries;

                  (2) all cash payments with respect to Consolidated Interest
         Expense; and

                  (3) all cash capital expenditures of the Company and its
         Restricted Subsidiaries;

in each case for such period.

                  "GAAP" means generally accepted accounting principles in the
United States of America as in effect as of the Issue Date, including those set
forth in:

                  (1) the opinions and pronouncements of the Accounting
         Principles Board of the American Institute of Certified Public
         Accountants;

                  (2) statements and pronouncements of the Financial Accounting
         Standards Board; and

                  (3) such other statements by such other entity as approved by
         a significant segment of the accounting profession.

<PAGE>
                                                                              17

                  "Guarantee" means any obligation, contingent or otherwise, of
any Person directly or indirectly guaranteeing any Indebtedness of any Person
and any obligation, direct or indirect, contingent or otherwise, of such Person:

                  (1) to purchase or pay (or advance or supply funds for the
         purchase or payment of) such Indebtedness of such Person (whether
         arising by virtue of partnership arrangements, or by agreements to
         keep-well, to purchase assets, goods, securities or services, to
         take-or-pay or to maintain financial statement conditions or
         otherwise); or

                  (2) entered into for the purpose of assuring in any other
         manner the obligee of such Indebtedness of the payment thereof or to
         protect such obligee against loss in respect thereof (in whole or in
         part);

provided, however, that the term "Guarantee" shall not include endorsements for
collection or deposit in the ordinary course of business or any subordination of
claims. The term "Guarantee" used as a verb has a corresponding meaning. The
term "Guarantor" shall mean any Person Guaranteeing any obligation.

                  "Hedging Obligations" of any Person means the obligations of
such Person pursuant to any Interest Rate Agreement, Currency Agreement,
Hydrocarbon Agreement or Commodity Agreement.

                  "Holder" or "Securityholder" means the Person in whose name a
Security is registered on the Registrar's books.

                  "Hydrocarbon Agreement" means any purchase or hedging
agreement of hydrocarbons or refined products therefrom, future contract or
option, or any other agreement designed to protect against or manage exposure to
fluctuations in the price of hydrocarbons or refined products therefrom.

                  "Incur" means issue, assume, Guarantee, incur or otherwise
become liable for; provided, however, that any Indebtedness or Capital Stock of
a Person existing at the time such Person becomes a Restricted Subsidiary
(whether by merger, consolidation, acquisition or otherwise) shall

<PAGE>
                                                                              18

be deemed to be Incurred by such Person at the time it becomes a Restricted
Subsidiary. The term "Incurrence" when used as a noun shall have a corresponding
meaning. Solely for purposes of determining compliance with Section 4.03:

                  (1) amortization of debt discount or the accretion of
         principal with respect to a non-interest bearing or other discount
         security;

                  (2) the payment of regularly scheduled interest in the form of
         additional Indebtedness of the same instrument or the payment of
         regularly scheduled dividends on Capital Stock in the form of
         additional Capital Stock of the same class and with the same terms; and

                  (3) the obligation to pay a premium in respect of Indebtedness
         arising in connection with the issuance of a notice of redemption or
         making of a mandatory offer to purchase such Indebtedness

shall not be deemed to be the Incurrence of Indebtedness.

                  "Indebtedness" means, with respect to any Person on any date
of determination (without duplication):

                  (1) the principal in respect of (A) indebtedness of such
         Person for money borrowed and (B) indebtedness evidenced by notes,
         debentures, bonds or other similar instruments for the payment of which
         such Person is responsible or liable, including, in each case, any
         premium on such indebtedness to the extent such premium has become due
         and payable;

                  (2) all Capital Lease Obligations of such Person and all
         Attributable Debt in respect of Sale/Leaseback Transactions entered
         into by such Person;

                  (3) all obligations of such Person issued or assumed as the
         deferred purchase price of property, all conditional sale obligations
         of such Person and all obligations of such Person under any title
         retention agreement (but excluding trade accounts payable arising in
         the ordinary course of business);

<PAGE>
                                                                              19

                  (4) all obligations of such Person for the reimbursement of
         any obligor on any letter of credit, bankers' acceptance or similar
         credit transaction (other than obligations with respect to letters of
         credit securing obligations (other than obligations covered in clauses
         (1) through (3) above) entered into in the ordinary course of business
         of such Person to the extent such letters of credit are not drawn upon
         or, if and to the extent drawn upon, such drawing is reimbursed no
         later than the tenth Business Day following payment on the letter of
         credit);

                  (5) the amount of all obligations of such Person that arise
         prior to the first anniversary of the Stated Maturity of the Securities
         with respect to the redemption, repayment or other repurchase of any
         Capital Stock of such Person or any Subsidiary of such Person or that
         are determined by the value of such Capital Stock, the amount of such
         obligations to be determined in accordance with the Indenture (but
         excluding, in each case, any accrued dividends);

                  (6) all obligations of the type referred to in clauses (1)
         through (5) of other Persons and all dividends of other Persons for the
         payment of which, in either case, such Person is responsible or liable,
         directly or indirectly, as obligor, guarantor or otherwise, including
         by means of any Guarantee;

                  (7) all obligations of the type referred to in clauses (1)
         through (6) of other Persons secured by any Lien on any property or
         asset of such Person (whether or not such obligation is assumed by such
         Person), the amount of such obligation being deemed to be the lesser of
         the value of such property or assets and the amount of the obligation
         so secured; and

                  (8) to the extent not otherwise included in this definition,
         Hedging Obligations of such Person.

                  Notwithstanding the foregoing, in connection with the purchase
by the Company or any Restricted Subsidiary of any business, the term
"Indebtedness" shall exclude post-closing payment adjustments to which the
seller may become entitled to the extent such payment is determined by a final
closing balance sheet or such payment depends on the performance of such
business after the closing; provided,

<PAGE>
                                                                              20

however, that, at the time of closing, the amount of any such payment is not
determinable and, to the extent such payment thereafter becomes fixed and
determined, the amount is paid within 30 days thereafter.

                  The amount of Indebtedness of any Person at any date shall be
the outstanding balance at such date of all unconditional obligations as
described above and the maximum liability, upon the occurrence of the
contingency giving rise to the obligation, of any contingent obligations at such
date (but excluding penalties, indemnities and costs), provided, however, that
in the case of Indebtedness sold at a discount, the amount of such Indebtedness
at any time will be the accreted value thereof at such time.

                  "Indenture" means this Indenture as amended or supplemented
from time to time.

                  "Independent Qualified Party" means an investment banking
firm, accounting firm or appraisal firm of national standing in the United
States of the Company's choice; provided, however, that in each case such firm
is not an Affiliate of the Company.

                  "Intercompany Trade Arrangements" means transactions between
the Company and the Permitted Holder pursuant to which the Permitted Holder
sells hydrocarbons to the Company in the ordinary course of business and the
Company thereafter transfers the related trade payable to one or more of its
shareholders pending payment thereof and subsequently dividends or otherwise
transfers funds to such shareholder in an amount equal to such trade payable,
which amount is used by such shareholder to discharge such trade payable.

                  "Interest Rate Agreement" means in respect of a Person any
interest rate swap agreement, interest rate cap agreement or other financial
agreement or arrangement (including caps, swaps, floors, collars and similar
arrangements) designed to protect such Person against fluctuations in interest
rates.

                  "Investment" in any Person means any direct or indirect
advance, loan (other than advances to customers in the ordinary course of
business that are recorded as accounts receivable on the balance sheet of the
lender) or

<PAGE>
                                                                              21

other extensions of credit (including by way of Guarantee or similar
arrangement) or capital contribution to (by means of any transfer of cash or
other property to others or any payment for property or services for the account
or use of others), or any purchase or acquisition of Capital Stock, Indebtedness
or other similar instruments issued by such Person. Except as otherwise provided
for herein, the amount of an Investment shall be its fair value at the time the
Investment is made and without giving effect to subsequent changes in value.

                  For purposes of the definition of "Unrestricted Subsidiary",
the definition of "Restricted Payment" and Section 4.04,

                  (1) "Investment" shall include the portion (proportionate to
         the Company's equity interest in such Subsidiary) of the fair market
         value of the net assets of any Subsidiary of the Company at the time
         that such Subsidiary is designated an Unrestricted Subsidiary;
         provided, however, that upon a redesignation of such Subsidiary as a
         Restricted Subsidiary, the Company shall be deemed to continue to have
         a permanent "Investment" in an Unrestricted Subsidiary in an amount (if
         positive) equal to (x) the Company's "Investment" in such Subsidiary at
         the time of such redesignation less (y) the portion (proportionate to
         the Company's equity interest in such Subsidiary) of the fair market
         value of the net assets of such Subsidiary at the time of such
         redesignation; and

                  (2) any property transferred to or from an Unrestricted
         Subsidiary shall be valued at its fair market value at the time of such
         transfer, in each case as determined in good faith by the Board of
         Directors of the Company.

                  "Investment Grade Rating" means:

                  (1) A Moody's rating of Baa3 or higher and an S&P rating of at
         least BB+ or

                  (2) A Moody's rating of Ba1 or higher and an S&P rating of at
         least BBB-;

<PAGE>
                                                                              22

provided, however, that if (i)either Moody's or S&P changes its rating system,
such ratings will be the equivalent ratings after such changes or (ii) if S&P or
Moody's or both shall not make a rating of the Securities publicly available,
the references above to S&P or Moody's or both, as the case may be, shall be to
a nationally recognized U.S. rating agency or agencies, as the case may be,
selected by the Company, and the references to the ratings categories above
shall be to the corresponding rating categories of such rating agency or rating
agencies, as the case may be.

                  "Investment Grade Rating Event" means the first day on which
the Securities are assigned an Investment Grade Rating.

                  "Issue Date" means February 27, 2003.

                  "LCR" means Lyondell-CITGO Refining LP, a Delaware limited
partnership.

                  "Legal Holiday" means a Saturday, a Sunday or a day on which
banking institutions are not required to be open in the State of New York.

                  "Lien" means any mortgage, pledge, security interest,
encumbrance, lien or charge of any kind (including any conditional sale or other
title retention agreement or lease in the nature thereof).

                  "Material Investment" means an Investment which has, at the
time such Investment is made and without giving effect to subsequent changes in
value, a fair value in excess of $5 million.

                  "Moody's" means Moody's Investors Service, Inc. and its
successors.

                  "Net Available Cash" from an Asset Disposition means cash
payments received therefrom (including any cash payments received by way of
deferred payment of principal pursuant to a note or installment receivable or
otherwise and proceeds from the sale or other disposition of any securities
received as consideration, but only as and when received, but excluding any
other consideration received in the form of assumption by the acquiring Person
of Indebtedness or other obligations relating to such

<PAGE>
                                                                              23

properties or assets or received in any other non-cash form), in each case net
of:

                  (1) all legal, title and recording tax expenses, commissions
         and other fees and expenses incurred, and all Federal, state,
         provincial, foreign and local taxes required to be accrued as a
         liability under GAAP, as a consequence of such Asset Disposition;

                  (2) all payments made on any Indebtedness which is secured by
         any assets subject to such Asset Disposition, in accordance with the
         terms of any Lien upon or other security agreement of any kind with
         respect to such assets, or which must by its terms, or in order to
         obtain a necessary consent to such Asset Disposition, or by applicable
         law, be repaid out of the proceeds from such Asset Disposition;

                  (3) all distributions and other payments required to be made
         to minority interest holders in Restricted Subsidiaries as a result of
         such Asset Disposition; and

                  (4) the deduction of appropriate amounts provided by the
         seller as a reserve, in accordance with GAAP, against any liabilities
         associated with the property or other assets disposed in such Asset
         Disposition and retained by the Company or any Restricted Subsidiary
         after such Asset Disposition.

                  "Net Cash Proceeds", with respect to any issuance or sale of
Capital Stock or Indebtedness, means the cash proceeds of such issuance or sale
net of attorneys' fees, accountants' fees, underwriters' or placement agents'
fees, discounts or commissions and brokerage, consultant and other fees actually
Incurred in connection with such issuance or sale and net of taxes paid or
payable as a result thereof.

                  "New Credit Agreement" means the credit agreement that the
Company expects to enter into on or about the Issue Date or, if the Company does
not enter into such credit agreement, any other credit agreement entered into by
the Company in substitution therefor which has terms equivalent to and, in any
event no less favorable to the Securityholders than, those of the expected
credit agreement, together with the related documents thereto

<PAGE>
                                                                              24

(including the term loan or revolving loan facility, note purchase or placement
facility, letter of credit facility or other arrangement for the extension of
credit thereunder, any guarantees and security documents), as amended, extended,
renewed, restated, supplemented or otherwise modified (in whole or in part, and
without limitation as to amount, terms, conditions, covenants and other
provisions) from time to time, and any agreement (and related document)
governing Indebtedness Incurred to Refinance, in whole or in part, the
borrowings and commitments then outstanding or permitted to be outstanding under
such credit agreement or a successor credit agreement, whether by the same or
any other lender or group of lenders.

                  "Obligations" means, with respect to any Indebtedness, all
obligations for principal, premium, interest, penalties, fees, indemnifications,
reimbursements, and other amounts payable pursuant to the documentation
governing such Indebtedness.

                  "Offering Circular" means the Confidential Offering Circular
dated February 20, 2003 relating to the Initial Securities.

                  "Officer" means the Chairman of the Board, the President, any
Vice President, the Treasurer or the Secretary of the Company.

                  "Officers' Certificate" means a certificate signed by two
Officers.

                  "Opinion of Counsel" means a written opinion from legal
counsel who is acceptable to the Trustee. The counsel may be an employee of or
counsel to the Company or the Trustee.

                  "Ordinary Course Guarantees" means Guarantees issued by the
Company or any Restricted Subsidiary in the ordinary course of business with
respect to Indebtedness of any distributor or customer of the Company's or any
Restricted Subsidiary's products in an amount which, when taken together with
the amount of all other outstanding Ordinary Course Guarantees, does not exceed
$35 million.

                  "PDV America" means PDV America, Inc., a Delaware corporation.

<PAGE>
                                                                              25

                  "Permitted Holder" means Petroleos de Venezuela, SA, a
corporation organized in Venezuela, and its wholly owned Subsidiaries.

                  "Permitted Investment" means an Investment by the Company or
any Restricted Subsidiary in:

                  (1) the Company, a Restricted Subsidiary, a government or any
         agency or political subdivision thereof holding Indebtedness of the
         Company or a Restricted Subsidiary in a principal amount equal to, and
         Incurred by the Company or such Restricted Subsidiary to provide credit
         support for, such Person's issuance of industrial revenue or similar
         tax-exempt bonds for the benefit of the Company or such Restricted
         Subsidiary or a Person that will, upon the making of such Investment,
         become a Restricted Subsidiary; provided, however, that the primary
         business of such Restricted Subsidiary is a Related Business;

                  (2) another Person if, as a result of such Investment, such
         other Person is merged or consolidated with or into, or transfers or
         conveys all or substantially all its assets to, the Company or a
         Restricted Subsidiary; provided, however, that such Person's primary
         business is a Related Business;

                  (3) cash and Temporary Cash Investments;

                  (4) receivables owing to the Company or any Restricted
         Subsidiary if created or acquired in the ordinary course of business
         and payable or dischargeable in accordance with customary trade terms;
         provided, however, that such trade terms may include such concessionary
         trade terms as the Company or any such Restricted Subsidiary deems
         reasonable under the circumstances;

                  (5) payroll, travel and similar advances to cover matters that
         are expected at the time of such advances ultimately to be treated as
         expenses for accounting purposes and that are made in the ordinary
         course of business;

                  (6) loans or advances to employees made in the ordinary course
         of business consistent with past practices of the Company or such
         Restricted Subsidiary;

<PAGE>
                                                                              26

                  (7) stock, obligations or securities received in settlement of
         debts created in the ordinary course of business and owing to the
         Company or any Restricted Subsidiary or in satisfaction of judgments;

                  (8) any Person to the extent such Investment represents the
         non-cash portion of the consideration received for an Asset Disposition
         as permitted pursuant to Section 4.06;

                  (9) any Person where such Investment was acquired by the
         Company or any of its Restricted Subsidiaries (a) in exchange for any
         other Investment or accounts receivable held by the Company or any such
         Restricted Subsidiary in connection with or as a result of a
         bankruptcy, workout, reorganization or recapitalization of the issuer
         of such other Investment or accounts receivable or (b) as a result of a
         foreclosure by the Company or any of its Restricted Subsidiaries with
         respect to any secured Investment or other transfer of title with
         respect to any secured Investment in default;

                  (10) any Person to the extent such Investments consist of
         prepaid expenses, negotiable instruments held for collection and lease,
         utility and workers' compensation, performance and other similar
         deposits made in the ordinary course of business by the Company or any
         Restricted Subsidiary;

                  (11) any Person to the extent such Investments consist of
         Hedging Obligations otherwise not prohibited under the covenant
         described under Section 4.03;

                  (12) any Person to the extent such Investments are in
         existence on the Issue Date;

                  (13) LCR to the extent such Investments do not exceed, in the
         aggregate, the aggregate amount of cash dividends distributed after the
         Issue Date by LCR to the Company; provided, however, that such cash
         dividends have not previously served as the basis for

<PAGE>
                                                                              27

         a Restricted Payment made pursuant to the covenant described under
         Section 4.04;

                  (14) LCR to the extent such Investments do not exceed $25
         million in the aggregate outstanding at any time; and

                  (15) Persons to the extent such Investments, when taken
         together with all other Investments made pursuant to this clause (15)
         and then outstanding, do not exceed $75 million.

                  "Permitted Liens" means, with respect to any Person,

                  (1) pledges or deposits by such Person under worker's
         compensation laws, unemployment insurance laws or similar legislation,
         or good faith deposits in connection with bids, tenders, contracts
         (other than for the payment of Indebtedness) or leases to which such
         Person is a party, or deposits to secure public or statutory
         obligations of such Person or deposits of cash or United States
         government bonds to secure surety or appeal bonds to which such Person
         is a party, or deposits as security for contested taxes or import
         duties or for the payment of rent, in each case Incurred in the
         ordinary course of business;

                  (2) Liens imposed by law, such as carriers', warehousemen's,
         materialmen's and mechanics' Liens, in each case for sums which are not
         overdue by a period of more than 45 days or which are being contested
         in good faith by appropriate proceedings or other Liens arising out of
         judgments or awards against such Person with respect to which such
         Person shall then be proceeding with an appeal or other proceedings for
         review and Liens arising solely by virtue of any statutory or common
         law provision relating to banker's Liens, rights of set-off or similar
         rights and remedies as to deposit accounts or other funds maintained
         with a creditor depository institution; provided, however, that (A)
         such deposit account is not a dedicated cash collateral account and is
         not subject to restrictions against access by the Company in excess of
         those set forth by regulations promulgated by the Federal Reserve Board
         and (B) such deposit account is not intended by the Company or any
         Restricted Subsidiary to provide collateral to the depository
         institution;

<PAGE>
                                                                              28

                  (3) Liens for property taxes not yet subject to penalties for
         non-payment or which are being contested in good faith by appropriate
         proceedings;

                  (4) Liens in favor of issuers of surety bonds or letters of
         credit issued pursuant to the request of and for the account of such
         Person in the ordinary course of its business; provided, however, that
         such letters of credit do not constitute Indebtedness;

                  (5) Liens incidental to the normal conduct of the business of
         such Person or any of its Subsidiaries or the ownership of its
         properties or the conduct of the ordinary course of its business,
         including (A) zoning restrictions, easements, rights of way,
         reservations, restrictions on the use of real property and other minor
         irregularities of title, (B) rights of lessees under leases, (C) rights
         of collecting banks having rights of setoff, revocation, refund or
         chargeback with respect to money or instruments of such Person or any
         of its Subsidiaries on deposit with or in the possession of such banks,
         (D) Liens to secure the performance of statutory obligations, tenders,
         bids, leases, progress payments, performance or return-of-money bonds,
         performance or other similar bonds or other obligations of a similar
         nature incurred in the ordinary course of business; (E) Liens required
         by any contract or statute in order to permit such Person or any of its
         Subsidiaries to perform any contract or subcontract made by it with or
         pursuant to the requirements of a governmental entity, and (F) "first
         purchaser" Liens on crude oil, in each case which are not incurred in
         connection with the Incurrence of Indebtedness and which do not in the
         aggregate impair the use and operation of the assets to which they
         relate in the conduct of the business of such Person and its
         Subsidiaries taken as a whole;

                  (6) Liens securing Indebtedness Incurred to finance the
         construction, purchase or lease of, or repairs, improvements or
         additions to, property, plant or equipment of such Person; provided,
         however, that the Lien may not extend to any other property owned by
         such Person or any of its Restricted Subsidiaries at

<PAGE>
                                                                              29

         the time the Lien is Incurred (other than assets and property affixed
         or appurtenant thereto), and the Indebtedness (other than any interest
         thereon) secured by the Lien may not be Incurred more than 180 days
         after the later of the acquisition, completion of construction, repair,
         improvement, addition or commencement of full operation of the property
         subject to the Lien;

                  (7) Liens to secure Indebtedness pursuant to Section
         4.03(b)(1) or 4.03(b)(3);

                  (8) Liens on the Capital Stock of the Pledged Entities to
         secure Indebtedness Incurred pursuant to Section 4.03(b)(2);

                  (9) Liens existing on the Issue Date;

                  (10) Liens on property or shares of Capital Stock of another
         Person at the time such other Person becomes a Subsidiary of such
         Person; provided, however, that the Liens may not extend to any other
         property owned by such Person or any of its Restricted Subsidiaries
         (other than assets affixed or appurtenant thereto);

                  (11) Liens on property at the time such Person or any of its
         Subsidiaries acquires the property, including any acquisition by means
         of a merger or consolidation with or into such Person or a Subsidiary
         of such Person; provided, however, that the Liens may not extend to any
         other property owned by such Person or any of its Restricted
         Subsidiaries (other than assets and property affixed or appurtenant
         thereto);

                  (12) Liens securing Indebtedness or other obligations of a
         Subsidiary of such Person owing to such Person or a Restricted
         Subsidiary;

                  (13) Liens securing Hedging Obligations permitted to be
         Incurred under this Indenture;

                  (14) customary Liens incurred by the Company or any Restricted
         Subsidiary and resulting from a Qualified Receivables Transaction;

<PAGE>
                                                                              30

                  (15) Liens on properties securing all or part of the costs
         incurred in the ordinary course of business of exploration, drilling,
         development or operation thereof;

                  (16) Liens on pipeline or pipeline facilities which arise out
         of operation of law;

                  (17) Liens reserved in oil and gas mineral leases for bonus or
         rental payments and for compliance with the terms of such leases;

                  (18) Liens arising under partnership agreements, oil and gas
         leases, farm-out agreements, division orders, contracts for the sale,
         purchase, exchange, transportation or processing of oil, gas or other
         hydrocarbons, unitization and pooling declarations and agreements,
         development agreements, operating agreements, area of mutual interest
         agreements, and other agreements which are customary in a Related
         Business; and

                  (19) Liens to secure any Refinancing (or successive
         Refinancings) as a whole, or in part, of any Indebtedness secured by
         any Lien referred to in the foregoing clause (6), (9) or (11);
         provided, however, that:

                           (A) such new Lien shall be limited to all or part of
                  the same property and assets that secured or, under the
                  written agreements pursuant to which the original Lien arose,
                  could secure the original Lien (plus improvements and
                  accessions to, such property or proceeds or distributions
                  thereof); and

                           (B) the Indebtedness secured by such Lien at such
                  time is not increased to any amount greater than the sum of
                  (x) the outstanding principal amount or, if greater, committed
                  amount of the Indebtedness described under clause (6), (9) or
                  (11), at the time the original Lien became a Permitted Lien
                  and (y) an amount necessary to pay any fees and expenses,
                  including premiums, related to such refinancing, refunding,
                  extension, renewal or replacement.

<PAGE>
                                                                              31

Notwithstanding the foregoing, "Permitted Liens" shall not include any Lien
described in clauses (6), (9) or (11) above to the extent such Lien applies to
any Additional Assets acquired directly or indirectly from Net Available Cash
pursuant to Section 4.06. For purposes of this definition, the term
"Indebtedness" shall be deemed to include interest on such Indebtedness.

                  "Person" means any individual, corporation, partnership,
limited liability company, joint venture, association, joint-stock company,
trust, unincorporated organization, government or any agency or political
subdivision thereof or any other entity.

                  "Pledged Entities" means CITGO Pipeline I and CITGO Pipeline
II.

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

                  "principal" of a Security means the principal of the Security
plus the premium, if any, payable on the Security which is due or overdue or is
to become due at the relevant time.

                  "Principal Property"  means:

                  (1) any refinery and related pipelines, terminalling and
         processing equipment; or

                  (2) any other real property or marketing assets or related
         group of our assets having a fair market value in excess of $20
         million.

                  "Qualified Receivables Transaction" means any transaction or
series of transactions entered into by the Company or any of its Restricted
Subsidiaries pursuant to which the Company or any of its Restricted Subsidiaries
sells, conveys or otherwise transfers to (i) a Receivables Subsidiary (in the
case of a transfer by the Company or any of its Restricted Subsidiaries) and
(ii) any other Person (in the case of a transfer by a Receivables Subsidiary),
or

<PAGE>
                                                                              32

grants a security interest in, any accounts receivable (whether now existing or
arising in the future) of the Company or any of its Restricted Subsidiaries, and
any assets related thereto, including all collateral securing such accounts
receivable, all contracts and all guarantees or other obligations in respect of
such accounts receivable, proceeds of such accounts receivable and other assets
which are customarily transferred or in respect of which security interests are
customarily granted in connection with asset securitization transactions
involving accounts receivable; provided, however, that the accounts receivable
of the Company or any of its Restricted Subsidiaries subject to all Qualified
Receivables Transactions and outstanding on the date any such accounts
receivable are transferred by the Company or a Restricted Subsidiary have,
together with the accounts receivable transferred on such date, a balance that
does not exceed in the aggregate the greater of (A) $400,000,000 and (B) 5% of
net sales of the Company and its Restricted Subsidiaries during the four fiscal
quarter period ending on the last day of the most recent fiscal quarter for
which the Company has issued consolidated financial statements.

                  "Receivables Subsidiary" means a Subsidiary of the Company
which engages in no activities other than in connection with the financing of
accounts receivables and which is designated by the Board of Directors of the
Company (as provided below) as a Receivables Subsidiary (a) no portion of the
Indebtedness or any other Obligations (contingent or otherwise) of which (i) is
Guaranteed by the Company or any of its Restricted Subsidiaries (but excluding
customary representations, warranties, covenants and indemnities entered into in
the ordinary course of business in connection with a Qualified Receivables
Transaction), (ii) is recourse to or obligates the Company or any of its
Restricted Subsidiaries in any way other than pursuant to customary
representations, warranties, covenants and indemnities entered into in
connection with a Qualified Receivables Transaction or (iii) subjects any
property or asset of the Company or any of its Restricted Subsidiaries (other
than accounts receivable and interests therein and related assets as provided in
the definition of "Qualified Receivables Transaction"), directly or indirectly,
contingently or otherwise, to the satisfaction thereof, other than pursuant to
customary representations, warranties, covenants and indemnities entered into in
the

<PAGE>
                                                                              33

ordinary course of business in connection with a Qualified Receivables
Transaction, (b) with which neither the Company nor any of its Restricted
Subsidiaries has any material contract, agreement, arrangement or understanding
other than on terms no less favorable to the Company or such Restricted
Subsidiary than those that might be obtained at the time from Persons who are
not Affiliates of the Company, other than fees payable in the ordinary course of
business in connection with servicing accounts receivable and (c) with which
neither the Company nor any of its Restricted Subsidiaries has any obligation to
maintain or preserve such Subsidiary's financial condition or cause such
Subsidiary to achieve certain levels of operating results. Any such designation
by the Board of Directors of the Company will be evidenced to the Trustee by
filing with the Trustee a certified copy of the resolution of the Board of
Directors of the Company giving effect to such designation and an Officers'
Certificate certifying that such designation complied with the foregoing
conditions.

                  "Reference Period" means, with respect to any Restricted
Payment, the period consisting of the most recent consecutive fiscal quarters
(not to exceed 4) of the Company commencing no earlier than January 1, 2003, and
ending at least 45 days prior to the date such Restricted Payment is made.

                  "Refinance" means, in respect of any Indebtedness, to
refinance, extend, renew, refund, repay, prepay, redeem, defease or retire, or
to issue other Indebtedness in exchange or replacement for, such Indebtedness.
"Refinanced" and "Refinancing" shall have correlative meanings.

                  "Refinancing Indebtedness" means Indebtedness that Refinances
any Indebtedness of the Company or any Restricted Subsidiary existing on the
Issue Date or Incurred in compliance with this Indenture, including Indebtedness
that Refinances Refinancing Indebtedness; provided, however, that:

                  (1) such Refinancing Indebtedness has a Stated Maturity no
         earlier than the Stated Maturity of the Indebtedness being Refinanced;

                  (2) such Refinancing Indebtedness has an Average Life at the
         time such Refinancing Indebtedness is

<PAGE>
                                                                              34

         Incurred that is equal to or greater than the Average Life of the
         Indebtedness being Refinanced;

                  (3) such Refinancing Indebtedness has an aggregate principal
         amount (or if Incurred with original issue discount, an aggregate issue
         price) that is equal to or less than the aggregate principal amount (or
         if Incurred with original issue discount, the aggregate accreted value)
         then outstanding or committed (plus fees and expenses, including any
         premium and defeasance costs) under the Indebtedness being Refinanced;
         and

                  (4) if the Indebtedness being Refinanced is subordinated in
         right of payment to the Securities, such Refinancing Indebtedness is
         subordinated in right of payment to the Securities at least to the same
         extent as the Indebtedness being Refinanced;

provided further, however, that Refinancing Indebtedness shall not include (A)
Indebtedness of a Subsidiary that Refinances Indebtedness of the Company or (B)
Indebtedness of the Company or a Restricted Subsidiary that Refinances
Indebtedness of an Unrestricted Subsidiary.

                  "Related Business" means any business in which the Company was
engaged on the Issue Date and any business related, ancillary or complementary
to any business of the Company in which the Company was engaged on the Issue
Date.

                  "Restricted Payment" with respect to any Person means

                  (1) the declaration or payment of any dividends or any other
         distributions of any sort in respect of its Capital Stock (including
         any payment in connection with any merger or consolidation involving
         such Person) or similar payment to the direct or indirect holders of
         its Capital Stock (other than dividends or distributions payable solely
         in its Capital Stock (other than Disqualified Stock) and dividends or
         distributions payable solely to the Company or a Restricted Subsidiary,
         and other than pro rata dividends or other distributions made by a
         Subsidiary that is not a Wholly Owned Subsidiary to minority
         stockholders (or owners of an equivalent interest in the case of a
         Subsidiary that is an entity other than a corporation));

<PAGE>
                                                                              35

                  (2) the purchase, redemption or other acquisition or
         retirement for value of any Capital Stock of the Company held by any
         Person or of any Capital Stock of a Restricted Subsidiary held by any
         Affiliate of the Company (other than a Restricted Subsidiary),
         including in connection with any merger or consolidation and including
         the exercise of any option to exchange any Capital Stock (other than
         into Capital Stock of the Company that is not Disqualified Stock);

                  (3) the purchase, repurchase, redemption, defeasance or other
         acquisition or retirement for value, prior to scheduled maturity,
         scheduled repayment or scheduled sinking fund payment of any
         Subordinated Obligations of such Person (other than the purchase,
         repurchase or other acquisition of Subordinated Obligations purchased
         in anticipation of satisfying a sinking fund obligation, principal
         installment or final maturity, in each case due within one year of the
         date of such purchase, repurchase or other acquisition); or

                  (4) the making of any Investment (other than a Permitted
         Investment) in any Person.

Notwithstanding the foregoing, Intercompany Trade Arrangements shall not be
included in the definition of "Restricted Payment."

                  "Restricted Subsidiary" means any Subsidiary of the Company
that is not an Unrestricted Subsidiary.

                  "Sale/Leaseback Transaction" means an arrangement
relating to property owned the Company or a Restricted Subsidiary on the Issue
Date or thereafter acquired by the Company or a Restricted Subsidiary whereby
the Company or a Restricted Subsidiary transfers such property to a Person and
the Company or a Restricted Subsidiary leases it from such Person.

                  "S&P" means Standard & Poor's Ratings Group, a division of The
McGraw-Hill Companies, Inc., and its successors.

<PAGE>
                                                                              36

                  "SEC" means the U.S. Securities and Exchange Commission.

                  "Securities" means the Securities issued under this Indenture,
including the Initial Securities, the Exchange Securities and the Private
Exchange Securities.

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

                  "Senior Indebtedness" means with respect to any Person:

                  (1) Indebtedness of such Person, whether outstanding on the
         Issue Date or thereafter Incurred; and

                  (2) all other Obligations of such Person (including interest
         accruing on or after the filing of any petition in bankruptcy or for
         reorganization relating to such Person whether or not post-filing
         interest is allowed in such proceeding) in respect of Indebtedness
         described in clause (1) above,

unless, in the case of clauses (1) and (2), in the instrument creating or
evidencing the same or pursuant to which the same is outstanding, it is provided
that such Indebtedness or other Obligations are subordinate in right of payment
to the Securities; provided, however, that Senior Indebtedness shall not
include:

                  (1) any obligation of such Person to the Company or any
         Subsidiary of the Company;

                  (2) any liability for Federal, state, local or other taxes
         owed or owing by such Person;

                  (3) any accounts payable or other liability to trade creditors
         arising in the ordinary course of business (including guarantees
         thereof or instruments evidencing such liabilities);

                  (4) any Indebtedness or other Obligation of such Person which
         is subordinate or junior in any respect to any other Indebtedness or
         other Obligation of such Person; or

<PAGE>
                                                                              37

                  (5) that portion of any Indebtedness which at the time of
         Incurrence is Incurred in violation of this Indenture.

                  "Significant Subsidiary" means any Restricted Subsidiary that
would be a "Significant Subsidiary" of the Company within the meaning of Rule
1-02 under Regulation S-X promulgated by the SEC.

                  "Stated Maturity" means, with respect to any security, the
date specified in such security as the fixed date on which the final payment of
principal of such security is due and payable, including pursuant to any
mandatory redemption provision (but excluding any provision providing for the
repurchase of such security at the option of the holder thereof upon the
happening of any contingency unless such contingency has occurred).

                  "Subordinated Obligation" means, with respect to any Person,
any Indebtedness of such Person (whether outstanding on the Issue Date or
thereafter Incurred) which is subordinate or junior in right of payment to the
Securities or a Subsidiary Guaranty of such Person, as the case may be, pursuant
to a written agreement to that effect.

                  "Subsidiary" means, with respect to any Person, any
corporation, association, partnership or other business entity of which more
than 50% of the total voting power of shares of Voting Stock is at the time
owned or controlled, directly or indirectly, by: (1) such Person; (2) such
Person and one or more Subsidiaries of such Person; or (3) one or more
Subsidiaries of such Person.

                  "Subsidiary Guarantor" means any Restricted Subsidiary of the
Company if and so long as such Restricted Subsidiary guarantees payment of the
Securities on the terms and conditions set forth in the Indenture. As of the
Issue Date there are no Subsidiary Guarantors.

                  "Subsidiary Guaranty" means a Guarantee by a Subsidiary
Guarantor of the Company's obligations with respect to the Securities.

                  "Temporary Cash Investments" means any of the following:

<PAGE>
                                                                              38

                  (1) any investment in direct obligations of the United States
         of America or any agency thereof or obligations guaranteed by the
         United States of America or any agency thereof;

                  (2) investments in demand and time deposit accounts,
         certificates of deposit, eurodollar time deposits and money market
         deposits maturing within 360 days of the date of acquisition thereof
         issued by a bank or trust company which is organized under the laws of
         the United States of America, any State thereof or any foreign country
         recognized by the United States of America, and which bank or trust
         company has capital, surplus and undivided profits aggregating in
         excess of $50 million (or the foreign currency equivalent thereof) and
         has outstanding debt that is rated "A" (or such similar equivalent
         rating) or higher by at least one nationally recognized statistical
         rating organization (as defined in Rule 436 under the Securities Act)
         or any money-market fund sponsored by a registered broker dealer or
         mutual fund distributor;

                  (3) repurchase obligations with a term of not more than 30
         days for underlying securities of the types described in clause (1)
         above entered into with a bank meeting the qualifications described in
         clause (2) above;

                  (4) investments in commercial paper, maturing not more than
         360 days after the date of acquisition, issued by a corporation (other
         than an Affiliate of the Company) organized and in existence under the
         laws of the United States of America or any foreign country recognized
         by the United States of America with a rating at the time as of which
         any investment therein is made of "P-2" (or higher) according to
         Moody's or "A-2" (or higher) according to S&P; and

                  (5) investments in securities with maturities of six months or
         less from the date of acquisition issued or fully guaranteed by any
         state, commonwealth or territory of the United States of America, or by
         any political subdivision or taxing authority thereof, and rated at
         least "A" by S&P or "A2" by Moody's;

<PAGE>
                                                                              39

provided, however, that if S&P or Moody's or both shall not make ratings of
commercial paper of the type referred to in clause (4) above or securities of
the type referred to in clause (5) above publicly available, the references in
clause (4) or (5) or both, as the case may be, to S&P or Moody's or both, as the
case may be, shall be to a nationally recognized U.S. rating agency or agencies,
as the case may be, selected by the Company, and the references to the ratings
categories in clause (4) or (5) or both, as the case may be, shall be to the
corresponding rating categories of such rating agency or rating agencies, as the
case may be.

                  "364-Day Credit Agreement" means the 364-day credit agreement
entered into as of December 11, 2002, among the Company, the lenders referred to
therein and Bank of America, N.A. as Administrative Agent, together with the
related documents thereto (including the revolving loan facility, note purchase
or placement facility, letter of credit facility or other arrangement for the
extension of credit thereunder, any guarantees and security documents), as
amended, extended, renewed, restated, supplemented or otherwise modified (in
whole or in part, and without limitation as to amount, terms, conditions,
covenants and other provisions) from time to time, and any agreement (and
related document) governing Indebtedness incurred to Refinance, in whole or in
part, the borrowings and commitments then outstanding or permitted to be
outstanding under such credit agreement or a successor credit agreement, whether
by the same or any other lender or group of lenders.

                  "Three-Year Credit Agreement" means the three-year credit
agreement entered into as of December 11, 2002, among the Company, the lenders
referred to therein and Bank of America, N.A. as Administrative Agent, together
with the related documents thereto (including the revolving loan facility, note
purchase or placement facility, letter of credit facility or other arrangement
for the extension of credit thereunder, any guarantees and security documents),
as amended, extended, renewed, restated, supplemented or otherwise modified (in
whole or in part, and without limitation as to amount, terms, conditions,
covenants and other provisions) from time to time, and any agreement (and
related document) governing Indebtedness incurred to Refinance, in whole or in
part, the borrowings and

<PAGE>
                                                                              40

commitments then outstanding or permitted to be outstanding under such credit
agreement or a successor credit agreement, whether by the same or any other
lender or group of lenders.

                  "Trust Indenture Act" or "TIA" means the Trust Indenture Act
of 1939 (15 U.S.C. Sections 77aaa-77bbbb) as in effect on the Issue Date.

                  "Trust Officer" means the Chairman of the Board, the President
or any other officer or assistant officer of the Trustee assigned by the Trustee
to administer its corporate trust matters.

                  "Trustee" means the party named as such in this Indenture
until a successor replaces it and, thereafter, means the successor.

                  "Uniform Commercial Code" means the New York Uniform
Commercial Code as in effect from time to time.

                  "Unrestricted Subsidiary" means:

                  (1) any Subsidiary of the Company that at the time of
         determination shall be designated an Unrestricted Subsidiary by the
         Board of Directors of the Company in the manner provided below; and

                  (2) any Subsidiary of an Unrestricted Subsidiary.

The Board of Directors of the Company may designate any Subsidiary of the
Company (including any newly acquired or newly formed Subsidiary) to be an
Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries owns
any Capital Stock or Indebtedness of, or holds any Lien on any property of, the
Company or any other Subsidiary of the Company that is not a Subsidiary of the
Subsidiary to be so designated or an Unrestricted Subsidiary; provided, however,
that either (A) the Subsidiary to be so designated has total assets of $1,000 or
less or (B) if such Subsidiary has assets greater than $1,000, such designation
would be permitted under Section 4.04. The Board of Directors of the Company may
designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided,
however, that immediately after giving effect to such designation (A) the
Company could Incur $1.00 of additional

<PAGE>
                                                                              41

Indebtedness under Section 4.03(a) and (B) no Default shall have occurred and be
continuing. Any such designation by the Board of Directors of the Company shall
be evidenced to the Trustee by promptly filing with the Trustee a copy of the
resolution of the Board of Directors of the Company giving effect to such
designation and an Officers' Certificate certifying that such designation
complied with the foregoing provisions.

                  "U.S. Government Obligations" means direct obligations (or
certificates representing an ownership interest in such obligations) of the
United States of America (including any agency or instrumentality thereof) for
the payment of which the full faith and credit of the United States of America
is pledged and which are not callable at the issuer's option.

                  "Voting Stock" of a Person means all classes of Capital Stock
or other interests (including partnership interests) of such Person then
outstanding and normally entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees thereof.

                  "Wholly Owned Subsidiary" means a Restricted Subsidiary all
the Capital Stock of which (other than directors' qualifying shares) is owned by
the Company or one or more Wholly Owned Subsidiaries.

                  SECTION 1.02. Other Definitions.

<Table>
<Caption>
                                                                   Defined in
                                   Term                             Section
                                   ----                            ----------
<S>                                                                <C>

           "Affiliate Transaction"..............................   4.07
           "Bankruptcy Law".....................................   6.01
           "Custodian"..........................................   6.01
           "Event of Default"...................................   6.01
           "legal defeasance option"............................   8.01(b)
           "Offer"..............................................   4.06(b)
           "Offer Amount".......................................   4.06(c)(2)
           "Offer Period".......................................   4.06(c)(2)
           "Paying Agent".......................................   2.03
           "Purchase Date"......................................   4.06
           "Registrar"..........................................   2.03
           "Successor Company"..................................   5.01(1)
</Table>

<PAGE>
                                                                              42

                  SECTION 1.02. Incorporation by Reference of Trust Indenture
Act. This Indenture is subject to the mandatory provisions of the TIA which are
incorporated by reference in and made a part of this Indenture. The following
TIA terms have the following meanings:

                  "Commission" means the SEC;

                  "indenture securities" means the Securities;

                  "indenture security holder" means a Securityholder;

                  "indenture to be qualified" means this Indenture;

                  "indenture trustee" or "institutional trustee" means the
Trustee; and

                  "obligor" on the indenture securities means the Company and
any other obligor on the indenture securities.

                  All other TIA terms used in this Indenture that are defined by
the TIA, defined by TIA reference to another statute or defined by SEC rule have
the meanings assigned to them by such definitions.

                  SECTION 1.03. Rules of Construction. Unless the context
otherwise requires:

                  (1) a term has the meaning assigned to it;

                  (2) an accounting term not otherwise defined has the meaning
         assigned to it in accordance with GAAP;

                  (3) "or" is not exclusive;

                  (4) "including" means including without limitation;

                  (5) words in the singular include the plural and words in the
         plural include the singular;

                  (6) unsecured Indebtedness shall not be deemed to be
         subordinate or junior to secured Indebtedness merely by virtue of its
         nature as unsecured Indebtedness;

<PAGE>
                                                                              43

                  (7) the principal amount of any noninterest bearing or other
         discount security at any date shall be the principal amount thereof
         that would be shown on a balance sheet of the issuer dated such date
         prepared in accordance with GAAP;

                  (8) the principal amount of any Preferred Stock shall be (i)
         the maximum liquidation value of such Preferred Stock or (ii) the
         maximum mandatory redemption or mandatory repurchase price with respect
         to such Preferred Stock, whichever is greater; and

                  (9) all references to the date the Initial Securities were
         originally issued shall refer to the Issue Date.

                                    ARTICLE 2

                                 The Securities

                  SECTION 2.01. Form and Dating. Provisions relating to the
Initial Securities, the Private Exchange Securities and the Exchange Securities
are set forth in the Rule 144A/Regulation S Appendix attached hereto (the
"Appendix") which is hereby incorporated in and expressly made part of this
Indenture. The Initial Securities and the Trustee's certificate of
authentication shall be substantially in the form of Exhibit 1 to the Appendix
which is hereby incorporated in and expressly made a part of this Indenture. The
Exchange Securities, the Private Exchange Securities and the Trustee's
certificate of authentication shall be substantially in the form of Exhibit A,
which is hereby incorporated in and expressly made a part of this Indenture. The
Securities may have notations, legends or endorsements required by law, stock
exchange rule, agreements to which the Company is subject, if any, or usage
(provided that any such notation, legend or endorsement is in a form acceptable
to the Company). Each Security shall be dated the date of its authentication.
The terms of the Securities set forth in the Appendix and Exhibit A are part of
the terms of this Indenture.

                  SECTION 2.02. Execution and Authentication. Two Officers shall
sign the Securities for the Company by manual or facsimile signature.

<PAGE>
                                                                              44

                  If an Officer whose signature is on a Security no longer holds
that office at the time the Trustee authenticates the Security, the Security
shall be valid nevertheless.

                  A Security shall not be valid until an authorized signatory of
the Trustee manually signs the certificate of authentication on the Security.
The signature shall be conclusive evidence that the Security has been
authenticated under this Indenture.

                  On the Issue Date, the Trustee shall authenticate and deliver
$550 million of 11 3/8% Senior Notes Due 2011 and, at any time and from time to
time thereafter, the Trustee shall authenticate and deliver Securities for
original issue in an aggregate principal amount specified in such order, in each
case upon a written order of the Company signed by two Officers or by an Officer
and either an Assistant Treasurer or an Assistant Secretary of the Company. Such
order shall specify the amount of the Securities to be authenticated and the
date on which the original issue of Securities is to be authenticated and, in
the case of an issuance of Additional Securities pursuant to Section 2.13 after
the Issue Date, shall certify that such issuance is in compliance with Section
4.03.

                  The Trustee may appoint an authenticating agent reasonably
acceptable to the Company to authenticate the Securities. Unless limited by the
terms of such appointment, an authenticating agent may authenticate Securities
whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as any Registrar, Paying Agent or agent
for service of notices and demands.

                  SECTION 2.03. Registrar and Paying Agent. The Company shall
maintain an office or agency where Securities may be presented for registration
of transfer or for exchange (the "Registrar") and an office or agency where
Securities may be presented for payment (the "Paying Agent"). The Registrar
shall keep a register of the Securities and of their registration of transfer
and exchange. The Company may have one or more co-registrars and one or more
additional paying agents. The term "Paying Agent" includes any additional paying
agent.

<PAGE>
                                                                              45

                  The Company shall enter into an appropriate agency agreement
with any Registrar, Paying Agent or co-registrar not a party to this Indenture,
which shall incorporate the terms of the TIA. The agency agreement shall
implement the provisions of this Indenture that relate to such agent. The
Company shall notify the Trustee in writing of the name and address of any such
agent. If the Company fails to maintain a Registrar or Paying Agent, the Trustee
shall act as such and shall be entitled to appropriate compensation therefor
pursuant to Section 7.07. The Company or any Wholly Owned Subsidiary
incorporated or organized within The United States of America may act as Paying
Agent, Registrar, co-registrar or transfer agent.

                  The Company initially appoints the Trustee as Registrar and
Paying Agent in connection with the Securities. The Registrar and Paying Agent
shall be entitled to the rights and immunities of the Trustee hereunder.

                  SECTION 2.04. Paying Agent To Hold Money in Trust. Prior to
11:00 a.m., New York time, on or prior to each due date of the principal and
interest on any Security, the Company shall deposit with the Paying Agent a sum
sufficient to pay such principal and interest when so becoming due. The Company
shall require each Paying Agent (other than the Trustee) to agree in writing
that the Paying Agent shall hold in trust for the benefit of Securityholders or
the Trustee all money held by the Paying Agent for the payment of principal of
or interest on the Securities and shall notify the Trustee in writing of any
default by the Company in making any such payment. If the Company or a
Subsidiary acts as Paying Agent, it shall segregate the money held by it as
Paying Agent and hold it as a separate trust fund. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee and to account
for any funds disbursed by the Paying Agent. Upon complying with this Section,
the Paying Agent shall have no further liability for the money delivered to the
Trustee.

                  SECTION 2.05. Securityholder Lists. The Trustee shall preserve
in as current a form as is reasonably practicable the most recent list available
to it of the names and addresses of Securityholders and shall otherwise comply
with TIA Section 312(a). If the Trustee is not the Registrar, the Company shall
furnish to the Trustee, in

<PAGE>
                                                                              46

writing at least five Business Days before each interest payment date and at
such other times as the Trustee may request in writing, a list in such form and
as of such date as the Trustee may reasonably require of the names and addresses
of Securityholders.

                  SECTION 2.06. Transfer and Exchange. The Securities shall be
issued in registered form and shall be transferable only upon the surrender of a
Security being transferred for registration of transfer. When a Security is
presented to the Registrar or a co-registrar with a request to register a
transfer, the Registrar shall register the transfer as requested if the
requirements of this Indenture and Section 8-401(a) of the Uniform Commercial
Code are met. When Securities are presented to the Registrar or a co-registrar
with a request to exchange them for an equal principal amount of Securities of
other denominations, the Registrar shall make the exchange as requested if the
same requirements are met. No service charge shall be made for any registration
of transfer or exchange or redemption of the Securities, but the Company may
require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than any such
transfer taxes or other similar governmental charge payable upon exchange
pursuant to Section 2.09 or 9.05).

                  SECTION 2.07. Replacement Securities. If a mutilated Security
is surrendered to the Registrar or if the Holder of a Security claims that the
Security has been lost, destroyed or wrongfully taken, the Company shall issue
and the Trustee shall authenticate a replacement Security if the requirements of
Section 8-405 of the Uniform Commercial Code are met and the Holder satisfies
any other reasonable requirements of the Trustee. If required by the Trustee or
the Company, such Holder shall furnish an indemnity bond sufficient in the
judgment of the Company and the Trustee to protect the Company, the Trustee, the
Paying Agent, the Registrar and any co-registrar from any loss which any of them
may suffer if a Security is replaced. The Company and the Trustee may charge the
Holder for their expenses in replacing a Security.

                  Every replacement Security is an additional obligation of the
Company.

<PAGE>
                                                                              47

                  SECTION 2.08. Outstanding Securities. Securities outstanding
at any time are all Securities authenticated by the Trustee except for those
canceled by it, those delivered to it for cancellation and those described in
this Section as not outstanding. A Security does not cease to be outstanding
because the Company or an Affiliate of the Company holds the Security.

                  If a Security is replaced pursuant to Section 2.07, it ceases
to be outstanding unless the Trustee and the Company receive proof satisfactory
to them that the replaced Security is held by a bona fide purchaser.

                  If the Paying Agent segregates and holds in trust, in
accordance with this Indenture, on a redemption date or maturity date money
sufficient to pay all principal and interest payable on that date with respect
to the Securities (or portions thereof) to be redeemed or maturing, as the case
may be, then on and after that date such Securities (or portions thereof) cease
to be outstanding and interest on them ceases to accrue.

                  SECTION 2.09. Temporary Securities. Until definitive
Securities are ready for delivery, the Company may prepare and the Trustee shall
authenticate temporary Securities. Temporary Securities shall be substantially
in the form of definitive Securities but may have variations that the Company
considers appropriate for temporary Securities. Without unreasonable delay, the
Company shall prepare and the Trustee shall authenticate definitive Securities
and deliver them in exchange for temporary Securities.

                  SECTION 2.10. Cancellation. The Company at any time may
deliver Securities to the Trustee for cancellation. The Registrar and the Paying
Agent shall forward to the Trustee any Securities surrendered to them for
registration of transfer, exchange or payment. The Trustee and no one else shall
cancel and destroy (subject to the record retention requirements of the Exchange
Act) all Securities surrendered for registration of transfer, exchange, payment
or cancellation and deliver a certificate of such destruction to the Company
unless the Company directs the Trustee in writing to deliver canceled Securities
to the Company. The Company may not issue new

<PAGE>
                                                                              48

Securities to replace Securities it has redeemed, paid or delivered to the
Trustee for cancellation.

                  SECTION 2.11. Defaulted Interest. If the Company defaults in a
payment of interest on the Securities, the Company shall pay defaulted interest
(plus interest on such defaulted interest to the extent lawful) in any lawful
manner. The Company may pay the defaulted interest to the persons who are
Securityholders on a subsequent special record date. The Company shall fix or
cause to be fixed any such special record date and payment date to the
reasonable satisfaction of the Trustee and shall promptly mail to each
Securityholder a notice that states the special record date, the payment date
and the amount of defaulted interest to be paid.

                  SECTION 2.12. CUSIP Numbers. The Company in issuing the
Securities may use "CUSIP" numbers (if then generally in use) and, if so, the
Trustee shall use "CUSIP" numbers in notices of redemption or repurchase as a
convenience to Holders; provided, however, that any such notice may state that
no representation is made as to the correctness of such numbers either as
printed on the Securities or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the
Securities, and any such redemption shall not be affected by any defect in or
omission of such numbers.

                  SECTION 2.13. Issuance of Additional Securities. The Company
shall be entitled, subject to its compliance with Section 4.03, to issue
Additional Securities under this Indenture which shall have identical terms as
the Initial Securities issued on the Issue Date, other than with respect to the
date of issuance and issue price. The Initial Securities issued on the Issue
Date, any Additional Securities and all Exchange Securities or Private Exchange
Securities issued in exchange therefor shall be treated as a single class for
all purposes under this Indenture.

<PAGE>
                                                                              49

                  With respect to any Additional Securities, the Company shall
set forth in a resolution of the Board of Directors and an Officers'
Certificate, a copy of each which shall be delivered to the Trustee, the
following information:

                  (1) the aggregate principal amount of such Additional
         Securities to be authenticated and delivered pursuant to this
         Indenture;

                  (2) the issue price, the issue date and the CUSIP number of
         such Additional Securities; provided, however, that no Additional
         Securities may be issued at a price that would cause such Additional
         Securities to have "original issue discount" within the meaning of
         Section 1273 of the Code; and

                  (3) whether such Additional Securities shall be Transfer
         Restricted Securities and issued in the form of Initial Securities as
         set forth in the Appendix to this Indenture or shall be issued in the
         form of Exchange Securities as set forth in Exhibit A.

                                    ARTICLE 3

                                   Redemption

                  SECTION 3.01. Notices to Trustee. If the Company elects to
redeem Securities pursuant to paragraph 5 of the Securities, it shall notify the
Trustee in writing of the redemption date, the principal amount of Securities to
be redeemed and the paragraph of the Securities pursuant to which the redemption
will occur.

                  The Company shall give each notice to the Trustee provided for
in this Section at least 60 days before the redemption date unless the Trustee
consents to a shorter period. Such notice shall be accompanied by an Officers'
Certificate and an Opinion of Counsel from the Company to the effect that such
redemption will comply with the conditions herein.

                  SECTION 3.02. Selection of Securities To Be Redeemed. If fewer
than all the Securities are to be redeemed, the Trustee shall select the
Securities to be redeemed pro rata or by lot or by a method that complies

<PAGE>
                                                                              50

with applicable legal and securities exchange requirements, if any, and that the
Trustee in its sole discretion shall deem to be fair and appropriate and in
accordance with methods generally used at the time of selection by fiduciaries
in similar circumstances. The Trustee shall make the selection from outstanding
Securities not previously called for redemption. The Trustee may select for
redemption portions of the principal of Securities that have denominations
larger than $1,000. Securities and portions of them the Trustee selects shall be
in principal amounts of $1,000 or a whole multiple of $1,000. Provisions of this
Indenture that apply to Securities called for redemption also apply to portions
of Securities called for redemption. The Trustee shall notify the Company
promptly of the Securities or portions of Securities to be redeemed.

                  SECTION 3.03. Notice of Redemption. At least 30 days but not
more than 60 days before a date for redemption of Securities, the Company shall
mail a notice of redemption by first-class mail to each Holder of Securities to
be redeemed at such Holder's registered address.

                  The notice shall identify the Securities to be redeemed and
shall state:

                  (1) the redemption date;

                  (2) the redemption price;

                  (3) the name and address of the Paying Agent;

                  (4) that Securities called for redemption must be surrendered
         to the Paying Agent to collect the redemption price;

                  (5) if fewer than all the outstanding Securities are to be
         redeemed, the identification and principal amounts of the particular
         Securities to be redeemed;

                  (6) that, unless the Company defaults in making such
         redemption payment, interest on Securities (or portion thereof) called
         for redemption ceases to accrue on and after the redemption date; and

<PAGE>
                                                                              51

                  (7) that no representation is made as to the correctness or
         accuracy of the CUSIP number, if any, listed in such notice or printed
         on the Securities.

                  At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at the Company's expense. In such event,
the Company shall provide the Trustee with the information required by this
Section.

                  SECTION 3.04. Effect of Notice of Redemption. Once notice of
redemption is mailed, Securities called for redemption become due and payable on
the redemption date and at the redemption price stated in the notice. Upon
surrender to the Paying Agent, such Securities shall be paid at the redemption
price stated in the notice, plus accrued interest to the redemption date
(subject to the right of Holders of record on the relevant record date to
receive interest due on the related interest payment date). Failure to give
notice or any defect in the notice to any Holder shall not affect the validity
of the notice to any other Holder.

                  SECTION 3.05. Deposit of Redemption Price. Prior to the
redemption date, the Company shall deposit with the Paying Agent (or, if the
Company or a Subsidiary is the Paying Agent, shall segregate and hold in trust)
money sufficient to pay the redemption price of and accrued interest on all
Securities to be redeemed on that date other than Securities or portions of
Securities called for redemption which have been delivered by the Company to the
Trustee for cancellation.

                  SECTION 3.06. Securities Redeemed in Part. Upon surrender of a
Security that is redeemed in part, the Company shall execute and the Trustee
shall authenticate for the Holder (at the Company's expense) a new Security
equal in principal amount to the unredeemed portion of the Security surrendered.

                                    ARTICLE 4

                                    Covenants

                  SECTION 4.01. Payment of Securities. The Company shall
promptly pay the principal of and interest on

<PAGE>
                                                                              52

the Securities on the dates and in the manner provided in the Securities and in
this Indenture. Principal of and interest on the Securities shall be considered
paid on the date due if on such date the Trustee or the Paying Agent holds in
accordance with this Indenture money sufficient to pay all such principal and
interest then due.

                  The Company shall pay interest on overdue principal at the
rate specified therefor in the Securities, and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful.

                  SECTION 4.02. SEC Reports. Notwithstanding that the Company
may not be subject to the reporting requirements of Section 13 or 15(d) of the
Exchange Act, the Company shall file with the SEC (to the extent the SEC will
accept such filings) and provide the Trustee and Securityholders with such
annual reports and such information, documents and other reports as are
specified in Sections 13 and 15(d) of the Exchange Act and applicable to a U.S.
corporation subject to such Sections, such information, documents and other
reports to be so filed and provided at the times specified for the filing of
such information, documents and reports under such Sections.

                  At any time that any of the Company's Subsidiaries are
Unrestricted Subsidiaries, then the quarterly and annual financial information
required by the preceding paragraph will include a reasonably detailed
presentation, either on the face of the financial statements or in the footnotes
thereto, and in "Management's Discussion and Analysis of Financial Condition and
Results of Operations", of the financial condition and results of operations of
the Company and its Restricted Subsidiaries separate from the financial
condition and result of operations of the Unrestricted Subsidiaries of the
Company.

                  In addition, the Company shall furnish to the Holders of the
Securities and to prospective investors, upon the requests of such Holders, any
information required to be delivered pursuant to Rule 144A(d)(4) under the
Securities Act so long the Securities are not freely transferable under the
Securities Act.

                  The Company also shall comply with other provisions of TIA
Section 314(a).

<PAGE>
                                                                              53

                  SECTION 4.03. Limitation on Indebtedness. (a) The Company
shall not, and shall not permit any Restricted Subsidiary to, Incur, directly or
indirectly, any Indebtedness; provided, however, that the Company and Subsidiary
Guarantors, if any, shall be entitled to Incur Indebtedness if, on the date of
such Incurrence and after giving effect thereto on a pro forma basis, no Default
has occurred and is continuing and the Consolidated Coverage Ratio exceeds 2.0
to 1. The Company shall cause each Restricted Subsidiary that Incurs any
Indebtedness pursuant to this paragraph (a) or clauses (12) or (17) of paragraph
(b) of this Section 4.03 to execute and deliver to the Trustee, no later than
the date of such Incurrence, a supplemental indenture to this Indenture pursuant
to which such Restricted Subsidiary guarantees payment of the Securities on the
same terms and conditions as those set forth in this Indenture.

                  (b) Notwithstanding the foregoing paragraph (a), the Company
and the Restricted Subsidiaries shall be entitled to Incur any or all of the
following Indebtedness:

                  (1) Indebtedness Incurred by the Company pursuant to the
         Three-Year Credit Agreement or the 364-Day Credit Agreement; provided,
         however, that, immediately after giving effect to any such Incurrence,
         the aggregate principal amount of all Indebtedness Incurred under this
         clause (1) and then outstanding does not exceed the greater of (A) $520
         million less the sum of all principal payments with respect to such
         Indebtedness pursuant to Section 4.06(a)(3)(A) and (B) 50% of the book
         value of the inventory of the Company and its Restricted Subsidiaries;

                  (2) Indebtedness Incurred by the Company pursuant to the New
         Credit Agreement; provided, however, that, immediately after giving
         effect to any such Incurrence, the aggregate principal amount of all
         Indebtedness Incurred under this clause (2) and then outstanding does
         not exceed $200 million less the sum of all principal payments with
         respect to such Indebtedness pursuant to Section 4.06(a)(3)(A);

                  (3) Indebtedness Incurred by CITGO Puerto Rico and the Company
         pursuant to the CITGO Puerto Rico Agreement; provided, however, that
         the aggregate

<PAGE>
                                                                              54

         principal amount of all Indebtedness Incurred by CITGO Puerto Rico and
         the Company (without duplication in the case of the Company's Guarantee
         of CITGO Puerto Rico's Indebtedness thereunder) pursuant to the CITGO
         Puerto Rico Credit Agreement does not exceed $25 million less the sum
         of all principal payments with respect to such Indebtedness pursuant to
         Section 4.06(a)(3)(A).

                  (4) Indebtedness owed to and held by the Company or a
         Restricted Subsidiary; provided, however, that (A) any subsequent
         issuance or transfer of any Capital Stock which results in any such
         Restricted Subsidiary ceasing to be a Restricted Subsidiary or any
         subsequent transfer of such Indebtedness (other than to the Company or
         a Restricted Subsidiary) shall be deemed, in each case, to constitute
         the Incurrence of such Indebtedness by the obligor thereon and (B) if
         the Company or a Subsidiary Guarantor is the obligor on such
         Indebtedness, such Indebtedness is expressly subordinated to the prior
         payment in full in cash of all obligations with respect to the
         Securities;

                  (5) the Initial Securities and the Exchange Securities (other
         than any Additional Securities);

                  (6) Indebtedness outstanding on the Issue Date (other than
         Indebtedness described in clause (1), (3), (4) or (5) of this Section
         4.03(b));

                  (7) Indebtedness of a Restricted Subsidiary Incurred and
         outstanding on or prior to the date on which such Subsidiary was
         acquired by the Company (other than Indebtedness Incurred in connection
         with, or to provide all or any portion of the funds or credit support
         utilized to consummate, the transaction or series of related
         transactions pursuant to which such Subsidiary became a Subsidiary or
         was acquired by the Company); provided, however, that on the date of
         such acquisition and after giving pro forma effect thereto, the Company
         would have been able to Incur at least $1.00 of Indebtedness pursuant
         to Section 4.03(a);

                  (8) Refinancing Indebtedness in respect of Indebtedness
         Incurred pursuant to Section 4.03(a) or pursuant to clause (5), (6) or
         (7) of Section 4.03(b)

<PAGE>
                                       55

         or this clause (8); provided, however, that to the extent such
         Refinancing Indebtedness directly or indirectly Refinances Indebtedness
         of a Subsidiary Incurred pursuant to clause (7), such Refinancing
         Indebtedness shall be Incurred only by such Subsidiary or the Company;

                  (9) Hedging Obligations entered into in the ordinary course of
         business to purchase any raw material, hydrocarbon, refined product or
         other commodity or to hedge risks with respect to the Company's or a
         Restricted Subsidiary's interest rate, currency, hydrocarbon or refined
         products therefrom or commodity exposure and not for speculative
         purposes;

                  (10) obligations in respect of tender, performance, government
         contract, bid and surety or appeal bonds and completion guarantees
         provided by the Company or any Restricted Subsidiary in the ordinary
         course of business;

                  (11) Indebtedness arising from the honoring by a bank or other
         financial institution of a check, draft or similar instrument drawn
         against insufficient funds in the ordinary course of business;
         provided, however, that such Indebtedness is extinguished within five
         Business Days of its Incurrence;

                  (12) Guarantees by Subsidiary Guarantors of Indebtedness of
         the Company or any Restricted Subsidiary permitted to be Incurred under
         this Indenture and Liens created by Subsidiary Guarantors that
         constitute Indebtedness securing Indebtedness of the Company or any
         Restricted Subsidiary permitted to be Incurred under this Indenture;

                  (13) Indebtedness of a Receivables Subsidiary Incurred
         pursuant to a Qualified Receivables Transaction;

                  (14) Indebtedness of Restricted Subsidiaries in an aggregate
         principal amount which, when taken together with all other Indebtedness
         of Restricted Subsidiaries outstanding on the date of such Incurrence
         (other than Indebtedness permitted by any other clause of this Section
         4.03 (b)), does not exceed the greater of (A) $125 million and (B) 5%
         of Consolidated Net Worth;

<PAGE>
                                                                              56

                  (15) Guarantees by the Pledged Entities of Indebtedness of the
         Company Incurred pursuant to clause (2) of this Section 4.03(b);

                  (16) Guarantees by the Company of Indebtedness of Restricted
         Subsidiaries Incurred pursuant to clause (14) of this Section 4.03(b);
         and

                  (17) Indebtedness of the Company or any Subsidiary Guarantor
         in an aggregate principal amount which, when taken together with all
         other Indebtedness of the Company and the Subsidiary Guarantors
         outstanding on the date of such Incurrence (other than Indebtedness
         permitted by clauses (1) through (16) of this Section 4.03(b) or
         Section 4.03(a)), does not exceed $75 million.

                  (c) Notwithstanding the foregoing, the Company shall not, and
shall not permit any Subsidiary Guarantor to, Incur any Indebtedness pursuant to
Section 4.03(b) if the proceeds thereof are used, directly or indirectly, to
Refinance any Subordinated Obligations of the Company or such Subsidiary
Guarantor unless such Indebtedness shall be subordinated to the Securities or
the Subsidiary Guaranty of such Subsidiary Guarantor, as the case may be, to at
least the same extent as such Subordinated Obligations.

                  (d) For purposes of determining compliance with this Section
4.03, (1) any Indebtedness remaining outstanding under the Three-Year Credit
Agreement, the 364-Day Credit Agreement or the CITGO Puerto Rico Credit
Agreement after the application of the net proceeds from the sale of the
Securities will be treated as Incurred on the Issue Date under clause (1) or
(3), as applicable, of Section 4.03(b); (2)any Indebtedness Incurred or
outstanding under the New Credit Agreement on the Issue Date will be treated as
Incurred on the Issue Date under clause (2) of paragraph (b) above; (3) in the
event that an item of Indebtedness(or any portion thereof) meets the criteria of
more than one of the types of Indebtedness described herein, the Company, in its
sole discretion, shall classify such item of Indebtedness (or any portion
thereof) at the time of Incurrence and shall only be required to include the
amount and type of such

<PAGE>
                                                                              57

Indebtedness in one of the above clauses; and (4) the Company shall be entitled
to divide and classify an item of Indebtedness in more than one of the types of
Indebtedness described herein.

                  SECTION 4.04. Limitation on Restricted Payments. (a) The
Company shall not, and shall not permit any Restricted Subsidiary, directly or
indirectly, to make a Restricted Payment if at the time the Company or such
Restricted Subsidiary makes such Restricted Payment:

                  (1) a Default shall have occurred and be continuing (or would
         result therefrom);

                  (2) the Company is not entitled to Incur an additional $1.00
         of Indebtedness under Section 4.03(a);

                  (3) the aggregate amount of such Restricted Payment and all
         other Restricted Payments since the Issue Date would exceed the sum of
         (without duplication):

                           (A) 50% of the Consolidated Net Income accrued during
                  the period (treated as one accounting period) from the
                  beginning of the fiscal quarter immediately following the
                  fiscal quarter ending on December 31, 2002, to the end of the
                  most recent fiscal quarter ending at least 45 days prior to
                  the date of such Restricted Payment (or, in case such
                  Consolidated Net Income shall be a deficit, minus 100% of such
                  deficit); plus

                           (B) 100% of the aggregate net proceeds, including
                  cash and the fair market value of property other than cash (as
                  determined in good faith by the Board of Directors of the
                  Company and evidenced by a board resolution) received by the
                  Company from the issuance or sale of, or as a capital
                  contribution in respect of, its Capital Stock (other than
                  Disqualified Stock) subsequent to the Issue Date (other than
                  an issuance or sale to, or contribution by, a Subsidiary of
                  the Company and other than an issuance or sale to, or
                  contribution by, an employee stock ownership plan or to a
                  trust established by the Company or any of its Subsidiaries
                  for the benefit of their employees); plus

<PAGE>
                                                                              58

                           (C) the amount by which Indebtedness of the Company
                  is reduced on the Company's balance sheet upon the conversion
                  or exchange subsequent to the Issue Date of any Indebtedness
                  of the Company convertible or exchangeable for Capital Stock
                  (other than Disqualified Stock) of the Company (less the
                  amount of any cash, or the fair value of any other property,
                  distributed by the Company upon such conversion or exchange);
                  provided, however, that the foregoing amount shall not exceed
                  the Net Cash Proceeds received by the Company or any
                  Restricted Subsidiary from the sale of such Indebtedness
                  (excluding Net Cash Proceeds from sales to a Subsidiary of the
                  Company or to an employee stock ownership plan or to a trust
                  established by the Company or any of its Subsidiaries for the
                  benefit of their employees); plus

                           (D) an amount equal to the sum of (x) the net
                  reduction in the Investments (other than Permitted
                  Investments) made by the Company or any Restricted Subsidiary
                  in any Person resulting from repurchases, repayments or
                  redemptions of such Investments by such Person, proceeds
                  realized on the sale of such Investment and proceeds
                  representing the return of capital (excluding dividends and
                  distributions), in each case received by the Company or any
                  Restricted Subsidiary and (y) to the extent such Person is an
                  Unrestricted Subsidiary, the portion (proportionate to the
                  Company's equity interest in such Subsidiary) of the fair
                  market value of the net assets of such Unrestricted Subsidiary
                  at the time such Unrestricted Subsidiary is designated a
                  Restricted Subsidiary; provided, however, that the foregoing
                  sum shall not exceed, in the case of any Person or
                  Unrestricted Subsidiary, the amount of Investments (excluding
                  Permitted Investments) previously made (and treated as a
                  Restricted Payment) by the Company or any Restricted
                  Subsidiary in such Person or Unrestricted Subsidiary;

<PAGE>
                                                                              59

                  (4) after giving pro forma effect to such Restricted Payment,
         the Company would not have Available Liquidity in excess of $250
         million, and on the date the Company or such Restricted Subsidiary
         makes such Restricted Payment, the Chief Financial Officer of the
         Company shall deliver to the Trustee a certificate to the effect that
         the Company is in compliance with this paragraph (4); or

                  (5) the aggregate amount of such Restricted Payment and all
         other Restricted Payments made since the beginning of the Reference
         Period would exceed the Free Cash Flow during the Reference Period.

                  (b) The provisions of Section 4.04(a) shall not prohibit:

                  (1) any Restricted Payment made out of the Net Cash Proceeds
         of the substantially concurrent sale of, or made by exchange for,
         Capital Stock of the Company (other than Disqualified Stock and other
         than Capital Stock issued or sold to a Subsidiary of the Company or an
         employee stock ownership plan or to a trust established by the Company
         or any of its Subsidiaries for the benefit of their employees) or a
         substantially concurrent cash capital contribution received by the
         Company from or on behalf of one or more of its shareholders; provided,
         however, that (A) such Restricted Payment shall be excluded in the
         calculation of the amount of Restricted Payments and (B) the Net Cash
         Proceeds from such sale or such cash capital contribution (to the
         extent so used for such Restricted Payment) shall be excluded from the
         calculation of amounts under Section 4.04(a)(3)(B);

                  (2) any purchase, repurchase, redemption, defeasance or other
         acquisition or retirement for value of Subordinated Obligations of the
         Company or any Restricted Subsidiary made by exchange for, or out of
         the proceeds of the substantially concurrent sale of, Subordinated
         Obligations of such Person which is permitted to be Incurred pursuant
         to Section 4.03; provided, however, that such purchase, repurchase,
         redemption, defeasance or other acquisition or retirement for value
         shall be excluded from the calculation of the amount of Restricted
         Payments;

<PAGE>
                                                                              60

                  (3) dividends paid within 60 days after the date of
         declaration thereof if at such date of declaration such dividend would
         have complied with this Section 4.04; provided, however, that at the
         time of payment of such dividend, no other Default shall have occurred
         and be continuing (or result therefrom); provided further, however,
         that such dividend shall be included in the calculation of the amount
         of Restricted Payments;

                  (4) so long as no Default has occurred and is continuing, the
         repurchase or other acquisition of shares of Capital Stock of the
         Company or any of its Subsidiaries from employees, former employees,
         directors or former directors of the Company or any of its Subsidiaries
         (or permitted transferees of such employees, former employees,
         directors or former directors), pursuant to the terms of the agreements
         (including employment agreements) or plans (or amendments thereto)
         approved by the Board of Directors of the Company under which such
         individuals purchase or sell or are granted the option to purchase or
         sell, shares of such Capital Stock; provided, however, that the
         aggregate amount of such repurchases and other acquisitions shall not
         exceed $5 million in any calendar year; provided further, however, that
         such repurchases and other acquisitions shall be excluded from the
         calculation of the amount of Restricted Payments;

                  (5) dividends or advances to PDV America, the proceeds of
         which are used by PDV America to repay its 7O% Senior Notes Due 2003;
         provided that (A) the aggregate amount of such dividends or advances
         shall not exceed $500 million, (B) such dividends or advances shall
         only be declared and paid, as applicable, on or after the seventh day
         immediately prior to the maturity date of the 7O% Senior Notes Due 2003
         of PDV America, (C) on the date of payment of any such dividends or
         advances, the Chief Financial Officer of the Company shall have
         delivered to the Trustee a certificate to the effect that immediately
         after giving pro forma effect to such dividends or advances the Company
         will have Available Liquidity in excess of $350 million and (D) such
         dividends or

<PAGE>
                                                                              61

         advances shall be excluded from the calculation of the amount of
         Restricted Payments; or

                  (6) other Restricted Payments in an aggregate amount not to
         exceed $25 million; provided, however, that such Restricted Payments
         shall be excluded from the calculation of the amount of Restricted
         Payments.

                  SECTION 4.05. Limitation on Restrictions on Distributions from
Restricted Subsidiaries. The Company shall not, and shall not permit any
Restricted Subsidiary to, create or otherwise cause or permit to exist or become
effective any consensual encumbrance or restriction on the ability of any
Restricted Subsidiary to (a) pay dividends or make any other distributions on
its Capital Stock to the Company or a Restricted Subsidiary or pay any
Indebtedness owed to the Company, (b) make any loans or advances to the Company
or (c) transfer any of its property or assets to the Company, except:

                  (1) with respect to clauses (a),(b) and (c),

                                    (i) any encumbrance or restriction pursuant
                           to an agreement in effect at or entered into on the
                           Issue Date, including the Credit Agreements (other
                           than the New Credit Agreement);

                                    (ii) (A) any encumbrance or restriction
                           pursuant to the New Credit Agreement that is
                           substantially similar to, and no less favorable to
                           the Securityholders than, encumbrances or
                           restrictions in effect at or entered into on the
                           Issue Date pursuant to the Credit Agreements (other
                           than the New Credit Agreement), (B) any encumbrance
                           or restriction on the ability of the Pledged Entities
                           to pay dividends, make distributions, loans or
                           advances, or transfer assets to the Company imposed
                           pursuant to the New Credit Agreement and (C) Liens on
                           the Capital Stock of the Pledged Entities imposed
                           pursuant to the New Credit Agreement;

                                    (iii) any encumbrance or restriction with
                           respect to a Restricted Subsidiary pursuant to an
                           agreement relating to any Indebtedness

<PAGE>
                                                                              62

                           Incurred by such Restricted Subsidiary on or prior to
                           the date on which such Restricted Subsidiary was
                           acquired by the Company (other than Indebtedness
                           Incurred as consideration in, or to provide all or
                           any portion of the funds or credit support utilized
                           to consummate the transaction or series of related
                           transactions pursuant to which such Restricted
                           Subsidiary became a Restricted Subsidiary or was
                           acquired by the Company) and outstanding on such
                           date;

                                    (iv) any encumbrance or restriction pursuant
                           to an agreement effecting a Refinancing of
                           Indebtedness Incurred pursuant to an agreement
                           referred to in clause (i), (ii) or (iii) of clause
                           (1) of this Section 4.05 or this clause (iv) or
                           contained in any amendment to an agreement referred
                           to in clause (i), (ii) or (iii) of clause (1) of this
                           Section 4.05 or this clause (iv); provided, however,
                           that the encumbrances and restrictions with respect
                           to such Restricted Subsidiary contained in any such
                           refinancing agreement or amendment are no less
                           favorable to the Securityholders than encumbrances
                           and restrictions with respect to such Restricted
                           Subsidiary contained in such predecessor agreements;

                                    (v) any encumbrance or restriction with
                           respect to a Restricted Subsidiary imposed pursuant
                           to an agreement entered into for the sale or
                           disposition of all or substantially all the Capital
                           Stock or assets of such Restricted Subsidiary pending
                           the closing of such sale or disposition;

                                    (vi) any encumbrance or restriction arising
                           under any applicable law, rule, regulation or order;

                                    (vii) any encumbrance or restriction
                           pursuant to any merger agreement, stock purchase
                           agreement, asset sale agreement or similar agreement
                           limiting the transfer of properties and assets
                           subject to such

<PAGE>
                                                                              63

                           agreement or distributions of assets subject to such
                           agreement pending consummation of the transactions
                           contemplated thereby;

                                    (viii) any encumbrance or restriction
                           applicable to a Receivables Subsidiary; and

                  (2) with respect to clause (c) only,

                           (A) any encumbrance or restriction consisting of
                  customary nonassignment provisions in leases governing
                  leasehold interests to the extent such provisions restrict the
                  transfer of the lease or the property leased thereunder; and

                           (B) any encumbrance or restriction contained in
                  security agreements or mortgages securing Indebtedness of a
                  Restricted Subsidiary to the extent such encumbrance or
                  restriction restricts the transfer of the property subject to
                  such security agreements or mortgages.

                  SECTION 4.06. Limitation on Sales of Assets and Subsidiary
Stock. (a) The Company shall not, and shall not permit any Restricted Subsidiary
to, directly or indirectly, consummate any Asset Disposition unless:

                  (1) the Company or such Restricted Subsidiary receives
         consideration at the time of such Asset Disposition at least equal to
         the fair market value (including as to the value of all non-cash
         consideration), as determined in good faith by the Board of Directors
         of the Company, of the shares and assets subject to such Asset
         Disposition;

                  (2) other than with respect to any assets contributed by the
         Company or a Restricted Subsidiary to a joint venture formed by the
         Company or such Restricted Subsidiary, respectively, at least 75% of
         the consideration thereof received by the Company or such Restricted
         Subsidiary is in the form of cash or cash equivalents; provided,
         however, that the 75% limitation also will not apply to any disposition
         of assets in exchange for assets used in a Related Business, or a
         combination of such assets and cash or cash equivalents, in each case
         having a fair market value comparable to the fair market value of the

<PAGE>
                                                                              64

         assets disposed of by the Company or a Restricted Subsidiary; provided
         further, however, that in any such exchange of the Company's or a
         Restricted Subsidiary's assets with a fair market value in excess of
         $20 million, the Company must obtain an opinion or report from an
         Independent Qualified Party confirming that the assets, and cash and
         cash equivalents, if any, received in such exchange have a fair market
         value at least equal to the assets so exchanged; and

                  (3) an amount equal to 100% of the Net Available Cash from
         such Asset Disposition is applied by the Company (or such Restricted
         Subsidiary, as the case may be)

                           (A) first, to the extent the Company elects (or is
                  required by the terms of any Indebtedness), to prepay, repay,
                  redeem or purchase Senior Indebtedness of the Company or
                  Indebtedness (other than any Disqualified Stock) of a Wholly
                  Owned Subsidiary (in each case other than Indebtedness owed to
                  the Company or an Affiliate of the Company) within one year
                  from the later of the date of such Asset Disposition or the
                  receipt of such Net Available Cash;

                           (B) second, to the extent of the balance of such Net
                  Available Cash after application in accordance with clause
                  (A), to the extent the Company elects, to acquire Additional
                  Assets within one year from the later of the date of such
                  Asset Disposition or the receipt of such Net Available Cash;
                  and

                           (C) third, to the extent of the balance of such Net
                  Available Cash after application in accordance with clauses
                  (A) and (B), to make an Offer to the holders of the Securities
                  (and to holders of other Senior Indebtedness of the Company
                  designated by the Company) to purchase Securities (and such
                  other Senior Indebtedness of the Company) pursuant to and
                  subject to the conditions of this Indenture;

provided, however, that in connection with any prepayment, repayment or purchase
of Indebtedness pursuant to clause (A) or (C) above, the Company or such
Restricted

<PAGE>
                                                                              65

Subsidiary shall permanently retire such Indebtedness and shall cause the
related loan commitment (if any) to be permanently reduced in an amount equal to
the principal amount so prepaid, repaid or purchased.

                  Notwithstanding the foregoing provisions of this Section 4.06,
the Company and the Restricted Subsidiaries shall not be required to apply any
Net Available Cash in accordance with this Section 4.06(a) except to the extent
that the aggregate Net Available Cash from all Asset Dispositions which is not
applied in accordance with this Section 4.06(a) exceeds $20 million. Pending
application of Net Available Cash pursuant to this Section 4.06(a), such Net
Available Cash shall be invested in Temporary Cash Investments or applied to
temporarily reduce revolving credit indebtedness.

                  For the purposes of this Section 4.06(a), the following are
deemed to be cash or cash equivalents:

                  (1) the assumption of Indebtedness of the Company (other than
         obligations in respect of Disqualified Stock of the Company) or any
         Restricted Subsidiary and the release of the Company or such Restricted
         Subsidiary from all liability on such Indebtedness in connection with
         such Asset Disposition; and

                  (2) securities received by the Company or any Restricted
         Subsidiary from the transferee that are promptly converted by the
         Company or such Restricted Subsidiary into cash, to the extent of cash
         received in that conversion.

                  (b) In the event of an Asset Disposition that requires the
purchase of Securities (and other Senior Indebtedness of the Company) pursuant
to Section 4.06(a)(3)(C), the Company shall purchase Securities tendered
pursuant to an offer by the Company for the Securities (and such other Senior
Indebtedness) (the "Offer") at a purchase price of 100% of their principal
amount (or, in the event such other Senior Indebtedness was issued with
significant original issue discount, 100% of the accreted value thereof),
without premium, plus accrued but unpaid interest (or, in respect of such other
Senior Indebtedness of the Company, such lesser price, if any, as may be
provided for by the terms of such Senior

<PAGE>
                                                                              66

Indebtedness) in accordance with the procedures (including prorating in the
event of oversubscription) set forth in Section 4.06(c). If the aggregate
purchase price of Securities (and any other Senior Indebtedness of the Company)
tendered exceeds the Net Available Cash allotted to their purchase, the Company
shall select the Securities and other Senior Indebtedness to be purchased on a
pro rata basis but in round denominations, which in the case of the Securities
will be denominations of $1,000 principal amount or multiples thereof. The
Company shall not be required to make such an Offer to purchase Securities (and
other Senior Indebtedness of the Company) pursuant to this Section 4.06 if the
Net Available Cash available therefor is less than $20 million (which lesser
amount shall be carried forward for purposes of determining whether such an
Offer is required with respect to the Net Available Cash from any subsequent
Asset Disposition). Upon completion of such an offer to purchase, Net Available
Cash shall be deemed to be reduced by the aggregate amount of such offer.

                  (c) (1) Promptly, and in any event within 10 days after the
Company becomes obligated to make an Offer, the Company shall deliver to the
Trustee and send, by first-class mail to each Holder, a written notice stating
that the Holder may elect to have his Securities purchased by the Company either
in whole or in part (subject to prorating as described in Section 4.06(b) in the
event the Offer is oversubscribed) in integral multiples of $1,000 of principal
amount, at the applicable purchase price. The notice shall specify a purchase
date not less than 30 days nor more than 60 days from the date such notice is
mailed (the "Purchase Date") and shall contain such information concerning the
business of the Company which the Company in good faith believes will enable
such Holders to make an informed decision (which at a minimum will include (A)
the most recently filed Annual Report on Form 10-K (including audited
consolidated financial statements) of the Company, the most recent subsequently
filed Quarterly Report on Form 10-Q and any Current Report on Form 8-K of the
Company filed subsequent to such Quarterly Report, other than Current Reports
describing Asset Dispositions otherwise described in the offering materials (or
corresponding successor reports), (B) a description of material developments in
the Company's business subsequent to the date of the latest of such Reports, and
(C) if material, appropriate pro forma

<PAGE>
                                                                              67

financial information) and all instructions and materials necessary to tender
Securities pursuant to the Offer, together with the information contained in
clause (3).

                  (2) Not later than the date upon which written notice of an
Offer is delivered to the Trustee as provided below, the Company shall deliver
to the Trustee an Officers' Certificate as to (A) the amount of the Offer (the
"Offer Amount"), including information as to any other Senior Indebtedness
included in the Offer, (B) the allocation of the Net Available Cash from the
Asset Dispositions pursuant to which such Offer is being made and (C) the
compliance of such allocation with the provisions of Section 4.06(a) and (b). On
such date, the Company shall also irrevocably deposit with the Trustee or with a
Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust) in Temporary Cash Investments, maturing on the last day prior
to the Purchase Date or on the Purchase Date if funds are immediately available
by open of business, an amount equal to the Offer Amount to be held for payment
in accordance with the provisions of this Section. If the Offer includes other
Senior Indebtedness, the deposit described in the preceding sentence may be made
with any other paying agent pursuant to arrangements satisfactory to the
Trustee. Upon the expiration of the period for which the Offer remains open (the
"Offer Period"), the Company shall deliver to the Trustee for cancellation the
Securities or portions thereof which have been properly tendered to and are to
be accepted by the Company. The Trustee shall, on the Purchase Date, mail or
deliver payment (or cause the delivery of payment) to each tendering Holder in
the amount of the purchase price. In the event that the aggregate purchase price
of the Securities (and other Senior Indebtedness of the Company) delivered by
the Company to the Trustee is less than the Offer Amount applicable to the
Securities, the Trustee shall deliver the excess to the Company immediately
after the expiration of the Offer Period for application in accordance with this
Section 4.06.

                  (3) Holders electing to have a Security purchased shall be
required to surrender the Security, with an appropriate form duly completed, to
the Company at the address specified in the notice at least three Business Days
prior to the Purchase Date. Holders shall be entitled to withdraw their election
if the Trustee or the Company

<PAGE>
                                                                              68

receives not later than one Business Day prior to the Purchase Date, a telex,
facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Security which was delivered for purchase by the Holder
and a statement that such Holder is withdrawing his election to have such
Security purchased. Holders whose Securities are purchased only in part shall be
issued new Securities equal in principal amount to the unpurchased portion of
the Securities surrendered.

                  (4) At the time the Company delivers Securities to the Trustee
which are to be accepted for purchase, the Company shall also deliver an
Officers' Certificate stating that such Securities are to be accepted by the
Company pursuant to and in accordance with the terms of this Section. A Security
shall be deemed to have been accepted for purchase at the time the Trustee,
directly or through an agent, mails or delivers payment therefor to the
surrendering Holder.

                  (d) The Company shall comply, to the extent applicable, with
the requirements of Section 14(e) of the Exchange Act and any other securities
laws or regulations in connection with the repurchase of Securities pursuant to
this Section. To the extent that the provisions of any securities laws or
regulations conflict with provisions of this Section, the Company shall comply
with the applicable securities laws and regulations and shall not be deemed to
have breached its obligations under this Section by virtue of its compliance
with such securities laws or regulations.

                  SECTION 4.07. Limitation on Affiliate Transactions. (a) The
Company shall not, and shall not permit any Restricted Subsidiary to, enter into
or permit to exist any transaction (including the purchase, sale, lease or
exchange of any property, employee compensation arrangements or the rendering of
any service) with, or for benefit of, any Affiliate of the Company (an
"Affiliate Transaction") unless:

                  (1) the terms of the Affiliate Transactions are no less
         favorable to the Company or such Restricted Subsidiary than those that
         could be obtained at the time of such transaction in arm's-length
         dealings with a Person who is not an Affiliate;

<PAGE>
                                                                              69

                  (2) if such Affiliate Transaction involves an amount in excess
         of $10 million, the terms of the Affiliate Transaction are set forth in
         writing and a majority of the directors of the Company disinterested
         with respect to such Affiliate Transaction have determined in good
         faith that the criteria set forth in clause (1) are satisfied and have
         approved the relevant Affiliate Transaction as evidenced by a
         resolution of the Board of Directors of the Company; provided, however,
         that in the event that at the time such Affiliate Transaction is
         entered into or permitted to exist, no director of the Company is
         disinterested with respect to such Affiliate Transaction, the Board of
         Directors of the Company shall have received with respect to such
         Affiliate Transaction the opinion referred to in paragraph (3) below;
         and

                  (3) if such Affiliate Transaction involves an amount in excess
         of $20 million, the Board of Directors of the Company shall also have
         received a written opinion from an Independent Qualified Party to the
         effect that such Affiliate Transaction is fair, from a financial
         standpoint, to the Company and its Restricted Subsidiaries or is not
         less favorable to the Company and its Restricted Subsidiaries than
         could reasonably be expected to be obtained at the time in an
         arm's-length transaction with a Person who was not an Affiliate.

                  (b) The provisions of Section 4.07(a) shall not prohibit:

                  (1) any Investment (other than a Permitted Investment) or
         other Restricted Payment, in each case permitted to be made pursuant to
         Section 4.04;

                  (2) any issuance of securities, or other payments, awards or
         grants in cash, securities or otherwise pursuant to, or the funding of,
         employment arrangements, stock options and stock ownership plans
         approved by the Board of Directors of the Company;

                  (3) loans or advances to employees in the ordinary course of
         business in accordance with the past practices of the Company or its
         Restricted Subsidiaries, but in any event not to exceed $5 million in
         the aggregate outstanding at any one time;

<PAGE>
                                                                              70

                  (4) the payment of reasonable fees to directors of the Company
         and its Restricted Subsidiaries who are not employees of the Company or
         its Restricted Subsidiaries;

                  (5) any transaction with a Restricted Subsidiary or joint
         venture or similar entity which would constitute an Affiliate
         Transaction solely because the Company or a Restricted Subsidiary owns
         an equity interest in or otherwise controls such Restricted Subsidiary,
         joint venture or similar entity;

                  (6) the issuance or sale of any Capital Stock (other than
         Disqualified Stock) of the Company;

                  (7) any agreement in effect on the Issue Date and described in
         the Offering Circular or in any of the SEC filings of the Company
         incorporated by reference in the Offering Circular or any amendments,
         renewals, extensions or substitutions of any such agreement (so long as
         such amendments, renewals, extensions or substitutions are not less
         favorable to the Company or the Restricted Subsidiaries) and the
         transactions evidenced thereby;

                  (8) any transactions with the Permitted Holder or any of its
         Affiliates involving the purchase or sale of hydrocarbons, or refined
         products therefrom, in the ordinary course of business, so long as such
         transactions are priced based on industry accepted benchmark prices and
         the pricing of such transactions is no worse to the Company or any
         Restricted Subsidiary, as applicable, than the pricing of comparable
         transactions with unrelated third parties; and

                  (9) any Intercompany Trade Arrangements.

                  SECTION 4.08. Limitation on Issuance of Guarantees of
Indebtedness. The Company shall not permit any of its Restricted Subsidiaries,
directly or indirectly, to Guarantee or create any Lien to secure the payment of
any Indebtedness of the Company or any other Restricted Subsidiary unless such
Restricted Subsidiary simultaneously

<PAGE>
                                                                              71

executes and delivers a supplemental indenture to the Indenture providing for
the Guarantee or security of the payment of the Securities by such Restricted
Subsidiary; provided, however, that the following Guarantees and Liens will not
require a Restricted Subsidiary to execute and deliver such a supplemental
indenture: (i) any Guarantee by any Pledged Entity of Indebtedness Incurred
under the New Credit Agreement; or (ii) any Lien created by any Restricted
Subsidiary to secure Indebtedness Incurred pursuant to Section 4.03(b)(1) or
(b)(3). If the Indebtedness to be Guaranteed or secured is subordinated to the
Securities, the Guarantee or security of such Indebtedness shall be subordinated
to the Guarantee or security of the Securities to the same extent as the
Indebtedness to be Guaranteed or secured is subordinated to the Securities.
Notwithstanding the foregoing, any such Guarantee or security by a Restricted
Subsidiary of the Securities shall provide by its terms that it will be
automatically and unconditionally released and discharged upon either:

                  (1) the release or discharge of such Guarantee or security of
         payment of such other Indebtedness, except a discharge by or as a
         result of payment under such Guarantee or security;

                  (2) any sale (including by way of merger or consolidation),
         exchange or transfer, to any Person not an Affiliate of the Company, of
         all of the Capital Stock owned by the Company and its Restricted
         Subsidiaries of, or all or substantially all the assets of, such
         Restricted Subsidiary, which sale, exchange or transfer is made in
         compliance with the applicable provisions of this Indenture; or

                  (3) the designation by the Company of such Restricted
         Subsidiary as an Unrestricted Subsidiary in accordance with the terms
         of this Indenture.

                  SECTION 4.09. Change of Control. (a) Upon the occurrence of a
Change of Control, each Holder shall have the right to require that the Company
repurchase such Holder's Securities at a purchase price in cash equal to 101% of
the principal amount thereof on the date of purchase plus accrued and unpaid
interest, if any, to the date of purchase (subject to the right of holders of
record

<PAGE>
                                                                              72

on the relevant record date to receive interest due on the relevant interest
payment date).

                  Within 30 days following any Change of Control, the Company
shall mail a notice to each Holder with a copy to the Trustee (the "Change of
Control Offer") stating:

                  (1) that a Change of Control has occurred and that such Holder
         has the right to require the Company to purchase such Holder's
         Securities at a purchase price in cash equal to 101% of the principal
         amount thereof on the date of purchase, plus accrued and unpaid
         interest, if any, to the date of purchase (subject to the right of
         Holders of record on the relevant record date to receive interest on
         the relevant interest payment date);

                  (2) the circumstances and relevant facts regarding such Change
         of Control;

                  (3) the purchase date (which shall be no earlier than 30 days
         nor later than 60 days from the date such notice is mailed); and

                  (4) the instructions, as determined by the Company, consistent
         with this Section, that a Holder must follow in order to have its
         Securities purchased.

                  (b) Holders electing to have a Security purchased will be
required to surrender the Security, with an appropriate form duly completed, to
the Company at the address specified in the notice at least three Business Days
prior to the purchase date. Holders will be entitled to withdraw their election
if the Trustee or the Company receives not later than one Business Day prior to
the purchase date, a facsimile transmission or letter setting forth the name of
the Holder, the principal amount of the Security which was delivered for
purchase by the Holder and a statement that such Holder is withdrawing his
election to have such Security purchased.

                  (c) On the purchase date, all Securities purchased by the
Company under this Section shall be delivered by the Company to the Trustee for
cancellation, and the Company shall pay the purchase price plus accrued and
unpaid interest, if any, to the Holders entitled thereto.

<PAGE>
                                                                              73

                  (d) Notwithstanding the foregoing provisions of this Section,
the Company shall not be required to make a Change of Control Offer following a
Change of Control if a third party makes the Change of Control Offer in the
manner, at the times and otherwise in compliance with the requirements set forth
in this Section 4.09 applicable to a Change of Control Offer made by the Company
and purchases all Securities validly tendered and not withdrawn under such
Change of Control Offer.

                  (e) The Company shall comply, to the extent applicable, with
the requirements of Section 14(e) of the Exchange Act and any other securities
laws or regulations in connection with the repurchase of Securities as a result
of a Change of Control. To the extent that the provisions of any securities laws
or regulations conflict with provisions of this Section 4.09, the Company shall
comply with the applicable securities laws and regulations and shall not be
deemed to have breached its obligations under this Section 4.09 by virtue of its
compliance with such securities laws or regulations.

                  SECTION 4.10. Limitation on Liens. The Company shall not, and
shall not permit any Restricted Subsidiary to, directly or indirectly, Incur or
permit to exist any Lien (the "Initial Lien") of any nature whatsoever on any of
its properties (including Capital Stock of a Restricted Subsidiary), whether
owned at the Issue Date or thereafter acquired, securing any Indebtedness, other
than Permitted Liens, without effectively providing that the Securities shall be
secured equally and ratably with (or prior to) the obligations so secured for so
long as such obligations are so secured; provided, however, that the Company or
any Restricted Subsidiary shall be entitled to Incur other Liens to secure
Indebtedness as long as the amount of outstanding Indebtedness secured by Liens
Incurred pursuant to this proviso does not exceed 5% of Consolidated Net
Tangible Assets, as determined based on the consolidated balance sheet of the
Company as of the end of the most recent fiscal quarter ending at least 45 days
prior thereto; provided, further, however, that the aggregate amount of
outstanding Indebtedness secured by Liens on assets of Restricted Subsidiaries
pursuant to the foregoing proviso shall in no event exceed the greater of (A)
$125 million and (B) 5% of Consolidated Net Worth.

<PAGE>
                                                                              74

                  Any Lien created for the benefit of the Holders of the
Securities pursuant to the preceding sentence shall provide by its terms that
such Lien shall be automatically and unconditionally released and discharged
upon the release and discharge of the Initial Lien.

                  SECTION 4.11. Limitation on Sale/Leaseback Transactions. The
Company shall not, and shall not permit any Restricted Subsidiary to, enter into
any Sale/Leaseback Transaction with respect to any property unless:

                  (1) the Company or such Restricted Subsidiary would be
         entitled to (A) Incur Indebtedness in an amount equal to the
         Attributable Debt with respect to such Sale/Leaseback Transaction
         pursuant to Section 4.03 and (B) create a Lien on such property
         securing such Attributable Debt without equally and ratably securing
         the Securities pursuant to Section 4.10;

                  (2) the net proceeds received by the Company or any Restricted
         Subsidiary in connection with such Sale/Leaseback Transaction are at
         least equal to the fair value (as determined by the Board of Directors)
         of such property; and

                  (3) the Company applies the proceeds of such transaction in
         compliance with Section 4.06.

                  SECTION 4.12. Business Activities of Pledged Entities. So long
as there are Liens on the equity interests of the Pledged Entities to secure, or
the Pledged Entities have otherwise secured, Indebtedness Incurred pursuant to
clause (b)(2) of Section 4.03, the Company shall not permit any of the Pledged
Entities to engage in any business or activity other than the ownership,
directly or indirectly, of, in the case of CITGO Pipeline I, the Company's
equity interests in the Colonial Pipeline, and in the case of CITGO Pipeline II,
the Company's equity interests in the Explorer Pipeline and, in each case,
activities incidental thereto. So long as there are Liens on the equity
interests of the Pledged Entities to secure, or the Pledged Entities have
otherwise secured, Indebtedness Incurred pursuant to clause (b)(2) of Section
4.03, the Company shall not permit the Pledged Entities to own or acquire any
assets (other than, in case of CITGO Pipeline I, all the equity interests in the
Colonial

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                                                                              75

Pipeline and in the case of CITGO Pipeline II, all the equity interests in the
Explorer Pipeline and, in each case, cash incidental to their permitted
activities).

                  SECTION 4.13. Compliance Certificate. The Company shall
deliver to the Trustee within 120 days after the end of each fiscal year of the
Company an Officers' Certificate stating that in the course of the performance
by the signers of their duties as Officers of the Company they would normally
have knowledge of any Default and whether or not the signers know of any Default
that occurred during such period. If they do, the certificate shall describe the
Default, its status and what action the Company is taking or proposes to take
with respect thereto. The Company also shall comply with TIA Section 314(a)(4).

                  SECTION 4.14. Further Instruments and Acts. Upon request of
the Trustee, the Company will execute and deliver such further instruments and
do such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

                  SECTION 4.15. Investment Grade Covenants. Upon the occurrence
of an Investment Grade Rating Event, the Company and its Restricted Subsidiaries
shall no longer be subject to the provisions of Sections 4.03, 4.04, 4.05, 4.06,
4.07, 4.08, 4.10, 4.11 and 4.12 and clauses (2), (3) and (4) of Section 5.01 and
clause 2 of Section 5.02. Instead, the provisions of the following clauses (1)
and (2) of this Section 4.15 shall apply to the Company and its Restricted
Subsidiaries only upon and after the occurrence of an Investment Grade Rating
Event:

                  (1) Restrictions on Secured Indebtedness. If the Company or
any Restricted Subsidiary Incurs any Indebtedness secured by a Lien (other than
a Permitted Lien) on any Principal Property or on any share of stock or
Indebtedness of a Restricted Subsidiary, the Company or such Restricted
Subsidiary shall secure the Securities equally and ratable with (or, at the
Company's option, prior to) such secured Indebtedness so long as such
Indebtedness is so secured, unless the aggregate amount of all such secured
Indebtedness, together with all Attributable Debt of the Company and the
Restricted Subsidiaries with respect to any Sale/Leaseback Transactions
involving Principal Properties (with the exception of such transactions which
are excluded as

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                                                                              76

described in clauses (i) through (v) of Section 4.15(2), would not exceed 10% of
Consolidated Net Tangible Assets.

                  (2) Restrictions on Sale/Leaseback Transactions. The Company
shall not, and shall not permit any Restricted Subsidiary to, enter into any
Sale/Leaseback Transaction involving any Principal Property, unless the
aggregate amount of all Attributable Debt with respect to such transaction plus
all secured Indebtedness of the Company and the Restricted Subsidiaries (with
the exception of Indebtedness secured by Permitted Liens) would not exceed 10%
of Consolidated Net Tangible Assets. This restriction shall not apply to, and
there shall be excluded from Attributable Debt in any computation under such
restriction, any Sale/Leaseback Transaction if:

                  (i) the lease is for a period, including renewal rights, not
         in excess of three years;

                  (ii) the sale of the Principal Property is made within 270
         days after its acquisition, construction or improvements;

                  (iii) the lease secures or relates to industrial revenue or
         pollution control bonds;

                  (iv) the transaction is between the Company and a Restricted
         Subsidiary; or

                  (v) the Company, within 270 days after the sale is completed,
         applies to the retirement of its Indebtedness or that of a Restricted
         Subsidiary, or to the purchase of other property which will constitute
         a Principal Property, an amount not less than the greater of:

                           (A) the net proceeds of the sale of the Principal
                  Property leased; or

                           (B) the fair market value (as determined by the
                  Company in good faith) of the Principal Property leased.

<PAGE>
                                                                              77

                  The amount to be applied to the retirement of Indebtedness
shall be reduced by:

                  (a) the principal amount of any of the Company's debentures or
         notes (including the Securities) or those of a Restricted Subsidiary
         surrendered within 270 days after such sale to the applicable trustee
         for retirement and cancelation;

                  (b) the principal amount of Indebtedness, other than the items
         referred to in the preceding clause (i), voluntarily retired by the
         Company or a Restricted Subsidiary within 270 days after such sale; and

                  (c) associated transaction expenses.

                                    ARTICLE 5

                                Successor Company

                  SECTION 5.01. When Company May Merge or Transfer Assets. The
Company shall not consolidate with or merge with or into, or convey, transfer or
lease, in one transaction or a series of transactions, directly or indirectly,
all or substantially all its assets to, any Person, unless:

                  (1) the resulting, surviving or transferee Person (the
         "Successor Company") shall be a Person organized and existing under the
         laws of the United States of America, any State thereof or the District
         of Columbia and the Successor Company (if not the Company) shall
         expressly assume, by an indenture supplemental hereto, executed and
         delivered to the Trustee, in form satisfactory to the Trustee, all the
         obligations of the Company under the Securities and this Indenture;

                  (2) immediately after giving effect to such transaction (and
         treating any Indebtedness which becomes an obligation of the Successor
         Company or any Subsidiary as a result of such transaction as having
         been Incurred by such Successor Company or such Subsidiary at the time
         of such transaction), no Default shall have occurred and be continuing;

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                                                                              78

                  (3) immediately after giving pro forma effect to such
         transaction, the Successor Company would be able to Incur an additional
         $1.00 of Indebtedness pursuant to Section 4.03(a); and

                  (4) immediately after giving pro forma effect to such
         transaction, the Successor Company shall have Consolidated Net Worth in
         an amount that is not less than the Consolidated Net Worth of the
         Company immediately prior to such transaction;

provided, however, that clauses (3) and (4) will not be applicable to (A) a
Restricted Subsidiary consolidating with, merging into or transferring all or
part of its properties and assets to the Company or (B) the Company merging with
an Affiliate of the Company solely for the purpose and with the sole effect of
reincorporating the Company in another jurisdiction.

                  For purposes of this covenant, the sale, lease, conveyance,
assignment, transfer or other disposition of all or substantially all of the
properties and assets of one or more Subsidiaries of the Company, which
properties and assets, if held by the Company instead of such Subsidiaries,
would constitute all or substantially all of the properties and assets of the
Company on a consolidated basis, shall be deemed to be the transfer of all or
substantially all of the properties and assets of the Company.

                  The Successor Company shall be the successor to the Company
and shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Indenture, and the predecessor Company, except
in the case of a lease, shall be released from the obligation to pay the
principal of and interest on the Securities.

                  SECTION 5.02. When Subsidiary Guarantor May Merge or Transfer
Assets. The Company shall not permit any Subsidiary Guarantor to consolidate
with or merge with or into, or convey, transfer or lease, in one transaction or
series of transactions, all or substantially all of its assets to any Person
unless:

                  (1) the resulting, surviving or transferee Person (if not such
         Subsidiary) shall be a Person

<PAGE>
                                                                              79

         organized and existing under the laws of the jurisdiction under which
         such Subsidiary was organized or under the laws of the United States of
         America, or any State hereof or the District of Columbia, and such
         Person shall expressly assume, by an amendment or supplemental
         indenture to this Indenture, in a form acceptable to the Trustee, all
         the obligations of such Subsidiary, if any, under its Subsidiary
         Guaranty; provided, however, that the provisions of this Section
         5.02(1) shall not apply in the case of a Subsidiary Guarantor that has
         been disposed of in its entirety to another Person (other than to the
         Company or an Affiliate of the Company), whether through a merger,
         consolidation or sale of Capital Stock or assets, if in connection
         therewith the Company provides an Officers' Certificate to the Trustee
         to the effect that the Company will comply with its obligations under
         Section 4.06, if then applicable, in respect of such disposition;

                  (2) immediately after giving effect to such transaction or
         transactions on a pro forma basis (and treating any Indebtedness which
         becomes an obligation of the resulting, surviving or transferee Person
         as a result of such transaction as having been issued by such Person at
         the time of such transaction), no Default shall have occurred and be
         continuing; and

                  (3) the Company delivers to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that such
         consolidation, merger or transfer and such amendment or supplemental
         indenture, if any, complies with this Indenture.

                                    ARTICLE 6

                              Defaults and Remedies

                  SECTION 6.01. Events of Default. An "Event of Default" occurs
if:

                  (1) the Company defaults in any payment of interest on any
         Security when the same becomes due and payable, and such default
         continues for a period of 30 days;

<PAGE>
                                                                              80

                  (2) the Company defaults in the payment of the principal of
         any Security when the same becomes due and payable at its Stated
         Maturity, upon optional redemption, upon required purchase, upon
         declaration of acceleration or otherwise;

                  (3) the Company fails to comply with Section 5.01;

                  (4) the Company fails to comply with its obligations, if then
         applicable, in Section 4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09,
         4.10, 4.11, 4.12 or 4.15 (other than a failure to purchase Securities
         when required under Section 4.06 or 4.09) and such failure continues
         for 30 days after the notice specified below;

                  (5) the Company or any Subsidiary Guarantor fails to comply
         with any of its other agreements in this Indenture and such failure
         continues for 60 days after the notice specified below;

                  (6) Indebtedness of the Company or any Significant Subsidiary
         is not paid within any applicable grace period after final maturity or
         is accelerated by the holders thereof because of a default and the
         total amount of such Indebtedness unpaid or accelerated exceeds $35
         million;

                  (7) the Company or any Significant Subsidiary pursuant to or
         within the meaning of any Bankruptcy Law:

                           (A) commences a voluntary case;

                           (B) consents to the entry of an order for relief
                  against it in an involuntary case;

                           (C) consents to the appointment of a Custodian of it
                  or for any substantial part of its property; or

                           (D) makes a general assignment for the benefit of its
                  creditors;

         or takes any comparable action under any foreign laws relating to
         insolvency;

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                                                                              81

                  (8) a court of competent jurisdiction enters an order or
         decree under any Bankruptcy Law that:

                           (A) is for relief against the Company or any
                  Significant Subsidiary in an involuntary case;

                           (B) appoints a Custodian of the Company or any
                  Significant Subsidiary or for any substantial part of its
                  property; or

                           (C) orders the winding up or liquidation of the
                  Company or any Significant Subsidiary;

         or any similar relief is granted under any foreign laws and the order
         or decree remains unstayed and in effect for 60 days;

                  (9) any judgment or decree for the payment of money in excess
         of $35 million is entered against the Company or any Significant
         Subsidiary, remains outstanding for a period of 60 consecutive days
         following such judgment or decree and is not discharged, waived or
         stayed; or

                  (10) any Subsidiary Guaranty ceases to be in full force and
         effect (other than in accordance with the terms of this Indenture and
         such Subsidiary Guaranty) or any Subsidiary Guarantor denies or
         disaffirms its obligations under its Subsidiary Guaranty.

                  The foregoing will constitute Events of Default whatever the
reason for any such Event of Default and whether it is voluntary or involuntary
or is effected by operation of law or pursuant to any judgment, decree or order
of any court or any order, rule or regulation of any administrative or
governmental body.

                  The term "Bankruptcy Law" means Title 11, United States Code,
or any similar Federal or state law for the relief of debtors. The term
"Custodian" means any receiver, trustee, assignee, liquidator, custodian or
similar official under any Bankruptcy Law.

                  A Default under clauses (4) or (5) shall not constitute an
Event of Default until the Trustee or the

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                                                                              82

Holders of at least 25% in principal amount of the outstanding Securities notify
the Company in writing of the Default and the Company does not cure such Default
within the time specified after receipt of such notice; provided, however, that
in the case of a Default under clause (4) constituting a failure to comply with
Section 4.04, the Holders of at least 12.5% in principal amount of the
outstanding Securities may effectuate such written notice. Such notice must
specify the Default, demand that it be remedied and state that such notice is a
"Notice of Default".

                  The Company shall deliver to the Trustee, within 30 days after
the occurrence thereof, written notice in the form of an Officers' Certificate
of any Event of Default under clause (6) or (9) and any event which with the
giving of notice or the lapse of time would become an Event of Default under
clause (4) or (5), its status and what action the Company is taking or proposes
to take with respect thereto.

                  SECTION 6.02. Acceleration. If an Event of Default (other than
an Event of Default specified in Section 6.01(7) or (8) with respect to the
Company) occurs and is continuing, the Trustee by notice to the Company, or the
Holders of at least 25% in principal amount of the Securities by notice to the
Company and the Trustee, may declare the principal of and accrued but unpaid
interest on all the Securities to be due and payable; provided, however, that,
if such Event of Default results from a failure to comply with Section 4.04, the
Holders of at least 12.5% in principal amount of then outstanding Securities may
make the foregoing declaration. Upon such a declaration, such principal and
interest shall be due and payable immediately. If an Event of Default specified
in Section 6.01(7) or (8) with respect to the Company occurs and is continuing,
the principal of and interest on all the Securities shall ipso facto become and
be immediately due and payable without any declaration or other act on the part
of the Trustee or any Securityholders. The Holders of a majority in principal
amount of the Securities by notice to the Trustee may rescind an acceleration
and its consequences if the rescission would not conflict with any judgment or
decree and if all existing Events of Default have been cured or waived except
nonpayment of principal or interest that has become due solely because of

<PAGE>
                                                                              83

acceleration. No such rescission shall affect any subsequent Default or impair
any right consequent thereto.

                  SECTION 6.03. Other Remedies. If an Event of Default occurs
and is continuing, the Trustee may pursue any available remedy to collect the
payment of principal of or interest on the Securities or to enforce the
performance of any provision of the Securities or this Indenture.

                  The Trustee may maintain a proceeding even if it does not
possess any of the Securities or does not produce any of them in the proceeding.
A delay or omission by the Trustee or any Securityholder in exercising any right
or remedy accruing upon an Event of Default shall not impair the right or remedy
or constitute a waiver of or acquiescence in the Event of Default. No remedy is
exclusive of any other remedy. All available remedies are cumulative.

                  SECTION 6.04. Waiver of Past Defaults. The Holders of a
majority in principal amount of the Securities by written notice to the Trustee
may waive an existing Default and its consequences except: (i) a Default in the
payment of the principal of or interest on a Security; (ii) a Default arising
from the failure to redeem or purchase any Security when required pursuant to
this Indenture; or (iii) a Default in respect of a provision that under Section
9.02 cannot be amended without the consent of each Securityholder affected. When
a Default is waived, it is deemed cured and the Company, the Trustee and the
Securityholders shall be restored to their former positions and rights
hereunder, but no such waiver shall extend to any subsequent or other Default or
impair any consequent right.

                  SECTION 6.05. Control by Majority. The Holders of a majority
in principal amount of the Securities may direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee. However, the Trustee may
refuse to follow any direction that conflicts with law or this Indenture or,
subject to Section 7.01, that the Trustee determines is unduly prejudicial to
the rights of other Securityholders or would involve the Trustee in personal
liability; provided, however, that the Trustee may take any other action deemed
proper by the Trustee that is not inconsistent with such

<PAGE>
                                                                              84

direction. Prior to taking any action hereunder, the Trustee shall be entitled
to indemnification satisfactory to it in its sole discretion against all losses
and expenses caused by taking or not taking such action.

                  SECTION 6.06. Limitation on Suits. Except to enforce the right
to receive payment of principal, premium (if any) or interest when due, no
Securityholder may pursue any remedy with respect to this Indenture or the
Securities unless:

                  (1) the Holder has previously given the Trustee written notice
         stating that an Event of Default is continuing;

                  (2) the Holders of at least 25% (or 12.5% in the case of a
         failure to comply with Section 4.04) in principal amount of the
         Securities have made a written request to the Trustee to pursue the
         remedy;

                  (3) such Holder or Holders have offered the Trustee reasonable
         security or indemnity against any loss, liability or expense;

                  (4) the Trustee has not complied with the request within 60
         days after receipt of the request and the offer of security or
         indemnity; and

                  (5) the Holders of a majority in principal amount of the
         Securities have not given the Trustee a direction inconsistent with the
         request during such 60-day period.

                  A Securityholder may not use this Indenture to prejudice the
rights of another Securityholder or to obtain a preference or priority over
another Securityholder.

                  SECTION 6.07. Rights of Holders to Receive Payment.
Notwithstanding any other provision of this Indenture, the right of any Holder
to receive payment of principal of and interest on the Securities held by such
Holder, on or after the respective due dates expressed in the Securities, or to
bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder.

<PAGE>
                                                                              85

                  SECTION 6.08. Collection Suit by Trustee. If an Event of
Default specified in Section 6.01(1) or (2) occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust
against the Company for the whole amount then due and owing (together with
interest on any unpaid interest to the extent lawful) and the amounts provided
for in Section 7.07.

                  SECTION 6.09. Trustee May File Proofs of Claim. The Trustee
may file such proofs of claim and other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee and the Securityholders
allowed in any judicial proceedings relative to the Company, its creditors or
its property and, unless prohibited by law or applicable regulations, may vote
on behalf of the Holders in any election of a trustee in bankruptcy or other
Person performing similar functions, and any Custodian in any such judicial
proceeding is hereby authorized by each Holder to make payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and its counsel, and any other amounts due the Trustee under Section
7.07.

                  SECTION 6.10. Priorities. If the Trustee collects any money or
property pursuant to this Article 6, it shall pay out the money or property in
the following order:

                  FIRST: to the Trustee for amounts due under Section 7.07;

                  SECOND: to Securityholders for amounts due and unpaid on the
         Securities for principal and interest, ratably, without preference or
         priority of any kind, according to the amounts due and payable on the
         Securities for principal and interest, respectively; and

                  THIRD: to the Company.

                  The Trustee may fix a record date and payment date for any
payment to Securityholders pursuant to this Section. At least 15 days before
such record date, the Company shall mail to each Securityholder and the Trustee
a notice that states the record date, the payment date and amount to be paid.

<PAGE>
                                                                              86

                  SECTION 6.11. Undertaking for Costs. In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys' fees, against any party
litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by
Holders of more than 10% in principal amount of the Securities.

                  SECTION 6.12. Waiver of Stay or Extension Laws. The Company
(to the extent it may lawfully do so) shall not at any time insist upon, or
plead, or in any manner whatsoever claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, which may affect the covenants or the performance of this Indenture; and
the Company (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and shall not hinder, delay or impede
the execution of any power herein granted to the Trustee, but shall suffer and
permit the execution of every such power as though no such law had been enacted.

                                    ARTICLE 7

                                     Trustee

                  SECTION 7.01. Duties of Trustee. (a) If an Event of Default
has occurred and is continuing, the Trustee shall exercise the rights and powers
vested in it by this Indenture and use the same degree of care and skill in
their exercise as a prudent Person would exercise or use under the circumstances
in the conduct of such Person's own affairs.

<PAGE>
                                                                              87

                  (b) Except during the continuance of an Event of Default:

                  (1) the Trustee undertakes to perform such duties and only
         such duties as are specifically set forth in this Indenture and no
         implied covenants or obligations shall be read into this Indenture
         against the Trustee; and

                  (2) in the absence of bad faith on its part, the Trustee may
         conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Trustee and conforming to the requirements of
         this Indenture. However, the Trustee shall examine the certificates and
         opinions to determine whether or not they conform to the requirements
         of this Indenture.

                  (c) The Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act or its own willful
misconduct, except that:

                  (1) this paragraph does not limit the effect of paragraph (b)
         of this Section;

                  (2) the Trustee shall not be liable for any error of judgment
         made in good faith by a Trust Officer unless it is proved that the
         Trustee was negligent in ascertaining the pertinent facts; and

                  (3) the Trustee shall not be liable with respect to any action
         it takes or omits to take in good faith in accordance with a direction
         received by it pursuant to Section 6.05.

                  (d) Every provision of this Indenture that in any way relates
to the Trustee is subject to paragraphs (a), (b) and (c) of this Section.

                  (e) The Trustee shall not be liable for interest on any money
received by it except as the Trustee may, at its sole option, agree in writing
with the Company.

                  (f) Money held in trust by the Trustee need not be segregated
from other funds except to the extent required by law.

<PAGE>
                                                                              88

                  (g) No provision of this Indenture shall require the Trustee
to expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers, if it shall have reasonable grounds to believe that repayment
of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

                  (h) Every provision of this Indenture relating to the conduct
or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section and to the provisions of the TIA.

                  SECTION 7.02. Rights of Trustee. Subject to TIA Sections
315(a) through (d): (a) The Trustee may rely, and shall be protected in acting
or refraining from acting, upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
person. The Trustee need not investigate any fact or matter stated in the
document.

                  (b) Before the Trustee acts or refrains from acting, it may
require an Officers' Certificate or an Opinion of Counsel, which shall conform
to Section 11.04. The Trustee shall not be liable for any action it takes or
omits to take in good faith in reliance on the Officers' Certificate or Opinion
of Counsel.

                  (c) The Trustee may act through agents and shall not be
responsible for the misconduct or negligence of any agent appointed with due
care.

                  (d) The Trustee shall not be liable for any action it takes or
omits to take in good faith which it believes to be authorized or within its
rights or powers; provided, however, that the Trustee's conduct does not
constitute willful misconduct or negligence.

                  (e) The Trustee may consult with counsel, and the advice or
opinion of counsel with respect to legal matters relating to this Indenture and
the Securities shall be full and complete authorization and protection from
liability in respect to any action taken, omitted or suffered by it hereunder in
good faith and in accordance with the advice or opinion of such counsel.

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                                                                              89

                  (f) The Trustee shall not be bound to make any investigation
into facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture or other paper or document, but the Trustee in its discretion may make
such further inquiry into such facts or matters as it may see fit.

                  (g) The Trustee shall not be required to take notice or be
deemed to have taken notice of any Default hereunder unless the Trustee shall be
specifically notified in writing of such Default by the Company or otherwise
have actual knowledge of such default, or by the Holders of at least 25% (or
12.5% in the case of a failure to comply with Section 4.04) in aggregate
principal amount of the outstanding Securities.

                  (h) The permissive right of the Trustee to act hereunder will
not be construed as a duty.

                  SECTION 7.03. Individual Rights of Trustee. The Trustee in its
individual or any other capacity may become the owner or pledgee of Securities
and may otherwise deal with the Company or its Affiliates with the same rights
it would have if it were not Trustee. Any Paying Agent, Registrar, co-registrar
or co-paying agent may do the same with like rights. However, the Trustee must
comply with Sections 7.10 and 7.11.

                  SECTION 7.04. Trustee's Disclaimer. The Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture or the Securities, it shall not be accountable for the Company's
use of the proceeds from the Securities, and it shall not be responsible for any
statement of the Company in the Indenture or in any document issued in
connection with the sale of the Securities or in the Securities other than the
Trustee's certificate of authentication.

                  SECTION 7.05. Notice of Defaults. If a Default occurs and is
continuing and if it is known to the Trustee, the Trustee shall mail to each
Securityholder notice of the Default within 90 days after it occurs; provided,
however, that if such Default constitutes a failure to comply with

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                                                                              90

Section 4.04, the Trustee must mail to each Holder of the Securities notice of
such Default within 40 days after it occurs. Except in the case of a Default in
payment of principal of or interest on any Security (including payments pursuant
to the mandatory redemption provisions of such Security, if any), the Trustee
may withhold the notice if and so long as a committee of its Trust Officers in
good faith determines that withholding the notice is in the interests of
Securityholders.

                  SECTION 7.06. Reports by Trustee to Holders. As promptly as
practicable after each May 15 beginning with the May 15 following the date of
this Indenture, and in any event prior to July 15 in each year, the Trustee
shall mail to each Securityholder, as provided in TIA Section 313(c), a brief
report dated as of May 15 that complies with TIA Section 313(a). The Trustee
also shall comply with TIA Section 313(b).

                  A copy of each report at the time of its mailing to
Securityholders shall be mailed to the Company and filed with the SEC and each
stock exchange (if any) on which the Securities are listed. The Company agrees
to notify promptly the Trustee whenever the Securities become listed on any
stock exchange and of any delisting thereof.

                  SECTION 7.07. Compensation and Indemnity. The Company shall
pay to the Trustee such compensation as shall be agreed upon in writing for its
services hereunder. The Trustee's compensation shall not be limited by any law
on compensation of a trustee of an express trust. The Company shall reimburse
the Trustee upon request for all reasonable out-of-pocket expenses incurred or
made by it, in addition to the compensation for its services. Such expenses
shall include the reasonable compensation and expenses, disbursements and
advances of the Trustee's agents, counsel, accountants and experts. The Company
shall indemnify the Trustee against any and all loss, liability or expense
(including attorneys' fees) incurred by it in connection with the administration
of this trust and the performance of its duties hereunder. The Trustee shall
notify the Company promptly of any claim for which it may seek indemnity.
Failure by the Trustee to so notify the Company shall not relieve the Company of
its obligations hereunder. The Company shall defend the claim and the Trustee
shall cooperate in the defense. The Trustee may have separate counsel and the
Company shall pay the reasonable fees and expenses of such counsel. The Company

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                                                                              91

need not pay for any settlement made without its consent, which consent shall
not be unreasonably withheld. The Company need not reimburse any expense or
indemnify against any loss, liability or expense incurred by the Trustee through
the Trustee's own wilful misconduct, negligence or bad faith.

                  To secure the Company's payment obligations in this Section,
the Trustee shall have a lien prior to the Securities on all money or property
held or collected by the Trustee other than money or property held in trust to
pay principal of and interest on particular Securities.

                  The Company's payment obligations pursuant to this Section
shall survive the discharge of this Indenture. When the Trustee incurs expenses
after the occurrence of a Default specified in Section 6.01(7) or (8) with
respect to the Company, the expenses are intended to constitute expenses of
administration under the Bankruptcy Law.

                  The Trustee shall comply with the provisions of TIA Section
313(b)(2) to the extent applicable.

                  SECTION 7.08. Replacement of Trustee. The Trustee may resign
at any time by so notifying the Company in writing at least 30 days prior to the
date of the proposed resignation. The Holders of a majority in principal amount
of the Securities may remove the Trustee by so notifying the Trustee and may
appoint a successor Trustee. The Company shall remove the Trustee if:

                  (1) the Trustee fails to comply with Section 7.10;

                  (2) the Trustee is adjudged bankrupt or insolvent;

                  (3) a receiver or other public officer takes charge of the
         Trustee or its property; or

                  (4) the Trustee otherwise becomes incapable of acting.

                  If the Trustee resigns, is removed by the Company or by the
Holders of a majority in principal amount of the Securities and such Holders do
not reasonably promptly appoint a successor Trustee, or if a vacancy exists in
the

<PAGE>
                                                                              92

office of Trustee for any reason (the Trustee in such event being referred to
herein as the retiring Trustee), the Company shall promptly appoint a successor
Trustee.

                  A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Securityholders. The retiring Trustee shall promptly transfer all
property held by it as Trustee to the successor Trustee, subject to the lien
provided for in Section 7.07.

                  If a successor Trustee does not take office within 60 days
after the retiring Trustee resigns or is removed, the Company or the Holders of
a majority in principal amount of the Securities may petition any court of
competent jurisdiction for the appointment of a successor Trustee.

                  If the Trustee fails to comply with Section 7.10 or shall fail
to comply with TIA Section 310(b), any Securityholder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee.

                  Notwithstanding the replacement of the Trustee pursuant to
this Section, the Company's obligations under Section 7.07 shall continue for
the benefit of the retiring Trustee.

                  If the Trustee is removed without cause, all fees and expenses
of the Trustee incurred in the administration of the trusts or in performing the
duties hereunder shall be paid to the Trustee prior to the effective date of
such removal.

                  SECTION 7.09. Successor Trustee by Merger. If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Trustee with the same effect as if the
successor Trustee

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                                                                              93

has been named the Trustee herein, provided such corporation shall be otherwise
qualified and eligible under this Article.

                  In case at the time such successor or successors by merger,
conversion or consolidation to the Trustee shall succeed to the trusts created
by this Indenture any of the Securities shall have been authenticated but not
delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Securities so
authenticated; and in case at that time any of the Securities shall not have
been authenticated, any successor to the Trustee may authenticate such
Securities either in the name of any predecessor hereunder or in the name of the
successor to the Trustee; and in all such cases such certificates shall have the
full force which it is anywhere in the Securities or in this Indenture provided
that the certificate of the Trustee shall have.

                  SECTION 7.10. Eligibility; Disqualification. The Trustee shall
at all times satisfy the requirements of TIA Section 310(a). The Trustee shall
always have a combined capital and surplus of at least $50,000,000 as set forth
in its most recent published annual report of condition. The Trustee shall
comply with TIA Section 310(b); provided, however, that there shall be excluded
from the operation of TIA Section 310(b)(1) any indenture or indentures under
which other securities or certificates of interest or participation in other
securities of the Company are outstanding if the requirements for such exclusion
set forth in TIA Section 310(b)(1) are met.

                  SECTION 7.11. Preferential Collection of Claims Against
Company. The Trustee shall comply with TIA Section 311(a), excluding any
creditor relationship listed in TIA Section 311(b). A Trustee who has resigned
or been removed shall be subject to TIA Section 311(a) to the extent indicated.

                                    ARTICLE 8

                       Discharge of Indenture; Defeasance

                  SECTION 8.01. Discharge of Liability on Securities;
Defeasance. (a) When (1) the Company delivers to the Trustee all outstanding
Securities (other than Securities replaced pursuant to Section 2.07) for

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                                                                              94

cancellation or (2) all outstanding Securities have become due and payable,
whether at maturity or on a redemption date as a result of the mailing of a
notice of redemption pursuant to Article 3 hereof and the Company irrevocably
deposits with the Trustee funds sufficient to pay at maturity or upon redemption
all outstanding Securities, including interest thereon to maturity or such
redemption date (other than Securities replaced pursuant to Section 2.07), and
if in either case the Company pays all other sums payable hereunder by the
Company, then this Indenture shall, subject to Section 8.01(c), cease to be of
further effect. The Trustee shall acknowledge satisfaction and discharge of this
Indenture on demand of the Company accompanied by an Officers' Certificate and
an Opinion of Counsel and at the cost and expense of the Company.

                  (b) Subject to Sections 8.01(c) and 8.02, the Company at any
time may terminate (1) all its obligations under the Securities and this
Indenture ("legal defeasance option") or (2) its obligations under Sections
4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12 and 4.15 and
the operation of Sections 6.01(4), 6.01(6), 6.01(7), 6.01(8) and 6.01(9) (but,
in the case of Sections 6.01(7) and (8), with respect only to Significant
Subsidiaries) and the limitations contained in Sections 5.01(3) and (4)
("covenant defeasance option"). The Company may exercise its legal defeasance
option notwithstanding its prior exercise of its covenant defeasance option. If
the Company exercises its legal defeasance option or its covenant defeasance
option, each Subsidiary Guarantor, if any, shall be released from all its
obligations with respect to its Subsidiary Guaranty.

                  If the Company exercises its legal defeasance option, payment
of the Securities may not be accelerated because of an Event of Default with
respect thereto. If the Company exercises its covenant defeasance option,
payment of the Securities may not be accelerated because of an Event of Default
specified in Sections 6.01(4), 6.01(6), 6.01(7), 6.01(8) and 6.01(9) (but, in
the case of Sections 6.01(7) and (8), with respect only to Significant
Subsidiaries) or because of the failure of the Company to comply with Section
5.01(3) or (4).

                  Upon satisfaction of the conditions set forth herein and upon
the written request of the Company, the

<PAGE>
                                                                              95

Trustee shall acknowledge in writing the discharge of those obligations that the
Company terminates.

                  (c) Notwithstanding clauses (a) and (b) above, the Company's
obligations in Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 7.07 and 7.08 and in
this Article 8 shall survive until the Securities have been paid in full.
Thereafter, the Company's obligations in Sections 7.07, 8.04 and 8.05 shall
survive.

                  SECTION 8.02. Conditions to Defeasance. The Company may
exercise its legal defeasance option or its covenant defeasance option only if:

                  (1) the Company irrevocably deposits in trust with the Trustee
         money or U.S. Government Obligations for the payment of principal of
         and interest on the Securities to maturity or redemption, as the case
         may be;

                  (2) the Company delivers to the Trustee a certificate from a
         nationally recognized firm of independent accountants expressing their
         opinion that the payments of principal and interest when due and
         without reinvestment on the deposited U.S. Government Obligations plus
         any deposited money without investment will provide cash at such times
         and in such amounts as will be sufficient to pay principal and interest
         when due on all the Securities to maturity or redemption, as the case
         may be;

                  (3) 123 days pass after the deposit is made and during the
         123-day period no Default specified in Sections 6.01(7) or (8) with
         respect to the Company occurs which is continuing at the end of the
         period;

                  (4) the deposit does not constitute a default under any other
         agreement binding on the Company;

                  (5) the Company delivers to the Trustee an Opinion of Counsel
         to the effect that the trust resulting from the deposit does not
         constitute, or is qualified as, a regulated investment company under
         the Investment Company Act of 1940;

                  (6) in the case of the legal defeasance option, the Company
         shall have delivered to the Trustee an

<PAGE>
                                                                              96

         Opinion of Counsel stating that (A) the Company has received from, or
         there has been published by, the Internal Revenue Service a ruling, or
         (B) since the date of this Indenture there has been a change in the
         applicable Federal income tax law, in either case to the effect that,
         and based thereon such Opinion of Counsel shall confirm that, the
         Securityholders will not recognize income, gain or loss for Federal
         income tax purposes as a result of such defeasance and will be subject
         to Federal income tax on the same amounts, in the same manner and at
         the same times as would have been the case if such defeasance had not
         occurred;

                  (7) in the case of the covenant defeasance option, the Company
         shall have delivered to the Trustee an Opinion of Counsel to the effect
         that the Securityholders will not recognize income, gain or loss for
         Federal income tax purposes as a result of such covenant defeasance and
         will be subject to Federal income tax on the same amounts, in the same
         manner and at the same times as would have been the case if such
         covenant defeasance had not occurred; and

                  (8) the Company delivers to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that all conditions
         precedent to the defeasance and discharge of the Securities as
         contemplated by this Article 8 have been complied with.

                  Before or after a deposit, the Company may make arrangements
satisfactory to the Trustee for the redemption of Securities at a future date in
accordance with Article 3.

                  SECTION 8.03. Application of Trust Money. The Trustee shall
hold in trust money or U.S. Government Obligations deposited with it pursuant to
this Article 8. It shall apply the deposited money and the money from U.S.
Government Obligations through the Paying Agent and in accordance with this
Indenture to the payment of principal of and interest on the Securities.

                  SECTION 8.04. Repayment to Company. The Trustee and the Paying
Agent shall promptly turn over to the Company upon written request any excess
money or securities held by them at any time.

<PAGE>
                                                                              97

                  Subject to any applicable abandoned property law, the Trustee
and the Paying Agent shall pay to the Company upon request any money held by
them for the payment of principal of or interest on the Securities that remains
unclaimed for two years, and, thereafter, Securityholders entitled to the money
must look to the Company for payment as general creditors.

                  SECTION 8.05. Indemnity for Government Obligations. The
Company shall pay and shall indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against deposited U.S. Government Obligations or
the principal and interest received on such U.S. Government Obligations.

                  SECTION 8.06. Reinstatement. If the Trustee or Paying Agent is
unable to apply any money or U.S. Government Obligations in accordance with this
Article 8 by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Company's obligations under this
Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to this Article 8 until such time as the Trustee
or Paying Agent is permitted to apply all such money or U.S. Government
Obligations in accordance with this Article 8; provided, however, that, if the
Company has made any payment of interest on or principal of any Securities
because of the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Securities to receive such payment from the
money or U.S. Government Obligations held by the Trustee or Paying Agent.

                                    ARTICLE 9

                                   Amendments

                  SECTION 9.01. Without Consent of Holders. The Company, the
Subsidiary Guarantors, if any, and the Trustee may amend this Indenture or the
Securities without notice to or consent of any Securityholder:

                  (1) to cure any ambiguity, omission, defect or inconsistency;

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                                                                              98

                  (2) to comply with Article 5;

                  (3) to provide for uncertificated Securities in addition to or
         in place of certificated Securities; provided, however, that the
         uncertificated Securities are issued in registered form for purposes of
         Section 163(f) of the Code or in a manner such that the uncertificated
         Securities are described in Section 163(f)(2)(B) of the Code;

                  (4) to add Guarantees with respect to the Securities,
         including Subsidiary Guaranties, or to secure the Securities;

                  (5) to add to the covenants of the Company or any Subsidiary
         Guarantors for the benefit of the Holders or to surrender any right or
         power herein conferred upon the Company or any Subsidiary Guarantor;

                  (6) to make any change that does not adversely affect the
         rights of any Securityholder; or

                  (7) to comply with any requirements of the SEC in connection
         with qualifying, or maintaining the qualification of, this Indenture
         under the TIA.

                  After an amendment under this Section becomes effective, the
Company shall mail to Securityholders a notice briefly describing such
amendment. The failure to give such notice to all Securityholders, or any defect
therein, shall not impair or affect the validity of an amendment under this
Section.

                  SECTION 9.02. With Consent of Holders. The Company, the
Subsidiary Guarantors, if any, and the Trustee may amend this Indenture or the
Securities without notice to any Securityholder but with the written consent of
the Holders of at least a majority in principal amount of the Securities then
outstanding (including consents obtained in connection with a tender offer or
exchange for the Securities). However, without the consent of each
Securityholder affected thereby, an amendment or waiver, including a waiver
pursuant to Section 6.04, may not:

                  (1) reduce the amount of Securities whose Holders must consent
         to an amendment;

<PAGE>
                                                                              99

                  (2) reduce the rate of or extend the time for payment of
         interest on any Security;

                  (3) reduce the principal amount of or extend the Stated
         Maturity of any Security;

                  (4) change the provisions applicable to the redemption of any
         Security set forth in such Security or Article 3;

                  (5) make any Security payable in money other than that stated
         in the Security;

                  (6) impair the right of any Holder to receive payment of
         principal of and interest on such Holder's Securities on or after the
         due dates therefor or to institute suit for the enforcement of any
         payment on or with respect to such Holder's Securities;

                  (7) make any change in Section 6.04 or 6.07 or the second
         sentence of this Section;

                  (8) make any changes in the ranking or priority of any
         Security that would adversely affect the Securityholders; or

                  (9) make any change in any Subsidiary Guaranty that would
         adversely affect the Securityholders.

                  It shall not be necessary for the consent of the Holders under
this Section to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent approves the substance thereof.

                  After an amendment under this Section becomes effective, the
Company shall mail to Securityholders a notice briefly describing such
amendment. The failure to give such notice to all Securityholders, or any defect
therein, shall not impair or affect the validity of an amendment under this
Section.

                  SECTION 9.03. Compliance with Trust Indenture Act. Every
amendment to this Indenture or the Securities shall comply with the TIA as then
in effect.

                  SECTION 9.04. Revocation and Effect of Consents and Waivers. A
consent to an amendment or a waiver by a Holder of a Security shall bind the
Holder and every

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                                                                             100

subsequent Holder of that Security or portion of the Security that evidences the
same debt as the consenting Holder's Security, even if notation of the consent
or waiver is not made on the Security. However, any such Holder or subsequent
Holder may revoke the consent or waiver as to such Holder's Security or portion
of the Security if the Trustee receives the notice of revocation before the date
the amendment or waiver becomes effective. After an amendment or waiver becomes
effective, it shall bind every Securityholder. An amendment or waiver becomes
effective upon the execution of such amendment or waiver by the Trustee.

                  The Company may, but shall not be obligated to, fix a record
date for the purpose of determining the Securityholders entitled to give their
consent or take any other action described above or required or permitted to be
taken pursuant to this Indenture. If a record date is fixed, then
notwithstanding the immediately preceding paragraph, those Persons who were
Securityholders at such record date (or their duly designated proxies), and only
those Persons, shall be entitled to give such consent or to revoke any consent
previously given or to take any such action, whether or not such Persons
continue to be Holders after such record date. No such consent shall be valid or
effective for more than 120 days after such record date.

                  SECTION 9.05. Notation on or Exchange of Securities. If an
amendment or waiver changes the terms of a Security, the Trustee may require the
Holder of the Security to deliver it to the Trustee. The Trustee may place an
appropriate notation on the Security regarding the changed terms and return it
to the Holder. Alternatively, if the Company or the Trustee so determines, the
Company in exchange for the Security shall issue and the Trustee shall
authenticate a new Security that reflects the changed terms. Failure to make the
appropriate notation or to issue a new Security shall not affect the validity of
such amendment or waiver.

                  SECTION 9.06. Trustee To Sign Amendments. The Trustee shall
sign any amendment authorized pursuant to this Article 9 if the amendment does
not adversely affect the rights, duties, liabilities or immunities of the
Trustee. If it does, the Trustee may but need not sign it. In signing such
amendment the Trustee shall be entitled to receive indemnity reasonably
satisfactory to it and to

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                                                                             101

receive, and (subject to Section 7.01) shall be fully protected in relying upon,
an Officers' Certificate and an Opinion of Counsel stating that such amendment
is authorized or permitted by this Indenture.

                  SECTION 9.07. Payment for Consent. Neither the Company nor any
Affiliate of the Company shall, directly or indirectly, pay or cause to be paid
any consideration, whether by way of interest, fee or otherwise, to any Holder
for or as an inducement to any consent, waiver or amendment of any of the terms
or provisions of this Indenture or the Securities unless such consideration is
offered to be paid to all Holders that so consent, waive or agree to amend in
the time frame set forth in solicitation documents relating to such consent,
waiver or agreement.

                                   ARTICLE 10

                              Subsidiary Guaranties

                  SECTION 10.01. Guaranties. Each Subsidiary Guarantor hereby
unconditionally and irrevocably guarantees, jointly and severally, to each
Holder and to the Trustee and its successors and assigns (a) the full and
punctual payment of principal of and interest on the Securities when due,
whether at maturity, by acceleration, by redemption or otherwise, and all other
monetary obligations of the Company under this Indenture and the Securities and
(b) the full and punctual performance within applicable grace periods of all
other obligations of the Company under this Indenture and the Securities (all
the foregoing being hereinafter collectively called the "Guarantied
Obligations"). Each Subsidiary Guarantor further agrees that the Guarantied
Obligations may be extended or renewed, in whole or in part, without notice or
further assent from such Subsidiary Guarantor and that such Subsidiary Guarantor
will remain bound under this Article 10 notwithstanding any extension or renewal
of any Guarantied Obligation.

                  Each Subsidiary Guarantor waives presentation to, demand of,
payment from and protest to the Company of any of the Guarantied Obligations and
also waives notice of protest for nonpayment. Each Subsidiary Guarantor waives
notice of any default under the Securities or the Guarantied Obligations. The
obligations of each Subsidiary

<PAGE>
                                                                             102

Guarantor hereunder shall not be affected by (a) the failure of any Holder or
the Trustee to assert any claim or demand or to enforce any right or remedy
against the Company or any other Person under this Indenture, the Securities or
any other agreement or otherwise; (b) any extension or renewal of any thereof;
(c) any rescission, waiver, amendment or modification of any of the terms or
provisions of this Indenture, the Securities or any other agreement; (d) the
release of any security held by any Holder or the Trustee for the Guarantied
Obligations or any of them; (e) the failure of any Holder or the Trustee to
exercise any right or remedy against any other guarantor of the Guarantied
Obligations; or (f) except as set forth in Section 10.06, any change in the
ownership of such Subsidiary Guarantor.

                  Each Subsidiary Guarantor further agrees that its Subsidiary
Guaranty herein constitutes a guarantee of payment, performance and compliance
when due (and not a guarantee of collection) and waives any right to require
that any resort be had by any Holder or the Trustee to any security held for
payment of the Guarantied Obligations.

                  Except as expressly set forth in Sections 8.01(b), 10.02 and
10.06, the obligations of each Subsidiary Guarantor hereunder shall not be
subject to any reduction, limitation, impairment or termination for any reason,
including any claim of waiver, release, surrender, alteration or compromise, and
shall not be subject to any defense of setoff, counterclaim, recoupment or
termination whatsoever or by reason of the invalidity, illegality or
unenforceability of the Guarantied Obligations or otherwise. Without limiting
the generality of the foregoing, the obligations of each Subsidiary Guarantor
herein shall not be discharged or impaired or otherwise affected by the failure
of any Holder or the Trustee to assert any claim or demand or to enforce any
remedy under this Indenture, the Securities or any other agreement, by any
waiver or modification of any thereof, by any default, failure or delay, willful
or otherwise, in the performance of the obligations, or by any other act or
thing or omission or delay to do any other act or thing which may or might in
any manner or to any extent vary the risk of such Subsidiary Guarantor or would
otherwise operate as a discharge of such Subsidiary Guarantor as a matter of law
or equity.

<PAGE>
                                                                             103

                  Each Subsidiary Guarantor further agrees that its Guarantee
herein shall continue to be effective or be reinstated, as the case may be, if
at any time payment, or any part thereof, of principal of or interest on any
Obligation is rescinded or must otherwise be restored by any Holder or the
Trustee upon the bankruptcy or reorganization of the Company or otherwise.

                  In furtherance of the foregoing and not in limitation of any
other right which any Holder or the Trustee has at law or in equity against any
Subsidiary Guarantor by virtue hereof, upon the failure of the Company to pay
the principal of or interest on any Obligation when and as the same shall become
due, whether at maturity, by acceleration, by redemption or otherwise, or to
perform or comply with any other Guarantied Obligation, each Subsidiary
Guarantor hereby promises to and shall, upon receipt of written demand by the
Trustee, forthwith pay, or cause to be paid, in cash, to the Holders or the
Trustee an amount equal to the sum of (1) the unpaid amount of such Guarantied
Obligations, (2) accrued and unpaid interest on such Guarantied Obligations (but
only to the extent not prohibited by law) and (3) all other monetary Guarantied
Obligations of the Company to the Holders and the Trustee.

                  Each Subsidiary Guarantor further agrees that, as between it,
on the one hand, and the Holders and the Trustee, on the other hand, (x) the
maturity of the Guarantied Obligations hereby may be accelerated as provided in
Article 6 for the purposes of such Subsidiary Guarantor's Subsidiary Guaranty
herein, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the Guarantied Obligations, and (y) in the event
of any declaration of acceleration of such Guarantied Obligations as provided in
Article 6, such Guarantied Obligations (whether or not due and payable) shall
forthwith become due and payable by such Subsidiary Guarantor for the purposes
of this Section.

                  Each Subsidiary Guarantor also agrees to pay any and all costs
and expenses (including reasonable attorneys' fees and expenses) incurred by the
Trustee or any Holder in enforcing any rights under this Section.

                  SECTION 10.02. Limitation on Liability. Any term or provision
of this Indenture to the contrary notwithstanding, the maximum aggregate amount
of the

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                                                                             104

Guarantied Obligations by any Subsidiary Guarantor shall not exceed the maximum
amount that can be hereby guaranteed without rendering this Indenture, as it
relates to such Subsidiary Guarantor, voidable under applicable law relating to
fraudulent conveyance or fraudulent transfer or similar laws affecting the
rights of creditors generally.

                  SECTION 10.03. Successors and Assigns. This Article 10 shall
be binding upon each Subsidiary Guarantor and its successors and assigns and
shall enure to the benefit of the successors and assigns of the Trustee and the
Holders and, in the event of any transfer or assignment of rights by any Holder
or the Trustee, the rights and privileges conferred upon that party in this
Indenture and in the Securities shall automatically extend to and be vested in
such transferee or assignee, all subject to the terms and conditions of this
Indenture.

                  SECTION 10.04. No Waiver. Neither a failure nor a delay on the
part of either the Trustee or the Holders in exercising any right, power or
privilege under this Article 10 shall operate as a waiver thereof, nor shall a
single or partial exercise thereof preclude any other or further exercise of any
right, power or privilege. The rights, remedies and benefits of the Trustee and
the Holders herein expressly specified are cumulative and not exclusive of any
other rights, remedies or benefits which either may have under this Article 10
at law, in equity, by statute or otherwise.

                  SECTION 10.05. Modification. No modification, amendment or
waiver of any provision of this Article 10, nor the consent to any departure by
any Subsidiary Guarantor therefrom, shall in any event be effective unless the
same shall be in writing and signed by the Trustee, and then such waiver or
consent shall be effective only in the specific instance and for the purpose for
which given. No notice to or demand on any Subsidiary Guarantor in any case
shall entitle such Subsidiary Guarantor to any other or further notice or demand
in the same, similar or other circumstances.

                  SECTION 10.06. Release of Subsidiary Guarantor. (a) Upon (i)
the sale or other disposition (including by way of consolidation or merger) of
any Subsidiary Guarantor (other than to the Company or an Affiliate of the
Company), (ii) the sale or disposition of all or substantially all

<PAGE>
                                                                             105

the assets of such Subsidiary Guarantor (other than to the Company or an
Affiliate of the Company) or (iii) the designation of such Subsidiary Guarantor
as an Unrestricted Subsidiary, in each case in accordance with the provisions of
this Indenture,(b) if a Subsidiary Guarantor originally became a Subsidiary
Guarantor pursuant to the requirements of Section 4.08 in connection with such
Subsidiary Guarantor's Guarantee of other Indebtedness or creation of a Lien to
secure the payment of other Indebtedness, upon the release or discharge of the
Guarantee or security of payment of other Indebtedness (other than a discharge
by or as a result of payment under such Guarantee or security), subject to
paragraph 5 of Section 10.01, when all the Guarantied Obligations shall have
been irrevocably paid in full, such Subsidiary Guarantor shall be deemed
released from all obligations under such Subsidiary Guaranty, this Indenture and
the Securities without any further action required on the part of the Trustee or
any Holder. At the request of the Company, the Trustee shall execute and deliver
an appropriate instrument evidencing such release.

                  SECTION 10.07. Form of Supplemental Indenture. Where this
Indenture requires that any Restricted Subsidiary execute and deliver a
supplemental indenture to this Indenture pursuant to which such Restricted
Subsidiary guarantees payment of the Securities, such Restricted Subsidiary
shall execute and deliver a supplemental indenture in the form attached to this
Indenture as Exhibit I.

                                   ARTICLE 11

                                  Miscellaneous

                  SECTION 11.01. Trust Indenture Act Controls. If any provision
of this Indenture limits, qualifies or conflicts with another provision which is
required to be included in this Indenture by the TIA, the required provision
shall control.

<PAGE>
                                                                             106

                  SECTION 11.02. Notices. Any notice or communication shall be
in writing and delivered in person or mailed by first-class mail addressed as
follows:

                  if to the Company:

                      CITGO Petroleum Corporation
                      One Warren Place,
                      6100 South Yale Avenue
                      Tulsa, Oklahoma 74136

                      Attention:  Corporate Secretary

                  if to the Trustee:

                      The Bank of New York
                      101 Barclay Street, Floor 8W
                      New York, New York 10286

                      Attention:  Corporate Trust Administrator

                  The Company or the Trustee by notice to the other may
designate additional or different addresses for subsequent notices or
communications.

                  Any notice or communication mailed to a Securityholder shall
be mailed to the Securityholder at the Securityholder's address as it appears on
the registration books of the Registrar and shall be sufficiently given if so
mailed within the time prescribed.

                  Any notice or communication shall also be so mailed to any
Person described in TIA Section 313(c), to the extent required by the TIA.
Copies of any such communication or notice to a Holder shall also be mailed to
the Trustee, the Registrar, co-registrar, Paying Agent and transfer agent at the
same time.

                  Failure to mail a notice or communication to a Securityholder
or any defect in it shall not affect its sufficiency with respect to other
Securityholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it.

                  Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice,
either before or after the

<PAGE>
                                                                             107

event, and such waiver shall be the equivalent of such notice. Waiver of notice
by Holders shall be filed with the Trustee, but such filing shall not be a
condition precedent to the validity of any action taken in reliance upon such
waiver.

                  In case by reason of the suspension of regular mail service or
by reason of any other cause it shall be impracticable to give such notice by
mail, then such notification as shall be made with the approval of the Trustee
shall constitute a sufficient notification for every purpose hereunder.

                  SECTION 11.03. Communication by Holders with Other Holders.
Securityholders may communicate pursuant to TIA Section 312(b) with other
Securityholders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Registrar and anyone else shall have
the protection of TIA Section 312(c).

                  SECTION 11.04. Certificate and Opinion as to Conditions
Precedent. Upon any request or application by the Company to the Trustee to take
or refrain from taking any action under this Indenture, the Company shall
furnish to the Trustee:

                  (1) an Officers' Certificate in form and substance reasonably
         satisfactory to the Trustee stating that, in the opinion of the
         signers, all conditions precedent, if any, provided for in this
         Indenture relating to the proposed action have been complied with; and

                  (2) an Opinion of Counsel in form and substance reasonably
         satisfactory to the Trustee stating that, in the opinion of such
         counsel, all such conditions precedent have been complied with.

                  SECTION 11.05. Statements Required in Certificate or Opinion.
Each certificate or opinion with respect to compliance with a covenant or
condition provided for in this Indenture shall include:

                  (1) a statement that the individual making such certificate or
         opinion has read such covenant or condition;

<PAGE>
                                                                             108

                  (2) a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                  (3) a statement that, in the opinion of such individual, he
         has made such examination or investigation as is necessary to enable
         him to express an informed opinion as to whether or not such covenant
         or condition has been complied with; and

                  (4) a statement as to whether or not, in the opinion of such
         individual, such covenant or condition has been complied with.

provided, however, that, with respect to matters of fact, an Opinion of Counsel
may rely on an Officers' Certificate or certificates of public officials.

                  SECTION 11.06. When Securities Disregarded. In determining
whether the Holders of the required principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company
or by any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company shall be disregarded and
deemed not to be outstanding, except that, for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, waiver
or consent, only Securities which the Trustee knows are so owned shall be so
disregarded. Also, subject to the foregoing, only Securities outstanding at the
time shall be considered in any such determination.

                  SECTION 11.07. Rules by Trustee, Paying Agent and Registrar.
The Trustee may make reasonable rules for action by or a meeting of
Securityholders. The Registrar and the Paying Agent may make reasonable rules
for their functions.

                  SECTION 11.08. Legal Holidays. If a payment date is a Legal
Holiday, payment shall be made on the next succeeding day that is not a Legal
Holiday, and no interest shall accrue for the intervening period. If a regular
record date is a Legal Holiday, the record date shall not be affected.

<PAGE>
                                                                             109

                  SECTION 11.09. Governing Law. This Indenture and the
Securities shall be governed by, and construed in accordance with, the laws of
the State of New York but without giving effect to applicable principles of
conflicts of law to the extent that the application of the laws of another
jurisdiction would be required thereby.

                  SECTION 11.10. No Recourse Against Others. A director,
officer, employee, controlling person, stockholder or other equity holder as
such, of the Company shall not have any liability for any obligations, covenants
or agreements of the Company under the Securities or this Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. By accepting a Security, each Securityholder shall waive and release
all such liability. The waiver and release shall be part of the consideration
for the issue of the Securities.

                  SECTION 11.11. Successors. All agreements of the Company in
this Indenture and the Securities shall bind its successors. All agreements of
the Trustee in this Indenture shall bind its successors.

                  SECTION 11.12. Multiple Originals. The parties may sign any
number of copies of this Indenture. Each signed copy shall be an original, but
all of them together represent the same agreement. One signed copy is enough to
prove this Indenture.

                  SECTION 11.13. Table of Contents; Headings. The table of
contents, cross-reference sheet and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not
intended to be considered a part hereof and shall not modify or restrict any of
the terms or provisions hereof.

<PAGE>
                                                                             110

                  IN WITNESS WHEREOF, the parties have caused this Indenture to
be duly executed as of the date first written above.

                                CITGO PETROLEUM CORPORATION

                                by
                                      /s/ EDDIE R. HUMPHREY
                                      --------------------------
                                      Name:  Eddie R. Humphrey
                                      Title: Senior Vice President
                                      Finance Administration &
                                      Chief Financial Officer

                                BANK OF NEW YORK, as Trustee

                                by
                                      /s/ VAN K. BROWN
                                      --------------------------
                                      Name:  Van K. Brown
                                      Title: Vice President<PAGE>
                                                                   EXHIBIT 10.20
                                                                  Execution Copy

================================================================================

                            364-DAY CREDIT AGREEMENT

                          Dated as of December 11, 2002

                                      among

                          CITGO PETROLEUM CORPORATION,

                                as the Borrower,

                             BANK OF AMERICA, N.A.,
                            as Administrative Agent,

                              JPMORGAN CHASE BANK,
                              as Syndication Agent,

                                SOCIETE GENERALE,
                             as Documentation Agent,

                                       and

                         The Other Lenders Party Hereto

                         BANC OF AMERICA SECURITIES LLC,
                                       AND
                            JPMORGAN SECURITIES INC.,
                                       as

                    Joint Lead Arrangers and Co-Book Managers

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<Table>

<S>                                                                                                              <C>
ARTICLE I.  DEFINITIONS AND ACCOUNTING TERMS......................................................................1
         1.01         Defined Terms...............................................................................1
         1.02         Other Interpretive Provisions..............................................................20
         1.03         Accounting Terms...........................................................................21
         1.04         Rounding...................................................................................21
         1.05         References to Agreements and Laws..........................................................21
         1.06         Times of Day...............................................................................21

ARTICLE II.  THE COMMITMENTS AND BORROWINGS......................................................................21
         2.01         Loans......................................................................................21
         2.02         Borrowings, Conversions and Continuations of Loans.........................................22
         2.03         Prepayments................................................................................23
         2.04         Termination or Reduction of Commitments....................................................24
         2.05         Repayment of Loans.........................................................................24
         2.06         Interest...................................................................................24
         2.07         Fees.......................................................................................25
         2.08         Computation of Interest and Fees...........................................................26
         2.09         Evidence of Debt...........................................................................26
         2.10         Payments Generally.........................................................................26
         2.11         Sharing of Payments........................................................................28
         2.12         Extension of Maturity Date.................................................................28
         2.13         Term-Out Option............................................................................29

ARTICLE III.  TAXES, YIELD PROTECTION AND ILLEGALITY.............................................................30
         3.01         Taxes......................................................................................30
         3.02         Illegality.................................................................................31
         3.03         Inability to Determine Rates...............................................................32
         3.04         Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurodollar Rate
                      Loans......................................................................................32
         3.05         Funding Losses.............................................................................33
         3.06         Matters Applicable to all Requests for Compensation........................................33
         3.07         Survival...................................................................................34

ARTICLE IV.  CONDITIONS PRECEDENT TO CREDIT EXTENSIONS...........................................................34
         4.01         Conditions of Initial Borrowing............................................................34
         4.02         Conditions to all Borrowings...............................................................36

ARTICLE V.  REPRESENTATIONS AND WARRANTIES.......................................................................36
         5.01         Corporate Existence: Power; Compliance with Laws...........................................36
         5.02         Corporate Authorization; No Contravention..................................................37
         5.03         Governmental Authorization; Other Consents.................................................37
         5.04         Binding Effect.............................................................................37
         5.05         Litigation.................................................................................38
         5.06         No Default.................................................................................38
         5.07         Fire, Strike, Act of God, etc..............................................................38
         5.08         Liens......................................................................................38
         5.09         ERISA......................................................................................38
         5.10         Use of Proceeds; Margin Regulations........................................................39
         5.11         Title to Properties........................................................................39
         5.12         Taxes......................................................................................39
</Table>

                                       i

<PAGE>

<Table>

<S>                   <C>                                                                                        <C>
         5.13         Financial Condition........................................................................40
         5.14         Environmental Matters......................................................................40
         5.15         Regulated Entities.........................................................................41
         5.16         Copyrights, Patents, Trademarks and Licenses, etc..........................................41
         5.17         Subsidiaries...............................................................................41
         5.18         Solvency...................................................................................41
         5.19         Full Disclosure............................................................................41

ARTICLE VI.  AFFIRMATIVE COVENANTS...............................................................................42
         6.01         Financial Statements.......................................................................42
         6.02         Certificates; Other Information............................................................43
         6.03         Notices....................................................................................44
         6.04         Preservation of Corporate Existence, Etc...................................................44
         6.05         Insurance..................................................................................45
         6.06         Taxes......................................................................................45
         6.07         Compliance with Laws.......................................................................45
         6.08         Compliance with Material Contractual Obligations...........................................46
         6.09         Inspection of Property and Books and Records...............................................46
         6.10         Maintenance of Properties..................................................................47
         6.11         Use of Proceeds............................................................................47

ARTICLE VII.  NEGATIVE COVENANTS.................................................................................47
         7.01         Negative Covenants Applicable to the Borrower and Restricted Subsidiaries..................47
         7.02         Financial Covenants........................................................................55

ARTICLE VIII.  EVENTS OF DEFAULT.................................................................................55
         8.01         Event of Default...........................................................................55
         8.02         Remedies Upon Event of Default.............................................................57
         8.03         Application of Funds.......................................................................58

ARTICLE IX.  ADMINISTRATIVE AGENT................................................................................59
         9.01         Appointment and Authorization of Administrative Agent......................................59
         9.02         Delegation of Duties.......................................................................59
         9.03         Liability of Administrative Agent..........................................................59
         9.04         Reliance by Administrative Agent...........................................................60
         9.05         Notice of Default..........................................................................60
         9.06         Credit Decision; Disclosure of Information by Administrative Agent.........................60
         9.07         Indemnification of Administrative Agent....................................................61
         9.08         Administrative Agent in its Individual Capacity............................................61
         9.09         Successor Administrative Agent.............................................................62
         9.10         Administrative Agent May File Proofs of Claim..............................................62
         9.11         Other Agents; Arrangers and Managers.......................................................63

ARTICLE X.  MISCELLANEOUS........................................................................................63
         10.01        Amendments, Etc............................................................................63
         10.02        Notices and Other Communications; Facsimile Copies.........................................64
         10.03        No Waiver; Cumulative Remedies.............................................................65
         10.04        Attorney Costs, Expenses and Taxes.........................................................66
         10.05        Indemnification by the Borrower............................................................66
         10.06        Payments Set Aside.........................................................................67
         10.07        Successors and Assigns.....................................................................67
         10.08        Confidentiality............................................................................70
         10.09        Set-off....................................................................................71
</Table>

                                       ii

<PAGE>

<Table>

<S>                   <C>                                                                                        <C>
         10.10        Interest Rate Limitation...................................................................72
         10.11        Counterparts...............................................................................72
         10.12        Integration................................................................................72
         10.13        Survival of Representations and Warranties.................................................72
         10.14        Severability...............................................................................72
         10.15        Tax Forms..................................................................................73
         10.16        Replacement of Lenders.....................................................................74
         10.17        Governing Law..............................................................................75
         10.18        Waiver of Right to Trial by Jury...........................................................75
         10.19        Termination of Commitments Under Existing Credit Agreements................................75
         10.20        Entire Agreement...........................................................................76

         SIGNATURES.............................................................................................S-1

</Table>

                                      iii

<PAGE>

<Table>

SCHEDULES

<S>                   <C>
         2.01         Commitments and Pro Rata Shares
         4.01         Qualifications as a Foreign Corporation
         5.13(c)      Off-Balance Sheet Liabilities
         5.13(d)      Potential Material Adverse Effect
         5.14         Environmental Matters
         5.17         Subsidiaries and Other Equity Investments
         7.01(a)      Existing Liens
         7.01(c)      Existing Investments
         10.02        Administrative Agent's Office, Certain Addresses for Notices

EXHIBITS

                  FORM OF

                  A        Loan Notice
                  B        Note
                  C        Compliance Certificate
                  D        Assignment and Assumption
        E-1 and E-2        Form of Opinions of Counsel to the Borrower
                E-3        Form of Opinion of Counsel to PDVSA
</Table>

                                       iv

<PAGE>

                                CREDIT AGREEMENT

         This CREDIT AGREEMENT ("Agreement") is entered into as of December 11,
2002, among CITGO PETROLEUM CORPORATION, a Delaware corporation (the
"Borrower"), each lender from time to time party hereto (collectively, the
"Lenders" and individually, a "Lender"), and BANK OF AMERICA, N.A., as
Administrative Agent.

         WHEREAS, the Borrower has requested that the Lenders provide a
revolving credit facility, and the Lenders are willing to do so on the terms and
conditions set forth herein.

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

                                   ARTICLE I.
                        DEFINITIONS AND ACCOUNTING TERMS

         1.01 DEFINED TERMS. As used in this Agreement, the following terms
shall have the meanings set forth below:

         "Administrative Agent" means Bank of America in its capacity as
administrative agent under any of the Loan Documents, or any successor
administrative agent.

         "Administrative Agent's Office" means the Administrative Agent's
address and, as appropriate, account as set forth on Schedule 10.02, or such
other address or account as the Administrative Agent may from time to time
notify the Borrower and the Lenders.

         "Administrative Questionnaire" means an Administrative Questionnaire in
a form supplied by the Administrative Agent.

         "Affiliate" means, as to any Person, (a) any other Person which,
directly or indirectly, is in control of, is controlled by, or is under common
control with, such Person or (b) in the case of the Borrower or any Subsidiary,
any Person who is a director or officer of such Person or of any Person
described in the foregoing clause (a). For purposes of this definition,
"control" (and with correlative meaning "controlled" and "under common control")
of a Person shall mean (i) the power, direct or indirect, (A) to vote 50% or
more of the securities having ordinary voting power for the election of
directors of such Person or (B) 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 or (ii) the ownership, direct or
indirect, of 10% or more of any class of Voting Stock of such Person (if such
class of Voting Stock is publicly held).

         "Affiliate Guarantee Transaction" means any transaction in which the
Borrower or any Subsidiary of the Borrower shall guarantee any Indebtedness or
obligations of any Person that is at the time an Affiliate of the Borrower or of
such Subsidiary, as the case may be, provided that, as of the date of such
guarantee, the Borrower would be in compliance with each of Sections 7.02(a) and
(c) of this Agreement.

                                       1
<PAGE>

         "Agent-Related Persons" means the Administrative Agent, together with
its Affiliates (including, in the case of Bank of America in its capacity as the
Administrative Agent, Banc of America Securities LLC), and the officers,
directors, employees, agents and attorneys-in-fact of such Persons and
Affiliates.

         "Aggregate Commitment" or "Aggregate Commitments" mean the Commitments
of all the Lenders.

         "Agreement" means this Credit Agreement.

         "Applicable Rate" means the following percentages per annum based upon
the most recent Compliance Certificate received by the Administrative Agent
pursuant to Section 6.02(a):

                                APPLICABLE RATE

                               (IN BASIS POINTS)

<Table>
<Caption>
                                                                        EURODOLLAR                  EURODOLLAR
                                                                           RATE                        RATE
   PRICING          CAPITALIZATION          FACILITY     UTILIZATION    APPLICABLE TO      BASE      APPLICABLE
    LEVEL                RATIO                FEE           FEE        REVOLVER LOANS      RATE     TO TERM LOANS
-------------- ------------------------   ------------ -------------- ----------------- ---------- --------------

<S>            <C>                        <C>          <C>             <C>              <C>        <C>
1              < 35.00:1                         25.0           25.0           87.5            0.0       112.5

2              > or = 35.00:1 but <40.00:1       30.0           25.0          107.5            0.0       132.5

3              > or = 40.00:1 but <50.00:1       32.5           25.0          117.5            0.0       142.5

4              > or =50.00:1                     35.0           25.0          127.5            0.0       152.5

</Table>

Any increase or decrease in the Applicable Rate resulting from a change in the
Capitalization Ratio shall become effective as of the first Business Day
immediately following the date a Compliance Certificate is delivered pursuant to
Section 6.02(a); provided, however, that if a Compliance Certificate is not
delivered when due in accordance with such Section, then Pricing Level 4 shall
apply as of the first Business Day after the date on which such Compliance
Certificate was required to have been delivered until such Compliance
Certificate has been delivered. The Applicable Rate in effect from the Closing
Date to the next date of determination shall be determined based upon Pricing
Level 2.

         "Arrangers" means Banc of America Securities LLC and JPMorgan
Securities Inc., in their capacity as joint lead arrangers and co-book managers.

         "Assignment and Assumption" means an Assignment and Assumption
substantially in the form of Exhibit D.

         "Attorney Costs" means and includes (a) with respect to the
negotiation, syndication, preparation, execution and delivery of this Agreement
and each other Loan Document and any modifications or waivers related thereto,
all reasonable fees and disbursements of any law firm

                                       2
<PAGE>

or other external counsel and the allocated cost of internal legal services and
all disbursements of internal counsel to the extent that the services performed
by internal counsel do not duplicate services performed by external counsel;
provided that invoices for such fees and disbursements shall be rendered in
reasonable detail; and (b) with respect to each particular matter regarding
enforcement or protection of the rights of any Lender, the Administrative Agent
in connection with enforcement or protection of its rights pursuant to this
Agreement, all reasonable fees and disbursements of any law firm or other
external counsel (including, if such Person has not elected to use outside
counsel for such particular matter or if the Company shall have consented, the
allocated cost of internal legal services and all disbursements of internal
legal counsel for such matter).

         "Attributable Indebtedness" means, on any date, in respect of any
Synthetic Lease obligation, the capitalized amount of the remaining lease
payments under the relevant lease that would appear on a balance sheet of such
Person prepared as of such date in accordance with GAAP if such lease were
accounted for as a capital lease.

         "Audited Financial Statements" means the audited consolidated balance
sheet of the Borrower and its consolidated Subsidiaries for the fiscal year
ended December 31, 2001, and the related consolidated statements of income or
operations, shareholder's equity and cash flows for such fiscal year of the
Borrower and its Subsidiaries, including the notes thereto.

         "Availability Period" means the period from and including the Closing
Date to the Maturity Date.

         "Bank of America" means Bank of America, N.A. and its successors.

         "Base Rate" means for any day a fluctuating rate per annum equal to the
higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest
in effect for such day as publicly announced from time to time by Bank of
America as its "prime rate." The "prime rate" is a rate set by Bank of America
based upon various factors including Bank of America'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. Any change in such rate announced by Bank of America shall take effect at
the opening of business on the day specified in the public announcement of such
change.

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

         "Borrower" has the meaning specified in the introductory paragraph
hereto.

         "Borrowing" means a borrowing consisting of simultaneous Loans of the
same Type and, in the case of Eurodollar Rate Loans, having the same Interest
Period made by each of the Lenders pursuant to Section 2.01.

         "Business Day" means any day other than a Saturday, Sunday or other day
on which commercial banks are authorized to close under the Laws of, or are in
fact closed in, the state where the Administrative Agent's Office is located
and, if such day relates to any Eurodollar

                                       3
<PAGE>

Rate Loan, means any such day on which dealings in Dollar deposits are conducted
by and between banks in the London interbank eurodollar market.

         "Capitalization" means, as of any date of determination, an amount
equal to the sum of:

         (a) Indebtedness as of such date (other than Receivables Financing
Indebtedness and other than Permitted Preferred Trust Securities) of the
Borrower and its Subsidiaries; minus

         (b) an amount equal to (a) the Indebtedness as of such date of each
Subsidiary that is not a Wholly-Owned Subsidiary and whose Indebtedness is not
guaranteed by the Borrower or any Subsidiary multiplied by (b) a fraction, the
denominator of which is the number of shares of outstanding capital stock of
such Subsidiary and the numerator of which is the number of shares of capital
stock of such Subsidiary not held by the Borrower or another Subsidiary; plus

         (c) Net Worth. For purposes of calculating the Capitalization Ratio as
of any date which is not the last day of a Fiscal Quarter, Net Worth shall be
calculated as of the last day of the most recent Fiscal Quarter.

         "Capitalization Ratio" means, as of any date of determination, the
ratio of Indebtedness (other than (i) Receivables Financing Indebtedness, (ii)
Permitted Preferred Trust Securities and (iii) Excluded Permitted Affiliate
Subordinated Indebtedness) of the Borrower and its Subsidiaries to
Capitalization; provided, however, there shall be excluded from Indebtedness an
amount equal to (a) the Indebtedness of each Subsidiary that is not a
Wholly-Owned Subsidiary and whose Indebtedness is not guaranteed by the Borrower
or any Subsidiary multiplied by (b) a fraction, the denominator of which is the
number of shares of outstanding capital stock of such Subsidiary and the
numerator of which is the number of shares of capital stock of such Subsidiary
not held by the Borrower or another Subsidiary.

         "CARCO" means CITCO Asphalt Refining Company, a New Jersey general
partnership.

         "CERCLA" means the Comprehensive Environmental Response Compensation
and Liability Act of 1980 (42 U.S.C. Section 9601 et seq.).

         "Change of Control" means any condition or occurrence such that less
than 50% of the Voting Stock of the Borrower shall be owned, directly or
indirectly, by PDVSA.

         "CIC" means CITGO Investment Company, a Delaware corporation.

         "Closing Date" means the first date all the conditions precedent in
Section 4.01 are satisfied or waived in accordance with Section 4.01 (or, in the
case of Section 4.01(c), waived by the Person entitled to receive the applicable
payment).

         "Code" means the Internal Revenue Code of 1986.

         "Commitment" means, as to each Lender, its obligation to (a) make Loans
to the Borrower pursuant to Section 2.01, in an aggregate principal amount at
any one time outstanding

                                       4
<PAGE>

not to exceed the amount set forth opposite such Lender's name on Schedule 2.01
or in the Assignment and Assumption pursuant to which such Lender becomes a
party hereto, as applicable, as such amount may be adjusted from time to time in
accordance with this Agreement.

         "Compliance Certificate" means a certificate substantially in the form
of Exhibit C.

         "Computation Period" shall mean, when used in the Compliance
Certificate or in Section 7.02(b) with reference to the calculation as of the
last day of the Fiscal Quarter, the 12-month period ending on that date.

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

         "Control" has the meaning specified in the definition of "Affiliate."

         "CPIC" means CITGO Pipeline Investment Company, a Delaware corporation.

         "CRCCLP" means CITGO Refining and Chemicals Company, L.P., a Delaware
limited partnership, formerly known as CITGO Refining and Chemicals, Inc., the
partners in which are CIC and the Borrower.

         "CRCCLP Crude Supply Agreement" means that certain Crude Oil and
Feedstock Supply Agreement, dated as of March 31, 1987, by and between CRCCLP
and Petroleos.

         "Crude Supply Agreement" means that certain Crude Supply Agreement,
dated as of September 30, 1986, by and between the Borrower and Petroleos.

         "Debtor Relief Laws" means the Bankruptcy Code of the United States,
and all other liquidation, conservatorship, bankruptcy, assignment for the
benefit of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar debtor relief Laws of the United States or other
applicable jurisdictions from time to time in effect and affecting the rights of
creditors generally.

         "Default" means any event or condition that, with the giving of any
notice, the passage of time, or both, would (if not cured or otherwise remedied
during such time) be an Event of Default.

         "Default Rate" means an interest rate equal to (a) the Base Rate plus
(b) the Applicable Rate, if any, applicable to Base Rate Loans plus (c) 2% per
annum; provided, however, that with respect to a Eurodollar Rate Loan, the
Default Rate shall be an interest rate equal to the interest rate (including any
Applicable Rate) otherwise applicable to such Loan plus 2% per annum, in each
case to the fullest extent permitted by applicable Laws.

                                       5
<PAGE>

         "Defaulting Lender" means any Lender that (a) has failed to fund any
portion of the Loans required to be funded by it hereunder within one Business
Day of the date required to be funded by it hereunder, (b) has otherwise failed
to pay over to the Administrative Agent or any other Lender any other amount
required to be paid by it hereunder within one Business Day of the date when
due, unless the subject of a good faith dispute, or (c) has been deemed
insolvent or become the subject of a bankruptcy or Insolvency Proceeding.

         "Disposition" has the meaning set forth in Section 7.01(b)(v).

         "Dollar" and "$" mean lawful money of the United States.

         "Domestic" entity means any entity that is organized under the laws of
any political subdivision of the United States.

         "EBITDA" means, for any period, an amount equal to the sum of: (a) Net
Income of the Borrower and its Subsidiaries on a consolidated basis for such
period; plus (b) the aggregate amount of Interest Expense of the Borrower and
its Subsidiaries that was deducted for such period in determining such Net
Income; plus (c) the aggregate amount that was deducted in respect of Federal,
state and local income taxes of the Borrower and its Subsidiaries for such
period in determining Net Income, plus (d) the aggregate amount which was
deducted in respect of depreciation and amortization in determining Net Income
for such period.

         "Eligible Assignee" has the meaning specified in Section 10.07(g).

         "Environmental Laws" means any and all Federal, state, local, and
foreign statutes, laws, regulations, ordinances, rules, judgments, orders,
decrees, permits, concessions, grants, franchises, licenses, agreements or
governmental restrictions relating to pollution and the protection of the
environment or the release of any materials into the environment, including
those related to hazardous substances or wastes, air emissions and discharges to
waste or public systems.

         "Environmental Liability" means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation, fines,
penalties or indemnities), of the Borrower, or any of its Subsidiaries directly
or indirectly resulting from or based upon (a) violation of any Environmental
Law, (b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the release or threatened release of any Hazardous Materials into the
environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.

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

         "Eurodollar Rate" means for any Interest Period with respect to any
Eurodollar Rate Loan:

                                       6
<PAGE>

                  (a) the rate per annum equal to the rate determined by the
         Administrative Agent to be the offered rate that appears on the page of
         the Telerate screen (or any successor thereto) that displays an average
         British Bankers Association Interest Settlement Rate for deposits in
         Dollars (for delivery on the first day of such Interest Period) with a
         term equivalent to such Interest Period, determined as of approximately
         11:00 a.m. (London time) two Business Days prior to the first day of
         such Interest Period, or

                  (b) if the rate referenced in the preceding clause (a) does
         not appear on such page or service or such page or service shall not be
         available, the rate per annum equal to the rate determined by the
         Administrative Agent to be the offered rate on such other page or other
         service that displays an average British Bankers Association Interest
         Settlement Rate for deposits in Dollars (for delivery on the first day
         of such Interest Period) with a term equivalent to such Interest
         Period, determined as of approximately 11:00 a.m. (London time) two
         Business Days prior to the first day of such Interest Period, or

                  (c) if the rates referenced in the preceding clauses (a) and
         (b) are not available, the rate per annum determined by the
         Administrative Agent as the rate of interest at which deposits in
         Dollars for delivery on the first day of such Interest Period in same
         day funds in the approximate amount of the Eurodollar Rate Loan being
         made, continued or converted by Bank of America and with a term
         equivalent to such Interest Period would be offered by Bank of
         America's London Branch to major banks in the London interbank
         eurodollar market at their request at approximately 4:00 p.m. (London
         time) two Business Days prior to the first day of such Interest Period.

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

         "Event of Default" has the meaning specified in Section 8.01.

         "Excluded Permitted Affiliate Subordinated Indebtedness" means
Permitted Affiliate Subordinated Indebtedness in a principal amount not to
exceed $200,000,000.

         "Existing Credit Agreements" mean that certain Amended and Restated
Credit Agreement dated as of May 7, 2002, and that certain $400,000,000 Credit
Agreement dated as of May 13, 1998 as amended, each among the Borrower, Bank of
America, as agent, and a syndicate of lenders.

         "Federal Funds Rate" means, for any day, the rate per annum 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 on the Business Day next
succeeding such day; provided that (a) if such day is not a Business Day, the
Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business Day,
and (b) 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 (rounded upward,
if necessary, to a whole multiple of 1/100 of

                                       7

<PAGE>

1%) charged to Bank of America on such day on such transactions as determined by
the Administrative Agent.

         "Fee Letter" means the letter agreement, dated October 29, 2002, among
the Borrower, the Administrative Agent and the Arrangers.

         "Fiscal Quarter" means each fiscal quarter of the Borrower and its
Subsidiaries.

         "Fiscal Year" means each fiscal year of the Borrower and its
Subsidiaries.

         "Foreign Lender" has the meaning specified in Section 10.15(a)(i).

         "FRB" means the Board of Governors of the Federal Reserve System of the
United States.

         "GAAP" means generally accepted accounting principles in the United
States set forth 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 such other
principles as may be approved by a significant segment of the accounting
profession in the United States, that are applicable to the circumstances as of
the date of determination, consistently applied.

         "Governmental Authority" means any nation or government, any state or
other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, administrative tribunal, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.

         "Granting Lender" has the meaning specified in Section 10.07(h).

         "Guarantee" means, as to any Person, (a) any obligation, contingent or
otherwise, of such Person guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other monetary obligation payable by another
Person (the "primary obligor") in any manner, whether directly or indirectly,
and including any monetary obligation of such Person, direct or indirect, (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness or other monetary obligation, (ii) to purchase or lease property,
securities or services for the purpose of assuring the obligee in respect of
such Indebtedness or other monetary obligation of the payment or performance of
such Indebtedness or other monetary obligation, (iii) to maintain working
capital, equity capital or any other financial statement condition or liquidity
or level of income or cash flow of the primary obligor so as to enable the
primary obligor to pay such Indebtedness or other monetary obligation, or (iv)
entered into for the purpose of assuring in any other manner the obligee in
respect of such Indebtedness or other monetary obligation of the payment or
performance thereof or to protect such obligee against loss in respect thereof
(in whole or in part), or (b) any Lien on any assets of such Person securing any
Indebtedness or other monetary obligation of any other Person, whether or not
such Indebtedness or other monetary obligation is assumed by such Person. The
amount of any Guarantee shall be deemed to be an amount equal to the stated or
determinable amount of the

                                       8
<PAGE>

related primary monetary obligation, or portion thereof, in respect of which
such Guarantee is made or, if not stated or determinable, the maximum reasonably
anticipated liability in respect thereof as determined by the guaranteeing
Person in good faith. The term "Guarantee" as a verb has a corresponding
meaning.

         "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, polychlorinated biphenyls, radon gas, and all other substances or
wastes of any nature regulated pursuant to any Environmental Law.

         "Impermissible Qualification" means, relative to any opinion by
independent public accountants as to any financial statement of the Borrower or
any of its Subsidiaries or of the Borrower and any of its Subsidiaries, any
qualification or exception to such opinion:

         (a) which is of a "going concern" or a similar nature;

         (b) which relates to the limited scope of examination of matters
relevant to such financial statement (other than scope limitations included in
the standard form of opinion utilized by such accountants); or

         (c) which relates to the treatment or classification of any item in
such financial statement and which, as a condition to its removal, would require
adjustment to such item the effect of which would be to cause the Borrower to be
in default of any of its obligations under Section 7.02.

         "Indebtedness" with respect to any Person means, without duplication,
(a) all of the following, whether or not included as indebtedness or liabilities
in accordance with GAAP: (i) all indebtedness for borrowed money of such Person
or for the deferred purchase price of property acquired by, or services rendered
to, such Person, (ii) all indebtedness of such Person created or arising under
any conditional sale or other title retention agreement with respect to any
property acquired by such Person, (iii) all indebtedness for borrowed money or
for the deferred purchase price of property or services secured by any Lien upon
or in any property owned by such Person whether or not such Person has assumed
or become liable for the payment of such indebtedness for borrowed money, and
(iv) at all times such liability is interest bearing, any finally assessed
withdrawal liability of such Person or a commonly enrolled entity to a
Multiemployer Plan; (b) the present value determined in accordance with GAAP of
all obligations of such Person under leases that are recorded as capitalized
leases; (c) indebtedness arising under acceptance facilities, any surety bond as
to which such Person is liable for reimbursement and the undrawn maximum face
amount of all outstanding letters of credit issued for the account of such
Person (except to the extent such letters of credit are issued to secure the
payment by such Person of obligations for Indebtedness otherwise included
herein) and, without duplication, the outstanding amount of all drafts drawn
thereunder; (d) all Off-Balance Sheet Liabilities; and to the extent not
included in clauses (a) through (d) above, all direct or indirect Guarantees by
such Person of Indebtedness described in this definition of any other Person;
provided, that, for purposes of this definition, the following shall not be
included as Indebtedness: (A) trade payables incurred within the ordinary course
of business and payable

                                       9
<PAGE>

within 90 days of the incurrence thereof; (B) Indebtedness of the Borrower owed
to Wholly-Owned Subsidiaries of the Borrower, provided that such Indebtedness is
subordinated to the Obligations in accordance with Section 7.01(e); or (C)
Indebtedness of a Wholly-Owned Subsidiary owed to the Borrower or a Wholly-Owned
Subsidiary.

         For all purposes hereof, the Indebtedness of any Person shall include
the Indebtedness of any partnership or joint venture (other than a joint venture
that is itself a corporation or limited liability company) in which such Person
is a general partner or a joint venturer (for purposes of clarity, it is agreed
that "joint venturer" does not include a limited partner of a limited
partnership), unless such Indebtedness is expressly made non-recourse to such
Person.

         "Indemnified Liabilities" has the meaning set forth in Section 10.05.

         "Indemnitees" has the meaning set forth in Section 10.05.

         "Insolvency Proceeding" means (a) any case, action or proceeding 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 Expense" means, without duplication, for any period, the sum
of:

         (i) aggregate interest expense of the Borrower and its Subsidiaries for
such period, as determined in accordance with GAAP and in any event including,
without duplication, all commissions, discounts and other fees and charges owed
with respect to letters of credit and banker's acceptances and net costs under
Interest Rate Swap Contracts and the portion of any obligation under capitalized
leases allocable to interest expense;

         plus

         (ii) interest expense of the Borrower and its Subsidiaries capitalized
during such period;

         minus

         (iii) amortization of capitalized interest expense of the Borrower and
its Subsidiaries for such period.

         "Interest Payment Date" means, (a) as to any Loan other than a Base
Rate Loan, the last day of each Interest Period applicable to such Loan and the
Maturity Date; provided, however, that if any Interest Period for a Eurodollar
Rate Loan exceeds three months, the respective dates that fall every three
months after the beginning of such Interest Period shall also be Interest
Payment Dates; and (b) as to any Base Rate Loan , the last Business Day of each
March, June, September and December and the Maturity Date.

                                       10
<PAGE>

         "Interest Period" means, as to each Eurodollar Rate Loan, the period
commencing on the date such Eurodollar Rate Loan is disbursed or converted to or
continued as a Eurodollar Rate Loan and ending on the date seven days, fourteen
days, or one, two, three, or six months thereafter, as selected by the Borrower
in its Loan Notice, or such other period that is twelve months or less requested
by the Borrower and consented to by all the Lenders; provided that:

                  (i) any Interest Period that would otherwise end on a day that
         is not a Business Day shall be extended to the next succeeding Business
         Day unless such Business Day falls in another calendar month, in which
         case such Interest Period shall end on the next preceding Business Day;

                  (ii) any Interest Period 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

                  (iii) no Interest Period shall extend beyond the Maturity
         Date.

         "Interest Rate Swap Contract" has the meaning set forth in the
definition of "Swap Contract."

         "Investment" means, as to any Person, any direct or indirect
acquisition or investment by such Person, whether by means of (a) the purchase
or other acquisition of capital stock or other securities of another Person, (b)
a loan, advance or capital contribution to, Guarantee or assumption of debt of,
or purchase or other acquisition of any other debt or equity participation or
interest in, another Person, including any partnership or joint venture interest
in such other Person, or (c) the purchase or other acquisition (in one
transaction or a series of transactions) of assets of another Person that
constitute a business unit. For purposes of covenant compliance, the amount of
any Investment shall be the amount actually invested, without adjustment for
subsequent increases or decreases in the value of such Investment.

         "IRS" means the United States Internal Revenue Service.

         "Key Contracts" means the Crude Supply Agreement, the Supplemental
Crude Supply Agreement and the CRCCLP Crude Supply Agreement.

         "Laws" means, collectively, all international, foreign, Federal, state
and local statutes, treaties, rules, guidelines, regulations, ordinances, codes
and administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.

         "LCR" means Lyondell-CITGO Refining LP, a Delaware limited partnership.

                                       11
<PAGE>

         "Lender" has the meaning specified in the introductory paragraph
hereto.

         "Lending Office" means, as to any Lender, the office or offices of such
Lender described as such in such Lender's Administrative Questionnaire, or such
other office or offices as a Lender may from time to time notify the Borrower
and the Administrative Agent.

         "Lien" means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge, or preference,
priority or other security interest or preferential arrangement of any kind or
nature whatsoever (including any conditional sale or other title retention
agreement, and any financing lease having substantially the same economic effect
as any of the foregoing).

         "Loan" means an extension of credit by a Lender to the Borrower under
Article II.

         "Loan Documents" means this Agreement, each Note and the Fee Letter.

         "Loan Notice" means a notice of (a) a Borrowing, (b) a conversion of
Loans from one Type to the other, or (c) a continuation of Eurodollar Rate
Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially
in the form of Exhibit A.

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

         "Material Acquisition" means any acquisition where either the purchase
price or the book value of the assets acquired equals or exceeds the greater of
(a) $300,000,000 and (b) 5% of Capitalization.

         "Material Adverse Effect" means (a) a material adverse change in, or a
material adverse effect upon, the operations, business, properties, liabilities
(actual or contingent) or condition (financial or otherwise) of the Borrower and
its Subsidiaries taken as a whole, taking into account insurance coverage and
effective indemnification; (b) a material impairment of the ability of the
Borrower to perform its payment or other material obligations under any Loan
Document to which it is a party; or (c) a material adverse effect upon the
legality, validity, binding effect or enforceability against the Borrower of any
Loan Document to which it is a party.

         "Material Debt" means Indebtedness, Guarantees or Swap Contract
Obligations of any one or more of the Borrower and its Subsidiaries (except for
Indebtedness of any Subsidiary to the Borrower or to any Wholly-Owned
Subsidiary) having an aggregate principal amount (including undrawn committed or
available amounts and including amounts owing to all creditors under any
syndicated credit arrangement) of more than $35,000,000.

         "Maturity Date" means the (a) later of (i) the Stated Maturity Date,
and (ii) if the Borrower exercises the Term-Out option pursuant to Section 2.13,
the Term Loan Maturity Date,

                                       12
<PAGE>

or, (b) if earlier, the effective date of any other termination, cancellation,
or acceleration of all Commitments under this Agreement.

         "Moody's" means Moody's Investors Service, Inc. and any successor
thereto.

         "Multiemployer Plan" means any "multiemployer plan" (as that term is
defined under section 3(37) of ERISA) under which the Borrower or any Related
Person has contributed or with respect to which the Borrower or such Related
Person may have any liability.

         "Net Income" means, for any period, for the Borrower and its
Subsidiaries on a consolidated basis, the net income of the Borrower and its
Subsidiaries for the period, calculated without giving effect to extraordinary
gains and extraordinary losses. For the avoidance of doubt, net income means net
income before any adjustments for comprehensive income or comprehensive loss.

         "Net Worth" means, as of any date of determination, Shareholder's
Equity of the Borrower and its Subsidiaries on a consolidated basis determined
in accordance with GAAP.

         "Note" means a promissory note made by the Borrower in favor of a
Lender evidencing Loans made by such Lender, substantially in the form of
Exhibit B.

         "Obligations" means all advances to, and debts, liabilities,
obligations, covenants and duties of, the Borrower arising under any Loan
Document or otherwise with respect to any Loan, whether direct or indirect
(including those acquired by assumption), absolute or contingent, due or to
become due, now existing or hereafter arising and including interest and fees
that accrue after the commencement by or against the Borrower or any Affiliate
thereof of any proceeding under any Debtor Relief Laws naming such Person as the
debtor in such proceeding, regardless of whether such interest and fees are
allowed claims in such proceeding.

         "Off-Balance Sheet Liabilities" means, with respect to any Person as of
any date of determination thereof, without duplication: (a) with respect to any
asset securitization transaction (including any Receivables Purchase Facility)
(i) the unrecovered investment of the purchasers (or the transferees) of the
assets transferred pursuant to such transaction, and (ii) any other payment,
recourse, repurchase, hold harmless, indemnity or similar obligation of such
Person or any of its Subsidiaries in respect of assets transferred or payments
made in respect thereof, other than limited recourse provisions that are
customary for transactions of such type and that neither (x) have the effect of
limiting the loss or credit risk of such purchasers or transferees with respect
to payment or performance by the obligors of the assets so transferred nor (y)
impair the characterization of the transaction as a true sale under applicable
Laws (including Debtor Relief Laws); (b) the monetary obligations under any
Synthetic Lease or financing lease which, upon the application of any Debtor
Relief Law to such Person or any of its Subsidiaries, would be characterized by
a court of competent jurisdiction as indebtedness; (c) the monetary obligations
under any Sale Leaseback Transaction which does not create a liability
classified as Indebtedness; or (d) any other monetary obligation arising with
respect to any other transaction which (i) upon the application of any Debtor
Relief Law to such Person or any of its

                                       13
<PAGE>

Subsidiaries, would be characterized by a court of competent jurisdiction as
indebtedness or (ii) is the functional equivalent of or takes the place of
borrowing but which does not constitute Indebtedness (for purposes of this
clause (d), any transaction structured to provide tax deductibility as interest
expense of any dividend, coupon or other periodic payment will be deemed to be
the functional equivalent of a borrowing). The amount of any Synthetic Lease
obligation as of any date shall be deemed to be the amount of Attributable
Indebtedness in respect thereof as of such date.

         "Organization Documents" means, (a) with respect to any corporation,
the certificate or articles of incorporation and the bylaws (or equivalent or
comparable constitutive documents with respect to any non-U.S. jurisdiction);
(b) with respect to any limited liability company, the certificate or articles
of formation or organization and operating agreement; and (c) with respect to
any partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or
organization of such entity.

         "Outstanding Amount" means, with respect to 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.

         "Participant" has the meaning specified in Section 10.07(d).

         "Pass-Through Investment" means an Investment (a) which Investment is
made by the Borrower contemporaneously with the making of a capital contribution
in the Borrower by PDVSA or one of its Subsidiaries, which capital contribution
is in cash and is specified for the purpose of the making of such Investment,
and (b) which Investment shall be no greater than the amount of such capital
contribution.

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

         "PDVMR" means PDV Midwest Refining, LLC, a Delaware limited liability
company.

         "PDVSA" means Petroleos de Venezuela, S.A., a Venezuelan corporation.

         "Permitted Affiliate Subordinated Indebtedness" means unsecured
Indebtedness owed by the Borrower to an Affiliate of the Borrower, subordinated
to the Obligations and any refinancing thereof pursuant to subordination terms
satisfactory to the Administrative Agent, provided that such Indebtedness (i)
shall not bear a rate of interest that is greater than a market rate of
interest, and (ii) shall not require any principal payment (whether pursuant to
an amortization schedule, maturity, or otherwise) earlier than one year after
the Maturity Date.

         "Permitted Liens" has the meaning specified in subsection 7.01(a).

                                       14
<PAGE>

         "Permitted Preferred Trust Securities" means any securities made up of
trust participation interests, or of limited partnership interests, issued by a
Subsidiary of the Borrower; provided that:

         (a) the issuer of such securities has no assets other than Permitted
Subordinated Trust Indebtedness owing to it by the Borrower.

         (b) payments upon such securities can be made only out of funds
received in payment of such Permitted Subordinated Trust Indebtedness;

         (c) so long as no default has occurred and is continuing under the
indenture or related documents executed in connection with the issuance of such
securities, at the election of the Borrower (acting either directly or through
such issuer), all payments upon such securities can be deferred for the greater
of (i) one or more payment periods, and (ii) a period expiring not earlier than
20 years after the Maturity Date; and

         (d) such securities shall not be subject to mandatory redemption or
redemption at the option of the holder thereof at a time that is earlier than 20
years after the Maturity Date.

         "Permitted Subordinated Trust Indebtedness" means (a) any promissory
notes or debentures issued by the Borrower to any issuer of Permitted Preferred
Trust Securities, provided that such notes or debentures (i) are subordinated to
the Obligations pursuant to subordination terms satisfactory to the
Administrative Agent, (ii) do not require any principal payments to be made at a
time that is earlier than 20 years after the Maturity Date, (iii) provide that
so long as no default has occurred and is continuing thereunder or under the
indenture or related documents executed in connection therewith, at the election
of the Borrower, all payments upon such notes or debentures can be deferred for
the greater of (A) one or more payment periods, and (B) a period expiring not
earlier than 20 years after the Maturity Date, and (iv) have a maturity date
that is not earlier than 20 years after the Maturity Date, and (b) any guaranty
by the Borrower that the issuer of such Permitted Preferred Trust Securities
will make required distributions thereon to the extent it has funds available
therefore, provided that such guaranty is subordinated to the Obligations
pursuant to subordination terms satisfactory to the Administrative Agent.

         "Person" means any natural person, corporation, limited liability
company, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.

         "Petroleos" means PDVSA Petroleo, S.A., a Venezuelan corporation.

         "Plan" means any plan described in section 4021(a) of ERISA and not
excluded pursuant to section 4021(b) thereof, under which the Borrower or any
Related Person to the Borrower has contributed or with respect to which the
Borrower or such Related Person is liable.

         "Principal Properties" means (a) (i) the Borrower's refinery located at
Lake Charles Louisiana, (ii) CRCCLP's refinery located at Corpus Christi, Texas
and (iii) PDVMR's refinery

                                       15
<PAGE>

located at Lemont, Illinois, and (b) any refinery property acquired by the
Borrower or a Subsidiary in replacement of, or swap for, any of the foregoing
properties.

         "Principal Subsidiary" means CARCO, CPIC, CRCCLP, CIC, PDVMR or any
other Subsidiary whose assets have an aggregate book value exceeding
$100,000,000.

         "Private Placement Agreement" means that certain Note Purchase
Agreement dated as of November 1, 1991 among the Borrower and each of the
purchasers named therein relating to the Borrower's issuance, and such
purchasers' purchase, of the Private Placement Notes.

         "Private Placement Notes" means the senior notes issued by the Borrower
pursuant to the Private Placement Agreement, consisting of an issue of
$125,000,000 aggregate principal amount of the Borrower's 9.30% Guaranteed
Series C Senior Notes due 2006.

         "Pro Rata Share" means, with respect to each Lender at any time, a
fraction (expressed as a percentage, carried out to the ninth decimal place),
the numerator of which is the amount of the Commitment of such Lender at such
time and the denominator of which is the amount of the Aggregate Commitments at
such time; provided that if the commitment of each Lender to make Loans have
been terminated pursuant to Section 8.02, then the Pro Rata Share of each Lender
shall be determined based on the Pro Rata Share of such Lender immediately prior
to such termination and after giving effect to any subsequent assignments made
pursuant to the terms hereof. The initial Pro Rata Share of each Lender is set
forth opposite the name of such Lender on Schedule 2.01 or in the Assignment and
Assumption pursuant to which such Lender becomes a party hereto, as applicable.

         "Project Financing" means Indebtedness incurred to finance the
acquisition or construction of a project, provided that no portion of such
Indebtedness permits or provides for recourse against the Borrower or any of its
Subsidiaries other than recourse to the equity interests in, or assets of, the
Project Financing/Special Purpose Subsidiary that is the owner of the project so
financed.

         "Project Financing/Special Purpose Subsidiary" means a Subsidiary of
the Borrower whose principal purpose is to incur Project Financing, and the
assets of which Subsidiary are limited to those assets being financed in whole
or in part by a Project Financing.

         "RCRA" means the Resource Conservation and Recovery Act of 1976 (42
U.S.C. Section 6901 et seq.)

         "Receivable" of the Borrower or any Subsidiary means, as at any date of
determination thereof, the unpaid principal portion of the obligation, as stated
on the respective invoice, of any customer of the Borrower or such Subsidiary to
pay money to the Borrower or such Subsidiary in respect of any services
performed by the Borrower or such Subsidiary or inventory purchased from the
Borrower or such Subsidiary net of all credits, rebates and offsets owed to such
customer by the Borrower or such Subsidiary and also net of all commissions
payable by the Borrower or such Subsidiary to third parties (and for purposes
hereof, a credit or rebate paid by check or draft of the Borrower or such
Subsidiary shall be deemed to be outstanding until such

                                       16
<PAGE>

check or draft shall have been debited to the respective account of the Borrower
or the Subsidiary on which such check or draft was drawn).

         "Receivables Financing Indebtedness" means obligations of the Borrower
and its Subsidiaries, with respect to Receivables Purchase Facilities which
obligations are included in the definition of Indebtedness.

         "Receivables Purchase Facility" means, as to the Borrower or any
Subsidiary, any facility providing for the sale, transfer, conveyance, lease or
assignment, with or without recourse, of the Receivables of such Person.

         "Register" has the meaning set forth in Section 10.07(c).

         "Related Person" with respect to any Person means any other Person
which, together with such Person, is under common control as described in
Section 414 of the Code.

         "Reportable Event" means, any of the events set forth in Section
4043(b) of ERISA or the regulations thereunder.

         "Required Lenders" means, as of any date of determination, Lenders
having at least 66-2/3% of the Aggregate Commitments or, if the commitment of
each Lender to make Loans have been terminated pursuant to Section 8.02, Lenders
holding in the aggregate at least 66-2/3% of the Total Outstandings; provided
that the Commitment of, and the portion of the Total Outstandings held or deemed
held by, any Defaulting Lender shall be excluded for purposes of making a
determination of Required Lenders.

         "Requirement of Law" means, as to any Person, any law, treaty, rule,
regulation, judgment or order of a Governmental Authority or other requirement
having the force of law, 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
and any interpretation thereof by any Person having jurisdiction with respect
thereto or charged with the administration or interpretation thereof.

         "Responsible Officer" means the chief executive officer, president,
chief financial officer, controller, treasurer or assistant treasurer of the
Borrower. Any document delivered hereunder that is signed by a Responsible
Officer of the Borrower shall be conclusively presumed to have been authorized
by all necessary corporate, partnership and/or other action on the part of the
Borrower and such Responsible Officer shall be conclusively presumed to have
acted on behalf of the Borrower.

         "Revolver Loans" means Loans made during the Revolving Availability
Period.

         "Revolving Availability Period" means the period from and including the
Closing Date to the earliest of (a) the Stated Maturity Date, (b) the date of
termination of the Aggregate Commitments pursuant to Section 2.04, and (c) the
date of termination of the Commitment of each Lender to make Loans pursuant to
Section 8.02.

                                       17
<PAGE>

         "S&P" means Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc. and any successor thereto.

         "Sale Leaseback Transaction" means a transaction or series of
transactions pursuant to which the Borrower or any Subsidiary shall sell or
transfer to any Person (other than the Borrower or a Subsidiary) any Principal
Property, whether now owned or hereafter acquired, and, as part of the same
transaction or series of transactions, the Borrower or such Subsidiary shall
rent or lease as lessee (other than pursuant to a capital lease), or similarly
acquire the right to possession or use of, such Principal Property.

         "SEC" means the Securities and Exchange Commission, or any Governmental
Authority succeeding to any of its principal functions.

         "Senior Notes" means the Borrower's outstanding $200,000,000 aggregate
principal amount 7-7/8% Senior Notes due 2006 and any other notes now or
hereafter issued under the Borrower's Indenture dated as of May 1, 1996 between
the Borrower and Bank One, N.A., as Trustee.

         "Shareholder's Equity" means, as of any date of determination, (a)
consolidated shareholder's equity of the Borrower and its Subsidiaries as of
that date determined in accordance with GAAP, plus (b) Permitted Preferred Trust
Securities.

         "Short-Term Marketable Debt Securities" means a security of a domestic
issuer with a maturity of one year or less and a debt rating of A-1 or better by
S&P and P-1 or better by Moody's.

         "SPC" has the meaning specified in Section 10.07(h).

         "Stated Maturity Date" means the later of (a) December 10, 2003, and
(b) if the maturity is extended pursuant to Section 2.12, such extended maturity
date as determined pursuant to such Section.

         "Subsidiary" of a Person means a corporation, partnership, joint
venture, limited liability company or other business entity of which a majority
of the shares of securities or other interests having ordinary voting power for
the election of directors or other governing body (other than securities or
interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned directly, or indirectly through one or more
intermediaries, or both, by such Person. Unless otherwise specified, all
references herein to a "Subsidiary" or to "Subsidiaries" shall refer to a
Subsidiary or Subsidiaries of the Borrower.

         "Supplemental Crude Supply Agreement" means that certain Supplemental
Crude Supply Agreement, dated as of September 30, 1986, by and between the
Borrower and Petroleos.

         "Swap Contract" means (a) any and all rate swap transactions, basis
swaps, credit derivative transactions, forward rate transactions, commodity
swaps, commodity options, forward commodity contracts, equity or equity index
swaps or options, bond or bond price or

                                       18
<PAGE>

bond index swaps or options or forward bond or forward bond price or forward
bond index transactions, interest rate options, forward foreign exchange
transactions, cap transactions, floor transactions, collar transactions,
currency swap transactions, cross-currency rate swap transactions, currency
options, spot contracts, or any other similar transactions or any combination of
any of the foregoing (including any options to enter into any of the foregoing),
whether or not any such transaction is governed by or subject to any master
agreement, and (b) any and all transactions of any kind, and the related
confirmations, which are subject to the terms and conditions of, or governed by,
any form of master agreement published by the International Swaps and
Derivatives Association, Inc., any International Foreign Exchange Master
Agreement, or any other master agreement (any such master agreement, together
with any related schedules, a "Master Agreement"), including any such
obligations or liabilities under any Master Agreement. "Interest Rate Swap
Contracts" means any of the foregoing relating to interest rates.

         "Swap Contract Obligations" means Obligations in respect of Swap
Contracts. For purposes of Section 8.01(e), the term "principal amount" of Swap
Contract Obligations of the Borrower or a Subsidiary at any time shall be the
maximum aggregate amount (giving effect to any netting agreements) that the
Borrower or such Subsidiary would be required to pay if such Swap Contract were
terminated at such time.

         "Synthetic Lease" of the Borrower or a Subsidiary of the Borrower means
(a) a lease designed to have the characteristics of a loan for federal income
tax purposes while obtaining operating lease treatment for financial accounting
purposes, or (b) an agreement for the use or possession of property creating
obligations that do not appear on the balance sheet of the Borrower and its
Subsidiaries but which, upon the insolvency or bankruptcy of the Borrower or a
Subsidiary of the Borrower, would be characterized by a court of competent
jurisdiction as the indebtedness of the Borrower or a Subsidiary of the Borrower
(without regard to accounting treatment).

         "Term Loan" shall mean the term loan made pursuant to Section 2.13.

         "Term Loan Maturity Date" shall mean the earlier of (a) the date that
is one year after the Stated Maturity Date, and (b) the Maturity Date as defined
in the Three-Year Credit Agreement.

         "Term-Out" has the meaning specified in Section 2.13(a).

         "Three-Year Credit Agreement" means that certain $250,000,000
Three-Year Credit Agreement dated as of even date hereof, among the parties
hereto.

         "Total Outstandings" means the aggregate Outstanding Amount of all
Loans.

         "Type" means, with respect to a Loan, its character as a Base Rate Loan
or a Eurodollar Rate Loan.

         "Unfunded Vested Liability" means, relative to any Plan, including any
Multiemployer Plan, at any time, the excess (if any) of (a) the present value of
all vested nonforfeitable benefits under such Plan or such Multiemployer Plan,
as the case may be, over (b) the fair market value

                                       19
<PAGE>

of all Plan assets or Multiemployer Plan assets, as the case may be, allocable
to such benefits, all determined as of the then most recent valuation date for
such Plan or such Multiemployer Plan, as the case may be, but only to the extent
that such excess represents a potential liability of the Borrower to the PBGC,
such Plan or such Multiemployer Plan under Title IV of ERISA.

         "United States" and "U.S." mean the United States of America.

         "Unreimbursed Amount" has the meaning set forth in Section 2.04(c)(i).

         "Voting Stock" means, with respect to any corporation, any class of
shares of stock of such corporation having general voting power under ordinary
circumstances to elect a majority of the board of directors of such corporation
(irrespective of whether or not at the time stock of any other class or classes
of such corporation shall have or might have voting power by reason of the
happening of any contingency).

         "Welfare Plan" means a "welfare plan" as such term is defined in
section 3(1) of ERISA.

         "Wholly-Owned" means, with respect to any Subsidiary that, except for
directors' qualifying shares required by law, 100% of the capital stock of such
Subsidiary of each class having ordinary voting power, and 100% of the capital
stock of such Subsidiary of every other class, in each case, at the time as of
which any determination is being made, is owned, beneficially and of record, by
the Borrower, or by one or more of the other Wholly-Owned Subsidiaries, or both.

         1.02 OTHER INTERPRETIVE PROVISIONS. With reference to this Agreement
and each other Loan Document, unless otherwise specified herein or in such other
Loan Document:

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

         (b) (i) The words "herein," "hereto," "hereof" and "hereunder" and
words of similar import when used in any Loan Document shall refer to such Loan
Document as a whole and not to any particular provision thereof.

             (ii) Article, Section, Exhibit and Schedule references are to the
         Loan Document in which such reference appears.

             (iii) The term "including" is by way of example and not limitation.

             (iv) The term "documents" includes any and all instruments,
         documents, agreements, certificates, notices, reports, financial
         statements and other writings, however evidenced, whether in physical
         or electronic form.

         (c) 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."

                                       20
<PAGE>

         (d) Section headings herein and in the other Loan Documents are
included for convenience of reference only and shall not affect the
interpretation of this Agreement or any other Loan Document.

         1.03 ACCOUNTING TERMS. (a) All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial calculations)
required to be submitted pursuant to this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to
time, applied in a manner consistent with that used in preparing the Audited
Financial Statements, except as otherwise specifically prescribed herein.

         (b) If at any time any change in GAAP would affect the computation of
any financial ratio or requirement set forth in any Loan Document, and either
the Borrower or the Required Lenders shall so request, the Administrative Agent,
the Lenders and the Borrower shall negotiate in good faith to amend such ratio
or requirement to preserve the original intent thereof in light of such change
in GAAP (subject to the approval of the Required Lenders); provided that, until
so amended, (i) such ratio or requirement shall continue to be computed in
accordance with GAAP prior to such change therein and (ii) the Borrower shall
provide to the Administrative Agent and the Lenders financial statements and
other documents required under this Agreement or as reasonably requested
hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

         1.04 ROUNDING. Any financial ratios required to be maintained by the
Borrower pursuant to this Agreement shall be calculated by dividing the
appropriate component by the other component, carrying the result to one place
more than the number of places by which such ratio is expressed herein and
rounding the result up or down to the nearest number (with a rounding-up if
there is no nearest number).

         1.05 REFERENCES TO AGREEMENTS AND LAWS. Unless otherwise expressly
provided herein, (a) references to Organization Documents, agreements (including
the Loan Documents) and other contractual instruments shall be deemed to include
all subsequent amendments, restatements, extensions, supplements and other
modifications thereto, but only to the extent that such amendments,
restatements, extensions, supplements and other modifications are not prohibited
by any Loan Document; and (b) references to any Law shall include all statutory
and regulatory provisions consolidating, amending, replacing, supplementing or
interpreting such Law.

         1.06 TIMES OF DAY. Unless otherwise specified, all references herein to
times of day shall be references to Central time (daylight or standard, as
applicable).

                                   ARTICLE II.
                         THE COMMITMENTS AND BORROWINGS

         2.01 LOANS. Subject to the terms and conditions set forth herein, each
Lender severally agrees to make loans (each such loan, a "Loan") to the Borrower
from time to time, on

                                       21
<PAGE>

any Business Day during the Revolving Availability Period, in an aggregate
amount not to exceed at any time outstanding the amount of such Lender's
Commitment; provided, however, that after giving effect to any Borrowing, (i)
the Total Outstandings shall not exceed the Aggregate Commitments, and (ii) the
aggregate Outstanding Amount of the Loans of any Lender shall not exceed such
Lender's Commitment. Within the limits of each Lender's Commitment, and subject
to the other terms and conditions hereof, the Borrower may borrow under this
Section 2.01, prepay under Section 2.03, and reborrow under this Section 2.01.
Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided
herein.

         2.02 BORROWINGS, CONVERSIONS AND CONTINUATIONS OF LOANS.

         (a) Each Borrowing, each conversion of Loans from one Type to the
other, and each continuation of Eurodollar Rate Loans shall be made upon the
Borrower's irrevocable notice to the Administrative Agent, which may be given by
telephone. Each such notice must be received by the Administrative Agent not
later than 12:00 noon (i) three Business Days prior to the requested date of any
Borrowing of, conversion to or continuation of Eurodollar Rate Loans, and (ii)
on the requested date of any conversion of Eurodollar Rate Loans to Base Rate
Loans, or of any Borrowing of Base Rate Loans; provided, however, that if the
Borrower wishes to request Eurodollar Rate Loans having an Interest period other
than seven days, fourteen days, or one, two, three or six months in duration as
provided in the definition of "Interest Period", the applicable notice must be
received by the Administrative Agent not later than 12:00 noon four Business
Days prior to the requested date of such Borrowing, conversion or continuation,
whereupon the Administrative Agent shall give prompt notice to the Lenders of
such request and determine whether the requested Interest period is acceptable
to all of them. Not later than 12:00 noon, three Business Days before the
requested date of such Borrowing, conversion or continuation, the Administrative
Agent shall notify the Borrower (which notice may be by telephone) whether or
not the requested Interest Period has been consented to by all the Lenders..
Each telephonic notice by the Borrower pursuant to this Section 2.02(a) must be
confirmed promptly by delivery to the Administrative Agent of a written Loan
Notice, appropriately completed and signed by a Responsible Officer of the
Borrower. Each Borrowing of, conversion to or continuation of Eurodollar Rate
Loans shall be in a principal amount of $5,000,000 or a whole multiple of
$1,000,000 in excess thereof. Each Borrowing of or conversion to Base Rate Loans
shall be in a principal amount of $1,000,000 or a whole multiple of $500,000 in
excess thereof. Each Loan Notice (whether telephonic or written) shall specify
(i) whether the Borrower is requesting a Borrowing, a conversion of Loans from
one Type to the other, or a continuation of Eurodollar Rate Loans, (ii) the
requested date of the Borrowing, conversion or continuation, as the case may be
(which shall be a Business Day), (iii) the principal amount of Loans to be
borrowed, converted or continued, (iv) the Type of Loans to be borrowed or to
which existing Loans are to be converted, and (v) if applicable, the duration of
the Interest Period with respect thereto. If the Borrower fails to specify a
Type of Loan in a Loan Notice or if the Borrower fails to give a timely notice
requesting a conversion or continuation, then the applicable Loans shall be made
as, or converted to, Base Rate Loans. Any such automatic conversion to Base Rate
Loans shall be effective as of the last day of the Interest Period then in
effect with respect to the applicable Eurodollar Rate Loans. If the Borrower
requests a Borrowing of, conversion to, or continuation of Eurodollar Rate Loans
in any such Loan Notice,

                                       22
<PAGE>

but fails to specify an Interest Period, it will be deemed to have specified an
Interest Period of seven days.

         (b) Following receipt of a Loan Notice, the Administrative Agent shall
promptly notify each Lender of the amount of its Pro Rata Share of the
applicable Loans, and if no timely notice of a conversion or continuation is
provided by the Borrower, the Administrative Agent shall notify each Lender of
the details of any automatic conversion to Base Rate Loans described in the
preceding subsection. In the case of a Borrowing during the Revolving
Availability Period, each Lender shall make the amount of its Loan available to
the Administrative Agent in immediately available funds at the Administrative
Agent's Office not later than 1:00 p.m. on the Business Day specified in the
applicable Loan Notice. Upon satisfaction of the applicable conditions set forth
in Section 4.02 (and, if such Borrowing is the initial Borrowing, Section 4.01),
the Administrative Agent shall make all funds so received available to the
Borrower in like funds as received by the Administrative Agent either by (i)
crediting the account of the Borrower on the books of Bank of America with the
amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to (and reasonably acceptable to) the
Administrative Agent by the Borrower.

         (c) Except as otherwise provided herein, a Eurodollar Rate Loan may be
continued or converted only on the last day of an Interest Period for such
Eurodollar Rate Loan. During the existence of a Default or an Event of Default,
no Loans may be requested as, converted to or continued as Eurodollar Rate Loans
without the consent of the Required Lenders.

         (d) The Administrative Agent shall promptly notify the Borrower and the
Lenders of the interest rate applicable to any Interest Period for Eurodollar
Rate Loans upon determination of such interest rate. The determination of the
Eurodollar Rate by the Administrative Agent shall be conclusive in the absence
of manifest error. At any time that Base Rate Loans are outstanding, the
Administrative Agent shall notify the Borrower and the Lenders of any change in
Bank of America's prime rate used in determining the Base Rate promptly
following the public announcement of such change.

         (e) After giving effect to all Borrowings, all conversions of Loans
from one Type to the other, and all continuations of Loans as the same Type,
there shall not be more than ten Interest Periods in effect with respect to
Loans.

         2.03 PREPAYMENTS.

         (a) The Borrower may, upon notice to the Administrative Agent, at any
time or from time to time voluntarily prepay Loans in whole or in part without
premium or penalty; provided that (i) such notice must be received by the
Administrative Agent not later than 12:00 noon (A) three Business Days prior to
any date of prepayment of Eurodollar Rate Loans and (B) on the date of
prepayment of Base Rate Loans; (ii) any prepayment of Eurodollar Rate Loans
shall be in a principal amount of $5,000,000 or a whole multiple of $1,000,000
in excess thereof; and (iii) any prepayment of Base Rate Loans shall be in a
principal amount of $1,000,000 or a whole multiple of $500,000 in excess thereof
or, in each case, if less, the entire principal amount thereof then outstanding.
Each such notice shall specify the date and amount of such prepayment

                                       23
<PAGE>

and the Type(s) of Loans to be prepaid. The Administrative Agent will promptly
notify each Lender of its receipt of each such notice, and of the amount of such
Lender's Pro Rata Share of such prepayment. If such notice is given by the
Borrower, the Borrower shall make such prepayment and the payment amount
specified in such notice shall be due and payable on the date specified therein.
Any prepayment of a Eurodollar Rate Loan shall be accompanied by all accrued
interest thereon, together with any additional amounts required pursuant to
Section 3.05. Each such prepayment shall be applied to the Loans of the Lenders
in accordance with their respective Pro Rata Shares.

         (b) If for any reason the Total Outstandings at any time exceed the
Aggregate Commitments then in effect, the Borrower shall immediately prepay
Loans in an aggregate amount equal to such excess.

         2.04 TERMINATION OR REDUCTION OF COMMITMENTS. The Borrower may, upon
notice to the Administrative Agent, terminate the Aggregate Commitments, or from
time to time permanently reduce the Aggregate Commitments; provided that (i) any
such notice shall be received by the Administrative Agent not later than 12:00
noon five Business Days prior to the date of termination or reduction, (ii) any
such partial reduction shall be in an aggregate amount of $5,000,000 or any
whole multiple of $1,000,000 in excess thereof, and (iii) the Borrower shall not
terminate or reduce the Aggregate Commitments if, after giving effect thereto
and to any concurrent prepayments hereunder, the Total Outstandings would exceed
the Aggregate Commitments. The Administrative Agent will promptly notify the
Lenders of any such notice of termination or reduction of the Aggregate
Commitments. Any reduction of the Aggregate Commitments shall be applied to the
Commitment of each Lender according to its Pro Rata Share. All facility and
utilization fees accrued until the effective date of any termination of the
Aggregate Commitments shall be paid on the effective date of such termination.

         2.05 REPAYMENT OF LOANS.

         The Borrower shall repay on the Maturity Date the aggregate principal
amount of Loans outstanding on such date. Payment shall be made to the
Administrative Agent for the account of the Lenders.

         2.06 INTEREST.

         (a) Subject to the provisions of subsection (b) below, (i) each
Eurodollar Rate Loan shall bear interest on the outstanding principal amount
thereof for each Interest Period at a rate per annum equal to the Eurodollar
Rate for such Interest Period plus the Applicable Rate; and (ii) each Base Rate
Loan shall bear interest on the outstanding principal amount thereof from the
applicable borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Rate.

         (b) If any amount payable by the Borrower under any Loan Document is
not paid when due (without regard to any applicable grace periods), whether at
stated maturity, by acceleration or otherwise, such amount shall thereafter bear
interest at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws. In addition,
while any Event of Default exists, the Borrower shall pay interest on the

                                       24
<PAGE>

principal amount of all outstanding Obligations hereunder at a fluctuating
interest rate per annum at all times equal to the Default Rate to the fullest
extent permitted by applicable Laws. Accrued and unpaid interest on past due
amounts (including interest on past due interest) shall be due and payable upon
demand.

         (c) Interest on each Loan shall be due and payable in arrears on each
Interest Payment Date applicable thereto and at such other times as may be
specified herein. Interest hereunder shall be due and payable in accordance with
the terms hereof before and after judgment, and before and after the
commencement of any proceeding under any Debtor Relief Law.

         2.07 FEES.

         (a) Facility Fee. The Borrower shall pay to the Administrative Agent
for the account of each Lender in accordance with its Pro Rata Share, a facility
fee equal to the Applicable Rate times the actual daily amount of the Aggregate
Commitments (or, if the Aggregate Commitments have terminated, on the
Outstanding Amount of all Loans), regardless of usage. The facility fee shall
accrue at all times during the Availability Period (and thereafter so long as
any Revolver Loans or Term Loans remain outstanding), including at any time
during which one or more of the conditions in Article IV is not met, and shall
be due and payable quarterly in arrears on the last Business Day of each March,
June, September and December, commencing with the first such date to occur after
the Closing Date, and on the Maturity Date (and, if applicable, thereafter on
demand). The facility fee shall be calculated quarterly in arrears, and if there
is any change in the Applicable Rate during any quarter, the actual daily amount
shall be computed and multiplied by the Applicable Rate separately for each
period during such quarter that such Applicable Rate was in effect.

         (b) Utilization Fee. The Borrower shall pay to the Administrative Agent
for the account of each Lender in accordance with its Pro Rata Share, (i) at all
times, unless the Term Out option has been exercised pursuant to Section 2.13, a
utilization fee equal to the Applicable Rate times the Total Outstandings on
each day that the Total Outstandings exceed 33% of the actual daily amount of
the Aggregate Commitments, and (ii) from and after the effective date of the
exercise of the Term-Out option, a utilization fee equal to the Applicable Rate
times the Total Outstandings. The utilization fee shall be due and payable
quarterly in arrears on the last Business Day of each March, June, September and
December, commencing with the first such date to occur after the Closing Date,
and on the Maturity Date. The utilization fee shall be calculated quarterly in
arrears. The utilization fee shall accrue at all times, including at any time
during which one or more of the conditions in Article IV is not met.

         (b) Other Fees. (i) The Borrower shall pay to the Arrangers and the
Administrative Agent for their own respective accounts fees in the amounts and
at the times specified in the Fee Letter. Such fees shall be fully earned when
paid and shall not be refundable for any reason whatsoever.

                                       25
<PAGE>

         (ii) The Borrower shall pay to the Lenders such fees as shall have been
separately agreed upon in writing in the amounts and at the times so specified.
Such fees shall be fully earned when paid and shall not be refundable for any
reason whatsoever.

         2.08 COMPUTATION OF INTEREST AND FEES. All computations of interest for
Base Rate Loans when the Base Rate is determined by Bank of America's "prime
rate" shall be made on the basis of a year of 365 or 366 days, as the case may
be, and actual days elapsed. 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 fees or interest, as applicable, being paid than if computed on the basis
of a 365-day year). Interest shall accrue on each Loan for the day on which the
Loan is made, and shall not accrue on a Loan, or any portion thereof, for the
day on which the Loan or such portion is paid, provided that any Loan that is
repaid on the same day on which it is made shall, subject to Section 2.10(a),
bear interest for one day.

         2.09 EVIDENCE OF DEBT.

         The Loans made by each Lender shall be evidenced by one or more
accounts or records maintained by such Lender and by the Administrative Agent in
the ordinary course of business. The accounts or records maintained by the
Administrative Agent and each Lender shall be conclusive absent manifest error
of the amount of the Loans made by the Lenders to the Borrower and the interest
and payments thereon. Any failure to so 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 Obligations. In the event of any
conflict between the accounts and records maintained by any Lender and the
accounts and records of the Administrative Agent in respect of such matters, the
accounts and records of the Administrative Agent shall control in the absence of
manifest error. Upon the request of any Lender made through the Administrative
Agent, the Borrower shall execute and deliver to such Lender (through the
Administrative Agent) a Note, which shall evidence such Lender's Loans in
addition to such accounts or records. Each Lender may attach schedules to its
Note and endorse thereon the date, Type (if applicable), amount and maturity of
its Loans and payments with respect thereto.

         2.10 PAYMENTS GENERALLY.

         (a) All payments to be made by the Borrower shall be made without
condition or deduction for any counterclaim, defense, recoupment or setoff.
Except as otherwise expressly provided herein, all payments by the Borrower
hereunder shall be made to the Administrative Agent, for the account of the
respective Lenders to which such payment is owed, at the Administrative Agent's
Office in Dollars and in immediately available funds not later than 2:00 p.m. on
the date specified herein. The Administrative Agent will promptly distribute to
each Lender its Pro Rata Share (or other applicable share as provided herein) of
such payment in like funds as received by wire transfer to such Lender's Lending
Office. All payments received by the Administrative Agent after 2:00 p.m. shall
be deemed received on the next succeeding Business Day and any applicable
interest or fee shall continue to accrue.

                                       26
<PAGE>

         (b) If any payment to be made by the Borrower shall come due on a day
other than a Business Day, payment shall be made on the next following Business
Day, and such extension of time shall be reflected in computing interest or
fees, as the case may be.

         (c) Unless the Borrower or any Lender has notified the Administrative
Agent, prior to the date any payment is required to be made by it to the
Administrative Agent hereunder, that the Borrower or such Lender, as the case
may be, will not make such payment, the Administrative Agent may assume that the
Borrower or such Lender, as the case may be, has timely made such payment and
may (but shall not be so required to), in reliance thereon, make available a
corresponding amount to the Person entitled thereto. If and to the extent that
such payment was not in fact made to the Administrative Agent in immediately
available funds, then:

                  (i) if the Borrower failed to make such payment, each Lender
         shall forthwith on demand repay to the Administrative Agent the portion
         of such assumed payment that was made available to such Lender in
         immediately available funds, together with interest thereon in respect
         of each day from and including the date such amount was made available
         by the Administrative Agent to such Lender to the date such amount is
         repaid to the Administrative Agent in immediately available funds at
         the Federal Funds Rate from time to time in effect; and

                  (ii) if any Lender failed to make such payment, such Lender
         shall forthwith on demand pay to the Administrative Agent the amount
         thereof in immediately available funds, together with interest thereon
         for the period from the date such amount was made available by the
         Administrative Agent to the Borrower to the date such amount is
         recovered by the Administrative Agent (the "Compensation Period") at a
         rate per annum equal to the Federal Funds Rate from time to time in
         effect. If such Lender pays such amount to the Administrative Agent,
         then such amount shall constitute such Lender's Loan included in the
         applicable Borrowing. If such Lender does not pay such amount forthwith
         upon the Administrative Agent's demand therefor, the Administrative
         Agent may make a demand therefor upon the Borrower, and the Borrower
         shall pay such amount to the Administrative Agent, together with
         interest thereon for the Compensation Period at a rate per annum equal
         to the rate of interest applicable to the applicable Borrowing. Nothing
         herein shall be deemed to relieve any Lender from its obligation to
         fulfill its Commitment or to prejudice any rights which the
         Administrative Agent or the Borrower may have against any Lender as a
         result of any default by such Lender hereunder.

         A notice of the Administrative Agent to any Lender or the Borrower with
respect to any amount owing under this subsection (c) shall be conclusive,
absent manifest error.

         (d) If any Lender makes available to the Administrative Agent funds for
any Loan to be made by such Lender as provided in the foregoing provisions of
this Article II, and such funds are not made available to the Borrower by the
Administrative Agent because the conditions to the applicable Borrowing set
forth in Article IV are not satisfied or waived in accordance with the terms
hereof, the Administrative Agent shall return such funds (in like funds as
received from such Lender) to such Lender, without interest.

                                       27
<PAGE>

         (e) The obligations of the Lenders hereunder to make Loans are several
and not joint. The failure of any Lender to make any Loan or to fund any such
participation on any date required hereunder shall not relieve any other Lender
of its corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of any other Lender to so make its Loan or purchase
its participation.

         (f) Nothing herein shall be deemed to obligate any Lender to obtain the
funds for any Loan in any particular place or manner or to constitute a
representation by any Lender that it has obtained or will obtain the funds for
any Loan in any particular place or manner.

         2.11 SHARING OF PAYMENTS. If, other than as expressly provided
elsewhere herein, any Lender 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 ratable share (or other share
contemplated hereunder) thereof, such Lender shall immediately (a) notify the
Administrative Agent of such fact, and (b) purchase from the other Lenders such
participations in the Loans made by them as shall be necessary to cause such
purchasing Lender to share the excess payment in respect of such Loans or such
participations, as the case may be, pro rata with each of them; provided,
however, that if all or any portion of such excess payment is thereafter
recovered from the purchasing Lender under any of the circumstances described in
Section 10.06 (including pursuant to any settlement entered into by the
purchasing Lender in its discretion), such purchase shall to that extent be
rescinded and each other Lender shall repay to the purchasing Lender the
purchase price paid therefor, together with an amount equal to such paying
Lender's ratable share (according to the proportion of (i) the amount of such
paying Lender's required repayment to (ii) the total amount so recovered from
the purchasing Lender) of any interest or other amount paid or payable by the
purchasing Lender in respect of the total amount so recovered, without further
interest thereon. The Borrower agrees that any Lender so purchasing a
participation from another Lender may, to the fullest extent permitted by law,
exercise all its rights of payment (including the right of set-off, but subject
to Section 10.09) with respect to such participation as fully as if such Lender
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 Lenders following any such purchases or
repayments. Each Lender that purchases a participation pursuant to this Section
shall from and after such purchase have the right to give all notices, requests,
demands, directions and other communications under this Agreement with respect
to the portion of the Obligations purchased to the same extent as though the
purchasing Lender were the original owner of the Obligations purchased.

         2.12 EXTENSION OF MATURITY DATE.

         (a) Not earlier than 60 days prior to, nor later than 45 days prior to,
the first and second anniversary of the Closing Date, the Borrower may, upon
notice to the Administrative Agent (which shall promptly notify the Lenders),
request a 364-day extension of the Stated Maturity Date then in effect. Within
30 days of delivery of such notice, each Lender shall notify the Administrative
Agent whether or not it consents to such extension (which consent may be

                                       28
<PAGE>

given or withheld in such Lender's sole and absolute discretion). Any Lender not
responding within the above time period shall be deemed not to have consented to
such extension. The Administrative Agent shall promptly notify the Borrower and
the Lenders of the Lenders' responses. If any Lender declines, or is deemed to
have declined, to consent to such extension, the Borrower may cause any such
Lender to be replaced as a Lender pursuant to Section 10.16.

         (b) The Stated Maturity Date shall be extended only if Lenders holding
at least 66-2/3% of the Aggregate Commitments (calculated prior to giving effect
to any replacements of Lenders permitted herein) (the "Consenting Lenders") have
consented thereto. If so extended, the Maturity Date, as to the Consenting
Lenders, shall be extended to a date 364 days from the Stated Maturity Date then
in effect, effective as of the Stated Maturity Date then in effect (such
existing Stated Maturity Date being the "Extension Effective Date"). The
Administrative Agent and the Borrower shall promptly confirm to the Lenders such
extension and the Extension Effective Date. As a condition precedent to such
extension, the Borrower shall deliver to the Administrative Agent a certificate
of the Borrower dated as of the Extension Effective Date signed by a Responsible
Officer of the Borrower (i) certifying and attaching the resolutions adopted by
the Borrower approving or consenting to such extension, (ii) certifying that the
terms of any outstanding Permitted Preferred Trust Securities and Permitted
Subordinated Trust Indebtedness are in compliance with the requirement set forth
in the definitions of "Permitted Preferred Trust Securities" and "Permitted
Subordinated Trust Indebtedness" herein contained, (iii) certifying that the
terms of any Permitted Affiliate Subordinated Indebtedness are in compliance
with the requirements set forth in the definition of "Permitted Affiliate
Subordinated Indebtedness" herein contained, and (iv) certifying that, before
and after giving effect to such extension, (A) the representations and
warranties contained in Article V and the other Loan Documents are true and
correct in all material respects on and as of the Extension Effective Date,
except to the extent that such representations and warranties specifically refer
to an earlier date, in which case they are true and correct as of such earlier
date, and except that for purposes of this Section 2.12, the representations and
warranties contained in subsections (a) and (b) of Section 5.13 shall be deemed
to refer to the most recent statements furnished pursuant to subsections (a) and
(b), respectively, of Section 6.01, and (B) no Default or Event of Default
exists. The Borrower shall prepay any Loans outstanding on the Extension
Effective Date (and pay any additional amounts required pursuant to Section
3.05) to the extent necessary to repay Loans of Lenders who have not consented
to the extension and to keep outstanding Loans ratable with any revised and new
Pro Rata Shares of all the Lenders effective as of the Extension Effective Date.
Prior to the Extension Effective Date, the Borrower may withdraw its election
pursuant to this Section 2.12, and if the Borrower makes such withdrawal, the
Extension Effective Date will not occur; and in such case the Borrower may
exercise the Term-Out option set forth in Section 2.13, subject to compliance
with the time periods and other requirements set forth therein.

         (c) This Section shall supersede any provisions in Section 2.11 or
10.01 to the contrary.

         2.13 TERM-OUT OPTION.

         (a) Provided no Default or Event of Default has occurred and is
continuing, the Borrower may, upon prior written notice to the Administrative
Agent sent not earlier than 60

                                       29
<PAGE>

days prior to, nor later than 10 days prior to, the Stated Maturity Date, elect
to have the principal balance of the Loans outstanding on the Stated Maturity
Date continued to the Term Loan Maturity Date as non-revolving Term Loans (the
"Term-Out"). As a condition precedent to the Term-Out, the Borrower shall
deliver to the Administrative Agent a certificate of the Borrower dated the
effective date of the Term-Out signed by a Responsible Officer of the Borrower
(i) certifying and attaching the resolutions adopted by the Borrower approving
or consenting to such Term-Out, (ii) certifying that the terms of any
outstanding Permitted Preferred Trust Securities and Permitted Subordinated
Trust Indebtedness are in compliance with the requirement set forth in the
definitions of "Permitted Preferred Trust Securities" and "Permitted
Subordinated Trust Indebtedness" herein contained, (iii) certifying that the
terms of any Permitted Affiliate Subordinated Indebtedness are in compliance
with the requirements set forth in the definition of "Permitted Affiliate
Subordinated Indebtedness" herein contained, and (iv) certifying that, before
and after giving effect to such extension, (A) the representations and
warranties contained in Article V and the other Loan Documents are true and
correct in all material respects on and as of the Extension Effective Date,
except to the extent that such representations and warranties specifically refer
to an earlier date, in which case they are true and correct as of such earlier
date, and except that for purposes of this Section 2.13, the representations and
warranties contained in subsections (a) and (b) of Section 5.13 shall be deemed
to refer to the most recent statements furnished pursuant to subsections (a) and
(b), respectively, of Section 6.01, and (B) no Default or Event of Default
exists.

         (b) During the period of such Term Loans, the Borrower may repay but
not reborrow the outstanding Term Loans as provided in Section 2.03 hereof,
except as may be required from time to time to continue the outstanding
principal balance of maturing Loans pursuant to Section 2.02.

                                  ARTICLE III.
                     TAXES, YIELD PROTECTION AND ILLEGALITY

         3.01 TAXES.

         (a) Any and all payments by the Borrower to or for the account of the
Administrative Agent or any Lender under any Loan Document shall be made free
and clear of and without deduction for any and all present or future taxes,
duties, levies, imposts, deductions, assessments, fees, withholdings or similar
charges, and all liabilities with respect thereto, excluding, in the case of the
Administrative Agent and each Lender, taxes imposed on or measured by its
overall net income, and franchise taxes imposed on it (in lieu of net income
taxes), by the jurisdiction (or any political subdivision thereof) under the
Laws of which the Administrative Agent or such Lender, as the case may be, is
organized or maintains a lending office (all such non-excluded taxes, duties,
levies, imposts, deductions, assessments, fees, withholdings or similar charges,
and liabilities being hereinafter referred to as "Taxes"). If the Borrower shall
be required by any Laws to deduct any Taxes from or in respect of any sum
payable under any Loan Document to the Administrative Agent or any Lender, (i)
the sum payable shall be increased as necessary so that after making all
required deductions (including deductions applicable to additional sums payable
under this Section), each of the Administrative Agent and such Lender receives
an amount equal to the sum it would have received had no such deductions been
made, (ii) the

                                       30
<PAGE>

Borrower shall make such deductions, (iii) the Borrower shall pay the full
amount deducted to the relevant taxation authority or other authority in
accordance with applicable Laws, and (iv) within 30 days after the date of such
payment, the Borrower shall furnish to the Administrative Agent (which shall
forward the same to such Lender) the original or a certified copy of a receipt
evidencing payment thereof.

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

         (c) If the Borrower shall be required to deduct or pay any Taxes or
Other Taxes from or in respect of any sum payable under any Loan Document to the
Administrative Agent or any Lender, the Borrower shall also pay to the
Administrative Agent or to such Lender, as the case may be, at the time interest
is paid, such additional amount that the Administrative Agent or such Lender
specifies is necessary to preserve the after-tax yield (after factoring in all
taxes, including taxes imposed on or measured by net income) that the
Administrative Agent or such Lender would have received if such Taxes or Other
Taxes had not been imposed.

         (d) The Borrower agrees to indemnify the Administrative Agent and each
Lender for (i) 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) paid by the Administrative Agent and such Lender, (ii) amounts
payable under Section 3.01(c) and (iii) any liability (including additions to
tax, penalties, interest and expenses) arising therefrom or with respect
thereto, in each case whether or not such Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority. Payment
under this subsection (d) shall be made within 30 days after the date the Lender
or the Administrative Agent makes a demand therefor.

         3.02 ILLEGALITY. If any Lender determines that any Law has made it
unlawful, or that any Governmental Authority has asserted that it is unlawful,
for any Lender or its applicable Lending Office to make, maintain or fund
Eurodollar Rate Loans, or to determine or charge interest rates based upon the
Eurodollar Rate, then, on notice thereof by such Lender to the Borrower through
the Administrative Agent, any obligation of such Lender to make or continue
Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate Loans
shall be suspended until such Lender notifies the Administrative Agent and the
Borrower that the circumstances giving rise to such determination no longer
exist. Upon receipt of such notice, the Borrower shall, upon demand from such
Lender (with a copy to the Administrative Agent), prepay or, if applicable,
convert all Eurodollar Rate Loans of such Lender to Base Rate Loans, either on
the last day of the Interest Period therefor, if such Lender may lawfully
continue to maintain such Eurodollar Rate Loans to such day, or immediately, if
such Lender may not lawfully continue to maintain such Eurodollar Rate Loans.
Upon any such prepayment or conversion, the Borrower shall also pay accrued
interest on the amount so prepaid or converted. Each Lender agrees to designate
a different Lending Office if such designation will avoid the

                                       31
<PAGE>

need for such notice and will not, in the good faith judgment of such Lender,
otherwise be materially disadvantageous to such Lender.

         3.03 INABILITY TO DETERMINE RATES. If the Required Lenders determine
that for any reason adequate and reasonable means do not exist for determining
the Eurodollar Rate for any requested Interest Period with respect to a proposed
Eurodollar Rate Loan, or that the Eurodollar Rate for any requested Interest
Period with respect to a proposed Eurodollar Rate Loan does not adequately and
fairly reflect the cost to such Lenders of funding such Loan, the Administrative
Agent will promptly so notify the Borrower and each Lender. Thereafter, the
obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be
suspended until the Administrative Agent (upon the instruction of the Required
Lenders) revokes such notice. Upon receipt of such notice, the Borrower may
revoke any pending request for a Borrowing of, conversion to or continuation of
Eurodollar Rate Loans or, failing that, will be deemed to have converted such
request into a request for a Borrowing of Base Rate Loans in the amount
specified therein.

         3.04 INCREASED COST AND REDUCED RETURN; CAPITAL ADEQUACY; RESERVES ON
EURODOLLAR RATE LOANS.

         (a) If any Lender determines that as a result of the introduction of or
any change in or in the interpretation of any Law, or such Lender's compliance
therewith, there shall be any increase in the cost to such Lender of agreeing to
make or making, funding or maintaining Eurodollar Rate Loans or a reduction in
the amount received or receivable by such Lender in connection with any of the
foregoing (excluding for purposes of this subsection (a) any such increased
costs or reduction in amount resulting from (i) Taxes or Other Taxes (as to
which Section 3.01 shall govern), (ii) changes in the basis of taxation of
overall net income or overall gross income by the United States or any foreign
jurisdiction or any political subdivision of either thereof under the Laws of
which such Lender is organized or has its Lending Office, and (iii) reserve
requirements contemplated by Section 3.04(c)), then from time to time upon
demand of such Lender (with a copy of such demand to the Administrative Agent),
the Borrower shall pay to such Lender such additional amounts as will compensate
such Lender for such increased cost or reduction.

         (b) If any Lender determines that the introduction of any Law regarding
capital adequacy or any change therein or in the interpretation thereof, or
compliance by such Lender (or its Lending Office) therewith, has the effect of
reducing the rate of return on the capital of such Lender or any corporation
controlling such Lender as a consequence of such Lender's obligations hereunder
(taking into consideration its policies with respect to capital adequacy and
such Lender's desired return on capital), then from time to time upon demand of
such Lender (with a copy of such demand to the Administrative Agent), the
Borrower shall pay to such Lender such additional amounts as will compensate
such Lender for such reduction.

         (c) The Borrower shall pay to each Lender, as long as such Lender shall
be required to maintain reserves with respect to liabilities or assets
consisting of or including Eurocurrency funds or deposits (currently known as
"Eurocurrency liabilities"), additional interest on the unpaid principal amount
of each Eurodollar Rate Loan equal to the actual costs of such reserves
allocated to such Loan by such Lender (as determined by such Lender in good
faith, which

                                       32
<PAGE>

determination shall be conclusive), which shall be due and payable on each date
on which interest is payable on such Loan, provided the Borrower shall have
received at least 15 days' prior notice (with a copy to the Administrative
Agent) of such additional interest from such Lender. If a Lender fails to give
notice 15 days prior to the relevant Interest Payment Date, such additional
interest shall be due and payable 15 days from receipt of such notice. The
Borrower shall not be required to compensate a Lender pursuant to this
subsection (c) for any additional costs incurred more than 180 days prior to the
date that such Lender gives notice to the Borrower of additional costs and of
the Lender's intention to claim compensation therefor; provided, that if the
change in law or regulations giving rise to such costs is retroactive, then the
180-day period shall be extended to include the period of retroactive effect
thereof.

         3.05 FUNDING LOSSES. Upon demand of any Lender (with a copy to the
Administrative Agent) from time to time, the Borrower shall promptly compensate
such Lender for and hold such Lender harmless from any loss, cost or expense
incurred by it as a result of:

         (a) any continuation, conversion, payment or prepayment of any Loan
other than a Base Rate Loan on a day other than the last day of the Interest
Period for such Loan (whether voluntary, mandatory, automatic, by reason of
acceleration, or otherwise);

         (b) any failure by the Borrower (for a reason other than the failure of
such Lender to make a Loan) to prepay, borrow, continue or convert any Loan
other than a Base Rate Loan on the date or in the amount notified by the
Borrower; or

         (c) any assignment of a Eurodollar Rate Loan on a day other than the
last day of the Interest Period therefor as a result of a request by the
Borrower pursuant to Section 10.16;

including any loss of anticipated profits and any loss or expense arising from
the liquidation or reemployment of funds obtained by it to maintain such Loan or
from fees payable to terminate the deposits from which such funds were obtained.
The Borrower shall also pay any customary administrative fees charged by such
Lender in connection with the foregoing.

For purposes of calculating amounts payable by the Borrower to the Lenders under
this Section 3.05, each Lender shall be deemed to have funded each Eurodollar
Rate Loan made by it at the Eurodollar Rate for such Loan by a matching deposit
or other borrowing in the London interbank eurodollar market for a comparable
amount and for a comparable period, whether or not such Eurodollar Rate Loan was
in fact so funded.

         3.06 MATTERS APPLICABLE TO ALL REQUESTS FOR COMPENSATION.

         (a) A certificate of the Administrative Agent or any Lender claiming
compensation under this Article III and setting forth the additional amount or
amounts to be paid to it hereunder shall be conclusive in the absence of
manifest error. In determining such amount, the Administrative Agent or such
Lender may use any reasonable averaging and attribution methods.

         (b) Upon any Lender's making a claim for compensation under Section
3.01 or 3.04, the Borrower may replace such Lender in accordance with Section
10.16.

                                       33
<PAGE>

         (c) Upon any Lender's making a determination that it is unlawful to
maintain Eurodollar Rate Loans and such Lender fails to designate a different
Lending Office pursuant to Section 3.02, the Borrower may replace such Lender in
accordance with Section 10.16.

         3.07 SURVIVAL. All of the Borrower's obligations under this Article III
shall survive termination of the Aggregate Commitments and repayment of all
other Obligations hereunder; provided, that with respect to amounts payable
under Sections 3.04 and 3.05, such amounts shall be deemed to have been paid if
no claim therefor is made within two years after the date that all Loans have
been paid in full and all commitments to make Loans hereunder have terminated.

                                   ARTICLE IV.
                    CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

         4.01 CONDITIONS OF INITIAL BORROWING. The obligation of each Lender to
make its initial Loan hereunder is subject to satisfaction of the following
conditions precedent:

         (a) The Administrative Agent's receipt of the following, each of which
shall be originals or facsimiles (followed promptly by originals) unless
otherwise specified, each properly executed by a Responsible Officer of the
Borrower, each dated the Closing Date (or, in the case of certificates of
governmental officials, a recent date before the Closing Date) and each in form
and substance satisfactory to the Administrative Agent and its legal counsel:

         (i) executed counterparts of this Agreement, sufficient in number for
distribution to the Administrative Agent, each Lender and the Borrower;

         (ii) a Note executed by the Borrower in favor of each Lender requesting
a Note;

         (iii) such certificates of resolutions or other action, incumbency
certificates and/or other certificates of Responsible Officers of the Borrower
as the Administrative Agent may require evidencing the identity, authority and
capacity of each Responsible Officer thereof authorized to act as a Responsible
Officer in connection with this Agreement and the other Loan Documents;

         (iv) each of the following documents:

                  (A) a certificate for the Borrower from the Secretary of State
         of the State of Delaware listing the Certificate of Incorporation and
         each amendment, if any, thereto, on file in his office and stating that
         such documents are the only charter documents of the Borrower on file
         in his office and that the Borrower is duly incorporated and in good
         standing in the State of Delaware, and has filed all franchise tax
         returns and has paid all franchise taxes required by law to be filed
         and paid by the Borrower as of the date of his certificate; and

                  (B) signed certificates of the Secretaries of State (or other
         appropriate officials) of each appropriate State set forth on Schedule
         4.01, dated reasonably near the

                                       34
<PAGE>

         Closing Date, certifying that the Borrower is duly qualified and in
         good standing as a foreign corporation in such State;

         (v) a favorable opinion of Sidley Austin Brown & Wood, counsel to the
Borrower, addressed to the Administrative Agent and each Lender, substantially
in the form set forth in Exhibit G-1 and such other matters concerning the
Borrower and the Loan Documents as the Required Lenders may reasonably request;

         (vi) a favorable opinion of Peer L. Anderson, Vice President and
General Counsel to the Borrower, addressed to the Administrative Agent and each
Lender, substantially in the form set forth in Exhibit G-2 and such other
matters concerning the Borrower and the Loan Documents as the Required Lenders
may reasonably request;

         (vii) a favorable opinion of Oscar Murillo, General Counsel to PDVSA,
addressed to the Administrative Agent and each Lender, substantially in the form
set forth in Exhibit G-3 and such other matters concerning the Borrower and the
Loan Documents as the Required Lenders may reasonably request;

         (viii) a certificate of a Responsible Officer of the Borrower either
(A) attaching copies of all consents, licenses and approvals required in
connection with the execution, delivery and performance by the Borrower and the
validity against the Borrower of the Loan Documents to which it is a party, and
such consents, licenses, and approvals shall be in full force and effect, or (B)
stating that no such consents, licenses or approvals are so required;

         (ix) a certificate signed by a Responsible Officer of the Borrower
certifying (A) that the conditions specified in Sections 4.02(a) and (b) have
been satisfied, (B) that there has been no event or circumstance since September
30, 2002 that has had or could be reasonably expected to have, either
individually or in the aggregate, a Material Adverse Effect, and (C) a
calculation of (x) the Capitalization Ratio, (y) the ratio of EBITDA to Interest
Expense, and (z) the Net Worth of the Borrower as of the last day of the Fiscal
Quarter of the Borrower most recently ended prior to the Closing Date;

         (x) certificates of insurance demonstrating that the Borrower and each
of its Subsidiaries has procured with responsible insurance companies insurance
with respect to its properties and business (including business interruption
insurance) against such casualties and contingencies and of such types, in such
amounts and with such deductibles as is required by Section 6.05;

         (xi) evidence that the Existing Credit Agreements have been or
concurrently with the Closing Date are being terminated and all loans
outstanding thereunder have been or concurrently with the Closing Date are being
repaid; and

         (xii) such other assurances, certificates, documents, consents or
opinions as the Administrative Agent or the Required Lenders reasonably may
require.

                                       35
<PAGE>

         (b) There shall be no threatened or pending litigation, inquiry, or
investigation contesting the Loan Documents or any transaction contemplated
thereby.

         (c) Any fees and expenses required to be paid on or before the Closing
Date shall have been paid.

         (d) Unless waived by the Administrative Agent, the Borrower shall have
paid all Attorney Costs of the Administrative Agent to the extent invoiced for
work performed prior to or on the Closing Date.

         4.02 CONDITIONS TO ALL BORROWINGS. The obligation of each Lender to
honor any Loan Notice is subject to the following conditions precedent (provided
that the conditions set forth in subsection(a) of this Section 4.02 shall not
apply to a request to convert a Eurodollar Rate Loan to a Base Rate Loan):

         (a) The representations and warranties of the Borrower contained in
Article V or any other Loan Document, or which are contained in any document
furnished at any time under or in connection herewith or therewith, shall be
true and correct in all material respects on and as of the date of such
Borrowing, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and
correct as of such earlier date, and except that for purposes of this Section
4.02, the representations and warranties contained in subsections (a) and (b) of
Section 5.13 shall be deemed to refer to the most recent statements furnished
pursuant to clauses (a) and (b) of Section 6.01.

         (b) No Default or Event of Default shall exist, or would result from
such proposed Borrowing.

         (c) The Administrative Agent shall have received a Loan Notice in
accordance with the requirements hereof.

         Each Loan Notice submitted by the Borrower shall be deemed to be a
representation and warranty that the conditions specified in Sections 4.02(a)
and (b) have been satisfied on and as of the date of the applicable Borrowing.

                                   ARTICLE V.
                         REPRESENTATIONS AND WARRANTIES

         The Borrower represents and warrants to the Administrative Agent and
each Lender that:

         5.01 CORPORATE EXISTENCE; POWER; COMPLIANCE WITH LAWS.

         (a) the Borrower is a corporation duly incorporated, validly existing
and in good standing under the laws of the State of Delaware, and each
Subsidiary of the Borrower is a corporation, partnership, or limited liability
company, as the case may be, duly incorporated or otherwise formed, validly
existing and in good standing under the laws of the state of its incorporation
or formation;

                                       36
<PAGE>

         (b) the Borrower has all requisite corporate power and authority,
governmental licenses, authorizations, consents and approvals to own its assets,
carry on its business as currently conducted, to execute, deliver, and perform
its obligations under the Loan Documents, and to issue the Notes in the manner
and for the purpose contemplated by this Agreement, and each Subsidiary, has all
requisite corporate, partnership or limited liability company, as the case may
be, power and authority to own its assets and to carry on the business in which
it is engaged;

         (c) the Borrower and each Subsidiary of the Borrower is duly qualified
as a foreign Person authorized to do business 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 other than where the failure to be so qualified or in good standing
would not reasonably be expected to have a Material Adverse Effect; and

         (d) the Borrower and each of its Subsidiaries is in compliance in all
material respects with all Requirements of Law, except to the extent that the
failure to do so would not reasonably be expected to have a Material Adverse
Effect.

         5.02 CORPORATE AUTHORIZATION; NO CONTRAVENTION. The execution, delivery
and performance by the Borrower of the Loan Documents have been duly authorized
by all necessary corporate action, and do not and will not:

         (a) contravene the terms of any of the Borrower's Organization
Documents;

         (b) result in any breach or contravention of, or result in the creation
of any Lien under, any document evidencing any Contractual Obligation to which
the Borrower is a party or any order, injunction, writ or decree of any
Governmental Authority to which the Borrower or its property is subject (other
than such violations, breaches, defaults or Liens which would not reasonably be
expected to have a Material Adverse Effect); or

         (c) violate any Requirement of Law.

         5.03 GOVERNMENTAL AUTHORIZATION; OTHER CONSENTS. No approval, consent,
exemption, authorization, or other action by, or notice to, or filing with, any
Governmental Authority or other Person is necessary for the validity of the
execution, delivery or performance by, or enforcement against, the Borrower of
this Agreement or any Note other than routine informational filings with the SEC
and/or other Governmental Authorities.

         5.04 BINDING EFFECT. This Agreement and (when executed and delivered
for value) each other Loan Document constitute the legal, valid and binding
obligations of the Borrower, enforceable against the Borrower in accordance with
their respective terms, except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors' rights generally or by equitable principles relating to
enforceability, and by judicial discretion regarding the enforcement of or any
applicable laws affecting remedies (whether considered in a court of law or a
proceeding in equity).

                                       37
<PAGE>

         5.05 LITIGATION. No litigation (including derivative actions),
arbitration proceedings or governmental proceedings are pending or, to the best
knowledge of the Borrower after due inquiry, overtly threatened against the
Borrower or any Subsidiary (a) which would reasonably be expected to result in a
Material Adverse Effect, or (b) that question the validity or enforceability of
this Agreement or the transactions contemplated hereby. Neither the Borrower nor
any of its Subsidiaries has knowledge of any material contingent liabilities,
including those disclosed in the financial statements referred to in Section
5.13, which would reasonably be expected to have a Material Adverse Effect.

         5.06 NO DEFAULT. No Default or Event of Default exists. Neither the
Borrower nor any Subsidiary is in default under or with respect to its
Organization Documents in any respect which, individually or together with all
other such defaults, would reasonably be expected to have a Material Adverse
Effect.

         5.07 FIRE, STRIKE, ACT OF GOD, ETC. Neither the business nor the
properties of the Borrower or any of its Subsidiaries are now affected by any
fire, explosion, accident, labor controversy, strike, lockout or other dispute,
drought, storm, hail, earthquake, embargo, act of God or of the public enemy or
other casualty which would reasonably be expected to have a Material Adverse
Effect, or if any such existing event or condition were to continue for more
than 30 additional days (unless in the reasonable opinion of the Borrower such
event or condition is not likely to continue for such period) would reasonably
be expected to have a Material Adverse Effect.

         5.08 LIENS. None of the assets or properties of the Borrower or the
Subsidiaries is subject to any Lien except for Permitted Liens.

         5.09 ERISA. Each Plan and, to the best of the Borrower's knowledge,
each Multiemployer Plan, complies in all material respects with all Requirements
of Law except to the extent that noncompliance could not reasonably be expected
to have a Material Adverse Effect and,

         (a) no Reportable Event for which the PBGC has not waived the 30-day
notice requirement has occurred with respect to any Plan or, to the best of the
Borrower's knowledge, any Multiemployer Plan, which could result in the Borrower
incurring a liability or obligation in excess of $10,000,000;

         (b) no steps have been taken to terminate any Plan which could result
in the Borrower's making a contribution, or incurring a liability or obligation,
to such Plan in excess of $10,000,000; no steps have been taken to appoint a
receiver to administer any such Plan; to the best of the Borrower's knowledge,
no steps have been taken to terminate or appoint a receiver to administer any
Multiemployer Plan which could result in the Borrower's making a contribution,
or incurring a liability or obligation, to such Multiemployer Plan in excess of
$10,000,000; and neither the Borrower nor any Related Person has withdrawn from
any such Multiemployer Plan or initiated steps to do so;

                                       38
<PAGE>

         (c) There is no Unfunded Vested Liability with respect to any Plan or,
to the best of the Borrower's knowledge, any Multiemployer Plan, that would
reasonably be expected to have, in the event of termination of such Plan or
withdrawal from such Multiemployer Plan, a Material Adverse Effect; and

         (d) no contribution failure has occurred with respect to any Plan
sufficient to give rise to a Lien under Section 302(f) of ERISA; no condition
exists or event or transaction has occurred with respect to any Plan which would
reasonably be expected to have a Material Adverse Effect; and neither the
Borrower nor any of its Subsidiaries has any contingent liability with respect
to any post-retirement benefit under a Welfare Plan, other than liability for
continuation coverage described in Part 5 of Title I of ERISA, that would
reasonably be expected to have a Material Adverse Effect.

         5.10 USE OF PROCEEDS; MARGIN REGULATIONS. The proceeds of the Loans are
to be used solely for purposes not in contravention of subsection 7.01(i) or
subsection 7.01(k). Not more than 25% of the assets of the Borrower and its
Subsidiaries on a consolidated basis consists of any Margin Stock, and no part
of the proceeds of any Loan will be used to buy or carry any Margin Stock.
Neither the Borrower nor any Subsidiary is generally engaged in the business of
buying or selling Margin Stock or extending credit for the purpose of buying or
carrying Margin Stock.

         5.11 TITLE TO PROPERTIES. The Borrower and each of its Subsidiaries (i)
has valid fee title to, or valid leasehold interests in, all of its respective
material real property, and has good and valid title to all of its respective
material personal properties and assets, of any nature whatsoever which are
reflected on the audited balance sheet referred to in Section 5.13 or acquired
by the Borrower or such Subsidiary after the date thereof except for assets
sold, transferred or otherwise disposed of since such date in the ordinary
course of business, except for such defects in title as would not, individually
or in the aggregate, be reasonably expected to have a Material Adverse Effect,
and (ii) the Borrower and each of its Subsidiaries owns or holds all permits
necessary to construct, own, operate, use and maintain its respective property
and assets and to conduct its respective business as now conducted except where
the failure to have such interest or title or to own or hold such permit would
not reasonably be expected to have a Material Adverse Effect.

         5.12 TAXES. The Borrower and each Subsidiary has filed (or obtained
extensions with respect to the filing of) all United States federal income tax
returns and all other material tax returns which are required to be filed by it
and has paid all taxes as shown on such returns or pursuant to any assessment
received by the Borrower or any Subsidiary, except to the extent the same may be
contested in good faith and for which reserves have been established to the
extent required by GAAP. The charges, accruals and reserves on the books of the
Borrower and each Subsidiary in respect of Taxes and other governmental charges
are adequate to the best knowledge of the Borrower.

                                       39
<PAGE>

         5.13 FINANCIAL CONDITION.

         (a) The audited consolidated balance sheet of the Borrower and its
consolidated Subsidiaries as of December 31, 2001, and the related consolidated
statements of income or operations, shareholder's equity and cash flows for the
fiscal year ended on that date (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein; and (ii) fairly present the financial position of the
Borrower and its consolidated Subsidiaries as of the date thereof and results of
operations for the period covered thereby.

         (b) The unaudited consolidated balance sheet of the Borrower and its
consolidated Subsidiaries as of September 30, 2002, and the related consolidated
statements of income or operations, shareholder's equity and cash flows for the
fiscal year ended on that date (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein; and (ii) fairly present the financial position of the
Borrower and its consolidated Subsidiaries as of the date thereof and results of
operations for the period covered thereby, subject, in the case of (i) and (ii),
to the absence of footnotes and to normal year-end audit adjustments.

         (c) All Off-Balance Sheet Liabilities of the Borrower and its
Subsidiaries are accurately set forth (a) as of the Closing Date, on Schedule
5.13(c) and (b) as of the end of each Fiscal Year beginning with the Fiscal Year
ended December 31, 2002, on an updated Schedule attached to the Compliance
Certificate delivered by the Borrower with the most recent annual financial
statements delivered pursuant to Section 6.01(a).

         (d) Since September 30, 2002, no event or condition has occurred which,
either individually or in the aggregate, has had or could reasonably be expected
to have a Material Adverse Effect, except as disclosed on Schedule 5.13(d).

         5.14 ENVIRONMENTAL MATTERS. Each of the Borrower and its Subsidiaries
are in compliance in all material respects with all Federal, state and local
laws and regulations (i) now applicable to it, or (ii) which, to the best
knowledge of the Borrower will be applicable (or, if not in compliance with such
laws and regulations referred to in this clause (ii), the Borrower or such
Subsidiary is taking appropriate action diligently pursued to be in compliance
therewith on a timely basis or to be exempt from compliance) to it relating to
pollution control and environmental contamination, including all laws and
regulations governing the generation, use, collection, treatment, storage,
transportation, recovery, removal, discharge or disposal of Hazardous Materials,
except to the extent that the failure to comply or take such action would not
reasonably be expected to have a Material Adverse Effect. Except as disclosed on
Schedule 5.14 (as updated from time to time), (A) there are no presently
outstanding allegations by governmental officials that the Borrower or any of
its Subsidiaries is now or at any time prior to the date hereof, was in material
violation of such laws or regulations, (B) there are no material administrative
or judicial proceedings presently pending against the Borrower or any of its
Subsidiaries pursuant to such laws or regulations, and (C) there is no material
claim presently outstanding against the Borrower or any of its Subsidiaries
which was asserted pursuant to such laws or regulations that in each case would
reasonably be expected to result in a liability to the

                                       40
<PAGE>

Borrower or any Subsidiary in excess of $20,000,000 or $50,000,000 in the
aggregate for all such claims (net in each case of actual insurance coverage or
effective indemnification with respect thereto). Except as disclosed in Schedule
5.14 (as updated from time to time), the Borrower reasonably believes that no
facts or circumstances known to it or any Subsidiary could form the basis for
the assertion of any material claim against the Borrower or any Subsidiary
relating to environmental matters, including any material claim arising from
past or present environmental practices asserted under CERCLA, RCRA, or any
Environmental Law that in each case would reasonably be expected to result in a
liability to the Borrower or any Subsidiary in excess of $20,000,000 or
$50,000,000 in the aggregate for all such claims (net in each case of actual
insurance coverage or effective indemnification with respect thereto).

         5.15 REGULATED ENTITIES. None of the Borrower, any Person controlling
the Borrower, or any Subsidiary, 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 or any state public utilities code.

         5.16 COPYRIGHTS, PATENTS, TRADEMARKS AND LICENSES, ETC. The Borrower or
its Subsidiaries own or are licensed or otherwise have the right to use all of
the patents, trademarks, trade names, copyrights, contractual franchises,
authorizations and other rights that are reasonably necessary for the operation
of their respective businesses as currently conducted (other than where the
failure to so own, be licensed or have the right to use would reasonably be
expected to have a Material Adverse Effect). To the best 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 for any such infringement that would not reasonably be
expected to have a Material Adverse Effect.

         5.17 SUBSIDIARIES. As of the Closing Date, the Borrower has no
Subsidiaries other than those disclosed in Schedule 5.17 hereto, and the
Borrower has no equity investments in any other corporation or other entity
other than those disclosed on Schedule 5.17 hereto.

         5.18 SOLVENCY. The Borrower has capital sufficient to carry on its
business and transactions and all business and transactions in which it is about
to engage and is now solvent and able to pay its respective debts as they
mature, and the Borrower now owns property having a value, both at fair
valuation and at present fair salable value, greater than the amount required to
pay its existing debts.

         5.19 FULL DISCLOSURE. None of the representations or warranties made by
the Borrower or any Subsidiary in this Agreement as of the date such
representations and warranties are made or deemed made, and none of the factual
information (taken as a whole) contained in any written notice, exhibit, report,
statement or certificate furnished by or on behalf of the Borrower or any
Subsidiary in connection with this Agreement (including the offering and
disclosure materials delivered by or on behalf of the Borrower to the Lenders
prior to the Closing Date), contains any untrue statement of a material fact or
omits any material fact required to be stated therein or

                                       41
<PAGE>

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 VI.
                              AFFIRMATIVE COVENANTS

         So long as any Lender shall have any Commitment hereunder, or any
Borrowing or other Obligation shall remain unpaid or unsatisfied, unless the
Required Lenders waive compliance in writing:

         6.01 FINANCIAL STATEMENTS. The Borrower shall deliver to the
Administrative Agent and concurrently therewith to each Lender (in accordance
with Section 10.02, which shall be deemed received by each Lender when received
by the Administrative Agent):

         (a) (i) as soon as available and in any event within 90 days (or within
the filing period required by the SEC for annual reporting) after the end of
each Fiscal Year, audited consolidated financial statements of the Borrower and
its consolidated Subsidiaries, prepared in accordance with GAAP, in each case
setting forth, in comparative form, the corresponding figures for the preceding
Fiscal Year and accompanied by an opinion, without Impermissible Qualification,
by independent certified public accountants of recognized national standing and
reputation selected by the Borrower or otherwise reasonably acceptable to the
Administrative Agent (the "Independent Accountants"), consisting of a balance
sheet as at the end of such Fiscal Year and statements of income and retained
earnings and statements of cash flows, and (ii) in the event that the Borrower
is no longer required by Law to file annual reports with the SEC, within thirty
days after the delivery of such financial statements, a report from the
Independent Accountants addressed to the Borrower's management containing a
review of the Borrower's calculations which show compliance with each of the
financial ratios and restrictions contained in Section 7.02 and affirmatively
indicating that, while the audit of the consolidated financial statements of the
Borrower and its consolidated Subsidiaries was not directed primarily toward
obtaining knowledge of such compliance with these specific financial ratios and
restrictions, such accountants have not become aware of events or transactions
that would render such calculations unreliable or misleading; and

         (b) as soon as available and in any event within 45 days (or within the
filing period required by the SEC for quarterly reporting) after the end of each
Fiscal Quarter (except the last Fiscal Quarter of each Fiscal Year), (A)
consolidated financial statements of the Borrower and its consolidated
Subsidiaries, and (B) consolidated financial information of the Borrower and its
consolidated Subsidiaries, in each case consisting of a balance sheet as at the
end of such quarter and statements of income, retained earnings, and cash flows
for such Fiscal Quarter then ended and for the Fiscal Year through such quarter,
setting forth in comparative form the corresponding figures for the
corresponding dates and periods of the preceding Fiscal Year, all in reasonable
detail and certified (subject to year-end audit adjustments) by an authorized
financial officer of the Borrower to the best of such officer's knowledge and
belief as fairly presenting in accordance with GAAP (to the extent applicable)
the financial position and results of operations of the Borrower and its
consolidated Subsidiaries as at the date thereof and for the period

                                       42
<PAGE>

covered thereby (provided, that footnotes to such financial statements will not
be required) consistently applied (except as noted therein).

         (c) Notwithstanding the preceding provisions of this Section 6.01, if
and so long as the Borrower shall file regular and periodic reports with the SEC
pursuant to Sections 13 and 15 of the Securities Exchange Act of 1934, delivery
to the Administrative Agent of copies of its reports on Forms 10K and 10Q
promptly following filing thereof with the SEC, but in any event not later than
within the periods set forth in subsections 6.01(a) and (b), shall constitute
full compliance with this Section 6.01.

         6.02 CERTIFICATES; OTHER INFORMATION. The Borrower shall furnish to the
Administrative Agent:

         (a) within thirty days after the delivery of the financial statements
(or reports on Form 10K) referred to in subsection 6.01(a), and within fifteen
days after delivery of the financial statements (or reports on Form 10Q)
referred to in subsection 6.01(b), a Compliance Certificate substantially in the
form of Exhibit E, executed by a Responsible Officer;

         (b) promptly, to the extent not provided pursuant to Section 6.01(c),
copies of all financial statements and regular, periodic or special reports
(including registration statements (without exhibits) and Forms 10K, 10Q and 8K)
that the Borrower or any Subsidiary may make to, or file with, the SEC; and

         (c) promptly, such additional information regarding the business,
financial or corporate affairs of the Borrower or any Subsidiary as the
Administrative Agent, at the request of any Lender, may from time to time
reasonably request in writing.

         Documents required to be delivered pursuant to Section 6.01(a) or (b)
or Section 6.02(b) (to the extent any such documents are included in materials
otherwise filed with the SEC) may be delivered electronically and if so
delivered, shall be deemed to have been delivered on the date (i) on which the
Borrower posts such documents, or provides a link thereto on the Borrower's
website on the Internet at the website address listed on Schedule 10.02; or (ii)
on which such documents are posted on the Borrower's behalf on
IntraLinks/IntraAgency or another relevant website (including, without
limitation, the SEC's website), if any, to which each Lender and the
Administrative Agent have access (whether a commercial, third-party website or
whether sponsored by the Administrative Agent); provided that: (i) the Borrower
shall deliver paper copies of such documents to the Administrative Agent or any
Lender that requests the Borrower to deliver such paper copies and (ii) the
Borrower shall notify (which may be by facsimile or electronic mail) the
Administrative Agent of the posting of any such documents and provide to the
Administrative Agent by electronic mail electronic versions (i.e., soft copies)
of such documents. Notwithstanding anything contained herein, in every instance
the Borrower shall be required to provide paper copies of the Compliance
Certificates required by Section 6.02(a) to the Administrative Agent and each of
the Lenders. Except for such Compliance Certificates, the Administrative Agent
shall have no obligation to request the delivery or to maintain copies of the
documents referred to above, and in any event shall have no responsibility to
monitor

                                       43
<PAGE>

compliance by the Borrower with any such request for delivery, and each Lender
shall be solely responsible for requesting delivery to it or maintaining its
copies of such documents.

         6.03 NOTICES. The Borrower shall notify the Administrative Agent, and
each Lender in writing:

         (a) as soon as possible and in any event within 5 Business Days after
the Borrower becomes aware of the occurrence of any Default or Event of Default,
the statement of the President, any Vice President or the Treasurer of the
Borrower setting forth the details of each such Default or Event of Default
which has occurred and the action which the Borrower has taken and proposes to
take with respect thereto;

         (b) forthwith upon learning thereof, a description of (i) the
institution of any litigation, arbitration proceeding or governmental proceeding
to which the Borrower or any Subsidiary of the Borrower is a party that would
reasonably be expected to result in a liability to the Borrower or any
Subsidiary of the Borrower in excess of $25,000,000 (net of actual insurance
coverage or effective indemnification with respect thereto), and any material
adverse determination as to liability or amount of damages in any such
litigation, arbitration proceeding or proceeding; and (ii) any matter that has
resulted or could reasonably be expected to result in a Material Adverse Effect;

         (c) promptly upon learning thereof, a description of the institution of
any steps of the Borrower or any other Person to terminate any Plan or any
Multiemployer Plan, or the appointment of a receiver to administer any Plan or
any Multiemployer Plan, or the withdrawal by the Borrower or any Related Person
from any Multiemployer Plan, or the failure to make a required contribution to
any Plan if such failure is sufficient to give rise to a Lien under Section
302(f) of ERISA, or the taking of any action with respect to a Plan which could
result in the requirement that the Borrower furnish a bond or other security to
the PBGC or such Plan, or the occurrence of any event with respect to any Plan
which could reasonably be expected to result in the incurrence by the Borrower
of any material liability, fine or penalty, or any material increase in the
contingent liability of the Borrower with respect to any post-retirement Welfare
Plan benefit; and

         (d) within 10 Business Days after the close of a Material Acquisition
by the Borrower or any Subsidiary, the most recent annual and quarterly
financial reports of the acquired entity which are available to the Borrower,
and, a summary of the environmental due diligence work done for or by the
Borrower in connection with such Material Acquisition (it being understood that
any Persons) engaged by the Borrower to prepare such a summary and to complete
such due diligence must be of recognized national standing in the environmental
field).

         6.04 PRESERVATION OF CORPORATE EXISTENCE, ETC. The Borrower shall, and
shall cause each Subsidiary to, except for any sale, dissolution, liquidation or
merger not otherwise prohibited hereby, preserve and maintain its existence and
good standing and its rights, privileges and franchises under the laws of its
state or jurisdiction of incorporation or other formation, and remain qualified
as a foreign Person authorized to do business in each other

                                       44
<PAGE>

jurisdiction in which the failure to so qualify would reasonably be expected to
have a Material Adverse Effect.

         6.05 INSURANCE. (a) The Borrower shall maintain, and cause each
Subsidiary to maintain, insurance with respect to their respective properties
and businesses against such liabilities, casualties, risks and contingencies
(including business interruption insurance) in such types and with such
reasonable deductibles and in such amounts (after giving effect to any
self-insurance compatible with the following standards) as are customary in the
case of Persons engaged in the same or similar businesses and similarly
situated. The Borrower and its Subsidiaries shall maintain such insurance (i)
with financially sound and reputable insurers that are not Affiliates of the
Borrower (it is agreed that Oil Insurance Limited and sEnergy Insurance Ltd.
shall not be considered Affiliates of the Borrower for purposes of this Section
6.05), or (ii) with Affiliates(s) ("Affiliated Insurers") to the extent as is
customary in the case of Persons engaged in the same or similar businesses as
Borrower and similarly situated, provided that each such Affiliated Insurer has
in place reinsurance or similar agreement(s) with financially sound and
reputable insurance companies that are not Affiliates of the Borrower
("Unaffiliated Insurers") providing coverage of the type required by this
Section 6.05. Such Affiliated Insurers' agreements with Unaffiliated Insurers
shall provide that (A) the interests and rights held by such Affiliated Insurers
vis-a-vis the Unaffiliated Insurers shall pass through to the Borrower (or its
Subsidiary as applicable), and such interests and rights of the Borrower (or its
Subsidiary as applicable) vis-a-vis the Unaffiliated Insurers shall not be
invalidated or impaired by any act or neglect of, or any bankruptcy, insolvency,
dissolution or other event with respect to, the Affiliated Insurers, and (B) in
the event of the insolvency, dissolution or financial impairment of the
Affiliated Insurers that adversely affects the Borrower's (or its Subsidiary's)
ability to enforce such interests and rights against and receive payment from
the Affiliated Insurer(s), such payment will be payable by the Unaffiliated
Insurers directly to the Borrower (or its Subsidiary as applicable) under the
same circumstances and in the same amounts as would have been available to the
Borrower but for the Affiliated Insurer's insolvency, dissolution or financial
impairment. With respect to the Borrower and its Subsidiaries, the Affiliated
Insurers shall not retain any risk that is not covered by such agreements with
Unaffiliated Insurers.

         (b) Upon the execution of this Agreement and at any time thereafter at
the request of the Administrative Agent, the Borrower shall furnish or cause to
be furnished to the Administrative Agent evidence, in form and substance
satisfactory to the Administrative Agent, of the required insurance coverage of
the Borrower and each Subsidiary and, upon reasonable request, copies of the
applicable policies.

         6.06 TAXES. The Borrower shall, and shall cause each Subsidiary to, pay
and discharge all Taxes relating to the Borrower or such Subsidiary, as the case
may be, prior to the date on which penalties attach thereto; provided, that
neither the Borrower nor any Subsidiary shall be required to pay or discharge
any such Tax while the same is being contested by it in good faith and by
appropriate proceedings and so long as reserves have been established to the
extent required by GAAP.

         6.07 COMPLIANCE WITH LAWS. The Borrower shall comply, and shall cause
each Subsidiary to comply, in all material respects with all Requirements of
Law, including

                                       45
<PAGE>

Environmental Laws; provided, that neither the Borrower nor any Subsidiary shall
be required to comply with any such Requirement of Law so long as the validity
or application thereof is being contested in good faith and reserves have been
established with respect to such contest to the extent, if any, required by GAAP
or where such non-compliance would not reasonably be expected to have a Material
Adverse Effect, and obtain and maintain, and cause each Subsidiary to obtain and
maintain, all permits, licenses and approvals necessary to construct, own,
operate, use and maintain their respective properties and assets and to conduct
their respective businesses, except where the failure to obtain or maintain such
permit, license or approval would not reasonably be expected to have a Material
Adverse Effect.

         6.08 COMPLIANCE WITH MATERIAL CONTRACTUAL OBLIGATIONS. The Borrower
shall comply, and shall cause each Subsidiary to comply, with all Contractual
Obligations except where failure to so comply would not reasonably be expected
to have a Material Adverse Effect.

         6.09 INSPECTION OF PROPERTY AND BOOKS AND RECORDS. (a) The Borrower
shall keep or cause to be kept, and shall cause each Subsidiary to keep or cause
to be kept, adequate records and book of account in which complete entries are
to be made reflecting its business and financial transactions and as required by
applicable rules and regulations of any Governmental Authority having
jurisdiction over the Borrower or any Subsidiary or the transactions
contemplated by this Agreement. Such books of account shall be kept in a manner
consistent with GAAP if so kept on the date hereof. The Borrower shall permit,
and shall cause each Subsidiary to permit, the Administrative Agent or the
Lenders or their representatives at any reasonable time and from time to time at
the request of the Administrative Agent, to visit and inspect any of their
respective properties, to examine the respective corporate, financial and
operating records, and, subject to the confidentiality provisions contained in
Section 10.08 of this Agreement, make copies thereof or abstracts therefrom, and
to discuss their respective affairs, finances and accounts with their respective
officers, all at such reasonable times during normal business hours and as often
as may be reasonably desired, upon prior notice to the Borrower of at least 24
hours in advance; provided, however, that when an Event of Default exists the
Administrative Agent or any Lender may take the actions specified in this
sentence at any times during normal business hours and without advance notice.
One or more officers, employees or representatives of the Borrower may accompany
the Administrative Agent or a Lender or their respective representatives when
making any visit or inspection described in the preceding sentence.

         (b) Neither the Administrative Agent nor any Lender has any duty to
visit or inspect the Borrower's or any Subsidiary's properties or to examine or
copy such records and neither the Administrative Agent nor any Lender shall
incur any obligation or liability by reason of not making any such visit or
inspection. In the event that the Administrative Agent or any Lender shall do
any of the foregoing, it will be acting solely for the purposes of protecting
the Administrative Agent or such Lender and preserving its rights under this
Agreement. Neither the Borrower nor any other party is entitled to rely on any
inspection or other inquiry by the Administrative Agent or any Lender. Neither
the Administrative Agent nor any Lender owes any duty of care to protect the
Borrower or any other party against, or to inform the Borrower or any other
party of, any adverse condition that may be observed as affecting the Borrower's
or any Subsidiary's properties or business. The Administrative Agent or any
Lender may in its

                                       46
<PAGE>

discretion disclose to the Borrower or any other Person any findings made as a
result of, or in connection with, any inspection of any such properties or
records.

         6.10 MAINTENANCE OF PROPERTIES. The Borrower will, and will cause each
of its Subsidiaries to, keep and maintain all property material to the conduct
of its business in good working order and condition, ordinary wear and tear
excepted.

         6.11 USE OF PROCEEDS. The Borrower will use the proceeds of the
Borrowings for working capital, capital expenditures, and other lawful general
corporate purposes not in contravention of Sections 7.01(i) or (k), any Law or
of any Loan Document.

                                  ARTICLE VII.
                               NEGATIVE COVENANTS

         So long as any Lender shall have any Commitment hereunder, or any
Borrowing or other Obligation shall remain unpaid or unsatisfied, unless the
Required Lenders waive compliance in writing:

         7.01 NEGATIVE COVENANTS APPLICABLE TO THE BORROWER AND SUBSIDIARIES.
The Borrower shall not, and shall not suffer or permit any Subsidiary to,
directly or indirectly do any of the following:

         (a) Limitation on Liens. The Borrower will not, and will not permit any
of its Subsidiaries to, directly or indirectly, incur or suffer to exist any
Lien on or with respect to any asset or property of the Borrower or such
Subsidiary, whether now owned or hereafter acquired, or any interest therein or
any income or profits therefrom, except the following (collectively, "Permitted
Liens", and individually, a "Permitted Lien"):

                  (i) Liens listed on Schedule 7.01 existing on the date hereof;

                  (ii) Liens on property existing at the time of acquisition
         thereof or Liens affecting property of a Person existing at the time it
         becomes a Subsidiary of the Borrower or at the time it is merged into
         or consolidated with the Borrower or a Subsidiary of the Borrower;
         provided, however, that, in either case, such Liens were not granted in
         contemplation of such acquisition or in contemplation of the
         transaction pursuant to which such Person became a Subsidiary; and
         provided further that in either case, such Liens do not extend to or
         cover any property of the Borrower or of any of its Subsidiaries other
         than the property that secured the acquired Indebtedness prior to the
         time such Indebtedness became Indebtedness of the Borrower or a
         Subsidiary;

                  (iii) Liens on property securing Indebtedness incurred prior
         to, at the time of, or within 12 months after the acquisition thereof
         for the purpose of financing all or part of the purchase price thereof,
         provided that such Liens do not extend to or cover any other property
         of the Borrower or any Subsidiary and the Indebtedness secured thereby
         was incurred to pay, and does not exceed, the purchase price thereof;

                                       47
<PAGE>

                  (iv) Liens on any improvements to property securing
         Indebtedness incurred to provide funds for all or part of the cost of
         such improvements in a principal amount not exceeding the cost of
         acquisition or construction of such improvements and incurred within 12
         months after completion of such improvements or construction, provided
         that such Liens do not extend to or cover any property of the Borrower
         or any Subsidiary other than such improvements;

                  (v) Liens to government entities granted to secure pollution
         control or industrial revenue bond financings, which Liens in each
         financing transaction cover only the property the acquisition of which,
         or the construction of which, was financed by such financing, and
         property related thereto;

                  (vi) Liens which secure Indebtedness (A) owing by a Subsidiary
         of the Borrower to the Borrower or (B) owing by one Subsidiary to a
         Wholly-Owned Subsidiary;

                  (vii) Liens imposed by law, including mechanics',
         materialmen's, carriers' or other like Liens, arising in the ordinary
         course of business, which are not overdue by a period of more than 45
         days or which are being contested in good faith and by appropriate
         proceedings diligently conducted;

                  (viii) any Lien incurred or deposits to secure the performance
         of surety bonds incurred in the ordinary course of business consistent
         with past practice, provided that such Liens shall cover only the
         Borrower's or its Subsidiary's interests in and relating to the
         contract underlying the transaction for which such surety bonds were
         issued;

                  (ix) any Lien incidental to the normal conduct of the business
         of the Borrower or any Subsidiary or the ownership of its property or
         the conduct of the ordinary course of its business, including (A)
         zoning restrictions, easements, rights of way, reservations,
         restrictions on the use of real property and other minor irregularities
         of title, (B) rights of lessees under leases, (C) rights of collecting
         banks having rights of setoff, revocation, refund or chargeback with
         respect to money or instruments of the Borrower or any Subsidiary on
         deposit with or in the possession of such banks, (D) Liens to secure
         the performance of statutory obligations, tenders, bids, leases,
         progress payments, performance or return-of-money bonds, performance or
         other similar bonds or other obligations of a similar nature incurred
         in the ordinary course of business, (E) Liens required by any contract
         or statute in order to permit the Borrower or a Subsidiary of the
         Borrower to perform any contract or subcontract made by it with or
         pursuant to the requirements of a governmental entity, and (F) "first
         purchaser" Liens on crude oil, in each case which are not incurred in
         connection with the borrowing of money, the obtaining of advances or
         credit or the payment of the deferred purchase price of Property and
         which do not in the aggregate impair the use of property in the
         operation of the business of the Borrower and its Subsidiaries taken as
         a whole;

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<PAGE>

                  (x) Liens for taxes not yet due or which are being contested
         in good faith by appropriate proceedings, so long as reserves have been
         established to the extent required by GAAP;

                  (xi) Liens on cash or cash equivalents securing obligations in
         respect of Swap Contracts, the value of which collateral at any time
         may not exceed $25,000,000;

                  (xii) any Lien granted by the Borrower or any Subsidiary on
         its Receivables with regard to any ownership or security interest under
         any Receivables Purchase Facility; provided that the balance of such
         Receivables does not at any time exceed in the aggregate an amount
         equal to the greater of (i) 5% of net sales of the Borrower and its
         consolidated Subsidiaries during the four Fiscal Quarter period ending
         on the last day of the most recent Fiscal Quarter for which the
         Borrower has delivered financial statements pursuant to Section 6.01(a)
         or (b), and (ii) $400,000,000;

                  (xiii) Liens on cash or cash equivalents created or existing
         to secure stay or appeal bonds or otherwise resulting from any
         litigation or legal proceeding which are being contested in good faith
         by appropriate action promptly initiated and diligently conducted,
         including the Lien of any judgment; provided, however, that the
         aggregate amount secured by all such Liens does not exceed $25 million;

                  (xiv) any Lien granted by CRCCLP on the real estate upon which
         CRCCLP's Corpus Christi refinery is located arising from the Corpus
         Christi Refinery West Plant Lease;

                  (xv) Liens securing any extension, renewal, replacement or
         refinancing of Indebtedness secured by any Lien referred to in the
         foregoing clauses (i), (ii), (iii), (iv), (v), and (xiv); provided,
         however, that

                           (A) such new Lien shall be limited to all or part of
                  the same property that secured the original Lien (plus
                  improvements on such property) and

                           (B) the amount secured by such Lien at such time is
                  not increased to any amount greater than the amount
                  outstanding at the time of such renewal, replacement or
                  refinancing;

                  (xvi) Liens on assets or property of the Borrower or a
         Subsidiary, other than a Principal Property, in connection with
         Synthetic Leases pursuant to which, for financial accounting purposes,
         the Borrower or a Subsidiary is the lessee;

                  (xvii) Liens on cash collateral securing letter of credit
         reimbursement obligations pursuant to Section 2.04(g) of the Three-Year
         Credit Agreement and any renewals, extensions, amendments and
         restatements thereof or created under substantially similar provisions
         of any credit agreement entered into in replacement for the Three-Year
         Credit Agreement; and

                                       49
<PAGE>

                  (xviii) Liens not otherwise permitted by the provisions of
         this Section 7.01(a) securing indebtedness in an aggregate principal
         amount at any time outstanding for the Borrower and its Subsidiaries
         not in excess of 10% of Net Worth of the Borrower and its Subsidiaries;
         provided, however, that such Liens do not encumber (A) the Principal
         Properties, (B) any right, title or interest of the Borrower or any
         Subsidiary in, to, or under any Key Contract, or (C) any shares of
         capital stock or other equity interests in any Subsidiary that,
         directly or indirectly either (1) owns, leases or has material contract
         rights in respect of any Principal Property or (2) is a party to a Key
         Contract.

No Lien pursuant to clauses (ii), (iii) or (iv) of this Section 7.01(a) (and no
Lien pursuant to clause (xv) of this Section 7.01(a) which secures refinancing,
renewal, replacement or refinancing of Indebtedness secured by any Lien referred
to in clauses (ii), (iii), or (iv)) shall cover any part of the Principal
Properties, any interest in a Key Contract or any shares of capital stock or
other equity interests in any Subsidiary that, directly or indirectly either (A)
owns, leases or has material contract rights in respect of any Principal
Property or (B) is a party to a Key Contract. No Lien pursuant to clause (v) of
this Section 7.01(a) (and no Lien pursuant to clause (xv) of this Section
7.01(a) which secures refinancing, renewal, replacement or refinancing of
Indebtedness secured by any Lien referred to in clause (v)) shall secure any
portion of a Principal Property other than the portion of the property the
acquisition of which or the construction of which was financed by the relevant
bond financing.

         (b) Consolidations and Mergers; Sales of Assets. The Borrower shall
not, and shall not permit any Subsidiary to:

                  (i) be a party to any merger or consolidation, except that, so
         long as no Default or Event of Default then exists or would exist
         immediately after giving effect thereto or would result therefrom, (A)
         the Borrower may merge with any other Person, provided that the
         Borrower is the survivor of such merger and is a Domestic corporation,
         and (B) any Wholly-Owned Subsidiary of the Borrower may merge or
         consolidate into the Borrower or with or into any other Wholly-Owned
         Subsidiary of the Borrower;

                  (ii) sell all or substantially all of the assets of the
         Borrower and its Subsidiaries, taken as a whole, whether in one
         transaction or a series of transactions;

                  (iii) sell, transfer, convey or lease the Principal Properties
         other than in connection with any Permitted Lien granted thereon
         pursuant to Section 7.01(a)(v) and other than the sale of all or any
         portion of the Principal Properties pursuant to one or more
         Dispositions permitted pursuant to clause (v) of this subsection
         7.01(b);

                  (iv) sell, transfer, assign or convey (other than any
         disposition to the Borrower or any Wholly-Owned Subsidiary) any shares
         of capital stock or other equity interests in any Subsidiary that, at
         the time of such sale, transfer, assignment or conveyance, directly or
         indirectly either (A) owns, leases or has material contract rights in
         respect of any Principal Property or (B) is a party to a Key Contract;
         or

                                       50
<PAGE>

                  (v) sell, transfer, assign or convey any assets or any shares
         of capital stock of or other equity interests in any Subsidiary
         (collectively, a "Disposition") if, on the day on which such proposed
         Disposition is to occur, the aggregate book value (at the time of the
         proposed disposition thereof) of such assets, shares or equity
         interests (as the case may be), when added to the aggregate book value
         (at the time or times of the disposition thereof) of all other assets,
         shares or equity interests disposed of by the Borrower and its
         Subsidiaries under this clause (v) on or after the Closing Date exceeds
         20% of the aggregate book value of the assets of the Borrower and its
         Subsidiaries as of the date of the most recent balance sheet of the
         Borrower delivered pursuant to Section 6.01(a) or (b); provided that,
         if concurrently with any Disposition made pursuant to this clause (v)
         or within one year thereof, all or substantially all of the net
         proceeds of such Disposition are either

                           (A) reinvested (whether by acquisition, improvement,
                  repair, construction or otherwise) in assets related to the
                  business of the Borrower or any Subsidiary, or

                           (B) applied (1) prior to the Stated Maturity Date to
                  repay Loans and reduce the Aggregate Commitment (it being
                  understood that the Borrower will repay Loans hereunder in
                  such principal amount such that the aggregate principal amount
                  of all Loans hereunder does not exceed the Aggregate
                  Commitment hereunder as so reduced), and (2) subsequent to the
                  Stated Maturity Date, repay the amount then outstanding under
                  the Term Loans, or

                           (C) applied ratably (1) in the manner set forth in
                  clause (B) above and (2) to repay Loans under the Three-Year
                  Credit Agreement and reduce the Aggregate Commitment (as
                  defined in the Three-Year Credit Agreement) pursuant to the
                  Three-Year Credit Agreement (it being understood that the
                  Borrower will repay Loans and L/C Borrowings thereunder in
                  such principal amount as is required such that the sum of the
                  Outstanding Amount of all Loans thereunder, whether Committed
                  Loans, Swing Line Loans or Bid Loans, plus the Outstanding
                  Amount of all Letter of Credit Obligations outstanding after
                  such repayment does not exceed the Aggregate Commitment
                  thereunder as so reduced), or

                           (D) applied ratably (1) in the manner specified in
                  clause (B) above and (2) to repay other Indebtedness then
                  outstanding (other than Indebtedness which is subordinated to
                  the Obligations) (including Indebtedness evidenced by the
                  Loans made pursuant to the Three-Year Credit Agreement, the
                  Private Placement Notes and the Senior Notes),

then such Disposition shall be disregarded for purposes of calculations pursuant
to this clause (v) from and after the time of such reinvestment or application.

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<PAGE>

         Nothing in this Section 7.01(b) shall prohibit the Borrower or any
Wholly-Owned Subsidiary from purchasing or otherwise acquiring the assets or
stock of any Wholly-Owned Subsidiary.

         (c) Investments. The Borrower shall not, and shall not permit any
Subsidiary to, make any Investments, except:

                  (i) Investments held by the Borrower or such Subsidiary in the
         form of cash equivalents or Short-Term Marketable Debt Securities;

                  (ii) advances to officers, directors and employees of the
         Borrower and Subsidiaries for travel, entertainment, relocation and
         analogous ordinary business purposes in accordance with law;

                  (iii) Investments of the Borrower in any Domestic Subsidiary
         and Investments of any Subsidiary in a Domestic Subsidiary;

                  (iv) Investments of the Borrower and of any Subsidiary in any
         Foreign Subsidiary after the Closing Date in an amount not to exceed a
         cumulative amount equal to 5% of the book value consolidated assets of
         the Borrower and its Subsidiaries as of the end of the most recent
         Fiscal Quarter for which the Borrower has delivered financial
         statements pursuant to Section 6.01(a) or (b);

                  (v) Investments consisting of extensions of credit by a
         Subsidiary to the Borrower provided that the obligations of the
         Borrower in respect of such extensions of credit must be subordinated
         to the Obligations on subordination terms satisfactory to the
         Administrative Agent;

                  (vi) Investments consisting of extensions of credit in the
         nature of accounts receivable or notes receivable arising from the
         granting of trade credit in the ordinary course of business, and
         Investments received in satisfaction or partial satisfaction thereof
         from financially troubled account debtors to the extent reasonably
         necessary in order to prevent or limit loss;

                  (vii) Guarantees of Indebtedness of Affiliates, to the extent
         permitted by Section 7.02 and, in the case of Guarantees by
         Subsidiaries, to the extent permitted by Section 7.01(d);

                  (viii) Investments as of the Closing Date in the entities set
         forth on Schedule 7.01(c);

                  (ix) Pass-Through Investments made after the Closing Date;

                  (x) Investments in LCR as follows: (A) Investments as of the
         Closing Date, (B) Pass-Through Investments made after the Closing Date,
         (C) Investments made after the Closing Date in an aggregate amount not
         to exceed the aggregate amount of cash

                                       52
<PAGE>

         dividends distributed after the Closing Date by LCR to the Borrower,
         and (D) additional Investments not to exceed $100,000,000 in the
         aggregate made after the Closing Date; and

                  (xi) other Investments made after the Closing Date in a
         cumulative amount not to exceed 10% of the book value consolidated
         assets of the Borrower and its Subsidiaries as of the end of the most
         recent Fiscal Quarter for which the Borrower has delivered financial
         statements pursuant to Section 6.01(a) or (b).

         (d) Indebtedness, Guarantees, and Preferred Stock of Subsidiaries.

                  (i) The Borrower shall not permit any Subsidiary to create,
         incur, assume or suffer to exist any Indebtedness or Guarantees, except
         (A) Indebtedness owed to the Borrower or to a Wholly-Owned Subsidiary,
         and (B) Indebtedness and Guarantees in a principal amount at any time
         outstanding not to exceed five percent of Net Worth as of the end of
         the most recent Fiscal Quarter for which financial statements have been
         delivered or are required to be delivered pursuant to Section 6.01(a)
         or (b).

                  (ii) The Borrower shall not permit any Subsidiary to issue any
         preferred stock or other preferred Equity Interest other than preferred
         stock or other preferred Equity Interest held by the Borrower or a
         Wholly-Owned Subsidiary.

         (e) Indebtedness of the Borrower to Subsidiaries and Affiliates.

                  (i) The Borrower shall not create, incur, assume or suffer to
         exist any Indebtedness owed to, or any Guarantee of any obligations of
         another Person owed to, a Subsidiary of or an Affiliate of the Borrower
         other than (i) Permitted Affiliate Subordinated Indebtedness, and (ii)
         other Indebtedness or Guarantees in an aggregate amount not to exceed
         $50,000,000 principal amount outstanding at any time.

                  (ii) While any Default or Event of Default exists, the
         Borrower will not make any principal or interest payments in respect of
         Permitted Affiliate Subordinated Indebtedness or in respect of any
         other Indebtedness owed to an Affiliate or to a Subsidiary of the
         Borrower.

         (f) Swap Contracts. The Borrower shall not, and shall not permit any
Subsidiary to, enter into Swap Contracts except in the ordinary course of
business for the purpose of directly managing risks associated with liabilities,
commitments, investments, assets, or property held or reasonably anticipated by
such Person, or changes in the value of securities issued by such Person.

         (g) No Conflicts. The Borrower shall not, and shall not permit any
Subsidiary to, enter into any material agreement containing any provision which
would be violated or breached by the performance of its obligations hereunder or
under any other Loan Document or any instrument or document delivered or to be
delivered by it hereunder or thereunder or in connection herewith or therewith.

                                       53
<PAGE>

         (h) Transactions with Affiliates. The Borrower shall not, and shall not
suffer or permit any Subsidiary to, enter into any material transaction or
series of transactions, whether or not in the ordinary course of business, with
any Affiliate other than on terms and conditions at least as favorable to the
Borrower or its Subsidiary as would be obtainable by the Borrower or such
Subsidiary at the time in a comparable arm's-length transaction with a Person
other than an Affiliate, or own, purchase or acquire any stock, obligations or
securities of, or any other interest in, or make any capital contribution to,
PDVSA or any Affiliate of PDVSA other than the Borrower or any Subsidiary;
provided, however, that nothing in this Section 7.01(h) shall be deemed to
prohibit any Affiliate Guarantee Transaction.

         (i) Use of Proceeds in an Unfriendly Takeover. The Borrower shall not,
and shall not permit any Subsidiary to, use the proceeds of any Loan to purchase
or otherwise acquire any publicly owned securities of another Person (or to
refinance any indebtedness incurred for such purpose) if following such
acquisition the Borrower and its Subsidiaries would own in excess of 15% of the
Voting Stock of such Person and either (i) such purchase or acquisition is
opposed by such Person's board of directors or other governing body or by a
shareholder or shareholders controlling more than 15% of the Voting Stock of
such Person, or (ii) the Borrower knows of facts or circumstances that would
make it likely that such purchase or other acquisition would be hostile or
unfriendly.

         (j) Sale Leaseback Transaction. The Borrower shall not, and shall not
permit any Subsidiary to, enter into any Sale Leaseback Transaction providing
for the sale of any portion of any Principal Property unless the book value (as
of the end of the fiscal quarter immediately preceding the date of such Sale
Leaseback Transaction) of the assets sold in connection with such Sale Leaseback
Transaction, when aggregated with the book value of all assets sold in
connection with all other Sale Leaseback Transactions pertaining to such
Principal Property, does not exceed an amount equal to 33-1/3% of the book value
of such Principal Property as of September 30, 2002. Any Sale Leaseback
Transaction permitted pursuant to the preceding sentence shall be treated as a
Disposition for purposes of Section 7.01(b)(v). The Borrower and its
Subsidiaries may enter into Sale Leaseback Transactions providing for the sale
of other assets and the leaseback of such assets to the Borrower or any
Subsidiary, provided that, any Sale Leaseback Transaction involving such a sale
shall be treated as a Disposition for purposes of Section 7.01(b)(v).

         (k) Restriction on Use of Proceeds. The Borrower shall not, and shall
not allow any Subsidiary to use the proceeds of any Loan, directly or
indirectly, to make or invest in any loan or advance to, or to purchase or
acquire any obligations or securities of, PDVSA or an Affiliate of PDVSA except
for the Borrower or any Subsidiary of the Borrower.

         (l) Nature of Business. The Borrower shall not, and shall not permit
any Subsidiary to, engage in any business or operations except those in which
the Borrower and its Subsidiaries are engaged on the date hereof or any related
business or operations.

         (m) Restrictive Agreements. The Borrower shall not, and shall not
permit any Subsidiary to, enter into any Contractual Obligation (other than this
Agreement or any other Loan Document) that limits the ability of any Subsidiary
to pay dividends or make other

                                       54
<PAGE>

distributions to, or to repay loans or advances to, the Borrower, or to transfer
property to the Borrower; provided, however, that this clause (m) shall not
prohibit (i) any negative pledge incurred or provided in favor of any holder of
Liens permitted under Section 7.01(a)(iii) or (iv) solely to the extent any such
negative pledge relates to the property secured by such Liens, or (ii)
limitations on Project Financing/Special Purpose Subsidiaries, provided that the
book value of the assets of such Subsidiaries does not at any time exceed five
percent (5%) of the consolidated book value of the assets of the Borrower and
Subsidiaries.

         (n) Key Contracts. The Borrower will not, and will not permit any of
its Subsidiaries to,

                  (i) amend, modify or waive any provision of any Key Contract
         or

                  (ii) terminate or assign any Key Contract prior to the end of
         its stated initial term,

if such amendment, modification, waiver assignment, or early termination or any
combination thereof would have a Material Adverse Effect.

         7.02 FINANCIAL COVENANTS.

         (a) Capitalization Ratio. The Borrower shall not permit its
Capitalization Ratio to be more than .55 to 1.00 at any time.

         (b) Indebtedness Interest Coverage Ratio. The Borrower shall not permit
the ratio of (i) EBITDA for the Computation Period to (ii) Interest Expense for
the Computation Period to be less than 3.00 to 1.00 at the end of any Fiscal
Quarter.

         (c) Minimum Net Worth. The Borrower shall not permit at any time Net
Worth to be less than $1,800,000,000 plus 50% of aggregate, cumulative Net
Income accruing for all Fiscal Quarters ending after June 30, 2002 for which Net
Income was positive.

                                  ARTICLE VIII.
                                EVENTS OF DEFAULT

         8.01 EVENT OF DEFAULT. Any of the following shall constitute an "Event
of Default":

         (a) Non-Payment. The Borrower fails to pay, (i) when and as required to
be paid herein, any amount of principal of any Loan, or (ii) within 5 days after
the same becomes due, any interest, fee or any other amount payable hereunder or
under any other Loan Document; or

         (b) Representation or Warranty. Any representation or warranty by the
Borrower made or deemed made herein, or in or under any other Loan Document or
in any written notice, report or certificate delivered pursuant hereto or
thereto is incorrect in any material respect on or as of the date made or deemed
made or reaffirmed, as the case may be; or

                                       55
<PAGE>

         (c) Specific Defaults. The Borrower fails to perform or observe any
term, covenant or agreement contained in any of Section 6.03(a), Section 6.04
(with respect to the Borrower's existence), Section 6.11, Section 7.01 (other
than Section 7.01(g) and 7.01(l)) or Section 7.02; or

         (d) Other Defaults. The Borrower fails to perform or observe any other
term, covenant condition or agreement contained in this Agreement or any other
Loan Document, (and not constituting an Event of Default under any other clause
of this Section 8.01) and such default shall continue unremedied for a period of
30 days; or

         (e) Non-Payment of Other Indebtedness. The Borrower or any Subsidiary
(i) fails to make any payment when due (whether by scheduled maturity, required
prepayment, acceleration or otherwise) in respect of any Material Debt (whether
due by scheduled maturity, required prepayment, acceleration, demand, or
otherwise) and such failure continues after the applicable grace or notice
period, if any, specified in the relevant document on the date of such failure;
or (ii) fails to perform or observe any other condition or covenant, or any
other event shall occur or condition exist, under any agreement or instrument
relating to any Material Debt, if, in any such event, the effect of such
failure, event or condition is to cause, or to permit the holder or holders
thereof or beneficiary or beneficiaries thereof (or a trustee or agent on behalf
of such holder or holders or beneficiary or beneficiaries) to cause (after the
expiration of any applicable grace period or notice period, if any, specified in
the relevant document on the date of such failure) such Material Debt, to become
due and payable or to be repurchased, defeased or redeemed prior to its
expressed maturity; or

         (f) Insolvency; Voluntary Proceedings. The Borrower or any Principal
Subsidiary (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, subject to
applicable grace periods, if any; (ii) makes an assignment for the benefit of
creditors, (iii) commences any Insolvency Proceeding with respect to itself; or
(iv) takes any action to effectuate or authorize any of the foregoing; or

         (g) Involuntary Proceedings. (i) Any involuntary Insolvency Proceeding
is commenced or filed against the Borrower or any Principal Subsidiary, and any
such proceeding or petition shall not be dismissed within 60 days after
commencement; (ii) the Borrower or any Principal Subsidiary 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 Principal Subsidiary acquiesces in the
appointment of a receiver, trustee, custodian, liquidator or similar person for
itself or a substantial portion of its property or business; or any receiver,
trustee, custodian, liquidator or similar person is appointed without the
application or consent of the Borrower or Principal Subsidiary and the
appointment continues undischarged or unstayed for 60 calendar days;

         (h) ERISA. If (i) any Reportable Event constituting grounds for the
termination of any Plan by the PBGC and the maximum amount of current liability
that may be asserted under Title IV of ERISA by reason of the termination of
such Plan and all other Plans with respect to which any such event has occurred,
shall exceed $10,000,000 or for the

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<PAGE>

appointment by the appropriate United States District Court of a trustee to
administer or liquidate any such Plan or Plans shall have occurred and be
continuing 30 days after written, telegraphic or telephonic notice to such
effect shall have been given to the Borrower by the PBGC and the maximum amount
of current liability that may be asserted under Title IV of ERISA by reason of
the termination of such Plan and all other Plans with respect to which any such
event has occurred, shall exceed $35,000,000, or (ii) any Plan shall be
terminated with Unfunded Vested Liabilities which could reasonably be expected
to have a Material Adverse Effect, or (iii) any contribution failure shall occur
with respect to a Plan sufficient to give rise to a Lien under Section 302(f) of
ERISA; or

         (i) Material Judgments. (i) One or more non-interlocutory judgments
(including judgments entered on arbitration awards) is entered against the
Borrower or any Subsidiary involving in the aggregate liability (to the extent
not covered by independent third-party insurance as to which the insurer does
not dispute coverage or effective indemnification by a third party acceptable to
the Required Lenders) exceeding $35,000,000, or (ii) any one or more
non-monetary non-interlocutory judgments that have, or could reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect,
and, in the case of clause (i) or (ii), the same shall not have been discharged
or execution thereof stayed pending appeal for a period of 30 days after the
entry thereof, or if after the expiration of any such stay, any writ or warrant
of attachment is levied in respect of such judgment or any creditor commences
enforcement proceedings, or within 60 days after the expiration of any such stay
such judgment shall not have been discharged; or

         (j) Invalidity of Loan Documents. Any Loan Document, at any time after
its execution and delivery and for any reason other than as expressly permitted
hereunder or satisfaction in full of all the Obligations, ceases to be in full
force and effect; or the Borrower or any other Person contests the validity or
enforceability of any Loan Document; or the Borrower denies that it has any or
further liability or obligation under any Loan Document, or takes action to
revoke, terminate or rescind any Loan Document; or

         (k) Change of Control. There occurs any Change of Control, unless prior
written consent for such lesser percentage ownership is obtained from the
Required Lenders; or

         (l) Other Material Obligations. Default in the payment when due, or in
the performance or observance of, any material obligation of, or condition
agreed to by, the Borrower or any Subsidiary with respect to any material
purchase or lease of goods or services (except only to the extent that the
existence of any such default is being contested by the Borrower or such
Subsidiary in good faith and by appropriate proceedings) if such default would
reasonably be expected to have a Material Adverse Effect; or

         (m) Default of Three-Year Credit Agreement. Any Event of Default shall
occur and be continuing pursuant to the Three-Year Credit Agreement.

         8.02 REMEDIES UPON EVENT OF DEFAULT. If any Event of Default occurs and
is continuing, the Administrative Agent shall, at the request of, or may, with
the consent of, the Required Lenders, take any or all of the following actions:

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         (a) declare the commitment of each Lender to make Loans to be
terminated, whereupon such commitments and obligation shall be terminated;

         (b) 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

         (c) exercise on behalf of itself and the Lenders all rights and
remedies available to it and the Lenders under the Loan Documents or applicable
law;

provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to the Borrower under the Bankruptcy Code of the
United States, the obligation of each Lender to make Loans shall automatically
terminate, the unpaid principal amount of all outstanding Loans and all interest
and other amounts as aforesaid shall automatically become due and payable, in
each case without further act of the Administrative Agent or any Lender.

         8.03 APPLICATION OF FUNDS. After the exercise of remedies provided for
in Section 8.02 (or after the Loans have automatically become immediately due
and payable as set forth in the proviso to Section 8.02), any amounts received
on account of the Obligations shall be applied by the Administrative Agent in
the following order:

         First, to payment of that portion of the Obligations constituting fees,
indemnities, expenses and other amounts (including Attorney Costs and amounts
payable under Article III) payable to the Administrative Agent in its capacity
as such;

         Second, to payment of that portion of the Obligations constituting
fees, indemnities and other amounts (other than principal and interest) payable
to the Lenders (including Attorney Costs and amounts payable under Article III),
ratably among them in proportion to the amounts described in this clause Second
payable to them;

         Third, to payment of that portion of the Obligations constituting
accrued and unpaid interest on the Loans, ratably among the Lenders in
proportion to the respective amounts described in this clause Third payable to
them;

         Fourth, to payment of that portion of the Obligations constituting
unpaid principal of the Loans, ratably among the Lenders in proportion to the
respective amounts described in this clause Fourth held by them; and

         Last, the balance, if any, after all of the Obligations have been
indefeasibly paid in full, to the Borrower or as otherwise required by Law.

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                                   ARTICLE IX.
                              ADMINISTRATIVE AGENT

         9.01     APPOINTMENT AND AUTHORIZATION OF ADMINISTRATIVE AGENT.

         Each Lender hereby irrevocably appoints, designates and authorizes the
Administrative Agent 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 herein or in any other Loan Document, the Administrative
Agent shall not have any duties or responsibilities, except those expressly set
forth herein, nor shall the Administrative Agent have or be deemed to have any
fiduciary relationship with any Lender or participant, 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
Administrative Agent. Without limiting the generality of the foregoing sentence,
the use of the term "agent" herein and in the other Loan Documents with
reference to the Administrative Agent 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 used merely as a matter of market custom,
and is intended to create or reflect only an administrative relationship between
independent contracting parties.

         9.02 DELEGATION OF DUTIES. The Administrative Agent 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 and
other consultants or experts concerning all matters pertaining to such duties.
The Administrative Agent shall not be responsible for the negligence or
misconduct of any agent or attorney-in-fact that it selects in the absence of
gross negligence or willful misconduct.

         9.03 LIABILITY OF ADMINISTRATIVE AGENT. No Agent-Related Person 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 in connection with its duties expressly set forth herein), or (b) be
responsible in any manner to any Lender or participant for any recital,
statement, representation or warranty made by the Borrower or any officer
thereof, contained herein or in any other Loan Document, or in any certificate,
report, statement or other document referred to or provided for in, or received
by the Administrative Agent under or in connection with, this Agreement or any
other Loan Document, 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 Lender or participant 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 Affiliate thereof.

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<PAGE>

         9.04     RELIANCE BY ADMINISTRATIVE AGENT.

         (a) The Administrative Agent shall be entitled to rely, and shall be
fully protected in relying, upon any writing, communication, signature,
resolution, representation, notice, consent, certificate, affidavit, letter,
telegram, facsimile, telex or telephone message, electronic mail 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 or Persons,
and upon advice and statements of legal counsel (including counsel to the
Borrower), independent accountants and other experts selected by the
Administrative Agent. The Administrative Agent shall be fully justified in
failing or refusing to take any action under any Loan Document unless it shall
first receive such advice or concurrence of the Required Lenders as it deems
appropriate and, if it so requests, 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 or continuing to take any such action. The
Administrative Agent 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 the Required Lenders (or such greater
number of Lenders as may be expressly required hereby in any instance) and such
request and any action taken or failure to act pursuant thereto shall be binding
upon all the Lenders.

         (b) For purposes of determining compliance with the conditions
specified in Section 4.01, each Lender that has signed this Agreement shall be
deemed to have consented to, approved or accepted or to be satisfied with, each
document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless the Administrative Agent shall
have received notice from such Lender prior to the proposed Closing Date
specifying its objection thereto.

         9.05 NOTICE OF DEFAULT. The Administrative Agent 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 Lenders,
unless the Administrative Agent shall have received written notice from a Lender
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 Lenders of its receipt of any such notice.
The Administrative Agent shall take such action with respect to such Default or
Event of Default as may be directed by the Required Lenders in accordance with
Article VIII; provided, however, that unless and until the Administrative Agent
has received any such direction, 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 or in the best
interest of the Lenders.

         9.06 CREDIT DECISION; DISCLOSURE OF INFORMATION BY ADMINISTRATIVE
AGENT. Each Lender acknowledges that no Agent-Related Person has made any
representation or warranty to it, and that no act by the Administrative Agent
hereafter taken, including any consent to and acceptance of any assignment or
review of the affairs of the Borrower or any Affiliate thereof, shall be deemed
to constitute any representation or warranty by any Agent-Related Person to any
Lender as to any matter, including whether Agent-Related Persons have disclosed
material

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<PAGE>

information in their possession. Each Lender represents to the Administrative
Agent 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, and all applicable bank or other 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
Lender 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 required to be furnished to the Lenders by
the Administrative Agent herein, the Administrative Agent shall not have any
duty or responsibility to provide any Lender with any credit or other
information concerning the business, prospects, operations, property, financial
and other condition or creditworthiness of the Borrower or any of its Affiliates
which may come into the possession of any Agent-Related Person.

         9.07 INDEMNIFICATION OF ADMINISTRATIVE AGENT. Whether or not the
transactions contemplated hereby are consummated, the Lenders shall indemnify
upon demand each Agent-Related Person (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, and hold harmless each Agent-Related Person from and against any
and all Indemnified Liabilities incurred by it; provided, however, that no
Lender shall be liable for the payment to any Agent-Related Person of any
portion of such Indemnified Liabilities to the extent determined in a final,
nonappealable judgment by a court of competent jurisdiction to have resulted
from such Agent-Related Person's own gross negligence or willful misconduct;
provided, however, that no action taken in accordance with the directions of the
Required Lenders shall be deemed to constitute gross negligence or willful
misconduct for purposes of this Section. Without limitation of the foregoing,
each Lender shall reimburse the Administrative Agent upon demand for its ratable
share of any costs or out-of-pocket expenses (including Attorney Costs) incurred
by the Administrative Agent in connection with the preparation, execution,
delivery, administration, modification, amendment or enforcement (whether
through negotiations, legal proceedings or otherwise) of, or legal advice in
respect of rights or responsibilities under, this Agreement, any other Loan
Document, or any document contemplated by or referred to herein, to the extent
that the Administrative Agent is not reimbursed for such expenses by or on
behalf of the Borrower. The undertaking in this Section shall survive
termination of the Aggregate Commitments, the payment of all other Obligations
and the resignation of the Administrative Agent.

         9.08 ADMINISTRATIVE AGENT IN ITS INDIVIDUAL CAPACITY. Bank of America
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 each of the Borrower and its Affiliates as though Bank of America were not
the Administrative Agent hereunder and without notice to or consent of the
Lenders. The Lenders acknowledge that, pursuant to such activities, Bank of
America or its

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<PAGE>

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 Affiliate) and acknowledge that the Administrative
Agent shall be under no obligation to provide such information to them. With
respect to its Loans, Bank of America shall have the same rights and powers
under this Agreement as any other Lender and may exercise such rights and powers
as though it were not the Administrative Agent, and the terms "Lender" and
"Lenders" include Bank of America in its individual capacity.

         9.09 SUCCESSOR ADMINISTRATIVE AGENT. The Administrative Agent may
resign as Administrative Agent upon 30 days' notice to the Lenders. If the
Administrative Agent resigns under this Agreement, the Required Lenders shall
appoint from among the Lenders a successor administrative agent for the Lenders,
which successor administrative agent shall be consented to by the Borrower at
all times other than during the existence of an Event of Default (which consent
of the Borrower shall not be unreasonably withheld or delayed). If no successor
administrative agent is appointed prior to the effective date of the resignation
of the Administrative Agent, the Administrative Agent may appoint, after
consulting with the Lenders and the Borrower, a successor administrative agent
from among the Lenders. Upon the acceptance of its appointment as successor
administrative agent hereunder, the Person acting as such successor
administrative agent shall succeed to all the rights, powers and duties of the
retiring Administrative Agent, and the term "Administrative Agent" shall mean
such successor administrative 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 IX and Sections 10.04 and
10.05 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
administrative agent has accepted appointment as Administrative Agent by the
date which is 30 days following a retiring Administrative Agent's notice of
resignation, the retiring Administrative Agent's resignation shall nevertheless
thereupon become effective and the Lenders shall perform all of the duties of
the Administrative Agent hereunder until such time, if any, as the Required
Lenders appoint a successor agent as provided for above.

         9.10 ADMINISTRATIVE AGENT MAY FILE PROOFS OF CLAIM. In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Borrower, the Administrative Agent (irrespective of
whether the principal of any Loan shall then be due and payable as herein
expressed or by declaration or otherwise and irrespective of whether the
Administrative Agent shall have made any demand on the Borrower) shall be
entitled and empowered, by intervention in such proceeding or otherwise

         (a) to file and prove a claim for the whole amount of the principal and
interest owing and unpaid in respect of the Loans, and all other Obligations
that are owing and unpaid and to file such other documents as may be necessary
or advisable in order to have the claims of the Lenders and the Administrative
Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders and the Administrative Agent and their
respective agents and counsel and all other amounts due the Lenders and the
Administrative Agent under Sections 2.07 and 10.04) allowed in such judicial
proceeding; and

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<PAGE>

         (b) to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Lender to make such payments to the Administrative Agent and, in the event
that the Administrative Agent shall consent to the making of such payments
directly to the Lenders, to pay to the Administrative Agent any amount due for
the reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.07 and 10.04.

         Nothing contained herein shall be deemed to authorize the
Administrative Agent to authorize or consent to or accept or adopt on behalf of
any Lender any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations or the rights of any Lender or to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such
proceeding.

         9.11 OTHER AGENTS; ARRANGERS AND MANAGERS. None of the Lenders or other
Persons identified on the facing page or signature pages of this Agreement as a
"syndication agent," "documentation agent," "co-book manager," or "joint lead
manager" shall have any right, power, obligation, liability, responsibility or
duty under this Agreement other than, in the case of such Lenders, those
applicable to all Lenders as such. Without limiting the foregoing, none of the
Lenders or other Persons so identified shall have or be deemed to have any
fiduciary relationship with any Lender. Each Lender acknowledges that it has not
relied, and will not rely, on any of the Lenders or other Persons so identified
in deciding to enter into this Agreement or in taking or not taking action
hereunder.

                                   ARTICLE X.
                                  MISCELLANEOUS

         10.01 AMENDMENTS, ETC. No amendment or waiver of any provision of this
Agreement or any other Loan Document, and no consent to any departure by the
Borrower therefrom, shall be effective unless in writing signed by the Required
Lenders and the Borrower, and acknowledged by the Administrative Agent, and each
such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given; provided, however, that no such amendment,
waiver or consent shall:

         (a) waive any condition set forth in Section 4.01(a) without the
written consent of each Lender;

         (b) extend or increase the Commitment of any Lender (or reinstate any
Commitment terminated pursuant to Section 8.02) without the written consent of
such Lender;

         (c) postpone any date fixed by this Agreement or any other Loan
Document for any payment of principal, interest, fees or other amounts due to
the Lenders (or any of them)

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hereunder or under any other Loan Document without the written consent of each
Lender directly affected thereby;

         (d) reduce the principal of, or the rate of interest specified herein
on, any Loan, or (subject to clause (iii) of the second proviso to this Section
10.01) any fees or other amounts payable hereunder or under any other Loan
Document without the written consent of each Lender directly affected thereby;
provided, however, that only the consent of the Required Lenders shall be
necessary (i) to amend the definition of "Default Rate" or to waive any
obligation of the Borrower to pay interest at the Default Rate or (ii) to amend
any financial covenant hereunder (or any defined term used therein) even if the
effect of such amendment would be to reduce the rate of interest on any Loan or
to reduce any fee payable hereunder;

         (e) change Section 2.11 or Section 8.03 in a manner that would alter
the pro rata sharing of payments required thereby without the written consent of
each Lender; or

         (f) change any provision of this Section or the definition of "Required
Lenders" or any other provision hereof specifying the number or percentage of
Lenders required to amend, waive or otherwise modify any rights hereunder or
make any determination or grant any consent hereunder, without the written
consent of each Lender;

and, provided further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the Administrative Agent in addition to the Lenders
required above, affect the rights or duties of the Administrative Agent under
this Agreement or any other Loan Document; (ii) Section 10.07(h) may not be
amended, waived or otherwise modified without the consent of each Granting
Lender all or any part of whose Loans are being funded by an SPC at the time of
such amendment, waiver or other modification; and (iii) the Fee Letter may be
amended, or rights or privileges thereunder waived, in a writing executed only
by the parties thereto. Notwithstanding anything to the contrary herein, no
Defaulting Lender shall have any right to approve or disapprove any amendment,
waiver or consent hereunder, except that the Commitment of such Lender may not
be increased or extended without the consent of such Lender.

         10.02 NOTICES AND OTHER COMMUNICATIONS; FACSIMILE COPIES.

         (a) General. Unless otherwise expressly provided herein, all notices
and other communications provided for hereunder shall be in writing (including
by facsimile transmission). All such written notices shall be mailed, faxed or
delivered to the applicable address, facsimile number or (subject to subsection
(c) below) electronic mail address, and all notices and other communications
expressly permitted hereunder to be given by telephone shall be made to the
applicable telephone number, as follows:

                  (i) if to the Borrower or the Administrative Agent, to the
         address, facsimile number, electronic mail address or telephone number
         specified for such Person on Schedule 10.02 or to such other address,
         facsimile number, electronic mail address or telephone number as shall
         be designated by such party in a notice to the other parties; and

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<PAGE>

                  (ii) if to any other Lender, to the address, facsimile number,
         electronic mail address or telephone number specified in its
         Administrative Questionnaire or to such other address, facsimile
         number, electronic mail address or telephone number as shall be
         designated by such party in a notice to the Borrower and the
         Administrative Agent.

All such notices and other communications shall be deemed to be given or made
upon the earlier to occur of (i) actual receipt by the relevant party hereto and
(ii) (A) if delivered by hand or by courier, when signed for by or on behalf of
the relevant party hereto; (B) if delivered by mail, four Business Days after
deposit in the mails, postage prepaid; (C) if delivered by facsimile, when sent
and receipt has been confirmed by telephone; and (D) if delivered by electronic
mail (which form of delivery is subject to the provisions of subsection (c)
below), when delivered; provided, however, that notices and other communications
to the Administrative Agent pursuant to Article II shall not be effective until
actually received by the Administrative Agent. In no event shall a voicemail
message be effective as a notice, communication or confirmation hereunder.

         (b) Effectiveness of Facsimile Documents and Signatures. Loan Documents
may be transmitted and/or signed by facsimile. The effectiveness of any such
documents and signatures shall, subject to applicable Law, have the same force
and effect as manually-signed originals and shall be binding on the Borrower,
the Administrative Agent and the Lenders. The Administrative Agent may also
require that any such documents and signatures be confirmed by a manually-signed
original thereof; provided, however, that the failure to request or deliver the
same shall not limit the effectiveness of any facsimile document or signature.

         (c) Limited Use of Electronic Mail. Electronic mail and Internet and
intranet websites may be used only to distribute routine communications, such as
financial statements and other information as provided in Section 6.02, and to
distribute Loan Documents for execution by the parties thereto, and may not be
used for any other purpose.

         (d) Reliance by Administrative Agent and Lenders. The Administrative
Agent and the Lenders shall be entitled to rely and act upon any notices
(including telephonic Loan Notices) purportedly given by or on behalf of the
Borrower even if (i) such notices were not made in a manner specified herein,
were incomplete or were not preceded or followed by any other form of notice
specified herein, or (ii) the terms thereof, as understood by the recipient,
varied from any confirmation thereof. The Borrower shall indemnify each
Agent-Related Person and each Lender from all losses, costs, expenses and
liabilities resulting from the reliance by such Person on each notice
purportedly given by or on behalf of the Borrower. All telephonic notices to and
other communications with the Administrative Agent may be recorded by the
Administrative Agent, and each of the parties hereto hereby consents to such
recording.

         10.03 NO WAIVER; CUMULATIVE REMEDIES. No failure by any Lender or the
Administrative Agent to exercise, and no delay by any such Person in exercising,
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. The rights,

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<PAGE>

remedies, powers and privileges herein provided are cumulative and not exclusive
of any rights, remedies, powers and privileges provided by law.

         10.04 ATTORNEY COSTS, EXPENSES AND TAXES. The Borrower agrees (a) to
pay or reimburse the Administrative Agent for all costs and expenses incurred in
connection with the development, preparation, negotiation and execution of this
Agreement and the other Loan Documents and any amendment, waiver, consent or
other modification of the provisions hereof and thereof (whether or not the
transactions contemplated hereby or thereby are consummated), and the
consummation and administration of the transactions contemplated hereby and
thereby, including all Attorney Costs, and (b) to pay or reimburse the
Administrative Agent and each Lender for all costs and expenses incurred in
connection with the enforcement, attempted enforcement, or preservation of any
rights or remedies under this Agreement or the other Loan Documents (including
all such costs and expenses incurred during any "workout" or restructuring in
respect of the Obligations and during any legal proceeding, including any
proceeding under any Debtor Relief Law), including all Attorney Costs. The
foregoing costs and expenses shall include all search, filing, recording, title
insurance and appraisal charges and fees and taxes related thereto, and other
out-of-pocket expenses incurred by the Administrative Agent and the cost of
independent public accountants and other outside experts retained by the
Administrative Agent or any Lender. All amounts due under this Section 10.04
shall be payable within ten Business Days after demand therefor. The agreements
in this Section shall survive the termination of the Aggregate Commitments and
repayment of all other Obligations.

         10.05 INDEMNIFICATION BY THE BORROWER. Whether or not the transactions
contemplated hereby are consummated, the Borrower shall indemnify and hold
harmless each Agent-Related Person, each Lender and their respective Affiliates,
directors, officers, employees, counsel, agents and attorneys-in-fact
(collectively the "Indemnitees") from and against any and all liabilities,
obligations, losses, damages, penalties, claims, demands, actions, judgments,
suits, costs, expenses and disbursements (including Attorney Costs) of any kind
or nature whatsoever which may at any time be imposed on, incurred by or
asserted against any such Indemnitee in any way relating to or arising out of or
in connection with (a) the execution, delivery, enforcement, performance or
administration of any Loan Document or any other agreement, letter or instrument
delivered in connection with the transactions contemplated thereby or the
consummation of the transactions contemplated thereby, (b) any Commitment or
Loan or the use or proposed use of the proceeds therefrom, (c) any actual or
alleged presence or release of Hazardous Materials on or from any property
currently or formerly owned or operated by the Borrower or any Subsidiary, or
any Environmental Liability related in any way to the Borrower or any
Subsidiary, or (d) any actual or prospective claim, litigation, investigation or
proceeding relating to any of the foregoing, whether based on contract, tort or
any other theory (including any investigation of, preparation for, or defense of
any pending or threatened claim, investigation, litigation or proceeding) and
regardless of whether any Indemnitee is a party thereto (all the foregoing,
collectively, the "Indemnified Liabilities"), in all cases, whether or not
caused by or arising, in whole or in part, out of the negligence of the
Indemnitee; provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such liabilities, obligations, losses, damages,
penalties, claims, demands, actions, judgments, suits, costs, expenses or
disbursements are determined by a court of competent jurisdiction by final and
nonappealable judgment to have resulted from the gross negligence or willful
misconduct of

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such Indemnitee. No Indemnitee shall be liable for any damages arising from the
use by others of any information or other materials obtained through IntraLinks
or other similar information transmission systems in connection with this
Agreement, nor shall any Indemnitee have any liability for any indirect or
consequential damages relating to this Agreement or any other Loan Document or
arising out of its activities in connection herewith or therewith (whether
before or after the Closing Date). All amounts due under this Section 10.05
shall be payable within ten Business Days after demand therefor. The agreements
in this Section shall survive the resignation of the Administrative Agent, the
replacement of any Lender, the termination of the Aggregate Commitments and the
repayment, satisfaction or discharge of all the other Obligations.

         10.06 PAYMENTS SET ASIDE. To the extent that any payment by or on
behalf of the Borrower is made to the Administrative Agent or any Lender, or the
Administrative Agent or any Lender exercises its right of set-off, and such
payment or the proceeds of such set-off or any part thereof is subsequently
invalidated, declared to be fraudulent or preferential, set aside or required
(including pursuant to any settlement entered into by the Administrative Agent
or such Lender in its discretion) to be repaid to a trustee, receiver or any
other party, in connection with any proceeding under any Debtor Relief Law 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 Lender severally agrees to pay to the Administrative
Agent upon demand its applicable share of any amount so recovered from or repaid
by the Administrative Agent, plus interest thereon from the date of such demand
to the date such payment is made at a rate per annum equal to the Federal Funds
Rate from time to time in effect.

         10.07 SUCCESSORS AND ASSIGNS.

         (a) The provisions of this Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that the Borrower may not assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of
each Lender and no Lender may assign or otherwise transfer any of its rights or
obligations hereunder except (i) to an Eligible Assignee in accordance with the
provisions of subsection (b) of this Section, (ii) by way of participation in
accordance with the provisions of subsection (d) of this Section, (iii) by way
of pledge or assignment of a security interest subject to the restrictions of
subsection (f) or (i) of this Section, or (iv) to an SPC in accordance with the
provisions of subsection (h) of this Section (and any other attempted assignment
or transfer by any party hereto shall be null and void). Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in subsection (d) of this
Section and, to the extent expressly contemplated hereby, the Indemnitees) any
legal or equitable right, remedy or claim under or by reason of this Agreement.

         (b) Any Lender may at any time 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 Commitment and the Loans at the time owing to it);
provided that (i) except in the case of an assignment of the entire remaining
amount of the assigning Lender's Commitment and the Loans

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at the time owing to it or in the case of an assignment to a Lender or an
Affiliate of a Lender or an Approved Fund (as defined in subsection (g) of this
Section) with respect to a Lender, the aggregate amount of the Commitment (which
for this purpose includes Loans outstanding thereunder) subject to each such
assignment, determined as of the date the Assignment and Assumption with respect
to such assignment is delivered to the Administrative Agent or, if "Trade Date"
is specified in the Assignment and Assumption, as of the Trade Date, shall not
be less than $5,000,000 unless each of the Administrative Agent and, so long as
no Event of Default has occurred and is continuing, the Borrower otherwise
consents (each such consent not to be unreasonably withheld or delayed); (ii)
each partial assignment shall be made as an assignment of a proportionate part
of all the assigning Lender's rights and obligations under this Agreement with
respect to the Loans or the Commitment assigned; (iii) any assignment of a
Commitment must be approved by the Administrative Agent unless the Person that
is the proposed assignee is itself a Lender (whether or not the proposed
assignee would otherwise qualify as an Eligible Assignee); and (iv) the parties
to each assignment shall execute and deliver to the Administrative Agent an
Assignment and Assumption, together with a processing and recordation fee of
$3,500. Subject to acceptance and recording thereof by the Administrative Agent
pursuant to subsection (c) of this Section, from and after the effective date
specified in each Assignment and Assumption, the Eligible Assignee thereunder
shall be a party to this Agreement and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to the extent
of the interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender's rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 3.01, 3.04, 3.05, 10.04 and 10.05
with respect to facts and circumstances occurring prior to the effective date of
such assignment). Upon request, the Borrower (at its expense) shall execute and
deliver a Note to the assignee Lender. Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
subsection shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with
subsection (d) of this Section.

         (c) The Administrative Agent, acting solely for this purpose as an
agent of the Borrower, shall maintain at the Administrative Agent's Office a
copy of each Assignment and Assumption delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitments of,
and principal amounts of the Loans owing to, each Lender pursuant to the terms
hereof from time to time (the "Register"). The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent and the Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof
as a Lender hereunder for all purposes of this Agreement, notwithstanding notice
to the contrary. The Register shall be available for inspection by the Borrower
and any Lender, at any reasonable time and from time to time upon reasonable
prior notice.

         (d) Any Lender may at any time, without the consent of, or notice to,
the Borrower or the Administrative Agent, sell participations to any Person
(other than a natural person or the Borrower or any of the Borrower's Affiliates
or Subsidiaries) (each, a "Participant") in all or a portion of such Lender's
rights and/or obligations under this Agreement (including all or a

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portion of its Commitment and/or the Loans owing to it); provided that (i) such
Lender's obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) the Borrower, the Administrative Agent
and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant, agree
to any amendment, waiver or other modification described in the first proviso to
Section 10.01 that directly affects such Participant. Subject to subsection (e)
of this Section, the Borrower agrees that each Participant shall be entitled to
the benefits of Sections 3.01, 3.04 and 3.05 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to subsection (b) of
this Section. To the extent permitted by law, each Participant also shall be
entitled to the benefits of Section 10.09 as though it were a Lender, provided
such Participant agrees to be subject to Section 2.11 as though it were a
Lender.

         (e) A Participant shall not be entitled to receive any greater payment
under Section 3.01 or 3.04 than the applicable Lender would have been entitled
to receive with respect to the participation sold to such Participant, unless
the sale of the participation to such Participant is made with the Borrower's
prior written consent. A Participant that would be a Foreign Lender if it were a
Lender shall not be entitled to the benefits of Section 3.01 unless the Borrower
is notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 10.15 as though
it were a Lender.

         (f) Any Lender may at any time pledge or assign a security interest in
all or any portion of its rights under this Agreement (including under its Note,
if any) to secure obligations of such Lender, including any pledge or assignment
to secure obligations to a Federal Reserve Bank; provided that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

         (g) As used herein, the following terms have the following meanings:

                  "Eligible Assignee" means (a) a Lender; (b) an Affiliate of a
         Lender; (c) an Approved Fund; and (d) any other Person (other than a
         natural person) approved by (i) the Administrative Agent, and (ii)
         unless an Event of Default has occurred and is continuing, the Borrower
         (each such approval not to be unreasonably withheld or delayed);
         provided that notwithstanding the foregoing, "Eligible Assignee" shall
         not include the Borrower or any of the Borrower's Affiliates or
         Subsidiaries.

                  "Fund" means any Person (other than a natural person) that is
         (or will be) engaged in making, purchasing, holding or otherwise
         investing in commercial loans and similar extensions of credit in the
         ordinary course of its business.

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<PAGE>

                  "Approved Fund" means any Fund that is administered or managed
         by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an
         Affiliate of an entity that administers or manages a Lender.

         (h) Notwithstanding anything to the contrary contained herein, any
Lender (a "Granting Lender") may grant to a special purpose funding vehicle
identified as such in writing from time to time by the Granting Lender to the
Administrative Agent and the Borrower (an "SPC") the option to provide all or
any part of any Loan that such Granting Lender would otherwise be obligated to
make pursuant to this Agreement; provided that (i) nothing herein shall
constitute a commitment by any SPC to fund any Loan, and (ii) if an SPC elects
not to exercise such option or otherwise fails to make all or any part of such
Loan, the Granting Lender shall be obligated to make such Loan pursuant to the
terms hereof. Each party hereto hereby agrees that (i) neither the grant to any
SPC nor the exercise by any SPC of such option shall increase the costs or
expenses or otherwise increase or change the obligations of the Borrower under
this Agreement (including its obligations under Section 3.04), (ii) no SPC shall
be liable for any indemnity or similar payment obligation under this Agreement
for which a Lender would be liable, and (iii) the Granting Lender shall for all
purposes, including the approval of any amendment, waiver or other modification
of any provision of any Loan Document, remain the lender of record hereunder.
The making of a Loan by an SPC hereunder shall utilize the Commitment of the
Granting Lender to the same extent, and as if, such Loan were made by such
Granting Lender. In furtherance of the foregoing, each party hereto hereby
agrees (which agreement shall survive the termination of this Agreement) that,
prior to the date that is one year and one day after the payment in full of all
outstanding commercial paper or other senior debt of any SPC, it will not
institute against, or join any other Person in instituting against, such SPC any
bankruptcy, reorganization, arrangement, insolvency, or liquidation proceeding
under the laws of the United States or any State thereof. Notwithstanding
anything to the contrary contained herein, any SPC may (i) with notice to, but
without prior consent of the Borrower and the Administrative Agent and with the
payment of a processing fee of $3,500, assign all or any portion of its right to
receive payment with respect to any Loan to the Granting Lender and (ii)
disclose on a confidential basis any non-public information relating to its
funding of Loans to any rating agency, commercial paper dealer or provider of
any surety or Guarantee or credit or liquidity enhancement to such SPC.

         (i) Notwithstanding anything to the contrary contained herein, any
Lender that is a Fund may create a security interest in all or any portion of
the Loans owing to it and the Note, if any, held by it to the trustee for
holders of obligations owed, or securities issued, by such Fund as security for
such obligations or securities, provided that unless and until such trustee
actually becomes a Lender in compliance with the other provisions of this
Section 10.07, (i) no such pledge shall release the pledging Lender from any of
its obligations under the Loan Documents and (ii) such trustee shall not be
entitled to exercise any of the rights of a Lender under the Loan Documents even
though such trustee may have acquired ownership rights with respect to the
pledged interest through foreclosure or otherwise.

         10.08 CONFIDENTIALITY. Each of the Administrative Agent and the Lenders
agrees to maintain the confidentiality of the Information (as defined below),
except that Information may be disclosed (a) to its and its Affiliates'
directors, officers, employees and agents, including

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accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information
confidential); (b) to the extent requested by any regulatory authority; (c) to
the extent required by applicable laws or regulations or by any subpoena or
similar legal process; (d) to any other party to this Agreement; (e) in
connection with the exercise of any remedies hereunder or any suit, action or
proceeding relating to this Agreement or the enforcement of rights hereunder;
(f) subject to an agreement containing provisions substantially the same as
those of this Section, to (i) any Eligible Assignee of or Participant in, or any
prospective Eligible Assignee of or Participant in, any of its rights or
obligations under this Agreement or (ii) any direct or indirect contractual
counterparty or prospective counterparty (or such contractual counterparty's or
prospective counterparty's professional advisor) to any credit derivative
transaction relating to obligations of the Borrower; (g) with the consent of the
Borrower; (h) to the extent such Information (i) becomes publicly available
other than as a result of a breach of this Section or (ii) becomes available to
the Administrative Agent or any Lender on a nonconfidential basis from a source
other than the Borrower; or (i) to the National Association of Insurance
Commissioners or any other similar organization. In addition, the Administrative
Agent and the Lenders may disclose the existence of this Agreement and
information about this Agreement to market data collectors, similar service
providers to the lending industry, and service providers to the Administrative
Agent and the Lenders in connection with the administration and management of
this Agreement, the other Loan Documents, the Commitments, and the Borrowings.
For the purposes of this Section, "Information" means all information received
from the Borrower relating to the Borrower or its business, other than any such
information that is available to the Administrative Agent or any Lender on a
nonconfidential basis prior to disclosure by the Borrower; provided that, in the
case of information received from the Borrower after the date hereof, such
information is clearly identified in writing at the time of delivery as
confidential. Any Person required to maintain the confidentiality of Information
as provided in this Section shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to
its own confidential information.

         10.09 SET-OFF. In addition to any rights and remedies of the Lenders
provided by law, upon the occurrence and during the continuance of any Event of
Default, each Lender 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
(general or special, time or demand, provisional or final) at any time held by,
and other indebtedness at any time owing by, such Lender to or for the credit or
the account of the Borrower against any and all Obligations owing to such Lender
hereunder or under any other Loan Document, now or hereafter existing,
irrespective of whether or not the Administrative Agent or such Lender shall
have made demand under this Agreement or any other Loan Document and although
such Obligations may be contingent or unmatured or denominated in a currency
different from that of the applicable deposit or indebtedness. Each Lender
agrees promptly to notify the Borrower and the Administrative Agent 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.

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         10.10 INTEREST RATE LIMITATION. Notwithstanding anything to the
contrary contained in any Loan Document, the interest paid or agreed to be paid
under the Loan Documents shall not exceed the maximum rate of non-usurious
interest permitted by applicable Law (the "Maximum Rate"). If the Administrative
Agent or any Lender shall receive interest in an amount that exceeds the Maximum
Rate, the excess interest shall be applied to the principal of the Loans or, if
it exceeds such unpaid principal, refunded to the Borrower. In determining
whether the interest contracted for, charged, or received by the Administrative
Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent
permitted by applicable Law, (a) characterize any payment that is not principal
as an expense, fee, or premium rather than interest, (b) exclude voluntary
prepayments and the effects thereof, and (c) amortize, prorate, allocate, and
spread in equal or unequal parts the total amount of interest throughout the
contemplated term of the Obligations hereunder.

         10.11 COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

         10.12 INTEGRATION. This Agreement, together with the other Loan
Documents, comprises the complete and integrated agreement of the parties on the
subject matter hereof and thereof and supersedes all prior agreements, written
or oral, on such subject matter. In the event of any conflict between the
provisions of this Agreement and those of any other Loan Document, the
provisions of this Agreement shall control; provided that the inclusion of
supplemental rights or remedies in favor of the Administrative Agent or the
Lenders in any other Loan Document shall not be deemed a conflict with this
Agreement. Each Loan Document was drafted with the joint participation of the
respective parties thereto and shall be construed neither against nor in favor
of any party, but rather in accordance with the fair meaning thereof.

         10.13 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations
and warranties made hereunder and in any other Loan Document or other document
delivered pursuant hereto or thereto or in connection herewith or therewith
shall survive the execution and delivery hereof and thereof. Such
representations and warranties have been or will be relied upon by the
Administrative Agent and each Lender, regardless of any investigation made by
the Administrative Agent or any Lender or on their behalf and notwithstanding
that the Administrative Agent or any Lender may have had notice or knowledge of
any Default or Event of Default at the time of any Borrowing, and shall continue
in full force and effect as long as any Loan or any other Obligation hereunder
shall remain unpaid or unsatisfied.

         10.14 SEVERABILITY. If any provision of this Agreement or the other
Loan Documents is held to be illegal, invalid or unenforceable, (a) the
legality, validity and enforceability of the remaining provisions of this
Agreement and the other Loan Documents shall not be affected or impaired thereby
and (b) the parties shall endeavor in good faith negotiations to replace the
illegal, invalid or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the illegal, invalid or
unenforceable provisions. The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

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         10.15 TAX FORMS. (a) (i) Each Lender that is not a "United States
person" within the meaning of Section 7701(a)(30) of the Code (a "Foreign
Lender") shall deliver to the Administrative Agent, prior to receipt of any
payment subject to withholding under the Code (or upon accepting an assignment
of an interest herein), two duly signed completed copies of either IRS Form
W-8BEN or any successor thereto (relating to such Foreign Lender and entitling
it to an exemption from, or reduction of, withholding tax on all payments to be
made to such Foreign Lender by the Borrower pursuant to this Agreement) or IRS
Form W-8ECI or any successor thereto (relating to all payments to be made to
such Foreign Lender by the Borrower pursuant to this Agreement) or such other
evidence satisfactory to the Borrower and the Administrative Agent that such
Foreign Lender is entitled to an exemption from, or reduction of, U.S.
withholding tax, including any exemption pursuant to Section 881(c) of the Code.
Thereafter and from time to time, each such Foreign Lender shall (A) promptly
submit to the Administrative Agent such additional duly completed and signed
copies of one of such forms (or such successor forms as shall be adopted from
time to time by the relevant United States taxing authorities) as may then be
available under then current United States laws and regulations to avoid, or
such evidence as is satisfactory to the Borrower and the Administrative Agent of
any available exemption from or reduction of, United States withholding taxes in
respect of all payments to be made to such Foreign Lender by the Borrower
pursuant to this Agreement, (B) promptly notify the Administrative Agent of any
change in circumstances which would modify or render invalid any claimed
exemption or reduction, and (C) take such steps as shall not be materially
disadvantageous to it, in the reasonable judgment of such Lender, and as may be
reasonably necessary (including the re-designation of its Lending Office) to
avoid any requirement of applicable Laws that the Borrower make any deduction or
withholding for taxes from amounts payable to such Foreign Lender.

         (ii) Each Foreign Lender, to the extent it does not act or ceases to
act for its own account with respect to any portion of any sums paid or payable
to such Lender under any of the Loan Documents (for example, in the case of a
typical participation by such Lender), shall deliver to the Administrative Agent
on the date when such Foreign Lender ceases to act for its own account with
respect to any portion of any such sums paid or payable, and at such other times
as may be necessary in the determination of the Administrative Agent (in the
reasonable exercise of its discretion), (A) two duly signed completed copies of
the forms or statements required to be provided by such Lender as set forth
above, to establish the portion of any such sums paid or payable with respect to
which such Lender acts for its own account that is not subject to U.S.
withholding tax, and (B) two duly signed completed copies of IRS Form W-8IMY (or
any successor thereto), together with any information such Lender chooses to
transmit with such form, and any other certificate or statement of exemption
required under the Code, to establish that such Lender is not acting for its own
account with respect to a portion of any such sums payable to such Lender.

         (iii) The Borrower shall not be required to pay any additional amount
to any Foreign Lender under Section 3.01 (A) with respect to any Taxes required
to be deducted or withheld on the basis of the information, certificates or
statements of exemption such Lender transmits with an IRS Form W-8IMY pursuant
to this Section 10.15(a) or (B) if such Lender shall have failed to satisfy the
foregoing provisions of this Section 10.15(a); provided that if such Lender
shall have satisfied the requirement of this Section 10.15(a) on the date such
Lender became a Lender or

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<PAGE>

ceased to act for its own account with respect to any payment under any of the
Loan Documents, nothing in this Section 10.15(a) shall relieve the Borrower of
its obligation to pay any amounts pursuant to Section 3.01 in the event that, as
a result of any change in any applicable law, treaty or governmental rule,
regulation or order, or any change in the interpretation, administration or
application thereof, such Lender is no longer properly entitled to deliver
forms, certificates or other evidence at a subsequent date establishing the fact
that such Lender or other Person for the account of which such Lender receives
any sums payable under any of the Loan Documents is not subject to withholding
or is subject to withholding at a reduced rate.

         (iv) The Administrative Agent may, without reduction, withhold any
Taxes required to be deducted and withheld from any payment under any of the
Loan Documents with respect to which the Borrower is not required to pay
additional amounts under this Section 10.15(a).

         (b) Upon the request of the Administrative Agent, each Lender that is a
"United States person" within the meaning of Section 7701(a)(30) of the Code
shall deliver to the Administrative Agent two duly signed completed copies of
IRS Form W-9. If such Lender fails to deliver such forms, then the
Administrative Agent may withhold from any interest payment to such Lender an
amount equivalent to the applicable back-up withholding tax imposed by the Code,
without reduction.

         (c) If any Governmental Authority asserts that the Administrative Agent
did not properly withhold or backup withhold, as the case may be, any tax or
other amount from payments made to or for the account of any Lender, such Lender
shall indemnify the Administrative Agent therefore, including all penalties and
interest, any taxes imposed by any jurisdiction on the amounts payable to the
Administrative Agent under this Section, and costs and expenses (including
Attorney Costs) of the Administrative Agent. The obligation of the Lenders under
this Section shall survive the termination of the Aggregate Commitments,
repayment of all other Obligations hereunder and the resignation of the
Administrative Agent.

         10.16 REPLACEMENT OF LENDERS. Under any circumstances set forth herein
providing that the Borrower shall have the right to replace a Lender as a party
to this Agreement, the Borrower may, upon notice to such Lender and the
Administrative Agent, replace such Lender by causing such Lender to assign its
Commitment (with the assignment fee to be paid by the Borrower in such instance)
pursuant to Section 10.07(b) to one or more other Lenders or Eligible Assignees
procured by the Borrower; provided, however, that if the Borrower elects to
exercise such right with respect to any Lender pursuant to Section 3.06(b) or
Section 3.06(c), it shall be obligated to replace all Lenders that have made
similar requests for compensation pursuant to Section 3.01 or 3.04, or made
similar determinations of illegality pursuant to Section 3.02 and failed to cure
such illegality by designating a different Lending Office. The Borrower shall
(x) pay in full all principal, interest, fees and other amounts owing to such
Lender through the date of replacement (including any amounts payable pursuant
to Section 3.05), and (y) release such Lender from its obligations under the
Loan Documents. Any Lender being replaced shall execute and deliver an
Assignment and Assumption with respect to such Lender's Commitment and
outstanding Loans.

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         10.17 GOVERNING LAW.

         (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, the LAW OF THE STATE OF NEW YORK applicable to agreements made and to be
performed entirely within such State; PROVIDED THAT THE ADMINISTRATIVE Agent AND
EACH LENDER 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 COURTS OF THE STATE OF NEW YORK
SITTING IN THE BOROUGH OF MANHATTAN OR OF THE UNITED STATES FOR THE SOUTHERN
DISTRICT OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE
BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS, FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. THE
BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER 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 ANY LOAN
DOCUMENT OR OTHER DOCUMENT RELATED THERETO. THE BORROWER, THE ADMINISTRATIVE
AGENT AND EACH LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER
PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH
STATE.

         10.18 WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY TO THIS AGREEMENT
HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION
OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH
OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM
WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH
CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT
OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT
A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR
A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

         10.19 TERMINATION OF COMMITMENTS UNDER EXISTING CREDIT AGREEMENTS. The
commitments of the lenders under the Existing Credit Agreements shall terminate
on the Closing Date. Execution of this Agreement by Lenders who are parties to
the Amended and Restated Credit Agreement dated as of May 7, 2002 (the "Existing
364-Day Credit Agreement") shall constitute a waiver of the notice provisions in
Sections 2.5 and 2.6 the Existing 364-Credit Agreement. Execution by Lenders who
are parties to the $400,000,000 Credit Agreement dated

                                       75
<PAGE>

as of May 13, 1998 (the "Existing Multi-Year Credit Agreement") shall constitute
a waiver of the notice provisions in Sections 2.8 and 2.9 of the Existing
Multi-Year Credit Agreement.

         10.20 ENTIRE AGREEMENT. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

                                       76
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first above written.

                            CITGO PETROLEUM CORPORATION

                            By: /s/ EDDIE R. HUMPHREY
                               ------------------------------------------------
                            Name:  Eddie R. Humphrey
                                 ----------------------------------------------
                            Title: Senior Vice President Finance Administration
                                   --------------------------------------------
                                   and Chief Financial Officer
                                   --------------------------------------------

                                       S-1
<PAGE>

                                             BANK OF AMERICA, N.A.,
                                             as Administrative Agent

                                             By:     /s/  CLAIRE LIU
                                                  ------------------------------
                                                     Claire M. Liu
                                                     Managing Director

                                      S-2

<PAGE>

                                             BANK OF AMERICA, N.A.,
                                             as a Lender

                                             By:     /s/  CLAIRE LIU
                                                  ------------------------------
                                                     Claire M. Liu
                                                     Managing Director

                                      S-3
<PAGE>

                                           JPMORGAN CHASE BANK,
                                           as Syndication Agent and as a Lender

                                           By:   /s/ ROBERT C. MERTENSOTTO
                                              --------------------------------
                                           Name:     Robert C. Mertensotto
                                                 -----------------------------
                                           Title:    Managing Director
                                                 -----------------------------

                                      S-4
<PAGE>

                               SOCIETE GENERALE,
                               as Documentation Agent and as a Lender

                               By:      /s/ SPENCER N. SMITH
                                  ----------------------------------------
                               Name:         Spencer N. Smith
                                    --------------------------------------
                               Title:        Vice President
                                     -------------------------------------

                                      S-5
<PAGE>

                               THE BANK OF NEW YORK,
                               as a Lender

                               By:      /s/ RAYMOND J. PALMER
                                  ----------------------------------------
                               Name:         Raymond J. Palmer
                                    --------------------------------------
                               Title:        Vice President
                                     -------------------------------------

                                      S-6

<PAGE>

                                MIZUHO CORPORATE BANK, LTD.,
                                as a Lender

                                By:      /s/ JACQUES AZAGURY
                                   --------------------------------------------
                                Name:         Jacques Azagury
                                     ------------------------------------------
                                Title:        Senior Vice President & Manager
                                      -----------------------------------------

                                      S-7
<PAGE>

                                SUNTRUST BANK,
                                as a Lender

                                By:      /s/ JOSEPH M. MCCREERY
                                   --------------------------------------------
                                Name:         Joseph M. McCreery
                                     ------------------------------------------
                                Title:        Vice President
                                      -----------------------------------------

                                      S-8
<PAGE>

                                FLEET NATIONAL BANK,
                                as a Lender

                                By:      /s/ DANIEL S. SCHOCKLING
                                   -----------------------------------------
                                Name:         Daniel S. Schockling
                                     ---------------------------------------
                                Title:        Director
                                      --------------------------------------

                                      S-9
<PAGE>

                                BNP PARIBAS,
                                as a Lender

                                By:      /s/ LARRY ROBINSON
                                   -----------------------------------------
                                Name:         Larry Robinson
                                     ---------------------------------------
                                Title:         Vice President
                                      --------------------------------------

                                By:      /s/ BARTON D. SCHOUEST
                                   -----------------------------------------
                                Name:         Barton D. Schouest
                                     ---------------------------------------
                                Title:        Managing Director
                                      --------------------------------------

                                      S-10
<PAGE>

                              THE ROYAL BANK OF SCOTLAND PLC,
                              as a Lender

                              By:      /s/ KEITH JOHNSON
                                 ---------------------------------------------
                              Name:         Keith Johnson
                                   -------------------------------------------
                              Title:        Senior Vice President
                                    ------------------------------------------

                                      S-11
<PAGE>

                              BANK ONE, N.A. (Main Office - Chicago),
                              as a Lender

                              By:      /s/ DANIEL A. DAVIS
                                 -----------------------------------------
                              Name:         Daniel A. Davis
                                   ---------------------------------------
                              Title:        Director
                                    --------------------------------------

                                      S-12
<PAGE>

                              WESTLB AG, NEW YORK BRANCH,
                              as a Lender

                              By:      /s/ SALVATORE BATTINELLI
                                 -----------------------------------------
                              Name:         Salvatore Battinelli
                                   ---------------------------------------
                              Title:        Managing Director
                                    --------------------------------------

                              By:      /s/ DANIEL HITCHCOCK
                                 -----------------------------------------
                              Name:         Daniel Hitchcock
                                   ---------------------------------------
                              Title:        Associate Director
                                    --------------------------------------

                                      S-13

<PAGE>

                             BANK OF OKLAHOMA, NATIONAL ASSOCIATION,
                             as a Lender

                             By:      /s/ ROBERT D. MATTAX
                                -----------------------------------------
                             Name:         Robert D. Mattax
                                  ---------------------------------------
                             Title:        Senior Vice President
                                   --------------------------------------

                                      S-14

<PAGE>

                             THE NORTHERN TRUST COMPANY,
                             as a Lender

                             By:      /s/ MELISSA A. WHITSON
                                -----------------------------------------
                             Name:         Melissa A. Whitson
                                  ---------------------------------------
                             Title:        Vice President
                                   --------------------------------------

                                      S-15

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