Document:

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                                                                     EXHIBIT 4.3

                                     FORM OF
            AMENDED AND RESTATED PNM RESOURCES, INC. PNM DIRECT PLAN

         This is an amendment and restatement of the PNM Resources, Inc. PNM
Direct Plan that became effective on December 21, 2001 to replace and assume the
Public Service Company of New Mexico PNM Direct Plan originally established on
August 28, 1996.

         1. Definitions

         The following terms when used herein shall have the following meanings:

         "Broker" shall mean one or more securities broker-dealers selected from
time to time by the Plan Administrator to act as independent agents for the
Participants in the purchase and sale of shares of the Company's Common Stock
under the Plan.

         "Common Stock" shall mean the Company's common stock, no par value.

         "Company" shall mean PNM Resources, Inc., a New Mexico corporation

         "Dividend Payment Date" shall mean each date on which dividends are
paid on the Company's Common Stock. These dates are usually on or about February
15, May 15, August 15, and November 15 of each year.

         "Enrollment Form" shall mean such enrollment form as the Plan
Administrator or the Company may from time to time, or upon request, furnish to
Shareholders or new investors who are not Shareholders and which shall be
returned to the Plan Administrator together with the Initial Cash Investment to
indicate their election to participate in the Plan.

         "Exchange" shall mean the New York Stock Exchange.

         "Initial Cash Investment" shall mean any initial cash investment made
by a new investor for the purchase of their first shares of the Company's Common
Stock under the Plan. An Initial Cash Investment may not (a) equal less than $50
or (b) total more than $10,000; provided, however, that employees of the Company
and any of its affiliates who elect to invest through payroll deductions (when
and if the Company offers the payroll deduction option to such employees) may
make an initial investment of at least $25.

         "Optional Cash Investment" shall mean any additional cash payment made
by a Participant for the purchase of shares of the Company's Common Stock under
the Plan. Optional Cash Investments may not (a) equal less than $50 each or (b)
total more than $10,000 in any month; provided however, that employees of the
Company and any of its affiliates who elect to invest thorough payroll
deductions (when and if the Company offers the payroll deduction option to such
employees) may make an optional investment of at least $25.

         "Participant" shall mean any Shareholder or new investor who is not a
Shareholder who has enrolled in the Plan on-line over the Internet or has
returned an Enrollment Form to the Plan Administrator indicating election to
participate in the Plan.

         "Plan" shall mean the Amended and Restated PNM Resources, Inc. PNM
Direct Plan.

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         "Plan Administrator" shall mean Mellon Bank, N.A. through its
designated affiliates Mellon Investor Services and FutureShare Financial LLC or
other agent duly appointed by the Company to administer the Plan.

         "Pricing Period" shall have the meaning set forth below in Section 9.

         "Shareholder" shall mean any holder of record of the Company's Common
Stock.

         "Threshold Price" shall have the meaning set forth below in Section 10.

         "Trading Day" shall have the meaning set forth below in Section 9.

         "Waiver Investment Date" shall have the meaning set forth below in
Section 9.

         2. Purpose

         The purpose of this Plan is to provide Shareholders and interested new
investors with a convenient and economical method of investing cash dividends
and making cash investments in shares of the Company's Common Stock. The shares
of the Company's Common Stock purchased under this Plan with reinvested cash
dividends and Initial and Optional Cash Investments will, at the election of the
Company, be newly issued shares purchased directly from the Company, treasury
shares purchased directly from the Company, shares purchased on the open market
by the Broker or a combination thereof.

         3. Eligibility for Participation

         Existing Shareholders and interested new investors who are not
Shareholders are eligible to participate in the Plan and may do so by enrolling
on-line over the Internet through Investor ServiceDirect at
www.melloninvestor.com or by completing the Enrollment Form and returning it to
the Plan Administrator, together with an Initial Cash Investment or an Optional
Cash Investment, as the case may be. Instructions for enrollment on-line over
the Internet are provided by the Plan Administrator. Any Shareholder who owns
less than 100 shares shall be automatically enrolled in the full dividend
reinvestment portion of the Plan, unless the Participant elects to receive cash
dividends.

         4. Administration

         The Plan Administrator shall maintain records and perform such other
duties as may be required. In addition, the Plan Administrator shall send to
each Participant (a) annual or quarterly (annual if the Participant holds less
than 100 shares and participates only in the dividend reinvestment portion of
the Plan) statements of the Participant's Plan account, and (b) annual and
quarterly reports to Shareholders, proxy statements and income tax information
for reporting dividends. Shares purchased by a Participant through the Plan
shall be held by the Plan Administrator in book-entry form. Unless instructed
otherwise, the dividends on such shares shall be automatically reinvested on
each Dividend Payment Date.

         The Company shall pay all costs of administering the Plan, except as
provided in this paragraph of this Section 4. Participants will pay the trading
fees for any shares purchased on the open market and a fee for plan histories.
No commission will be paid on any newly issued shares purchased directly from
the Company under the Plan. A Participant will incur trading and transaction
fees upon the sale of shares in the Participant's Plan account in connection
with the withdrawal of a Participant from this Plan as described in Section 12.
Additional fees are set forth in the fee schedule attached as Appendix A. The
fee schedule in Appendix A may be amended from time to time by the Company.

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         5. Reinvestment of Dividends

         A. Full Dividend Reinvestment. Shareholders may elect to have their
cash dividends automatically reinvested by enrolling on-line over the Internet
through Investor ServiceDirect at www.melloninvestor.com or completing the
Enrollment Form to that effect and returning it to the Plan Administrator. In
such cases, cash dividends on shares held in a Participant's Plan account will
be automatically reinvested until such shares are withdrawn from the
Participant's Plan account or until the Participant changes his or her dividend
reinvestment election by notifying the Plan Administrator. Cash dividends will
be reinvested as promptly as practicable (normally within 5 business days of the
Dividend Payment Date). Reinvestment of cash dividends shall commence with
dividends paid on the next Dividend Payment Date following the Plan
Administrator's receipt of the Enrollment Form or the processing of enrollment
on-line provided the enrollment request is received on or before the record date
established for payment of the dividends. If the Plan Administrator receives the
enrollment request after such record date, then the reinvestment of dividends
shall commence with the Dividend Payment Date following the next established
record date.

         B. Partial Dividend Reinvestment. A Participant may elect to have cash
dividends on a designated number of shares held in the Participant's Plan
account paid directly to the Participant, with the balance being reinvested in
shares of Common Stock, except that Participants owning less than 100 shares of
Common Stock may not elect this partial dividend reinvestment option.

         C. Cash Investment Only. A Participant may elect to have cash dividends
on all shares held in the Participant's Plan account paid directly to the
Participant in lieu of being reinvested.

         D. No Option Chosen. If a Participant does not elect a cash dividend
participation option as described above in Subsections 5A, 5B or 5C, then such
Participant will be deemed to have elected the full divided reinvestment option
described in Subsection 5A above.

         E. Return of Uninvested Cash Dividends. Any cash dividends to be
reinvested under the Plan that are not reinvested in shares of Common Stock
within 30 days of the applicable Dividend Payment Date shall be promptly paid,
without interest, to the Participant at his or her address of record by First
Class Mail.

         6. Initial and Optional Cash Investments

         Shareholders or interested new investors may elect to make an Initial
Cash Investment by enrolling on-line over the Internet through Investor
ServiceDirect at www.melloninvestor.com or by completing the Enrollment Form for
that purpose and returning it to the Plan Administrator. Participants are
eligible to make Optional Cash Investments at any time. Initial and/or Optional
Cash Investments, or any portion thereof, may be accepted or rejected by the
Plan Administrator or Company in their sole discretion. Any Initial or Optional
Cash Investment, or portion thereof, that is rejected by the Plan Administrator
or the Company will be returned to the Participant as promptly as practical
after the Plan Administrator or the Company elects to reject such investments.
Initial Cash Investments and Optional Cash Investments shall be used to purchase
shares of the Company's Common Stock as promptly as practical (normally, at
least once every five business days) after the Plan Administrator receives the
Participant's Initial Cash Investment or Optional Cash Investment in the form of
an electronic bank transfer, check or money order payable to Mellon Bank, N.A.
No Participant's Initial Cash Investment may (a) equal less than $50 or (b)
total more than $10,000. No Participant's Optional Cash Investments may (a)
equal less than $50 each or (b) total more than $10,000 in any month; provided,
however, that employees of the Company and any of its affiliates who elect to
invest through payroll deductions (when and if the payroll deduction option is
offered to such employees) may make an initial or additional

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optional investment of at least $25. (The payroll deduction option is currently
available, but will cease to be available upon the implementation of the PNM
Resources, Inc. Employee Stock Purchase Plan. The Company retains discretion to
reinstate and/or remove the payroll deduction option from time-to-time). Any
Initial Cash Investments and Optional Cash Investments that are not invested
within 35 days of receipt by the Plan Administrator or the Company shall be
promptly returned, without interest, to the Participant at his or her address of
record by First Class Mail.

         7. Cash Investments Over the Maximum Monthly Amount

         Interested new investors may make an Initial Cash Investment and/or
Participants may make an Optional Cash Investment in excess of $10,000 per month
with the Company's prior written approval. Approval is obtained by submitting a
"Request for Waiver" form, which may be obtained by contacting the Plan
Administrator's Waiver Department at 1-917-320-6300 (or such other number as the
Plan Administrator or the Company may establish from time to time). Completed
Request For Waiver forms must be sent to the Plan Administrator's Waiver
Department via facsimile no later than three business days prior to the Pricing
Period Start Date provided in Appendix B (which Appendix B may be amended from
time to time by the Plan Administrator and an authorized officer of the Company)
to this Plan for the applicable Pricing Period. If a Request for Waiver is
approved, then the Participant must send to the Plan Administrator its Optional
Cash Investment of greater than $10,000.

         The Plan Administrator must receive the Initial or Optional Cash
Investment in excess of the $10,000 monthly maximum in good funds pursuant to a
Request For Waiver form by the "Optional Cash Investments Must be Received By"
date as set forth on Appendix B. This date is the close of business on the last
day immediately preceding the first day of the applicable Pricing Period Start
Date as set forth in Appendix B. Funds received after this date will be returned
to the Participant without interest.

         The Company has the sole discretion whether to approve any request to
make an Initial or Optional Cash Investment in excess of the $10,000 monthly
maximum. In deciding whether to approve a Request for Waiver, the Company may
consider, among other things, the following factors:

         o        whether, at the time of such request, the Plan Administrator
                  is acquiring shares of Common Stock for the Plan directly from
                  the Company or in the open market or in privately negotiated
                  transactions with third parties;

         o        the Company's need for additional funds;

         o        the Company's desire to obtain additional funds through the
                  sale of Common Stock as compared to other sources of funds;

         o        the purchase price likely to apply to any sale of Common
                  Stock;

         o        the extent and nature of a Participant's prior participation
                  in the Plan;

         o        the number of shares of Common Stock a Participant holds of
                  record; and

         o        the total amount of Initial and Optional Cash Investments in
                  excess of $10,000 per month for which Requests for Waiver have
                  been submitted.

         If Requests for Waivers are submitted for any Pricing Period for an
aggregate amount in excess of the amount the Company is then willing to accept,
the Company may honor such requests in order of receipt, pro rata or by any
other method that the Company determines, in its sole discretion, to be

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appropriate. In making this determination, the Company may consider the make-up
of its shareholder base and existing ownership levels.

         8. Purchase of Shares

         Shares of the Common Stock purchased under the Plan will, at the
Company's election, be newly issued shares purchased directly from the Company,
treasury shares purchased directly from the Company, shares purchased by a
Broker in the open market, or a combination thereof. The Company has full
discretion as to whether the Common Stock purchased under the Plan will be
purchased on the open market or purchased directly from the Company.

         o        Common Stock purchased in the open market. The investment
                  price of the Common Stock purchased in the open market with
                  reinvested dividends, Initial Cash Investments or with
                  Optional Cash Investments will be the weighted average price,
                  including applicable brokerage trading fees, incurred in
                  connection with the purchase of such shares for the relevant
                  investment date. No interest will be paid on funds held by the
                  Plan Administrator pending investment. The Plan Administrator
                  will normally invest cash dividends within 5 business days of
                  the Dividend Payment Date and will normally invest Initial and
                  Optional Cash Investments at least once every 5 business days.

         o        Common Stock purchased directly from the Company. The price of
                  the Common Stock purchased directly from the Company with
                  reinvested dividends, Initial Cash Investments or Optional
                  Cash Investments will be the average of the high and low sale
                  prices of shares of the Common Stock reported on the Exchange
                  for the Dividend Payment Date, Initial Cash Investment date or
                  Optional Cash Investment date, as the case may be. No interest
                  will be paid on funds held by the Plan Administrator pending
                  investment. The Plan Administrator will normally invest
                  Initial and Optional Cash investments at least once every 5
                  business days.

         The Participants will be credited with that number of shares, including
fractional shares computed to 4 decimal places, equal to the amount invested
with respect to his, her or its Plan account, divided by the price per share of
such shares for all purchases for all Participants during the applicable period.

         9. Purchase of Shares Upon a Request for Waiver

         Shares purchased pursuant to a granted Request for Waiver are purchased
directly from the Company. Initial and Optional Cash Investments made pursuant
to a Request for Waiver will be applied to the purchase of shares of Common
Stock as soon as practicable on or after the "Waiver Investment Date" as set
forth in Appendix B to the Plan (which Appendix B may be amended from time to
time by the Plan Administrator and an authorized officer of the Company).
Initial and Optional Cash Investments made pursuant to a Request for Waiver are
acquired at a price equal to the average of the daily high and low sales prices
computed up to four decimal places, if necessary, of the Common Stock as
reported on the Exchange for the 10 Trading Days (as defined below) immediately
preceding the applicable Waiver Investment Date. A "Trading Day" means a day on
which trades in the Common Stock are reported on the Exchange. The period
encompassing the first 10 Trading Days immediately preceding the next following
Waiver Investment Date constitutes the relevant "Pricing Period." The Plan
Administrator will apply all Initial and Optional Cash Investments for which
good funds are received on or before the first business day before the Pricing
Period to the purchase of shares of common stock as soon as practicable on or
after the next following Waiver Investment Date.

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         A discount of up to 3% from the purchase price may be offered, in the
Company's sole discretion, with respect to a particular Waiver Investment Date
to Participants on purchases of the Company's common stock through Initial or
Optional Cash Investments in excess of $10,000 per month.

         Setting a discount from the purchase price for Initial or Optional Cash
Investments in excess of $10,000 per month for a particular Pricing Period will
not affect the setting of a discount for any other Pricing Period. The Company
may increase, decrease, or waive its right to set a discount from the purchase
price for any particular Pricing Period. Neither the Company nor the Plan
Administrator is required to give a new investor or Participant notice of the
discount for any Pricing Period. When setting the discount, if any, the Company
will consider, among other things, capital needs, whether the Company wants to
issue equity to meet capital needs and how quickly the Company desires to close
the investment.

         10. Threshold Price

         The Company may set a minimum purchase price per share (the "Threshold
Price") for Initial or Optional Cash Investments in excess of $10,000 per month
made pursuant to a granted Request for Waiver for any Pricing Period. The
determination of whether to set a Threshold Price will be made at least three
business days before the first day of the Pricing Period.

         The Company will notify the Plan Administrator of the Threshold Price,
if any. In deciding whether to set a Threshold Price, the Company will consider
current market conditions, the level of participation in the Plan and the
current and projected capital needs. Participants and potential new investors
may ascertain whether a Threshold Price has been set or waived for any given
Pricing Period by calling Mellon's Waiver Department at 1-917-320-6300 (or such
other number as the Plan Administrator or the Company may establish from time to
time).

         The Company will fix the Threshold Price for a Pricing Period as a
dollar amount that the average of the high and low sales prices as reported by
the Exchange for each Trading Day of that Pricing Period (not adjusted for
discounts, if any) must equal or exceed. The Company will exclude from the
Pricing Period and from the determination of the purchase price any Trading Day
within the Pricing Period that does not meet the Threshold Price. The Company
also will exclude from the Pricing Period and from the determination of the
purchase price any day in which no trades of Common Stock are made on the
Exchange. Thus, for example, if the Threshold Price is not met or no sales of
Common Stock are reported for 2 of the 10 Trading Days in a Pricing Period, then
the Company will base the purchase price upon the remaining 8 Trading Days in
which the Threshold Price was met.

         In addition, the Company will return a pro rata portion of each Initial
or Optional Cash Investment made pursuant to an approved Request for Waiver for
each Trading Day of a Pricing Period for which the Threshold Price is not met or
for each day in which no trades of common stock are reported on the Exchange as
soon as reasonably practical after the Pricing Period, without interest.

         The returned amount will equal one-tenth (1/10th) of the total amount
of that Initial or Optional Cash Investment (not just the amount exceeding
$10,000) for each Trading Day that the Threshold Price is not met or for each
Trading Day in which sales are not reported. Thus, for example, if the Threshold
Price is not met or no sales of Company Common Stock are reported for 2 of the
10 Trading Days in a Pricing Period, then the Company will return two-tenths
(2/10th or 20%) of the Initial or Optional Cash Investment to the investor
without interest after conclusion of the Pricing Period. This does not
constitute a discount to the purchase price; however, it does reduce the amount
of the offering.

         The establishment of the Threshold Price and the possible return of a
portion of the payment apply only to Initial and/or Optional Cash Investments
exceeding $10,000 per month made pursuant to a

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granted Request for Waiver. Setting a Threshold Price for a Pricing Period will
not affect the setting of a Threshold Price for any other Pricing Period. The
Company may waive its right to set a Threshold Price for any particular Pricing
Period. Neither the Company nor the Plan Administrator is required to give an
interested new investor or Participant notice of the Threshold Price for any
Pricing Period. The Company may alter or amend at our sole discretion these
Pricing Periods at any time and from time to time, prior to the commencement of
any Pricing Period and prior to the granting of any waiver with respect to such
period.

         11. Amendment of Investment Option

         A Participant may change the investment option elected under this Plan
by notifying the Plan Administrator in writing, by telephone or on-line over the
Internet. With respect to the dividend reinvestment portion of the Plan, notices
received by the Plan Administrator not later than the record date established
for any Dividend Payment Date shall be effective as of such Dividend Payment
Date and thereafter.

         12. Withdrawal of Purchased Shares and Termination of Account

         A Participant who has purchased shares of the Company's Common Stock
under this Plan may withdraw all or a portion of such shares by notifying the
Plan Administrator, specifying in the notice the number of shares to be
withdrawn. If requested, certificates for whole shares withdrawn shall be issued
to the Participant or transferred to a Participant's brokerage account. In no
case shall certificates or transfers for fractional shares be issued. Any
fractional share withdrawn shall be liquidated as soon as practicable after
receipt of withdrawal notice by the Plan Administrator. The liquidated amount
for any fractional share and certificate(s) for whole shares shall be mailed
directly to the withdrawing Participant by the Plan Administrator.

         If the Participant is terminating participation in this Plan, the
Participant may withdraw all shares and request that a certificate be issued,
that whole shares be transferred to a Participant's brokerage account or that
shares be sold and the cash proceeds be forwarded to the Participant. Such sale
shall be made by the Broker. The Broker will have full discretion as to all
matters relating to sales by the Broker, including the date of any sales and the
prices received for such shares. The proceeds of such sale by the Broker, less
trading and transaction fees, shall be paid to such Participant. Shares that are
to be sold by the Broker may be aggregated with those of other terminating
Participants, in which case the proceeds to each terminating Participant will be
based on the average sales price, less trading and transaction fees.

         13. Common Stock Rights Offering, Stock Split, Stock Dividend

         Participation in any Common Stock rights offering shall be based upon
both the shares registered in the Participant's name and the shares (including
fractional shares) credited to the Participant's Plan account in book-entry
form. Any stock dividend or share resulting from any stock split with respect to
shares credited to the Participant's Plan account shall be added to such
account.

         14. Voting

         All shares credited to a Participant's Plan account in book-entry form
shall be voted as the Participant directs. If on the record date for a meeting
of Shareholders there are shares credited to the Participant's Plan account, the
Participant (whether or not any shares are registered in the Participant's own
name) shall be sent the proxy materials for such meeting. If the Participant
returns an executed proxy, all shares credited to the Participant (including any
fractional shares) shall be voted in accordance with such proxy; otherwise, the
Participant may vote such shares in person at such meeting.

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         15. Liability

         In administering this Plan, neither the Company nor the Plan
Administrator nor any Broker shall be liable for any good faith acts or
omissions, including, without limitation, any failure to terminate a
Participant's Plan account upon such Participant's death or adjudicated
incompetence, prior to receiving notice in writing of such death or adjudicated
incompetence, or with respect to the prices at which shares are purchased or
sold for a Participant's account and the times when such purchases and sales are
made, or with respect to any loss or fluctuation in the market value after the
purchase or sale of such shares.

         16. Termination, Suspension or Modification

         The Company reserves the right to modify, suspend or terminate this
Plan at any time. The Company also reserves the right to change the
administrative procedures of the Plan, together with the Plan Administrator. The
Company reserves the right to modify, suspend or terminate participation in the
Plan by otherwise eligible persons to eliminate practices that are inconsistent
with the purpose of the Plan. In such event, the Plan Administrator will notify
the Participant in writing and will continue to keep safe shares of Common Stock
allocated to the Participant, but will no longer accept optional cash
investments or reinvest dividends.

         17. Direct Registration System

         Shares purchased under the Plan (unless requested otherwise by the
Participant) will be in book-entry-form through the use of the Direct
Registration System. Shares may be transferred from the Participant's Plan
account to a Participant's brokerage account and vice versa.

         18. Compliance With Applicable Laws and Regulations

         The Company's obligation to offer, issue or sell shares of the
Company's Common Stock under this Plan shall be subject to (a) the Company's
obtaining any necessary approval, authorization or consent from any regulatory
authority having jurisdiction and from any stock exchange on which shares of the
Company's Common Stock may then be listed and (b) the condition that, at the
time of the offer, issuance or sale, the price at which such shares are being
offered, issued or sold shall be at least equal to the then stated value of such
shares.

         19. Selection of Broker

         Any Broker serving in such capacity pursuant to the Plan shall be
selected by the Company, and the Plan Administrator and the Company, or either
of them, shall, subject to the provisions hereof, make such arrangements and
enter into such agreements with the Broker in connection with the activities
contemplated by the Plan as the Plan Administrator and the Company, or either of
them, deem reasonable and appropriate.

         20. Source of Shares of Common Stock

         The Company shall not change the source of Common Stock purchased by
Participants in the Plan (i.e., either (i) newly issued shares of Common Stock
or shares of Common Stock held in the Company's treasury (not reserved for any
other purpose) purchased from the Company, or (ii) shares of Common Stock
purchased in the open market) more often than every 3 months. The Company shall
not exercise its right to change the source of shares absent a recorded
determination by the Company's Board

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of Directors, Chief Financial Officer or Treasurer that the Company's need to
raise additional capital has changed or there is another valid reason for a
change.

         21. Plan of Distribution

         Subject to the discussion below, the Company will distribute newly
issued shares of its Common Stock sold under the Plan. Future Share Financial
LLC, a registered broker/dealer, will assist in the identification of investors
and other related services, but will not be acting as an underwriter with
respect to shares of Common Stock sold under the Plan. There are no brokerage
commissions or service charges allocated to Participants in the Plan in
connection with their purchases of such newly issued shares of Common Stock.

         In connection with the administration of the Plan, the Company may be
requested to approve investments made pursuant to Requests for Waiver by or on
behalf of Participants or other investors who may be engaged in the securities
business. Persons who acquire shares of the Company's Common Sock through the
Plan and resell them shortly after acquiring them, including coverage of short
positions, under certain circumstances, may be participating in a distribution
of securities that would require compliance with Regulation M under the
Securities Exchange Act of 1934, as amended, and may be considered to be
underwriters within the meaning of the Securities Act of 1933, as amended. The
Company will not extend to any such person any rights or privileges other than
those to which it would be entitled as a Participant, nor will the Company enter
into any agreement with any such person regarding the resale or distribution by
any such person of the shares of our Common Stock so purchased. The Company may,
however, accept investments made pursuant to Requests for Waiver by such
persons. From time to time, financial intermediaries, including brokers and
dealers, and other persons may engage in positioning transactions in order to
benefit from any waiver discounts applicable to investments made pursuant to
Requests for Waiver under the Plan. Those transactions may cause fluctuations in
the trading volume of the Common Stock. Financial intermediaries and such other
persons who engage in positioning transactions may be deemed to be underwriters.
The Company has no arrangements or understandings, formal or informal, with any
person relating to the sale of shares of our Common Stock to be received under
the Plan.

         22. Controlling Law

          This Plan shall be construed, regulated and administered under the
laws of the State of New Mexico.

         23. Uncollectible Funds

         If a check or automatic debit submitted for investment is returned
unpaid or rejected for any reason, the Plan Administrator will consider the
request for investment of such funds null and void and will charge the
Participant the applicable fees set forth in Appendix A, as revised from time to
time. Any shares purchased upon the prior credit of such funds will be
immediately removed from the Participant's account. The Plan Administrator will
be entitled to sell those shares to satisfy any uncollected amounts. If the net
proceeds of the sale of such shares are not sufficient to satisfy the balance of
such uncollected amounts, the Plan Administrator may sell additional shares from
the Participant's account to satisfy the uncollected balance.

         24. Acceptance of Terms and Conditions of Plan by Participants

         Each Participant, by completing an Enrollment Form and as a condition
of participation herein, for himself or herself, his or her heirs, executors,
administrators, legal representatives and assigns, approves and agrees to be
bound by the provisions of this Plan and any subsequent amendments hereto, and
all actions of the Company and the Plan Administrator hereunder.

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                                   APPENDIX A

                                  FEE SCHEDULE

<Table>
<S>                                                         <C>
ENROLLMENT FEE FOR NEW INVESTORS.....................       NO CHARGE

INITIAL PURCHASE OF SHARES...........................       TRADING FEE INCLUDED IN SHARE PRICE (CURRENTLY $0.06
                                                            PER SHARE), APPLICABLE WHEN SHARES ARE ACQUIRED ON THE
                                                            OPEN MARKET BY THE PLAN ADMINISTRATOR THROUGH ITS
                                                            BROKER

REINVESTMENT OF DIVIDENDS............................       NO CHARGE. THE COMPANY WILL PAY THE APPLICABLE
                                                            TRADING FEE WHEN SHARES ARE ACQUIRED ON THE OPEN
                                                            MARKET BY THE PLAN ADMINISTRATOR THROUGH ITS BROKER

OPTIONAL CASH INVESTMENTS............................       TRADING FEE INCLUDED IN SHARE PRICE (CURRENTLY $0.06
                                                            PER SHARE), APPLICABLE WHEN SHARES ARE ACQUIRED ON THE
                                                            OPEN MARKET BY THE PLAN ADMINISTRATOR THROUGH ITS
                                                            BROKER

SALE OF SHARES (PARTIAL OR FULL):
     TRANSACTION FEE.................................       $15 PER SALE TRANSACTION OR LIQUIDATION
     TRADING FEE.....................................       CURRENTLY $0.06 PER SHARE

GIFT OR TRANSFER OF SHARES...........................       NO CHARGE

SAFEKEEPING OF STOCK CERTIFICATES....................       NO CHARGE

CERTIFICATE ISSUANCE.................................       NO CHARGE

RETURNED CHECKS OR REJECTED AUTOMATIC DEBIT..........       $35 PER CHECK OR TRANSACTION

DUPLICATE STATEMENTS:
     CURRENT YEAR....................................       NO CHARGE
     PRIOR YEAR(S)...................................       $20 FLAT FEE PER REQUEST PER EACH PRIOR YEAR
</Table>

PLAN FEES ARE AT THE DISCRETION OF PNM RESOURCES, INC. INVESTORS SHOULD NOT RELY
SOLELY ON THE ABOVE SCHEDULE AS FEES ARE SUBJECT TO CHANGE. FOR MORE
INFORMATION, PLEASE CONTACT THE PLAN ADMINISTRATOR AT 1-877-663-7775.

<PAGE>

                                   APPENDIX B

"REQUEST FOR WAIVER" INITIAL OR OPTIONAL CASH INVESTMENTS OF MORE THAN $10,000
PER MONTH

<Table>
<Caption>
                        Threshold Price and             Optional Cash
                      Waiver Discount, if any,       Investments Must be        Pricing Period         Waiver
       Year                will be set by                received by              Start Date       Investment Date
       ----           ------------------------       -------------------        --------------     ---------------
<S>                   <C>                            <C>                        <C>                <C>
       2003                   January 13                   January 15              January 16          January 31
                              February 3                   February 5              February 6         February 21
                              February 24                  February 26             February 27          March 13
                               March 14                     March 18                March 19            April 2
                                April 3                      April 7                 April 8            April 23
                               April 24                     April 28                April 29             May 13
                                May 14                       May 16                  May 19              June 3
                                June 4                       June 6                  June 9             June 23
                                June 24                      June 26                 June 27            July 14
                                July 15                      July 17                 July 18            August 1
                               August 4                     August 6                August 7           August 21
                               August 22                    August 26               August 27         September 11
                             September 12                 September 16            September 17         October 1
                               October 2                    October 6               October 7          October 21
                              October 22                   October 24              October 27         November 10
                              November 11                  November 13             November 14         December 1
                              December 2                   December 4              December 5         December 19
                              December 22                  December 24             December 26      January 12, 2004

       2004                   January 13                   January 15              January 16          February 2
                              February 3                   February 5              February 6         February 23
                              February 24                  February 26             February 27          March 12
                               March 15                     March 17                March 18            April 1
                                April 2                      April 6                 April 7            April 22
                               April 23                     April 27                April 28             May 12
                                May 13                       May 17                  May 18              June 2
                                June 3                       June 7                  June 8             June 22
                                June 23                      June 25                 June 28            July 13
                                July 14                      July 16                 July 19           August 14
                               August 3                     August 5                August 6           August 20
                               August 23                    August 25               August 26         September 10
                             September 13                 September 15            September 16        September 30
                               October 1                    October 5               October 6          October 20
                              October 21                   October 25              October 26          November 9
</Table>

PRICING PERIODS ARE AT THE DISCRETION OF PNM RESOURCES, INC. INVESTORS SHOULD
NOT RELY SOLELY ON THE ABOVE SCHEDULE AS PRICING PERIODS AND WAIVER INVESTMENT
DATES MAY VARY. FOR MORE INFORMATION, PLEASE CONTACT THE PLAN ADMINISTRATOR'S
WAIVER DEPARTMENT AT 1-917-320-6300.<PAGE>

                                                                 EXHIBIT 10.8(c)

                                                                  EXECUTION COPY

                             BRIDGE CREDIT AGREEMENT

                                      among

                            ATMOS ENERGY CORPORATION
                                  as Borrower,

                         THE LENDERS IDENTIFIED HEREIN,

                                       AND

                                  BANK ONE, NA
                             as Administrative Agent

                                       AND

                       WACHOVIA BANK, NATIONAL ASSOCIATION

                              as Syndication Agent

                                       AND

                                  SUNTRUST BANK

                                       and

                        SOCIETE GENERALE, NEW YORK BRANCH

                           as Co-Documentation Agents

                           DATED AS OF OCTOBER 7, 2002

                         BANC ONE CAPITAL MARKETS, INC.
                   as Sole Lead Arranger and Sole Book Manager

<PAGE>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                                PAGE
<S>      <C>      <C>                                                                                           <C>
SECTION 1.            DEFINITIONS AND ACCOUNTING TERMS...........................................................1

         1.1      Definitions....................................................................................1

         1.2      Computation of Time Periods...................................................................12

         1.3      Accounting Terms..............................................................................13

         1.4      Time..........................................................................................13

SECTION 2.            LOANS.....................................................................................13

         2.1      Bridge Loan Commitment........................................................................13

         2.2      Method of Borrowing for Bridge Loans..........................................................13

         2.3      Funding of Bridge Loans.......................................................................14

         2.4      Continuations and Conversions.................................................................14

         2.5      Minimum Amounts...............................................................................15

         2.6      Reductions of Bridge Loan Commitment..........................................................15

         2.7      Notes.........................................................................................16

SECTION 3.            PAYMENTS..................................................................................16

         3.1      Interest......................................................................................16

         3.2      Prepayments...................................................................................16

         3.3      Payment in full at Maturity...................................................................17

         3.4      Fees..........................................................................................17

         3.5      Place and Manner of Payments..................................................................18

         3.6      Pro Rata Treatment............................................................................18

         3.7      Computations of Interest and Fees.............................................................19

         3.8      Sharing of Payments...........................................................................19

         3.9      Evidence of Debt..............................................................................20

SECTION 4.            ADDITIONAL PROVISIONS REGARDING LOANS.....................................................21

         4.1      Eurodollar Loan Provisions....................................................................21

         4.2      Capital Adequacy..............................................................................22

         4.3      Compensation..................................................................................23

         4.4      Taxes.........................................................................................23

SECTION 5.            CONDITIONS PRECEDENT......................................................................25

         5.1      Closing Conditions............................................................................25
</Table>

                                       -i-
<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

<Table>
<Caption>
                                                                                                                PAGE
<S>      <C>      <C>                                                                                           <C>
         5.2      Conditions to Loans...........................................................................27

SECTION 6.            REPRESENTATIONS AND WARRANTIES............................................................28

         6.1      Organization and Good Standing................................................................28

         6.2      Due Authorization.............................................................................28

         6.3      No Conflicts..................................................................................28

         6.4      Consents......................................................................................28

         6.5      Enforceable Obligations.......................................................................28

         6.6      Financial Condition...........................................................................29

         6.7      No Material Change............................................................................29

         6.8      No Default....................................................................................29

         6.9      Litigation....................................................................................29

         6.10     Taxes.........................................................................................29

         6.11     Compliance with Law...........................................................................30

         6.12     Material Agreements...........................................................................30

         6.13     ERISA.........................................................................................30

         6.14     Use of Proceeds...............................................................................31

         6.15     Government Regulation.........................................................................31

         6.16     Disclosure....................................................................................32

         6.17     Environmental Matters.........................................................................32

         6.18     Insurance.....................................................................................32

         6.19     Franchises, Licenses, Etc.....................................................................32

         6.20     Secured Indebtedness..........................................................................32

         6.21     Subsidiaries..................................................................................33

SECTION 7.            AFFIRMATIVE COVENANTS.....................................................................33

         7.1      Information Covenants.........................................................................33

         7.2      Debt to Capitalization Ratio..................................................................35

         7.3      Preservation of Existence, Franchises and Assets..............................................35

         7.4      Books and Records.............................................................................35

         7.5      Compliance with Law...........................................................................35

         7.6      Payment of Taxes and Other Indebtedness.......................................................35
</Table>

                                      -ii-
<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

<Table>
<Caption>
                                                                                                                PAGE
<S>      <C>      <C>                                                                                           <C>
         7.7      Insurance.....................................................................................36

         7.8      Use of Proceeds...............................................................................36

         7.9      Audits/Inspections............................................................................36

SECTION 8.            NEGATIVE COVENANTS........................................................................36

         8.1      Nature of Business............................................................................36

         8.2      Consolidation and Merger......................................................................36

         8.3      Sale or Lease of Assets.......................................................................37

         8.4      Arm's-Length Transactions.....................................................................37

         8.5      Fiscal Year; Organizational Documents.........................................................37

         8.6      Liens.........................................................................................37

SECTION 9.            EVENTS OF DEFAULT.........................................................................38

         9.1      Events of Default.............................................................................38

         9.2      Acceleration; Remedies........................................................................42

         9.3      Allocation of Payments After Event of Default.................................................42

SECTION 10.           AGENCY PROVISIONS.........................................................................42

         10.1     Appointment...................................................................................42

         10.2     Delegation of Duties..........................................................................43

         10.3     Exculpatory Provisions........................................................................43

         10.4     Reliance on Communications....................................................................44

         10.5     Notice of Default.............................................................................44

         10.6     Non-Reliance on Administrative Agent and Other Lenders........................................44

         10.7     Indemnification...............................................................................45

         10.8     Administrative Agent in Its Individual Capacity...............................................45

         10.9     Successor Agent...............................................................................45

SECTION 11.           MISCELLANEOUS.............................................................................46

         11.1     Notices.......................................................................................46

         11.2     Right of Set-Off..............................................................................46

         11.3     Benefit of Agreement..........................................................................47

         11.4     No Waiver; Remedies Cumulative................................................................50

         11.5     Payment of Expenses, etc......................................................................50
</Table>

                                     -iii-
<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

<Table>
<Caption>
                                                                                                                PAGE
<S>      <C>      <C>                                                                                           <C>
         11.6     Amendments, Waivers and Consents..............................................................50

         11.7     Counterparts/Telecopy.........................................................................51

         11.8     Headings......................................................................................52

         11.9     Defaulting Lender.............................................................................52

         11.10    Survival of Indemnification and Representations and Warranties................................52

         11.11    Governing Law; Venue..........................................................................52

         11.12    Waiver of Jury Trial..........................................................................53

         11.13    Severability..................................................................................53

         11.14    Further Assurances............................................................................53

         11.15    Entirety......................................................................................53

         11.16    Binding Effect; Continuing Agreement..........................................................53
</Table>

                                      -iv-

<PAGE>
                               TABLE OF CONTENTS

SCHEDULES
Schedule 1.1(a)            Commitment Percentages
Schedule 1.1(b)            Pricing Schedule
Schedule 6.20              Secured Indebtedness
Schedule 6.21              Subsidiaries
Schedule 11.1              Notices

EXHIBITS

Exhibit 2.2                Form of Notice of Borrowing
Exhibit 2.4                Form of Notice of Continuation/Conversion
Exhibit 2.7                Form of Bridge Loan Note
Exhibit 7.1(c)             Form of Officer's Certificate
Exhibit 11.3(b)            Form of Assignment Agreement

                                      -v-
<PAGE>
                             BRIDGE CREDIT AGREEMENT

         THIS BRIDGE CREDIT AGREEMENT (this "Credit Agreement"), dated as of
October 7, 2002, is entered into among ATMOS ENERGY CORPORATION, a Texas and
Virginia corporation (the "Borrower"), the Lenders (as defined herein) and BANK
ONE, NA as agent for the Lenders (in such capacity, the "Administrative Agent").

                                    RECITALS

         WHEREAS, the Borrower wishes, from time to time, to obtain loans in the
principal sum of up to $150,000,000 and the Lenders are willing to make such
loans to the Borrower, on the terms and conditions hereinafter set forth.

         NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

                                   SECTION 1.

                        DEFINITIONS AND ACCOUNTING TERMS

         1.1 DEFINITIONS.

         As used herein, the following terms shall have the meanings herein
specified unless the context otherwise requires. Defined terms herein shall
include in the singular number the plural and in the plural the singular.

                  "Adjusted Eurodollar Rate" means the Eurodollar Rate plus the
         Applicable Percentage for Eurodollar Loans.

                  "Administrative Agent" means Bank One, NA and any successors
         and assigns in such capacity.

                  "Affiliate" means, with respect to any Person, any other
         Person directly or indirectly controlling, controlled by or under
         direct or indirect common control with such Person. A Person shall be
         deemed to control another Person if such Person possesses, directly or
         indirectly, the power (a) to vote 10% or more of the securities having
         ordinary voting power for the election of directors of such other
         Person or (b) to direct or cause direction of the management and
         policies of such other Person, whether through the ownership of voting
         securities, by contract or otherwise.

                  "Agency Services Address" means 1 Bank One Plaza, 10th Floor,
         Chicago, IL 60670 or such other address as the Administrative Agent may
         designate in writing.

                  "Applicable Percentage" - See the Pricing Schedule.

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

<PAGE>

                  "Base Rate" means a fluctuating rate of interest equal to the
         higher of (a) the Prime Rate and (b) the sum of the Federal Funds Rate
         most recently determined by the Administrative Agent plus 1/2% per
         annum. If for any reason the Administrative Agent shall have determined
         (which determination shall be conclusive absent manifest error) that it
         is unable after due inquiry to ascertain the Federal Funds Rate for any
         reason, including the inability or failure of the Administrative Agent
         to obtain sufficient quotations in accordance with the terms hereof,
         the Base Rate shall be determined without regard to clause (a) of the
         first sentence of this definition until the circumstances giving rise
         to such inability no longer exist. Any change in the Base Rate due to a
         change in the Prime Rate or the Federal Funds Rate shall be effective
         on the effective date of such change in the Prime Rate or the Federal
         Funds Rate, respectively.

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

                  "Borrower" means Atmos Energy Corporation, a Texas and
         Virginia corporation.

                  "Borrower Obligations" means, without duplication, all of the
         obligations of the Borrower to the Lenders and the Administrative
         Agent, whenever arising, under this Credit Agreement, the Notes or any
         of the other Credit Documents.

                  "Bridge Loan" means a loan made by a Lender to the Borrower
         pursuant to Section 2.1(a).

                  "Bridge Loan Commitment" means one hundred fifty million
         Dollars ($150,000,000) as such amount may be otherwise reduced in
         accordance with Section 2.6.

                  "Bridge Loan Notes" means the promissory notes of the Borrower
         in favor of each Lender evidencing the Bridge Loans and substantially
         in the form of Exhibit 2.7, as such promissory notes may be amended,
         modified, supplemented or replaced from time to time.

                  "Business Day" means any day other than a Saturday, a Sunday,
         a legal holiday or a day on which banking institutions are authorized
         or required by law or other governmental action to close in Chicago,
         Illinois; provided that in the case of Eurodollar Loans, such day is
         also a day on which dealings between banks are carried on in U.S.
         dollar deposits in the London interbank market.

                  "Capital Stock" means (a) in the case of a corporation, all
         classes of capital stock of such corporation, (b) in the case of a
         partnership, partnership interests (whether general or limited), (c) in
         the case of a limited liability company, membership interests and (d)
         any other interest or participation that confers on a Person the right
         to receive a share of the profits and losses of, or distributions of
         assets of, the issuing Person.

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

                           (a) any "person" or "group" (within the meaning of
                  Section 13(d) or 14(d) of the Exchange Act) has become,
                  directly or indirectly, the "beneficial

                                       2
<PAGE>

                  owner" (as defined in Rules 13d-3 (other than subsection (d)
                  thereof) and 13d-5 under the Exchange Act), by way of merger,
                  consolidation or otherwise of 40% or more of the voting power
                  of the Borrower on a fully-diluted basis, after giving effect
                  to the conversion and exercise of all outstanding warrants,
                  options and other securities of the Borrower convertible into
                  or exercisable for voting stock of the Borrower (whether or
                  not such securities are then currently convertible or
                  exercisable); or

                           (b) during any period of two consecutive calendar
                  years, individuals who at the beginning of such period
                  constituted the board of directors of the Borrower together
                  with any new members of such board of directors whose
                  elections by such board or board of directors or whose
                  nomination for election by the stockholders of the Borrower
                  was approved by a vote of a majority of the members of such
                  board of directors then still in office who either were
                  directors at the beginning of such period or whose election or
                  nomination for election was previously so approved cease for
                  any reason to constitute a majority of the directors of the
                  Borrower then in office.

                  "Closing Date" means the date hereof.

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

                  "Commitment Percentage" means, for each Lender, the percentage
         identified as its Commitment Percentage opposite such Lender's name on
         Schedule 1.1(a), as such percentage may be modified by assignment in
         accordance with the terms of this Credit Agreement.

                  "Commitments" means, collectively, each Lender's share of the
         Bridge Loan Commitment based upon such Lender's Commitment Percentage,
         as reflected on Schedule 1.1(a).

                  "Consolidated Capitalization" means, without duplication, the
         sum of (a) all of the shareholders' equity or net worth of the Borrower
         and its Subsidiaries on a consolidated basis, as determined in
         accordance with GAAP plus (b) the aggregate principal amount of
         Preferred Securities plus (c) the aggregate Minority Interests in
         Subsidiaries plus (d) Consolidated Funded Debt.

                  "Consolidated Funded Debt" means, without duplication, the sum
         of (a) all indebtedness of the Borrower and its Subsidiaries for
         borrowed money, (b) all purchase money indebtedness of the Borrower and
         its Subsidiaries, (c) the principal portion of all obligations of the
         Borrower and its Subsidiaries under capital leases, (d) all commercial
         letters of credit and the maximum amount of all performance and standby
         letters of credit issued or bankers' acceptance facilities created for
         the account of the Borrower or one of its Subsidiaries, including,
         without duplication, all unreimbursed draws thereunder, (e) all
         Guaranty Obligations of the Borrower and its Subsidiaries with respect
         to funded indebtedness of another Person; provided that neither the
         indebtedness of Woodward

                                       3
<PAGE>

         Marketing, LLC ("Woodward") incurred in connection with the purchase of
         gas by Woodward for resale to the Borrower nor the guaranty by the
         Borrower or one of its Subsidiaries of such indebtedness shall be
         included in this definition if such indebtedness has been outstanding
         for less than two months from the date of its incurrence by Woodward,
         (f) all indebtedness of another entity secured by a Lien on any
         property of the Borrower or any of its Subsidiaries whether or not such
         indebtedness has been assumed by the Borrower or any of its
         Subsidiaries, (g) all indebtedness of any partnership or unincorporated
         joint venture to the extent the Borrower or one of its Subsidiaries is
         legally obligated with respect thereto, net of any assets of such
         partnership or joint venture, (h) all obligations of the Borrower and
         its Subsidiaries to advance or provide funds or other support for the
         payment or purchase of funded indebtedness (including, without
         limitation, maintenance agreements, comfort letters or similar
         agreements or arrangements) (other than as may be given in respect of
         Woodward) and (i) the principal balance outstanding under any synthetic
         lease, tax retention operating lease, off-balance sheet loan or similar
         off-balance sheet financing product of the Borrower or one of its
         Material Subsidiaries where such transaction is considered borrowed
         money indebtedness for tax purposes but is classified as an operating
         lease in accordance with GAAP.

                  "Consolidated Net Property" means the Fixed Assets less,
         without duplication, the amount of accumulated depreciation and
         amortization attributable thereto.

                  "Credit Documents" means this Credit Agreement, the Notes, any
         Notice of Borrowing and all other related agreements and documents
         issued or delivered hereunder or thereunder or pursuant hereto or
         thereto.

                  "Debt to Capitalization Ratio" means the ratio of (a)
         Consolidated Funded Debt to (b) Consolidated Capitalization.

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

                  "Defaulting Lender" means, at any time, any Lender that, at
         such time (a) has failed to make a Loan required pursuant to the term
         of this Credit Agreement, (b) has failed to pay to the Administrative
         Agent or any Lender an amount owed by such Lender pursuant to the terms
         of this Credit Agreement or (c) has been deemed insolvent or has become
         subject to a bankruptcy or insolvency proceeding or to a receiver,
         trustee or similar official.

                  "Dollars" and "$" means dollars in lawful currency of the
         United States of America.

                  "Effective Date" means the date on which all of the conditions
         set forth in Section 5.1 shall have been fulfilled (or waived in the
         sole discretion of the Lenders).

                  "Eligible Assignee" means (a) a Lender; (b) an Affiliate of a
         Lender; and (c) any other Person approved by the Administrative Agent
         and the Borrower (such approval not to be unreasonably withheld or
         delayed); provided that (i) the Borrower's consent is not required
         during the existence and continuation of a Default or an Event of
         Default,

                                       4
<PAGE>

         (ii) approval by the Borrower shall be deemed given if no objection is
         received by the Administrative Agent from the Borrower within five
         Business Days after notice of such proposed assignment has been
         received by the Borrower; and (iii) neither the Borrower nor an
         Affiliate of the Borrower shall qualify as an Eligible Assignee.

                  "Environmental Laws" means any current or future legal
         requirement of any Governmental Authority pertaining to (a) the
         protection of health, safety, and the indoor or outdoor environment,
         (b) the conservation, management, or use of natural resources and
         wildlife, (c) the protection or use of surface water and groundwater or
         (d) the management, manufacture, possession, presence, use, generation,
         transportation, treatment, storage, disposal, release, threatened
         release, abatement, removal, remediation or handling of, or exposure
         to, any hazardous or toxic substance or material or (e) pollution
         (including any release to land surface water and groundwater) and
         includes, without limitation, the Comprehensive Environmental Response,
         Compensation, and Liability Act of 1980, as amended by the Superfund
         Amendments and Reauthorization Act of 1986, 42 USC 9601 et seq., Solid
         Waste Disposal Act, as amended by the Resource Conservation and
         Recovery Act of 1976 and Hazardous and Solid Waste Amendment of 1984,
         42 USC 6901 et seq., Federal Water Pollution Control Act, as amended by
         the Clean Water Act of 1977, 33 USC 1251 et seq., Clean Air Act of
         1966, as amended, 42 USC 7401 et seq., Toxic Substances Control Act of
         1976, 15 USC 2601 et seq., Hazardous Materials Transportation Act, 49
         USC App. 1801 et seq., Occupational Safety and Health Act of 1970, as
         amended, 29 USC 651 et seq., Oil Pollution Act of 1990, 33 USC 2701 et
         seq., Emergency Planning and Community Right-to-Know Act of 1986, 42
         USC 11001 et seq., National Environmental Policy Act of 1969, 42 USC
         4321 et seq., Safe Drinking Water Act of 1974, as amended, 42 USC
         300(f) et seq., any analogous implementing or successor law, and any
         amendment, rule, regulation, order, or directive issued thereunder.

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

                  "ERISA Affiliate" means an entity, whether or not
         incorporated, which is under common control with the Borrower or any of
         its Subsidiaries within the meaning of Section 4001(a)(14) of ERISA, or
         is a member of a group which includes the Borrower or any of its
         Subsidiaries and which is treated as a single employer under Sections
         414(b), (c), (m), or (o) of the Code.

                  "Eurodollar Loan" means a Loan bearing interest at the
         Adjusted Eurodollar Rate.

                  "Eurodollar Rate" means, with respect to any Interest Period,
         the applicable London interbank offered rate for deposits in U.S.
         dollars appearing on Reuters Screen FRBD as of 11:00 a.m. (London time)
         two Business Days prior to the first day of the applicable Interest
         Period, and having a maturity equal to such Interest Period, adjusted
         for Federal Reserve Board reserve requirements.

                                       5
<PAGE>

                  "Eurodollar Reserve Percentage" means, for any day, that
         percentage (expressed as a decimal) which is in effect from time to
         time under Regulation D, as the maximum reserve requirement (including,
         without limitation, any basic, supplemental, emergency, special, or
         marginal reserves) applicable with respect to Eurocurrency liabilities,
         as that term is defined in Regulation D (or against any other category
         of liabilities that includes deposits by reference to which the
         interest rate of Eurodollar Loans is determined), whether or not a
         Lender has any Eurocurrency liabilities subject to such reserve
         requirement at that time. Eurodollar Loans shall be deemed to
         constitute Eurocurrency liabilities and as such shall be deemed subject
         to reserve requirements without benefits of credits for proration,
         exceptions or offsets that may be available from time to time to a
         Lender. The Eurodollar Rate shall be adjusted automatically on and as
         of the effective date of any change in the Eurodollar Reserve
         Percentage.

                  "Event of Default" has the meaning specified in Section 9.1.

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

                  "Federal Funds Rate" means, for any day, an interest 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, as published for such day by the Federal
         Reserve Bank of New York, or if such rate is not so published for such
         day, the average of the quotations for such day on such transactions
         received by the Administrative Agent from three Federal funds brokers
         of recognized standing selected by it.

                  "Financial Officer" means any one of the chief financial
         officer, the controller or the treasurer of the Borrower.

                  "Fixed Assets" means the assets of the Borrower and its
         Subsidiaries constituting "net property, plant and equipment" on the
         consolidated balance sheet of the Borrower and its Subsidiaries.

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

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

                  "Guaranty Obligations" means, with respect to any Person,
         without duplication, any obligations (other than endorsements in the
         ordinary course of business of negotiable instruments for deposit or
         collection) guaranteeing any indebtedness for borrowed money of any
         other Person in any manner, whether direct or indirect, and including
         without limitation any obligation, whether or not contingent, (a) to
         purchase any such indebtedness or other obligation or any property
         constituting security therefor, (b) to lease or purchase property,
         securities or services primarily for the purpose of assuring the owner
         of such indebtedness or (c) to otherwise assure or hold harmless the
         owner of such indebtedness or obligation against loss in respect
         thereof. The amount of any Guaranty

                                       6
<PAGE>

         Obligation hereunder shall (subject to any limitations set forth
         therein) be deemed to be an amount equal to the outstanding principal
         amount of the indebtedness in respect of which such Guaranty Obligation
         is made.

                  "Interest Payment Date" means (a) as to Base Rate Loans, the
         last day of each fiscal quarter of the Borrower and the Maturity Date
         and (b) as to Eurodollar Loans, the last day of each applicable
         Interest Period and the Maturity Date.

                  "Interest Period" means, as to Eurodollar Loans, a period of
         one, two or three months' duration, as the Borrower may elect,
         commencing, in each case, on the date of the borrowing (including
         continuations and conversions of Eurodollar Loans); provided, however,
         (a) if any Interest Period would end on a day which is not a Business
         Day, such Interest Period shall be extended to the next succeeding
         Business Day (except that where the next succeeding Business Day falls
         in the next succeeding calendar month, then such Interest Period shall
         end on the next preceding Business Day), (b) no Interest Period shall
         extend beyond the Maturity Date and (c) with respect to Eurodollar
         Loans, where an Interest Period begins on a day for which there is no
         numerically corresponding day in the calendar month in which the
         Interest Period is to end, such Interest Period shall end on the last
         Business Day of such calendar month.

                  "Lender" means any of the Persons identified as a "Lender" on
         the signature pages hereto, and any Eligible Assignee which may become
         a Lender by way of assignment in accordance with the terms hereof,
         together with their successors and permitted assigns.

                  "LGS Purchase and Sale Agreement" means that certain Purchase
         and Sale Agreement, dated as of April 13, 2000, among Citizens
         Utilities Company, LGS Natural Gas Company and the Borrower.

                  "Lien" means any mortgage, pledge, hypothecation, assignment,
         deposit arrangement, security interest, encumbrance, lien (statutory or
         otherwise), preference, priority or charge of any kind (including any
         agreement to give any of the foregoing).

                  "Loans" means the Bridge Loans.

                  "Material Adverse Effect" means a material adverse effect on
         (a) the operations, business, assets, liabilities (actual or
         contingent), financial condition or prospects of the Borrower and its
         Subsidiaries, taken as a whole (taking into account the value of any
         indemnifications in favor of the Borrower pursuant to the LGS Purchase
         and Sale Agreement and the MVG Merger Agreement), (b) the ability of
         the Borrower to perform its obligations under this Credit Agreement or
         (c) the validity or enforceability of this Credit Agreement, any of the
         other Credit Documents, or the rights and remedies of the Lenders
         hereunder or thereunder.

                  "Material Subsidiary" means, at any date, a Subsidiary of the
         Borrower whose aggregate assets properly included under the category
         "property, plant and equipment" on the balance sheet of such
         Subsidiary, less the amount of depreciation and amortization
         attributable thereto, constitutes at least 10% of Consolidated Net
         Property as of such date;

                                       7
<PAGE>

         provided that if at any time the Borrower has Subsidiaries that are not
         Material Subsidiaries whose total aggregate assets under the category
         "property, plant and equipment" on the balance sheet of such
         Subsidiaries, less the amount of depreciation and amortization
         attributable thereto, constitutes more than 20% of Consolidated Net
         Property as of such date the Borrower shall designate one or more of
         such Subsidiaries as Material Subsidiaries for the purposes of this
         Credit Agreement in order that all Subsidiaries of the Borrower, other
         than Material Subsidiaries, own not more than 20% of Consolidated Net
         Property.

                  "Maturity Date" means January 31, 2003.

                  "Minority Interests" means interests owned by Persons (other
         than the Borrower or a Subsidiary of the Borrower) in a Subsidiary of
         the Borrower in which less than 100% of all classes of the voting
         securities are owned by the Borrower or its Subsidiaries.

                  "Moody's" means Moody's Investors Service, Inc., or any
         successor or assignee of the business of such company in the business
         of rating securities.

                  "Moody's Rating" - see the Pricing Schedule.

                  "Multiemployer Plan" means a Plan covered by Title IV of ERISA
         which is a multiemployer plan as defined in Section 3(37) or 4001(a)(3)
         of ERISA.

                  "Multiple Employer Plan" means a Plan covered by Title IV of
         ERISA, other than a Multiemployer Plan, which the Borrower or any ERISA
         Affiliate and at least one employer other than the Borrower or any
         ERISA Affiliate are contributing sponsors.

                  "MVG Acquisition" means the merger of Mississippi Valley Gas
         Company with and into the Borrower pursuant to the MVG Merger
         Agreement.

                  "MVG Merger Agreement" means the Agreement and Plan of Merger
         and Reorganization, dated as of September 21, 2001, by and among Atmos
         Energy Corporation, Mississippi Valley Gas Company and the Shareholders
         of the Mississippi Valley Gas Company.

                  "Net Cash Proceeds" means with respect to any public offering
         of common stock or any issuance of long-term indebtedness for borrowed
         money or any other long-term capital markets issuance, the aggregate
         cash proceeds received by the Borrower or any Subsidiary pursuant to
         such offering or issuance, net of the direct costs relating to such
         offering or issuance (including, without limitation, sales and
         underwriter's discounts and commissions and legal, accounting and
         investment banking fees).

                  "1957 Indenture" means, collectively, that certain Indenture
         of Mortgage, dated as of March 1, 1957, granted by Greeley Gas Company
         (predecessor in interest to the Borrower) to The Central Bank and Trust
         Company, as original Trustee, and all Supplemental Indentures thereto.

                                       8
<PAGE>

                  "1959 Indenture" means, collectively, that certain Indenture
         of Mortgage, dated as of July 15, 1959, granted by United Cities Gas
         Company (predecessor in interest to the Borrower) to City National Bank
         and Trust Company of Chicago and R. Emmett Hanley, as the original
         Trustees, and all Supplemental Indentures thereto, including, without
         limitation, that certain First Supplemental Indenture, dated as of
         November 1, 1960; that certain Second Supplemental Indenture, dated as
         of June 1, 1962; that certain Third Supplemental Indenture, dated as of
         February 1, 1963; that certain Fourth Supplemental Indenture, dated as
         of June 15, 1963; that certain Fifth Supplemental Indenture, dated as
         of November 15, 1964; that certain Sixth Supplemental Indenture, dated
         as of March 15, 1968; that certain Seventh Supplemental Indenture,
         dated as of August 1, 1970; that certain Eighth Supplemental Indenture,
         dated as of September 1, 1972; that certain Ninth Supplemental
         Indenture, dated as of January 1, 1974; that certain Tenth Supplemental
         Indenture, dated as of July 1, 1976; that certain Eleventh Supplemental
         Indenture, dated as of December 1, 1976; that certain Twelfth
         Supplemental Indenture, dated as of April 1, 1981; that certain
         Thirteenth Supplemental Indenture, dated as of May 1, 1982; that
         certain Fourteenth Supplemental Indenture, dated as of March 1, 1987;
         that certain Fifteenth Supplemental Indenture, dated as of October 1,
         1987; that certain Sixteenth Supplemental Indenture, dated as of
         December 1, 1989; that certain Seventeenth Supplemental Indenture,
         dated as of April 1, 1990; that certain Eighteenth Supplemental
         Indenture, dated as of June 1, 1991; that certain Nineteenth
         Supplemental Indenture, dated as of May 1, 1992; that certain Twentieth
         Supplemental Indenture, dated as of December 1, 1992; that certain
         Twenty-First Supplemental Indenture, dated as of February 5, 1997; and
         that certain Twenty-Second Supplemental Indenture, dated as of July 29,
         1997.

                  "1987 Note Purchase Agreements" means, collectively, those
         certain Note Purchase Agreements, dated as of December 21, 1987, by and
         between Energas Company (predecessor in interest to the Borrower) and
         (a) John Hancock Mutual Life Insurance Company, (b) John Hancock
         Charitable Trust I and (c) Mellon Bank, N.A., Trustee under the Master
         Trust of AT&T Corporation, and all Amendments thereto, including,
         without limitation, that certain Amendment to Note Purchase Agreements,
         amending each of the above-referenced Note Purchase Agreements, each
         dated as of (i) October 11, 1989, (ii) November 12, 1991, (iii)
         December 22, 1993, (iv) December 20, 1994 and July 29, 1997.

                  "1989 Note Purchase Agreement" means, collectively, that
         certain Note Purchase Agreement, dated as of October 11, 1989, by and
         between the Borrower and John Hancock Mutual Life Insurance Company,
         and all Amendments thereto, including, without limitation, those
         Amendments dated as of October 11, 1989, November 12, 1991, December
         22, 1993, December 20, 1994, and July 29, 1997.

                  "1991 Note Purchase Agreement" means, collectively, that
         certain Note Purchase Agreement, dated as of August 29, 1991, by and
         between the Borrower and The Variable Annuity Life Insurance Company,
         and all Amendments thereto, including, without limitation, those
         Amendments dated as of November 26, 1991, December 22, 1993, and July
         29, 1997.

                                       9
<PAGE>

                  "1992 Note Purchase Agreement" means, collectively, that
         certain Note Purchase Agreement, dated as of August 31, 1992, by and
         between the Borrower and The Variable Annuity Life Insurance Company,
         and all Amendments thereto, including, without limitation, those
         Amendments dated as of December 22, 1993, and July 29, 1997.

                  "1994 Note Purchase Agreement" means, collectively, that
         certain Note Purchase Agreement dated November 14, 1994, by and among
         the Borrower and New York Life Insurance Company, New York Life
         Insurance and Annuity Corporation, The Variable Annuity Life Insurance
         Company, American General Life Insurance Company, and Merit Life
         Insurance Company, and all Amendments thereto; including, without
         limitation, that Amendment dated as of July 29, 1997.

                  "1998 Indenture" means, collectively, that certain Indenture,
         dated as of July 15, 1998, granted by the Borrower to US Bank Trust
         National Association, as Trustee, and all Supplemental Indentures
         thereto.

                  "Notes" means the Bridge Loan Notes.

                  "Notice of Borrowing" means a request by the Borrower for a
         Bridge Loan in the form of Exhibit 2.2.

                  "Notice of Continuation/Conversion" means a request by the
         Borrower for the continuation or conversion of a Bridge Loan in the
         form of Exhibit 2.4.

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

                  "Person" means any individual, partnership, joint venture,
         firm, corporation, association, trust, limited liability company or
         other enterprise (whether or not incorporated), or any government or
         political subdivision or any agency, department or instrumentality
         thereof.

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

                  "Preferred Securities" means, at any date, any equity
         interests in the Borrower, in a Special Purpose Financing Subsidiary of
         the Borrower or in any other Subsidiary of the Borrower (such as those
         known as "TECONS", "MIPS" or "RHINOS"): (a) that are not (i) required
         to be redeemed or redeemable at the option of the holder thereof prior
         to the fifth anniversary of the Maturity Date or (ii) convertible into
         or exchangeable for (unless solely at the option of the Borrower or
         such Subsidiary of the Borrower) equity interests referred to in clause
         (i) above or indebtedness having a scheduled maturity, or requiring any
         repayments or prepayments of principal or any sinking fund or similar
         payments in respect of principal or providing for any such repayment,
         prepayment, sinking fund or other payment at the option of the holder
         thereof prior to the fifth anniversary of the Maturity Date and (b) as
         to which, at such date, the Borrower or such Subsidiary of the

                                       10
<PAGE>

         Borrower has the right to defer the payment of all dividends and other
         distributions in respect thereof for the period of at least 19
         consecutive quarters beginning at such date.

                  "Pricing Schedule" - See Schedule 1.1(b).

                  "Prime Rate" means a rate per annum equal to the prime rate of
         interest announced from time to time by Bank One, NA or its parent
         (which is not necessarily the lowest rate charged to any customer),
         changing when and as said prime rate changes.

                  "Register" has the meaning set forth in Section 11.3(c).

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

                  "Reportable Event" means a "reportable event" as defined in
         Section 4043 of ERISA with respect to which the notice requirements to
         the PBGC have not been waived.

                  "Required Lenders" means Lenders whose aggregate Credit
         Exposure (as hereinafter defined) constitutes more than 51% of the
         aggregate Credit Exposure of all Lenders at such time; provided,
         however, that if any Lender shall be a Defaulting Lender at such time
         then there shall be excluded from the determination of Required Lenders
         the aggregate principal amount of Credit Exposure of such Lender at
         such time. For purposes of the preceding sentence, the term "Credit
         Exposure" as applied to each Lender shall mean (a) at any time prior to
         the termination of the Commitments, the Commitment Percentage of such
         Lender multiplied times the Bridge Loan Commitment and (b) at any time
         after the termination of the Commitments, the sum of the principal
         balance of the outstanding Bridge Loans of such Lender.

                  "S&P" means Standard & Poor's Ratings Services, a division of
         McGraw Hill, Inc., or any successor or assignee of the business of such
         division in the business of rating securities.

                  "S&P Rating" - see the Pricing Schedule.

                  "Securities Act" means the Securities Act of 1933, as amended,
         and the rules and regulations promulgated thereunder.

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

                  "Special Purpose Financing Subsidiary" means a Subsidiary of
         the Borrower that has no direct or indirect interest in the business of
         the Borrower and its other Subsidiaries and was formed solely for the
         purpose of issuing Preferred Securities.

                  "Subsidiary" means, as to any Person, (a) any corporation more
         than 50% of whose stock of any class or classes having by the terms
         thereof ordinary voting power to

                                       11
<PAGE>

         elect a majority of the directors of such corporation (irrespective of
         whether or not, at the time, any class or classes of such corporation
         shall have or might have voting power by reason of the happening of any
         contingency) is at the time owned by such Person directly or indirectly
         through Subsidiaries and (b) any partnership, association, joint
         venture, limited liability company or other entity in which such Person
         directly or indirectly through Subsidiaries has more than 50% equity
         interest at any time.

                  "Termination Event" means (a) with respect to any Single
         Employer Plan, the occurrence of a Reportable Event or the substantial
         cessation of operations (within the meaning of Section 4062(e) of
         ERISA), (b) the withdrawal of the Borrower or any ERISA Affiliate from
         a Multiple Employer Plan during a plan year in which it was a
         substantial employer (as such term is defined in Section 4001(a)(2) of
         ERISA), or the termination of a Multiple Employer Plan, (c) the
         distribution of a notice of intent to terminate or the actual
         termination of a Plan pursuant to Section 4041(a)(2) or 4041A of ERISA,
         (d) the institution of proceedings to terminate or the actual
         termination of a Plan by the PBGC under Section 4042 of ERISA, (e) any
         event or condition which might reasonably constitute grounds under
         Section 4042 of ERISA for the termination of, or the appointment of a
         trustee to administer, any Plan, or (f) the complete or partial
         withdrawal of the Borrower or any ERISA Affiliate from a Multiemployer
         Plan.

                  "Total Assets" means all assets of the Borrower as shown on
         its most recent quarterly consolidated balance sheet, as determined in
         accordance with GAAP.

                  "2001 Indenture" means, collectively, that certain Indenture,
         dated as of May 22, 2001, granted by the Borrower to SunTrust Bank,
         Atlanta, as Trustee, and all Supplemental Indentures thereto.

                  "Unused Bridge Loan Commitment" means, for any period from the
         Effective Date to the Maturity Date, the amount by which (a) the then
         applicable Bridge Loan Commitment exceeds (b) the daily average sum for
         such period of the aggregate principal amount of all Bridge Loans
         outstanding.

                  "Unused Fees" has the meaning set forth in Section 3.4(a).

                  "Utilization Fees" has the meaning set forth in Section
         3.4(b).

                  "Woodward Acquisition" means the acquisition by the Borrower
         on April 1, 2001, of the remaining 55% ownership interest in Woodward
         Marketing LLC theretofore not owned by the Borrower, pursuant to that
         certain Asset Purchase Agreement, dated as of August 7, 2000, by and
         among the Borrower, Atmos Energy Marketing, LLC, a wholly-owned
         Subsidiary of the Borrower, Woodward Marketing, Inc. and the
         shareholders of Woodward Marketing, Inc.

         1.2 COMPUTATION OF TIME PERIODS.

         For purposes of computation of periods of time hereunder, the word
"from" means "from and including" and the words "to" and "until" each mean "to
but excluding." References in this Credit Agreement to "Articles", "Sections",
"Schedules" or "Exhibits" shall be to Articles,

                                       12
<PAGE>

Sections, Schedules or Exhibits of or to this Credit Agreement unless otherwise
specifically provided.

         1.3 ACCOUNTING TERMS.

         Except as otherwise expressly provided herein, all accounting terms
used herein shall be interpreted, and all financial statements and certificates
and reports as to financial matters required to be delivered to the Lenders
hereunder shall be prepared, in accordance with GAAP applied on a consistent
basis. All calculations made for the purposes of determining compliance with
this Credit Agreement shall (except as otherwise expressly provided herein) be
made by application of GAAP applied on a basis consistent with the most recent
annual or quarterly financial statements delivered pursuant to Section 7.1 (or,
prior to the delivery of the first financial statements pursuant to Section 7.1,
consistent with the financial statements described in Section 5.1(d)); provided,
however, if (a) the Borrower shall object to determining such compliance on such
basis at the time of delivery of such financial statements due to any change in
GAAP or the rules promulgated with respect thereto or (b) the Administrative
Agent or the Required Lenders shall so object in writing within 30 days after
delivery of such financial statements, then such calculations shall be made on a
basis consistent with the most recent financial statements delivered by the
Borrower to the Lenders as to which no such objection shall have been made.

         1.4 TIME.

         All references to time herein shall be references to Central Standard
Time or Central Daylight time, as the case may be, unless specified otherwise.

                                   SECTION 2.

                                      LOANS

         2.1 BRIDGE LOAN COMMITMENT.

                  (a) Bridge Loans. Subject to the terms and conditions set
         forth herein, each Lender severally agrees to make loans to the
         Borrower in Dollars, at any time and from time to time, during the
         period from the Effective Date to the Maturity Date (each a "Bridge
         Loan" and collectively the "Bridge Loans"); provided, however, that (i)
         the aggregate amount of Bridge Loans outstanding shall not exceed the
         Bridge Loan Commitment and (ii) with respect to each individual Lender,
         the Lender's Commitment Percentage multiplied by the outstanding Bridge
         Loans shall not exceed such Lender's Commitment.

         2.2 METHOD OF BORROWING FOR BRIDGE LOANS.

         By no later than 11:00 a.m. (a) on the date of the requested borrowing
of Bridge Loans that will be Base Rate Loans or (b) three Business Days prior to
the date of the requested borrowing of Bridge Loans that will be Eurodollar
Loans, the Borrower shall telephone the Administrative Agent as well as submit a
written Notice of Borrowing in the form of Exhibit 2.2 to the Administrative
Agent setting forth (i) the amount requested, (ii) whether such Loans shall

                                       13
<PAGE>

accrue interest at the Base Rate or the Adjusted Eurodollar Rate, (iii) with
respect to Loans that will be Eurodollar Loans, the Interest Period applicable
thereto and (iv) certification that the Borrower has complied in all respects
with Section 5.2. There may be no more than five (5) Borrowings of Bridge Loans
under this Credit Agreement.

         2.3 FUNDING OF BRIDGE LOANS.

         Upon receipt of a Notice of Borrowing, the Administrative Agent shall
promptly inform the Lenders as to the terms thereof. Each such Lender shall make
its Commitment Percentage of the requested Bridge Loans available to the
Administrative Agent by 1:00 p.m. on the date specified in the Notice of
Borrowing by deposit, in Dollars, of immediately available funds at the Agency
Services Address. The amount of the requested Bridge Loans will then be made
available to the Borrower by the Administrative Agent by crediting the account
of the Borrower on the books of such office of the Administrative Agent, to the
extent the amount of such Bridge Loans are made available to the Administrative
Agent.

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

         2.4 CONTINUATIONS AND CONVERSIONS.

         The Borrower shall have the option, on any Business Day, to continue
existing Eurodollar Loans for a subsequent Interest Period, to convert Base Rate
Loans into Eurodollar Loans or to convert Eurodollar Loans into Base Rate Loans;
provided, however, that (a) each such continuation or conversion must be
requested by the Borrower pursuant to a written Notice of
Continuation/Conversion, in the form of Exhibit 2.4, in compliance with the
terms set forth below, (b) except as provided in Section 4.1, Eurodollar Loans
may only be continued or converted into Base Rate Loans on the last day of the
Interest Period applicable thereto, (c) Eurodollar Loans may not be continued
nor may Base Rate Loans be converted into

                                       14
<PAGE>

Eurodollar Loans during the existence and continuation of a Default or Event of
Default and (d) any request to extend a Eurodollar Loan that fails to comply
with the terms hereof or any failure to request an extension of a Eurodollar
Loan at the end of an Interest Period shall constitute a conversion to a Base
Rate Loan on the last day of the applicable Interest Period. Each continuation
or conversion must be requested by the Borrower no later than 11:00 a.m. (i) on
the date for a requested conversion of a Eurodollar Loan to a Base Rate Loan or
(ii) three Business Days prior to the date for a requested continuation of a
Eurodollar Loan or conversion of a Base Rate Loan to a Eurodollar Loan, in each
case pursuant to a written Notice of Continuation/Conversion submitted to the
Administrative Agent which shall set forth (A) whether the Borrower wishes to
continue or convert such Loans and (B) if the request is to continue a
Eurodollar Loan or convert a Base Rate Loan to a Eurodollar Loan, the Interest
Period applicable thereto.

         2.5 MINIMUM AMOUNTS.

         Each request for a Loan or a conversion or continuation hereunder shall
be subject to the following requirements: (a) each Eurodollar Loan shall be in a
minimum of $5,000,000 (and in integral multiples of $1,000,000 in excess
thereof), (b) each Base Rate Loan shall be in a minimum amount of the lesser of
$5,000,000 (and in integral multiples of $1,000,000 in excess thereof) or the
remaining amount of the Bridge Loan Commitment available to be borrowed and (c)
no more than five Eurodollar Loans shall be outstanding hereunder at any one
time. For the purposes of this Section 2.5, all Eurodollar Loans with the same
Interest Periods that begin and end on the same date shall be considered as one
Eurodollar Loan, but Eurodollar Loans with different Interest Periods, even if
they begin on the same date, shall be considered separate Eurodollar Loans.

         2.6 REDUCTIONS OF BRIDGE LOAN COMMITMENT.

                  (a) Voluntary. Upon at least three Business Days' prior
         written notice, the Borrower shall have the right to permanently
         terminate or reduce the aggregate unused amount of the Bridge Loan
         Commitment at any time or from time to time; provided that (a) each
         partial reduction shall be in an aggregate amount at least equal to
         $5,000,000 and in integral multiples of $1,000,000 above such amount
         and (b) no reduction shall be made which would reduce the Bridge Loan
         Commitment to an amount less than the sum of the then outstanding
         Bridge Loans. Any reduction in (or termination of) the Bridge Loan
         Commitment shall be permanent and may not be reinstated.

                  (b) Mandatory. Concurrently with the receipt by the Borrower
         or any Subsidiary of any Net Cash Proceeds of any public offering of
         common stock or any issuance of long-term indebtedness for borrowed
         money or any other long-term capital markets issuance of the Borrower
         or any Subsidiary, the aggregate unused amount of the Bridge Loan
         Commitment shall be reduced by the amount of such Net Cash Proceeds not
         applied as a mandatory prepayment of Bridge Loans pursuant to Section
         3.2(b). Any reduction in the Bridge Loan Commitment shall be permanent
         and may not be reinstated.

                                       15
<PAGE>

         2.7 NOTES.

                  The Bridge Loans made by the Lenders shall be evidenced by a
         promissory note of the Borrower payable to each Lender in substantially
         the form of Exhibit 2.7 (the "Bridge Loan Notes").

         The date, amount, type, interest rate and duration of Interest Period
(if applicable) of each Loan made by each Lender to the Borrower, and each
payment made on account of the principal thereof, shall be recorded by such
Lender on its books; provided that the failure of such Lender to make any such
recordation or endorsement shall not affect the obligations of the Borrower to
make a payment when due of any amount owing hereunder or under any Note in
respect of the Loans to be evidenced by such Note, and each such recordation or
endorsement shall be conclusive and binding absent manifest error.

                                   SECTION 3.

                                    PAYMENTS

         3.1 INTEREST.

                  (a) Interest Rate.

                           (i) All Base Rate Loans shall accrue interest at the
                  Base Rate.

                           (ii) All Eurodollar Loans shall accrue interest at
                  the Adjusted Eurodollar Rate applicable to each Eurodollar
                  Loan.

                  (b) Default Rate of Interest. Upon the occurrence, and during
         the continuation, of an Event of Default, the principal of and, to the
         extent permitted by law, interest on the Loans and any other amounts
         owing hereunder or under the other Credit Documents shall bear
         interest, payable on demand, at a per annum rate equal to two percent
         (2%) plus the rate which would otherwise be applicable (or if no rate
         is applicable, then the rate for Bridge Loans that are Base Rate Loans
         plus two percent (2%) per annum).

                  (c) Interest Payments. Interest on Loans shall be due and
         payable in arrears on each Interest Payment Date.

         3.2 PREPAYMENTS.

                  (a) Voluntary Prepayments. The Borrower shall have the right
         to prepay Loans in whole or in part from time to time without premium
         or penalty; provided, however, that (i) Eurodollar Loans may only be
         prepaid on three Business Days' prior written notice to the
         Administrative Agent and any prepayment of Eurodollar Loans will be
         subject to Section 4.3; and (ii) each such partial prepayment of Loans
         shall be in the minimum principal amount of $5,000,000 and in integral
         multiples of $1,000,000 above

                                       16
<PAGE>

         such amount. Amounts prepaid hereunder shall be applied as the Borrower
         may elect; provided that if the Borrower fails to specify the
         application of a voluntary prepayment then such prepayment shall be
         applied first to Base Rate Loans and then to Eurodollar Loans in direct
         order of Interest Period maturities. Once prepaid, the amount of such
         Bridge Loans may not be re-borrowed.

                  (b) Mandatory Prepayments.

                           (i) If at any time the amount of Bridge Loans
                  outstanding exceeds the Bridge Loan Commitment, the Borrower
                  shall immediately make a principal payment to the
                  Administrative Agent in the manner and in an amount such that
                  the amount of Bridge Loans outstanding is less than or equal
                  to the Bridge Loan Commitment.

                           (ii) Concurrently with the receipt by the Borrower or
                  any Subsidiary of any Net Cash Proceeds of any public offering
                  of common stock or any issuance of long-term indebtedness for
                  borrowed money or any other long-term capital markets issuance
                  of the Borrower or any Subsidiary, the Borrower shall
                  immediately make a principal payment of Bridge Loans to the
                  Administrative Agent in an amount equal to 100% of such Net
                  Cash Proceeds.

                  Any payments made under this Section 3.2(b) shall be subject
         to Section 4.3 and shall be applied first to Base Rate Loans and then
         to Eurodollar Loans in direct order of Interest Period maturities. Once
         prepaid, the amount of such Bridge Loans may not be re-borrowed.

         3.3 PAYMENT IN FULL AT MATURITY.

         On the Maturity Date, the entire outstanding principal balance of all
Loans, together with accrued but unpaid interest and all other sums owing under
this Credit Agreement and the other Credit Documents, shall be due and payable
in full, unless accelerated sooner pursuant to Section 9.2.

         3.4 FEES.

                  (a) Unused Fees.

                           (i) In consideration of the Bridge Loan Commitment
                  being made available by the Lenders hereunder, the Borrower
                  agrees to pay to the Administrative Agent, for the pro rata
                  benefit of each Lender, a per annum fee equal to the
                  Applicable Percentage for Unused Fees (as set forth on the
                  Pricing Schedule) on the Unused Bridge Loan Commitment (the
                  "Unused Fees").

                           (ii) The accrued Unused Fees shall be due and payable
                  in arrears five Business Days after the end of each fiscal
                  quarter of the Borrower (as well as on the Maturity Date) for
                  the immediately preceding fiscal quarter (or portion thereof),
                  beginning with the first of such dates to occur after the date
                  of execution of this Credit Agreement.

                                       17
<PAGE>

                  (b) Utilization Fees. For each day that the principal amount
         of outstanding Loans hereunder shall exceed an amount equal to thirty
         three and one third percent (33 1/3%) of the Bridge Loan Commitment,
         the Borrower shall pay to the Administrative Agent, for the pro rata
         benefit of the Lenders, a per annum fee equal to the Applicable
         Percentage for Utilization Fees as set forth on the Pricing Schedule
         (the "Utilization Fees"). The Utilization Fees, if any, shall be due
         and payable in arrears five Business Days after the end of each fiscal
         quarter of the Borrower (as well as on the Maturity Date) for the
         immediately preceding fiscal quarter (or portion thereof), beginning
         with the first of such dates to occur after the Effective Date.

         3.5 PLACE AND MANNER OF PAYMENTS.

         All payments of principal, interest, fees, expenses and other amounts
to be made by the Borrower under this Credit Agreement shall be made
unconditionally and without setoff, deduction, defense, recoupment or
counterclaim and received not later than 2:00 p.m. on the date when due, in
Dollars and in immediately available funds, by the Administrative Agent at the
Agency Services Address. In the event any such payment shall be due on a day
that is not a Business Day, the applicable payment date shall be the next
succeeding Business Day, except, with respect to Eurodollar Loans, if the next
succeeding Business Day shall fall in the next succeeding calendar month, then
such payment shall be due on the next preceding Business Day. The Borrower
shall, at the time it makes any payment under this Credit Agreement, specify to
the Administrative Agent, the Loans, fees or other amounts payable by the
Borrower hereunder to which such payment is to be applied (and in the event that
it fails to specify, or if such application would be inconsistent with the terms
hereof, the Administrative Agent shall distribute such payment to the Lenders in
such manner as it reasonably determines in its sole discretion.)

         3.6 PRO RATA TREATMENT.

         Except to the extent otherwise provided herein, all Bridge Loans, each
payment or prepayment of principal of any Bridge Loan, each payment of interest
on the Bridge Loans, each payment of Unused Fees, each payment of Utilization
Fees, each reduction of the Bridge Loan Commitment, and each conversion or
continuation of any Bridge Loans, shall be allocated pro rata among the Lenders
in accordance with the respective Commitment Percentages; provided that, if any
Lender shall have failed to pay its applicable pro rata share of any Bridge
Loan, then any amount to which such Lender would otherwise be entitled pursuant
to this Section 3.6 shall instead be payable to the Administrative Agent until
the share of such Bridge Loan not funded by such Lender has been repaid and any
interest owed by such Lender as a result of such failure to fund has been paid;
and provided further, that in the event any amount paid to any Lender pursuant
to this Section 3.6 is rescinded or must otherwise be returned by the
Administrative Agent, each Lender shall, upon the request of the Administrative
Agent, repay to the Administrative Agent the amount so paid to such Lender, with
interest for the period commencing on the date such payment is returned by the
Administrative Agent until the date the Administrative Agent receives such
repayment at a rate per annum equal to, during the period to but excluding the
date two Business Days after such request, the Federal Funds Rate, and
thereafter, the Base Rate plus two percent (2%) per annum.

                                       18
<PAGE>

         3.7 COMPUTATIONS OF INTEREST AND FEES.

                  (a) Except for Base Rate Loans accruing interest at the Prime
         Rate, which interest shall be computed on the basis of a 365 or 366 day
         year as the case may be, all computations of interest and fees
         hereunder shall be made on the basis of the actual number of days
         elapsed over a year of 360 days. Interest shall accrue from the date a
         Loan is made until the date such Loan is repaid or continued or
         converted pursuant to Section 2.4.

                  (b) It is the intent of the Lenders and the Borrower to
         conform to and contract in strict compliance with applicable usury law
         from time to time in effect. All agreements between the Lenders and the
         Borrower are hereby limited by the provisions of this paragraph which
         shall override and control all such agreements, whether now existing or
         hereafter arising and whether written or oral. In no way, nor in any
         event or contingency (including but not limited to prepayment or
         acceleration of the maturity of any obligation), shall the interest
         taken, reserved, contracted for, charged, or received under this Credit
         Agreement, under the Notes or otherwise, exceed the maximum nonusurious
         amount permissible under applicable law. If, from any possible
         construction of any of the Credit Documents or any other document,
         interest would otherwise be payable in excess of the maximum
         nonusurious amount, any such construction shall be subject to the
         provisions of this paragraph and interest owing pursuant to such
         documents shall be automatically reduced to the maximum nonusurious
         amount permitted under applicable law, without the necessity of
         execution of any amendment or new document. If any Lender shall ever
         receive anything of value which is characterized as interest on the
         Loans under applicable law and which would, apart from this provision,
         be in excess of the maximum lawful amount, an amount equal to the
         amount which would have been excessive interest shall, without penalty,
         be applied to the reduction of the principal amount owing on the Loans
         and not to the payment of interest, or refunded to the Borrower or the
         other payor thereof if and to the extent such amount which would have
         been excessive exceeds such unpaid principal amount of the Loans. The
         right to demand payment of the Loans or any other indebtedness
         evidenced by any of the Credit Documents does not include the right to
         receive any interest which has not otherwise accrued on the date of
         such demand, and the Lenders do not intend to charge or receive any
         unearned interest in the event of such demand. All interest paid or
         agreed to be paid to the Lenders with respect to the Loans shall, to
         the extent permitted by applicable law, be amortized, prorated,
         allocated, and spread throughout the full stated term (including any
         renewal or extension) of the Loans so that the amount of interest on
         account of such indebtedness does not exceed the maximum nonusurious
         amount permitted by applicable law.

         3.8 SHARING OF PAYMENTS.

         Each Lender agrees that, in the event that any Lender shall obtain
payment in respect of any Loan or any other obligation owing to such Lender
under this Credit Agreement through the exercise of a right of set-off, banker's
lien, counterclaim or otherwise (including, but not limited to, pursuant to the
Bankruptcy Code) in excess of its pro rata share as provided for in this Credit
Agreement, such Lender shall promptly purchase from the other Lenders a
participation in such

                                       19
<PAGE>

Loans and other obligations, in such amounts and with such other adjustments
from time to time, as shall be equitable in order that all Lenders share such
payment in accordance with their respective ratable shares as provided for in
this Credit Agreement. Each Lender further agrees that if a payment to a Lender
(which is obtained by such Lender through the exercise of a right of set-off,
banker's lien, counterclaim or otherwise) shall be rescinded or must otherwise
be restored, each Lender which shall have shared the benefit of such payment
shall, by repurchase of a participation theretofore sold, return its share of
that benefit to each Lender whose payment shall have been rescinded or otherwise
restored. The Borrower agrees that any Lender so purchasing such a participation
may, to the fullest extent permitted by law, exercise all rights of payment,
including set-off, banker's lien or counterclaim, with respect to such
participation as fully as if such Lender were a holder of such Loan or other
obligation in the amount of such participation. Except as otherwise expressly
provided in this Credit Agreement, if any Lender shall fail to remit to the
Administrative Agent or any other Lender an amount payable by such Lender to the
Administrative Agent or such other Lender pursuant to this Credit Agreement on
the date when such amount is due, such payments shall accrue interest thereon,
for each day from the date such amount is due until the day such amount is paid
to the Administrative Agent or such other Lender, at a rate per annum equal to
the Federal Funds Rate. If under any applicable bankruptcy, insolvency or other
similar law, any Lender receives a secured claim in lieu of a setoff to which
this Section 3.8 applies, such Lender shall, to the extent practicable, exercise
its rights in respect of such secured claim in a manner consistent with the
rights of the Lenders under this Section 3.8 to share in the benefits of any
recovery on such secured claim.

         3.9 EVIDENCE OF DEBT.

                  (a) Each Lender shall maintain an account or accounts
         evidencing each Loan made by such Lender to the Borrower from time to
         time, including the amounts of principal and interest payable and paid
         to such Lender from time to time under this Credit Agreement. Each
         Lender will make reasonable efforts to maintain the accuracy of its
         account or accounts and to promptly update its account or accounts from
         time to time, as necessary.

                  (b) The Administrative Agent shall maintain the Register
         pursuant to Section 11.3(c), and a subaccount for each Lender, in which
         Register and subaccounts (taken together) shall be recorded (i) the
         amount, type and Interest Period of each such Loan hereunder, (ii) the
         amount of any principal or interest due and payable or to become due
         and payable to each Lender hereunder and (iii) the amount of any sum
         received by the Administrative Agent hereunder from or for the account
         of the Borrower and each Lender's share thereof. The Administrative
         Agent will make reasonable efforts to maintain the accuracy of the
         subaccounts referred to in the preceding sentence and to promptly
         update such subaccounts from time to time, as necessary.

                  (c) The entries made in the accounts, Register and subaccounts
         maintained pursuant to subsection (b) of this Section 3.9 (and, if
         consistent with the entries of the Administrative Agent, subsection
         (a)) shall be prima facie evidence of the existence and amounts of the
         obligations of the Borrower therein recorded; provided, however, that
         the failure of any Lender or the Administrative Agent to maintain any
         such account, such Register or such subaccount, as applicable, or any
         error therein, shall not in any manner

                                       20
<PAGE>

         affect the obligation of the Borrower to repay the Loans made by such
         Lender in accordance with the terms hereof.

                                   SECTION 4.

                      ADDITIONAL PROVISIONS REGARDING LOANS

         4.1 EURODOLLAR LOAN PROVISIONS.

                  (a) Unavailability. In the event that the Administrative Agent
         shall have determined in good faith (i) that U.S. dollar deposits in
         the principal amounts requested with respect to a Eurodollar Loan are
         not generally available in the London interbank Eurodollar market or
         (ii) that reasonable means do not exist for ascertaining the Eurodollar
         Rate, the Administrative Agent shall, as soon as practicable
         thereafter, give notice of such determination to the Borrower and the
         Lenders. In the event of any such determination under clauses (i) or
         (ii) above, until the Administrative Agent shall have advised the
         Borrower and the Lenders that the circumstances giving rise to such
         notice no longer exist, (A) any request by the Borrower for Eurodollar
         Loans shall be deemed to be a request for Base Rate Loans, (B) any
         request by the Borrower for conversion into or continuation of
         Eurodollar Loans shall be deemed to be a request for conversion into or
         continuation of Base Rate Loans and (C) any Loans that were to be
         converted or continued as Eurodollar Loans on the first day of an
         Interest Period shall be converted to or continued as Base Rate Loans.

                  (b) Change in Legality.

                           (i) Notwithstanding any other provision herein, if
                  any change, after the date hereof, in any law, governmental
                  rule, regulation, guideline or order (including the
                  introduction of any new law, governmental rule, regulation,
                  guideline or order) or in the interpretation or administration
                  thereof by any Governmental Authority charged with the
                  interpretation or administration thereof shall make it
                  unlawful for any Lender to make or maintain any Eurodollar
                  Loan or to give effect to its obligations as contemplated
                  hereby with respect to any Eurodollar Loan, then, by written
                  notice to the Borrower and to the Administrative Agent, such
                  Lender may:

                                    (A) declare that Eurodollar Loans, and
                           conversions to or continuations of Eurodollar Loans,
                           will not thereafter be made by such Lender hereunder,
                           whereupon any request by the Borrower for, or for
                           conversion into or continuation of, Eurodollar Loans
                           shall, as to such Lender only, be deemed a request
                           for, or for conversion into or continuation of, Base
                           Rate Loans, unless such declaration shall be
                           subsequently withdrawn; and

                                    (B) require that all outstanding Eurodollar
                           Loans made by it be converted to Base Rate Loans in
                           which event all such Eurodollar Loans shall be
                           automatically converted to Base Rate Loans.

                                       21
<PAGE>

                  In the event any Lender shall exercise its rights under clause
         (A) or (B) above, all payments and prepayments of principal which would
         otherwise have been applied to repay the Eurodollar Loans that would
         have been made by such Lender or the converted Eurodollar Loans of such
         Lender shall instead be applied to repay the Base Rate Loans made by
         such Lender in lieu of, or resulting from the conversion of, such
         Eurodollar Loans.

                  (c) Requirements of Law. If at any time a Lender shall incur
         increased costs or reductions in the amounts received or receivable
         hereunder with respect to the making, the commitment to make or the
         maintaining of any Eurodollar Loan because of (i) any change after the
         date hereof, in any law, governmental rule, regulation, guideline or
         order (including the introduction of any new law, governmental rule,
         regulation, guideline or order) or in the interpretation or
         administration thereof by any Governmental Authority charged with the
         interpretation or administration thereof, including, without
         limitation, the imposition, modification or deemed applicability of any
         reserves, deposits or similar requirements (such as, for example, but
         not limited to, a change in official reserve requirements, but, in all
         events, excluding reserves required under Regulation D to the extent
         included in the computation of the Adjusted Eurodollar Rate) or (ii)
         other circumstances affecting the London interbank Eurodollar market;
         then (A) the Lender shall promptly notify the Administrative Agent and
         the Borrower and shall designate a different lending office of such
         Lender if such designation will avoid or reduce the amount of such
         increased costs, or reductions in amounts receivable and such
         designation will not, in such Lender's sole discretion, be otherwise
         disadvantageous to such Lender and (B) the Borrower shall promptly pay
         to such Lender such additional amounts (in the form of an increased
         rate of, or a different method of calculating, interest or otherwise as
         such Lender may determine in its sole discretion) as may be required to
         compensate such Lender for such increased costs or reductions in
         amounts receivable hereunder.

         Each determination and calculation made by a Lender under this Section
4.1 shall, absent manifest error, be binding and conclusive on the parties
hereto. Any conversions of Eurodollar Loans made pursuant to this Section 4.1
shall subject the Borrower to the payments required by Section 4.3. This Section
4.1 shall survive termination of this Credit Agreement and the other Credit
Documents and the payment of the Loans and all other amounts payable hereunder.

         4.2 CAPITAL ADEQUACY.

         If any Lender has determined in good faith that the adoption or
effectiveness, after the date hereof, of any applicable law, rule or regulation
regarding capital adequacy, or any change therein (after the date hereof), or
any change in the interpretation or administration thereof by any Governmental
Authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by such Lender (or its parent corporation)
with any request or directive regarding capital adequacy (whether or not having
the force of law) of any such authority, central bank or comparable agency, has
or would have the effect of reducing the rate of return on such Lender's (or
parent corporation's) capital or assets as a consequence of its commitments or
obligations hereunder to a level below that which such Lender (or its parent
corporation) could have achieved but for such adoption, effectiveness, change or
compliance (taking into consideration such Lender's (or parent corporation's)
policies with respect to capital

                                       22
<PAGE>

adequacy), then, upon notice from such Lender, the Borrower shall promptly pay
to such Lender such additional amount or amounts as will compensate such Lender
for such reduction. Each determination by any such Lender of amounts owing under
this Section 4.2 shall, absent manifest error, be conclusive and binding on the
parties hereto. This Section 4.2 shall survive termination of this Credit
Agreement and the other Credit Documents and the payment of the Loans and all
other amounts payable hereunder.

         4.3 COMPENSATION.

         The Borrower promises to indemnify each Lender and to hold each Lender
harmless from any loss or expense which such Lender may sustain or incur as a
consequence of (a) default by the Borrower in the making of a borrowing of,
conversion into or continuation of a Eurodollar Loan after the Borrower has
given a notice requesting the same in accordance with the provisions of this
Credit Agreement, (b) default by the Borrower in making any prepayment of a
Eurodollar Loan after the Borrower has given a notice thereof in accordance with
the provisions of this Credit Agreement, (c) the making of a prepayment of a
Eurodollar Loan on a day which is not the last day of an Interest Period with
respect thereto and (d) the payment, continuation or conversion of a Eurodollar
Loan on a day which is not the last day of the Interest Period applicable
thereto or the failure to repay a Eurodollar Loan when required by the terms of
this Credit Agreement. Each determination by any such Lender of amounts owing
under this Section 4.3 shall, absent manifest error, be conclusive and binding
on the parties hereto. This Section 4.3 shall survive the termination of this
Credit Agreement and the other Credit Documents and the payment of the Loans and
all other amounts payable hereunder.

         4.4 TAXES.

                  (a) Except as provided below in this Section 4.4, all payments
         made by the Borrower under this Credit Agreement and any Notes shall be
         made free and clear of, and without deduction or withholding for or on
         account of, any present or future income, stamp or other taxes, levies,
         imposts, duties, charges, fees, deductions or withholdings, now or
         hereafter imposed, levied, collected, withheld or assessed by any
         court, or governmental body, agency or other official, excluding taxes
         measured by or imposed upon the net income of any Lender or its
         applicable lending office, or any branch or affiliate thereof, and all
         franchise taxes, branch taxes, taxes on doing business or taxes on the
         capital or net worth of any Lender or its applicable lending office, or
         any branch or affiliate thereof, in each case imposed in lieu of net
         income taxes: (i) by the jurisdiction under the laws of which such
         Lender, applicable lending office, branch or affiliate is organized or
         is located, or in which its principal executive office is located, or
         any nation within which such jurisdiction is located or any political
         subdivision thereof; or (ii) by reason of any connection between the
         jurisdiction imposing such tax and such Lender, applicable lending
         office, branch or affiliate other than a connection arising solely from
         such Lender having executed, delivered or performed its obligations, or
         received payment under or enforced, this Credit Agreement or any Notes.
         If any such non-excluded taxes, levies, imposts, duties, charges, fees,
         deductions or withholdings ("Non-Excluded Taxes") are required to be
         withheld from any amounts payable to an Administrative Agent or any
         Lender hereunder or under any Notes, (A) the amounts so payable to the
         Administrative Agent or such Lender shall be increased to the extent
         necessary to yield to

                                       23
<PAGE>

         the Administrative Agent or such Lender (after payment of all
         Non-Excluded Taxes) interest or any such other amounts payable
         hereunder at the rates or in the amounts specified in this Credit
         Agreement and any Notes, provided, however, that the Borrower shall be
         entitled to deduct and withhold any Non-Excluded Taxes and shall not be
         required to increase any such amounts payable to any Lender that is not
         organized under the laws of the United States of America or a state
         thereof if such Lender fails to comply with the requirements of
         paragraph (b) of this Section 4.4 whenever any Non-Excluded Taxes are
         payable by the Borrower, and (B) as promptly as possible after
         requested, the Borrower shall send to the Administrative Agent for its
         own account or for the account of such Lender, as the case may be, a
         certified copy of an original official receipt received by the Borrower
         showing payment thereof. If the Borrower fails to pay any Non-Excluded
         Taxes when due to the appropriate taxing authority or fails to remit to
         the Administrative Agent the required receipts or other required
         documentary evidence, the Borrower shall indemnify the Administrative
         Agent and any Lender for any incremental Non-Excluded Taxes, interest
         or penalties that may become payable by the Administrative Agent or any
         Lender as a result of any such failure. The agreements in this Section
         4.4 shall survive the termination of this Credit Agreement and the
         payment of the Loans and all other amounts payable hereunder.

                  (b) Each Lender that is not incorporated under the laws of the
         United States of America or a state thereof shall:

                           (i) (A) on or before the date of any payment by the
                  Borrower under this Credit Agreement or the Notes to such
                  Lender, deliver to the Borrower and the Administrative Agent
                  (x) two duly completed copies of United States Internal
                  Revenue Service Form W8-BEN or W8-ECI, or successor applicable
                  form, as the case may be, certifying that it is entitled to
                  receive payments under this Credit Agreement and any Notes
                  without deduction or withholding of any United States federal
                  income taxes and (y) an Internal Revenue Service Form W-8 or
                  W-9, or successor applicable form, as the case may be,
                  certifying that it is entitled to an exemption from United
                  States backup withholding tax;

                                (B) deliver to the Borrower and the
                  Administrative Agent two further copies of any such form or
                  certification on or before the date that any such form or
                  certification expires or becomes obsolete and after the
                  occurrence of any event requiring a change in the most recent
                  form previously delivered by it to the Borrower; and

                                (C) obtain such extensions of time for filing
                  and complete such forms or certifications as may reasonably be
                  requested by the Borrower or the Administrative Agent; or

                           (ii) in the case of any such Lender that is not a
                  "bank" within the meaning of Section 881(c)(3)(A) of the
                  Internal Revenue Code, (A) represent to the Borrower (for the
                  benefit of the Borrower and the Administrative Agent) that it
                  is not a bank within the meaning of Section 881 (c)(3)(A) of
                  the Internal Revenue Code, (B) agree to furnish to the
                  Borrower, on or before the date of any

                                       24
<PAGE>

                  payment by the Borrower, with a copy to the Administrative
                  Agent, two accurate and complete original signed copies of
                  Internal Revenue Service Form W-8, or successor applicable
                  form certifying to such Lender's legal entitlement at the date
                  of such certificate to an exemption from U.S. withholding tax
                  under the provisions of Section 881(c) of the Internal Revenue
                  Code with respect to payments to be made under this Credit
                  Agreement and any Notes (and to deliver to the Borrower and
                  the Administrative Agent two further copies of such form on or
                  before the date it expires or becomes obsolete and after the
                  occurrence of any event requiring a change in the most
                  recently provided form and, if necessary, obtain any
                  extensions of time reasonably requested by the Borrower or the
                  Administrative Agent for filing and completing such forms),
                  and (C) agree, to the extent legally entitled to do so, upon
                  reasonable request by the Borrower, to provide to the Borrower
                  (for the benefit of the Borrower and the Administrative Agent)
                  such other forms as may be reasonably required in order to
                  establish the legal entitlement of such Lender to an exemption
                  from withholding with respect to payments under this Credit
                  Agreement and any Notes.

                           Notwithstanding the above, if any change in treaty,
                  law or regulation has occurred after the date such Person
                  becomes a Lender hereunder which renders all such forms
                  inapplicable or which would prevent such Lender from duly
                  completing and delivering any such form with respect to it and
                  such Lender so advises the Borrower and the Administrative
                  Agent, then such Lender shall be exempt from such
                  requirements. Each Person that shall become a Lender or a
                  participant of a Lender pursuant to Section 11.3 shall, upon
                  the effectiveness of the related transfer, be required to
                  provide all of the forms, certifications and statements
                  required pursuant to this subsection (b); provided that in the
                  case of a participant of a Lender, the obligations of such
                  participant of a Lender pursuant to this subsection (b) shall
                  be determined as if the participant of a Lender were a Lender
                  except that such participant of a Lender shall furnish all
                  such required forms, certifications and statements to the
                  Lender from which the related participation shall have been
                  purchased.

                                   SECTION 5.

                              CONDITIONS PRECEDENT

         5.1 CLOSING CONDITIONS.

         The obligation of the Lenders to enter into this Credit Agreement is
subject to satisfaction (or waiver) of the following conditions:

                  (a) Executed Credit Documents. Receipt by the Administrative
         Agent of duly executed copies of (i) this Credit Agreement, (ii) the
         Notes and (iii) all other Credit Documents, each in form and substance
         acceptable to the Lenders.

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

                                       25
<PAGE>

                           (i) Charter Documents. Copies of the articles of
                  incorporation or other charter documents of the Borrower
                  certified to be true and complete as of a recent date by the
                  appropriate Governmental Authorities of the states or other
                  jurisdictions of its incorporation and certified by a
                  secretary or assistant secretary of the Borrower to be true
                  and correct as of the Closing Date.

                           (ii) Bylaws. A copy of the bylaws of the Borrower
                  certified by a secretary or assistant secretary of the
                  Borrower to be true and correct as of the Closing Date.

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

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

                           (v) Incumbency. An incumbency certificate of the
                  Borrower certified by a secretary or assistant secretary of
                  the Borrower to be true and correct as of the Closing Date.

                  (c) Opinion of Counsel. Receipt by the Administrative Agent of
         an opinion, or opinions, from legal counsel to the Borrower addressed
         to the Administrative Agent on behalf of the Lenders and dated as of
         the Effective Date, in each case satisfactory in form and substance to
         the Administrative Agent.

                  (d) Financial Statements. Receipt by the Lenders of the
         consolidated audited financial statements of the Borrower and its
         Subsidiaries dated as of September 30, 2000 and September 30, 2001, and
         the unaudited financial statements for the quarters ending December 31,
         2001, March 31, 2002 and June 30, 2002, including balance sheets and
         income and cash flow statements, in each case audited (except for the
         quarterly financial statements) by independent public accountants of
         recognized standing and prepared in accordance with GAAP.

                  (e) Fees and Expenses. Payment by the Borrower of all fees and
         expenses owed by it to the Lenders and the Administrative Agent.

                  (f) Material Adverse Effect. No event or condition shall have
         occurred since June 30, 2002 that has had or would be reasonably
         expected to have a Material Adverse Effect.

                  (g) Officer's Certificates. The Administrative Agent shall
         have received a certificate or certificates executed by a Financial
         Officer of the Borrower as of the

                                       26
<PAGE>

         Effective Date stating that (i) the Borrower and its Subsidiaries are
         in compliance with all existing material financial obligations, (ii) no
         action, suit, investigation or legal, equitable, arbitration or
         administrative proceeding is pending or, to such officer's knowledge,
         threatened in any court or before any arbitrator or Governmental
         Authority that would have or be reasonably expected to have a Material
         Adverse Effect, (iii) the financial statements and information
         delivered to the Administrative Agent on or before the Effective Date
         were prepared in good faith and in accordance with GAAP and (iv)
         immediately after giving effect to this Credit Agreement, the other
         Credit Documents and all the transactions contemplated herein and
         therein to occur on such date, (A) no Default or Event of Default
         exists, (B) all representations and warranties contained herein and in
         the other Credit Documents are true and correct in all material
         respects on and as of the date made and (C) the Borrower is in
         compliance with the financial covenant set forth in Section 7.2.

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

         5.2 CONDITIONS TO LOANS.

         In addition to the conditions precedent stated elsewhere herein, the
Lenders shall not be obligated to make new Loans unless:

                  (a) Request. The Borrower shall have timely delivered a duly
         executed and completed Notice of Borrowing in conformance with all the
         terms and conditions of this Credit Agreement.

                  (b) Representations and Warranties. The representations and
         warranties made by the Borrower are true and correct in all material
         respects at and as if made as of the date of the funding of the
         requested Loans.

                  (c) No Default. No Default or Event of Default shall exist or
         be continuing either prior to or after giving effect thereto.

                  (d) Availability. Immediately after giving effect to the
         making of a Loan (and the application of the proceeds thereof) the sum
         of the amount of Bridge Loans outstanding shall not exceed the Bridge
         Loan Commitment.

The delivery of each Notice of Borrowing shall constitute a representation and
warranty by the Borrower of the correctness of the matters specified in
subsections (b) through (d) above.

                                   SECTION 6.

                         REPRESENTATIONS AND WARRANTIES

         The Borrower hereby represents and warrants to each Lender that:

                                       27
<PAGE>

         6.1 ORGANIZATION AND GOOD STANDING.

         The Borrower (a) is a corporation duly organized, validly existing and
in good standing under the laws of the jurisdictions of its incorporation, (b)
is duly qualified and in good standing as a foreign corporation authorized to do
business in every jurisdiction where the failure to so qualify would have or
would reasonably be expected to have a Material Adverse Effect and (c) has the
requisite corporate power and authority to own its properties and to carry on
its business as now conducted and as proposed to be conducted.

         6.2 DUE AUTHORIZATION.

         The Borrower (a) has the requisite corporate power and authority to
execute, deliver and perform this Credit Agreement and the other Credit
Documents and to incur the obligations herein and therein provided for and (b)
has been authorized by all necessary corporate action, to execute, deliver and
perform this Credit Agreement and the other Credit Documents.

         6.3 NO CONFLICTS.

         Neither the execution and delivery of the Credit Documents, nor the
consummation of the transactions contemplated therein, nor performance of and
compliance with the terms and provisions thereof by the Borrower will in any
material respect (a) violate or conflict with any provision of its articles of
incorporation or bylaws, (b) violate, contravene or conflict with any law
(including without limitation, the Public Utility Holding Company Act of 1935,
as amended), regulation (including without limitation, Regulation U, Regulation
X or any regulation promulgated by the Federal Energy Regulatory Commission),
order, writ, judgment, injunction, decree or permit applicable to it, (c)
violate, contravene or conflict with contractual provisions of, or cause an
event of default under, any indenture, loan agreement, mortgage, deed of trust,
contract or other agreement or instrument to which it is a party or by which it
or its properties may be bound, or (d) result in or require the creation of any
Lien upon or with respect to its properties.

         6.4 CONSENTS.

         No consent, approval, authorization or order of, or filing,
registration or qualification with, any court or Governmental Authority or third
party is required in connection with the execution, delivery or performance of
this Credit Agreement or any of the other Credit Documents.

         6.5 ENFORCEABLE OBLIGATIONS.

         This Credit Agreement and the other Credit Documents have been duly
executed and delivered and constitute legal, valid and binding obligations of
the Borrower enforceable against the Borrower in accordance with their
respective terms, except as may be limited by bankruptcy or insolvency laws or
similar laws affecting creditors' rights generally or by general equitable
principles.

                                       28
<PAGE>

         6.6 FINANCIAL CONDITION.

                  (a) The financial statements delivered to the Lenders pursuant
         to Section 5.1(d) and pursuant to Section 7.1(a) and (b): (i) have been
         prepared in accordance with GAAP (subject to the provisions of Section
         1.3) and (ii) present fairly in all material respects the financial
         condition, results of operations, and cash flows of the Borrower and
         its Subsidiaries as of such date and for such periods.

                  (b) Other than the MVG Acquisition, since June 30, 2002, there
         has been no sale, transfer or other disposition by the Borrower of any
         material part of the business or property of the Borrower, and no
         purchase or other acquisition by the Borrower of any business or
         property (including any Capital Stock of any other Person) material in
         relation to the financial condition of the Borrower, in each case which
         is not (i) reflected in the most recent financial statements delivered
         to the Lenders pursuant to Section 5.1(d) or 7.1 or in the notes
         thereto or (ii) otherwise permitted by the terms of this Credit
         Agreement and communicated to the Administrative Agent.

         6.7 NO MATERIAL CHANGE.

         Since June 30, 2002, there has been no development or event relating to
or affecting the Borrower or any of its Subsidiaries that has had or would be
reasonably expected to have a Material Adverse Effect, it being understood that
the consummation of the MVG Acquisition, in and of itself, does not constitute a
Material Adverse Effect.

         6.8 NO DEFAULT.

         No Default or Event of Default presently exists and is continuing.

         6.9 LITIGATION.

         There are no actions, suits, investigations or legal, equitable,
arbitration or administrative proceedings pending or, to the knowledge of the
Borrower, threatened against the Borrower, any of its Subsidiaries or any of its
properties which could have or be reasonably expected to have a Material Adverse
Effect.

         6.10 TAXES.

         The Borrower and its Subsidiaries have filed, or caused to be filed,
all tax returns (federal, state, local and foreign) required to be filed and
paid all amounts of taxes shown thereon to be due (including interest and
penalties) and has paid all other taxes, fees, assessments and other
governmental charges (including mortgage recording taxes, documentary stamp
taxes and intangibles taxes) owing by it, except for such taxes which are not
yet delinquent or that are being contested in good faith and by proper
proceedings, and against which adequate reserves are being maintained in
accordance with GAAP.

                                       29
<PAGE>

         6.11 COMPLIANCE WITH LAW.

         The Borrower and each of its Subsidiaries is in compliance with all
laws, rules, regulations, orders and decrees applicable to it or to its
properties, except where the failure to be in compliance would not have or would
not reasonably be expected to have a Material Adverse Effect.

         6.12 MATERIAL AGREEMENTS.

         Neither the Borrower nor any of its Subsidiaries is in default in any
respect under any contract, lease, loan agreement, indenture, mortgage, security
agreement or other agreement or obligation to which it is a party or by which
any of its properties is bound which default has had or would be reasonably
expected to have a Material Adverse Effect.

         6.13 ERISA.

         Except as would not result or be reasonably expected to result in a
Material Adverse Effect:

                  (a) During the five-year period prior to the date on which
         this representation is made or deemed made: (i) no Termination Event
         has occurred, and, to the best knowledge of the Borrower, no event or
         condition has occurred or exists as a result of which any Termination
         Event is reasonably expected to occur, with respect to any Plan; (ii)
         no "accumulated funding deficiency," as such term is defined in Section
         302 of ERISA and Section 412 of the Code, whether or not waived, has
         occurred with respect to any Plan; (iii) each Plan has been maintained,
         operated, and funded in material compliance with its own terms and in
         material compliance with the provisions of ERISA, the Code, and any
         other applicable federal or state laws; and (iv) no Lien in favor or
         the PBGC or a Plan has arisen or is reasonably expected to arise on
         account of any Plan.

                  (b) No liability has been or is reasonably expected by the
         Borrower to be incurred under Sections 4062, 4063 or 4064 of ERISA with
         respect to any Single Employer Plan by the Borrower or any of its
         Subsidiaries which has or would reasonably be expected to have a
         Material Adverse Effect.

                  (c) The actuarial present value of all "benefit liabilities"
         under each Single Employer Plan (determined within the meaning of
         Section 401(a)(2) of the Code, utilizing the actuarial assumptions used
         to fund such Plans), whether or not vested, did not, as of the last
         annual valuation date prior to the date on which this representation is
         made or deemed made, exceed the current value of the assets of such
         Plan allocable to such accrued liabilities, except as disclosed in the
         Borrower's financial statements.

                  (d) Neither the Borrower nor any ERISA Affiliate has incurred,
         or, to the best knowledge of the Borrower, is reasonably expected to
         incur, any withdrawal liability under ERISA to any Multiemployer Plan
         or Multiple Employer Plan. Neither the Borrower nor any ERISA Affiliate
         has received any notification that any Multiemployer Plan is in
         reorganization (within the meaning of Section 4241 of ERISA), is
         insolvent (within the meaning of Section 4245 of ERISA), or has been
         terminated (within the

                                       30
<PAGE>

         meaning of Title IV of ERISA), and no Multiemployer Plan is, to the
         best knowledge of the Borrower, reasonably expected to be in
         reorganization, insolvent, or terminated.

                  (e) No prohibited transaction (within the meaning of Section
         406 of ERISA or Section 4975 of the Code) or breach of fiduciary
         responsibility has occurred with respect to a Plan which has subjected
         or is reasonably likely to subject the Borrower or any ERISA Affiliate
         to any liability under Sections 406, 407, 409, 502(i), or 502(l) of
         ERISA or Section 4975 of the Code, or under any agreement or other
         instrument pursuant to which the Borrower or any ERISA Affiliate has
         agreed or is required to indemnify any person against any such
         liability.

                  (f) The present value (determined using actuarial and other
         assumptions which are reasonable with respect to the benefits provided
         and the employees participating) of the liability of the Borrower and
         each ERISA Affiliate for post-retirement welfare benefits to be
         provided to their current and former employees under Plans which are
         welfare benefit plans (as defined in Section 3(1) of ERISA), net of all
         assets under all such Plans allocable to such benefits, are reflected
         on the financial statements referenced in Section 7.1 in accordance
         with FASB 106.

                  (g) Each Plan which is a welfare plan (as defined in Section
         3(1) of ERISA) to which Sections 601-609 of ERISA and Section 4980B of
         the Code apply has been administered in compliance in all material
         respects with such sections.

         6.14 USE OF PROCEEDS.

         The proceeds of the Loans hereunder will be used solely for the
purposes specified in Section 7.8.

         6.15 GOVERNMENT REGULATION.

                  (a) No proceeds of the Loans will be used, directly or
         indirectly, for the purpose of purchasing or carrying any "margin
         stock" within the meaning of Regulation U, or for the purpose of
         purchasing or carrying or trading in any securities. If requested by
         any Lender or the Administrative Agent, the Borrower will furnish to
         the Administrative Agent and each Lender a statement to the foregoing
         effect in conformity with the requirements of FR Form U-1 referred to
         in Regulation U. No indebtedness being reduced or retired out of the
         proceeds of the Loans was or will be incurred for the purpose of
         purchasing or carrying any margin stock within the meaning of
         Regulation U or any "margin security" within the meaning of Regulation
         T. "Margin stock" within the meaning of Regulation U does not
         constitute more than 25% of the value of the consolidated assets of the
         Borrower and its Subsidiaries. None of the transactions contemplated by
         the Credit Documents (including, without limitation, the direct or
         indirect use of the proceeds of the Loans) will violate or result in a
         violation of the Securities Act or the Exchange Act.

                  (b) Neither the Borrower nor any of its Subsidiaries is (i) an
         "investment company" registered or required to be registered under the
         Investment Company Act of 1940, as amended, and is not controlled by an
         "investment company", or (ii) a "holding

                                       31
<PAGE>

         company", or a "subsidiary company" of a "holding company", or an
         "affiliate" of a "holding company" or of a "subsidiary" of a "holding
         company", within the meaning of the Public Utility Holding Company Act
         of 1935, as amended.

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

         6.16 DISCLOSURE.

         Neither this Credit Agreement nor any financial statements delivered to
the Lenders nor any other document, certificate or statement furnished to the
Lenders by or on behalf of the Borrower in connection with the transactions
contemplated hereby contains any untrue statement of a material fact or omits to
state a material fact necessary in order to make the statements contained
therein or herein, taken as a whole, not misleading.

         6.17 ENVIRONMENTAL MATTERS.

         Except as would not result or be reasonably expected to result in a
Material Adverse Effect: (a) each of the properties of the Borrower and its
Subsidiaries (the "Properties") and all operations at the Properties are in
compliance in all material respects with all applicable Environmental Laws, (b)
there is no violation of any Environmental Law with respect to the Properties or
the businesses operated by the Borrower or its Subsidiaries (the "Businesses"),
and (c) there are no conditions relating to the Businesses or Properties that
would reasonably be expected to give rise to a material liability under any
applicable Environmental Laws.

         6.18 INSURANCE.

         The Borrower and its Subsidiaries maintain insurance with responsible
and reputable insurance companies or associations in such amounts and covering
such risks as is usually carried by companies engaged in similar business and
owning similar properties in the same general areas in which the Borrower and
its Subsidiaries operate.

         6.19 FRANCHISES, LICENSES, ETC.

         The Borrower and its Subsidiaries possess (a) good title to, or the
legal right to use, all material properties and assets and (b) all material
franchises, certificates, licenses, permits and other authorizations, in each
case as are necessary for the operation of their respective businesses.

         6.20 SECURED INDEBTEDNESS.

         All of the secured indebtedness of the Borrower is set forth on
Schedule 6.20 or permitted by Section 8.6.

                                       32
<PAGE>

         6.21 SUBSIDIARIES.

         All Subsidiaries of the Borrower and the designation as to which such
Subsidiaries are Material Subsidiaries are set forth on Schedule 6.21. Schedule
6.21 may be updated from time to time by the Borrower.

                                   SECTION 7.

                              AFFIRMATIVE COVENANTS

         The Borrower hereby covenants and agrees that so long as this Credit
Agreement is in effect and until the Loans, together with interest, fees and
other obligations hereunder, have been paid in full and the Commitments shall
have terminated:

         7.1 INFORMATION COVENANTS.

         The Borrower will furnish, or cause to be furnished, to the
Administrative Agent (who shall forward copies thereof to each Lender):

                  (a) Annual Financial Statements. As soon as available, and in
         any event within 120 days after the close of each fiscal year of the
         Borrower, a consolidated balance sheet and income statement of the
         Borrower and its Subsidiaries, as of the end of such fiscal year,
         together with retained earnings and a consolidated statement of cash
         flows for such fiscal year setting forth in comparative form figures
         for the preceding fiscal year, all such financial information described
         above to be in reasonable form and detail and audited by independent
         certified public accountants of recognized national standing reasonably
         acceptable to the Administrative Agent and whose opinion shall be
         furnished to the Administrative Agent, shall be to the effect that such
         financial statements have been prepared in accordance with GAAP (except
         for changes with which such accountants concur) and shall not be
         limited as to the scope of the audit or qualified in any respect.

                  (b) Quarterly Financial Statements. As soon as available, and
         in any event within 65 days after the close of each fiscal quarter of
         the Borrower (other than the fourth fiscal quarter, in which case 120
         days after the end thereof) a consolidated balance sheet and income
         statement of the Borrower and its Subsidiaries, as of the end of such
         fiscal quarter, together with a related consolidated statement of cash
         flows for such fiscal quarter in each case setting forth in comparative
         form figures for the corresponding period of the preceding fiscal year,
         all such financial information described above to be in reasonable form
         and detail and reasonably acceptable to the Administrative Agent, and
         accompanied by a certificate of a Financial Officer of the Borrower to
         the effect that such quarterly financial statements fairly present in
         all material respects the financial condition of the Borrower and have
         been prepared in accordance with GAAP, subject to changes resulting
         from audit and normal year-end audit adjustments.

                  (c) Officer's Certificate. At the time of delivery of the
         financial statements provided for in Sections 7.1(a) and 7.1(b) above,
         a certificate of a Financial Officer of the Borrower, substantially in
         the form of Exhibit 7.1(c), (i) demonstrating compliance with

                                       33
<PAGE>

         Section 7.2 by calculation thereof as of the end of each such fiscal
         period and (ii) stating that no Default or Event of Default exists, or
         if any Default or Event of Default does exist, specifying the nature
         and extent thereof and what action the Borrower proposes to take with
         respect thereto.

                  (d) Reports. Promptly upon transmission or receipt thereof,
         copies of any filings and registrations with, and reports to or from,
         any Governmental Authority, including, without limitation, the
         Securities and Exchange Commission or any successor agency and any
         utility regulatory body.

                  (e) Notices. Upon the Borrower obtaining knowledge thereof,
         the Borrower will give written notice to the Administrative Agent
         immediately of (i) the occurrence of a Default or Event of Default,
         specifying the nature and existence thereof and what action the
         Borrower proposes to take with respect thereto and (ii) the occurrence
         of any of the following with respect to the Borrower or any Subsidiary:
         (A) the pendency or commencement of any litigation, arbitration or
         governmental proceeding against the Borrower or such Subsidiary which,
         if adversely determined, would have or would be reasonably expected to
         have a Material Adverse Effect or (B) the institution of any
         proceedings against the Borrower or such Subsidiary with respect to, or
         the receipt of notice by such Person of potential liability or
         responsibility for violation or alleged violation of, any federal,
         state or local law, rule or regulation (including, without limitation,
         any Environmental Law), the violation of which would have or would be
         reasonably expected to have a Material Adverse Effect.

                  (f) ERISA. Upon the Borrower or any ERISA Affiliate obtaining
         knowledge thereof, the Borrower will give written notice to the
         Administrative Agent and each of the Lenders promptly (and in any event
         within five Business Days) of: (i) any event or condition, including,
         but not limited to, any Reportable Event, that constitutes, or would be
         reasonably expected to lead to, a Termination Event; (ii) any
         communication from the PBGC stating its intention to terminate any Plan
         or to have a trustee appointed to administer any Plan together with a
         statement of the amount of liability, if any, incurred or expected to
         be incurred by the Borrower or any Subsidiary in connection therewith;
         (iii) with respect to any Multiemployer Plan, the receipt of notice as
         prescribed in ERISA or otherwise of any withdrawal liability assessed
         against the Borrower or any ERISA Affiliate, or of a determination that
         any Multiemployer Plan is in reorganization or insolvent (both within
         the meaning of Title IV of ERISA); (iv) the failure to make full
         payment on or before the due date (including extensions) thereof of all
         amounts which the Borrower or any of its Subsidiaries or ERISA
         Affiliates is required to contribute to each Plan pursuant to its terms
         and as required to meet the minimum funding standard set forth in ERISA
         and the Code with respect thereto; or (v) any change in the funding
         status of any Plan that would have or would be reasonably expected to
         have a Material Adverse Effect; together, with a description of any
         such event or condition or a copy of any such notice and a statement by
         a officer of the Borrower briefly setting forth the details regarding
         such event, condition, or notice, and the action, if any, which has
         been or is being taken or is proposed to be taken by the Borrower with
         respect thereto. Promptly upon request, the Borrower shall furnish the
         Administrative Agent and each of the Lenders with such additional
         information concerning any Plan as may be reasonably

                                       34
<PAGE>

         requested, including, but not limited to, copies of each annual
         report/return (Form 5500 series), as well as all schedules and
         attachments thereto required to be filed with the Department of Labor
         and/or the Internal Revenue Service pursuant to ERISA and the Code,
         respectively, for each "plan year" (within the meaning of Section 3(39)
         of ERISA).

                  (g) Other Information. With reasonable promptness upon any
         such request, such other information regarding the business, properties
         or financial condition of the Borrower as the Administrative Agent or
         the Required Lenders may reasonably request.

         7.2 DEBT TO CAPITALIZATION RATIO.

         At all times, the Debt to Capitalization Ratio shall be less than or
equal to 0.70 to 1.0.

         7.3 PRESERVATION OF EXISTENCE, FRANCHISES AND ASSETS.

         The Borrower will, and will cause its Subsidiaries to, do all things
necessary to preserve and keep in full force and effect its existence, rights,
franchises and authority, except where failure to do so would not or would not
reasonably be expected to have a Material Adverse Effect. The Borrower will, and
will cause its Subsidiaries to, generally maintain its properties, real and
personal, in good condition, and the Borrower and its Subsidiaries shall not
waste or otherwise permit such properties to deteriorate, reasonable wear and
tear excepted, except where failure to do so would not or would not reasonably
be expected to have a Material Adverse Effect.

         7.4 BOOKS AND RECORDS.

         The Borrower will, and will cause its Subsidiaries to, keep complete
and accurate books and records of its transactions in accordance with good
accounting practices on the basis of GAAP (including the establishment and
maintenance of appropriate reserves).

         7.5 COMPLIANCE WITH LAW.

         The Borrower will, and will cause its Subsidiaries to, comply with, and
obtain all permits and licenses required by, all laws (including, without
limitation, all Environmental Laws and ERISA laws), rules, regulations and
orders, and all applicable restrictions imposed by all Governmental Authorities,
applicable to it and its property, if the failure to comply would have or would
be reasonably expected to have a Material Adverse Effect.

         7.6 PAYMENT OF TAXES AND OTHER INDEBTEDNESS.

         The Borrower will, and will cause its Subsidiaries to, pay, settle or
discharge (a) all taxes, assessments and governmental charges or levies imposed
upon it, or upon its income or profits, or upon any of its properties, before
they shall become delinquent, (b) all lawful claims (including claims for labor,
materials and supplies) which, if unpaid, might give rise to a Lien upon any of
its properties, and (c) all of its other indebtedness as it shall become due (to
the extent such repayment is not otherwise prohibited by this Credit Agreement);
provided, however, that the Borrower shall not be required to pay any such tax,
assessment, charge, levy, claim or indebtedness which is being contested in good
faith by appropriate action and as to which

                                       35
<PAGE>

adequate reserves therefor, if required, have been established in accordance
with GAAP, unless the failure to make any such payment (i) would give rise to an
immediate right to foreclose or collect on a Lien securing such amounts or (ii)
would have or would reasonably be expected to have a Material Adverse Effect.

         7.7 INSURANCE.

         The Borrower will, and will cause its Subsidiaries to, at all times
maintain in full force and effect insurance (including worker's compensation
insurance, liability insurance, casualty insurance and business interruption
insurance) with responsible and reputable insurance companies in such amounts,
covering such risks and liabilities and with such deductibles or self-insurance
retentions as are in accordance with normal industry practice.

         7.8 USE OF PROCEEDS.

         The proceeds of the Loans will be used solely for the closing of the
MVG Acquisition and expenditures related thereto.

         7.9 AUDITS/INSPECTIONS.

         Upon reasonable prior notice and during normal business hours, the
Borrower will permit representatives appointed by the Administrative Agent,
including, without limitation, independent accountants, agents, attorneys, and
appraisers to visit and inspect the Borrower's and its Subsidiaries' property,
including their books and records, their accounts receivable and inventory, the
Borrower's and its Subsidiaries' facilities and their other business assets, and
to make photocopies or photographs thereof and to write down and record any
information such representative obtains and shall permit the Administrative
Agent or its representatives to investigate and verify the accuracy of
information provided to the Lenders and to discuss all such matters with the
officers, employees and representatives of the Borrower and its Subsidiaries.

                                   SECTION 8.

                               NEGATIVE COVENANTS

         The Borrower hereby covenants and agrees that so long as this Credit
Agreement is in effect and until the Loans, together with interest, fees and
other obligations hereunder, have been paid in full and the Commitments shall
have terminated:

         8.1 NATURE OF BUSINESS.

         The Borrower will not materially alter the character of its business
from that conducted as of the Closing Date.

         8.2 CONSOLIDATION AND MERGER.

         The Borrower will not (a) enter into any transaction of merger, other
than the closing of the MVG Acquisition, or (b) consolidate, liquidate, wind up
or dissolve itself (or suffer any liquidation or dissolution); provided that, so
long as no Default or Event of Default shall exist or

                                       36
<PAGE>

be caused thereby, a Person may be merged or consolidated with or into the
Borrower so long as the Borrower shall be the continuing or surviving
corporation.

         8.3 SALE OR LEASE OF ASSETS.

         Within any twelve month period, the Borrower will not, nor will it
permit any Subsidiary to, convey, sell, lease, transfer or otherwise dispose of
assets, business or operations with a net book value in excess of 25% of Total
Assets as calculated as of the end of the most recent fiscal quarter.

         8.4 ARM'S-LENGTH TRANSACTIONS.

         The Borrower will not, nor will it permit its Subsidiaries to, enter
into any transaction or series of transactions, whether or not in the ordinary
course of business, with any officer, director or Affiliate other than on terms
and conditions substantially as favorable as would be obtainable in a comparable
arm's-length transaction with a Person other than an officer, director or
Affiliate.

         8.5 FISCAL YEAR; ORGANIZATIONAL DOCUMENTS.

         The Borrower will not (a) change its fiscal year or (b) in any manner
that would reasonably be expected to materially adversely affect the rights of
the Lenders, change its organizational documents or its bylaws; it being
understood that the Borrower's shareholders may approve an amendment to the
Borrower's Articles of Incorporation to permit the issuance of Preferred
Securities.

         8.6 LIENS.

         The Borrower will not, nor will it permit any of its Material
Subsidiaries to, contract, create, incur, assume or permit to exist any Lien
with respect to any of its property or assets of any kind (whether real or
personal, tangible or intangible), whether now owned or after acquired, except
for the following: (a) Liens securing Borrower Obligations, (b) Liens for taxes
not yet due or Liens for taxes being contested in good faith by appropriate
action and for which adequate reserves, if required, determined in accordance
with GAAP have been established (and as to which the property subject to any
such Lien is not yet subject to foreclosure, sale or loss on account thereof),
(c) Liens in respect of property imposed by law arising in the ordinary course
of business such as materialmen's, mechanics', warehousemen's, carrier's,
landlords' and other nonconsensual statutory Liens which are not yet due and
payable, which have been in existence less than 90 days or which are being
contested in good faith by appropriate action and for which adequate reserves,
if required, determined in accordance with GAAP have been established (and as to
which the property subject to any such Lien is not yet subject to foreclosure,
sale or loss on account thereof), (d) pledges or deposits made in the ordinary
course of business to secure payment of worker's compensation insurance,
unemployment insurance, pensions or social security programs, (e) Liens arising
from good faith deposits in connection with or to secure performance of tenders,
bids, leases, government contracts, performance and return-of-money bonds and
other similar obligations incurred in the ordinary course of business (other
than obligations in respect of the payment of borrowed money), (f) Liens arising
from good faith deposits in connection with or to secure performance of
statutory obligations and surety and

                                       37
<PAGE>

appeal bonds, (g) easements, rights-of-way, restrictions (including zoning
restrictions), minor defects or irregularities in title and other similar
charges or encumbrances not, in any material respect, impairing the use of the
encumbered property for its intended purposes, (h) judgment Liens that would not
constitute an Event of Default, (i) Liens arising by virtue of any statutory or
common law provision relating to banker's liens, rights of setoff or similar
rights as to deposit accounts or other funds maintained with a creditor
depository institution, (j) any Lien on any assets securing indebtedness
incurred or assumed for the purpose of financing all or any part of the cost of
acquiring such assets; provided that such Lien attaches to such asset
concurrently with or within 90 days after the acquisition thereof, (k) any Lien
on any asset of any Person existing at the time such Person is merged or
consolidated with or into the Borrower or one of its Subsidiaries and not
created in contemplation of such event, (l) any Lien existing on any asset prior
to the acquisition thereof by the Borrower or one of its Subsidiaries and not
created in contemplation of such acquisition, (m) any Lien (whether such Lien
applies to current assets or after-acquired property, or both) on any assets of
the Borrower or such Material Subsidiary created pursuant to the 1957 Indenture
or the 1959 Indenture; provided that any Lien on any assets of the Borrower or
such Material Subsidiary that are specifically excluded as collateral under such
Indentures shall not be deemed to be a Permitted Lien hereunder, (n) any Lien
(whether such Lien applies to current assets or after-acquired property, or
both) on any Fixed Assets of the Borrower or such Material Subsidiaries created
or arising at any time pursuant to or under (i) Section 4.08 of each of the 1987
Note Purchase Agreements and the 1989 Note Purchase Agreement, (ii) Section 4.8
of each of the 1991 Note Purchase Agreement, the 1992 Note Purchase Agreement
and the 1994 Note Purchase Agreement or (iii) any similar provision utilizing
the same or a similar cash flow-to-debt test, contained in any other loan
agreement that the Borrower may enter into after the Effective Date, which
agreement grants a loan or extends credit to the Borrower with a maturity date
in excess of one year, (o) any Lien on the assets of the Borrower pursuant to
Section 803 of the 1998 Indenture or Section 803 of the 2001 Indenture, if
placed on the property of the Borrower on a pro rata basis only with other Liens
that may be placed on the properties of the Borrower in the future, (p) Liens on
Fixed Assets not otherwise permitted by this Credit Agreement securing
indebtedness in the aggregate (at the time such Liens are created) not in excess
of five percent (5%) of Consolidated Net Property, and (q) any extension,
renewal or replacement (or successive extensions, renewals or replacements), as
a whole or in part, of any Liens referred to in the foregoing clauses (a)
through (p) for amounts not exceeding the principal amount of the indebtedness
secured by the Lien so extended, renewed or replaced; provided that such
extension, renewal or replacement Lien is limited to all or a part of the same
property or assets that were covered by the Lien extended, renewed or replaced
(plus improvements on such property or assets).

                                   SECTION 9.

                                EVENTS OF DEFAULT

         9.1 EVENTS OF DEFAULT.

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

                                       38
<PAGE>

                  (a) Payment. The Borrower shall default in the payment (i)
         when due of any principal of any of the Loans or (ii) within one
         Business Day of when due of any interest on the Loans or of any fees or
         other amounts owing hereunder, under any of the other Credit Documents
         or in connection herewith.

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

                  (c) Covenants. The Borrower shall:

                           (i) default in the due performance or observance of
                  any term, covenant or agreement contained in Sections 7.2,
                  7.3, 7.4, 7.5, 7.9 or 8.1 through 8.6 inclusive; or

                           (ii) default in the due performance or observance by
                  it of any term, covenant or agreement contained in Section 7.1
                  and such default shall continue unremedied for a period of
                  five Business Days after the earlier of the Borrower becoming
                  aware of such default or notice thereof given by the
                  Administrative Agent; or

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

                  (d) Credit Documents. The Borrower shall default in the due
         performance or observance of any term, covenant or agreement in any of
         the other Credit Documents and such default shall continue unremedied
         for a period of at least 30 days after the earlier of the Borrower
         becoming aware of such default or notice thereof given by the
         Administrative Agent or (ii) any Credit Document shall fail to be in
         full force and effect or the Borrower shall so assert or any Credit
         Document shall fail to give the Administrative Agent and/or the Lenders
         the rights, powers and privileges purported to be created thereby.

                  (e) Bankruptcy, etc. The occurrence of any of the following
         with respect to the Borrower or any of its Material Subsidiaries: (i) a
         court or governmental agency having jurisdiction in the premises shall
         enter a decree or order for relief in respect of the Borrower or any of
         its Material Subsidiaries in an involuntary case under any applicable
         bankruptcy, insolvency or other similar law now or hereafter in effect,
         or appoint a receiver, liquidator, assignee, custodian, trustee,
         sequestrator or similar official of the Borrower or any of its Material
         Subsidiaries or for any substantial part of its property or order the
         winding up or liquidation of its affairs; or (ii) an involuntary case
         under any

                                       39
<PAGE>

         applicable bankruptcy, insolvency or other similar law now or hereafter
         in effect is commenced against the Borrower or any of its Material
         Subsidiaries and such petition remains unstayed and in effect for a
         period of 60 consecutive days; or (iii) the Borrower or any of its
         Material Subsidiaries shall commence a voluntary case under any
         applicable bankruptcy, insolvency or other similar law now or hereafter
         in effect, or consent to the entry of an order for relief in an
         involuntary case under any such law, or consent to the appointment or
         taking possession by a receiver, liquidator, assignee, custodian,
         trustee, sequestrator or similar official of such Person or any
         substantial part of its property or make any general assignment for the
         benefit of creditors; or (iv) the Borrower or any of its Material
         Subsidiaries shall admit in writing its inability to pay its debts
         generally as they become due or any action shall be taken by such
         Person in furtherance of any of the aforesaid purposes.

                  (f) Defaults under Other Agreements. With respect to (x) any
         secured indebtedness of the Borrower or (y) any other indebtedness in
         excess of $20,000,000 (other than indebtedness outstanding under this
         Credit Agreement) of the Borrower (A) the Borrower shall (1) default in
         any payment (beyond the applicable grace period with respect thereto,
         if any) with respect to any such indebtedness, or (2) default (after
         giving effect to any applicable grace period) in the observance or
         performance of any covenant or agreement relating to such indebtedness
         or contained in any instrument or agreement evidencing, securing or
         relating thereto, or any other event or condition shall occur or
         condition exist, the effect of which default or other event or
         condition is to cause, or permit, the holder of the holders of such
         indebtedness (or trustee or agent on behalf of such holders) to cause
         (determined without regard to whether any notice or lapse of time is
         required) any such indebtedness to become due prior to its stated
         maturity; or (B) any such indebtedness shall be declared due and
         payable, or required to be prepaid other than by a regularly scheduled
         required prepayment prior to the stated maturity thereof; or (C) any
         such indebtedness shall mature and remain unpaid.

                  (g) Judgments. One or more judgments, orders, or decrees shall
         be entered against the Borrower involving a liability of $20,000,000 or
         more, in the aggregate, (to the extent not paid or covered by insurance
         provided by a carrier who has acknowledged coverage) and such
         judgments, orders or decrees shall continue unsatisfied, undischarged
         and unstayed for a period ending on the first to occur of (i) the last
         day on which such judgment, order or decree becomes final and
         unappealable and, where applicable, with the status of a judicial lien
         or (ii) 60 days; provided that if such judgment, order or decree
         provides for periodic payments over time then the Borrower shall have a
         grace period of 30 days with respect to each such periodic payment.

                  (h) ERISA. The occurrence of any of the following events or
         conditions if any of the same would be reasonably expected to result in
         a liability of an amount greater than or equal to $20,000,000: (A) any
         "accumulated funding deficiency," as such term is defined in Section
         302 of ERISA and Section 412 of the Code, whether or not waived, shall
         exist with respect to any Plan, or any lien shall arise on the assets
         of the Borrower or any ERISA Affiliate in favor of the PBGC or a Plan;
         (B) a Termination Event shall occur with respect to a Single Employer
         Plan, which is, in the reasonable opinion of the Administrative Agent,
         likely to result in the termination of such Plan for purposes of Title

                                       40
<PAGE>

         IV of ERISA; (C) a Termination Event shall occur with respect to a
         Multiemployer Plan or Multiple Employer Plan, which is, in the
         reasonable opinion of the Administrative Agent, likely to result in (i)
         the termination of such Plan for purposes of Title IV of ERISA, or (ii)
         the Borrower or any ERISA Affiliate incurring any liability in
         connection with a withdrawal from, reorganization of (within the
         meaning of Section 4241 of ERISA), or insolvency (within the meaning of
         Section 4245 of ERISA) of such Plan; or (D) any prohibited transaction
         (within the meaning of Section 406 of ERISA or Section 4975 of the
         Code) or breach of fiduciary responsibility shall occur which would be
         reasonably expected to subject the Borrower or any ERISA Affiliate to
         any liability under Sections 406, 409, 502(i), or 502(l) of ERISA or
         Section 4975 of the Code, or under any agreement or other instrument
         pursuant to which the Borrower or any ERISA Affiliate has agreed or is
         required to indemnify any person against any such liability.

                           (i) Change of Control. The occurrence of any Change
                  of Control.

         9.2 ACCELERATION; REMEDIES.

         Upon the occurrence and during the continuation of an Event of Default,
the Administrative Agent may, with the consent of the Required Lenders, and
shall, upon the request and direction of the Required Lenders, by written notice
to the Borrower take any of the following actions without prejudice to the
rights of the Administrative Agent or any Lender to enforce its claims against
the Borrower, except as otherwise specifically provided for herein:

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

                           (ii) Acceleration of Loans. Declare the unpaid amount
                  of all Borrower Obligations to be due whereupon the same shall
                  be immediately due and payable without presentment, demand,
                  protest or other notice of any kind, all of which are hereby
                  waived by the Borrower.

                           (iii) Enforcement of Rights. Enforce any and all
                  rights and interests created and existing under the Credit
                  Documents, including, without limitation, all rights of
                  set-off.

Notwithstanding the foregoing, if an Event of Default specified in Section
9.1(e) shall occur, then the Commitments shall automatically terminate and all
Loans, all accrued interest in respect thereof, all accrued and unpaid fees and
other indebtedness or obligations owing to the Lenders and the Administrative
Agent hereunder shall immediately become due and payable without the giving of
any notice or other action by the Administrative Agent or the Lenders.

Notwithstanding the fact that enforcement powers reside primarily with the
Administrative Agent, each Lender has, to the extent permitted by law, a
separate right of payment and shall be considered a separate "creditor" holding
a separate "claim" within the meaning of Section 101(5) of the Bankruptcy Code
or any other insolvency statute.

                                       41
<PAGE>

         9.3 ALLOCATION OF PAYMENTS AFTER EVENT OF DEFAULT.

         Notwithstanding any other provisions of this Credit Agreement, after
the occurrence of an Event of Default, all amounts collected or received by the
Administrative Agent or any Lender on account of amounts outstanding under any
of the Credit Documents shall be paid over or delivered as follows:

                  FIRST, to the payment of all reasonable out-of-pocket costs
         and expenses (including without limitation reasonable attorneys' fees)
         of the Administrative Agent or any of the Lenders in connection with
         enforcing the rights of the Lenders under the Credit Documents, pro
         rata as set forth below;

                  SECOND, to payment of any fees owed to the Administrative
         Agent, or any Lender, pro rata as set forth below;

                  THIRD, to the payment of all accrued interest payable to the
         Lenders hereunder, pro rata as set forth below;

                  FOURTH, to the payment of the outstanding principal amount of
         the Loans, pro rata as set forth below;

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

                  SIXTH, to the payment of the surplus, if any, to whoever may
         be lawfully entitled to receive such surplus.

In carrying out the foregoing, (a) amounts received shall be applied in the
numerical order provided until exhausted prior to application to the next
succeeding category and (b) each of the Lenders shall receive an amount equal to
its pro rata share (based on the proportion that the then outstanding Loans held
by such Lender bears to the aggregate then outstanding Loans) of amounts
available to be applied.

                                   SECTION 10.

                                AGENCY PROVISIONS

         10.1 APPOINTMENT.

         Each Lender hereby designates and appoints Bank One, NA as agent of
such Lender to act as specified herein and the other Credit Documents, and each
such Lender hereby authorizes the Administrative Agent, as the agent for such
Lender, to take such action on its behalf under the provisions of this Credit
Agreement and the other Credit Documents and to exercise such powers and perform
such duties as are expressly delegated by the terms hereof and of the other
Credit Documents, together with such other powers as are reasonably incidental
thereto. Notwithstanding any provision to the contrary elsewhere herein and in
the other Credit Documents, the Administrative Agent shall not have any duties
or responsibilities, except those

                                       42
<PAGE>

expressly set forth herein and therein, or any fiduciary relationship with any
Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Credit Agreement or any of
the other Credit Documents, or shall otherwise exist against the Administrative
Agent. The provisions of this Section 10.1 are solely for the benefit of the
Administrative Agent and the Lenders and the Borrower shall not have any rights
as a third party beneficiary of the provisions hereof. In performing its
functions and duties under this Credit Agreement and the other Credit Documents,
the Administrative Agent shall act solely as agent of the Lenders and does not
assume and shall not be deemed to have assumed any obligation or relationship of
agency or trust with or for the Borrower. Any agent named herein (other than the
Administrative Agent) shall have no duties or obligations whatsoever under this
Credit Agreement or the other Credit Documents.

         10.2 DELEGATION OF DUTIES.

         The Administrative Agent may execute any of its duties hereunder or
under the other Credit Documents by or through agents or attorneys-in-fact and
shall be entitled to advice of counsel concerning all matters pertaining to such
duties. The Administrative Agent shall not be responsible for the negligence or
misconduct of any agents or attorneys-in-fact selected by it with reasonable
care.

         10.3 EXCULPATORY PROVISIONS.

         Neither the Administrative Agent nor any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates shall be liable to any Lender
for any action lawfully taken or omitted to be taken by it or such Person under
or in connection herewith or in connection with any of the other Credit
Documents (except for its or such Person's own gross negligence or willful
misconduct), or responsible in any manner to any of the Lenders for any
recitals, statements, representations or warranties made by the Borrower
contained herein or in any of the other Credit Documents 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 herewith or in connection
with the other Credit Documents, or enforceability or sufficiency therefor of
any of the other Credit Documents, or for any failure of the Borrower to perform
its obligations hereunder or thereunder. The Administrative Agent shall not be
responsible to any Lender for the effectiveness, genuineness, validity,
enforceability, collectibility or sufficiency of this Credit Agreement, or any
of the other Credit Documents or for any representations, warranties, recitals
or statements made herein or therein or made by the Borrower in any written or
oral statement or in any financial or other statements, instruments, reports,
certificates or any other documents in connection herewith or therewith
furnished or made by the Administrative Agent to the Lenders or by or on behalf
of the Borrower to the Administrative Agent or any Lender or be required to
ascertain or inquire as to the performance or observance of any of the terms,
conditions, provisions, covenants or agreements contained herein or therein or
as to the use of the proceeds of the Loans or of the existence or possible
existence of any Default or Event of Default or to inspect the properties, books
or records of the Borrower. The Administrative Agent is not a trustee for the
Lenders and owes no fiduciary duty to the Lenders.

                                       43
<PAGE>

         10.4 RELIANCE ON COMMUNICATIONS.

         The Administrative Agent shall be entitled to rely, and shall be fully
protected in relying, upon any note, writing, resolution, notice, consent,
certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype
message, statement, order or other document or conversation believed by it in
good faith 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, without limitation, counsel to the Borrower, independent accountants
and other experts selected by the Administrative Agent with reasonable care).
The Administrative Agent may deem and treat the Lenders as the owner of its
interests hereunder for all purposes unless a written notice of assignment,
negotiation or transfer thereof shall have been filed with the Administrative
Agent in accordance with Section 11.3(b). The Administrative Agent shall be
fully justified in failing or refusing to take any action under this Credit
Agreement or under any of the other Credit Documents unless it shall first
receive such advice or concurrence of the Required Lenders as it deems
appropriate or 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,
hereunder or under any of the other Credit Documents in accordance with a
request of the Required Lenders (or to the extent specifically provided in
Section 11.6, all the Lenders) and such request and any action taken or failure
to act pursuant thereto shall be binding upon all the Lenders (including their
successors and assigns).

         10.5 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 hereunder unless the
Administrative Agent has received notice from a Lender or the Borrower referring
to the Credit Document, describing such Default or Event of Default and stating
that such notice is a "notice of default." In the event that the Administrative
Agent receives such a notice, the Administrative Agent shall give prompt notice
thereof to the Lenders. The Administrative Agent shall take such action with
respect to such Default or Event of Default as shall be reasonably directed by
the Required Lenders.

         10.6 NON-RELIANCE ON ADMINISTRATIVE AGENT AND OTHER LENDERS.

         Each Lender expressly acknowledges that neither the Administrative
Agent nor any of its officers, directors, employees, agents, attorneys-in-fact
or affiliates has made any representations or warranties to it and that no act
by the Administrative Agent or any affiliate thereof hereinafter taken,
including any review of the affairs of the Borrower, shall be deemed to
constitute any representation or warranty by the Administrative Agent to any
Lender. Each Lender represents to the Administrative Agent that it has,
independently and without reliance upon the Administrative Agent or any other
Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
assets, operations, property, financial and other conditions, prospects and
creditworthiness of the Borrower and made its own decision to make its
Extensions of Credit hereunder and enter into this Credit Agreement. Each Lender
also represents that it will, independently and without reliance upon the
Administrative Agent or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis,

                                       44
<PAGE>

appraisals and decisions in taking or not taking action under this Credit
Agreement, and to make such investigation as it deems necessary to inform itself
as to the business, assets, operations, property, financial and other
conditions, prospects and creditworthiness of the Borrower. Except for notices,
reports and other documents expressly required to be furnished to the Lenders by
the Administrative Agent hereunder, the Administrative Agent shall not have any
duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, assets, property, financial or
other conditions, prospects or creditworthiness of the Borrower which may come
into the possession of the Administrative Agent or any of its officers,
directors, employees, agents, attorneys-in-fact or Affiliates.

         10.7 INDEMNIFICATION.

         Each Lender agrees to indemnify the Administrative Agent in its
capacity as such (to the extent not reimbursed by the Borrower and without
limiting the obligation of the Borrower to do so), ratably according to its
Commitment Percentage at the time the indemnification request is made, from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind
whatsoever which may at any time (including without limitation at any time
following the payment in full of the Borrower Obligations) be imposed on,
incurred by or asserted against the Administrative Agent in its capacity as such
in any way relating to or arising out of this Credit Agreement or the other
Credit Documents or any documents contemplated by or referred to herein or
therein or the transactions contemplated hereby or thereby or any action taken
or omitted by the Administrative Agent under or in connection with any of the
foregoing; provided that no Lender shall be liable for the payment of any
portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from the gross
negligence or willful misconduct of the Administrative Agent. If any indemnity
furnished to the Administrative Agent for any purpose shall, in the opinion of
the Administrative Agent, be insufficient or become impaired, the Administrative
Agent may call for additional indemnity and cease, or not commence, to do the
acts indemnified against until such additional indemnity is furnished. The
agreements in this Section 10.7 shall survive the payment of the Borrower
Obligations and all other amounts payable hereunder and under the other Credit
Documents and the termination of the Commitments.

         10.8 ADMINISTRATIVE AGENT IN ITS INDIVIDUAL CAPACITY.

         The Administrative Agent and its Affiliates may make loans to, accept
deposits from and generally engage in any kind of business with the Borrower as
though the Administrative Agent were not Administrative Agent hereunder. With
respect to the Loans made and all Borrower Obligations owing to it, the
Administrative Agent shall have the same rights and powers under this Credit
Agreement as any Lender and may exercise the same as though it were not the
Administrative Agent, and the terms "Lender" and "Lenders" shall include the
Administrative Agent in its individual capacity.

         10.9 SUCCESSOR AGENT.

         The Administrative Agent may, at any time, resign upon 20 days written
notice to the Lenders. Upon any such resignation, the Required Lenders shall
have the right to appoint a

                                       45
<PAGE>

successor Administrative Agent, which successor shall be reasonably acceptable
to the Borrower; provided that the Borrower shall have no right to approve such
successor during the existence and continuation of a Default or Event of
Default. If no successor Administrative Agent shall have been so appointed by
the Required Lenders, and shall have accepted such appointment, within 30 days
after the notice of resignation, then the retiring Administrative Agent shall
select a successor Administrative Agent; provided such successor is an Eligible
Assignee (or if no Eligible Assignee shall have been so appointed by the
retiring Administrative Agent and shall have accepted such appointment, then the
Lenders shall perform all obligations of the retiring Administrative Agent
hereunder until such time, if any, as a successor Administrative Agent shall
have been appointed and shall have accepted such appointment as provided for
above). Upon the acceptance of any appointment as an Administrative Agent
hereunder by a successor, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations as an Administrative Agent,
as appropriate, under this Credit Agreement and the other Credit Documents and
the provisions of this Section 10 shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was an Administrative Agent under
this Credit Agreement.

                                  SECTION 11.

                                  MISCELLANEOUS

         11.1 NOTICES.

         Except as otherwise expressly provided herein, all notices and other
communications shall have been duly given and shall be effective (a) when
delivered, (b) when transmitted via telecopy (or other facsimile device), (c)
the Business Day following the day on which the same has been delivered to a
reputable national overnight air courier service, or (d) the third Business Day
following the day on which the same is sent by certified or registered mail,
postage prepaid, in each case to the respective parties at the address or
telecopy numbers set forth on Schedule 11.1, or at such other address as such
party may specify by written notice to the other parties hereto.

         11.2 RIGHT OF SET-OFF.

         In addition to any rights now or hereafter granted under applicable law
or otherwise, and not by way of limitation of any such rights, upon the
occurrence and during the continuation of an Event of Default and the
commencement of remedies described in Section 9.2, each Lender is authorized at
any time and from time to time, without presentment, demand, protest or other
notice of any kind (all of which rights being hereby expressly waived), to
set-off and to appropriate and apply any and all deposits (general or special)
and any other indebtedness at any time held or owing by such Lender (including,
without limitation branches, agencies or Affiliates of such Lender wherever
located) to or for the credit or the account of the Borrower against obligations
and liabilities of the Borrower to the Lenders hereunder, under the Notes or the
other Credit Documents, irrespective of whether the Administrative Agent or the
Lenders shall have made any demand hereunder and although such obligations,
liabilities or claims, or any of them, may be contingent or unmatured, and any
such set-off shall be deemed to have been made

                                       46
<PAGE>

immediately upon the occurrence of an Event of Default even though such charge
is made or entered on the books of such Lender subsequent thereto. The Borrower
hereby agrees that any Person purchasing a participation in the Loans and
Commitments hereunder pursuant to Section 11.3(c) may exercise all rights of
set-off with respect to its participation interest as fully as if such Person
were a Lender hereunder.

         11.3 BENEFIT OF AGREEMENT.

                  (a) Generally. This Credit Agreement shall be binding upon and
         inure to the benefit of and be enforceable by the respective successors
         and assigns of the parties hereto; provided that the Borrower may not
         assign and transfer any of its interests without the prior written
         consent of the Lenders; and provided further that the rights of each
         Lender to transfer, assign or grant participations in its rights and/or
         obligations hereunder shall be limited as set forth below in this
         Section 11.3.

                  (b) Assignments. Each Lender may assign to one or more
         Eligible Assignees all or a portion of its rights and obligations under
         this Credit Agreement (including, without limitation, all or a portion
         of its Loans, its Notes, and its Commitment); provided, however, that:

                           (i) each such assignment shall be to an Eligible
                  Assignee;

                           (ii) except in the case of an assignment to another
                  Lender or an assignment of all of a Lender's rights and
                  obligations under this Credit Agreement, any such partial
                  assignment shall be in an amount at least equal to $3,000,000
                  (or, if less, the remaining amount of the Commitment being
                  assigned by such Lender) and an integral multiple of
                  $1,000,000 in excess thereof;

                           (iii) each such assignment by a Lender shall be of a
                  constant, and not varying, percentage of all of its rights and
                  obligations under this Credit Agreement and the Notes; and

                           (iv) the parties to such assignment shall execute and
                  deliver to the Administrative Agent for its acceptance an
                  Assignment Agreement in substantially the form of Exhibit
                  11.3(b), together with a processing fee from the assignor of
                  $5,000.

         Upon execution, delivery, and acceptance of such Assignment Agreement,
         the assignee thereunder shall be a party hereto and, to the extent of
         such assignment, have the obligations, rights, and benefits of a Lender
         hereunder and the assigning Lender shall, to the extent of such
         assignment, relinquish its rights and be released from its obligations
         under this Credit Agreement. Upon the consummation of any assignment
         pursuant to this Section 11.3(b), the assignor, the Administrative
         Agent and the Borrower shall make appropriate arrangements so that, if
         required, new Notes are issued to the assignor and the assignee. If the
         assignee is not incorporated under the laws of the United States of
         America or a state thereof; it shall deliver to the Borrower and the
         Administrative Agent certification as to exemption from deduction or
         withholding of taxes in accordance with Section 4.4.

                                       47
<PAGE>

                  By executing and delivering an assignment agreement in
         accordance with this Section 11.3(b), the assigning Lender thereunder
         and the assignee thereunder shall be deemed to confirm to and agree
         with each other and the other parties hereto as follows: (A) such
         assigning Lender warrants that it is the legal and beneficial owner of
         the interest being assigned thereby free and clear of any adverse claim
         created by such assigning Lender and the assignee warrants that it is
         an Eligible Assignee; (B) except as set forth in clause (A) above, such
         assigning Lender makes no representation or warranty and assumes no
         responsibility with respect to any statements, warranties or
         representations made in or in connection with this Credit Agreement,
         any of the other Credit Documents or any other instrument or document
         furnished pursuant hereto or thereto, or the execution, legality,
         validity, enforceability, genuineness, sufficiency or value of this
         Credit Agreement, any of the other Credit Documents or any other
         instrument or document furnished pursuant hereto or thereto or the
         financial condition of the Borrower or the performance or observance by
         the Borrower of any of its obligations under this Credit Agreement, any
         of the other Credit Documents or any other instrument or document
         furnished pursuant hereto or thereto; (C) such assignee represents and
         warrants that it is legally authorized to enter into such assignment
         agreement; (D) such assignee confirms that it has received a copy of
         this Credit Agreement, the other Credit Documents and such other
         documents and information as it has deemed appropriate to make its own
         credit analysis and decision to enter into such assignment agreement;
         (E) such assignee will independently and without reliance upon the
         Administrative Agent, such assigning Lender or any other Lender, and
         based on such documents and information as it shall deem appropriate at
         the time, continue to make its own credit decisions in taking or not
         taking action under this Credit Agreement and the other Credit
         Documents; (F) such assignee appoints and authorizes the Administrative
         Agent to take such action on its behalf and to exercise such powers
         under this Credit Agreement or any other Credit Document as are
         delegated to the Administrative Agent by the terms hereof or thereof,
         together with such powers as are reasonably incidental thereto; and (G)
         such assignee agrees that it will perform in accordance with their
         terms all the obligations which by the terms of this Credit Agreement
         and the other Credit Documents are required to be performed by it as a
         Lender.

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

                  (d) Acceptance. Upon its receipt of an Assignment Agreement
         executed by the parties thereto, together with any Note subject to such
         assignment and payment of the processing fee, the Administrative Agent
         shall, if such Assignment Agreement has been completed and is in
         substantially the form of Exhibit 11.3(b), (i) accept such Assignment

                                       48
<PAGE>

         Agreement, (ii) record the information contained therein in the
         Register and (iii) give prompt notice thereof to the parties thereto.

                  (e) Participations. Each Lender may sell participations to one
         or more Persons in all or a portion of its rights, obligations or
         rights and obligations under this Credit Agreement (including all or a
         portion of its Commitment, its Notes and its Loans); provided, however,
         that (i) such Lender's obligations under this Credit Agreement shall
         remain unchanged, (ii) such Lender shall remain solely responsible to
         the other parties hereto for the performance of such obligations, (iii)
         the participant shall be entitled to the benefit of the yield
         protection provisions contained in Sections 4.1 through 4.4, inclusive,
         and the right of set-off contained in Section 11.2, and (iv) the
         Borrower shall continue to deal solely and directly with such Lender in
         connection with such Lender's rights and obligations under this Credit
         Agreement, and such Lender shall retain the sole right to enforce the
         obligations of the Borrower relating to its Loans and its Notes and to
         approve any amendment, modification, or waiver of any provision of this
         Credit Agreement (other than amendments, modifications, or waivers
         decreasing the amount of principal of or the rate at which interest is
         payable on such Loans or Notes, extending any scheduled principal
         payment date or date fixed for the payment of interest on such Loans or
         Notes, or extending its Commitment).

                  (f) Nonrestricted Assignments. Notwithstanding any other
         provision set forth in this Credit Agreement, any Lender may at any
         time assign and pledge all or any portion of its Loans and its Notes to
         any Federal Reserve Bank as collateral security pursuant to Regulation
         A and any Operating Circular issued by such Federal Reserve Bank. No
         such assignment shall release the assigning Lender from its obligations
         hereunder.

                  (g) Information. Any Lender may furnish any information
         concerning the Borrower in the possession of such Lender from time to
         time to assignees and participants (including prospective assignees and
         participants).

                                       49
<PAGE>

         11.4 NO WAIVER; REMEDIES CUMULATIVE.

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

         11.5 PAYMENT OF EXPENSES, ETC.

         The Borrower agrees to: (i) pay all reasonable out-of-pocket costs and
expenses of the Administrative Agent and Banc One Capital Markets, Inc. ("BOCM")
in connection with (A) the negotiation, preparation, execution and delivery and
administration of this Credit Agreement and the other Credit Documents and the
documents and instruments referred to therein (including, without limitation,
the reasonable fees and expenses of Mayer, Brown, Rowe & Maw, special counsel to
the Administrative Agent) and (B) any amendment, waiver or consent relating
hereto and thereto including, but not limited to, any such amendments, waivers
or consents resulting from or related to any work-out, renegotiation or
restructure relating to the performance by the Borrower under this Credit
Agreement, (ii) pay all reasonable out-of-pocket costs and expenses of the
Administrative Agent and the Lenders in connection with (A) enforcement of the
Credit Documents and the documents and instruments referred to therein
(including, without limitation, in connection with any such enforcement, the
reasonable fees and disbursements of counsel for the Administrative Agent and
each of the Lenders (including the allocated cost of internal counsel)) and (B)
any bankruptcy or insolvency proceeding of the Borrower and (iii) indemnify the
Administrative Agent, BOCM and each Lender, its officers, directors, employees,
representatives and agents from and hold each of them harmless against any and
all losses, liabilities, claims, damages or expenses incurred by any of them as
a result of, or arising out of, or in any way related to, or by reason of, any
investigation, litigation or other proceeding (whether or not the Administrative
Agent, BOCM or any Lender is a party thereto) related to the entering into
and/or performance of any Credit Document or the use of proceeds of any Loans
(including other extensions of credit) hereunder or the consummation of any
other transactions contemplated in any Credit Document, including, without
limitation, the reasonable fees and disbursements of counsel (including the
allocated cost of internal counsel) incurred in connection with any such
investigation, litigation or other proceeding (but excluding any such losses,
liabilities, claims, damages or expenses to the extent incurred by reason of
gross negligence or willful misconduct on the part of the Person to be
indemnified).

         11.6 AMENDMENTS, WAIVERS AND CONSENTS.

         Neither this Credit Agreement, nor any other Credit Document nor any of
the terms hereof or thereof may be amended, changed, waived, discharged or
terminated unless such

                                       50
<PAGE>

amendment, change, waiver, discharge or termination is in writing and signed by
the Required Lenders and the Borrower; provided that no such amendment, change,
waiver, discharge or termination shall without the consent of each Lender
affected thereby:

                  (a) extend the Maturity Date, or postpone or extend the time
         for any payment or prepayment of principal;

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

                  (c) reduce or waive the principal amount of any Loan;

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

                  (e) release the Borrower from its obligations under the Credit
         Documents;

                  (f) amend, modify or waive any provision of this Section 11.6
         or Section 3.6, 3.8, 9.1(a), 11.2, 11.3 or 11.5.

                  (g) reduce any percentage specified in, or otherwise modify,
         the definition of Required Lenders; or

                  (h) consent to the assignment or transfer by the Borrower of
         any of its rights and obligations under (or in respect of) the Credit
         Documents.

No provision of Section 10 may be amended or modified without the consent of the
Administrative Agent.

Notwithstanding the fact that the consent of all the Lenders is required in
certain circumstances as set forth above, (x) each Lender is entitled to vote as
such Lender sees fit on any reorganization plan that affects the Loans, and each
Lender acknowledges that the provisions of Section 1126(c) of the Bankruptcy
Code supersedes the unanimous consent provisions set forth herein and (y) the
Required Lenders may consent to allow the Borrower to use cash collateral in the
context of a bankruptcy or insolvency proceeding.

         11.7 COUNTERPARTS/TELECOPY.

         This Credit Agreement may be executed in any number of counterparts,
each of which where so executed and delivered shall be an original, but all of
which shall constitute one and the same instrument. Delivery of executed
counterparts by telecopy shall be as effective as an original and shall
constitute a representation that an original will be delivered.

                                       51
<PAGE>

         11.8 HEADINGS.

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

         11.9 DEFAULTING LENDER.

         Each Lender understands and agrees that if such Lender is a Defaulting
Lender then it shall not be entitled to vote on any matter requiring the consent
of the Required Lenders or to object to any matter requiring the consent of all
the Lenders; provided, however, that all other benefits and obligations under
the Loan Documents shall apply to such Defaulting Lender.

         11.10 SURVIVAL OF INDEMNIFICATION AND REPRESENTATIONS AND WARRANTIES.

         All indemnities set forth herein and all representations and warranties
made herein shall survive the execution and delivery of this Credit Agreement,
the making of the Loans, and the repayment of the Loans and other obligations
and the termination of the Commitments hereunder.

         11.11 GOVERNING LAW; VENUE.

                  (a) THIS CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND
         THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER
         SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH
         THE LAWS OF THE STATE OF NEW YORK.

                  (b) Any legal action or proceeding with respect to this Credit
         Agreement or any other Credit Document may be brought in the courts of
         the State of New York or of the United States for the Southern District
         of New York, and, by execution and delivery of this Credit Agreement,
         the Borrower hereby irrevocably accepts for itself and in respect of
         its property, generally and unconditionally, the jurisdiction of such
         courts. The Borrower further irrevocably consents to the service of
         process out of any of the aforementioned courts in any such action or
         proceeding by the mailing of copies thereof by registered or certified
         mail, postage prepaid, to it at the address for notices pursuant to
         Section 11.1, such service to become effective 10 days after such
         mailing. Nothing herein shall affect the right of a Lender to serve
         process in any other manner permitted by law or to commence legal
         proceedings or to otherwise proceed against the Borrower in any other
         jurisdiction. The Borrower agrees that a final judgment in any action
         or proceeding shall be conclusive and may be enforced in other
         jurisdictions by suit on the judgment or in any other manner provided
         by law; provided that nothing in this Section 11.11(b) is intended to
         impair the Borrower's right under applicable law to appeal or seek a
         stay of any judgment.

                  (c) The Borrower hereby irrevocably waives any objection which
         it may now or hereafter have to the laying of venue of any of the
         aforesaid actions or proceedings arising out of or in connection with
         this Credit Agreement or any other Credit Document

                                       52
<PAGE>

         in the courts referred to in subsection (a) hereof and hereby further
         irrevocably waives and agrees not to plead or claim in any such court
         that any such action or proceeding brought in any such court has been
         brought in an inconvenient forum.

         11.12 WAIVER OF JURY TRIAL.

         EACH OF THE PARTIES TO THIS CREDIT AGREEMENT HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT
OF OR RELATING TO THIS CREDIT AGREEMENT, ANY OF THE OTHER CREDIT DOCUMENTS OR
THE TRANSACTIONS CONTEMPLATED HEREBY.

         11.13 SEVERABILITY.

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

         11.14 FURTHER ASSURANCES.

         The Borrower agrees, upon the request of the Administrative Agent, to
promptly take such actions, as reasonably requested, as are necessary to carry
out the intent of this Credit Agreement and the other Credit Documents.

         11.15 ENTIRETY.

         This Credit Agreement together with the other Credit Documents
represent the entire agreement of the parties hereto and thereto, and supersede
all prior agreements and understandings, oral or written, if any, including any
commitment letters or correspondence relating to the Credit Documents or the
transactions contemplated herein and therein.

         11.16 BINDING EFFECT; CONTINUING AGREEMENT.

                  (a) This Credit Agreement shall become effective at such time
         when all of the conditions set forth in Section 5.1 have been satisfied
         or waived by the Lenders and it shall have been executed by the
         Borrower, the Administrative Agent and the Lenders, and thereafter this
         Credit Agreement shall be binding upon and inure to the benefit of the
         Borrower, the Administrative Agent and each Lender and their respective
         successors and assigns.

                  (b) This Credit Agreement shall be a continuing agreement and
         shall remain in full force and effect until all Loans, interest, fees
         and other Borrower Obligations have been paid in full and all
         Commitments have been terminated. Upon termination, the Borrower shall
         have no further obligations (other than the indemnification provisions
         that survive) under the Credit Documents; provided that should any
         payment, in whole or in part, of the Borrower Obligations be rescinded
         or otherwise required to be restored or returned by the Administrative
         Agent or any Lender, whether as a result of any

                                       53
<PAGE>

         proceedings in bankruptcy or reorganization or otherwise, then the
         Credit Documents shall automatically be reinstated and all amounts
         required to be restored or returned and all costs and expenses incurred
         by the Administrative Agent or any Lender in connection therewith shall
         be deemed included as part of the Borrower Obligations.

                  [Remainder of Page Intentionally Left Blank]

                                       54
<PAGE>

                   Signature Page to Atmos Energy Corporation
                             Bridge Credit Agreement

         Each of the parties hereto has caused a counterpart of this Credit
Agreement to be duly executed and delivered as of the date first above written.

BORROWER:                                ATMOS ENERGY CORPORATION, A Texas
                                         and Virginia corporation

                                         By:  /s/ LAURIE M. SHERWOOD
                                              ----------------------------------
                                         Name:  Laurie M. Sherwood
                                                --------------------------------
                                         Title: Vice President and Treasurer

<PAGE>

                   Signature Page to Atmos Energy Corporation
                             Bridge Credit Agreement

LENDERS:                               BANK ONE, NA
                                       individually in its capacity as a Lender
                                       and in its capacity as Administrative
                                       Agent

                                       By:  /s/ SHARON K. WEBB
                                            ------------------------------------
                                       Name:  Sharon K. Webb
                                              ----------------------------------
                                       Title:    Associate Director

<PAGE>

                   Signature Page to Atmos Energy Corporation
                             Bridge Credit Agreement

                                       WACHOVIA BANK, NATIONAL ASSOCIATION

                                       By:  /s/ C. REID HARDEN
                                            ------------------------------------
                                       Name:  C. Reid Harden
                                              ----------------------------------
                                       Title: Vice President

<PAGE>

                   Signature Page to Atmos Energy Corporation
                             Bridge Credit Agreement

                                       SUNTRUST BANK

                                       By:  /s/ DAVID H. EIDSON
                                            ------------------------------------
                                       Name:  David H. Eidson
                                              ----------------------------------
                                       Title: Senior Vice President

<PAGE>

                   Signature Page to Atmos Energy Corporation
                             Bridge Credit Agreement

                                       SOCIETE GENERALE, NEW YORK BRANCH

                                       By:  /s/ DAVID BIRD
                                            ------------------------------------
                                       Name:  David Bird
                                              ----------------------------------
                                       Title:    Vice President

<PAGE>

                   Signature Page to Atmos Energy Corporation
                             Bridge Credit Agreement

                                       KBC BANK N.V.

                                       By:  /s/ ROBERT SNAUFFER
                                            ------------------------------------
                                       Name:  Robert Snauffer
                                              ----------------------------------
                                       Title: First Vice President

                                       By:  /s/ ERIC RASKIN
                                            ------------------------------------
                                       Name:  Eric Raskin
                                              ----------------------------------
                                       Title: Vice President

<PAGE>

                   Signature Page to Atmos Energy Corporation
                             Bridge Credit Agreement

                                       THE BANK OF TOKYO-MITSUBISHI, LTD.

                                       By:  /s/ ICHIRO OTANI
                                            ------------------------------------
                                       Name:  Ichiro Otani
                                              ----------------------------------
                                       Title: Deputy General Manager

                                       By:  /s/ JAY FORT
                                            ------------------------------------
                                       Name:  Jay Fort
                                              ----------------------------------
                                       Title: Vice President

<PAGE>

                   Signature Page to Atmos Energy Corporation
                             Bridge Credit Agreement

                                       U.S. BANK NATIONAL ASSOCIATION

                                       By:  /s/ WARD C. WILSON
                                            ------------------------------------
                                       Name:  Ward C. Wilson
                                              ----------------------------------
                                       Title: Senior Vice President

<PAGE>

                   Signature Page to Atmos Energy Corporation
                             Bridge Credit Agreement

                                       BANK OF AMERICA, N.A.

                                       By:  /s/ MICHELLE A. SCHOENFELD
                                            ------------------------------------
                                       Name:  Michelle A. Schoenfeld
                                              ----------------------------------
                                       Title: Principal

<PAGE>

                   Signature Page to Atmos Energy Corporation
                             Bridge Credit Agreement

                                       HIBERNIA NATIONAL BANK

                                       By:  /s/ DONNA J. RICHARDSON
                                            ------------------------------------
                                       Name:  Donna J. Richardson
                                              ----------------------------------
                                       Title: Banking Officer

<PAGE>

                                 SCHEDULE 1.1(a)

                             COMMITMENT PERCENTAGES

<Table>
<Caption>
                                                                 COMMITMENT
             LENDERS                       COMMITMENT            PERCENTAGE
             -------                       ----------            ----------
<S>                                       <C>                 <C>
Bank One, NA                              $ 37,500,000        25.000000000000000%
Wachovia Bank, National Association       $ 22,500,000        15.000000000000000%
SunTrust Bank                             $ 22,500,000        15.000000000000000%
SOCIETE GENERALE, NEW YORK BRANCH         $ 22,500,000        15.000000000000000%
KBC BANK N.V.                             $ 10,000,000        6.6666666666666666%
THE BANK OF TOKYO-MITSUBISHI, LTD.        $ 10,000,000        6.6666666666666666%
U.S. BANK NATIONAL ASSOCIATION            $ 10,000,000        6.6666666666666666%
BANK OF AMERICA, N.A.                     $ 10,000,000        6.6666666666666666%
HIBERNIA NATIONAL BANK                    $  5,000,000        3.3333333333333333%
                                          ------------        ------------------
TOTAL                                     $150,000,000                       100%
</Table>

                                Schedule 1.1(a)-1
<PAGE>

                                 SCHEDULE 1.1(b)

                                PRICING SCHEDULE

<Table>
<Caption>
      Applicable            Level    Level II   Level III   Level IV   Level V    Level VI
      Percentage           Status     Status     Status      Status     Status     Status
      ----------           ------    --------   ---------   --------   -------    --------
<S>                        <C>       <C>        <C>         <C>        <C>        <C>
   Eurodollar Rate          0.50%     0.625%      0.75%       1.0%      1.25%      1.75%

      Base Rate              0.0%       0.0%       0.0%       0.0%       0.0%      0.25%
      Unused Fee           0.085%      0.10%     0.125%      0.15%      0.20%      0.30%

Utilization Fee (when
usage exceeds 33 1/3%)     0.125%     0.125%     0.125%     0.125%     0.125%      0.25%
</Table>

         "Level I Status" exists at any date if, on such date, the Borrower's
Moody's Rating is A2 or better or the Borrower's S&P Rating is A or better.

         "Level II Status" exists at any date if, on such date, (i) the Borrower
has not qualified for Level I Status and (ii) the Borrower's Moody's Rating is
A3 or better or the Borrower's S&P Rating is A- or better.

         "Level III Status" exists at any date if, on such date, (i) the
Borrower has not qualified for Level I Status or Level II Status and (ii) the
Borrower's Moody's Rating is Baa1 or better or the Borrower's S&P Rating is BBB+
or better.

         "Level IV Status" exists at any date if, on such date, (i) the Borrower
has not qualified for Level I Status, Level II Status or Level III Status and
(ii) the Borrower's Moody's Rating is Baa2 or better or the Borrower's S&P
Rating is BBB or better.

         "Level V Status" exists at any date if, on such date, (i) the Borrower
has not qualified for Level I Status, Level II Status, Level III Status or Level
IV Status and (ii) the Borrower's Moody's Rating is Baa3 or better or the
Borrower's S&P Rating is BBB- or better.

         "Level VI Status" exists at any date if, on such date, the Borrower has
not qualified for Level I Status, Level II Status, Level III Status, Level IV
Status or Level V Status.

         "Moody's Rating" means, at any time, the rating issued by Moody's
Investors Service, Inc. and then in effect with respect to the Borrower's senior
unsecured long-term non-credit enhanced debt securities.

         "S&P Rating" means, at any time, the rating issued by Standard and
Poor's Rating Services, a division of The McGraw Hill Companies, Inc., and then
in effect with respect to the Borrower's senior unsecured long-term non-credit
enhanced debt securities.

         "Status" means Level I Status, Level II Status, Level III Status, Level
IV Status, Level V Status or Level VI Status.

         The Applicable Percentage shall be determined in accordance with the
foregoing table based on the Borrower's Status as determined from its
then-current Moody's and S&P Ratings.

                                Schedule 1.1(b)-1
<PAGE>

The credit rating in effect on any date for the purposes of this Schedule is
that in effect at the close of business on such date. If at any time the
Borrower has no Moody's Rating or no S&P Rating, Level VI Status shall exist.

         If the Borrower is split-rated and the ratings differential is one
level, the better rating will apply. If the Borrower is split-rated and the
ratings differential is two levels or more, the applicable rating shall be one
level below the higher of the Moody's or S&P Rating.

                                Schedule 1.1(b)-2
<PAGE>

                                  SCHEDULE 6.20

                              SECURED INDEBTEDNESS

                    SECURED INDEBTEDNESS AS OF JUNE 30, 2002

<Table>
<Caption>
                                            INTEREST                                                          BALANCE AT
                                              RATE      MATURITY                                               6/30/02
FIRST MORTGAGE BONDS
<S>                                         <C>         <C>         <C>                                      <C>
FMB Series P                                 10.43%     due 2012    issued under 1959 Indenture              16,250,000.00
FMB Series Q                                  9.75%     due 2020    issued under 1959 Indenture              18,000,000.00
FMB Series R                                 11.32%     due 2004    issued under 1959 Indenture               4,300,000.00
FMB Series T                                  9.32%     due 2021    issued under 1959 Indenture              18,000,000.00
FMB Series U                                  8.77%     due 2022    issued under 1959 Indenture              20,000,000.00
FMB Series J                                  9.40%     due 2021    issued under 1957 Indenture              17,000,000.00
FMB Series V                                  7.50%     due 2007    issued under 1959 Indenture              10,000,000.00
                                                                                                            --------------
                                                                                                            103,550,000.00
                                                                                                            --------------

Rental Property fixed rate term note         7.90%        due 2013         due in installments                1,505,951.57
                                                                                                            --------------
Total Secured Indebtedness                                                                                  105,055,951.57
                                                                                                            ==============
</Table>

                                 Schedule 6.20-1
<PAGE>

                                  SCHEDULE 6.21

                                  SUBSIDIARIES

Atmos Energy Holdings, Inc.

         Atmos Energy Marketing, LLC
                  Woodward Marketing, L.L.C.
                  Trans Louisiana Industrial Gas Company, Inc.
                  Southern Resources, Inc.

         Atmos Energy Services, LLC
                  Energas Energy Services Trust
                  Trans Louisiana Energy Services, Inc.
                  United Cities Energy Services, Inc.
                  Greeley Energy Services, Inc.
                  WKG Energy Services, Inc.

         Enermart Energy Services Trust

         Egasco, LLC

         Atmos Power Systems, Inc.

         United Cities Propane Gas, Inc.

         Atmos Pipeline and Storage, LLC
                  UCG Storage, Inc.
                  WKG Storage, Inc.
                  Trans Louisiana Gas Storage, Inc.
                  Trans Louisiana Gas Pipeline, Inc.
                  Atmos Exploration & Production, Inc.

* Each of these subsidiaries is 100% owned by its parent.

** No Subsidiary of the Borrower currently qualifies as a Material Subsidiary as
that term is defined in the Credit Agreement.

                                 Schedule 6.21-1
<PAGE>

                                  SCHEDULE 11.1

                                     NOTICES

BANK ONE, NA                                BANC ONE CAPITAL MARKETS, INC.

Sharon Webb                                 William Banks
1 Bank One Plaza                            1 Bank One Plaza
Suite IL1-0363, 10th Floor                  Suite IL1-0429, 8th Floor
Chicago, IL 60670                           Chicago, IL 60670
Tel: 312-732-7437                           Tel: 312-732-9781
Fax: 312-732-3055                           Fax: 312-732-7455
E-mail: sharon_k_webb@bankone.com           E-mail: william_banks@bankone.com

SOCIETE GENERALE, NEW YORK BRANCH           WACHOVIA BANK, NATIONAL ASSOCIATION

David Bird                                  Reid Harden
1221 Avenue of the Americas, 11th Floor     999 Peachtree Street
New York, NY 10020                          Atlanta, GA  30309
Tel: 212-278-7429                           Tel: 404-332-1420
E-mail: david.bird@us.socgen.com            E-mail: reid.harden@wachovia.com

                                            Mitch Wilson
                                            Tel: 704-383-5642
                                            Email: mitch.wilson@wachoiva.com

KBC BANK N.V.                               THE BANK OF TOKYO-MITSUBISHI, LTD.

Filip Ferrante                              Damian Sullivan
245 Peachtree Center Avenue, Suite 2550     1100 Louisiana Street, Suite 2800
Atlanta, GA 30303                           Houston, TX 77002
Tel:  404-584-5466                          Tel:  713-655-3808
Fax: 404-584-5465                           Fax: 713-658-0116
E-Mail: filip.ferrante@kbc.be               E-Mail: dsullivan@btmna.com

                                            Jay Fort
                                            Tel: 713-655-3807
                                            Email: jfort@btmny.com

                                 Schedule 11.1-1

<PAGE>

<Table>
<S>                                         <C>
U.S. BANK NATIONAL ASSOCIATION              BANK OF AMERICA, N.A.

Ward Wilson                                 Shelly Schoenfeld
150 Fourth Avenue N, Third Floor            100 N. Tyron Street, 16th Floor
Nashville, TN 37219                         Charlotte, NC 28255
Tel: 615-251-9253                           Tel: 704-386-1432
Fax: 615-251-9245                           Fax: 704-386-1319
                                            E-Mail: michelle.a.schoenfeld@bankofamerica.com

HIBERNIA NATIONAL BANK                      SUNTRUST BANK

Donna Richardson                            Ryan Simmons
313 Carondelet Street                       303 Peachtree Street, 10th Floor
New Orleans, LA 70130                       Atlanta, GA  30308
Tel: 504-533-7813                           Tel: 404-724-3924
E-Mail: drichardson@hibernia.com            Fax: 404-827-6270
                                            E-mail: ryan.simmons@suntrust.com
</Table>

                                 Schedule 11.1-2
<PAGE>

                                                                     EXHIBIT 2.2

                           FORM OF NOTICE OF BORROWING

TO:      BANK ONE, NA, as Administrative Agent
         One Bank One Plaza
         Chicago, Illinois  60670

RE:      Bridge Credit Agreement dated as of October 7, 2002, among Atmos Energy
         Corporation (the "Borrower"), the Lenders named therein and Bank One,
         NA, as Administrative Agent for the Lenders (as the same may be
         amended, modified, extended or restated from time to time, the "Credit
         Agreement")

DATE:    ____________, 200__

--------------------------------------------------------------------------------

1.       This Notice of Borrowing is made pursuant to the terms of the Credit
         Agreement. All capitalized terms used herein unless otherwise defined
         shall have the meanings set forth in the Credit Agreement.

2.       Please be advised that the Borrower is requesting Bridge Loans in the
         amount of $_________ to be funded on __________, 200__ at the interest
         rate option set forth in paragraph 3 below.

         Subsequent to the funding of the requested Bridge Loans, the amount of
         Bridge Loans outstanding will be $__________, which is less than or
         equal to the Bridge Loan Commitment.

3.       The interest rate option applicable to the requested Bridge Loans shall
         be:

         a.              the Base Rate
                 --------

         b.              the Adjusted Eurodollar Rate for an Interest Period of:
                 --------
                                      one month
                              --------
                                      two months
                              --------
                                      three months
                              --------

4.       As of the date on which funds are to be advanced, all representations
         and warranties contained in the Credit Agreement and in the other
         Credit Documents will be true and correct in all material respects.

                                 Exhibit 2.2-1
<PAGE>

5.       As of the date on which funds are to be advanced, no Default or Event
         of Default will exist or be continuing or will be caused by the making
         of Bridge Loans pursuant to this Notice of Borrowing.

                                           ATMOS ENERGY CORPORATION,
                                           a Texas and Virginia corporation

                                           By:
                                              ----------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------

                                 Exhibit 2.2-2
<PAGE>

                                                                     EXHIBIT 2.4

                    FORM OF NOTICE OF CONTINUATION/CONVERSION

TO:      BANK ONE, N.A., as Administrative Agent
         One Bank One Plaza
         Chicago, Illinois 60670

RE: Bridge Credit Agreement dated as of October 7, 2002 among Atmos Energy
Corporation (the "Borrower"), the Lenders named therein and Bank One, NA, as
Administrative Agent for the Lenders (as the same may be amended, modified,
extended or restated from time to time, the "Credit Agreement")

DATE:    _____________, 200___

------------------------------------------------------------------------

1. This Notice of Continuation/Conversion is made pursuant to the terms of the
Credit Agreement. All capitalized terms used herein unless otherwise defined
shall have the meanings set forth in the Credit Agreement.

2. Please be advised that the Borrower is requesting that a portion of the
current outstanding Bridge Loans in the amount of $_________ currently accruing
interest at _____ be continued or converted as of ___________, 200__ at the
interest rate option set forth in paragraph 3 below.

3. The interest rate option applicable to the continuation or conversion of all
or part of the existing Bridge Loans (as set forth above) shall be:

         a.              the Base Rate
                --------
         b.              the adjusted Eurodollar Rate for an Interest Period of:
                --------
                                            one month
                                   --------
                                            two months
                                   --------
                                            three months
                                   --------

                                            ATMOS ENERGY CORPORATION,
                                            a Texas and Virginia corporation

                                            By:
                                                --------------------------------
                                            Name:
                                                  ------------------------------
                                            Title:
                                                   -----------------------------

                                 Exhibit 2.4-1
<PAGE>

                                                                     EXHIBIT 2.7

                                     FORM OF
                                BRIDGE LOAN NOTE

                                                             ___________, 200___

         FOR VALUE RECEIVED, ATMOS ENERGY CORPORATION, a Texas and Virginia
corporation (the "Borrower"), hereby promises to pay to the order of
______________ (the "Lender"), at the office of Bank One, NA (the
"Administrative Agent") as set forth in that certain Bridge Credit Agreement
dated as of October 7, 2002 among the Borrower, the Lenders named therein
(including the Lender) and the Administrative Agent (as the same may be amended,
modified, extended or restated from time to time, the "Credit Agreement") (or at
such other place or places as the holder of this Bridge Loan Note may
designate), the aggregate amount of all Bridge Loans made by the Lender under
the Credit Agreement (and not otherwise repaid), in lawful money and in
immediately available funds, on the dates and in the principal amounts provided
in the Credit Agreement, and to pay interest on the unpaid principal amount of
each Bridge Loan made by the Lender, at such office, in like money and funds,
for the period commencing on the date of each Bridge Loan until each Bridge Loan
shall be paid in full, at the rates per annum and on the dates provided in the
Credit Agreement.

         This Note is one of the Bridge Loan Notes referred to in the Credit
Agreement and evidences Bridge Loans made by the Lender thereunder. The Lender
shall be entitled to the benefits of the Credit Agreement. Capitalized terms
used in this Bridge Loan Note have the respective meanings assigned to them in
the Credit Agreement and the terms and conditions of the Credit Agreement are
expressly incorporated herein and made a part hereof.

         The Credit Agreement provides for the acceleration of the maturity of
the Bridge Loans evidenced by this Bridge Loan Note upon the occurrence of
certain events (and for payment of collection costs in connection therewith) and
for prepayments of Bridge Loans upon the terms and conditions specified therein.
In the event this Bridge Loan Note is not paid when due at any stated or
accelerated maturity, the Borrower agrees to pay, in addition to the principal
and interest, all costs of collection, including reasonable attorney fees.

         Except as permitted by Section 11.3(b) of the Credit Agreement, this
Bridge Loan Note may not be assigned by the Lender to any other Person.

         THIS BRIDGE LOAN NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

                                  Exhibit 2.7-1
<PAGE>

         IN WITNESS WHEREOF, the Borrower has caused this Bridge Loan Note to be
executed as of the date first above written.

                                            ATMOS ENERGY CORPORATION,
                                            a Texas and Virginia corporation

                                            By:
                                                --------------------------------
                                            Name:
                                                  ------------------------------
                                            Title:
                                                   -----------------------------

                                  Exhibit 2.7-2
<PAGE>

                                                                  EXHIBIT 7.1(c)

                          FORM OF OFFICER'S CERTIFICATE

TO:               BANK ONE, N.A., as Administrative Agent
                  One Bank One Plaza
                  Chicago, Illinois 60670

RE:               Bridge Credit Agreement dated as of October 7, 2002 among
                  Atmos Energy Corporation (the "Borrower"), the Lenders named
                  therein and Bank One, N.A., as Administrative Agent for the
                  Lenders (as the same may be amended, modified, extended or
                  restated from time to time, the "Credit Agreement")

DATE:             ________________, 200_

--------------------------------------------------------------------------------

         Pursuant to the terms of the Credit Agreement, I,
_______________________________, ____________ of the Borrower, hereby certify on
behalf of the Borrower that, as of the quarter/year ending ____________, 200_,
the statements below are accurate and complete in all material respects (all
capitalized terms used herein unless defined shall have the meanings set forth
in the Credit Agreement):

                  a. Attached hereto as Schedule I are calculations
         demonstrating compliance by the Borrower with the financial covenant
         set forth in Section 7.2 of the Credit Agreement, as of the end of the
         fiscal period cited above.

                  b. No Default or Event of Default exists under the Credit
         Agreement, except as indicated on a separate page attached hereto,
         together with an explanation of the action taken or proposed to be
         taken by the Borrower with respect thereto.

                  c. The quarterly/annual financial statements for the fiscal
         period cited above which accompany this certificate are true and
         correct and have been prepared in accordance with GAAP (in the case of
         any quarterly financial statements, subject to changes resulting from
         audit and normal year-end audit adjustments).

                                            ATMOS ENERGY CORPORATION

                                            By:
                                                --------------------------------
                                            Name:
                                                  ------------------------------
                                            Title:
                                                   -----------------------------

                                Exhibit 7.1(c)-1
<PAGE>

                       SCHEDULE I TO OFFICER'S CERTIFICATE

            COMPLIANCE WITH SECTION 7.2: DEBT TO CAPITALIZATION RATIO

<Table>
<S>      <C>                                                          <C>
1.       Consolidated Funded Debt                                     $
                                                                       ----------
2        Consolidated Capitalization                                  $
                                                                       ----------
3.       Debt to Capitalization Ratio:  (Line 1 divided by Line 2)
                                                                      -----------
</Table>

         Maximum Allowed:  Line 3 shall be less than or equal to 0.70 to 1.0

                                Exhibit 7.1(c)-2
<PAGE>

                                                                 EXHIBIT 11.3(b)

                          FORM OF ASSIGNMENT AGREEMENT

         Reference is made to that certain Bridge Credit Agreement, dated as of
October 7, 2002, among Atmos Energy Corporation (the "Borrower"), the Lenders
party thereto and Bank One, NA, as Administrative Agent for the Lenders (as the
same may be amended, modified, extended or restated from time to time, the
"Credit Agreement"). Capitalized terms used herein shall have the meanings
ascribed thereto in the Credit Agreement.

         1. The Assignor hereby sells and assigns to the Assignee, without
recourse and without representation and warranty except as expressly set forth
herein, and the Assignee hereby purchases and assumes from the Assignor, without
recourse and without representation and warranty except as expressly set forth
herein, the interests set forth below (the "Assigned Interest") in the
Assignor's rights and obligations under the Credit Agreement, including, without
limitation, the interest set forth below in the Commitment Percentage of the
Assignor on the Effective Date (as defined below) and the Loans owing to the
Assignor in connection with the Assigned Interest which are outstanding on the
Effective Date. The purchase of the Assigned Interest shall be at par (unless
otherwise agreed to by the Assignor and the Assignee) and periodic payments made
with respect to the Assigned Interest which (a) accrued prior to the Effective
Date shall be remitted to the Assignor and (b) accrue from and after the
Effective Date shall be remitted to the Assignee.

         2. The Assignor (a) warrants to the Assignee that it is the legal and
beneficial owner of the Assigned Interest and that the Assigned Interest is free
and clear of any adverse claim created by the Assignor; (b) makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the
Credit Documents or any other document or instrument furnished pursuant thereto
or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of Credit Documents or any document or instrument furnished pursuant
thereto; (c) makes no representation or warranty and assumes no responsibility
with respect to the financial condition of the Borrower or the performance or
observance by the Borrower of any of its obligations under the Credit Documents
or any document or instrument furnished pursuant thereto and (d) if the Assignor
is hereby assigning all of its Commitment, the Assignor attaches the Notes held
by the Assignor and requests that the Administrative Agent exchange such Notes
for new Notes in favor of the Assignee.

         3. The Assignee (a) confirms that it is legally authorized to enter
into this Assignment Agreement; (b) confirms that it has received a copy of the
Credit Agreement, the other Credit Documents and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter to this Assignment Agreement; (c) agrees that it will,
independently and without reliance upon the Administrative Agent, the Assignor
or any other Lender, and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Agreement and the other Credit
Documents; (d) confirms that it is an Eligible Assignee; (e) appoints and
authorizes the Administrative Agent to take such action on its behalf and to
exercise such powers under the Credit Documents as are delegated to the
Administrative Agent

                                 Exhibit 11.3(b)-1

<PAGE>

by the terms thereof, together with such powers as are reasonably incidental
thereto; (f) agrees that it will perform in accordance with their terms all of
the obligations which by the terms of the Credit Agreement and the other Credit
Documents are required to be performed by it as a Lender; and (g) attaches any
U.S. Internal Revenue Service or other forms required under Section 4.4.

         4. Following the execution of this Assignment Agreement, it will be
delivered to the Administrative Agent, together with the transfer fee required
pursuant to Section 11.3(b) of the Credit Agreement, if any, for acceptance and
recording by the Administrative Agent. The effective date for this Assignment
Agreement (the "Effective Date") shall be the date of acceptance hereof by the
Administrative Agent and the Borrower, as applicable, unless otherwise specified
herein.

         5. Upon the consent of the Borrower and the Administrative Agent, as
applicable, as of the Effective Date, (a) the Assignment shall be a party to the
Credit Agreement and the other Credit Documents and, to the extent provided in
this Assignment Agreement, have the rights and obligations of a Lender
thereunder and (b) the Assignor shall, to the extent provided in this Assignment
Agreement, relinquish its rights and be released from its obligations under the
Credit Agreement and the other Credit Documents.

         6. This Assignment Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.

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

         8. Terms of Assignment

<Table>
<S>                 <C>                                                            <C>
            (a)     Date of Assignment:
                                                                                   -----------------
            (b)     Legal Name of Assignor:
                                                                                   -----------------
            (c)     Legal Name of Assignee:
                                                                                   -----------------
            (d)     Effective Date of Assignment:
                                                                                   -----------------
            (e)     Commitment Percentage Assigned:                                                %
                                                                                   ----------------
            (f)     Commitment Percentage of Assignor after
                    Assignment                                                                     %
                                                                                   ----------------
            (g)     Total Bridge Loans outstanding as of
                    Effective Date                                                 $
                                                                                    ----------------
</Table>

                                 Exhibit 11.3(b)-2
<PAGE>

<Table>
<S>                 <C>                                                            <C>
            (h)     Principal Amount of Bridge Loans assigned
                    on Effective Date (the amount set forth in
                    (g) multiplied by the percentage set forth
                    in (e))                                                        $
                                                                                    ----------------
            (i)     Bridge Loan Commitment                                         $
                                                                                    ----------------
            (j)     Principal Amount of Bridge Loan Commitment
                    Assigned on the Effective Date (the amount
                    set forth in (i) multiplied by the
                    percentage set forth in (e))                                   $
                                                                                    ----------------
</Table>

                                 Exhibit 11.3(b)-3
<PAGE>

The terms set forth above are hereby agreed to as of the date first above
written:

                             , as Assignor
-----------------------------

By:
    --------------------------------------
Name:
      ------------------------------------
Title:
       -----------------------------------

                             , as Assignee
-----------------------------

By:
    --------------------------------------
Name:
      ------------------------------------
Title:
       -----------------------------------

                                           CONSENTED TO (if applicable):

                                           ATMOS ENERGY CORPORATION

                                           By:
                                               --------------------------------
                                           Name:
                                                 ------------------------------
                                           Title:
                                                  -----------------------------

                                           BANK ONE, NA,
                                           as Administrative Agent

                                           By:
                                               --------------------------------
                                           Name:
                                                 ------------------------------
                                           Title:
                                                  -----------------------------

                                 Exhibit 11.3(b)-4

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