Document:

Exhibit 10.1 Cleco Corp 2005 Credit Agreement

       
EXHIBIT 10.1

CONFORMED COPY

	
    
    

	
    
	
    
    CREDIT
  AGREEMENT

dated as of April 25, 2005

among

CLECO CORPORATION,
as Borrower

    
The Lenders Party Hereto

JPMORGAN CHASE BANK, N.A. and WESTLB AG, NEW YORK BRANCH,
as Syndication Agents

    
KEYBANK NATIONAL ASSOCIATION and UNION BANK OF CALIFORNIA, N.A.,

    as Documentation Agents

and

THE BANK OF NEW YORK,
    
as Administrative Agent
___________________________

    BNY
  CAPITAL MARKETS, INC.,
and 
J.P. MORGAN SECURITIES INC.,
as Co‐Lead Arrangers

    BNY CAPITAL MARKETS, INC., 
as Book Runner

    
	
    
	
    Bryan
  Cave LLP
1290 Avenue of the Americas
New York, New York 10104

    

RSDOCS1\1233425.1

TABLE OF CONTENTS

	 	
    Page

 

	
    Article 1. DEFINITIONS

    	
    

    1

 
	
    Section 1.1     
    Defined Terms
	
    1
	
    Section 1.2     
    Classification of Loans and Borrowings
	
    21
	
    Section 1.3     
    Terms Generally
	
    21
	
    Section 1.4     
    Accounting Terms; GAAP
	
    22
	
    Section 1.5     
    Rounding
	
    22
	
    Article 2. THE CREDITS

    	
    

    22

 
	
    Section 2.1     
    Commitments
	
    22
	
    Section 2.2     
    Loans and Borrowings
	
    22
	
    Section 2.3     
    Requests for Borrowings
	
    23
	
    Section 2.4     
    Funding of Borrowings
	
    24
	
    Section 2.5     
    Termination, Reduction and Increase of Commitments
	
    24
	
    Section 2.6     
    Repayment of Loans; Evidence of Debt
	
    26
	
    Section 2.7     
    Prepayment of Loans
	
    26
	
    Section 2.8     
    Letters of Credit
	
    27
	
    Section 2.9     
    Payments Generally; Pro Rata Treatment; Sharing of Set‐offs
	
    31
	
    Article 3. INTEREST, FEES, YIELD
    PROTECTION, ETC
	
    

    32

 
	
    Section 3.1     
    Interest
	
    32
	
    Section 3.2     
    Interest Elections Relating to Borrowings
	
    33
	
    Section 3.3     
    Fees
	
    34
	
    Section 3.4     
    Alternate Rate of Interest
	
    35
	
    Section 3.5     
    Increased Costs; Illegality
	
    36
	
    Section 3.6     
    Break Funding Payments
	
    37
	
    Section 3.7     
    Taxes
	
    38
	
    Section 3.8     
    Mitigation Obligations
	
    39
	
    Article 4. REPRESENTATIONS AND WARRANTIES

    	
    

    40

 
	
    Section 4.1     
    Organization; Powers
	
    40
	
    Section 4.2     
    Authorization; Enforceability
	
    40
	
    Section 4.3     
    Governmental Approvals; No Conflicts
	
    40
	
    Section 4.4     
    Financial Condition; No Material Adverse Change
	
    41
	
    Section 4.5     
    Properties
	
    41
	
    Section 4.6     
    Litigation and Environmental Matters
	
    41
	
    Section 4.7     
    Compliance with Laws and Agreements
	
    43
	
    Section 4.8     
    Investment and Holding Company Status
	
    43
	
    Section 4.9     
    Taxes
	
    43
	
    Section 4.10    ERISA

    	
    43
	
    Section 4.11    Disclosure

    	
    43
	
    Section 4.12    Subsidiaries

    	
    44
	
    Section 4.13    Federal
    Reserve Regulations, etc
	
    44
	
    Article 5. CONDITIONS
	
    

    44

 
	
    Section 5.1     
    Closing Date
	
    44
	
    Section 5.2     
    Each Credit Event
	
    46
	
    Article 6. AFFIRMATIVE COVENANTS

    	
    

    47

 
	
    Section 6.1     
    Financial Statements and Other Information
	
    47
	
    Section 6.2     
    Notices of Material Events
	
    48
	
    Section 6.3     
    Legal Existence
	
    49

 

TABLE OF CONTENTS

	 	
    Page

 
	
    Section 6.4     
    Taxes
	
    49
	
    Section 6.5     
    Insurance
	
    50
	
    Section 6.6     
    Payment of Indebtedness and Performance of Obligations
	
    50
	
    Section 6.7     
    Condition of Property
	
    50
	
    Section 6.8     
    Observance of Legal Requirements
	
    50
	
    Section 6.9     
    Inspection of Property; Books and Records; Discussions
	
    50
	
    Section 6.10    Licenses,
    Intellectual Property
	
    51
	
    Section 6.11    Financial
    Covenants
	
    51
	
    Section 6.12    Use of
    Proceeds
	
    51
	
    Article 7. NEGATIVE COVENANTS

    	
    

    51

 
	
    Section 7.1     
    Indebtedness; Equity Interests
	
    52
	
    Section 7.2     
    Liens
	
    52
	
    Section 7.3     
    Merger, Consolidation, Purchase or Sale of Assets, Etc
	
    54
	
    Section 7.4     
    Loans, Advances, Investments, etc
	
    55
	
    Section 7.5     
    Amendments, etc. of Employee Stock Ownership Plan
	
    56
	
    Section 7.6     
    Restricted Payments
	
    56
	
    Section 7.7     
    Transactions with Affiliates
	
    57
	
    Section 7.8     
    Restrictive Agreements
	
    57
	
    Section 7.9     
    Permitted Hedge Agreements
	
    58
	
    Section 7.10    Covenants
    Applicable to the Unrestricted Subsidiary Group
	
    58
	
    Article 8. EVENTS OF DEFAULT

    	
    

    59

 
	
    Article 9. THE ADMINISTRATIVE AGENT

    	
    

    61

 
	
    Article 10. MISCELLANEOUS

    	
    

    63

 
	
    Section 10.1    Notices

    	
    63
	
    Section 10.2    Waivers;
    Amendments
	
    64
	
    Section 10.3    Expenses;
    Indemnity; Damage Waiver
	
    65
	
    Section 10.4    Successors
    and Assigns
	
    66
	
    Section 10.5    Survival

    	
    69
	
    Section 10.6    Counterparts;
    Integration; Effectiveness
	
    69
	
    Section 10.7    Severability

    	
    69
	
    Section 10.8    Right of
    Set‐off
	
    69
	
    Section 10.9    Governing
    Law; Jurisdiction; Consent to Service of Process
	
    70
	
    Section 10.10
    WAIVER OF JURY TRIAL
	
    

    70

 
	
    Section 10.11   Headings

    	
    71
	
    Section 10.12   Interest Rate
    Limitation
	
    71
	
    Section 10.13   Advertisement

    	
    71
	
    Section 10.14   USA Patriot Act
    Notice
	
    71
	
    Section 10.15   Treatment of
    Certain Information
	
    72

(ii)

SCHEDULES:

	
    Schedule 1.1

    	
    List of Existing Letters of
  Credit

	
    Schedule 2.1

    	
    List of Commitments

    
	
    Schedule 4.6

    	
    Disclosed Matters

    
	
    Schedule 4.12

    	
    List of Subsidiaries

    
	
    Schedule 7.2

    	
    List of Existing Liens

    
	
    Schedule 7.8

    	
    List of Existing Restrictions

    
	
    Schedule 7.10(b)

    	
    List of Existing Unrestricted
  Subsidiary Group Liens

	
    Schedule 7.10(c)

    	
    List of Existing Unrestricted
  Subsidiary Group Restrictions

EXHIBITS:

	
    Exhibit A

    	
    Form of Assignment and
  Acceptance

	
    Exhibit B

    	
    Form of Opinion of Counsel to the
  Borrower

	
    Exhibit C

    	
    Form of Credit Request

    
	
    Exhibit D

    	
    Form of Note

    
	
    Exhibit E

    	
    Form of Compliance Certificate

    
	
    Exhibit F

    	
    Form of Increase Supplement

    
	
    Exhibit G

    	
    Approved Subordination Terms

    

(iii)

CREDIT AGREEMENT, dated as of April 25, 2005,
by and among CLECO CORPORATION, the Lenders party hereto, JPMORGAN CHASE BANK,
N.A. and WESTLB AG, NEW YORK BRANCH, as syndication agents hereunder, KEYBANK
NATIONAL ASSOCIATION and UNION BANK OF CALIFORNIA, N.A., as documentation
agents hereunder, and THE BANK OF NEW YORK, as Administrative Agent for the
Lenders hereunder.

The parties hereto agree as follows:

Article
1.

DEFINITIONS

Section 1.1               
Defined TermsAs used in this Credit Agreement, the following
terms have the meanings specified below:

"ABR", when used in reference to any
Loan or Borrowing, refers to whether such Loan, or the Loans comprising such
Borrowing, are bearing interest at a rate determined by reference to the Alternate
Base Rate.

"Acadia Holdings" means Acadia Power
Holdings LLC, a Louisiana limited liability company and a wholly owned
subsidiary of Midstream.

"Acadia Power" means Acadia Power
Partners LLC, a Delaware limited liability company, which is fifty percent
(50%) owned by Acadia Holdings.

"Accountants" means
PricewaterhouseCoopers, L.L.P. or other independent public accountants of
recognized national standing.

"Adjusted LIBO Rate" means, with respect
to any Eurodollar Borrowing for any Interest Period, an interest rate per annum
(rounded upwards, if necessary, to the next 1/100 of 1%) equal to (i) the LIBO Rate for such Interest Period
multiplied by (ii) the Statutory Reserve Rate.

"Adjusted Total Indebtedness" means at
any time, Total Indebtedness minus the amount of any Indebtedness of the
Borrower or any Subsidiary (other than the Utility) included therein to the
extent that it is non‐recourse to the Borrower or the Utility.

"Adjusted Total Capitalization" means at
any time, the difference between (i) the sum of each of the following at such
time with respect to the Borrower and the Subsidiaries, determined on a
consolidated basis in accordance with GAAP: (a) preferred Equity Interests
(less deferred compensation relating to unallocated convertible preferred
Equity Interests held by the Employee Stock Ownership Plan), plus (b)
common Equity Interests and any premium on capital Equity Interests thereon (as
such term is used in the Financial Statements), plus (c) retained
earnings, plus (d) Adjusted Total Indebtedness, and (ii) treasury stock
at such time of the Borrower and the Subsidiaries, determined on a consolidated
basis in accordance with GAAP.

"Administrative Agent" means BNY, in its
capacity as administrative agent for the Lenders hereunder.

 

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

"Affiliate" means, with respect to a
specified Person, another Person that directly, or indirectly through one or
more intermediaries, Controls or is Controlled by or is under common Control
with the Person specified.

"Agents" means, collectively, the
Administrative Agent, the Syndication Agents and the Documentation Agents.

 "Agreement Date" means the first date
appearing in this Credit Agreement.

"Alternate Base Rate" means, for any
day, a rate per annum equal to the greater of (i) the Prime Rate in effect on such day and (ii) the Federal Funds Effective Rate in effect on such day
plus
1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime
Rate or the Federal Funds Effective Rate shall be effective from and including
the effective date of such change in the Prime Rate or the Federal Funds
Effective Rate.

"Applicable Margin" means, at all times
from and after the Agreement Date and during the periods in which the
applicable Pricing Level set forth below is in effect: (i) with respect to Eurodollar Borrowings and the Letter of Credit participation fee payable under
Section
3.3(b)(i), the percentage set forth in the following table under the
heading "Eurodollar Margin and LC Fee",
and (ii) with respect to facility fees payable under Section 3.3(a), the
percentage set forth in the following table under the heading "Facility Fee":

  	
      Pricing Level

      

	
      
      Eurodollar Margin 
and LC Fee

      	
      
      
Facility Fee

      
	
      Pricing Level I

      	
      0.400%

      	
      0.100%

      
	
      Pricing Level II

      	
      0.475%

      	
      0.125%

      
	
      Pricing Level III

      	
      0.550%

      	
      0.150%

      
	
      Pricing Level IV

      	
      0.675%

      	
      0.200%

      
	
      Pricing Level V

      	
      0.875%

      	
      0.250%

      
	
      Pricing Level VI
	
      0.950%

      	
      0.300%

      
	
      Pricing Level VII
	
      1.375%

      	
      0.375%

      

Changes in the Applicable Margin resulting from
a change in the Pricing Level shall become effective on the effective date of
any change in the Senior Debt Rating from S&P or Moody's.  Notwithstanding
anything in clause (a) of this definition to the contrary, in the event of a
split in the Senior Debt Rating from S&P and Moody's that would otherwise
result in the application of more than one Pricing Level (had the provisions
regarding the applicability of other Pricing Levels contained in the
definitions thereof not been given effect), then the Applicable Margin shall be
determined as follows: (i) in the event of a split in the Senior Debt Rating
from S&P and Moody's by one rating level, then the Applicable Margin shall
be determined using the Pricing Level within which the higher of the two rating
categories would otherwise fall, and (ii) in the event of a split in the Senior
Debt Rating from S&P and Moody's by more than one rating level, then the Applicable
Margin shall be determined using the Pricing Level within which the next
highest level above the lower of the two rating categories would otherwise
fall.

-2-

"Applicable Percentage" means, with
respect to any Lender, the percentage of the total Commitments represented by
such Lender's Commitment. If the Commitments have terminated or expired, the
Applicable Percentages shall be determined based upon the Commitments most
recently in effect, giving effect to any assignments.

"Approved Fund" means, with respect to
any Lender that is a fund that invests in commercial loans, any other fund that
invests in commercial loans and is managed or advised by the same investment
advisor as such Lender or by an Affiliate of such investment advisor.

"Approved Subordination Terms" means
terms of subordination substantially as set forth on Exhibit G.

"Asset Sale" means any sale, transfer or
other disposition by the Borrower or any of the Restricted Subsidiaries to any
Person of any property (including any Equity Interests or other securities of
another Person) of the Borrower or any of the Restricted Subsidiaries, other
than inventory or accounts receivables or other receivables sold, transferred
or otherwise disposed of in the ordinary course of business, provided
that, notwithstanding anything in this definition to the contrary, for purposes
of the Loan Documents, the term "Asset Sale" shall not include the creation or
granting of any Lien other than a conditional sale or other title retention
arrangement.

"Assignment and Acceptance" means an
assignment and acceptance entered into by a Lender and an assignee (with the
consent of any party whose consent is required by Section 10.4), and
accepted by the Administrative Agent, substantially in the form of Exhibit A
or in such other form as shall be acceptable to the Administrative Agent.

"Availability Period" means the period
from and including the Closing Date to but excluding the earlier of the
Maturity Date and, if different, the date of termination of the Commitments.

"BNY" means The Bank of New York.

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

"Borrower" means Cleco Corporation a
Louisiana corporation.

"Borrower Financial Statements" has the
meaning assigned to such term in Section 4.4(a).

"Borrower
Materials" has the meaning assigned to such term in Section 6.2.

"Borrowing" means Loans of the same Type
made, converted or continued on the same date and, in the case of Eurodollar
Loans, as to which a single Interest Period is in effect.

"Business Day" means any day that is not
a Saturday, Sunday or other day on which commercial banks in New York City are
authorized or required by law to remain closed, provided that, when used
in connection with a Eurodollar Loan, the term "Business Day" shall also
exclude any day on which banks are not open for dealings in dollar deposits in
the London interbank market.

-3-

"Capital Lease Obligations" means with
respect to any Person, obligations of such Person with respect to leases which,
in accordance with GAAP, are required to be capitalized on the financial
statements of such Person.

"Change in Control" means the occurrence
of any of the following: (i) the consummation of any transaction the result of
which is that any "person" or "group" (within the meaning of Section 13(d)(3)
of the Securities Exchange Act of 1934) becomes the "beneficial owner" (as such
term is defined in Rule 13d‐3 under the Securities Exchange Act of 1934)
of more than 50% of the total voting power in the aggregate of all classes of
the Voting Securities of the Borrower then outstanding, (ii) the occupation of a majority of the seats (other than vacant seats) on the board of directors of
the Borrower by Persons who were neither nominated by the board of directors of
the Borrower nor appointed by directors so nominated, (iii) the failure of the Borrower to (x) own directly, beneficially and of record, 100% of the
aggregate ordinary voting power and economic interests represented by the
issued and outstanding equity interests of the Utility on a fully diluted basis
or (y) be the sole member of the Utility, (iv) the failure of the Borrower to own directly 100% of the aggregate ordinary voting power and economic
interests represented by the issued and outstanding equity interests of Midstream
on a fully diluted basis, (v) the failure of the Borrower to own directly or
indirectly, 100% of the aggregate ordinary voting power and economic interests
represented by the issued and outstanding equity interests of Acadia Holdings
and Evangeline, in each case on a fully diluted basis or (vi) the failure of the Borrower to own directly or indirectly, 50% of the aggregate ordinary voting
power and economic interests represented by the issued and outstanding equity
interests of Acadia Power.

"Change in Law" means (i) the adoption of any law, rule or regulation after the Agreement Date, (ii) any change in any law, rule or regulation or in the interpretation or application
thereof by any Governmental Authority after the Agreement Date or (iii) compliance by any Credit Party (or, for purposes of
Section 3.5(b), by any
lending office of such Credit Party or by such Credit Party's holding company,
if any) with any request, guideline or directive (whether or not having the
force of law) of any Governmental Authority made or issued after the Agreement
Date.

"Chase" means JPMorgan Chase Bank, N.A.

"CLE Resources" means CLE Resources, Inc.,
a Delaware corporation and a direct wholly‐owned Subsidiary.

"Cleco Support" means Cleco Support
Group LLC, a Louisiana limited liability company and a direct wholly‐owned
Subsidiary.

"Closing Date" means the date on which
the conditions specified in Section 5.1 are satisfied (or waived in
accordance with Section 10.2).

"Code" means the Internal Revenue Code
of 1986. 

"Commitment" means, with respect to each
Lender, the commitment of such Lender to make Loans and to acquire
participations in Letters of Credit hereunder in an aggregate outstanding
amount not exceeding the amount of such Lender's Commitment as set forth on Schedule
2.1 plus, the amount of any increase set forth in each Increase
Supplement executed and delivered by such Lender, the Borrower and the
Administrative Agent or in the Assignment and Acceptance pursuant to which such
Lender shall have assumed its Commitment in accordance with Section 10.4(b),
as applicable, as such Commitment may be adjusted from time to time pursuant to
Section 2.5 or pursuant to 

-4-

assignments by or to such Lender pursuant to
Section 10.4.  The initial aggregate amount of the Commitments on the Agreement
Date is $150,000,000.

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

"Control" means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
or policies of a Person, whether through the ability to exercise voting power,
by contract or otherwise. The terms "Controlling" and "Controlled" have
meanings correlative thereto.

"Corporate Officer" means with respect
to the Borrower, the chairman of the board, the president, any vice president,
the chief executive officer, the chief financial officer, the secretary, the
treasurer, or the controller thereof.

"Credit Event" has the meaning assigned
to such term in Section 5.2.

"Credit Exposure" means, with respect to
any Lender at any time, the sum of the aggregate outstanding principal amount
of such Lender's Loans and its LC Exposure at such time.

"Credit Parties" means the
Administrative Agent, the Issuing Bank and the Lenders.

"Credit Request" means a Credit Request,
substantially in the form of Exhibit C, or in such other form as shall
be acceptable to the Administrative Agent.

 "Default" means any event or condition
which constitutes an Event of Default or that upon notice, lapse of time or
both would, unless cured or waived, become an Event of Default.

"Disclosed Matters" means the actions,
suits, proceedings and environmental matters disclosed in Schedule 4.6.

"Disqualified Stock" means any Equity
Interest that, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable at the option of the holder
thereof), or upon the happening of any event, matures (excluding any maturity
as a result of an optional redemption by the issuer thereof to the extent not
prohibited by this Credit Agreement) or is mandatorily redeemable, pursuant to
a sinking fund obligation or otherwise, or is redeemable at the unconditional
sole option of the holder thereof (other than solely for Equity Interests which
do not constitute Disqualified Stock), in whole or in part, on or prior to the
date that is one year after the Maturity Date.  The term "Disqualified Stock"
shall also include any options, warrants or other rights that are convertible
into Disqualified Stock or that are redeemable at the option of the holder, or
required to be redeemed, prior to the date that is 180 days after the Maturity
Date.

"Documentation Agents" means,
collectively, KeyBank National Association and Union Bank of California, N.A in
their capacities as documentation agents for the Lenders hereunder.

 "dollars" or "$" refers to
lawful money of the United States of America.

"EBITDA" means, for any period, net
income for such period of the Borrower and the Subsidiaries, determined on a
consolidated basis in accordance with GAAP, plus, without duplication
and to the extent deducted in determining such net income, the sum of (i) Interest Expense for such period, (ii) provision for income taxes for such period, (iii) the aggregate amount attributable to

-5-

depreciation and amortization for such period,
and (iv) the aggregate amount of items to the extent constituting extraordinary
non‐recurring or non‐operating charges or expenses during such
period and minus, without duplication and to the extent added in
determining such net income for such period, the aggregate amount of
extraordinary, non‐recurring and non‐operating additions to income
during such period.

"Eligible Assignee" means any of the
following: (i) commercial banks, finance companies, insurance companies and
other financial institutions and funds (whether a corporation, partnership or
other entity) engaged generally in making, purchasing or otherwise investing in
commercial loans in the ordinary course of its business; provided that
any such entity shall be entitled, as of the date such entity becomes a Lender,
to receive payments under its Note without deduction or withholding with
respect to United States federal income tax, (ii) each of the Lenders and (iii)
any Affiliate or Approved Fund of a Lender.

"Eligible SPC" means a special purpose
corporation that (i) is organized under the laws of the United States or any
state thereof, (ii) is engaged in making, purchasing or otherwise investing in
commercial loans in the ordinary course of its business and (iii) issues (or the parent of which issues) commercial paper rated at least A-1 or the
equivalent thereof by Standard & Poor's Ratings Services, a division of The
McGraw Hill Companies or at least P-1 or the equivalent thereof by from Moody's
Investors Service, Inc.

"Employee Stock Ownership Plan" means
The Cleco Power LLC 401(k) Savings and Investment Plan.

"environment"
means ambient air, surface water and groundwater (including potable water,
navigable water and wetlands), the land surface or subsurface strata, the
workplace or as otherwise defined in any Environmental Law.

"Environmental
Claim" means any written accusation, allegation, notice of
violation, claim, demand, order, directive, cost recovery action or other cause
of action by, or on behalf of, any Governmental Authority or any Person for
damages, injunctive or equitable relief, personal injury (including sickness,
disease or death), Remedial Action costs, tangible or intangible property
damage, natural resource damages, nuisance, pollution, any adverse effect on
the environment caused by any Hazardous Material, or for fines, penalties or
restrictions, resulting from or based upon (i) the existence, or the continuation of the existence, of a Release (including sudden or non‐sudden,
accidental or non‐accidental Releases), (ii) exposure to any Hazardous Material, (iii) the presence, use, handling, transportation, storage, treatment
or disposal of any Hazardous Material or (iv) the violation or alleged violation of any Environmental Law or Environmental Permit.

"Environmental
Law" means any and all applicable present and future treaties, laws,
rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions,
notices or binding agreements issued, promulgated or entered into by or with
any Governmental Authority, relating in any way to the environment,
preservation or reclamation of natural resources, the presence, management,
Release or threatened Release of any Hazardous Material or to health and safety
matters. 

"Environmental
Permit" means any permit, approval, authorization, certificate,
license, variance, filing or permission required by or from any Governmental
Authority pursuant to any Environmental Law.

-6-

 "Equity Interest" means (i) shares of corporate stock, partnership interests, membership interests, and any other
interest that confers on a Person the right to receive a share of the profits
and losses of, or distribution of assets of, the issuing Person, and (ii) all warrants, options or other rights to acquire any Equity Interest set forth in
clause (i) of this defined term.

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

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

"ERISA Event" means (i) any "reportable event", as defined in Section 4043 of ERISA or the regulations issued
thereunder with respect to a Plan (other than an event for which the 30 day
notice period is waived); (ii) the existence with respect to any Plan of an
"accumulated funding deficiency" (as defined in Section 412 of the Code or
Section 302 of ERISA), whether or not waived; (iii) the filing pursuant to Section 412(d) of the Code or Section 303(a) of ERISA of an application for a
waiver of the minimum funding standard with respect to any Plan; (iv) the incurrence by the Borrower, any Subsidiary or any ERISA Affiliate of any liability under Title
IV of ERISA with respect to the termination of any Plan; (v) the receipt by  the Borrower, any Subsidiary or any ERISA Affiliate from the PBGC or a plan
administrator of any notice relating to an intention to terminate any Plan or
Plans or to appoint a trustee to administer any Plan; (vi) the incurrence by the Borrower, any Subsidiary or any ERISA Affiliate of any liability with
respect to the withdrawal or partial withdrawal from any Plan or Multiemployer
Plan; or (vii) the receipt by the Borrower, any Subsidiary or any ERISA
Affiliate of any notice, or the receipt by any Multiemployer Plan from the
Borrower, any Subsidiary or any ERISA Affiliate of any notice, concerning the
imposition of Withdrawal Liability or a determination that a Multiemployer Plan
is, or is expected to be, insolvent or in reorganization, within the meaning of
Title IV of ERISA.

"Eurodollar", when used in reference to
any Loan or Borrowing, refers to whether such Loan, or the Loans comprising
such Borrowing, are bearing interest at a rate determined by reference to the
Adjusted LIBO Rate.

"Evangeline" means Cleco Evangeline LLC,
a Louisiana limited liability company and a wholly owned subsidiary of
Midstream.

"Event of Default" has the meaning
assigned to such term in Article 8.

"Evergreen Letter of Credit" means any
Letter of Credit that, by its terms, provides that it shall be automatically
renewed or extended for a stated period of time at the end of its then scheduled
expiry date unless the Issuing Bank notifies the beneficiary thereof prior to
such expiry date that the Issuing Bank elects not to renew or extend such
Letter of Credit.

"Existing Credit Agreement" means the
Credit Agreement, dated as of April 30, 2004, as amended, by and among the
Borrower, the lenders party thereto, JPMorgan Chase Bank, N.A. (formerly Bank
One, NA), as syndication agent, WestLB, as documentation agent, Allied Irish
Banks, p.l.c., CoBank, ACB, Commerzbank AG, New York and Grand Cayman Branches
and KeyBank National Association, as managing agents hereunder, and BNY, as
administrative agent.

-7-

"Existing Letter of Credit" means any
letter of credit set forth in Schedule 1.1, but not any renewal or
extension thereof.

"Existing Loan Documents" means,
collectively, the Existing Credit Agreement and the other Loan Documents (as
defined therein).

"Federal Funds Effective Rate" means,
for any day, a rate per annum (expressed as a decimal, rounded upwards, if
necessary, to the next higher 1/100 of 1%) equal to the weighted average of the
rates on overnight federal funds transactions with members of the Federal
Reserve System arranged by federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on the Business Day next succeeding such
day, provided that (i) if the day for which such rate is to be
determined is not a Business Day, the Federal Funds Effective Rate for such day
shall be such rate on such transactions on the next preceding Business Day as
so published on the next succeeding Business Day, and (ii) if such rate is not so published for any day, the Federal Funds Effective Rate for such day shall
be 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 the chief
financial officer, principal accounting officer, treasurer or controller of the
Borrower.

"Foreign Lender" means any Lender that
is organized under the laws of a jurisdiction other than that in which the
Borrower is located. For purposes of this definition, the United States of
America, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

"GAAP" means generally accepted
accounting principles set forth in the opinions and pronouncements of the
Accounting Principles Board and the American Institute of Certified Public
Accountants and in the statements and pronouncements of the Financial
Accounting Standards Board or in such other statement by such other entity as
may be approved by a significant segment of the accounting profession, which
are applicable to the circumstances as of the date of determination,
consistently applied.  

"Governmental Authority" means the government
of the United States of America, any other nation or any political subdivision
thereof, whether state or local, and any agency, commission, exchange,
association, board, authority, instrumentality, regulatory body, court, central
bank or other entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to
government.

"Granting Lender" has the meaning
assigned to such term in Section 10.4(h).

 "Guarantee" of or by any Person (the "guarantor")
means any obligation, contingent or otherwise, of the guarantor guaranteeing or
having the economic effect of guaranteeing any Indebtedness or other obligation
of any other Person (the "primary obligor") in any manner, whether
directly or indirectly, and including any obligation of the guarantor, direct
or indirect, (i) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation or to purchase
(or to advance or supply funds for the purchase of) any security for the
payment thereof, (ii) to purchase or lease property, securities or services for
the purpose of assuring the owner of such Indebtedness or other obligation of
the payment thereof, (iii) to maintain working capital, equity capital or any
other financial statement condition or liquidity of the primary obligor as to
enable the primary obligor to pay such Indebtedness or other obligation or (iv) as an account party

-8-

in respect of any letter of credit or letter of guaranty issued
to support such Indebtedness or obligation, provided that the term
"Guarantee" shall not include endorsements for collection or deposit in the
ordinary course of business.  The term "Guaranteed" has a meaning correlative
thereto.  The amount of any Guarantee of a Person shall be deemed to be an
amount equal to the stated or determinable amount of the primary obligation in
respect of which such Guarantee is made (or, if less, the maximum amount of
such primary obligation for which such Person may be liable pursuant to the
terms of the instrument evidencing such Guarantee) or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof
as determined by such Person in good faith, provided that,
notwithstanding anything in this definition to the contrary, the amount of any
Guarantee of a Person in respect of any Permitted Hedge Agreement by any other
Person with a counterparty shall be deemed to be the maximum reasonably
anticipated liability of such other Person, as determined in good faith by such
Person, net of any obligation or liability of such counterparty in respect of any
Permitted Hedge Agreement with such Person, provided further that
the obligations of such other Person under such Permitted Hedge Agreement with
such counterparty shall be terminable at the election of such other Person in
the event of a default by such counterparty in its obligations to such other
Person.

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

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

"Increase Supplement" means an increase
supplement in the form of Exhibit F.

"Increasing Lender" has the meaning
assigned to such term in Section 2.5(d).

"Indebtedness" means as to any Person,
at a particular time, all items which constitute, without duplication, (i)
indebtedness for borrowed money or the deferred purchase price of property
(excluding trade payables incurred in the ordinary course of business and
excluding any such obligations payable solely through the issuance of Equity
Interests (other than the Disqualified Stock and Equity Interests convertible into
Disqualified Stock)), (ii) indebtedness evidenced by notes, bonds, debentures
or similar instruments, (iii) obligations with respect to any conditional sale
or title retention agreement, (iv) indebtedness arising under acceptance
facilities and the amount available to be drawn under all letters of credit
issued for the account of such Person and, without duplication, all drafts
drawn thereunder to the extent such Person shall not have reimbursed the issuer
in respect of the issuer's payment of such drafts, (v) all liabilities secured
by any Lien on any property owned by such Person even though such Person has
not assumed or otherwise become liable for the payment thereof (other than
carriers', warehousemen's, mechanics', repairmen's or other like non consensual
statutory Liens arising in the ordinary course of business; provided that the
amount of such liabilities included for purposes of this definition will be the
amount equal to the lesser of the fair market value of such property and the
amount of the liabilities so secured), (vi) without duplication, indebtedness
in respect of Disqualified Stock valued at the greater of its voluntary or
involuntary maximum fixed repurchase price plus accrued dividends
liabilities and indebtedness in respect of any obligation (contingent or
otherwise) to purchase, redeem, retire, acquire or make any other payment in
respect of any shares of equity securities or any option, warrant or other
right to acquire any shares of equity securities, (vii) 

-9-

obligations under Capital
Lease Obligations, (viii) Guarantees of such Person in respect of Indebtedness
of others, and (ix) to the extent not otherwise included, all net obligations
of such Person under Permitted Hedge Agreements.

"Indebtedness for Borrowed Money": as to
any Person, at a particular time, all items which constitute, without
duplication, (i) indebtedness for borrowed money, (ii) indebtedness evidenced
by notes, bonds, debentures or similar instruments and (iii) any other
Indebtedness, the incurrence of which results in cash being received by such
Person.

"Indemnitee" has the meaning assigned to
such term in Section 10.3(b).

"Indenture" means the Indenture, dated
as of May 1, 2000, between the Borrower and Bank One, NA, as trustee.

"Information" has the meaning assigned
to such term in Section 10.15.

"Innovations" means Cleco Innovations
LLC, a Louisiana limited liability company and a direct wholly‐owned
Subsidiary.

"Integrated Resources Plan" means the
portions of the Utility's strategic integrated resources plan which involves
replacing, repowering or adding electric power generation, transmission or
distribution facilities to meet the measured and forecasted demand and
consumption requirements of its customers, including the acquisition,
construction or improvement of generation facilities and fuel conversion
repowering projects for existing generation facilities to diversify fuel
sources, with any project undertaken to implement the foregoing being subject
to regulation by the LPSC by prior issuance of a certificate of public
convenience and necessity or in a ratemaking proceeding, prudence review or a
combination thereof. 

"Intellectual Property" means all
copyrights, trademarks, servicemarks, patents, trade names and service names.

"Inter‐Affiliate Policies Agreement"
means the Inter‐Affiliate Policies and the Inter‐Affiliate
Procedures of Cleco Corporation, each dated as of April 11, 2005.

"Interest Coverage Ratio" means as of
any fiscal quarter end, the ratio of (i) EBITDA for the period of the four consecutive fiscal quarters ending thereon to (ii) Interest Expense for such period.

"Interest Election Request" means a
request by the Borrower to convert or continue a Borrowing in accordance with Section
3.2.

"Interest Expense" means for any period,
the interest expense, both expensed and capitalized (including the interest
component in respect of Capital Lease Obligations), of the Borrower and its
Subsidiaries during such period, determined on a consolidated basis in
accordance with GAAP.

"Interest Payment Date" means (i) with respect to any ABR Loan, the last day of each March, June, September and
December, (ii) with respect to any Eurodollar Loan, the last day of the
Interest Period applicable to the Borrowing of which such Eurodollar Loan is a
part and, in the case of a Eurodollar Loan with an Interest Period of more than
three months' duration, each day prior to the 

-10-

last day of such Interest Period
that occurs at intervals of three months' duration after the first day of such
Interest Period and (iii) with respect to all Loans, the Maturity Date.

"Interest Period" means, with respect to
any Eurodollar Borrowing, the period commencing on the date of such Borrowing
and ending on the numerically corresponding day in the calendar month that is
one, two, three or six months thereafter, as the Borrower may elect, provided
that (i) if any Interest Period would end on a day other than a Business Day,
such Interest Period shall be extended to the next succeeding Business Day,
unless such next succeeding Business Day would fall in the next calendar month,
in which case such Interest Period shall end on the next preceding Business
Day, and (ii) any Interest Period that commences on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day
in the last calendar month of such Interest Period) shall end on the last
Business Day of the last calendar month of such Interest Period.  For purposes
hereof, the date of a Borrowing initially shall be the date on which such
Borrowing is made and thereafter shall be the effective date of the most recent
conversion or continuation of such Borrowing.

"Issuing Bank" means BNY, in its
capacity as issuer of Letters of Credit.

"LC Disbursement" means a payment made
by the Issuing Bank pursuant to a Letter of Credit.

"LC Exposure" means, at any time, (i) with respect to all of the Lenders, the sum, without duplication, of (x) the
aggregate undrawn amount of all outstanding Letters of Credit at such time plus
(y) the aggregate amount of all LC Disbursements that have not yet been
reimbursed by or on behalf of the Borrower at such time and (ii) with respect to each Lender, its Applicable Percentage of the amount determined
under clause (i).

"Lenders" means the Persons listed on
Schedule
2.1 and any other Person that shall have become a party hereto pursuant to
an Assignment and Acceptance an Increase Supplement, other than any such Person
that ceases to be a party hereto pursuant to an Assignment and Acceptance.

"Letter of Credit" means any Existing
Letter of Credit and any New Letter of Credit.

 "Letter of Credit Commitment" means,
with respect to the Issuing Bank, the commitment of the Issuing Bank to issue
Letters of Credit hereunder.  The amount of the Issuing Bank's Letter of Credit
Commitment is $60,000,000. 

"LIBO
Rate" means, with respect to any Eurodollar Borrowing for any
Interest Period, the rate appearing on the Dow Jones Markets Telerate Page 3750
(or on any successor or substitute page of such Service, or any successor to or
substitute for such Service, providing rate quotations comparable to those
currently provided on such page of such Service, as determined by the Administrative
Agent from time to time for purposes of providing quotations of interest rates
applicable to dollar deposits in the London interbank market) at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such
Interest Period, as the rate for dollar deposits with a maturity comparable to
such Interest Period.  In the event that such rate does not appear on the Dow
Jones Markets Telerate Page 3750 (or on any such successor or substitute page,
or any successor to or substitute for such Service) at such time for any
reason, then the "LIBO Rate" with respect to such Eurodollar Borrowing for such
Interest Period shall be the rate of interest per annum, as reported by BNY to
the Administrative Agent, quoted by BNY to leading banks in the interbank
eurodollar market as the rate at which BNY is offering Dollar deposits in an
amount equal

-11-

 approximately to the Eurodollar Loan of BNY to which such Interest
Period shall apply for a period equal to such Interest Period, as quoted at
approximately 11:00 a.m. two Business Days prior to the first day of such
Interest Period.

 "Lien" means, with respect to any
asset, (i) any mortgage, deed of trust, lien, pledge, hypothecation,
encumbrance, charge or security interest in, on or of such asset, (ii) the interest of a vendor or a lessor under any conditional sale agreement, capital
lease or title retention agreement relating to such asset and (iii) in the case of securities, any purchase option, call or similar right of a third
party with respect to such securities.

"Loan" means a loan referred to in
Section
2.1(a) and made pursuant to Section 2.4.

"Loan Documents" means this Credit
Agreement, the Notes and the documentation in respect of each Letter of Credit.

"LPSC" means the
Louisiana Public Service Commission or any Governmental Authority succeeding to
the functions thereof.

"Margin Stock" has the meaning assigned
to such term in Regulation U.

"Material Adverse Change" means a
material adverse change in (i) the financial condition, operations, business,
prospects or property of (a) the Borrower or (b) the Borrower and the
Restricted Subsidiaries, taken as a whole, (ii) the ability of the Borrower to
perform its obligations under the Loan Documents or (iii) the ability of the
Credit Parties to enforce their rights and remedies under the Loan Documents.

"Material Adverse Effect" means a
material adverse effect on (i) the financial condition, operations, business,
prospects or property of (a) the Borrower or (b) the Borrower and the
Restricted Subsidiaries, taken as a whole, (ii) the ability of the Borrower to
perform its obligations under the Loan Documents or (iii) the ability of the
Credit Parties to enforce their rights and remedies under the Loan Documents.

"Material Obligations" means as of any
date, Indebtedness (other than Indebtedness under the Loan Documents) or
operating leases of any one or more of the Borrower or any Restricted
Subsidiary or, in the case of the Borrower only, any Guarantee, in an aggregate
principal amount exceeding $20,000,000.  For purposes of determining Material
Obligations, the "principal amount" of Indebtedness, operating leases or
Guarantees at any time shall be the maximum aggregate amount (giving effect to
any netting agreements) that the Borrower or such Restricted Subsidiary, as
applicable, would be required to pay if such Indebtedness, operating leases or
Guarantees became due and payable on such day.

"Material Total Assets" means as of any
date of determination, the total assets of the Borrower and the Restricted
Subsidiaries, determined on a consolidated basis in accordance with GAAP.

 "Maturity Date" means April 23, 2010.

"Midstream" means Cleco Midstream
Resources LLC, a Louisiana limited liability company and a direct wholly-owned
Subsidiary.

-12-

"Moody's" means Moody's Investors
Service, Inc., or any successor thereto.

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

"Net Cash Receipts" means for any
consecutive twelve month period, an amount equal to the sum, without
duplication of (i) an amount (not in excess of $40,000,000) equal to the sum of
cash and cash equivalents of the Borrower on hand and the unused Commitments,
in each case on the date on which the relevant Restricted Payment is declared,
(ii) ordinary cash payments actually received during such period by the
Borrower from Subsidiaries and Unconsolidated Persons, (iii) interest income of
the Borrower, and (iv) the net change (if positive) in receivables due the
Borrower from Affiliates, minus the sum of (x) amount of any capital investments or capital expenditures made by the Borrower in any Subsidiary or
Unconsolidated Person during such period and (y) the net change (if negative) in receivables due the Borrower from Affiliates.  Notwithstanding the
forgoing, in the event of a Tolling Agreement Counterparty Default, the
termination of the relevant Tolling Agreement, any restructuring of such
Tolling Agreement or the sale or other disposition of the relevant Subsidiary
or relevant Unconsolidated Person, in each case during such period, all cash
and other cash distributions received during such period under the relevant
Tolling Agreement shall be excluded from Net Cash Receipts from the beginning
of such period, provided, however, that Net Cash Receipts for
such period shall include, without duplication, (i) cash collateral collections
and drawings under letters of credit under which the Borrower, the relevant
Subsidiary or the relevant Unconsolidated Person is the beneficiary which are
actually received by the Borrower during such period as a result of such
Tolling Agreement Counterparty Default and (ii) other cash collections actually
received by the Borrower during such period as the result of the termination or
restructuring of such Tolling Agreement or the sale of such Subsidiary or
Unconsolidated Person.  In addition, in the event that a new Tolling Agreement
is entered into by a subsidiary or Unconsolidated Person with a new Tolling
Agreement Counterparty to replace a Tolling Agreement which has been terminated
as a result of a restructuring or a Tolling Agreement Counterparty Default, Net
Cash Receipts shall be adjusted on a consistent basis to give pro forma effect
to such replacement Tolling Agreement and any changes in the sharing of
payments from the related project under the joint venture agreement related
thereto or other applicable related project contracts (or amendments thereto)
as if it was entered into on the first day of such period.

"New Letter of Credit" means any letter
of credit issued pursuant to this Credit Agreement and any successive renewals
or extensions thereof.

"Notes" means,
with respect to
each Lender, a promissory note evidencing such Lender's Loans payable to the
order of such Lender (or, if required by such Lender, to such Lender and its
registered assigns) substantially in the form of Exhibit D.

"Obligations" means (i) the due and punctual payment of (a) principal of and premium, if any, and interest
(including interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding) on the Loans, when and as due, whether at
maturity, by acceleration, upon one or more dates set for prepayment or
otherwise, and (b) all other monetary obligations, including reimbursement
obligations in respect of LC Disbursements, fees, commissions, costs, expenses
and indemnities, whether primary, secondary, direct, contingent, fixed or
otherwise (including monetary obligations incurred during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding), of the Borrower to the
Secured Parties, or that are otherwise payable to any Credit Party, in each
case under the Loan 

-13-

Documents and (ii) the due and punctual performance of all
covenants, agreements, obligations and liabilities of the Borrower under or
pursuant to the Loan Documents.

 "Other Taxes" means any and all current
or future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies arising from any payment made hereunder or from the
execution, delivery or enforcement of, or otherwise with respect to, the Loan
Documents.

"Participant" has the meaning assigned
to such term in Section 10.4(e).

"Patriot
Act" has the meaning assigned to such term in Section 10.15.

 "PBGC" means the Pension Benefit
Guaranty Corporation referred to and defined in ERISA.

"Permitted
Encumbrances" means:

(a)               
Liens imposed by law for taxes, assessments or similar charges incurred
in the ordinary course of business that are not yet due or are being contested
in compliance with Section 6.4, provided that enforcement of such
Liens is stayed pending such contest;

(b)               
landlords', vendors', carriers', warehousemen's, mechanics',
materialmen's, repairmen's and other like Liens imposed by law, arising in the
ordinary course of business and securing obligations that are not which are not
delinquent or are being contested in compliance with Section 6.6, provided
that enforcement of such Liens is stayed pending such contest;

(c)               
pledges and deposits made in the ordinary course of business in
compliance with workers' compensation, unemployment insurance and other social security
laws or regulations (but not ERISA);

(d)               
pledges and deposits to secure the performance of bids, trade contracts
(other than contracts for the payment of money), leases, purchase agreements to
the extent that the related purchase is permitted by Section 7.3, statutory
obligations, surety and appeal bonds, performance bonds and other obligations
of a like nature, in each case in the ordinary course of business; 

(e)               
judgment liens in respect of judgments that do not constitute an Event
of Default under clause (j) of Article 8; 

(f)                
easements, zoning restrictions, rights of way, rights of way, minor
defects, irregularities and other similar encumbrances on real property imposed
by law or arising in the ordinary course of business that do not secure any
monetary obligations and do not materially detract from the value of the
affected property or materially interfere with the ordinary conduct of business
of the Borrower and the Restricted Subsidiaries, as the case may be;

(g)               
Liens in favor of a financial institution encumbering deposits
(including the right of set‐off) held by such financial institution in
the ordinary course of its commercial business and which are within the general
parameters customary in the banking industry; and

-14-

(h)               
Liens on Margin Stock to the extent that a prohibition on such Liens
would violate Regulation U;

(i)                 
leases or subleases granted to others that do not materially interfere
with the ordinary conduct of business of the Borrower and the Restricted
Subsidiaries;

(j)                 
licenses of Intellectual Property granted by the Borrower or any
Restricted Subsidiary in the ordinary course of business and not materially
interfering with the ordinary conduct of the business of the Borrower and the
Restricted Subsidiaries; and

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

"Permitted Hedge Agreement" means a
transaction in futures, forwards, swaps, options or other similar contracts
(including both physical and financial settlement transactions), engaged in by
a Person as part of its normal business operation with the purpose and effect
of fixing prices as a risk management strategy or hedge against adverse changes
in the prices of electricity, gas or fuel or interest rates (including
commodity price hedges, swaps, caps, floors, collars and similar agreements
designed to protect such Person against fluctuation in commodity prices or any
option with respect to any such transaction), and not for purposes of speculation
and not intended primarily as a borrowing of funds.

"Permitted
Investments" means:

(a)   
debt obligations maturing within one year from the date of acquisition
thereof to the extent the principal thereof and interest thereon is backed by
the full faith and credit of the United States of America;

(b)   
investments in commercial paper maturing within 270 days from the date
of acquisition thereof and having, at such date of acquisition, the highest
credit rating obtainable either from S&P or from Moody's;

(c)   
investments in certificates of deposit, banker's acceptances and time
deposits maturing within 180 days from the date of acquisition thereof issued
or guaranteed by or placed with, and money market deposit accounts issued or
offered by, any domestic office of any commercial bank organized under the laws
of the United States of America or any State thereof that has a combined
capital and surplus and undivided profits of not less than $500,000,000 or, to
the extent not otherwise included, any Lender;

(d)   
fully collateralized repurchase agreements with a term of not more than
30 days for securities described in clause (a) of this definition and entered
into with a financial institution satisfying the criteria described in clause
(c) of this definition; 

(e)   
auction rate securities subject to a "dutch auction" process within 90
days or less, provided that such auction rate securities have a AAA
rating or the Moody's equivalent, in each case, at the time of acquisition;

(f)    
money market mutual funds, 90% of the investments of which are in cash
or investments contemplated by clauses (a), (b) and (c) of this definition;

-15-

(g)   
investments consisting of Equity Interests and other non-cash
consideration received as consideration for an Asset Sale permitted by Section
7.3;

(h)   
investments in any Equity Interests of customers received pursuant to
any plan of reorganization or similar arrangement upon the bankruptcy or
insolvency of such customer or in satisfaction or partial satisfaction in
settlement of delinquent or overdue accounts in the ordinary course of business
from financially troubled customers;

(i)     
subject to the provisions of Section 6.12, loans and advances to
employees of the Borrower and its Subsidiaries made in the ordinary course of
business in an aggregate principal amount not to exceed $2,000,000 in the
aggregate at any one time;

(j)     
investments consisting of prepaid expenses or deposits, prepayments and
other credits to suppliers made in the ordinary course of business; and

(k)   
investments in and to any Person which is not a Subsidiary, provided
that the aggregate amount of investments made in such non-Subsidiaries after
the Agreement Date shall not exceed $1,000,000 during the entire term of this
Credit Agreement.

"Perryville" means Perryville Energy
Holdings LLC, a Louisiana limited liability company and a wholly owned
subsidiary of Midstream.

"Perryville Entities" means
collectively, (i) Perryville, (ii) each subsidiary of Perryville, (iii)
Perryville Partners, (iv) each other corporation in which any of the foregoing
owns or controls at least 50% of the outstanding Equity Interests having
ordinary voting power to elect a majority of the board of directors or similar
managing body, irrespective of whether a class or classes shall or might have
voting power by reason of the happening of any contingency, and (v) each other
association, partnership, joint venture or other business entity, in which any
of the foregoing is entitled to share in at least 50% of the profits and
losses, however determined.

"Perryville Partners" means Perryville
Energy Partners LLC, a Delaware limited liability company and a wholly owned
subsidiary of Perryville.

"Person" means any natural person,
corporation, limited liability company, trust, joint venture, association,
company, partnership, Governmental Authority or other entity.

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

"Platform"
has the meaning assigned to such term in Section
6.2.

"Pricing Level" means Pricing Level I,
Pricing Level II, Pricing Level III, Pricing Level IV, Pricing Level V, Pricing
Level VI or Pricing Level VII, as the context may require.

"Pricing Level I" means  any time when
(i) no Event of Default has occurred and is continuing, (ii) the Senior Debt
Rating is A‐ or higher by S&P or A3 or higher by Moody's. 

-16-

"Pricing Level II" means any time when
(i) no Event of Default has occurred and is continuing, (ii) the Senior Debt
Rating is BBB+ or higher by S&P or Baa1 or higher by Moody's and (iii)
Pricing Level I does not apply.

"Pricing Level III" means any time when
(i) no Event of Default has occurred and is continuing, (ii) the Senior Debt
Rating is BBB or higher by S&P or Baa2 or higher by Moody's and (iii)
Pricing Levels I and II do not apply.

"Pricing Level IV" means any time when
(i) no Event of Default has occurred and is continuing, (ii) the Senior Debt
Rating is BBB‐ or higher by S&P or Baa3 or higher by Moody's and
(iii) Pricing Levels I, II and III do not apply.

"Pricing Level V" means any time when
(i) no Event of Default has occurred and is continuing, (ii) the Senior Debt
Rating is (x) BB+ or higher by S&P and Baa3 or higher by Moody's or (y) BBB‐ or higher by S&P and Ba1 or higher by Moody's and (iii) Pricing Levels
I, II, III and IV do not apply.

"Pricing Level VI" means any time when
(i) no Event of Default has occurred and is continuing, (ii) the Senior Debt
Rating is BB+ or higher by S&P or Ba1 or higher by Moody's and (iii)
Pricing Levels I, II, III, IV, and V do not apply.

"Pricing Level VII" means any time when
none of Pricing Levels I, II, III, IV, V, and VI is applicable.

"Prime Rate" means the rate of interest
per annum publicly announced from time to time by BNY as its prime commercial
lending rate at its principal office in New York City; each change in the Prime
Rate being effective from and including the date such change is publicly
announced as being effective. The Prime Rate is not intended to be lowest rate
of interest charged by BNY in connection with extensions of credit to
borrowers.

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

 "Public
Lender" has the meaning assigned to such term in Section 6.2.

"Register" has the meaning assigned to
such term in Section 10.4(c).

"Regulation D" means Regulation D of the
Board as from time to time in effect and all official rulings and
interpretations thereunder or thereof.

"Regulation T" means Regulation T of the
Board as from time to time in effect and all official rulings and
interpretations thereunder or thereof.

"Regulation U" means Regulation U of the
Board as from time to time in effect and all official rulings and
interpretations thereunder or thereof.

"Regulation X" means Regulation X of the
Board as from time to time in effect and all official rulings and
interpretations thereunder or thereof.

-17-

"Related Parties" means, with respect to
any specified Person, such Person's Affiliates and the respective directors,
officers, employees, agents and advisors of such Person and such Person's
Affiliates.

"Remedial
Action" means (a) "remedial action" as such term is defined in
CERCLA, 42 U.S.C. Section 9601(24), and (b) all other actions required by any
Governmental Authority or voluntarily undertaken to: (i) clean up, remove,
treat, abate or in any other way address any Hazardous Material in the
environment; (ii) prevent the Release or threat of Release, or minimize the
further Release of any Hazardous Material so it does not migrate or endanger or
threaten to endanger public health, welfare or the environment; or (iii)
perform studies and investigations in connection with, or as a precondition to,
(i) or (ii) above.

"Required Deposit Amount" means in the
event that as a result of the deposit of cash collateral with the
Administrative Agent pursuant to Section 2.8(i) the Borrower (i) is not required to grant a security interest in such cash collateral to any other
Person, an amount equal to the LC Exposure on the date on which cash collateral
is required to be deposited, or (ii) is required to grant a security interest
in such cash collateral to any other Person, an amount equal to the LC Exposure
on the date on which cash collateral is required to be deposited multiplied by
a fraction, the numerator of which is the sum of the LC Exposure plus
the principal amount of all other obligations to be secured by such cash
collateral and the denominator of which is the amount of such LC Exposure.

"Required Lenders" means, at any time,
Lenders having unused Commitments, LC Exposure and outstanding Loans
representing at least 51% of the sum of the unused Commitments, LC Exposure and
outstanding Loans of all Lenders.

 "Restricted Payment" means, as to any
Person, (i) any dividend or other distribution by such Person (whether in cash,
securities or other property) with respect to any Equity Interests of such
Person, (ii) any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, acquisition, cancellation or termination of any such
Equity Interest, and (iii) any payment of principal or interest or any
purchase, redemption, retirement, acquisition or defeasance with respect to any
Indebtedness of such Person which is subordinated to the payment of the
Obligations.

"Restricted Subsidiary" means each
Subsidiary of the Borrower other than an Unrestricted Subsidiary.

"S&P" means Standard & Poor's
Ratings Group, a division of The McGraw Hill Companies, or any successor
thereto.

"SEC" means the Securities and Exchange
Commission or any Governmental Authority succeeding to the functions thereof.

"Senior Debt Rating" means at any date,
the credit rating identified by S&P or Moody's as the credit rating which
(i) it has assigned to long term unsecured senior debt of the Borrower or (ii)
would assign to long term unsecured senior debt of the Borrower were the
Borrower to issue or have outstanding any long term unsecured senior debt on
such date.  If either (but not both) Moody's or S&P shall cease to be in
the business of rating corporate debt obligations, the Pricing Levels shall be
determined on the basis of the ratings provided by the other rating agency.

-18-

"Statutory Reserve Rate" means a
fraction (expressed as a decimal), the numerator of which is the number one and
the denominator of which is the number one minus the aggregate of the
maximum reserve percentages, if any, (including any marginal, special,
emergency or supplemental reserves) expressed as a decimal established by the
Board to which member banks of the United States Federal Reserve System in New
York City with deposits exceeding $250,000,000) are subject for eurocurrency
funding (currently referred to as "Eurocurrency liabilities" in
Regulation D). Such reserve percentages shall include those imposed pursuant to
Regulation D.  Eurodollar Loans shall be deemed to constitute eurocurrency
funding and to be subject to such reserve requirements without benefit of or
credit for proration, exemptions or offsets that may be available from time to
time to any Lender under Regulation D or any comparable regulation.  The
Statutory Reserve Rate shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

"subsidiary" means, as to any Person,
any corporation, association, partnership, limited liability company, joint
venture or other business entity of which such Person or any Subsidiary of such
Person, directly or indirectly, either (i) in respect of a corporation, owns or
controls more than 50% of the outstanding Equity Interests
having
ordinary voting power to elect a majority of the board of directors or similar
managing body, irrespective of whether a class or classes shall or might have
voting power by reason of the happening of any contingency, or (ii) in respect
of an association, partnership, joint venture or other business entity, is
entitled to share in more than 50% of the profits and losses, however
determined.  Unless the context otherwise requires, references to a Subsidiary
shall be deemed to be references to a Subsidiary of the Borrower.

"Syndication Agents" means,
collectively, Chase and WestLB, in their capacities as syndication agents for
the Lenders hereunder.

"Tax" means any present or future tax,
levy, impost, duty, charge, fee, deduction or withholding of any nature, and
whatever called, by a Governmental Authority, on whomsoever and wherever
imposed, levied, collected, withheld or assessed.

"Tax on the Overall Net Income" means,
as to any Person, a Tax imposed by the jurisdiction in which that Person's
principal office (and/or, in the case of a Lender, its lending office in the
United States of America designated in its Administrative Questionnaire or such
other office as such Lender may designate in writing to the Administrative
Agent and the Borrower) is located, or by any political subdivision or taxing
authority thereof, or in which that Person is deemed to be doing business, on
all or part of the net income, profits or gains of that Person (whether
worldwide, or only insofar as such income, profits or gains are considered to
arise in or to relate to a particular jurisdiction, or otherwise).

 "Tolling Agreement" means an agreement
pursuant to which the Borrower, a Subsidiary or an Unconsolidated Person sells
all or a significant portion of the electric generating capacity of a power
plant to a Tolling Agreement Counterparty, such Subsidiary or Unconsolidated
Person operates such power plant and such Tolling Agreement Counterparty
purchases the fuel necessary to operate such power plant.

"Tolling Agreement Counterparty" means
in respect of any Tolling Agreement, the Person or Persons (other than the
Borrower, a Subsidiary or an Unconsolidated Person) party to such Tolling
Agreement who, pursuant to such Tolling Agreement, purchases all or a
significant portion of the electric generating capacity of a power plant and is
obligated to purchase the fuel necessary to operate such power plant.

-19-

"Tolling Agreement Counterparty Default"
means with respect to a Tolling Agreement, (i) the failure by a Tolling Agreement Counterparty to make payments under such Tolling Agreement (regardless of
the cause of such failure (including the breach by the Borrower, any Subsidiary
or Unconsolidated Person of its obligations under such Tolling Agreement)) after
the expiration of any grace or cure period, (ii) the breach by the Tolling Agreement Counterparty of any other covenant or agreement under such Tolling
Agreement (after the expiration of any grace or cure period) which gives the
Borrower, such Subsidiary or such Unconsolidated Person the right to terminate
such Tolling Agreement or (iii) the voluntary or involuntary liquidation,
dissolution, insolvency, bankruptcy, receivership or reorganization of the
Tolling Agreement Counterparty.

"Total Capitalization" means at any
time, the difference between (i) the sum of each of the following at such time
with respect to the Borrower and the Subsidiaries, determined on a consolidated
basis in accordance with GAAP: (a) preferred Equity Interests (less deferred
compensation relating to unallocated convertible preferred Equity Interests
held by the Employee Stock Ownership Plan), plus (b) common Equity
Interests and any premium on capital stock thereon (as such term is used in the
Financial Statements), plus (c) retained earnings, plus (d) Total
Indebtedness, and (ii) treasury stock at such time of the Borrower and the
Subsidiaries, determined on a consolidated basis in accordance with GAAP.  For
purposes of the calculation of the ratio in Section 6.11(a), Total
Capitalization shall be calculated by including Unconsolidated Persons (other
than the Perryville Entities) that would otherwise be excluded in the
consolidated group.

"Total Indebtedness" means at any time,
all Indebtedness (net of unamortized premium and discount (as such term is used
in the Financial Statements)) at such time of the Borrower and the
Subsidiaries, determined on a consolidated basis in accordance with GAAP.  For
purposes of the calculation of the ratio in Section 6.11(a), Total
Indebtedness shall be calculated by including Unconsolidated Persons (other
than the Perryville Entities) that would otherwise be
excluded from the consolidated group.

"Transactions" means (i) the execution, delivery and performance by the Borrower of each Loan Document to
which it is a party, (ii) the borrowing of the Loans and the issuance of the
Letters of Credit, and (iii) the use of the proceeds of the Loans and the
Letters of Credit.

"Type", when used in reference to any
Loan or Borrowing, refers to whether the rate of interest on such Loan, or on
the Loans comprising such Borrowing, is determined by reference to (i) the Adjusted LIBO Rate or (ii) the Alternate Base Rate.

"Unconsolidated Person" means any
Subsidiary, joint venture or other Person that operates a power plant or
similar project in which the Borrower or any Subsidiary invests or has invested
and which, pursuant to GAAP as in effect on such date, would not be
consolidated with the Borrower for financial reporting purposes immediately
after giving effect to such investment.

"Unrestricted Subsidiaries" means
collectively, (i) Midstream, (ii) Cleco Support, (iii) CLE Resources, (iv) Innovations, (v) notwithstanding the fact that Acadia Holdings' equity interest in
Acadia Power is not in excess of 50%, Acadia Power, (vi) each of their respective subsidiaries and (vii) any future established or acquired Subsidiary (other
than the Utility and the Utility Subsidiaries.

"Unrestricted Subsidiary Group" means
each of the Unrestricted Subsidiaries other than Evangeline and the Perryville
Entities.

-20-

"Utility" means Cleco Power LLC, a
Louisiana limited liability company, successor by merger to Cleco Utility Group
Inc., a Louisiana corporation.

"Utility Credit Agreement" means the
Credit Agreement, dated as of April 25, 2005, by and among the Utility, the
lenders party thereto, Chase and WestLB., as syndication agents, KeyBank
National Association and Union Bank of California, N.A., as documentation
agents thereunder, and BNY, as administrative agent thereunder.

"Utility Financial Statements" has the
meaning assigned to such term in Section 4.4(a).

"Utility Indenture" means the Indenture,
dated as of October 1, 1988, between the Borrower and The Bank of New York, as
trustee.

"Utility Mortgage" means the Indenture
of Mortgage, dated as of July 1, 1950, made by the Utility to Bank One Trust
Company, NA, as Trustee.

"Utility Subsidiaries" means
collectively, the subsidiaries of the Utility, each, a "Utility Subsidiary".

"Voting Security" means a security which
ordinarily has voting power for the election of the board of directors (or
other governing body), whether at all times or only so long as no senior class
of Equity Interests has such voting power by reason of any contingency.

"WestLB" means WestLB AG, New York
Branch.

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

Section 1.2               
Classification of Loans and BorrowingsFor purposes of this Credit Agreement, (i) Loans may be classified and referred to by Type (e.g., a "Eurodollar Loan")
and (ii)  Borrowings may also be classified and referred to by Type (e.g.,
a "Eurodollar Borrowing").

Section 1.3               
Terms GenerallyThe definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words "include", "includes" and "including"
shall be deemed to be followed by the phrase "without limitation". The word
"will" shall be construed to have the same meaning and effect as the word
"shall". Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document herein shall be construed as
referring to such agreement, instrument or other document as from time to time
amended, supplemented or otherwise modified, (ii) any definition of or reference to any law shall be construed as referring to such law as from time to
time amended and any successor thereto and the rules and regulations
promulgated from time to time thereunder, (iii) any reference herein to any Person shall be construed to include such Person's successors and assigns, (iv) the words "herein", "hereof" and "hereunder", and words of similar import, shall be
construed to refer to this Credit Agreement in its 

-21-

entirety and not to any
particular provision hereof, (v) all references herein to Articles, Sections,
Exhibits and Schedules shall be construed to refer to Articles and Sections of,
and Exhibits and Schedules to, this Credit Agreement, and (vi) the words "asset" and "property" shall be construed to have the same meaning and
effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights.

Section 1.4               
Accounting Terms; GAAPExcept as otherwise expressly provided herein,
as used in the Loan Documents and in any certificate, opinion or other document
made or delivered pursuant thereto, accounting terms not defined in Section
1.1, and accounting terms partly defined in Section 1.1, to the
extent not defined, shall have the respective meanings given to them under
GAAP.  If at any time any change in GAAP would affect the computation of any
financial requirement set forth in this Credit Agreement, the Administrative
Agent, the Lenders and the Borrower shall negotiate in good faith to amend such
requirement to reflect such change in GAAP (subject to the approval of the
Required Lenders), provided that, until so amended, (i) such requirement shall continue to be computed in accordance with GAAP prior to such
change therein and (ii) the Borrower shall provide to the Credit Parties
financial statements and other documents required under this Credit Agreement
or as reasonably requested hereunder setting forth a reconciliation between
calculations of such requirement made before and after giving effect to such
change in GAAP.  Except as otherwise expressly provided herein, the computation
of financial ratios and requirements set forth in this Credit Agreement shall
be consistent with the Borrower's financial statements required to be delivered
hereunder.

Section 1.5               
RoundingAny financial ratios required to be maintained
by the Borrower pursuant to this Agreement shall be calculated by dividing the
appropriate component by the other component, carrying the result to one place
more than the number of places by which such ratio is expressed herein and
rounding the result up or down to the nearest number (with a rounding‐up
if there is no nearest number).

Article
2.

THE
CREDITS

Section 2.1               
CommitmentsSubject to the terms and conditions hereof,
each Lender agrees to make Loans to the Borrower in dollars from time to time
during the Availability Period in an aggregate principal amount that will not
result in such Lender's Credit Exposure exceeding such Lender's Commitment.
Within the foregoing limits and subject to the terms and conditions set forth
herein, the Borrower may borrow, prepay and reborrow Loans. 

Section 2.2               
Loans and Borrowings(a)               
Each Loan shall be made as part of a Borrowing consisting of Loans made
by the Lenders ratably in accordance with their respective Commitments.  The
failure of any Lender to make any Loan required to be made by it shall not
relieve any other Lender of its obligations 

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hereunder, provided that the
Commitments of the Lenders are several, and no Lender shall be responsible for
any other Lender's failure to make Loans as required.(b)               
Subject to Section 3.4, each Borrowing shall be comprised
entirely of ABR Loans or Eurodollar Loans, as applicable, in each case as the
Borrower may request in accordance herewith. Each Lender at its option may make
any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of
such Lender to make such Loan, provided that any exercise of such option
shall not affect the obligation of the Borrower to repay such Loan in
accordance with the terms of this Credit Agreement.  

(c)               
At the commencement of each Interest Period for any Eurodollar
Borrowing, such Borrowing shall be in an aggregate amount that is an integral
multiple of 1,000,000 and not less than $5,000,000. At the time that each ABR
Borrowing is made, such Borrowing shall be in an aggregate amount that is an
integral multiple of $1,000,000 and not less than $5,000,000, provided
that an ABR Borrowing may be in an aggregate amount that is equal to the entire
unused balance of the total Commitments or in an aggregate amount that is
required to finance or the reimbursement of an LC Disbursement as contemplated
by Section 2.8(e).  Borrowings of more than one Type may be outstanding
at the same time, provided that there shall not at any time be more than
a total of five Eurodollar Borrowings outstanding.(d)               
Notwithstanding any other provision of this Credit Agreement, the
Borrower shall not be entitled to request, or to elect to convert or continue,
any Borrowing if the Interest Period requested with respect thereto would end
after the Maturity Date.

Section 2.3               
Requests for Borrowings(a)               
To request a Borrowing, the Borrower shall deliver a Credit Request to
the Administrative Agent by hand or facsimile (or transmit by electronic
communication, if arrangements for doing so have been approved by the
Administrative Agent) or notify the Administrative Agent by telephone, in each
case to be promptly confirmed by the delivery to the Administrative Agent of a
signed Credit Request (i) in the case of a Eurodollar Borrowing, not later than
11:30 a.m., New York City time, three Business Days before the date of the
proposed Borrowing or (ii) in the case of an ABR Borrowing, not later than
11:30 a.m., New York City time, on the date of the proposed Borrowing. Each
such Credit Request (including each such telephonic request) shall be
irrevocable and shall specify the following information in compliance with Section
2.2:

(i)                 
the aggregate amount of the requested Borrowing;(ii)               
the date of such Borrowing, which shall be a Business Day;

(iii)              
whether such Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing;(iv)             
in the case of a Eurodollar Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the definition of
the term "Interest Period"; and

(v)               
the location and number of the Borrower's account to which funds are to
be disbursed, which shall comply with the requirements of Section 2.4.-23-

(b)               
If no election as to the Type of Borrowing is specified, then the
requested Borrowing shall be an ABR Borrowing.  If no Interest Period is
specified with respect to any requested Eurodollar Borrowing, then the Borrower
shall be deemed to have selected an Interest Period of one month's duration.
Promptly following receipt of a Credit Request in accordance with this Section,
the Administrative Agent shall advise each Lender of the details thereof and of
the amount of such Lender's Loan to be made as part of the requested Borrowing.
Section 2.4               
Funding of Borrowings

(a)               
Each Lender shall make each Loan to be made by it hereunder on the
proposed date thereof by wire transfer of immediately available funds by 2:00
p.m., New York City time, to the account of the Administrative Agent most
recently designated by it for such purpose by notice to the Lenders. Subject to
Section 5.2, the Administrative Agent will make such Loans available to
the Borrower by promptly crediting or otherwise transferring the amounts so
received, in like funds, to an account of the Borrower maintained with the
Administrative Agent and designated by the Borrower in the applicable Credit
Request, provided that ABR Loans made to finance the reimbursement
of an LC Disbursement as provided in Section 2.8(e) shall be
remitted by the Administrative Agent to the Issuing Bank.
(b)               
Unless the Administrative Agent shall have received notice from a Lender
prior to the proposed date of any Borrowing that such Lender will not make
available to the Administrative Agent such Lender's share of such Borrowing,
the Administrative Agent may assume that such Lender has made such share
available on such date in accordance with Section 2.4(a) or Section 2.8(e)
and may, in reliance upon such assumption, make available to the Borrower or
the Issuing Bank, as applicable, a corresponding amount. In such event, if a
Lender has not in fact made its share of the applicable Borrowing available to
the Administrative Agent, then the applicable Lender and the Borrower severally
agree to pay to the Administrative Agent forthwith on demand such corresponding
amount with interest thereon, for each day from and including the date such
amount is made available to the Borrower or the Issuing Bank, as applicable, to
but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds Effective Rate and a
rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation or (ii) in the case of the Borrower, the
interest rate that would be otherwise applicable to such Borrowing. Such
payment by the Borrower, however, shall be without prejudice to its rights
against such Lender.  If such Lender pays such amount to the Administrative
Agent, then such amount shall constitute such Lender's Loan included in such Borrowing.

Section 2.5               
Termination, Reduction and Increase of Commitments(a)               
Unless previously terminated, the Commitments shall terminate on the
Maturity Date.

(b)               
The Borrower may at any time terminate, or from time to time reduce, the
Commitments, provided that (i) the Borrower shall not terminate or reduce the Commitments if, after giving effect to any concurrent prepayment or
repayment of the Loans in accordance with Section 2.7, the sum of the Credit
Exposures would exceed the total Commitments, (ii) each such reduction of the Commitments shall be in an amount that is an integral multiple of $1,000,000
and not less than $5,000,000 and (iii) any reduction of the Commitments to an
amount below the LC Commitment shall be automatically reduce the LC Commitment
on a dollar for dollar basis.-24-

(c)               
The Borrower shall notify the Administrative Agent of any election to
terminate or reduce the Commitments under paragraph (b) of this Section at
least three Business Days prior to the effective date of such termination or
reduction, specifying such election and the effective date thereof. Promptly
following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by the Borrower pursuant
to this Section shall be irrevocable, provided that a notice of
termination of the Commitments delivered by the Borrower may state that such
notice is conditioned upon the effectiveness of other credit facilities, in
which case such notice may be revoked by the Borrower (by notice to the
Administrative Agent on or prior to the specified effective date) if such
condition is not satisfied. Each reduction, and any termination, of the
Commitments shall be permanent and each reduction of the Commitments shall be
made ratably among the Lenders in accordance with their respective Commitments.

(d)               
The Borrower may at any time and from time to time prior to the Maturity
Date, at its sole cost, expense and effort, request any one or more of the
Lenders to increase its Commitment (the decision to increase the Commitment of
a Lender to be within the sole and absolute discretion of such Lender), or any
other Person reasonably satisfactory to the Administrative Agent and the
Issuing Bank to provide a new Commitment, by submitting to the Administrative
Agent and the Issuing Bank an Increase Supplement duly executed by the
Borrower and each such Lender or other Person, as the case may be. If such Increase
Supplement is in all respects reasonably satisfactory to the Administrative
Agent and the Issuing Bank, the Administrative Agent shall execute such Increase
Supplement and the Administrative Agent shall deliver a copy thereof to the
Borrower and each such Lender or other Person, as the case may be. Upon
execution and delivery of such Increase Supplement by the Administrative Agent
and the Issuing Bank, (x) in the case of each such Lender (an "Increasing
Lender"), its Commitment shall be increased to the amount set forth in such
Increase Supplement, (y) in the case of each such other Person, such other
Person shall become a party hereto and have the rights and obligations of a
Lender under the Loan Documents and its Commitment shall be as set forth in
such Increase Supplement; provided that:

(i)                 
immediately after giving effect thereto, the sum of all increases in the
aggregate Commitments made pursuant to this Section 2.5(d) shall not
exceed $25,000,000;(ii)               
each such increase of the aggregate Commitments shall be in an amount
not less than $10,000,000 or such amount plus an integral multiple of $1,000,000;

(iii)              
if Loans would be outstanding immediately after giving effect to any
such increase, then simultaneously with such increase (1) each such increasing
Lender, each such other Person and each other Lender shall be deemed to have
entered into a master assignment and acceptance agreement, in form and
substance substantially similar to Exhibit A, pursuant to which each
such other Lender shall have assigned to each such increasing Lender and each
such other Person a portion of its Loans necessary to reflect proportionately
the Commitments as adjusted in accordance with this subsection (f), and (2) in
connection with such assignment, each such increasing Lender and each such
other Person shall pay to the Administrative Agent, for the account of each
such other Lender, such amount as shall be necessary to reflect the assignment
to it of Loans, and in connection with such master assignment each such other
Lender may treat the assignment of Eurodollar Borrowings as a prepayment of
such Eurodollar Borrowings for purposes of Section 3.6;
(iv)             
each such other Person shall have delivered to the Administrative Agent
and the Borrower all forms, if any, that are required to be delivered by such
other Person pursuant to Section 3.7; and

-25-

(v)               
the Borrower shall have delivered to the Administrative Agent with
sufficient copies for each Lender a certificate of a Financial Officer
demonstrating pro forma compliance with the terms of this Credit Agreement
through the Maturity Date and the Administrative Agent shall have received such
certificates and other items as it shall reasonably request in connection with
such increase.Section 2.6               
Repayment of Loans; Evidence of Debt

(a)               
The Borrower hereby unconditionally promises to pay to the
Administrative Agent for the account of each Lender the then unpaid principal
amount of each Loan on the Maturity Date.(b)               
Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing the debt of the Borrower to such Lender
resulting from each Loan made by such Lender, including the amounts of
principal and interest payable and paid to such Lender from time to time
hereunder.

(c)               
The Administrative Agent shall maintain accounts in which it shall
record (i) the amount of each Loan made hereunder, the Type thereof and the
Interest Period, if any, applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to
each Lender hereunder and (iii) the amount of any sum received by the
Administrative Agent hereunder for the account of the Lenders and each Lender's
share thereof.(d)               
The entries made in the accounts maintained pursuant to paragraphs (b)
or (c) of this Section shall, to the extent not inconsistent with any entries
made in the Notes, be prima facie evidence of the existence and amounts of the
obligations recorded therein, provided that the failure of any Lender or
the Administrative Agent to maintain such accounts or any error therein shall
not in any manner affect the obligation of the Borrower to repay the Loans in
accordance with the terms of this Credit Agreement.

(e)               
The Loans made by each Lender shall be evidenced by a Note payable to the
order of such Lender, substantially in the form of Exhibit D.
Section 2.7               
Prepayment of Loans

(a)               
Voluntary Prepayments. The Borrower shall have the right at any
time and from time to time to prepay any Borrowing in whole or in part, subject
to the requirements of this Section. 
(b)               
Prepayments Resulting from the Reduction of the Total Commitments. 
In the event of any partial reduction or termination of the Commitments, then (i) at or prior to the date of such reduction or termination, the Administrative Agent
shall notify the Borrower and the Lenders of the sum of the Credit Exposures
after giving effect thereto and (ii) if such sum would exceed the total
Commitments after giving effect to such reduction or termination, then the
Borrower shall, on the date of such reduction or termination, prepay Borrowings
in an amount sufficient to eliminate such excess.

(c)               
Notice of Prepayment; Application of Prepayments. The Borrower
shall notify the Administrative Agent by telephone (confirmed by facsimile) of
any prepayment hereunder, (i) in the case of a prepayment of a Eurodollar
Borrowing, not later than 11:30 a.m., New York City time, three Business Days
before the date of prepayment or (ii) in the case of prepayment of an ABR 
-26-

Borrowing, not later than 11:30 a.m., New York City time, on the date of the
prepayment.  Each such notice shall be irrevocable and shall specify the
prepayment date and the principal amount of each Borrowing or portion thereof to
be prepaid, provided that, if a notice of prepayment is given in
connection with a conditional notice of termination of the Commitments as
contemplated by Section 2.5, then such notice of prepayment may be
revoked if such notice of termination is revoked in accordance with Section
2.5. Promptly following receipt of any such notice relating to a Borrowing,
the Administrative Agent shall advise the Lenders of the contents thereof. Each
partial prepayment of any Borrowing under Section 2.7(a) shall, when added
to the amount of each concurrent reduction of the Commitments and prepayment of
Borrowings under such Sections, be in an integral multiple of $1,000,000 and
not less than $5,000,000 (or, if the outstanding principal balance of the
Revolving Loans is less that such minimum amount, then such lesser outstanding
principal balance, as the case may be).  Each prepayment of a Borrowing shall
be applied ratably to the Loans included in the prepaid Borrowing.  Prepayments
shall be accompanied by accrued interest to the extent required by Section
3.1.Section 2.8               
Letters of Credit

(a)               
General. Subject to the terms and conditions set forth herein,
the Borrower may request the issuance of Letters of Credit denominated in
dollars for its own account, in a form acceptable to the Administrative Agent
and the Issuing Bank, at any time and from time to time during the period from
the Closing Date to the tenth Business Day preceding the last day of the
Availability Period.  In the event of any inconsistency between the terms and
conditions of this Credit Agreement and the terms and conditions of any form of
letter of credit application or other agreement submitted by the Borrower to,
or entered into by the Borrower with, the Issuing Bank relating to any Letter
of Credit, the terms and conditions of this Credit Agreement shall control.
(b)               
Notice of Issuance; Amendment; Renewal; Extension; Certain Conditions.
To request the issuance of a New Letter of Credit (or the amendment, renewal or
extension of an outstanding Letter of Credit), the Borrower shall hand deliver
or facsimile (or transmit by electronic communication, if arrangements for
doing so have been approved by the Issuing Bank) to the Issuing Bank and the
Administrative Agent (not later than three Business Days before the requested
date of issuance, amendment, renewal or extension) a Credit Request
requesting the issuance of a New Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, and specifying the date of issuance,
amendment, renewal or extension (which shall be a Business Day), the date on
which such Letter of Credit is to expire (which shall comply with paragraph (c)
of this Section), the amount of such Letter of Credit, the name and address of
the beneficiary thereof and such other information as shall be necessary to
prepare, amend, renew or extend such Letter of Credit, provided that no
such notice shall be required in connection with the extension of an Evergreen
Letter of Credit.  If requested by the Issuing Bank, the Borrower also shall
submit a letter of credit application on the Issuing Bank's standard form in
connection with any request for a Letter of Credit.  A Letter of Credit shall
be issued, amended, renewed or extended only if (and, upon issuance, amendment,
renewal or extension of each Letter of Credit, the Borrower shall be deemed to
represent and warrant that), after giving effect to such issuance, amendment,
renewal or extension, (i) the LC Exposure shall not exceed the Letter of Credit
Commitment and (ii) the total Credit Exposures shall not exceed the total
Commitments.

(c)               
Expiration Date. Each Letter of Credit shall expire at or prior
to the close of business on the earlier of (i) the date that is one year after
the date of the issuance of such Letter of Credit (or, in the case of any
renewal or extension thereof, one year after such renewal or extension), and
(ii) the date that is ten Business Days prior to the Maturity Date, provided
that any Letter of Credit may provide for the automatic renewal thereof for any
period (unless the Issuing Bank elects not to 
-28-

extend) so long as such period
ends (x) ten Business Days prior to the Maturity Date or (y) if the Borrower shall have deposited cash collateral with the Administrative Agent as required by
Section
2.8(i), ten Business Days prior to the date that is one year after the date
of the issuance of such Letter of Credit (or, in the case of any renewal or
extension thereof, one year after such renewal or extension).
(d)               
Participations. By the issuance of a New Letter of Credit or, in
the case of an Existing Letter of Credit, the execution and delivery of this Credit
Agreement (or an amendment to a Letter of Credit increasing the amount thereof)
and without any further action on the part of the Issuing Bank or the Lenders,
the Issuing Bank hereby grants to each Lender and each Lender hereby acquires
from the Issuing Bank, a participation in such Letter of Credit equal to such
Lender's Applicable Percentage of the aggregate amount available to be drawn
under such Letter of Credit. In consideration and in furtherance of the
foregoing, each such Lender hereby absolutely and unconditionally agrees to pay
to the Administrative Agent, for the account of the Issuing Bank, such Lender's
Applicable Percentage of each LC Disbursement made by the Issuing Bank and not
reimbursed by the Borrower on the date due as provided in paragraph (e) of this
Section, or of any reimbursement payment required to be refunded to the Borrower
for any reason.  Each such Lender acknowledges and agrees that its obligation
to acquire participations pursuant to this paragraph in respect of Letters of
Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of any
Letter of Credit or the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever; provided
that no Lender shall be obligated to make any payment to the Administrative
Agent for any wrongful LC Disbursement made by the Issuing Bank as a result of
acts or omissions constituting willful misconduct or gross negligence on the
part of the Issuing Bank.

(e)               
Reimbursement If the Issuing
Bank shall make any LC Disbursement in respect of a Letter of Credit, then the
Issuing Bank shall either (i) notify the Borrower to reimburse the Issuing Bank
therefor, in which case the Borrower shall reimburse such LC Disbursement by
paying to the Administrative Agent an amount equal to such LC Disbursement and
any accrued interest thereon not later than 2:00 p.m. on the date that such LC
Disbursement is made, if the Borrower shall have received notice of such LC
Disbursement prior to 11:00 a.m. on such date, or if such notice has not been
received by the Borrower prior to such time on such date, then not later than
2:00 p.m. on the Business Day immediately following the day that the Borrower
receives such notice, provided that, if the LC Disbursement is equal to
or greater than $1,000,000, the Borrower may, subject to the conditions of
borrowing set forth herein, request in accordance with Section 2.3 or this
Section 2.8 that such payment be financed with an ABR Borrowing in an
equivalent amount and, to the extent so financed, the Borrower's obligation to
make such payment shall be discharged and replaced by the resulting ABR
Borrowing, and/or (ii) notify the Administrative Agent that the Issuing Bank is
requesting that the Lenders make an ABR Borrowing in an amount equal to such LC
Disbursement and any accrued interest thereon, in which case (A) the
Administrative Agent shall notify each Lender of the details thereof and of the
amount of such Lender's Loan to be made as part of such ABR Borrowing, and (B)
each Lender shall, whether or not any Default shall have occurred and be
continuing, any representation or warranty shall be accurate, any condition to
the making of any Loan hereunder shall have been fulfilled, or any other matter
whatsoever, make the Loan to be made by it under this paragraph by wire
transfer of immediately available funds to the account of the Administrative
Agent most recently designated by it for such purpose by notice to the Lenders
on (1) the Business Day that such Lender receives such notice, if such notice
is received prior to 12:00 noon, New York City time, on the day of receipt or
(2) the Business Day immediately following the day that such Lender receives
such notice, if such notice is not received prior to such time on the day of
receipt.  
-29-

Such Loans shall, for all purposes hereof, be deemed to be an ABR
Borrowing referred to in Section 2.2(a) and made pursuant to Section
2.3, and the Lenders obligations to make such Loans shall be absolute and
unconditional. The Administrative Agent will make such Loans available to the
Issuing Bank by promptly crediting or otherwise transferring the amounts so
received, in like funds, to the Issuing Bank for the purpose of repaying in
full the LC Disbursement and all accrued interest thereon.
(f)                
Obligations Absolute. The Borrower's obligations to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Credit Agreement under any and all circumstances
whatsoever and irrespective of (i) any lack of validity or enforceability of
any Letter of Credit or any Loan Document, or any term or provision therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged,
fraudulent, insufficient or invalid in any respect or any statement therein
being untrue or inaccurate in any respect, (iii) payment by the Issuing Bank under a Letter of Credit against presentation of a draft or other document
that does not comply with the terms of such Letter of Credit, (iv) any amendment or waiver of or any consent to departure from all or any of the
provisions of any Letter of Credit or any Loan Document, (v) the existence of any claim, set‐off, defense or other right that the Borrower, any other
party guaranteeing, or otherwise obligated with, such Borrower, any Subsidiary
or other Affiliate thereof or any other Person may at any time have against the
beneficiary under any Letter of Credit, any Credit Party or any other Person,
whether in connection with this Credit Agreement, any other Loan Document or
any other related or unrelated agreement or transaction, or (vi) any other act or omission to act or delay of any kind of any Credit Party or any other Person or
any other event or circumstance whatsoever, whether or not similar to any of
the foregoing, that might, but for the provisions of this Section, constitute a
legal or equitable discharge of, or provide a right of set‐off against,
the Borrower's obligations hereunder.  Neither any Credit Party nor any of
their respective Related Parties shall have any liability or responsibility by
reason of or in connection with the issuance or transfer of any Letter of
Credit or any payment or failure to make any payment thereunder (irrespective
of any of the circumstances referred to in the preceding sentence), or any
error, omission, interruption, loss or delay in transmission or delivery of any
draft, notice or other communication under or relating to any Letter of Credit
(including any document required to make a drawing thereunder), any error in
interpretation of technical terms or any consequence arising from causes beyond
the control of the Issuing Bank; provided that the foregoing shall not
be construed to excuse the Issuing Bank from liability to the Borrower to the
extent of any direct damages (as opposed to consequential damages, claims in respect
of which are hereby waived by the Borrower to the extent permitted by
applicable law) suffered by the Borrower that are caused by the Issuing Bank's
failure to exercise care when determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof. The parties
hereto expressly agree that, in the absence of gross negligence or willful
misconduct on the part of the Issuing Bank (as finally determined by a court of
competent jurisdiction), the Issuing Bank shall be deemed to have exercised
care in each such determination. In furtherance of the foregoing and without
limiting the generality thereof, the parties agree that, with respect to
documents presented which appear on their face to be in substantial compliance
with the terms of a Letter of Credit, the Issuing Bank may, in its sole
discretion, either accept and make payment upon such documents without
responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such
documents if such documents are not in strict compliance with the terms of such
Letter of Credit.

(g)               
Disbursement Procedures. The Issuing Bank shall, promptly
following its receipt thereof, examine all documents purporting to represent a
demand for payment under a Letter of Credit. The Issuing Bank shall promptly
notify (which may include telephonic notice, promptly confirmed by facsimile)
the Administrative Agent and the Borrower of such demand for payment and

-29-

whether the Issuing Bank has made or will make an LC Disbursement thereunder;
provided
that any failure to give or delay in giving such notice shall not relieve the
Borrower of its obligation to reimburse the Issuing Bank and the Lenders with
respect to any such LC Disbursement.(h)               
Interim Interest. If the Issuing Bank shall make any LC
Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in
full on the date such LC Disbursement is made, the unpaid amount thereof shall
bear interest, for each day from and including the date such LC Disbursement is
made to but excluding the date that the Borrower reimburses such LC
Disbursement, at the rate per annum then applicable to ABR Loans; provided
that, if the Borrower fails to reimburse such LC Disbursement when due pursuant
to paragraph (e) of this Section, then Section 3.1(b) shall apply.
Interest accrued pursuant to this paragraph shall be for the account of the
Issuing Bank, except that interest accrued on and after the date of payment by
any Lender pursuant to paragraph (e) of this Section to reimburse the Issuing
Bank shall be for the account of such Lender to the extent of such payment.

(i)                 
Cash Collateral. In the event that (i) an Event of Default shall occur and be continuing or (ii) any Letters of Credit are outstanding on or
after the tenth Business Day prior to the Maturity Date (or any LC
Disbursements remain unreimbursed on or after such date), the Borrower shall
deposit with the Administrative Agent in immediately available funds on the
Business Day on which it receives notice from the Administrative Agent or
Required Lenders demanding the deposit of cash collateral in the case of clause
(i), or on or before the tenth Business Day prior to the Maturity Date in the
case of clause (ii), an amount equal to the Required Deposit Amount, which
amount shall be held by the Administrative Agent as cash collateral pursuant to
a cash collateral agreement in form and substance satisfactory to the
Administrative Agent and the Issuing Bank to secure the Borrower's
reimbursement obligations with respect to LC Disbursements; provided
that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without
demand or other notice of any kind, upon the occurrence of any Event of Default
described in clause (h) or (i) of Article 8.  Such deposit shall be held
by the Administrative Agent as collateral for the payment and performance of
the obligations of the Borrower under this Credit Agreement. The Administrative
Agent shall have exclusive dominion and control, including the exclusive right
of withdrawal, over such account. Such deposit shall not bear interest, nor
shall the Administrative Agent be under any obligation whatsoever to invest the
same, provided that, at the request of the Borrower, such deposit shall
be invested by the Administrative Agent in direct short term obligations of, or
short term obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America, in each case
maturing no later than the expiry date of the Letter of Credit giving rise to
the relevant LC Exposure.  Interest or profits, if any, on such investments
shall accumulate in such account.  Moneys in such account shall be applied by
the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for
which it has not been reimbursed and, to the extent not so applied, shall be held
for the satisfaction of the reimbursement obligations of the Borrower for the
LC Exposure at such time or, if the maturity of the Loans has been accelerated
(but subject to the consent of Required Lenders), be applied to satisfy other
obligations of the Borrower under this Credit Agreement. If the Borrower is
required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not applied as
aforesaid) shall be returned to the Borrower within three Business Days after
all Events of Default have been cured or waived.  If the Borrower is required
to provide cash collateral hereunder as a result of clause (ii) of the first
sentence of this subsection, the amount thereof (to the extent not applied as
aforesaid) shall be returned to the Borrower when the LC Exposure is zero and
all Letters of Credit shall have been returned to the Issuing Bank and shall
have been cancelled.-30-

Section 2.9               
Payments Generally; Pro Rata Treatment; Sharing of Set‐offs(a)               
The Borrower shall make each payment required to be made by it hereunder
or under any other Loan Document (whether of principal of Loans, LC
Disbursements, interest or fees, or of amounts payable under Sections 3.5,
3.6, 3.7 or 10.3, or otherwise) prior to 1:00 p.m., New
York City time, on the date when due, in immediately available funds, without
set‐off or counterclaim. Any amounts received after such time on any date
may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating
interest thereon. All such payments shall be made to the Administrative Agent
at its office at One Wall Street, New York, New York, or such other office as
to which the Administrative Agent may notify the other parties hereto, except
payments to be made to the Issuing Bank as expressly provided herein and except
that payments pursuant to Sections 3.5, 3.6, 3.7 and 10.3
shall be made directly to the Persons entitled thereto. The Administrative
Agent shall distribute any such payments received by it for the account of any
other Person to the appropriate recipient promptly following receipt thereof.
If any payment hereunder shall be due on a day that is not a Business Day, the
date for payment shall be extended to the next succeeding Business Day, and, in
the case of any payment accruing interest, interest thereon shall be payable
for the period of such extension. All payments hereunder shall be made in
dollars. 

(b)               
Each Borrowing, each payment or prepayment of principal of any
Borrowing, each payment of interest on the Loans, each payment of fees, each
reduction of the Commitments and each conversion of any Borrowing to or
continuation of any Borrowing as a Borrowing of any Type shall be allocated pro
rata among the Lenders in accordance with their respective applicable
Commitments (or, if such Commitments shall have expired or been terminated, in
accordance with the respective principal amounts of their outstanding Loans).  Each
Lender agrees that in computing such Lender's portion of any Borrowing to be
made hereunder, the Administrative Agent may, in its discretion, round each
Lender's percentage of such Borrowing to the next higher or lower whole dollar
amount.  If at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal of Loans,
unreimbursed LC Disbursements, interest, fees and commissions then due
hereunder, such funds shall be applied (i) first, towards payment of interest, fees and commissions then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of interest, fees and
commissions then due to such parties and (ii) second, towards payment of principal of Loans and unreimbursed LC Disbursements then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
principal of Loans and unreimbursed LC Disbursements then due to such parties.
(c)               
If any Lender shall, by exercising any right of set‐off or
counterclaim or otherwise, obtain payment in respect of any principal of, or
interest on, any of its Loans or participations in LC Disbursements resulting
in such Lender receiving payment of a greater proportion of the aggregate
amount of its Loans and participations in LC Disbursements and accrued interest
thereon than the proportion received by any other Lender, then the Lender
receiving such greater proportion shall purchase (for cash at face value) participations
in the Loans and participations in LC Disbursements of other Lenders to the
extent necessary so that the benefit of all such payments shall be shared by
the Lenders ratably in accordance with the aggregate amount of principal of,
and accrued interest on, their respective Loans and participations in LC
Disbursements, provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price
restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made
by the Borrower pursuant to and in accordance with the express terms of this
Credit Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale 

-31-

of a participation in any of its Loans or participations
in LC Disbursements to any assignee or participant, other than to the Borrower
or any Subsidiary or Affiliate thereof (as to which the provisions of this
paragraph shall apply). The Borrower consents to the foregoing and agrees, to
the extent it may effectively do so under applicable law, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise
against the Borrower rights of set‐off and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of the
Borrower in the amount of such participation.(d)               
Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to the Administrative
Agent for the account of the applicable Credit Parties hereunder that the
Borrower will not make such payment, the Administrative Agent may assume that
the Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to such Credit Parties the amount
due. In such event, if the Borrower has not in fact made such payment, then
each such Credit Party severally agrees to repay to the Administrative Agent
forthwith on demand the amount so distributed to such Credit Party with
interest thereon, for each day from and including the date such amount is
distributed to it to but excluding the date of payment to the Administrative
Agent, at the greater of the Federal Funds Effective Rate and a rate determined
by the Administrative Agent in accordance with banking industry rules on interbank
compensation.

(e)               
If any Credit Party shall fail to make any payment required to be made
by it pursuant to Section 2.4(b) or 2.8(d), then the
Administrative Agent may, in its discretion (notwithstanding any contrary
provision hereof), apply any amounts thereafter received by the Administrative
Agent for the account of such Credit Party to satisfy such Credit Party's
obligations under such Sections until all such unsatisfied obligations are
fully paid.Article
3.

INTEREST,
FEES, YIELD PROTECTION, ETC.

Section 3.1               
Interest

(a)               
The Loans comprising each ABR Borrowing shall bear interest at the
Alternate Base Rate. The Loans comprising each Eurodollar Borrowing shall bear
interest at the Adjusted LIBO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Margin. 

(b)               
Notwithstanding the foregoing, if any principal of or interest on any
Loan, any reimbursement obligation in respect of any LC Disbursement or any fee
or other amount payable by the Borrower hereunder is not paid when due, whether
at stated maturity, upon acceleration or otherwise, such overdue amount shall
bear interest, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2%
plus the rate otherwise
applicable to such Loan as provided in the preceding paragraph of this Section
or (ii) in the case of any other amount, 2% plus the rate applicable to
ABR Borrowings as provided in the preceding paragraph of this Section. 

(c)               
Accrued interest on each Loan shall be payable in arrears on each
Interest Payment Date for such Loan, provided that (i) interest accrued pursuant to paragraph (b) of this Section shall be payable on demand,
(ii) in the event of any repayment or prepayment of any Loan, accrued interest
on the principal amount repaid or prepaid shall be payable on the date of such

-32-

repayment or prepayment, and (iii) in the event of any conversion of any
Eurodollar Loan prior to the end of the current Interest Period therefor,
accrued interest on such Loan shall be payable on the effective date of such
conversion.(d)               
All interest hereunder shall be computed on the basis of a year of 360
days, except that interest computed by reference to the Alternate Base Rate at
times when the Alternate Base Rate is based on the Prime Rate shall be computed
on the basis of a year of 365 days (or 366 days in a leap year), and in each
case shall be payable for the actual number of days elapsed (including the
first day but excluding the last day). The applicable Alternate Base Rate,
Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative
Agent, and such determination shall be conclusive absent clearly demonstrable
error.  The Administrative Agent shall, as soon as practicable, notify the
Borrower and the Lenders of the effective date and the amount of each such
change in the Prime Rate, but any failure to so notify shall not in any manner
affect the obligation of the Borrower to pay interest on the Loans in the
amounts and on the dates required.

Section 3.2               
Interest Elections Relating to Borrowings
(a)               
Each Borrowing initially shall be of the Type specified in the applicable
Credit Request and, in the case of a Eurodollar Borrowing, shall have an
initial Interest Period as specified in such Credit Request. Thereafter, the
Borrower may elect to convert such Borrowing to a different Type or to continue
such Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest
Periods therefor, all as provided in this Section. The Borrower may elect
different options with respect to different portions of the affected Borrowing,
in which case each such portion shall be allocated ratably among the Lenders
holding the Loans comprising such Borrowing, and the Loans comprising each such
portion shall be considered a separate Borrowing. 

(b)               
To make an election pursuant to this Section, the Borrower shall deliver
to the Administrative Agent a signed Interest Election Request in a form
approved by the Administrative Agent (or notify the Administrative Agent by
telephone, to be promptly confirmed by delivery to the Administrative Agent of
a signed Interest Election Request) by the time that a Credit Request would be
required under Section 2.3 if the Borrower were requesting a Borrowing
of the Type resulting from such election to be made on the effective date of
such election.(c)               
Each such telephonic and written Interest Election Request shall be
irrevocable and shall specify the following information:

(i)                 
the Borrowing to which such Interest Election Request applies and, if
different options are being elected with respect to different portions thereof,
the portions thereof to be allocated to each resulting Borrowing (in which case
the information to be specified pursuant to clauses (iii) and (iv) of this
paragraph shall be specified for each resulting Borrowing);
(ii)               
the effective date of the election made pursuant to such Interest
Election Request, which shall be a Business Day;

(iii)              
whether the resulting Borrowing is to be an ABR Borrowing or a
Eurodollar Borrowing; and-33-

(iv)             
if the resulting Borrowing is a Eurodollar Borrowing, the Interest
Period to be applicable thereto after giving effect to such election, which
shall be a period contemplated by the definition of the term "Interest Period".If any such Interest Election Request requests a
Eurodollar Borrowing but does not specify an Interest Period, then the Borrower
shall be deemed to have selected an Interest Period of one month's duration.

(d)               
Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of
such Lender's portion of each resulting Borrowing.(e)               
If the Borrower fails to deliver a timely Interest Election Request
prior to the end of the Interest Period applicable thereto, then, unless such
Borrowing is repaid as provided herein, at the end of such Interest Period,
such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any
contrary provision hereof, if an Event of Default has occurred and is
continuing and the Administrative Agent, at the request of the Required
Lenders, so notifies the Borrower, then, so long as an Event of Default is
continuing, (i) no outstanding Borrowing may be converted to or continued as a
Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be
converted to an ABR Borrowing at the end of the Interest Period applicable
thereto.

Section 3.3               
Fees  
(a)               
The Borrower agrees to pay to the Administrative Agent for the account
of each Lender, a facility fee, which shall accrue at a rate per annum equal to
the Applicable Margin on the daily amount of the Commitment of such Lender
(regardless of usage) during the period from and including the date on which
this Credit Agreement becomes effective pursuant to Section 10.6 to but
excluding the date on which such Commitment terminates; provided that,
if such Lender continues to have any Credit Exposure after its Commitment
terminates, then such facility fee shall continue to accrue on the daily amount
of such Lender's Credit Exposure from and including the date on which such
Lender's Commitment terminates to but excluding the date on which such Lender
ceases to have any Credit Exposure. Accrued facility fees shall be payable in
arrears on the last day of March, June, September and December of each year,
each date on which the Commitments are permanently reduced and on the date on
which the Commitments terminate, commencing on the first such date to occur
after the Agreement Date, provided that all unpaid facility fees shall
be payable on the date on which the Commitments terminate and provided further
that facility fees which accrue after the Commitments terminate shall be
payable on demand. All facility fees shall be computed on the basis of a year
of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).

(b)               
The Borrower agrees to pay (i) to the Administrative Agent for the account of each Lender a participation fee with respect to its participations in
Letters of Credit, which shall accrue at a rate per annum equal to the
Applicable Margin on the average daily amount of such Lender's LC Exposure
(excluding any portion thereof attributable to unreimbursed LC Disbursements)
during the period from and including the Closing Date to but excluding the
later of the date on which such Lender's Commitment terminates and the date on
which such Lender ceases to have any LC Exposure and (ii) to the Issuing Bank for its own account a fronting fee, which shall accrue at the rate or rates per
annum separately agreed upon between the Borrower and the Issuing Bank on the average
daily amount of the LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the Closing
Date to but excluding the later of the date of termination of the Commitments
and the date on which there ceases to be any LC Exposure, as 
-34-

well as the
Issuing Bank's standard fees with respect to the issuance, amendment, renewal
or extension of any Letter of Credit or processing of drawings thereunder. 
Accrued participation fees and fronting fees shall be payable in arrears on the
last day of March, June, September and December of each year, commencing on the
first such date to occur after the date hereof; provided that all such
fees shall be payable on the date on which the Commitments terminate and any
such fees accruing after the date on which the Commitments terminate shall be
payable on demand.  Any other fees payable to the Issuing Bank pursuant to this
paragraph shall be payable within ten days after demand.  All participation
fees and fronting fees shall be computed on the basis of a year of 360 days and
shall be payable for the actual number of days elapsed (including the first day
but excluding the last day).(c)               
The Borrower agrees to pay to the Administrative Agent for the account
of each Lender during the period from and including the date on which this
Credit Agreement becomes effective pursuant to Section 10.6 to but excluding
the date on which such Commitment terminates; a utilization fee which shall
accrue at a rate per annum equal to 0.125% on the aggregate Credit Exposure for
each day that such aggregate Credit Exposure shall exceed 50.0% of the
Commitments of all Lenders, provided that, if such Lender continues to
have any Credit Exposure after its Commitment terminates, then such utilization
fee shall continue to accrue on the daily amount of such Lender's Credit
Exposure from and including the date on which such Lender's Commitment
terminates to but excluding the date on which such Lender ceases to have any
Credit Exposure. Accrued utilization fees shall be payable in arrears on the
last day of March, June, September and December of each year, each date on
which the Commitments are permanently reduced and on the date on which the
Commitments terminate, commencing on the first such date to occur after the
Agreement Date, provided that all unpaid utilization fees shall be
payable on the date on which the Commitments terminate and provided
further that utilization fees which accrue after the Commitments terminate shall
be payable on demand. All utilization fees shall be computed on the basis of a
year of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).

(d)               
The Borrower agrees to pay to each Credit Party, for its own account,
fees and other amounts payable in the amounts and at the times separately
agreed upon in writing between the Borrower and such Credit Party.
(e)               
All fees and other amounts payable hereunder shall be paid on the dates
due, in immediately available funds. Fees and other amounts paid shall not be
refundable under any circumstances.

Section 3.4               
Alternate Rate of InterestIf prior to the commencement of any Interest
Period for a Eurodollar Borrowing:

(a)    the
Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for
ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such
Interest Period; or(b)    the
Administrative Agent is advised by Required Lenders that the Adjusted LIBO Rate
or the LIBO Rate, as applicable, for such Interest Period will not adequately
and fairly reflect the cost of making or maintaining their Loans included in
such Borrowing for such Interest Period;

-35-

then the Administrative Agent shall give notice thereof to
the Borrower and the Lenders by telephone (confirmed by facsimile) or facsimile
as promptly as practicable thereafter and, until the Administrative Agent
notifies the Borrower and the Lenders that the circumstances giving rise to
such notice no longer exist, (i) any Interest Election Request that requests
the conversion of any Borrowing to, or continuation of any Borrowing as, a
Eurodollar Borrowing shall be ineffective, and (ii) if any Credit Request
requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR
Borrowing.

Section 3.5               
Increased Costs; Illegality(a)               
If any Change in Law shall:

(i)                 
impose, modify or deem applicable any reserve, special deposit or
similar requirement against assets of, deposits with or for the account of, or
credit extended by, any Credit Party (except any such reserve requirement
reflected in the Adjusted LIBO Rate); or(ii)               
impose on any Credit Party or the London interbank market any other
condition affecting this Credit Agreement, any Eurodollar Loans made by such
Credit Party or any participation therein or any Letter of Credit or
participation therein;

and the result of any of the foregoing shall be to
increase the cost to such Credit Party of making or maintaining any Eurodollar
Loan or the cost to such Credit Party of issuing, participating in or
maintaining any Letter of Credit hereunder or to increase the cost to such
Credit Party or to reduce the amount of any sum received or receivable by such
Credit Party hereunder (whether of principal, interest or otherwise), then the
Borrower will pay to such Credit Party such additional amount or amounts as
will compensate such Credit Party for such additional costs incurred or
reduction suffered.

(b)               
If any Credit Party determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on
such Credit Party's capital or on the capital of such Credit Party's holding
company, if any, as a consequence of this Credit Agreement or the Loans made,
the Letters of Credit issued or the participations therein held, by such Credit
Party to a level below that which such Credit Party or such Credit Party's
holding company could have achieved but for such Change in Law (taking into
consideration such Credit Party's policies and the policies of such Credit
Party's holding company with respect to capital adequacy), then from time to
time the Borrower will pay to such Credit Party such additional amount or
amounts as will compensate such Credit Party or such Credit Party's holding
company for any such reduction suffered.(c)               
A certificate of a Credit Party setting forth the amount or amounts
necessary to compensate such Credit Party or its holding company, as
applicable, as specified in paragraph (a) or (b) of this Section shall be
delivered to the Borrower and shall be conclusive absent manifest error. The
Borrower shall pay such Credit Party the amount shown as due on any such
certificate within 10 days after receipt thereof. 

(d)               
Failure or delay on the part of any Credit Party to demand compensation
pursuant to this Section shall not constitute a waiver of such Credit Party's
right to demand such compensation; provided that the Borrower shall not
be required to compensate a Credit Party pursuant to this Section for any
increased costs or reductions incurred more than 90 days prior to the date that
such Credit Party notifies the Borrower of the Change in Law giving rise to
such increased costs or 
-36-

reductions and of such Credit Party's intention to
claim compensation therefor; and provided further that, if the
Change in Law giving rise to such increased costs or reductions is retroactive,
then the 90 day period referred to above shall be extended to include the
period of retroactive effect thereof. 
(e)               
Notwithstanding any other provision of this Credit Agreement, if, after
the Agreement Date, any Change in Law 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:

(i)                 
such Lender may declare that Eurodollar Loans will not thereafter (for
the duration of such unlawfulness) be made by such Lender hereunder (or be
continued for additional Interest Periods) and ABR Loans will not thereafter (for
such duration) be converted into Eurodollar Loans, whereupon any request for a
Eurodollar Borrowing or to convert an ABR Borrowing to a Eurodollar Borrowing
or to continue a Eurodollar Borrowing, as applicable, for an additional
Interest Period shall, as to such Lender only, be deemed a request for an ABR
Loan (or a request to continue an ABR Loan as such for an additional Interest
Period or to convert a Eurodollar Loan into an ABR Loan, as applicable), unless
such declaration shall be subsequently withdrawn; and(ii)               
such Lender may require that all outstanding Eurodollar Loans made by it
be converted to ABR Loans, in which event all such Eurodollar Loans shall be
automatically converted to ABR Loans, as of the effective date of such notice
as provided in the last sentence of this paragraph. 

In the event any Lender shall exercise its rights under
clause (i) or (ii) of this paragraph, all payments and prepayments of principal
that 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 ABR Loans made by such Lender in lieu of,
or resulting from the conversion of, such Eurodollar Loans, as applicable.  For
purposes of this paragraph, a notice to the Borrower by any Lender shall be
effective as to each Eurodollar Loan made by such Lender, if lawful, on the
last day of the Interest Period currently applicable to such Eurodollar Loan;
in all other cases such notice shall be effective on the date of receipt by the
Borrower.

Section 3.6               
Break Funding PaymentsIn the event of (a) the payment or prepayment (voluntary or otherwise) of any principal of any Eurodollar Loan other than on the
last day of an Interest Period applicable thereto (including as a result of an
Event of Default), (b) the conversion of any Eurodollar Loan other than on the
last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurodollar Loan on the date specified in any
notice delivered pursuant hereto (regardless of whether such notice may be
revoked under Section 2.7(c) and is revoked in accordance therewith), or
(d) the assignment of any Eurodollar Loan other than on the last day of the
Interest Period or maturity date applicable thereto as a result of a request by
the Borrower pursuant to Section 3.8, then, in any such event, the
Borrower shall compensate each Lender for the loss, cost and expense
attributable to such event. In the case of a Eurodollar Loan, such loss, cost
or expense to any Lender shall be deemed to include an amount determined by
such Lender to be the excess, if any, of (i) the amount of interest that would have accrued on the principal amount of such Loan had such event not
occurred, at the Adjusted LIBO Rate that would have been applicable to such
Loan, for the period from the date of such event to the last day of the then
current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period
for 

-37-

such Loan), over (ii) the amount of interest that would accrue on such
principal amount for such period at the interest rate that such Lender would
bid were it to bid, at the commencement of such period, for dollar deposits of
a comparable amount and period from other banks in the eurodollar market. A
certificate of any Lender setting forth any amount or amounts that such Lender
is entitled to receive pursuant to this Section shall be delivered to the
Borrower and shall be conclusive absent manifest error. The Borrower shall pay
such Lender the amount shown as due on any such certificate within 10 days
after receipt thereof.

Section 3.7               
Taxes(a)               
Payments to be Free and Clear. Provided that all documentation,
if any, then required to be delivered by any Lender or the Administrative Agent
pursuant to Section 3.7(c) has been delivered, all sums payable by the
Borrower under the Loan Documents shall be paid free and clear of and (except
to the extent required by law) without any deduction or withholding on account
of any Tax (other than a Tax on the Overall Net Income of any Lender (for which
payment need not be free and clear, but no deduction or withholding shall be
made unless then required by applicable law)) imposed, levied, collected,
withheld or assessed by or within the United States or any political
subdivision in or of the United States or any other jurisdiction from or to
which a payment is made by or on behalf of the Borrower or by any federation or
organization of which the United States or any such jurisdiction is a member at
the time of payment.

(b)               
Grossing up of Payments. If the Borrower or any other Person is
required by law to make any deduction or withholding on account of any such Tax
from any sum paid or payable by the Borrower to the Administrative Agent or any
Lender under any of the Loan Documents:(i)                 
the Borrower shall notify the Administrative Agent and such Lender of
any such requirement or any change in any such requirement as soon as the
Borrower becomes aware of it;

(ii)               
the Borrower shall pay any such Tax before the date on which penalties
attach thereto, such payment to be made (if the liability to pay is imposed on
the Borrower) for its own account or (if that liability is imposed on the
Administrative Agent or such Lender, as the case may be) on behalf of and in
the name of the Administrative Agent or such Lender, as the case may be;
(iii)              
the sum payable by the Borrower to the Administrative Agent or a Lender
in respect of which the relevant deduction, withholding or payment is required
shall be increased to the extent necessary to ensure that, after the making of
that deduction, withholding or payment, the Administrative Agent or such
Lender, as the case may be, receives on the due date therefor a net sum equal
to what it would have received had no such deduction, withholding or payment
been required or made; and

(iv)             
within 30 days after paying any sum from which it is required by law to
make any deduction or withholding, and within 30 days after the due date of
payment of any Tax which it is required by clause (ii) above to pay, the
Borrower shall deliver to the Administrative Agent and the applicable Lender
evidence satisfactory to the other affected parties of such deduction,
withholding or payment and of the remittance thereof to the relevant Governmental
Authority;-38-

(v)               
provided that no additional amount shall be required to be paid to any
Lender under clause (iii) above except to the extent that any change after the
date hereof (in the case of each Lender listed on the signature pages hereof)
or after the date of the Assignment and Acceptance Agreement pursuant to which
such Lender became a Lender (in the case of each other Lender) if any such
requirement for a deduction, withholding or payment as is mentioned therein
shall result in an increase in the rate of such deduction, withholding or
payment from that in effect at the date of this Agreement or at the date of
such Assignment and Acceptance Agreement, as the case may be, in respect of
payments to such Lender, and provided further that any Lender claiming
any additional amounts payable pursuant to this Section 3.7 shall use
reasonable efforts (consistent with its internal policy and legal and
regulatory restrictions) to change the jurisdiction of its Applicable Lending
Office or take other appropriate action if the making of such a change or the
taking of such action, as the case may be, would avoid the need for, or reduce
the amount of, any such additional amounts that may thereafter accrue and would
not, in the reasonable judgment of such Lender, be otherwise disadvantageous to
such Lender.(c)               
Tax Certificates. Each Foreign Lender shall deliver to the
Borrower (with a copy to the Administrative Agent), on or prior to the Closing
Date (in the case of each Foreign Lender listed on the signature pages hereof)
or on the effective date of the Assignment and Acceptance Agreement pursuant to
which it becomes a Lender (in the case of each other Foreign Lender), and at
such other times as may be necessary in the determination of the Borrower or
the Administrative Agent (each in the reasonable exercise of its discretion),
including upon the occurrence of any event requiring a change in the most
recent counterpart of any form set forth below previously delivered by such
Foreign Lender to the Borrower, such certificates, documents or other evidence,
properly completed and duly executed by such Foreign Lender (i) two accurate
and complete original signed copies of Internal Revenue Service Form W8‐BEN
or Form W8‐ECI, or successor applicable form and (ii) an Internal Revenue
Service Form W‐8 or W‐9 (or any other certificate or statement of
exemption required by Treasury Regulations Section 1.1441 4(a) or Section
1.1441 6(c) or any successor thereto) to establish that such Foreign Lender is
not subject to deduction or withholding of United States federal income tax
under Section 1441 or 1442 of the Code or otherwise (or under any comparable
provisions of any successor statute) with respect to any payments to such
Foreign Lender of principal, interest, fees or other amounts payable under any
of the Loan Documents.  The Borrower shall not be required to pay any
additional amount to any such Foreign Lender under Section 3.7(b)(iii)
if such Foreign Lender shall have failed to satisfy the requirements of the
immediately preceding sentence; provided that if such Foreign Lender
shall have satisfied such requirements on the Closing Date (in the case of each
Foreign Lender listed on the signature pages hereof) or on the effective date
of the Assignment and Acceptance Agreement pursuant to which it becomes a
Lender (in the case of each other Foreign Lender), nothing in this Section
shall relieve the Borrower of its obligation to pay any additional amounts
pursuant to Section 3.7(b)(iii) in the event that, as a result of any
change in applicable law, such Foreign Lender is no longer properly entitled to
deliver certificates, documents or other evidence at a subsequent date
establishing the fact that such Foreign Lender is not subject to withholding as
described in the immediately preceding sentence.

Section 3.8               
Mitigation ObligationsIn the event that (i) the Borrower becomes obligated to pay additional amounts to any Lender pursuant to
Section 3.5, Section 3.6 or Section
3.7, or (ii) any Lender defaults in its obligation to fund Loans hereunder
on two or more occasions, the Borrower may, within 60 days of the demand by
such Lender for such additional amounts or the relevant default by such Lender,
as the case may be, and subject to and in accordance with the provisions of Section
10.4, designate an Eligible Assignee 

-39-

(acceptable to the Administrative
Agent and the Issuing Bank) to purchase and assume all its interests, rights
and obligations under the Loan Documents, without recourse to or warranty by or
expense to, such Lender, for a purchase price equal to the outstanding
principal amount of such Lender's Loans plus any accrued but unpaid interest
thereon and accrued but unpaid facility fees, utilization fees and letter of
credit fees in respect of such Lender's Commitment and any other amounts
payable to such Lender hereunder, and to assume all the obligations of such
Lender hereunder, and, upon such purchase, such Lender shall no longer be a
party hereto or have any rights hereunder (except those that survive full
repayment hereunder) and shall be relieved from all obligations to the Borrower
hereunder, and the Eligible Assignee shall succeed to the rights and
obligations of such Lender hereunder.  The Borrower shall execute and deliver
to such Eligible Assignee a Note.  Notwithstanding anything herein to the
contrary, in the event that a Lender is replaced pursuant to this Section
3.8 as a result of the Borrower becoming obligated to pay additional
amounts to such Lender pursuant to Section 3.5, Section 3.6 or Section
3.7, such Lender shall be entitled to receive such additional amounts as if
it had not been so replaced.  

Article
4.

REPRESENTATIONS
AND WARRANTIES

The Borrower represents and warrants to the
Credit Parties that:

Section 4.1               
Organization; PowersEach of the Borrower and the Restricted
Subsidiaries is duly organized or formed, validly existing and in good standing
under the laws of the jurisdiction of its organization or formation, has all
requisite power and authority to carry on its business as now conducted and,
except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, is qualified to
do business in, and is in good standing in, every jurisdiction where such
qualification is required.

Section 4.2               
Authorization; EnforceabilityThe Transactions are within the corporate
powers of the Borrower and have been duly authorized by all necessary corporate
and, if required, equity holder action.  Each Loan Document has been duly
executed and delivered by the Borrower and constitutes a legal, valid and
binding obligation thereof, enforceable in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting creditors' rights generally and general principles of
equity.

Section 4.3               
Governmental Approvals; No ConflictsThe Transactions (i) do not require any consent or approval of, registration or filing with, or any other action by, any
Governmental Authority, except for (x) information filings to be made in the
ordinary course of business, which filings are not a condition to the
Borrower's performance under the Loan Documents and (y) such as have been
obtained or made and are in full force and effect and not subject to any
appeals period, (ii) will not violate any applicable law or regulation or the
charter, by laws or other organizational documents of the Borrower or any order
of any Governmental Authority, (iii) will not violate or result in a default
under any material indenture, agreement or other instrument binding upon the
Borrower or or its assets, or give rise to a right 

-40-

thereunder to require any
payment to be made by the Borrower, and (iv) will not result in the creation or imposition of any Lien on any asset of the Borrower (other than Liens
expressly permitted by Section 7.2).

Section 4.4               
Financial Condition; No Material Adverse Change(a)               
The Borrower has heretofore delivered to the Credit Parties copies of
its Form 10‐K for the fiscal year ended December 31, 2004, containing (i) the audited consolidated balance sheet of the Borrower and the Subsidiaries and the
related consolidated statements of operations, comprehensive income, changes in
stockholders' equity and cash flows for the fiscal years ending December 31,
2004, December 31, 2003 and December 31, 2002 (with the applicable related
notes and schedules, the "Borrower Financial Statements") and (ii) the audited consolidated balance sheet of the Utility and the Utility Subsidiaries
and the related consolidated statements of income, members' equity and cash
flows for the fiscal years December 31, 2004, December 31, 2003 and December
31, 2002 (with the applicable related notes and schedules, the "Utility
Financial Statements").  Each of the Borrower Financial Statements and the
Utility Financial Statements have been prepared in accordance with GAAP and
fairly present the consolidated financial condition and results of the
operations of the Borrower as of the dates and for the periods indicated
therein. 

(b)               
Since December 31, 2004, each of the Borrower and the Restricted Subsidiaries has
conducted its business only in the ordinary course and there has been no
Material Adverse Change.Section 4.5               
Properties

(a)               
Each of the Borrower and the Restricted Subsidiaries has, subject to
Permitted Encumbrances, good title to, or valid leasehold interests in, all its
real and personal property material to its business, except for minor defects
in title that do not interfere with its ability to conduct its business as
currently conducted or to utilize such properties for their intended purposes.
(b)               
Each of the Borrower and the Restricted Subsidiaries owns, possesses
adequate licenses or is otherwise entitled to use, all Intellectual Property
material to its business, and the use thereof by the Borrower and the Restricted
Subsidiaries does not infringe upon the rights of any other Person, except for
any failure to own or have such rights or any such infringements that,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.

Section 4.6               
Litigation and Environmental Matters
(a)               
There are no actions, suits or proceedings by or before any arbitrator
or Governmental Authority pending against or, to the knowledge of the Borrower,
threatened in writing against or affecting the Borrower or any of the
Restricted Subsidiaries (i) that, if adversely determined (and provided
that there exists a reasonable possibility of such adverse determination),
could reasonably be expected, individually or in the aggregate, to result in a
Material Adverse Effect (other than the Disclosed Matters), except that the
commencement by the Borrower, any of the Restricted Subsidiaries or any
Governmental Authority of a rate proceeding or earnings review before such
Governmental Authority shall not constitute such a pending or threatened
action, suit or proceeding unless and until such Governmental Authority has
made a final determination thereunder that could reasonably be expected to have
a Material Adverse Effect, or (ii) that involve any Loan Document or the
Transactions.

-41-

(b)               
Except for the Disclosed Matters and except with respect to any other
matters that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect:(i)                 
to the best knowledge of the Borrower, the properties owned, leased or
operated by the Borrower and the Restricted Subsidiaries (the "Properties") do not
contain any Hazardous Materials in amounts or concentrations which (i) constitute,
or constituted a violation of, (ii) require Remedial Action under, or (iii)
could give rise to liability under, Environmental Laws, which violations,
Remedial Actions and liabilities, in the aggregate, could reasonably be
expected to result in a Material Adverse Effect,

(ii)               
to the best knowledge of the Borrower, the Properties and all operations
of the Borrower and the Restricted Subsidiaries are in compliance in all
material respects, and in the last five years have been in compliance, with all
Environmental Laws, and all necessary Environmental Permits have been obtained
and are in effect, except to the extent that such non‐compliance or
failure to obtain any necessary permits, in the aggregate, could not reasonably
be expected to result in a Material Adverse Effect,(iii)              
to the best knowledge of the Borrower, there have been no Releases or
threatened Releases at, from, under or proximate to the Properties or otherwise
in connection with the current or former operations of the Borrower or the
Restricted Subsidiaries, which Releases or threatened Releases, in the
aggregate, could reasonably be expected to result in a Material Adverse Effect,

(iv)             
neither the Borrower nor any of the Restricted Subsidiaries has received
any notice directly or otherwise learned indirectly (through a Corporate
Officer) of an Environmental Claim in connection with the Properties or the
current or former operations of the Borrower or the Restricted Subsidiaries or
with regard to any Person whose liabilities for environmental matters the Borrower
or the Restricted Subsidiaries has retained or assumed, in whole or in part,
contractually, by operation of law or otherwise, which, in the aggregate, could
reasonably be expected to result in a Material Adverse Effect, nor do the
Borrower or the Restricted Subsidiaries have reason to believe that any such
notice will be received or is being overtly threatened, and
(v)               
to the best knowledge of the Borrower, Hazardous Materials have not been
transported from the Properties, nor have Hazardous Materials been generated,
treated, stored or disposed of at, on or under any of the Properties in a
manner that could give rise to liability under any Environmental Law, nor have
the Borrower or the Restricted Subsidiaries retained or assumed any liability,
contractually, by operation of law or otherwise, with respect to the
generation, treatment, storage or disposal of Hazardous Materials, which
transportation, generation, treatment, storage or disposal, or retained or
assumed liabilities, in the aggregate, could reasonably be expected to result
in a Material Adverse Effect.

(c)               
Since the Agreement Date, there has been no change in the status of the
Disclosed Matters that, individually or in the aggregate, has resulted in, or
materially increased the likelihood of, a Material Adverse Effect.-42-

Section 4.7               
Compliance with Laws and AgreementsEach of the Borrower and the Restricted
Subsidiaries is in compliance with all laws, regulations and orders of any
Governmental Authority applicable to it or its property and all indentures,
agreements and other instruments binding upon it or its property, except where
the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect (other than Disclosed
Matters).  No Default has occurred and is continuing.

Section 4.8               
Investment and Holding Company StatusNeither the Borrower nor any of the Restricted
Subsidiaries is (i) an "investment company" or a company "controlled" by an
"investment company" as defined in, or is otherwise subject to regulation
under, the Investment Company Act of 1940, as amended, or (ii) a "holding
company", or an "affiliate" or "subsidiary company" of a "holding company", as
those terms are defined in the Public Utility Holding Company Act of 1935, as
amended, in each case which is subject to registration thereunder.  

Section 4.9               
TaxesEach of the Borrower and the Restricted
Subsidiaries has timely filed or caused to be filed all Tax returns and reports
required to have been filed and has paid or caused to be paid all Taxes
required to have been paid by it, except (i) Taxes that are being contested in good faith by appropriate proceedings and for which the Borrower or such
Restricted Subsidiary, as applicable, has set aside on its books adequate reserves
or (ii) to the extent that the failure to do so could not reasonably be
expected to result in a Material Adverse Effect.

Section 4.10           
ERISAEach of the Borrower and its ERISA Affiliates
is in compliance in all material respects with the applicable provisions of
ERISA and the Code and the regulations and published interpretations thereunder
except for any such failure that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect.  No ERISA Event
has occurred or is reasonably expected to occur that, when taken together with
all other such ERISA Events for which liability is reasonably expected to
occur, could reasonably be expected to result in a Material Adverse Effect. The
present value of all accumulated benefit obligations under each Plan (based on
the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most audited recent financial
statements reflecting such amounts, exceed by more than $10,000,000 the fair
market value of the assets of such Plan, and the present value of all
accumulated benefit obligations of all underfunded Plans (based on the
assumptions used for purposes of Statement of Financial Accounting Standards
No. 87) did not, as of the date of the most recent audited financial statements
reflecting such amounts, exceed by more than $10,000,000 the fair market value
of the assets of all such underfunded Plans.  

Section 4.11           
DisclosureThe Borrower has disclosed to the Credit
Parties all agreements, instruments and corporate or other restrictions to
which it or any of the Restricted Subsidiaries is subject, and all other
matters known to it, that, individually or in the aggregate, could reasonably
be expected to result in a Material Adverse Effect.  None of the reports,
financial statements, certificates or other information furnished by or on
behalf of the Borrower or any Restricted Subsidiary to any Credit Party in

-43-

connection with the negotiation of the Loan Documents or delivered thereunder
when taken as a whole (as modified or supplemented by other information so
furnished) contains any material misstatement of fact or omits to state any
material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not materially misleading, provided
that, to the extent any such reports, financial statements, certificates or
other information was based upon or constitutes a forecast or a projection, the
Borrower represents only that such information was prepared in good faith based
upon assumptions believed to be reasonable at the time.

Section 4.12           
SubsidiariesAs of the Agreement Date, the
Borrower has only the Subsidiaries set forth on Schedule 4.12, which
Schedule sets forth with respect to each Subsidiary, the identity of each
Person which owns Equity Interests in such Subsidiary and the percentage of the
issued and outstanding Equity Interests owned by each such Person.  The shares
of each corporate Restricted Subsidiary are duly authorized, validly issued,
fully paid and non assessable and are owned free and clear of any Liens, other
than Liens permitted pursuant to Section 7.2(i).  The interest of the
Borrower in each non‐corporate Restricted Subsidiary is owned free and
clear of any Liens, other than Liens permitted pursuant to Section 7.2(i).
As of the Agreement Date, neither the Borrower nor any Subsidiary has issued
any Disqualified Stock.

Section 4.13           
Federal Reserve Regulations, etc.(a)               
Neither the Borrower nor any of the Subsidiaries is engaged principally,
or as one of their important activities, in the business of extending credit
for the purpose of buying or carrying Margin Stock. Immediately before and
after giving effect to the making of each Loan and the issuance of each Letter
of Credit, Margin Stock will constitute less than 25% of the Borrower's assets
as determined in accordance with Regulation U. 

(b)               
No part of the proceeds of any Loan or any Letter of Credit will be
used, whether directly or indirectly, and whether immediately, incidentally or ultimately,
(i) to purchase, acquire or carry any Margin Stock or for any purpose that
entails a violation of, or that is inconsistent with, the provisions of the
regulations of the Board, including Regulation T, U or X or (ii) to fund a personal loan to or for the benefit of a director or executive officer of
a Borrower or any Subsidiary.Article
5.

CONDITIONS

Section 5.1               
Closing DateThe obligations of the Lenders to make Loans
and of the Issuing Bank to issue Letters of Credit hereunder shall not become
effective until the date on which each of the following conditions is satisfied
(or waived in accordance with Section 10.2):

(a)               
Credit Agreement. The Administrative Agent (or its counsel) shall
have received from each party hereto either (i) a counterpart of this Credit Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include facsimile transmission of a
signed signature page of this Credit Agreement) that such party has signed a
counterpart of this Credit Agreement.-44-

(b)               
Notes. The Administrative Agent shall have received a Note for
each Lender, signed on behalf of the Borrower.(c)               
Legal Opinion. The Administrative Agent shall have received a
favorable written opinion (addressed to the Credit Parties and dated the
Closing Date) from Phelps Dunbar, L.L.P., special counsel to the Borrower,
substantially in the form of Exhibit B, and covering such other matters
relating to the Borrower, the Loan Documents and the Transactions as the
Required Lenders may reasonably request. The Borrower hereby requests such
counsel to deliver such opinions.

(d)               
Organizational Documents, etc. The Administrative Agent shall
have received such documents and certificates as the Administrative Agent or
its counsel may reasonably request relating to (i) the organization, existence and good standing of the Borrower (including (x) a certificate of incorporation
of the Borrower, certified as of a recent date by the Secretary of State of the
jurisdiction of its incorporation and (y) certificates of good standing (or
comparable certificates) for the Borrower, certified as of a recent date prior
to the Closing Date, by the Secretaries of State (or comparable official) of
the jurisdiction of its incorporation and each other jurisdiction in which it
is qualified to do business, (ii) the authorization of the Transactions, (iii) the incumbency of its officer or officers who may sign the Loan Documents,
including therein a signature specimen of such officer or officers and (iv) any other legal matters relating to the Borrower, the Loan Documents or the
Transactions, all in form and substance reasonably satisfactory to the
Administrative Agent and its counsel.(e)               
Officer's Certificate. The Administrative Agent shall have
received a certificate, in form and substance satisfactory to the
Administrative Agent, dated the Closing Date and signed by the chief executive
officer or the chief financial officer of the Borrower (or other Financial
Officer acceptable to the Administrative Agent):

(i)                 
confirming compliance with the conditions set forth in paragraphs (a)
and (b) of Section 5.2; and(ii)               
certifying that all approvals and consents of all Persons required to be
obtained in connection with the consummation of the Transactions have been duly
obtained and are in full force and effect and that all required notices have
been given and all required waiting periods have expired, attaching thereto
true and complete copies of all such required governmental and regulatory
authorizations and approvals.

(f)                
Fees and Expenses. The Administrative Agent shall have received
all fees and other amounts due and payable on or prior to the Closing Date,
including, to the extent invoiced, reimbursement or payment of all out‐of‐pocket
expenses required to be reimbursed or paid by the Borrower hereunder.
(g)               
Termination of Existing Loan Documents. After giving effect to
the application of the proceeds of the Loans on the Closing Date, the
Indebtedness under the Existing Loan Documents shall have been fully repaid,
the Existing Loan Documents shall have been canceled or terminated, the
Borrower shall have been released from all liability thereunder (other than
indemnification obligations under the Existing Credit Agreement which, by their
terms, survive such termination), and the Administrative Agent shall have
received reasonably satisfactory evidence thereof.

-45-

(h)               
No Material Adverse Change. The Administrative Agent shall have
received a certificate of a Financial Officer, in form and substance satisfactory
to the Administrative Agent, dated the Closing Date, to the effect that since
December 31, 2004, no Material Adverse Change has occurred.
(i)                 
Certain Agreements. The Administrative Agent shall have
received a certificate of a duly authorized officer of the Borrower, in form
and substance satisfactory to the Administrative Agent, (i) attaching a true
and complete copy of the Utility Mortgage and the Employee Stock Ownership
Plan, each of which shall be in form and substance satisfactory to the Administrative
Agent, and (ii) attaching a true, complete and correct copy of the Inter‐Affiliate
Policies Agreement, which shall be in form and substance satisfactory to the
Administrative Agent.

The Administrative Agent shall notify each of the Borrower
and the Credit Parties of the Closing Date, and each such notice shall be
conclusive and binding.  Notwithstanding the foregoing, the obligations of the
Lenders to make Loans and the Issuing Bank to issue Letters of Credit hereunder
shall not become effective unless each of the foregoing conditions is satisfied
(or waived pursuant to Section 10.2) at or prior to 3:00 p.m., New York
City time, on April 30, 2005 (and, in the event such conditions are not so
satisfied or waived, the Commitments shall terminate at such time).

Section 5.2               
Each Credit EventThe obligation of each Lender to make a Loan on
the occasion of any Borrowing, and of the Issuing Bank to issue, increase,
amend, renew or extend a Letter of Credit, (each such event being called a "Credit
Event") is subject to the satisfaction of the following conditions:

(a)               
The representations and warranties of the Borrower set forth in the Loan
Documents shall be true and correct on and as of the date of such Borrowing or
the date of such issuance, increase, amendment, renewal or extension, as
applicable, except to the extent such representations and warranties
specifically relate to an earlier date, in which case such representations and
warranties shall have been true and correct on and as of such earlier date,
(b)               
At the time of and immediately after giving effect to such Borrowing or
such issuance, increase, amendment, renewal or extension, as applicable, no
Default shall have occurred and be continuing.

(c)               
The Administrative Agent shall have received such other documentation
and assurances as shall be reasonably required by it in connection therewith.
(d)               
Such Loan or Letter of Credit shall not be prohibited by any applicable
law, rule or regulation.

Each Borrowing and each issuance, increase, amendment, renewal
or extension of a Letter of Credit shall be deemed to constitute a
representation and warranty by the Borrower on the date thereof as to the
matters specified in paragraphs (a) and (b) of this Section.

-46-

Article
6.

AFFIRMATIVE COVENANTS

Until the Commitments
have expired or been terminated and the principal of and interest on each Loan
and all fees and other amounts payable under the Loan Documents shall have been
paid in full and all Letters of Credit have expired and all LC Disbursements
have been reimbursed, the Borrower covenants and agrees with the Credit Parties
that:

Section 6.1               
Financial Statements and Other InformationThe Borrower will furnish to the Administrative
Agent and each Lender:

(a)               
As soon as available, but in any event within 120 days after the end of
each fiscal year, (i) a copy of the Borrower's Annual Report on Form 10‐K
in respect of such fiscal year required to be filed by the Borrower with the
SEC, together with the financial statements attached thereto, and (ii) the Borrower's audited consolidated and unaudited consolidating balance sheet and
related statements of income, stockholder's equity and cash flows as of the end
of and for such fiscal year, setting forth in each case in comparative form the
figures for the previous fiscal year, all reported on by the Accountants
(without a "going concern" or like qualification or exception and without any
qualification or exception as to the scope of such audit) to the effect that
such consolidated or consolidating, as the case may be, financial statements
present fairly in all material respects the financial conditions and results of
operations of the Borrower on a consolidated or consolidating, as the case may
be, basis in accordance with GAAP consistently applied, together with in the
case of the statements referred to in clause (ii) above, a schedule of other
audited financial information consisting of consolidating or combining details
in columnar form with the Subsidiaries of the Borrower separately identified,
in accordance with GAAP consistently applied;(b)               
As soon as available, but in any event within 60 days after the end of
each of the first three fiscal quarters of each fiscal year, (i) a copy of the Borrower's Quarterly Report on Form 10‐Q in respect of such
fiscal quarter required to be filed by the Borrower with the SEC, together with
the financial statements attached thereto, and (ii) the Borrower's unaudited consolidated and unaudited consolidating balance sheet and related statements of
income, stockholder's equity and cash flows as of the end of and for such
fiscal quarter and the then elapsed portion of the fiscal year, setting forth
in each case in comparative form the figures for corresponding period or
periods of (or, in the case of the balance sheet, as of the end of) the
previous fiscal year, all certified by a duly authorized Financial Officer as
presenting fairly in all material respects the financial conditions and results
of operations of the Borrower on a consolidated or consolidating, as the case
may be, basis in accordance with GAAP consistently applied, subject to normal
year end audit adjustments and the absence of footnotes, together with, in the
case of the financial statements referred to in clause (ii) above, a schedule
of other unaudited financial information consisting of consolidating or
combining details in columnar form with the Subsidiaries of the Borrower
separately identified, in accordance with GAAP consistently applied;

(c)               
Within 60 days after the end of each of the first three fiscal quarters
(120 days after the end of the last fiscal quarter), a Compliance Certificate,
signed by a Financial Officer (or such other officer as shall be acceptable to
the Administrative Agent) as to the Borrower's compliance, as of such fiscal
quarter ending date, with Section 6.11, and as to the occurrence or

-47-

continuance of no Default or Event of Default as of such fiscal quarter ending
date and the date of such certificate; and(d)               
promptly following any request therefor, such other information
regarding the operations, business affairs and financial condition of the
Borrower or any Restricted Subsidiary, or compliance with the terms of the Loan
Documents, as any Credit Party may reasonably request.

Section 6.2               
Notices of Material EventsThe Borrower will furnish to the Administrative
Agent and each Lender of the following:

(a)               
Prompt written notice of the occurrence of any (i) Event of Default or
Default, specifying the nature and extent thereof and (ii) a Material Adverse
Change;(b)               
Prompt written notice of (i) any material citation, summons, subpoena,
order to show cause or other document naming the Borrower or any of the
Restricted Subsidiaries a party to any proceeding before any Governmental
Authority, and include with such notice a copy of such citation, summons,
subpoena, order to show cause or other document, or (ii) any lapse or other
termination of, or refusal to renew or extend, any material Intellectual
Property, license, permit, franchise or other authorization issued to the
Borrower or any of the Restricted Subsidiaries by any Person or Governmental
Authority, provided that any of the foregoing set forth in this
subsection (b) could, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect or call into question the validity or
enforceability of any of the Loan Documents; 

(c)               
Promptly upon becoming available, copies of all (i) regular, periodic or
special reports, schedules and other material which the Borrower or any of the
Restricted Subsidiaries may be required to file with or deliver to any
securities exchange or the SEC, or any other Governmental Authority succeeding
to the functions thereof, (ii) copies of any statement or report furnished to any
holder of debt securities of the Borrower or of any of the Restricted
Subsidiaries pursuant to the terms of any indenture, loan or credit or similar
agreement and not otherwise required to be furnished to the Lenders pursuant to
any other clause of this Section 6.2, (iii) material news releases
and annual reports relating to the Borrower or any of the Restricted
Subsidiaries, and (iv) upon the written request of the Administrative Agent,
reports that the Borrower or any of the Restricted Subsidiaries sends to or
files with the Federal Energy Regulatory Commission, or any Governmental
Authority succeeding to the functions thereof, or any similar state or local
Governmental Authority; 
(d)               
Prompt written notice of any order, notice, claim or proceeding received
by, or brought against, the Borrower or any of the Restricted Subsidiaries, or
with respect to any real property under any Environmental Law, that could
reasonably be expected to have a Material Adverse Effect; and

(e)               
Prompt written notice of any change by either Moody's or S&P in the
Senior Debt Rating.Each notice delivered under this Section shall be
accompanied by a statement of a Financial Officer or other executive officer of
the Borrower setting forth the details of the event or development requiring such
notice and any action taken or proposed to be taken with respect thereto.

-48-

Documents required to be
delivered pursuant to Section 6.1(a) or (b) or clauses (i)
through (iii) of Section 6.2(c) (to the extent any such documents are
included in materials otherwise filed with the SEC) may be delivered
electronically and if so delivered, shall be deemed to have been delivered on
the date (i) on which the Borrower posts such documents, or provides a link
thereto on the Borrower's website on the Internet at the website address listed
in Section 10.1; or (ii) on which such documents are posted on the
Borrower's behalf on an Internet or intranet website, if any, to which each
Lender and the Administrative have access (whether a commercial, third-party
website or whether sponsored by the Administrative Agent), provided
that: (i) the Borrower shall deliver paper copies of such documents to the
Administrative Agent or any Lender that requests the Borrower to deliver such
paper copies until a written request to cease delivering paper copies is given
by the Administrative Agent or such Lender and (ii) the Borrower shall notify the Administrative Agent and each Lender (by facsimile or electronic mail) of
the posting of any such documents and provide to the Administrative Agent by
electronic mail electronic versions (i.e., soft copies) of such
documents.  Notwithstanding anything contained herein, in every instance the
Borrower shall be required to provide paper copies of the Compliance
Certificates required by Section 6.1(c) to the Administrative Agent. 
Except for such Compliance Certificates, the Administrative Agent shall have no
obligation to request the delivery or to maintain copies of the documents
referred to above, and in any event shall have no responsibility to monitor
compliance by the Borrower with any such request for delivery, and each Lender
shall be solely responsible for requesting delivery to it or maintaining its copies
of such documents.

The Borrower hereby acknowledges that (i) the Administrative Agent will make available to the Lenders on a confidential basis
materials and/or information provided by or on behalf of the Borrower hereunder
(collectively, "Borrower Materials") by posting the Borrower Materials
on IntraLinks or another similar electronic system (the "Platform") and
(b) certain of the Lenders may be "public-side" Lenders (i.e., Lenders that do
not wish to receive material non-public information with respect to the
Borrower or its securities) (each, a "Public Lender").  The
Administrative Agent will notify the Borrower in writing if it receives written
notice from a Lender identifying itself as a Public Lender.  The Borrower hereby
agrees that it will notify the Administrative Agent in the event that any
non-public information is included in the Borrower Materials and to cooperate
with the Administrative Agent to ensure that such non-public information is not
distributed to a Public Lender.

Section 6.3               
Legal ExistenceExcept as permitted under Section 7.3, the
Borrower shall maintain its legal existence in good standing in the
jurisdiction of its incorporation or formation and in each other jurisdiction
in which the failure so to do could reasonably be expected to have a Material
Adverse Effect, and cause each of the Restricted Subsidiaries to maintain its
legal existence in good standing in each jurisdiction in which the failure so
to do could reasonably be expected to have a Material Adverse Effect.

Section 6.4               
TaxesThe Borrower shall pay and discharge when due, and cause
each of the Subsidiaries so to do, all Taxes, assessments and governmental
charges, license fees and levies upon or with respect to the Borrower or such
Subsidiary, as the case may be, and all Taxes upon the income, profits and
property of the Borrower and the Subsidiaries, which if unpaid, could
individually or collectively reasonably be expected to have a Material Adverse
Effect or become a Lien on the property of the Borrower or such Subsidiary
(other than a Lien described in clause (a) of the definition of Permitted
Encumbrances), as the case may be, unless and to the extent only that such
Taxes, assessments, charges, license fees and levies shall be contested in good
faith and by appropriate proceedings diligently conducted by the Borrower or
such Subsidiary, as the case may be, provided that such 

-49-

reserve or other
appropriate provision as shall be required by the Accountants in accordance
with GAAP shall have been made therefor.

Section 6.5               
InsuranceThe Borrower shall maintain, and cause each of the
Restricted Subsidiaries to maintain, with financially sound and reputable
insurance companies insurance on all its property in at least such amounts and
against at least such risks (but including in any event public liability and
business interruption coverage) as are usually insured against in the same
general area by companies engaged in the same or a similar business; and
furnish to the Administrative Agent, upon written request of the Administrative
Agent or any Lender, full information as to the insurance carried.

Section 6.6               
Payment of Indebtedness and Performance of Obligations

The Borrower shall pay and discharge when due, and
cause each of the Restricted Subsidiaries to pay and discharge when due, all
lawful Indebtedness, obligations and claims for labor, materials and supplies
or otherwise which, if unpaid, could individually or collectively reasonably be
expected to (i) have a Material Adverse Effect or (ii) become a Lien upon property
of the Borrower or any of the Restricted Subsidiaries (other than a Lien
expressly permitted by Section 7.2), unless and to the extent only that
the validity of such Indebtedness, obligation or claim shall be contested in
good faith and by appropriate proceedings diligently conducted, provided
that such reserve or other appropriate provision as shall be required by the
Accountants in accordance with GAAP shall have been made therefor. 

Section 6.7               
Condition of PropertyThe Borrower shall at all times, maintain, protect
and keep in good repair, working order and condition (ordinary wear and tear
excepted), and cause each of the Restricted Subsidiaries so to do, all material
property necessary to the operation of the Borrower's or such Restricted
Subsidiary's, as the case may be, material businesses.

Section 6.8               
Observance of Legal RequirementsThe Borrower shall observe and comply in all
respects, and cause each of the Restricted Subsidiaries so to do, with all
laws, ordinances, orders, judgments, rules, regulations, certifications, franchises,
permits, licenses, directions and requirements of all Governmental Authorities,
which now or at any time hereafter may be applicable to it, including ERISA and
all Environmental Laws, a violation of which could individually or collectively
reasonably be expected to have a Material Adverse Effect, except such thereof
as shall be contested in good faith and by appropriate proceedings diligently
conducted by it, provided that that such reserve or other appropriate
provision as shall be required by the Accountants in accordance with GAAP shall
have been made therefor.

Section 6.9               
Inspection of Property; Books and Records; DiscussionsThe Borrower shall keep proper books of record and
account in which full, true and correct entries in conformity with GAAP and all
requirements of law shall be made of all dealings and transactions in relation
to its business and activities and permit representatives of the Administrative
Agent and any Lender to visit its offices, to inspect any of its property and
examine and make copies or abstracts from any of its books and records at any
reasonable time and as often as may reasonably 

-50-

be desired, and to discuss the
business, operations, prospects, licenses, property and financial condition of
the Borrower and the Restricted Subsidiaries with the officers thereof and the
Accountants; provided that, so long as no Default or Event of Default
exists, none of the Administrative Agent, its agents, its representatives or
the Lenders shall be entitled to examine or make copies or abstracts of, or
otherwise obtain information with respect to, the Borrower's records relating
to pending or threatened litigation if any such disclosure by the Borrower
could reasonably be expected (i) to give rise to a waiver of any
attorney/client privilege of the Borrower or any of the Restricted Subsidiaries
relating to such information or (ii) to be otherwise materially disadvantageous
to the Borrower or any of the Restricted Subsidiaries in the defense of such
litigation.

Section 6.10           
Licenses, Intellectual PropertyThe Borrower shall obtain or maintain, as applicable,
and cause each of the Restricted Subsidiaries to obtain or maintain, as
applicable, in full force and effect, all licenses, franchises, Intellectual
Property, permits, authorizations and other rights as are necessary for the
conduct of its business and the failure of which to obtain or maintain could,
individually or collectively, reasonably be expected to have a Material Adverse
Effect.

Section 6.11           
Financial Covenants(a)               
The Borrower shall maintain at all times Total Indebtedness equal to or
less than 70% of Total Capitalization.  

(b)               
The Borrower shall maintain at all times Adjusted Total Indebtedness
equal to or less than 65% of Adjusted Total Capitalization).
(c)               
The Borrower will not permit the Interest Coverage Ratio as of
the end of any fiscal quarter to be less than 2.50:1.00.

Section 6.12           
Use of ProceedsThe proceeds of the Loans and the Letters of
Credit will be used only as follows: (i) to refinance the Indebtedness under the Existing Loan Documents, (ii) to reimburse the Issuing Bank in respect
of amounts drawn under Letters of Credit, (iii) to pay transaction fees and expenses and (iv) for general corporate purposes not inconsistent with the
terms hereof including commercial paper backup  No part of the proceeds of any
Loan or any Letter of Credit will be used, whether directly or indirectly, and
whether immediately, incidentally or ultimately, to (x) purchase, acquire or carry any Margin Stock, (y) for any purpose that entails a violation of any of the
regulations of the Board, including Regulations T, U and X, or (z) to fund a personal loan to or for the benefit of a director or executive officer of
the Borrower or any Subsidiary.

Article
7.

NEGATIVE COVENANTS

Until the Commitments
have expired or been terminated and the principal of and interest on each Loan
and all fees and other amounts payable under the Loan Documents shall have been
paid in full and all Letters of Credit have expired and all LC Disbursements
have been reimbursed, the Borrower covenants and agrees with the Credit Parties
that:

-51-

Section 7.1               
Indebtedness; Equity InterestsThe Borrower shall not create, incur, assume or
suffer to exist any Indebtedness, except:

(a)               
Indebtedness under the Loan Documents;(b)               
the Indebtedness under the Existing Loan Documents, provided that
such Indebtedness is repaid in full on or before the Closing Date;

(c)               
Guarantees in respect of obligations and liabilities under leases for
coal cars supplied in connection with Rodemacher Unit No. 2, provided
that the aggregate amount thereof shall not exceed $13,000,000 at any time; 
(d)               
Guarantees in respect of obligations and liabilities of the Utility;

(e)               
other Guarantees in respect of Permitted Hedge Agreements, provided
that the aggregate amount of such Guarantees under this clause (e) shall not
exceed $20,000,000 at any time; and(f)                
other Indebtedness (including Indebtedness of the Borrower to any
Subsidiary) and other Guarantees, in an amount which when aggregated with the
Indebtedness under the Loan Documents shall not exceed $425,000,000 at any
time, provided that (i) not more than $325,000,000 thereof shall
constitute Indebtedness or Guarantees which is pari passu with the Indebtedness
under the Loan Documents, (ii) any such Indebtedness or Guarantees which is not
pari passu with the Indebtedness under the Loan Documents shall be unsecured
and subordinated to the Indebtedness of the Borrower under the Loan Documents
in a manner consistent with the Approved Subordination Terms and otherwise
satisfactory to the Administrative Agent and (iii) the aggregate amount of
Indebtedness and Guarantees under clause (f)(i) that is secured shall not
exceed $25,000,000 at any time.

Section 7.2               
LiensThe Borrower shall not permit any Restricted
Subsidiary to create, incur, assume or suffer to exist any Lien upon any of its
property, whether now owned or hereafter acquired by it,except: 

(a)               
Liens now existing or hereafter arising in favor of the Administrative
Agent or the Lenders under the Loan Documents;(b)               
Permitted Encumbrances;

(c)               
any Lien on any property or asset of the Borrower or any Restricted
Subsidiary existing on the Agreement Date and set forth in Schedule 7.2;
(d)               
any Lien existing on any property or asset prior to the acquisition
thereof by the Borrower or any of the Restricted Subsidiaries or existing on
any property or asset of any Person that becomes a Restricted Subsidiary after
the date hereof prior to the time such Person becomes a Restricted Subsidiary,
provided
that (i) such Lien is not created in contemplation of or in connection with
such acquisition or such Person becoming a Restricted Subsidiary, as the case
may be, (ii) such Lien shall not apply to any other property or assets of the
Borrower or any of the Restricted Subsidiaries, and (iii) such 

-52-

Lien shall
secure only those obligations and liabilities that it secures on the date of
such acquisition or the date such Person becomes a Restricted Subsidiary of the
Borrower, as the case may be, and any extensions, renewals, refinancings and
replacements thereof that do not increase the outstanding amount thereof;
(e)               
Liens (including precautionary Liens in connection with capital lease
financings) (i) in the case of a project financing by any of the Restricted
Subsidiaries, on fixed or capital assets comprising such project and other
property (including accounts, contracts and other general intangibles) relating
to the relevant project that is or becomes encumbered in connection with the
relevant project's financing by the relevant Restricted Subsidiary and (ii) in all other cases, on fixed or capital assets and other property (including any
natural gas, oil or other mineral assets, pollution control facilities,
electrical generating plants, equipment and machinery) acquired, constructed,
explored, drilled, developed, improved, repaired or serviced (including in
connection with the financing of working capital and ongoing maintenance) by
the Borrower or any of the Restricted Subsidiaries, provided that (A)
such security interests and the obligations and liabilities secured thereby are
incurred prior to or within 90 days after the acquisition of the relevant asset
or the completion of the relevant construction, exploration, drilling,
development, improvement, repair or servicing (including the relevant financing
of working capital and ongoing maintenance), or within 90 days after the
extension, renewal, refinancing or replacement of the obligations and
liabilities secured thereby, as the case may be, (B) the obligations and
liabilities secured thereby do not exceed the cost of acquiring, constructing,
exploring, drilling, developing, improving, repairing or servicing (including
the financing of working capital and ongoing maintenance in respect of) the
relevant assets, and (C) such security interests shall not apply to any other
property beyond the relevant property set forth in clause (i) or (ii) of this
subsection (e) and subsection (i), as applicable, of the Borrower or any of the
Restricted Subsidiaries; 

(f)                
Liens created to secure Indebtedness of any Restricted Subsidiary of the
Borrower to the Borrower or to any of the Borrower's other Restricted
Subsidiaries; 
(g)               
Liens created to secure sales or factoring of accounts receivable and
other receivables; 

(h)               
Liens created to secure Indebtedness and other Guarantees permitted
under Section 7.1(f), provided that the aggregate amount of such
Indebtedness and other Guarantees shall not exceed $25,000,000; 
(i)                 
Liens on any Equity Interest (other than an Equity Interest in the
Utility) owned or otherwise held by or on behalf of the Borrower or any
Restricted Subsidiary created in connection with any project financing; 

(j)                 
Liens created for the sole purpose of extending, renewing or replacing
in whole or in part Indebtedness secured by any lien, mortgage or security
interest referred to in the foregoing clauses (a) through (i), provided,
however, that the principal amount of Indebtedness secured thereby shall
not exceed the principal amount of Indebtedness so secured at the time of such
extension, renewal or replacement and that such extension, renewal or
replacement, as the case may be, shall be limited to all or a part of the
property or indebtedness that secured the lien or mortgage so extended, renewed
or replaced (and any improvements on such property); and-53-

(k)               
in the case of the Utility and the Utility Subsidiaries, Liens permitted
by the Utility Credit Agreement as in effect on the Agreement Date (without
giving effect to any amendment, supplement or other modification to any term or
provision contained therein which has not been approved in writing by Required
Lenders).Section 7.3               
Merger, Consolidation, Purchase or Sale of Assets, Etc.

The Borrower shall not consolidate with, be acquired
by, or merge into or with any Person, or convey, sell, lease or otherwise
dispose of all or any part of its property, or enter into any sale leaseback
transaction, or purchase or otherwise acquire (in one or a series of related
transactions) any part of the property (other than purchases or other
acquisitions of inventory, materials, equipment and similar property in the
ordinary course of business) of any Person, including acquisitions of the Stock
of any Person, or permit any of the Restricted Subsidiaries so to do, except:

(a)               
sales, factoring or other dispositions of Permitted Investments,
inventory, receivables and similar property in the ordinary course of business;
(b)               
Asset Sales by the Borrower to any of the Restricted Subsidiaries and by
any of the Restricted Subsidiaries to the Borrower or any of the other
Restricted Subsidiaries;

(c)               
(i) sales of transmission assets pursuant to the order of any
Governmental Authority, provided that fair market value shall have been
received for such transmission assets and (ii) other Asset Sales, provided that (A) no Default or Event of Default shall exist immediately before
or after giving effect thereto and (B) immediately after giving effect thereto,
the amount thereof, when added to the total amount of all Asset Sales made by
the Borrower and the Restricted Subsidiaries during the immediately preceding
twelve month period pursuant to this clause (c)(ii) shall not exceed 18% or
more of Material Total Assets as of the first day of such twelve month period;
 (d)               
any of the Restricted Subsidiaries may merge or consolidate with or
into, or acquire control of, or acquire all or any portion of the assets of any
Person, provided that (i) immediately after giving effect thereto, the
total consideration to be paid by the Restricted Subsidiaries to or for the
account of any Person (other than the Borrower and the Restricted Subsidiaries)
in connection therewith, but not counting purchases or other acquisitions of
property made as part of the Utility's Integrated Resources Plan, when added to
the total consideration paid by the Borrower and the Restricted Subsidiaries to
or for the account of any Person (other than the Borrower and the Restricted
Subsidiaries) in connection with all other mergers, consolidations and
acquisitions permitted under Sections 7.3(d) and 7.3(e) during
the period of the immediately preceding twelve months, shall not exceed 15% of
Material Total Assets as of the most recently completed fiscal quarter, and
(ii) in the case of a transaction involving the Utility, the Utility shall be
the survivor entity thereof or, in the event the Utility shall not be the
surviving entity thereof, (1) such surviving entity shall be organized in a
State of the United States with substantially all of its assets and businesses
located and conducted in the United States and (2) the Administrative Agent
shall have received (A) a certificate, in form and substance satisfactory to
the Administrative Agent, (x) attaching a true and complete copy of each
agreement, instrument or other document effecting such merger, consolidation or
acquisition, together with an agreement signed on behalf of such surviving
entity pursuant to which such surviving entity shall have expressly assumed all
of the indebtedness, liabilities and other obligations of the Utility under and
in accordance with the Utility Credit Agreement and the other Loan Documents
(as defined therein), and (y) certifying that such merger, consolidation or
acquisition has been consummated in accordance with such agreements,
instruments or other documents referred to in the immediately preceding clause
(x), and (B) such documents, legal opinions and certificates as

-54-

the
Administrative Agent shall reasonably request relating to the organization,
existence and, if applicable, good standing of such surviving entity, the
authorization of such merger, consolidation or acquisition and any other legal
matters relating to such surviving entity, the assumption agreement referred to
in the immediately preceding clause (x) or such merger, consolidation or
acquisition; and(e)               
the Borrower may merge or consolidate with or into, or acquire control
of, or acquire all or any portion of the assets of any Person, provided
that:

(i)                 
immediately before and after giving effect thereto, no Default or Event
of Default shall exist;(ii)               
immediately before and after giving effect thereto, all of the
representations and warranties contained in the Loan Documents shall be true
and correct except as the context thereof otherwise requires and except for
those representations and warranties which by their terms or by necessary
implication are expressly limited to a state of facts existing at a time prior
to such merger, consolidation or acquisition, as the case may be, or such other
matters relating thereto as are identified in a writing to the Administrative Agent
and the Lenders and are satisfactory to the Administrative Agent and the
Lenders;

(iii)              
the Borrower shall be the surviving entity thereof or each of the
following conditions shall have been satisfied: (x) such surviving entity shall have been incorporated or otherwise formed in a State of the United States with
substantially all of its assets and business located and conducted in the
United States, (y) such surviving entity shall, at the time of such merger,
have a senior unsecured long term debt rating of BBB‐ or higher from
S&P and Baa3 or higher from Moody's (provided that, if such
surviving entity shall be a public utility holding company and shall not have
at such time a senior unsecured long term debt rating from S&P and Moody's,
then its primary utility Subsidiary shall have at such time a senior unsecured
long term debt rating of BBB‐ or higher from S&P and Baa3 or higher
from Moody's), and (z) such surviving entity shall have expressly assumed the
obligations of the Borrower under the Loan Documents pursuant to a writing in
form and substance satisfactory to the Administrative Agent;
(iv)             
immediately after giving effect thereto, the total consideration to be
paid by the Borrower to or for the account of any Person (other than the
Restricted Subsidiaries of the Borrower) in connection therewith, when added to
the total consideration paid by the Borrower and the Restricted Subsidiaries to
or for the account of any Person (other than the Borrower and the Restricted
Subsidiaries) in connection with all mergers, consolidations and acquisitions
permitted under Sections 7.3(d) and 7.3(e) during the immediately
preceding twelve month period shall not exceed 15% of Material Total Assets as
of the most recently completed fiscal quarter; and

(v)               
the Administrative Agent and the Lenders shall have received a
certificate duly signed by a duly authorized officer of the Borrower
identifying the Person to be merged with or into, consolidated with, or
acquired by, the Borrower, and certifying as to each of the matters set forth
in subclauses (i) through (iv) of this clause (e).
Section 7.4               
Loans, Advances, Investments, etc.

The Borrower shall not, at any time, make any loan or
advance to, or make or permit to be made any investment or any other interest
in, or enter into any arrangement for the purpose of 

-55-

providing funds or credit
to, any Person (including any director or executive officer of the Borrower or
to the extent it will be a violation of applicable law, of any Subsidiary), or
permit any of the Restricted Subsidiaries so to do, other than (i) Permitted
Investments, (ii) loans and advances made by the Borrower to any of the
Restricted Subsidiaries and made by any of the Restricted Subsidiaries to the
Borrower or any of the other Restricted Subsidiaries, (iii) investments made by
the Borrower in the equity securities of any of the Restricted Subsidiaries and
made by any of the Restricted Subsidiaries in the equity securities of any of
the other Restricted Subsidiaries, (iv) arrangements made by the Borrower for
the purpose of providing funds or credit to any of the Restricted Subsidiaries
and made by any of the Restricted Subsidiaries for the purpose of providing
funds or credit to the Borrower or any of the other Restricted Subsidiaries,
(v) investments made before the Agreement Date by the Borrower in the equity
securities of any of the Unrestricted Subsidiaries, and (vi) provided
that immediately before and after giving effect thereto, no Default or Event of
Default shall exist, (A) investments made by the Borrower or any Restricted
Subsidiary in the equity securities of any of the Unrestricted Subsidiaries in
an aggregate amount not in excess of $10,000,000 in any fiscal year, and (B)
loans and advances made by the Borrower or any Restricted Subsidiary to any of
the Unrestricted Subsidiaries and other arrangements made by the Borrower or
any Restricted Subsidiary for the purpose of providing funds or credit to any
of the Unrestricted Subsidiaries, collectively, in an aggregate amount
not in excess of $20,000,000 at any time outstanding.

Section 7.5               
Amendments, etc. of Employee Stock Ownership PlanThe Borrower shall not enter into or agree to any
amendment, modification or waiver, or permit any of the Restricted Subsidiaries
so to do, of any term or condition of, or any of its rights under, the Employee
Stock Ownership Plan (other than amendments and modifications required by tax
laws to maintain the qualified status under Section 401(a) of the Code and any
adoptive instruments or other agreements providing for participation in the
Employee Stock Ownership Plan by the Borrower's affiliates), which amendment,
modification or waiver could, in the reasonable opinion of the Administrative
Agent, materially and adversely affect the interests of the Lenders
under the Loan Documents. 

Section 7.6               
Restricted PaymentsThe Borrower shall not declare or make, or agree to
pay for or make, directly or indirectly, any Restricted Payment, or permit any
of the Restricted Subsidiaries so to do, except that (i) the Borrower or any of
the Restricted Subsidiaries may declare and pay dividends with respect to its
equity securities payable solely in additional shares of such equity
securities, (ii) any of the Restricted Subsidiaries may declare and pay
dividends with respect to its equity securities to the Borrower or any of the
other Restricted Subsidiaries, (iii) the Borrower may make, and agree to make,
payments on account of liabilities described in clause (vi) of the definition
of "Indebtedness" contained herein and permitted by Section 7.1, (iv)
the Borrower may declare and pay dividends with respect to its preferred equity
securities, (v) if at the time thereof and immediately after giving effect
thereto no Default or Event of Default shall have occurred and be continuing,
the Borrower may declare and pay, and agree to declare and  pay, directly or
indirectly, Restricted Payments in cash to its common shareholders in an amount
not in excess of Net Cash Receipts for the immediately preceding twelve
consecutive month period minus $25,000,000 (tested for the period ending
on the last day of the calendar month preceding the date of the Board of
Directors' dividend declaration), and the Borrower may make and pay such cash
dividends so declared within 30 days of such declaration (without testing the
amount of such cash dividends again under the preceding formula as of the
payment date), (vi) the Borrower or any of the Restricted Subsidiaries may
make, and agree to make, payments on account of subordinated Indebtedness
described in clause (iii) of the definition of "Restricted Payments" and
permitted by the 

-56-

subordination terms applicable thereto and (vii) the Borrower
may repurchase common Equity Interests or common stock options from present or
former officers, directors or employees (or heirs of, estates of or trusts
formed such persons) of the Borrower or any Subsidiary upon the death,
disability, retirement or termination of employment of such officer, director or
employee or pursuant to the terms of any stock option plan or like agreement; provided,
however, that the aggregate amount of payments under this clause (vii) shall
not exceed $2,000,000 in any fiscal year of the Borrower.

Section 7.7               
Transactions with AffiliatesThe Borrower shall not, and shall not permit any of
the Restricted Subsidiaries to, sell, transfer, lease or otherwise dispose of
(including pursuant to a merger) any property or assets to, or purchase, lease
or otherwise acquire (including pursuant to a merger) any property or assets
from, or otherwise engage in any other transactions with, any of its
affiliates, except in the ordinary course of business at prices and on terms
and conditions not less favorable to the Borrower or such Restricted
Subsidiary, as the case may be, than could be obtained on an arms length basis
from unrelated third parties, provided that this Section shall not apply
to (i) any transaction that is permitted under Section 7.1, 7.3,
7.4
or 7.6 between or among the Borrower and the Restricted Subsidiaries and
not involving any other affiliate and (ii) any transaction that is covered by
the Inter‐Affiliate Policies Agreement as in effect on the Agreement Date
and any amendments, supplements or other modifications thereto that are
required by applicable law or by applicable Governmental Authorities.  For
purposes of this Section, the term "affiliate" means, with respect to a
specified Person, another Person that directly, or indirectly through one or
more intermediaries, Controls or is Controlled by or is under common Control
with the Person specified.

Section 7.8               
Restrictive AgreementsThe Borrower shall not, directly or indirectly enter
into, incur or permit to exist, or permit the Utility or any of the Utility
Subsidiaries so to do, any agreement or other arrangement that (i) prohibits
the ability of the Borrower, the Utility or any of the Utility Subsidiaries to
create, incur or permit to exist any Lien upon any of its property or assets or
(ii) prohibits, restricts or imposes any condition upon the ability of the
Utility or any of the Utility Subsidiaries to pay dividends or other
distributions with respect to any shares of its equity securities or to make or
repay loans or advances to the Borrower or any of the Restricted Subsidiaries
or to make investments in the Borrower or any of the Restricted Subsidiaries or
to enter into arrangements for the purpose of providing funds or credit to the
Borrower or any of the Restricted Subsidiaries, provided that (a) the
foregoing shall not apply to restrictions and conditions imposed by corporate
law or by this Credit Agreement, (b) the foregoing shall not apply to
prohibitions, restrictions and conditions existing on the Agreement Date
identified on Schedule 7.8 (but shall apply to any extension, renewal,
amendment or modification expanding the scope of any such prohibition,
restriction or condition), (c) clause (i) of this Section shall not apply to
prohibitions imposed by any agreement relating to secured Indebtedness
permitted by this Credit Agreement if such restrictions or conditions apply
only to the property or assets securing such Indebtedness, (d) clause (i) of
this Section shall not apply to customary provisions in leases restricting the
assignment thereof and (e) clause (i) of this Section shall not apply to any
prohibition with respect to equity interests (other than equity interests in
the Utility or any of the Utility Subsidiaries) owned or otherwise held by or
on behalf of the Borrower, the Utility or any of the Utility Subsidiaries
imposed by any agreement entered into in connection with a project financing.

-57-

Section 7.9               
Permitted Hedge AgreementsThe Borrower shall not enter into any hedge
agreements other than Permitted Hedge Agreements.

Section 7.10           
Covenants Applicable to the Unrestricted Subsidiary GroupThe Borrower shall not permit any Person which is a
member of the Unrestricted Subsidiary Group to, directly or indirectly:

(a)               
create, incur, assume or suffer to exist any Indebtedness or any other
Guarantee, except (i) Indebtedness owed to the Borrower and (ii) any other Indebtedness
provided that upon the creation, incurrence or assumption
of any Indebtedness for Borrowed Money under this clause (ii) after the
Agreement Date of any Person which is member of the Unrestricted Subsidiary
Group, (A) 100% of the net proceeds thereof are distributed to the Borrower on the
date of the receipt thereof, (B) such distribution is in the form of a dividend
to the extent permitted by applicable law and (C) any portion thereof which is
not in the form of a dividend shall be in the form of an unsecured intercompany
loan shall which is subordinated to the Indebtedness of the Borrower under the
Loan Documents in a manner consistent with the Approved Subordination Terms and
otherwise satisfactory to the Administrative Agent;(b)               
create, incur, assume or suffer to exist any Lien upon any of its property,
whether now owned or hereafter acquired, except for (i) Liens of the type described in
Section 7.2 (other than those described in Section 7.2(h)),
(ii) Liens securing Indebtedness described in subsection (a) above and (iii) Liens existing on the Agreement Date as set forth on
Schedule 7.10(b) as
renewed from time to time, but not any increases in the amounts secured thereby
or the property subjected to such Lien thereon;

(c)               
enter into, incur or permit to exist, any agreement or other arrangement
that (i) prohibits it from creating, incurring or permitting to exist any Lien
upon any of its property or assets or (ii) prohibits, restricts or imposes any
condition upon its ability to pay dividends or other distributions with respect
to any shares of its equity securities or to make or repay loans or advances to
the Borrower or any of the Restricted Subsidiaries or to make investments in
the Borrower or any of the Restricted Subsidiaries or to enter into
arrangements for the purpose of providing funds or credit to the Borrower or
any of the Restricted Subsidiaries, provided that (x) the foregoing
shall not apply to prohibitions, restrictions and conditions imposed by
corporate law, by this Credit Agreement or under any instrument pursuant to
which the Indebtedness described in subsection (a)(ii) is issued, (y) the
foregoing shall not apply to prohibitions, restrictions and conditions existing
on the Agreement Date identified on Schedule 7.10(c) (but shall apply to
any extension, renewal, amendment or modification expanding the scope of any
such prohibition, restriction or condition), and (z) clause (i) of this Section
shall not apply to customary provisions in leases restricting the assignment
thereof. (d)               
sell, transfer, lease or otherwise dispose of (including pursuant to a
merger) any property or assets to, or purchase, lease or otherwise acquire
(including pursuant to a merger) any property or assets from, or otherwise
engage in any other transactions with, any of its affiliates, except in the
ordinary course of business at prices and on terms and conditions not less
favorable to such Person than could be obtained on an arms length basis from
unrelated third parties, provided that this Section shall not apply to (i) any transaction that is permitted under this
Section 7.10 between or among the
Borrower and any member or members of the Unrestricted Subsidiary Group and not
involving any other affiliate, (ii) any transaction that is permitted under Sections
7.1(f) or 7.4(vi) 

-58-

between or among the Borrower and any member or
members of the Unrestricted Subsidiary Group and not involving any other
affiliate, (iii) loans and advances made by any member of the Unrestricted
Subsidiary Group to any other member of the Unrestricted Subsidiary Group, (iv) arrangements by any member of the Unrestricted Subsidiary Group for the purpose of
providing funds or credit to any other member of the Unrestricted Subsidiary
Group, (v) investments made in the equity securities of any member of the Unrestricted
Subsidiary Group by any other member of the Unrestricted Subsidiary Group, (vi) the declaration and payment of dividends or other distributions of property made by
any member of the Unrestricted Subsidiary Group to the Borrower or any
Subsidiary, (vii) the merger of any member of the Unrestricted Subsidiary Group
with and into the Borrower, any Restricted Subsidiary or any other member of
the Unrestricted Subsidiary Group, provided that in the case of any
merger or consolidation to which (x) the Borrower is a party, the Borrower
shall be the survivor and (y) any Restricted Subsidiary is a party, such
Restricted Subsidiary shall be the survivor unless the Borrower is also a party
thereto in which case the Borrower shall be the survivor, (viii) any transaction that is covered by the Inter‐Affiliate Policies Agreement as in effect on
the Agreement Date and any amendments, supplements or other modifications
thereto that are required by applicable law or by applicable Governmental
Authorities.  For purposes of this subsection (d), the term "affiliate" means,
with respect to a specified Person, another Person that directly, or indirectly
through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.Article
8.

EVENTS
OF DEFAULT

If any of the
following events (each an "Event of Default") shall occur:

(a)               
the Borrower shall fail to pay any principal of any Loan or any
reimbursement obligation in respect of any LC Disbursement when and as the same
shall become due and payable, whether at the due date thereof or at a date
fixed for prepayment thereof or otherwise;(b)               
the Borrower shall fail to pay any interest on any Loan or on any
reimbursement obligation in respect of any LC Disbursement or any fee,
commission or any other amount (other than an amount referred to in clause (a)
of this Article) payable under any Loan Document, when and as the same shall
become due and payable, and such failure shall continue unremedied for a period
of three Business Days;

(c)               
any representation or warranty made or deemed made by or on behalf of
the Borrower or any Subsidiary in or in connection with any Loan Document or
any amendment or modification hereof or waiver thereunder, or in any report,
certificate, financial statement or other document furnished pursuant to or in
connection with any Loan Document or any amendment or modification hereof or
waiver thereunder, shall prove to have been incorrect in any material respect
when made or deemed made;(d)               
the Borrower shall fail to observe or perform any covenant, condition or
agreement contained in Section 6.3, 6.11 or 6.12 or in Article
7, 

(e)               
the Borrower shall fail to observe or perform any covenant, condition or
agreement contained in any Loan Document to which it is a party (other than
those specified in clause (a), (b) or (d) of this Article), and such failure
shall continue unremedied for a period of 30 days after the Borrower shall have
obtained knowledge thereof;-59-

(f)                
the Borrower or any Restricted Subsidiary shall fail to make any payment
(whether of principal, interest or otherwise and regardless of amount) in
respect of any Material Obligations when and as the same shall become due and
payable (after giving effect to any applicable grace period);
 (g)               
any event or condition occurs that results in any Material Obligations
becoming due prior to their scheduled maturity or payment date, or that enables
or permits (with or without the giving of notice, the lapse of time or both)
the holder or holders of any Material Obligations or any trustee or agent on
its or their behalf to cause any Material Obligations to become due prior to
their scheduled maturity or payment date or to require the prepayment,
repurchase, redemption or defeasance thereof prior to their scheduled maturity or
payment date (in each case after giving effect to any applicable cure period),
provided
that this clause (g) shall not apply to (i) secured Indebtedness that becomes
due solely as a result of the voluntary sale or transfer of the property or
assets securing such Indebtedness or (ii) intercompany indebtedness;

(h)               
the Borrower or any of the Restricted Subsidiaries shall (i) suspend or
discontinue its business, (ii) make an assignment for the benefit of creditors,
(iii) generally not pay its debts as such debts become due, (iv) admit in
writing its inability to pay its debts as they become due, (v) file a voluntary
petition in bankruptcy, (vi) become insolvent (however such insolvency shall be
evidenced), (vii) file any petition or answer seeking for itself any reorganization,
arrangement, composition, readjustment of debt, liquidation or dissolution or
similar relief under any present or future statute, law or regulation of any
jurisdiction, (viii) petition or apply to any tribunal for any receiver,
custodian or any trustee for any substantial part of its property, (ix) be the
subject of any such proceeding filed against it which remains undismissed for a
period of 45 days, (x) file any answer admitting or not contesting the material
allegations of any such petition filed against it or any order, judgment or
decree approving such petition in any such proceeding, (xi) seek, approve,
consent to, or acquiesce in any such proceeding, or in the appointment of any
trustee, receiver, sequestrator, custodian, liquidator, or fiscal agent for it,
or any substantial part of its property, or an order is entered appointing any
such trustee, receiver, custodian, liquidator or fiscal agent and such order
remains in effect for 45 days, or (xii) take any formal action for the purpose
of effecting any of the foregoing or looking to the liquidation or dissolution
of the Borrower or any of the Restricted Subsidiaries; or
(i)                 
an order for relief is entered under the United States bankruptcy laws
or any other decree or order is entered by a court having jurisdiction (i)
adjudging the Borrower or any of the Restricted Subsidiaries bankrupt or
insolvent, (ii) approving as properly filed a petition seeking reorganization,
liquidation, arrangement, adjustment or composition of or in respect of Borrower
or any of the Restricted Subsidiaries under the United States bankruptcy laws
or any other applicable Federal or state law, (iii) appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator (or other similar
official) of the Borrower or any of the Restricted Subsidiaries or of any
substantial part of the property thereof, or (iv) ordering the winding up or
liquidation of the affairs of the Borrower or any of the Restricted
Subsidiaries, and any such decree or order continues unstayed and in effect for
a period of 45 days; or

(j)                 
one or more judgments or decrees against the Borrower or any of the
Restricted Subsidiaries or any combination thereof aggregating in excess of
$10,000,000, which judgment or decree (i) shall not be fully covered by
insurance after taking into account any applicable deductibles and (ii) shall
remain unpaid, unstayed on appeal, undischarged, unbonded or undismissed for a
period of at least 30 days.-60-

(k)               
any Loan Document shall cease, for any reason, to be in full force and
effect or the Borrower shall so assert in writing or shall disavow any of its
obligations thereunder; or(l)                 
an ERISA Event shall have occurred that, in the opinion of the Required
Lenders, when taken together with all other ERISA Events that have occurred,
could reasonably be expected to result in a Material Adverse Effect; or

(m)             
any authorization or approval or other action by any Governmental
Authority required for the execution, delivery or performance of any Loan
Document shall be terminated, revoked or rescinded or shall otherwise no longer
be in full force and effect;(n)               
a Change in Control shall occur or a change in control, fundamental
change or any similar circumstance which, under the Indenture or the Utility
Indenture (including any supplemental indentures thereto but in each case only
to the extent that it is in full force and effect on the relevant date) results
in an obligation of the Borrower or the Utility to prepay, purchase, offer to
purchase, redeem or defease in excess of $5,000,000 of Indebtedness thereunder.

then, and in every such event (other than an event
described in clause (h) or (i) of this Article), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Borrower, take either
or both of the following actions (whether before or after the Closing Date), at
the same or different times: (i) terminate the Commitments, and thereupon the
Commitments shall terminate immediately and (ii) declare the Loans then
outstanding to be due and payable in whole (or in part, in which case any
principal not so declared to be due and payable may thereafter be declared to
be due and payable), and thereupon the principal of the Loans so declared to be
due and payable, together with accrued interest thereon and all fees and other
obligations of the Borrower accrued under the Loan Documents, shall become due
and payable immediately, without presentment, demand, protest or other notice
of any kind, all of which are hereby waived by the Borrower; and in case of any
event described in clause (h) or (i) of this Article, the Commitments shall
automatically terminate (whether  before or after the Closing Date) and the
principal of the Loans then outstanding, together with accrued interest thereon
and all fees and other obligations of the Borrower accrued under the Loan
Documents, shall automatically become due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower. 

Article
9.

THE
ADMINISTRATIVE AGENT

Each Credit Party
hereby irrevocably appoints the Administrative Agent as its agent and
authorizes the Administrative Agent to take such actions on its behalf and to
exercise such powers as are delegated to the Administrative Agent by the terms
hereof, together with such actions and powers as are reasonably incidental
thereto.

The Person serving as
the Administrative Agent hereunder shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as though it
were not the Administrative Agent, and such Person and its Affiliates may
accept deposits from, lend money to and generally engage in any kind of
business with the Borrower or any Restricted Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.

-61-

The Administrative
Agent shall not have any duties or obligations except those expressly set forth
herein. Without limiting the generality of the foregoing, (i) the Administrative Agent shall not be subject to any fiduciary or other implied
duties, regardless of whether a Default has occurred and is continuing, (ii) the Administrative Agent shall not have any duty to take any discretionary action or
exercise any discretionary powers, except discretionary rights and powers
expressly contemplated by the Loan Documents that the Administrative Agent is
required to exercise in writing by the Required Lenders (or such other number
or percentage of the Credit Parties as shall be necessary under the
circumstances as provided in Section 10.2), and (iii) except as expressly set forth herein, the Administrative Agent shall not have any duty to
disclose, and shall not be liable for the failure to disclose, any information
relating to the Borrower or any of the Subsidiaries that is communicated to or
obtained by the Person serving as Administrative Agent or any of its Affiliates
in any capacity. The Administrative Agent shall not be liable for any action
taken or not taken by it with the consent or at the request of the Required
Lenders (or such other number or percentage of the Credit Parties as shall be
necessary under the circumstances as provided in Section 10.2) or in the
absence of its own gross negligence or willful misconduct. The Administrative
Agent shall be deemed not to have knowledge of any Default unless and until
written notice thereof is given to the Administrative Agent by the Borrower or
a Credit Party (and, promptly after its receipt of any such notice, it shall
give each Credit Party and the Borrower notice thereof), and the Administrative
Agent shall not be responsible for or have any duty to ascertain or inquire into
(a) any statement, warranty or representation made in or in connection with any
Loan Document, (b) the contents of any certificate, report or other document
delivered thereunder or in connection therewith, (c) the performance or observance of any of the covenants, agreements or other terms or conditions set forth
therein, (d) the validity, enforceability, effectiveness or genuineness thereof
or any other agreement, instrument or other document or (e) the satisfaction of any condition set forth in
Article 5 or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the
Administrative Agent.

The Administrative
Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument,
document or other writing believed by it to be genuine and to have been signed
or sent by the proper Person. The Administrative Agent also may rely upon any
statement made to it orally or by telephone and believed by it to be made by
the proper Person, and shall not incur any liability for relying thereon. The
Administrative Agent may consult with legal counsel (who may be counsel for the
Borrower), independent accountants and other experts selected by it, and shall
not be liable for any action taken or not taken by it in accordance with the
advice of any such counsel, accountants or experts.

The Administrative
Agent may perform any and all its duties and exercise its rights and powers by
or through any one or more sub agents appointed by the Administrative Agent, provided
that no such delegation shall serve as a release of the Administrative Agent or
waiver by the Borrower of any rights hereunder. The Administrative Agent and
any such sub agent may perform any and all its duties and exercise its rights
and powers through their respective Related Parties. The exculpatory provisions
of the preceding paragraphs shall apply to any such sub agent and to the
Related Parties of the Administrative Agent and any such sub agent, and shall
apply to their respective activities in connection with the syndication of the
credit facilities provided for herein as well as activities as Administrative
Agent.

Subject to the
appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying
the Credit Parties and the Borrower. Upon any such resignation, the Required
Lenders shall have the right, with the consent of the Borrower (such consent
not to be unreasonably withheld and not to be required during the existence of
an Event of Default), to appoint a successor, which successor Administrative
Agent shall 

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be a commercial bank organized under the laws of the United States
or any State thereof and having a combined capital, surplus, and undivided
profits of at least $100,000,000.  If no successor shall have been so appointed
by the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Administrative Agent gives notice of its resignation, then
the retiring Administrative Agent may, on behalf of the Credit Parties, appoint
a successor Administrative Agent which shall be a bank with an office in New
York, New York, or an Affiliate of any such bank. Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor
shall 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 hereunder. The fees
payable by the Borrower to a successor Administrative Agent shall be the same
as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor. After the Administrative Agent's resignation
hereunder, the provisions of this Article and Section 10.3 shall
continue in effect for the benefit of such retiring Administrative Agent, its
sub agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while it was acting as Administrative
Agent.

Each Credit Party
acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Credit Party and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Credit Agreement. Each Credit Party also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Credit Party and based on such documents and
information as it shall from time to time deem appropriate, continue to make
its own decisions in taking or not taking action under or based upon any Loan
Document, any related agreement or any document furnished thereunder.

Notwithstanding
anything in any Loan Document to the contrary, no Agent acting in such capacity
other than the Administrative Agent shall have any duty or obligation under the
Loan Documents.

Article
10.

MISCELLANEOUS

Section 10.1           
Notices. 
Except in the case of notices and other communications
expressly permitted to be given by telephone, all notices and other
communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed by certified or registered mail or
sent by facsimile, as follows:

(a)               
if to the Borrower, to it at 2030 Donahue Ferry Road, Pineville, LA
71360 5226; Attention: Michael Sawrie (Telephone: (318) 484‐7589;
Facsimile: (318) 484‐7697), website www.cleco.com;
 (b)               
if to the Administrative Agent, or BNY as Issuing Bank, to it at Agency
Funding Administration, One Wall Street, 18th Floor, New York, New York 10286,
Attention of: Sandra Morgan, Agency Function Administration, 18th Floor,
(Telephone No. (212) 635‐4692); Facsimile No. (212) 635‐6365
or 6366 or 6367, with a copy to The Bank of New York, at Energy 

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Industries
Division, One Wall Street, 19th Floor, New York, New York 10286, Attention of:
Cynthia Howells (Telephone No. (212) 635‐7889; Facsimile No.
(212) 635‐7924); and(c)               
if to any other Credit Party, to it at its address (or facsimile number)
set forth in its Administrative Questionnaire.

Any party hereto may change its address or facsimile
number for notices and other communications hereunder by notice to the other
parties hereto. All notices and other communications given to any party hereto
in accordance with the provisions of this Credit Agreement shall be deemed to
have been given on the date of receipt.

Section 10.2           
Waivers; Amendments(a)               
No failure or delay by any Credit Party in exercising any right or power
under any Loan Document shall operate as a waiver thereof, nor shall any single
or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The
rights and remedies of the Credit Parties under the Loan Documents are
cumulative and are not exclusive of any rights or remedies that they would
otherwise have. No waiver of any provision of any Loan Document or consent to
any departure by the Borrower therefrom shall in any event be effective unless
the same shall be permitted by paragraph (b) of this Section, and then such
waiver or consent shall be effective only in the specific instance and for the
purpose for which given. Without limiting the generality of the foregoing, the
making of a Loan and/or the issuance, amendment, extension or renewal of a
Letter of Credit shall not be construed as a waiver of any Default, regardless
of whether any Credit Party may have had notice or knowledge of such Default at
the time.

(b)               
Neither any Loan Document nor any provision thereof may be waived,
amended or modified except pursuant to an agreement or agreements in writing
entered into by the Borrower and the Required Lenders or by the Borrower and
the Administrative Agent with the consent of the Required Lenders, provided
that no such agreement shall (i) increase the Commitment of any Lender
without the written consent of such Lender or increase the Letter of Credit
Commitment without the consent of the Issuing Bank, (ii) reduce the principal amount of any Loan or any reimbursement obligation with respect to a LC Disbursement,
or reduce the rate of any interest (other than under Section 3.1(b)), or
reduce any fees, payable under the Loan Documents, without the written consent
of each Credit Party affected thereby, (iii) postpone the date of payment at stated maturity of any Loan or the date of payment of any reimbursement
obligation with respect to an LC Disbursement, any interest or any fees payable
under the Loan Documents, or reduce the amount of, waive or excuse any such
payment, or postpone the stated termination or expiration of the Commitments
without the written consent of each Credit Party affected thereby, (iv) change any provision hereof in a manner that would alter the pro rata sharing of
payments required by Section 2.9(b) or the pro rata reduction of
Commitments required by Section 2.5(c), without the written consent of
each Credit Party affected thereby, and (v) change any of the provisions of this Section or the definition of the term "Required Lenders" or any other
provision hereof specifying the number or percentage of Lenders required to
waive, amend or modify any rights hereunder or make any determination or grant
any consent hereunder, or change the currency in which Loans are to be made,
Letters of Credit are to be issued or payment under the Loan Documents is to be
made, or add additional borrowers, without the written consent of each Lender,
and provided further that no such agreement shall amend, modify
or otherwise affect the rights or duties of the Administrative Agent or the
Issuing Bank hereunder without the prior written consent of the Administrative
Agent or the Issuing Bank , as applicable.-64-

Section 10.3           
Expenses; Indemnity; Damage Waiver(a)               
The Borrower shall pay (i) all reasonable out‐of‐pocket
costs and expenses incurred by the Administrative Agent and its Affiliates,
including the reasonable fees, charges and disbursements of counsel for the
Administrative Agent, in connection with the syndication of the credit
facilities provided for herein, the preparation and administration of each Loan
Document or any amendments, modifications or waivers of the provisions thereof
(whether or not the transactions contemplated thereby shall be consummated), (ii) all reasonable out‐of‐pocket costs and expenses incurred by the Issuing
Bank in connection with the issuance, amendment, renewal or extension of any
Letter of Credit or any demand for payment thereunder and (iii) all reasonable
out‐of‐pocket costs and expenses incurred by any Credit Party,
including the reasonable fees, charges and disbursements of any counsel for any
Credit Party and any consultant or expert witness fees and expenses, in
connection with the enforcement or protection of its rights in connection with
the Loan Documents, including its rights under this Section, or in connection
with the Loans made or Letters of Credit issued hereunder, including all such
reasonable out‐of‐pocket costs and expenses incurred during any
workout, restructuring or negotiations in respect of such Loans or Letters of
Credit.

(b)               
The Borrower shall indemnify each Credit Party and each Related Party
thereof (each such Person being called an "Indemnitee") against, and
hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including the reasonable fees, charges and
disbursements of any counsel for any Indemnitee, incurred by or asserted
against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of any Loan Document or any agreement or instrument
contemplated thereby, the performance by the parties to the Loan Documents of
their respective obligations thereunder or the consummation of the Transactions
or any other transactions contemplated thereby, (ii) any Loan or Letter of Credit or the use of the proceeds thereof including any refusal of the Issuing Bank
to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms
of such Letter of Credit, (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by  the Borrower
or any of the Subsidiaries, or any Environmental Liability related in any way
to the Borrower or any of the Subsidiaries or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory and regardless
of whether any Indemnitee is a party thereto, provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses are determined by a
court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee or
arising solely from claims between or among one or more Indemnitees 
 (c)               
To the extent that the Borrower fails to pay any amount required to be
paid by it to the Administrative Agent or the Issuing Bank under paragraph (a)
or (b) of this Section, each Lender severally agrees to pay to the
Administrative Agent or the Issuing Bank, as applicable, an amount equal to the
product of such unpaid amount multiplied by a fraction, the numerator of
which is the sum of such Lender's unused Commitment plus the outstanding
principal balance of such Lender's Loans and such Lender's LC Exposure and the
denominator of which is the sum of the unused Commitments plus the
outstanding principal balance of all Lenders Loans and the LC Exposure of all
Lenders (in each case determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought or, in the event that no
Lender shall have any unused Commitments, outstanding Loans or LC Exposure at
such time, as of the last time at which any Lender had any unused Commitments,
outstanding Loans or LC Exposure), provided that the unreimbursed
expense or 

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indemnified loss, claim, damage, liability or related expense, as
applicable, was incurred by or asserted against the Administrative Agent or the
Issuing Bank, as applicable, in its capacity as such.(d)               
To the extent permitted by applicable law, the Borrower shall not
assert, and hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct and actual damages) arising out of, in connection with, or as a
result of, any Loan Document or any agreement, instrument or other document
contemplated thereby, the Transactions or any Loan or any Letter of Credit or
the use of the proceeds thereof.

(e)               
All amounts due under this Section shall be payable promptly but in no
event later than ten days after written demand therefor.
Section 10.4           
Successors and Assigns

(a)               
The provisions of the Loan Documents shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that the Borrower may not assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of
each Credit Party (and any attempted assignment or transfer by the Borrower
without such consent shall be null and void). Nothing in the Loan Documents,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby
and, to the extent expressly contemplated hereby, the Related Parties of each
Credit Party) any legal or equitable right, remedy or claim under or by reason
of any Loan Document.(b)               
Any Lender may assign all or a portion of its rights and obligations
under the Loan Documents (including all or a portion of its Commitment or
obligations in respect of its LC Exposure, and the applicable Loans at the time
owing to it) to an Eligible Assignee, provided that (i) except in the case of an assignment to a Lender or an Affiliate or an Approved Fund
of a Lender, each of the Borrower, the Administrative Agent the Issuing Bank
must give its prior written consent to such assignment (which consent shall not
be unreasonably withheld or delayed)), (ii) except in the case of an assignment to a Lender or an Affiliate or an Approved Fund of a Lender or an
assignment of the entire remaining amount of the assigning Lender's Commitment,
and the applicable Loans at the time owing to it, the aggregate amount of the
Commitment, of the assigning Lender subject to each such assignment (determined
as of the date the Assignment and Acceptance with respect to such assignment is
delivered to the Administrative Agent) shall not be less than $5,000,000 unless
the Borrower and the Administrative Agent otherwise consent, (iii) no assignments to the Borrower or any of its Affiliates shall be permitted and any
attempted assignment or transfer to the Borrower or any of its Affiliates shall
be null and void), (iv) the parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Acceptance together with,
unless otherwise agreed by the Administrative Agent, a processing and
recordation fee of $3,500, and (v) the assignee, if it shall not be a Lender,
shall deliver to the Administrative Agent an Administrative Questionnaire, and
provided further that any consent of the Borrower otherwise required under this
paragraph shall not be required if a Default has occurred and is continuing. 
Subject to acceptance and recording thereof pursuant to paragraph (d) of this
Section, from and after the effective date specified in each Assignment and
Acceptance, the assignee thereunder shall be a party hereto and, to the extent
of the interest assigned by such Assignment and Acceptance, have the rights and
obligations of a Lender under the Loan Documents, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Acceptance, be released from its obligations under the Loan Documents (and, in
the case of an Assignment and Acceptance covering all of the assigning Lender's
rights and obligations 

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under the Loan Documents, such Lender shall cease to be
a party hereto but shall continue to be entitled to the benefits of Sections
3.5, 3.6, 3.7 and 10.3). Any assignment or transfer by
a Lender of rights or obligations under the Loan Documents that does not comply
with this paragraph shall be treated for purposes of the Loan Documents as a
sale by such Lender of a participation in such rights and obligations in
accordance with paragraph (e) of this Section.(c)               
The Administrative Agent, acting for this purpose as an agent of the
Borrower, shall maintain a copy of each Assignment and Acceptance delivered to
it and a register for the recordation of the names and addresses of the
Lenders, and the Commitments of, and principal amount of the Loans owing to,
each Lender pursuant to the terms hereof from time to time (the "Register").
The entries in the Register shall be conclusive absent clearly demonstrable
error, and the Borrower and each Credit Party may treat each Person whose name
is recorded in the Register pursuant to the terms hereof as a Lender hereunder
for all purposes of this Credit Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Borrower and
any Credit Party, at any reasonable time and from time to time upon reasonable
prior notice.

(d)               
Upon its receipt of a duly completed Assignment and Acceptance executed
by an assigning Lender and an assignee, the assignee's completed Administrative
Questionnaire (unless the assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b) of this Section and
any written consent to such assignment required by paragraph (b) of this
Section, the Administrative Agent shall accept such Assignment and Acceptance
and record the information contained therein in the Register. No assignment
shall be effective for purposes of this Credit Agreement unless it has been
recorded in the Register as provided in this paragraph.(e)               
Any Lender may, without the consent of the Borrower or any Credit Party,
sell participations to one or more banks or other entities (each such bank or
other entity being called a "Participant") in all or a portion of such
Lender's rights and obligations under the Loan Documents (including all or a
portion of its Commitment, LC Exposure and outstanding Loans owing to it), provided
that (i) such Lender's obligations under the Loan Documents shall remain
unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations, (iii) the Borrower and the Credit Parties shall continue to deal solely and directly with such Lender
in connection with such Lender's rights and obligations under the Loan
Documents and (iv) no participations to the Borrower or any of its Affiliates
shall be permitted (and any attempted participation to the Borrower or any of
its Affiliates shall be null and void). Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall
retain the sole right to enforce the Loan Documents and to approve any
amendment, modification or waiver of any provision of any Loan Documents, provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, modification or
waiver described in the first proviso to Section 10.2(b) that affects
such Participant. Subject to paragraph (f) of this Section, the Borrower agrees
that each Participant shall be entitled to the benefits of Sections 3.5,
3.6 and 3.7 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this Section.
To the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 10.8 as though it were a Lender, provided
that such Participant agrees to be subject to Section 2.9(c) as though
it were a Lender.

(f)                
A Participant shall not be entitled to receive any greater payment under
Sections 3.5 or 3.7 than the Lender that sold the participation
to such Participant would have been entitled to receive with respect to the
interest in the Loan Documents subject to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the Borrower's prior written consent. A Participant that would be a
Foreign Lender if it were a Lender shall not be 
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entitled to the benefits of Section
3.7 unless the Borrower is notified of the participation sold to such
Participant and such Participant agrees, for the benefit of the Borrower, to
comply with Section 3.7(c) as though it were a Lender.
(g)               
Any Lender may at any time pledge or assign a security interest in all
or any portion of its rights under the Loan Documents to secure obligations of
such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest, provided that no such pledge or
assignment of a security interest shall release a Lender from any of its
obligations under the Loan Documents or substitute any such pledgee or assignee
for such Lender as a party hereto.

(h)               
Notwithstanding anything to the contrary contained herein, any Lender (a
"Granting Lender") may grant to an Eligible SPC, identified as such in
writing to the Administrative Agent and the Borrower, the option to fund all or
any part of any Loan that such Granting Lender would otherwise be obligated to
fund pursuant to this Credit Agreement, provided that (i) such designation shall not be effective unless the Borrower consents thereto (which
consent shall not be unreasonably withheld), (ii) nothing herein shall constitute a commitment by any Eligible SPC to fund any Loan, and (iii) if an Eligible SPC elects not to exercise such option or otherwise fails to fund
all or any part of such Loan, the Granting Lender shall be obligated to fund
such Loan pursuant to the terms hereof.  The funding of a Loan by an Eligible
SPC hereunder shall utilize the Commitment of the Granting Lender to the same
extent, and as if, such Loan were funded by such Granting Lender.  As to any
Loans or portion thereof made by it, each Eligible SPC shall have all the
rights that a Lender making such Loans or portion thereof would have had under this
Credit Agreement and otherwise, provided that (x) its voting rights
under this Credit Agreement shall be exercised solely by its Granting Lender
(y) its Granting Lender shall remain solely responsible to the other parties
hereto for the performance of such Granting Lender's obligations under this
Credit Agreement, including its obligations in respect of the Loans or portion
thereof made by it and (z) the Borrower shall continue to deal solely and
directly with such Granting Lender in connection with the Granting Lender's
rights and obligations under the Loan Documents.  Each Granting Lender shall
act as administrative agent for its Eligible SPC and give and receive notices
and other communications on its behalf.  Any payments for the account of any
Eligible SPC shall be paid to its Granting Lender as administrative agent for
such Eligible SPC and neither the Borrower nor the Administrative Agent shall
be responsible for any Granting Lender's application of such payments.  Each
party hereto hereby agrees that no Eligible SPC shall be liable for any
indemnity or payment under this Credit Agreement for which a Lender would
otherwise be liable for so long as, and to the extent, the Granting Lender
provides such indemnity or makes such payment.  Notwithstanding anything to the
contrary contained in this Credit Agreement, any Eligible SPC may (i) at any
time, subject to payment of the processing and recordation fee referred to in Section
10.4(b), assign all or a portion of its interests in any Loans to its
Granting Lender (but nothing contained herein shall be construed in derogation
of the obligation of the Granting Lender to make Loans hereunder) or to any Eligible
Assignee consented to by the Borrower and the Administrative Agent (which
consents shall not be unreasonably withheld or delayed or, in the case of the
Borrower's consent, shall not be required during the continuance of an Event of
Default) providing liquidity and/or credit support to or for the account of
such Eligible SPC to support the funding or maintenance of Loans, and (ii)
disclose on a confidential basis any non-public information relating to its
funding of Loans to any rating agency, commercial paper dealer or provider of any
surety or guarantee or credit or liquidity enhancements  to such Eligible SPC. 
This Section may not be amended without the prior written consent of each
Granting Lender, all or any part of whose Loans is being funded by an Eligible
SPC at the time of such amendment.-68-

Section 10.5           
SurvivalAll covenants, agreements, representations and
warranties made by the Borrower herein and in the certificates or other
instruments prepared or delivered in connection with or pursuant to this Credit
Agreement or any other Loan Document shall be considered to have been relied
upon by the other parties hereto and shall survive the execution and delivery
of any Loan Document and the making of any Loans and the issuance of any Letter
of Credit, regardless of any investigation made by any such other party or on
its behalf and notwithstanding that any Credit Party may have had notice or
knowledge of any Default or incorrect representation or warranty at the time
any credit is extended hereunder, and shall continue in full force and effect as
long as the principal of or any accrued interest on any Loan or any LC
Disbursement or any fee or any other amount payable under the Loan Documents is
outstanding and unpaid or any Letter of Credit is outstanding and so long as
the Commitments have not expired or terminated. The provisions of Sections
3.5, 3.6, 3.7, 10.3, 10.9, 10.10 and Article
9 shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the
Loans and the LC Disbursements, the expiration or termination of the Letters of
Credit and the termination of the Commitments or the termination of this Credit
Agreement or any provision hereof.

Section 10.6           
Counterparts; Integration; EffectivenessThis Credit Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original, but all of which, when taken together,
shall constitute but one contract. This Credit Agreement and any separate
letter agreements with respect to fees payable to any Credit Party or the
syndication of the credit facility established hereunder constitute the entire
contract among the parties relating to the subject matter hereof and supersede
any and all previous agreements and understandings, oral or written, relating
to the subject matter hereof. Except as provided in Section 5.1, this
Credit Agreement shall become effective as of the date set forth in the
preamble to this Credit Agreement when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received
counterparts hereof which, when taken together, bear the signatures of each of
the other parties and thereafter shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns. Delivery of
an executed counterpart of this Credit Agreement by facsimile transmission
shall be effective as delivery of a manually executed counterpart of this
Credit Agreement.

Section 10.7           
SeverabilityIn the event any one or more of the provisions
contained in this Credit Agreement should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired thereby (it being understood that the invalidity of a particular
provision in a particular jurisdiction shall not in and of itself affect the
validity of such provision in any other jurisdiction).  The parties shall
endeavor in good faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

Section 10.8           
Right of Set‐offIf an Event of Default shall have occurred and
be continuing, and the acceleration of the obligations owing in connection with
the Loan Documents, or at any time upon the occurrence and 

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during the
continuance of an Event of Default under clause (a) of Article 8, each
of the Lenders and their respective Affiliates is hereby authorized at any time
and from time to time, to the fullest extent permitted by applicable law, to
set‐off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other obligations at any
time owing by it to or for the credit or the account of the Borrower against
any of and all the obligations of the Borrower now or hereafter existing under
this Credit Agreement and the other Loan Documents held by it, irrespective of
whether or not it shall have made any demand therefor and although such
obligations may be unmatured.  The rights of each of the Lenders and their
respective Affiliates under this Section are in addition to other rights and
remedies (including other rights of set‐off) that it may have.  Each
Lender agrees promptly to notify the Borrower and the Administrative Agent
after any such set off and application made by such Lender, provided
that the failure to give such notice shall not affect the validity of such set
off and application.

Section 10.9           
Governing Law; Jurisdiction; Consent to Service of Process(a)               
This Credit Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York.

(b)               
The Borrower hereby irrevocably and unconditionally submits, for itself
and its property, to the nonexclusive jurisdiction of any New York State court
or Federal court of the United States of America sitting in New York City, and
any appellate court from any thereof, in any action or proceeding arising out
of or relating to this Credit Agreement or the other Loan Documents, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that, to the extent permitted by
applicable law, all claims in respect of any such action or proceeding may be
heard and determined in such New York State court or, to the extent permitted
by applicable law, in such Federal court. Each of the parties hereto agrees
that a final judgment in any such 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. Nothing in this Credit Agreement shall affect any right
that the Administrative Agent or any other Credit Party may otherwise have to
bring any action or proceeding relating to this Credit Agreement or the other
Loan Documents against the Borrower, or any of its property, in the courts of
any jurisdiction.(c)               
The Borrower hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection that it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Credit Agreement or the other Loan Documents
in any court referred to in paragraph (b) of this Section. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by applicable
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

(d)               
The Borrower irrevocably consents to service of process in the manner
provided for notices in Section 10.1. Nothing in this Credit Agreement
will affect the right of any party to this Credit Agreement to serve process in
any other manner permitted by law.Section 10.10    
WAIVER
OF JURY TRIAL

EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS CREDIT AGREEMENT OR ANY OF THE 

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OTHER LOAN DOCUMENTS.
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS TO WHICH IT IS A
PARTY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

Section 10.11        
HeadingsArticle and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of
this Credit Agreement and shall not affect the construction of, or be taken
into consideration in interpreting, this Credit Agreement.

Section 10.12        
Interest Rate LimitationNotwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan or LC
Disbursement, together with all fees, charges and other amounts that are
treated as interest thereon under applicable law (collectively the "charges"),
shall exceed the maximum lawful rate (the "maximum rate") that may be
contracted for, charged, taken, received or reserved by the Lender holding an
interest in such Loan or LC Disbursement in accordance with applicable law, the
rate of interest payable in respect of such Loan or LC Disbursement hereunder,
together with all of the charges payable in respect thereof, shall be limited
to the maximum rate and, to the extent lawful, the interest and the charges
that would have been payable in respect of such Loan or LC Disbursement but
were not payable as a result of the operation of this Section shall be
cumulated, and the interest and the charges payable to such Lender in respect
of other Loans or LC Disbursements or periods shall be increased (but not above
the maximum rate therefor) until such cumulated amount, together with interest
thereon at the Federal Funds Effective Rate to the date of repayment, shall
have been received by such Lender.

Section 10.13        
AdvertisementThe Borrower hereby authorizes each of BNY to
publish the name of the Borrower and the amount of the financing evidenced
hereby in any "tombstone" or comparable advertisement which BNY elects to
publish.  In addition, the Borrower agrees that BNY may provide lending
industry trade organizations with information necessary and customary for
inclusion in league table measurements after the Closing Date.

Section 10.14        
USA Patriot Act NoticeEach Lender that is subject to the Patriot Act
(as hereinafter defined) and the Administrative Agent (for itself and not on
behalf of any Lender) hereby notifies the Borrower that pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the "Patriot Act"), it is required to obtain,
verify and record information that identifies the Borrower, which information
includes the name and address of the Borrower and other information that will
allow such Lender or the Administrative Agent, as applicable, to identify the
Borrower in accordance with the Patriot Act.

-71-

Section 10.15        
Treatment of Certain InformationEach Credit Party agrees to use reasonable
precautions to keep confidential, in accordance with its customary procedures
for handling confidential information of the same nature, all non‐public
information supplied by the Borrower or any Subsidiary pursuant to this Credit
Agreement which (i) is clearly identified by such Person as being confidential
at the time the same is delivered to such Credit Party or (ii) constitutes any
financial statement, financial projections or forecasts, budget, Compliance
Certificate, audit report, management letter or accountants' certification
delivered hereunder ("Information"), provided that nothing herein shall
limit the disclosure of any information (a) to any of its respective Related
Parties that needs to know such information, (b) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, or
requested by any bank regulatory authority, (c) on a confidential basis, to
prospective lenders or participants or their counsel, (d) to auditors,
accountants, consultants and advisors, and any analogous counterpart thereof,
(e) to any other Credit Party, (f) in connection with any litigation to which
any one or more of the Credit Parties is a party, (g) to the extent such
information (A) becomes publicly available other than as a result of a breach
of this Credit Agreement, (B) becomes available to any of the Credit Parties on
a non‐confidential basis from a source other than the Borrower or any of
its Affiliates or (C) was available to the Credit Parties on a non‐confidential
basis prior to its disclosure to any of them by the Borrower or any of its
Affiliates; and (h) to the extent the Borrower shall have consented to such
disclosure in writing.

 [Signature pages follow]

-72-

CLECO
CORPORATION

CREDIT
AGREEMENT

 

 

 

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

  	
      CLECO CORPORATION

	
      
      By:   /s/
  Dilek Samil___________________________ 

	
      
      Name:   Dilek
  Samil

	
      
      Title:   Chief
  Financial Officer

CLECO
CORPORATION

CREDIT
AGREEMENT

 

 

 

  	
      THE BANK OF NEW YORK, individually, as
 Issuing Bank, and as Administrative Agent
      

	
      By: 
      /s/ Cynthia D. Howells______________________ 
      

	
      
      Name: Cynthia
  D. Howells

	
      
      Title: Vice
  President

CLECO
CORPORATION

CREDIT
AGREEMENT

 

 

 

  	
      JPMORGAN CHASE BANK, N.A., 

      individually, and as a
  Syndication Agent 

	
      By: 
      /s/ Robert W.
  Traband____________

	
      
      Name: Robert
  W. Traband

	
      
      Title: Vice
  President

CLECO
CORPORATION

CREDIT
AGREEMENT

 

 

 

  	
      WESTLB AG, NEW YORK BRANCH, 

      individually, and as a
  Syndication Agent 

	
      By: 
      /s/ James
  Brown________________

	
      
      Name: James
  Brown

	
      
      Title:
  Managing Director

	
      
	
      By: /s/ Seth McIntosh_______________

      
	
      
      Name: Seth 
  McIntosh

	
      
      Title: Manager

CLECO
CORPORATION

CREDIT
AGREEMENT

 

 

 

  	
      KEYBANK NATIONAL ASSOCIATION,
 individually, and as a Documentation Agent
      

	
      By: 
      /s/ Lawrence A.
  Mack______________

	
      
      Name: Lawrence
  A. Mack

	
      
      Title: Senior
  Vice President 

	
      
               Portfolio
  Management

CLECO
CORPORATION

CREDIT
AGREEMENT

 

 

 

  	
      UNION BANK OF CALIFORNIA, N.A., 

      individually, and as
  a Documentation Agent 

	
      By: 
      /s/ Efrain
  Soto____________________

	
      
      Name: Efrain
  Soto

	
      
      Title: Vice
  President

CLECO
CORPORATION

CREDIT
AGREEMENT

 

 

 

  	
      CALYON, NEW YORK BRANCH

	
      By: 
      /s/ Olivier Audemard_______________________ 

      
	
      
      Name: Olivier Audemard

	
      
      Title:
  Managing Director

	
      
	
      By: 
      /s/ Attila Coach___________________________ 

      
	
      
      Name: Attila
  Coach

	
      
      Title:
  Managing Director

CLECO
CORPORATION

CREDIT
AGREEMENT

 

 

 

  	
      
      COBANK, ACB

	
      
	
      By: /s/ Paul M. Podany________________________
      

	
      
      Name: Paul M.
  Podany

	
      
      Title:
  Assistant Vice President

CLECO
CORPORATION

CREDIT
AGREEMENT

 

 

 

  	
      COMERICA BANK

	
      By: 
      /s/ Gerald R. Finney, Jr._____________________ 
      

	
      
      Name: Gerald
  R. Finney, Jr.

	
      
      Title: Vice
  President

CLECO
CORPORATION

CREDIT
AGREEMENT

 

 

 

  	
      MIZUHO CORPORATE BANK, LTD.

      
	
      By: 
      /s/ Mark Gronich__________________________ 

      
	
      
      Name: Mark
  Gronich

	
      
      Title: Senior
  Vice President

	
      

CLECO
CORPORATION

CREDIT
AGREEMENT

 

 

 

  	
      SOCIETE GENERALE

	
      By: 
      /s/ Nigel Elvey____________________________ 

      
	
      
      Name: Nigel
  Elvey

	
      
      Title: Vice
  President

CLECO
CORPORATION

CREDIT
AGREEMENT

 

 

 

  	
      UFJ BANK LIMITED

	
      By: /s/ John T. Feeney_________________________
      

	
      
      Name: John T.
  Feeney

	
      
      Title: Vice
  President

CLECO
CORPORATION

CREDIT
AGREEMENT

 

 

 

  	
      BANK HAPOALIM B.M.

	
      By: /s/ Helen H. Gateson_______________________
      

	
      
      Name: Helen H.
  Gateson

	
      
      Title: Vice
  President

	
      
	
      By: /s/ Laura Anne Raffa_______________________
      

	
      
      Name: Laura
  Anne Raffa

	
      
      Title:
  Executive Vice President and Corporate Manager

CLECO
CORPORATION

CREDIT
AGREEMENT

 

 

 

  	
      
      CREDIT
  SUISSE FIRST BOSTON, acting 

      through its Cayman Islands
  Branch

       

       

	
      
      By: /s/
  Sarah Wu                                                          
      
Name: Sarah Wu

	
      
      Title:
  Director

	
       

	
      
      By: /s/
  Denise L. Alvarez                                             
      
Name: Denise L. Alvarez

	
      
      Title:
  Associate

CLECO
CORPORATION

CREDIT
AGREEMENT

 

 

  	
      
      GOLDMAN
  SACHS CREDIT PARTNERS 

      
      L.P.

	
      
      By: /s/
  William W. Archer                                            
      
Name: William W. Archer

	
      
      Title:
  Managing Director

CLECO
CORPORATION

CREDIT
AGREEMENT

 

 

 

  	
      HIBERNIA NATIONAL BANK

      
	
      
      By: /s/
  Kermit W. Pharris, Jr.                                        
      
Name: Kermit W. Pharris, Jr.

	
      
      Title:
  Vice President

CLECO
CORPORATION

CREDIT
AGREEMENT

 

 

 

  	
      WHITNEY NATIONAL BANK

      
	
      
      By: /s/
  Edgar W. Santa Cruz III                                    
      
Name: Edgar W. Santa Cruz III

	
      
      Title:
  Vice PresidentExhibit 10.2 Cleco Power 2005 Credit Agreement

EXHIBIT 10.2

CONFORMED COPY

	
    
    

	
    
	
    
    CREDIT
  AGREEMENT

dated as of April 25, 2005

among

CLECO POWER LLC,
as Borrower

    
The Lenders Party Hereto

JPMORGAN CHASE BANK, N.A. and WESTLB AG, NEW YORK BRANCH,
as Syndication Agents

    
KEYBANK NATIONAL ASSOCIATION and UNION BANK OF CALIFORNIA, N.A.,

    as Documentation Agents

and

THE BANK OF NEW YORK,
    
as Administrative Agent
___________________________

    BNY
  CAPITAL MARKETS, INC.
and 
WESTLB AG, NEW YORK BRANCH,
    
as Co‐Lead Arrangers

    BNY CAPITAL MARKETS, INC., 
as Book Runner

    
	
    
	
    Bryan
  Cave LLP
1290 Avenue of the Americas
New York, New York 10104

    

NY01DOCS\341102.1

TABLE OF CONTENTS

	
     	
    Page

 

	
    Article 1. DEFINITIONS
	
    

    1

 
	
    Section 1.1      Defined Terms

    	
    1
	
    Section 1.2      Classification
of Loans and Borrowings

    	
    16
	
    Section 1.3      Terms Generally

    	
    17
	
    Section 1.4      Accounting
Terms; GAAP

    	
    17
	
    Section 1.5     
    Rounding

    	
    17
	
    Article 2. THE CREDITS

    	
    

    18

 
	
    Section 2.1      Commitments

    	
    18
	
    Section 2.2      Loans and
Borrowings

    	
    18
	
    Section 2.3      Requests for
Borrowings

    	
    18
	
    Section 2.4      Funding of
Borrowings

    	
    19
	
    Section 2.5      Termination,
Reduction and Increase of Commitments

    	
    20
	
    Section 2.6      Repayment of
Loans; Evidence of Debt

    	
    21
	
    Section 2.7      Prepayment of Loans

    	
    22
	
    Section 2.8      Letters of
Credit

    	
    22
	
    Section 2.9      Payments
Generally; Pro Rata Treatment; Sharing of Set‐offs

    	
    26
	
    Article 3. INTEREST, FEES, YIELD PROTECTION, ETC

    	
    

    28

 
	
    Section 3.1      Interest

    	
    28
	
    Section 3.2      Interest
Elections Relating to Borrowings

    	
    28
	
    Section 3.3      Fees

    	
    29
	
    Section 3.4      Alternate Rate
of Interest

    	
    31
	
    Section 3.5      Increased
Costs; Illegality

    	
    31
	
    Section 3.6      Break Funding
Payments

    	
    33
	
    Section 3.7      Taxes

    	
    33
	
    Section 3.8      Mitigation Obligations

    	
    35
	
    Article 4. REPRESENTATIONS AND WARRANTIES

    	
    

    35

 
	
    Section 4.1      Organization;
Powers

    	
    36
	
    Section 4.2      Authorization;
Enforceability

    	
    36
	
    Section 4.3      Governmental
Approvals; No Conflicts

    	
    36
	
    Section 4.4      Financial
Condition; No Material Adverse Change

    	
    36
	
    Section 4.5      Properties

    	
    36
	
    Section 4.6      Litigation and
Environmental Matters

    	
    37
	
    Section 4.7      Compliance with
Laws and Agreements

    	
    38
	
    Section 4.8      Investment and
Holding Company Status

    	
    38
	
    Section 4.9      Taxes

    	
    38
	
    Section 4.10    ERISA

    	
    38
	
    Section 4.11    Disclosure

    	
    39
	
    Section 4.12    Subsidiaries

    	
    39
	
    Section 4.13    Federal Reserve
Regulations, etc

    	
    39
	
    Article 5. CONDITIONS

    	
    

    40

 
	
    Section 5.1      Closing Date

    	
    40
	
    Section 5.2      Each Credit
Event

    	
    41
	
    Article 6. AFFIRMATIVE COVENANTS

    	
    

    42

 
	
    Section 6.1      Financial
Statements and Other Information

    	
    42
	
    Section 6.2      Notices of
Material Events

    	
    43
	
    Section 6.3      Legal Existence

    	
    44

 

TABLE OF CONTENTS

	
     	
    Page

 
	
    Section 6.4      Taxes

    	
    44
	
    Section 6.5      Insurance

    	
    45
	
    Section 6.6      Payment of
Indebtedness and Performance of Obligations5
	
    45
	
    Section 6.7      Condition of
Property

    	
    45
	
    Section 6.8      Observance of
Legal Requirements

    	
    45
	
    Section 6.9      Inspection of
property; Books and Records; Discussions

    	
    45
	
    Section 6.10    Licenses,
Intellectual Property

    	
    46
	
    Section 6.11    Financial
Covenants

    	
    46
	
    Section 6.12    Use of Proceeds

    	
    46
	
    Article 7. NEGATIVE COVENANTS

    	
    

    46

 
	
    Section 7.1      Liens

    	
    47
	
    Section 7.2      Merger,
Consolidation, Purchase or Sale of Assets, Etc

    	
    48
	
    Section 7.3      Loans,
Advances, etc

    	
    50
	
    Section 7.4      Amendments,
etc. of Certain Agreements

    	
    50
	
    Article 8. EVENTS OF DEFAULT

    	
    

    50

 
	
    Article 9. THE ADMINISTRATIVE AGENT

    	
    

    53

 
	
    Article 10. MISCELLANEOUS

    	
    

    55

 
	
    Section 10.1    Notices

    	
    55
	
    Section 10.2    Waivers;
Amendments

    	
    55
	
    Section 10.3    Expenses;
    Indemnity; Damage Waiver

    	
    56
	
    Section 10.4    Successors and
Assigns

    	
    57
	
    Section 10.5    Survival

    	
    60
	
    Section 10.6    Counterparts;
Integration; Effectiveness

    	
    60
	
    Section 10.7    Severability

    	
    61
	
    Section 10.8    Right of Set‐off

    	
    61
	
    Section 10.9    Governing Law;
Jurisdiction; Consent to Service of Process
	
    61
	
    Section 10.10
    WAIVER OF JURY TRIAL

    	
    

    62

 
	
    Section 10.11   Headings

    	
    62
	
    Section 10.12   Interest Rate
Limitation

    	
    62
	
    Section 10.13   Advertisement

    	
    63
	
    Section 10.14   USA Patriot Act
Notice

    	
    63
	
    Section 10.15   Treatment of
Certain Information

    	
    63

(ii)

SCHEDULES:

	
    Schedule 1.1

    	
    List of Existing Letters of
  Credit

	
    Schedule 2.1

    	
    List of Commitments

    
	
    Schedule 4.6

    	
    Disclosed Matters

    
	
    Schedule 4.12

    	
    List of Subsidiaries

    
	
    Schedule 7.1

    	
    List of Existing Liens

    

EXHIBITS:

	
    Exhibit A

    	
    Form of Assignment and
  Acceptance

	
    Exhibit B

    	
    Form of Opinion of Counsel to the
  Borrower

	
    Exhibit C

    	
    Form of Credit Request

    
	
    Exhibit D

    	
    Form of Note

    
	
    Exhibit E

    	
    Form of Compliance Certificate

    
	
    Exhibit F

    	
    Form of Increase Supplement

    

(iii)

CREDIT AGREEMENT, dated as of April 25, 2005,
by and among CLECO POWER LLC, the Lenders party hereto, JPMORGAN CHASE BANK,
N.A. and WESTLB AG, NEW YORK BRANCH, as syndication agents hereunder, KEYBANK
NATIONAL ASSOCIATION and UNION BANK OF CALIFORNIA, N.A., as documentation
agents hereunder, and THE BANK OF NEW YORK, as Administrative Agent for the
Lenders hereunder.

The parties hereto agree as follows:

Article
1.

DEFINITIONS

Section 1.1               
Defined Terms

As used in this Credit Agreement, the following
terms have the meanings specified below:

"ABR", when used in reference to any
Loan or Borrowing, refers to whether such Loan, or the Loans comprising such
Borrowing, are bearing interest at a rate determined by reference to the
Alternate Base Rate.

"Accountants" means
PricewaterhouseCoopers, L.L.P. or other independent public accountants of
recognized national standing.

"Adjusted LIBO Rate" means, with respect
to any Eurodollar Borrowing for any Interest Period, an interest rate per annum
(rounded upwards, if necessary, to the next 1/100 of 1%) equal to (i) the LIBO Rate for such Interest Period
multiplied by (ii) the Statutory Reserve Rate.

"Administrative Agent" means BNY, in its
capacity as administrative agent for the Lenders hereunder.

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

"Affiliate" means, with respect to a
specified Person, another Person that directly, or indirectly through one or
more intermediaries, Controls or is Controlled by or is under common Control
with the Person specified.

"Agents" means, collectively, the
Administrative Agent, the Syndication Agents and the Documentation Agents.

 "Agreement Date" means the first date
appearing in this Credit Agreement.

"Alternate Base Rate" means, for any
day, a rate per annum equal to the greater of (i) the Prime Rate in effect on such day and (ii) the Federal Funds Effective Rate in effect on such day
plus
1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime
Rate or the Federal Funds Effective Rate shall be effective from and including
the effective date of such change in the Prime Rate or the Federal Funds
Effective Rate.

 

"Applicable Margin" means, at all times
from and after the Agreement Date and during the periods in which the
applicable Pricing Level set forth below is in effect: (i) with respect to Eurodollar Borrowings and the Letter of Credit participation fee payable under
Section
3.3(b)(i), the percentage set forth in the following table under the
heading "Eurodollar Margin and LC Fee",
and (ii) with respect to facility fees payable under Section 3.3(a), the
percentage set forth in the following table under the heading "Facility Fee":

	
    Pricing Level

    

	
    
    Eurodollar Margin 
and LC Fee

    	
    
    
Facility Fee

	
    Pricing Level I

    	
    0.400%

    	
    0.100%

    
	
    Pricing Level II

    	
    0.475%

    	
    0.125%

    
	
    Pricing Level III

    	
    0.550%

    	
    0.150%

    
	
    Pricing Level IV

    	
    0.675%

    	
    0.200%

    
	
    Pricing Level V

    	
    0.875%

    	
    0.250%

    
	
    Pricing Level VI
	
    0.950%

    	
    0.300%

    
	
    Pricing Level VII
	
    1.375%

    	
    0.375%

    

Changes in the Applicable Margin resulting from
a change in the Pricing Level shall become effective on the effective date of
any change in the Senior Debt Rating from S&P or Moody's.  Notwithstanding anything
in clause (a) of this definition to the contrary, in the event of a split in
the Senior Debt Rating from S&P and Moody's that would otherwise result in
the application of more than one Pricing Level (had the provisions regarding
the applicability of other Pricing Levels contained in the definitions thereof
not been given effect), then the Applicable Margin shall be determined as
follows: (i) in the event of a split in the Senior Debt Rating from S&P and
Moody's by one rating level, then the Applicable Margin shall be determined
using the Pricing Level within which the higher of the two rating categories
would otherwise fall, and (ii) in the event of a split in the Senior Debt
Rating from S&P and Moody's by more than one rating level, then the
Applicable Margin shall be determined using the Pricing Level within which the
next highest level above the lower of the two rating categories would otherwise
fall.

"Applicable Percentage" means, with
respect to any Lender, the percentage of the total Commitments represented by
such Lender's Commitment. If the Commitments have terminated or expired, the
Applicable Percentages shall be determined based upon the Commitments most recently
in effect, giving effect to any assignments.

"Approved Fund" means, with respect to
any Lender that is a fund that invests in commercial loans, any other fund that
invests in commercial loans and is managed or advised by the same investment
advisor as such Lender or by an Affiliate of such investment advisor.

 "Asset Sale" means any sale, transfer
or other disposition by the Borrower or any of the Subsidiaries to any Person
of any property (including any Equity Interests or other securities of another
Person) of the Borrower or any of the Subsidiaries, other than inventory or
accounts receivables or other receivables sold, transferred or otherwise
disposed of in the ordinary course of business, provided that,
notwithstanding anything in this definition to the contrary, for purposes of
the Loan Documents, the term "Asset Sale" shall not include the creation or
granting of any Lien other than a conditional sale or other title retention
arrangement.

"Assignment and Acceptance" means an
assignment and acceptance entered into by a Lender and an assignee (with the
consent of any party whose consent is required by Section 10.4), and

-2-

accepted by the Administrative Agent, substantially in the form of
Exhibit A
or in such other form as shall be acceptable to the Administrative Agent.

"Availability Period" means the period
from and including the Closing Date to but excluding the earlier of the
Maturity Date and, if different, the date of termination of the Commitments.

"BNY" means The Bank of New York.

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

"Borrower" means Cleco Power LLC, a
Louisiana limited liability company.

 "Borrower
Materials" has the meaning assigned to such term in Section 6.2.

"Borrowing" means Loans of the same Type
made, converted or continued on the same date and, in the case of Eurodollar
Loans, as to which a single Interest Period is in effect.

"Business Day" means any day that is not
a Saturday, Sunday or other day on which commercial banks in New York City are
authorized or required by law to remain closed, provided that, when used
in connection with a Eurodollar Loan, the term "Business Day" shall also
exclude any day on which banks are not open for dealings in dollar deposits in
the London interbank market.

"Capital Lease Obligations" means with
respect to any Person, obligations of such Person with respect to leases which,
in accordance with GAAP, are required to be capitalized on the financial
statements of such Person.

"Change in Control" means the occurrence
of any of the following: (i) the consummation of any transaction the result of
which is that any "person" or "group" (within the meaning of Section 13(d)(3)
of the Securities Exchange Act of 1934) becomes the "beneficial owner" (as such
term is defined in Rule 13d‐3 under the Securities Exchange Act of 1934)
of more than 50% of the total voting power in the aggregate of all classes of
the Voting Securities of the Parent then outstanding or (ii) the occupation of a majority of the seats (other than vacant seats) on the board of directors of
the Parent by Persons who were neither nominated by the board of directors of
the Parent nor appointed by directors so nominated.

"Change in Law" means (i) the adoption of any law, rule or regulation after the Agreement Date, (ii) any change in any law, rule or regulation or in the interpretation or application
thereof by any Governmental Authority after the Agreement Date or (iii) compliance by any Credit Party (or, for purposes of
Section 3.5(b), by any
lending office of such Credit Party or by such Credit Party's holding company,
if any) with any request, guideline or directive (whether or not having the
force of law) of any Governmental Authority made or issued after the Agreement
Date.

"Chase" means JPMorgan Chase Bank, N.A.

"CLECO Mortgage" means the Indenture of
Mortgage, dated as of July 1, 1950, made by the Borrower to Bank One Trust
Company, N.A., as Trustee.

-3-

"Closing Date" means the date on which
the conditions specified in Section 5.1 are satisfied (or waived in
accordance with Section 10.2).

"Code" means the Internal Revenue Code
of 1986. 

"Commitment" means, with respect to each
Lender, the commitment of such Lender to make Loans and to acquire
participations in Letters of Credit hereunder in an aggregate outstanding
amount not exceeding the amount of such Lender's Commitment as set forth on Schedule
2.1 plus, the amount of any increase set forth in each Increase
Supplement executed and delivered by such Lender, the Borrower and the
Administrative Agent or in the Assignment and Acceptance pursuant to which such
Lender shall have assumed its Commitment in accordance with Section 10.4(b),
as applicable, as such Commitment may be adjusted from time to time pursuant to
Section 2.5 or pursuant to assignments by or to such Lender pursuant to
Section 10.4.  The initial aggregate amount of the Commitments on the Agreement
Date is $125,000,000.

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

"Control" means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
or policies of a Person, whether through the ability to exercise voting power,
by contract or otherwise. The terms "Controlling" and "Controlled" have
meanings correlative thereto.

"Corporate Officer" means with respect
to the Borrower, the chairman of the board, the president, any vice president,
the chief executive officer, the chief financial officer, the secretary, the
treasurer, or the controller thereof.

"Credit Event" has the meaning assigned
to such term in Section 5.2.

"Credit Exposure" means, with respect to
any Lender at any time, the sum of the aggregate outstanding principal amount
of such Lender's Loans and its LC Exposure at such time.

"Credit Parties" means the
Administrative Agent, the Issuing Bank and the Lenders.

"Credit Request" means a Credit Request,
substantially in the form of Exhibit C, or in such other form as shall
be acceptable to the Administrative Agent.

 "Default" means any event or condition
which constitutes an Event of Default or that upon notice, lapse of time or
both would, unless cured or waived, become an Event of Default.

"Disclosed Matters" means the actions,
suits, proceedings and environmental matters disclosed in Schedule 4.6.

"Disqualified Stock" means any Equity Interest
that, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable at the option of the holder
thereof), or upon the happening of any event, matures (excluding any maturity
as a result of an optional redemption by the issuer thereof to the extent not
prohibited by this Credit Agreement) or is mandatorily redeemable, pursuant to
a sinking fund obligation or otherwise, or is redeemable at the unconditional
sole option of the holder thereof (other than solely for Equity Interests which
do not constitute Disqualified Stock), in whole or in part, on or prior to the
date that is one year after the Maturity Date.  The term "Disqualified Stock"
shall also include any options, warrants or other rights

-4-

 that are convertible
into Disqualified Stock or that are redeemable at the option of the holder, or
required to be redeemed, prior to the date that is 180 days after the Maturity
Date.

 "Documentation Agents" means,
collectively, KeyBank National Association and Union Bank of California, N.A in
their capacities as documentation agents for the Lenders hereunder.

"dollars" or "$" refers to lawful
money of the United States of America.

"EBITDA" means, for any period, net
income for such period of the Borrower and the Subsidiaries, determined on a
consolidated basis in accordance with GAAP, plus, without duplication
and to the extent deducted in determining such net income, the sum of (i) Interest Expense for such period, (ii) provision for income taxes for such period, (iii) the aggregate amount attributable to depreciation and amortization for such period,
and (iv) the aggregate amount of items to the extent constituting extraordinary
non‐recurring or non‐operating charges or expenses during such
period and minus, without duplication and to the extent added in
determining such net income for such period, the aggregate amount of
extraordinary, non‐recurring and non‐operating additions to income
during such period.

"Eligible Assignee" means any of the
following: (i) commercial banks, finance companies, insurance companies and
other financial institutions and funds (whether a corporation, partnership or
other entity) engaged generally in making, purchasing or otherwise investing in
commercial loans in the ordinary course of its business; provided that
any such entity shall be entitled, as of the date such entity becomes a Lender,
to receive payments under its Note without deduction or withholding with
respect to United States federal income tax, (ii) each of the Lenders and (iii)
any Affiliate or Approved Fund of a Lender.

"Eligible SPC" means a special purpose
corporation that (i) is organized under the laws of the United States or any
state thereof, (ii) is engaged in making, purchasing or otherwise investing in
commercial loans in the ordinary course of its business and (iii) issues (or the parent of which issues) commercial paper rated at least A-1 or the
equivalent thereof by Standard & Poor's Ratings Services, a division of The
McGraw Hill Companies or at least P-1 or the equivalent thereof by from Moody's
Investors Service, Inc.

"Employee Stock Ownership Plan" means
The Cleco Power LLC 401(k) Savings and Investment Plan.

"environment"
means ambient air, surface water and groundwater (including potable water,
navigable water and wetlands), the land surface or subsurface strata, the
workplace or as otherwise defined in any Environmental Law.

"Environmental
Claim" means any written accusation, allegation, notice of
violation, claim, demand, order, directive, cost recovery action or other cause
of action by, or on behalf of, any Governmental Authority or any Person for
damages, injunctive or equitable relief, personal injury (including sickness,
disease or death), Remedial Action costs, tangible or intangible property
damage, natural resource damages, nuisance, pollution, any adverse effect on
the environment caused by any Hazardous Material, or for fines, penalties or
restrictions, resulting from or based upon (i) the existence, or the continuation of the existence, of a Release (including sudden or non‐sudden,
accidental or non‐accidental Releases), (ii) exposure to any Hazardous Material, (iii) the presence, use, handling, transportation, storage, treatment
or disposal of any Hazardous Material or (iv) the violation or alleged violation of any Environmental Law or Environmental Permit.

-5-

"Environmental
Law" means any and all applicable present and future treaties, laws,
rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions,
notices or binding agreements issued, promulgated or entered into by or with
any Governmental Authority, relating in any way to the environment,
preservation or reclamation of natural resources, the presence, management,
Release or threatened Release of any Hazardous Material or to health and safety
matters. 

"Environmental
Permit" means any permit, approval, authorization, certificate,
license, variance, filing or permission required by or from any Governmental
Authority pursuant to any Environmental Law.

 "Equity Interest" means (i) shares of corporate stock, partnership interests, membership interests, and any other
interest that confers on a Person the right to receive a share of the profits
and losses of, or distribution of assets of, the issuing Person, and (ii) all warrants, options or other rights to acquire any Equity Interest set forth in
clause (i) of this defined term.

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

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

"ERISA Event" means (i) any "reportable event", as defined in Section 4043 of ERISA or the regulations issued
thereunder with respect to a Plan (other than an event for which the 30 day
notice period is waived); (ii) the existence with respect to any Plan of an
"accumulated funding deficiency" (as defined in Section 412 of the Code or
Section 302 of ERISA), whether or not waived; (iii) the filing pursuant to Section 412(d) of the Code or Section 303(a) of ERISA of an application for a waiver of the
minimum funding standard with respect to any Plan; (iv) the incurrence by the Borrower, any Subsidiary or any ERISA Affiliate of any liability under Title IV
of ERISA with respect to the termination of any Plan; (v) the receipt by  the Borrower, any Subsidiary or any ERISA Affiliate from the PBGC or a plan
administrator of any notice relating to an intention to terminate any Plan or
Plans or to appoint a trustee to administer any Plan; (vi) the incurrence by the Borrower, any Subsidiary or any ERISA Affiliate of any liability with
respect to the withdrawal or partial withdrawal from any Plan or Multiemployer
Plan; or (vii) the receipt by the Borrower, any Subsidiary or any ERISA
Affiliate of any notice, or the receipt by any Multiemployer Plan from the
Borrower, any Subsidiary or any ERISA Affiliate of any notice, concerning the
imposition of Withdrawal Liability or a determination that a Multiemployer Plan
is, or is expected to be, insolvent or in reorganization, within the meaning of
Title IV of ERISA.

"Eurodollar", when used in reference to
any Loan or Borrowing, refers to whether such Loan, or the Loans comprising
such Borrowing, are bearing interest at a rate determined by reference to the
Adjusted LIBO Rate.

 "Event of Default" has the meaning
assigned to such term in Article 8.

"Evergreen Letter of Credit" means any
Letter of Credit that, by its terms, provides that it shall be automatically
renewed or extended for a stated period of time at the end of its then scheduled
expiry date unless the Issuing Bank notifies the beneficiary thereof prior to
such expiry date that the Issuing Bank elects not to renew or extend such
Letter of Credit.

-6-

"Existing Credit Agreement" means the
364-Day Credit Agreement, dated as of April 30, 2004, as amended, by and among
the Borrower, the lenders party thereto, JPMorgan Chase Bank, N.A. (formerly
Bank One, NA), as syndication agent, WestLB, as documentation agent, Allied
Irish Banks, p.l.c., CoBank, ACB, Commerzbank AG, New York and Grand Cayman
Branches and KeyBank National Association, as managing agents hereunder, and
BNY, as administrative agent.

"Existing Letter of Credit" means any
letter of credit set forth in Schedule 1.1, but not any renewal or
extension thereof.

"Existing Loan Documents" means,
collectively, the Existing Credit Agreement and the other Loan Documents (as
defined therein).

"Federal Funds Effective Rate" means,
for any day, a rate per annum (expressed as a decimal, rounded upwards, if
necessary, to the next higher 1/100 of 1%) equal to the weighted average of the
rates on overnight federal funds transactions with members of the Federal
Reserve System arranged by federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on the Business Day next succeeding such
day, provided that (i) if the day for which such rate is to be
determined is not a Business Day, the Federal Funds Effective Rate for such day
shall be such rate on such transactions on the next preceding Business Day as
so published on the next succeeding Business Day, and (ii) if such rate is not so published for any day, the Federal Funds Effective Rate for such day shall
be 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.

"FERC" means the Federal Energy
Regulatory Commission or any Governmental Authority succeeding to the functions
thereof.

"Financial Officer" means the chief
financial officer, principal accounting officer, treasurer or controller of the
Borrower.

"Financial Statements" has the meaning
assigned to such term in Section 4.4(a).

"Foreign Lender" means any Lender that
is organized under the laws of a jurisdiction other than that in which the
Borrower is located. For purposes of this definition, the United States of
America, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

"GAAP" means generally accepted
accounting principles set forth in the opinions and pronouncements of the
Accounting Principles Board and the American Institute of Certified Public
Accountants and in the statements and pronouncements of the Financial Accounting
Standards Board or in such other statement by such other entity as may be
approved by a significant segment of the accounting profession, which are
applicable to the circumstances as of the date of determination, consistently
applied.  

"Governmental Authority" means the
government of the United States of America, any other nation or any political
subdivision thereof, whether state or local, and any agency, commission,
exchange, association, board, authority, instrumentality, regulatory body,
court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

"Granting Lender" has the meaning
assigned to such term in Section 10.4(h).

-7-

 "Guarantee" of or by any Person (the "guarantor")
means any obligation, contingent or otherwise, of the guarantor guaranteeing or
having the economic effect of guaranteeing any Indebtedness or other obligation
of any other Person (the "primary obligor") in any manner, whether
directly or indirectly, and including any obligation of the guarantor, direct
or indirect, (i) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation or to purchase
(or to advance or supply funds for the purchase of) any security for the
payment thereof, (ii) to purchase or lease property, securities or services for
the purpose of assuring the owner of such Indebtedness or other obligation of
the payment thereof, (iii) to maintain working capital, equity capital or any
other financial statement condition or liquidity of the primary obligor as to
enable the primary obligor to pay such Indebtedness or other obligation or (iv) as an account party in respect of any letter of credit or letter of guaranty issued
to support such Indebtedness or obligation, provided that the term
"Guarantee" shall not include endorsements for collection or deposit in the
ordinary course of business. The term "Guaranteed" has a meaning correlative
thereto.  The amount of any Guarantee of a Person shall be deemed to be an
amount equal to the stated or determinable amount of the primary obligation in
respect of which such Guarantee is made (or, if less, the maximum amount of
such primary obligation for which such Person may be liable pursuant to the
terms of the instrument evidencing such Guarantee) or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof
as determined by such Person in good faith, provided, however,
the amount of any Guarantee of a Person in respect of any agreement by any
other Person to purchase electricity, gas or fuel from a counterparty shall be
deemed to be the maximum reasonably anticipated liability of such other Person,
as determined in good faith by such Person, net of any obligation or liability
of such counterparty to purchase electricity, gas or fuel from such other
Person, provided further that the obligations of such other
Person to so purchase electricity, gas or fuel from such counterparty shall be
terminable at the election of such other Person in the event of a default by
such counterparty in its obligations to so purchase electricity, gas or fuel
for such other Person.

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

"Increase Supplement" means an increase
supplement in the form of Exhibit F.

"Increasing Lender" has the meaning
assigned to such term in Section 2.5(d).

"Indebtedness" means as to any Person,
at a particular time, all items which constitute, without duplication, (i)
indebtedness for borrowed money or the deferred purchase price of property
(excluding trade payables incurred in the ordinary course of business and
excluding any such obligations payable solely through the issuance of Equity
Interests (other than the Disqualified Stock and Equity Interests convertible
into Disqualified Stock)), (ii) indebtedness evidenced by notes, bonds,
debentures or similar instruments, (iii) obligations with respect to any
conditional sale or title retention agreement, (iv) indebtedness arising under acceptance
facilities and the amount available to be drawn under all letters of credit
issued for the account of such Person and, without duplication, all drafts
drawn thereunder to the extent such Person shall not have reimbursed the issuer
in respect of the issuer's payment of such drafts, (v) all liabilities secured
by any Lien on any property owned by such Person even though such Person has
not assumed or otherwise become liable for the payment thereof (other than
carriers', warehousemen's, mechanics', repairmen's or other like non consensual
statutory Liens arising in the ordinary course of business; provided that the
amount of such liabilities included for purposes of this definition will be the
amount equal to the lesser of the fair market value of such 

-8-

property and the
amount of the liabilities so secured), (vi) liabilities in respect of any
obligation (contingent or otherwise) to purchase, redeem, retire, acquire or
make any other payment in respect of any shares of equity securities or any
option, warrant or other right to acquire any shares of equity securities,
(vii) obligations under Capital Lease Obligations, (viii) indebtedness in
respect of Disqualified Stock valued at the greater of its voluntary or
involuntary  maximum fixed repurchase price plus accrued dividends and
(ix) Guarantees of such Person in respect of Indebtedness of others.

"Indemnitee" has the meaning assigned to
such term in Section 10.3(b).

"Indenture" means the Indenture, dated
as of October 1, 1988, between the Borrower and The Bank of New York, as
trustee.

"Information" has the meaning assigned
to such term in Section 10.15.

"Integrated Resources Plan" means the
portions of the Utility's strategic integrated resources plan which involves
replacing, repowering or adding electric power generation, transmission or
distribution facilities to meet the measured and forecasted demand and
consumption requirements of its customers, including the acquisition,
construction or improvement of generation facilities and fuel conversion repowering
projects for existing generation facilities to diversify fuel sources, with any
project undertaken to implement the foregoing being subject to regulation by
the LPSC by prior issuance of a certificate of public convenience and necessity
or in a ratemaking proceeding, prudence review or a combination thereof. 

"Intellectual Property" means all
copyrights, trademarks, servicemarks, patents, trade names and service names.

"Inter‐Affiliate Policies Agreement"
means the Inter‐Affiliate Policies and the Inter‐Affiliate
Procedures of Cleco Corporation, each dated as of April 11, 2005.

"Interest Coverage Ratio" means as of
any fiscal quarter end, the ratio of (i) EBITDA for the period of the four consecutive fiscal quarters ending thereon to (ii) Interest Expense for such period.

"Interest Election Request" means a
request by the Borrower to convert or continue a Borrowing in accordance with Section
3.2.

"Interest Expense" means for any period,
the interest expense, both expensed and capitalized (including the interest
component in respect of Capital Lease Obligations), of the Borrower and its
Subsidiaries during such period, determined on a consolidated basis in
accordance with GAAP.

"Interest Payment Date" means (i) with respect to any ABR Loan, the last day of each March, June, September and
December, (ii) with respect to any Eurodollar Loan, the last day of the
Interest Period applicable to the Borrowing of which such Eurodollar Loan is a
part and, in the case of a Eurodollar Loan with an Interest Period of more than
three months' duration, each day prior to the last day of such Interest Period
that occurs at intervals of three months' duration after the first day of such
Interest Period and (iii) with respect to all Loans, the Maturity Date.

"Interest Period" means, with respect to
any Eurodollar Borrowing, the period commencing on the date of such Borrowing
and ending on the numerically corresponding day in the calendar month that is
one, two, three or six months thereafter, as the Borrower may elect, provided

-9-

that (i) if any Interest Period would end on a day other than a Business Day,
such Interest Period shall be extended to the next succeeding Business Day,
unless such next succeeding Business Day would fall in the next calendar month,
in which case such Interest Period shall end on the next preceding Business
Day, and (ii) any Interest Period that commences on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day
in the last calendar month of such Interest Period) shall end on the last
Business Day of the last calendar month of such Interest Period.  For purposes
hereof, the date of a Borrowing initially shall be the date on which such
Borrowing is made and thereafter shall be the effective date of the most recent
conversion or continuation of such Borrowing.

"Issuing Bank" means BNY, in its
capacity as issuer of Letters of Credit.

"LC Disbursement" means a payment made
by the Issuing Bank pursuant to a Letter of Credit.

"LC Exposure" means, at any time, (i) with respect to all of the Lenders, the sum, without duplication, of (x) the
aggregate undrawn amount of all outstanding Letters of Credit at such time plus
(y) the aggregate amount of all LC Disbursements that have not yet been
reimbursed by or on behalf of the Borrower at such time and (ii) with respect to each Lender, its Applicable Percentage of the amount determined
under clause (i).

"Lenders" means the Persons listed on
Schedule
2.1 and any other Person that shall have become a party hereto pursuant to
an Assignment and Acceptance an Increase Supplement, other than any such Person
that ceases to be a party hereto pursuant to an Assignment and Acceptance.

"Letter of Credit" means any Existing
Letter of Credit and any New Letter of Credit.

 "Letter of Credit Commitment" means,
with respect to the Issuing Bank, the commitment of the Issuing Bank to issue
Letters of Credit hereunder.  The amount of the Issuing Bank's Letter of Credit
Commitment is $25,000,000. 

"LIBO
Rate" means, with respect to any Eurodollar Borrowing for any
Interest Period, the rate appearing on the Dow Jones Markets Telerate Page 3750
(or on any successor or substitute page of such Service, or any successor to or
substitute for such Service, providing rate quotations comparable to those
currently provided on such page of such Service, as determined by the
Administrative Agent from time to time for purposes of providing quotations of
interest rates applicable to dollar deposits in the London interbank market) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, as the rate for dollar deposits with a
maturity comparable to such Interest Period.  In the event that such rate does
not appear on the Dow Jones Markets Telerate Page 3750 (or on any such
successor or substitute page, or any successor to or substitute for such
Service) at such time for any reason, then the "LIBO Rate" with respect to such
Eurodollar Borrowing for such Interest Period shall be the rate of interest per
annum, as reported by BNY to the Administrative Agent, quoted by BNY to leading
banks in the interbank eurodollar market as the rate at which BNY is offering
Dollar deposits in an amount equal approximately to the Eurodollar Loan of BNY
to which such Interest Period shall apply for a period equal to such Interest
Period, as quoted at approximately 11:00 a.m. two Business Days prior to the first
day of such Interest Period.

"Lien" means, with respect to any asset,
(i) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance,
charge or security interest in, on or of such asset, (ii) the interest of a

-10-

vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement relating to such asset and (iii) in the case of securities, any purchase option, call or similar right of a third party with respect to
such securities.

"Loan" means a loan referred to in
Section
2.1(a) and made pursuant to Section 2.4.

"Loan Documents" means this Credit
Agreement, the Notes and the documentation in respect of each Letter of Credit.

"LPSC" means the
Louisiana Public Service Commission or any Governmental Authority succeeding to
the functions thereof.

"LSPC Order" means that certain letter of
non-opposition issued to the Borrower, dated March 28, 2005, in Docket No. S-28529,
together with Special Order No. 11-2005, issued by LSPC, or any renewal or
replacement order thereof, together with any supplemental order thereto, in
each case authorizing the Borrower to issue notes or drafts maturing not more
than five year after the date of issue or renewal thereof or assumption of
liability thereon in an aggregate principal amount not in excess of
$125,000,000.

 "Margin Stock" has the meaning assigned
to such term in Regulation U.

"Material Adverse Change" means a
material adverse change in (i) the financial condition, operations, business,
prospects or property of (a) the Borrower or (b) the Borrower and the
Subsidiaries, taken as a whole, (ii) the ability of the Borrower to perform its
obligations under the Loan Documents or (iii) the ability of the Credit Parties
to enforce their rights and remedies under the Loan Documents.

"Material Adverse Effect" means a
material adverse effect on (i) the financial condition, operations, business,
prospects or property of (a) the Borrower or (b) the Borrower and the
Subsidiaries, taken as a whole, (ii) the ability of the Borrower to perform its
obligations under the Loan Documents or (iii) the ability of the Credit Parties
to enforce their rights and remedies under the Loan Documents.

"Material Obligations" means as of any
date, Indebtedness (other than Indebtedness under the Loan Documents) or
operating leases of any one or more of the Borrower or any Subsidiary or, in
the case of the Borrower only, any Guarantee, in an aggregate principal amount
exceeding $20,000,000. For purposes of determining Material Obligations, the
"principal amount" of Indebtedness, operating leases or Guarantees at any time
shall be the maximum aggregate amount (giving effect to any netting agreements)
that the Borrower or such Subsidiary, as applicable, would be required to pay
if such Indebtedness, operating leases or Guarantees became due and payable on
such day.

"Material Total Assets" means as of any
date of determination, the total assets of the Borrower and the Subsidiaries,
determined on a consolidated basis in accordance with GAAP.

 "Maturity Date" means April 23, 2010.

 "Moody's" means Moody's Investors
Service, Inc., or any successor thereto.

-11-

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

 "New Letter of Credit" means any letter
of credit issued pursuant to this Credit Agreement and any successive renewals
or extensions thereof.

"Notes" means,
with respect to
each Lender, a promissory note evidencing such Lender's Loans payable to the
order of such Lender (or, if required by such Lender, to such Lender and its
registered assigns) substantially in the form of Exhibit D.

"Other Taxes" means any and all current
or future stamp or documentary taxes or any other excise or property taxes,
charges or similar levies arising from any payment made hereunder or from the
execution, delivery or enforcement of, or otherwise with respect to, the Loan
Documents.

"Parent" means Cleco Corporation, a
Louisiana corporation.

"Participant" has the meaning assigned
to such term in Section 10.4(e).

"Patriot
Act" has the meaning assigned to such term in Section 10.15.

 "PBGC" means the Pension Benefit
Guaranty Corporation referred to and defined in ERISA.

"Permitted
Encumbrances" means:

(a)               
Liens imposed by law for taxes, assessments or similar charges incurred
in the ordinary course of business that are not yet due or are being contested
in compliance with Section 6.4, provided that enforcement of such
Liens is stayed pending such contest;

(b)               
landlords', vendors', carriers', warehousemen's, mechanics',
materialmen's, repairmen's and other like Liens imposed by law, arising in the
ordinary course of business and securing obligations that are not which are not
delinquent or are being contested in compliance with Section 6.6, provided
that enforcement of such Liens is stayed pending such contest;

(c)               
pledges and deposits made in the ordinary course of business in
compliance with workers' compensation, unemployment insurance and other social
security laws or regulations (but not ERISA);

(d)               
pledges and deposits to secure the performance of bids, trade contracts
(other than contracts for the payment of money), leases, purchase agreements to
the extent that the related purchase is permitted by Section 7.3, statutory
obligations, surety and appeal bonds, performance bonds and other obligations
of a like nature, in each case in the ordinary course of business; 

(e)               
judgment liens in respect of judgments that do not constitute an Event
of Default under clause (j) of Article 8; 

(f)                
easements, zoning restrictions, rights of way, rights of way, minor
defects, irregularities and other similar encumbrances on real property imposed
by law or arising in the ordinary course of business that do not secure any
monetary obligations and do not materially detract 

-12-

from the value of the
affected property or materially interfere with the ordinary conduct of business
of the Borrower and the Subsidiaries, as the case may be;

(g)               
Liens in favor of a financial institution encumbering deposits
(including the right of set‐off) held by such financial institution in
the ordinary course of its commercial business and which are within the general
parameters customary in the banking industry; and

(h)               
Liens on Margin Stock to the extent that a prohibition on such Liens
would violate Regulation U;

(i)                 
leases or subleases granted to others that do not materially interfere
with the ordinary conduct of business of the Borrower and the Subsidiaries;

(j)                 
licenses of Intellectual Property granted by the Borrower or any Subsidiary
in the ordinary course of business and not materially interfering with the
ordinary conduct of the business of the Borrower and the Subsidiaries; and

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

 "Person" means any natural person,
corporation, limited liability company, trust, joint venture, association,
company, partnership, Governmental Authority or other entity.

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

 "Platform"
has the meaning assigned to such term in Section
6.2.

"Pricing Level" means Pricing Level I,
Pricing Level II, Pricing Level III, Pricing Level IV, Pricing Level V, Pricing
Level VI or Pricing Level VII, as the context may require.

"Pricing Level I" means  any time when
(i) no Event of Default has occurred and is continuing, (ii) the Senior Debt
Rating is A‐ or higher by S&P or A3 or higher by Moody's. 

"Pricing Level II" means any time when
(i) no Event of Default has occurred and is continuing, (ii) the Senior Debt
Rating is BBB+ or higher by S&P or Baa1 or higher by Moody's and (iii)
Pricing Level I does not apply.

"Pricing Level III" means any time when
(i) no Event of Default has occurred and is continuing, (ii) the Senior Debt
Rating is BBB or higher by S&P or Baa2 or higher by Moody's and (iii)
Pricing Levels I and II do not apply.

"Pricing Level IV" means any time when
(i) no Event of Default has occurred and is continuing, (ii) the Senior Debt
Rating is BBB‐ or higher by S&P or Baa3 or higher by Moody's and
(iii) Pricing Levels I, II and III do not apply.

-13-

"Pricing Level V" means any time when
(i) no Event of Default has occurred and is continuing, (ii) the Senior Debt
Rating is (x) BB+ or higher by S&P and Baa3 or higher by Moody's or (y) BBB‐ or higher by S&P and Ba1 or higher by Moody's and (iii) Pricing Levels
I, II, III and IV do not apply.

 "Pricing Level VI" means any time when
(i) no Event of Default has occurred and is continuing, (ii) the Senior Debt
Rating is BB+ or higher by S&P or Ba1 or higher by Moody's and (iii)
Pricing Levels I, II, III, IV, and V do not apply.

"Pricing Level VII" means any time when
none of Pricing Levels I, II, III, IV, V, and VI is applicable.

"Prime Rate" means the rate of interest
per annum publicly announced from time to time by BNY as its prime commercial
lending rate at its principal office in New York City; each change in the Prime
Rate being effective from and including the date such change is publicly
announced as being effective. The Prime Rate is not intended to be lowest rate
of interest charged by BNY in connection with extensions of credit to
borrowers.

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

 "Public
Lender" has the meaning assigned to such term in Section 6.2.

"Register" has the meaning assigned to
such term in Section 10.4(c).

"Regulation D" means Regulation D of the
Board as from time to time in effect and all official rulings and
interpretations thereunder or thereof.

"Regulation T" means Regulation T of the
Board as from time to time in effect and all official rulings and
interpretations thereunder or thereof.

"Regulation U" means Regulation U of the
Board as from time to time in effect and all official rulings and
interpretations thereunder or thereof.

"Regulation X" means Regulation X of the
Board as from time to time in effect and all official rulings and
interpretations thereunder or thereof.

"Related Parties" means, with respect to
any specified Person, such Person's Affiliates and the respective directors,
officers, employees, agents and advisors of such Person and such Person's
Affiliates.

"Remedial
Action" means (a) "remedial action" as such term is defined in
CERCLA, 42 U.S.C. Section 9601(24), and (b) all other actions required by any
Governmental Authority or voluntarily undertaken to: (i) clean up, remove,
treat, abate or in any other way address any Hazardous Material in the
environment; (ii) prevent the Release or threat of Release, or minimize the
further Release of any Hazardous Material so it does not migrate or endanger or
threaten to endanger public health, welfare or the environment; or (iii)
perform studies and investigations in connection with, or as a precondition to,
(i) or (ii) above.

"Required Deposit Amount" means in the
event that as a result of the deposit of cash collateral with the Administrative
Agent pursuant to Section 2.8(i) the Borrower (i) is not required to

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grant a security interest in such cash collateral to any other Person, an amount
equal to the LC Exposure on the date on which cash collateral is required to be
deposited, or (ii) is required to grant a security interest in such cash
collateral to any other Person, an amount equal to the LC Exposure on the date
on which cash collateral is required to be deposited multiplied by a fraction,
the numerator of which is the sum of the LC Exposure plus the principal
amount of all other obligations to be secured by such cash collateral and the
denominator of which is the amount of such LC Exposure.

"Required Lenders" means, at any time,
Lenders having unused Commitments, LC Exposure and outstanding Loans
representing at least 51% of the sum of the unused Commitments, LC Exposure and
outstanding Loans of all Lenders.

"S&P" means Standard & Poor's
Ratings Group, a division of The McGraw Hill Companies, or any successor
thereto.

"SEC" means the Securities and Exchange
Commission or any Governmental Authority succeeding to the functions thereof.

"Senior Debt Rating" means at any date,
the credit rating identified by S&P or Moody's as the credit rating which
(i) it has assigned to long term unsecured senior debt of the Borrower or (ii)
would assign to long term unsecured senior debt of the Borrower were the
Borrower to issue or have outstanding any long term unsecured senior debt on
such date.  If either (but not both) Moody's or S&P shall cease to be in
the business of rating corporate debt obligations, the Pricing Levels shall be
determined on the basis of the ratings provided by the other rating agency.

"Statutory Reserve Rate" means a
fraction (expressed as a decimal), the numerator of which is the number one and
the denominator of which is the number one minus the aggregate of the
maximum reserve percentages, if any, (including any marginal, special, emergency
or supplemental reserves) expressed as a decimal established by the Board to
which member banks of the United States Federal Reserve System in New York City
with deposits exceeding $250,000,000) are subject for eurocurrency funding
(currently referred to as "Eurocurrency liabilities" in Regulation D).
Such reserve percentages shall include those imposed pursuant to Regulation D. 
Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be
subject to such reserve requirements without benefit of or credit for
proration, exemptions or offsets that may be available from time to time to any
Lender under Regulation D or any comparable regulation.  The Statutory Reserve
Rate shall be adjusted automatically on and as of the effective date of any
change in any reserve percentage.

"subsidiary" means, as to any Person,
any corporation, association, partnership, limited liability company, joint
venture or other business entity of which such Person or any Subsidiary of such
Person, directly or indirectly, either (i) in respect of a corporation, owns or
controls more than 50% of the outstanding Equity Interests
having
ordinary voting power to elect a majority of the board of directors or similar
managing body, irrespective of whether a class or classes shall or might have
voting power by reason of the happening of any contingency, or (ii) in respect
of an association, partnership, joint venture or other business entity, is
entitled to share in more than 50% of the profits and losses, however determined. 
Unless the context otherwise requires, references to a Subsidiary shall be
deemed to be references to a Subsidiary of the Borrower.

"Syndication Agents" means,
collectively, Chase and WestLB, in their capacities as syndication agents for
the Lenders hereunder.

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"Tax" means any present or future tax,
levy, impost, duty, charge, fee, deduction or withholding of any nature, and
whatever called, by a Governmental Authority, on whomsoever and wherever
imposed, levied, collected, withheld or assessed.

"Tax on the Overall Net Income" means,
as to any Person, a Tax imposed by the jurisdiction in which that Person's
principal office (and/or, in the case of a Lender, its lending office in the
United States of America designated in its Administrative Questionnaire or such
other office as such Lender may designate in writing to the Administrative
Agent and the Borrower) is located, or by any political subdivision or taxing
authority thereof, or in which that Person is deemed to be doing business, on
all or part of the net income, profits or gains of that Person (whether
worldwide, or only insofar as such income, profits or gains are considered to
arise in or to relate to a particular jurisdiction, or otherwise).

 "Total Capitalization" means, at any
time, the difference between (i) the sum of each of the following at such time
with respect to the Borrower and the Subsidiaries, determined on a consolidated
basis in accordance with GAAP: (a) preferred Equity Interests (less deferred
compensation relating to unallocated convertible preferred Equity Interests
held by the Employee Stock Ownership Plan), plus (b) common Equity Interests
and any premium on capital Equity Interests thereon (as such term is used in
the Financial Statements), plus (c) retained earnings, plus (d) Total
Indebtedness, and (ii) treasury stock at such time of the Borrower and the
Subsidiaries, determined on a consolidated basis in accordance with GAAP.

"Total Indebtedness" means at any time,
all Indebtedness (net of unamortized premium and discount (as such term is used
in the Financial Statements)) at such time of the Borrower and the
Subsidiaries, determined on a consolidated basis in accordance with GAAP.

"Transactions" means (i) the execution, delivery and performance by the Borrower of each Loan Document to
which it is a party, (ii) the borrowing of the Loans and the issuance of the Letters
of Credit, and (iii) the use of the proceeds of the Loans and the Letters of
Credit.

"Type", when used in reference to any
Loan or Borrowing, refers to whether the rate of interest on such Loan, or on
the Loans comprising such Borrowing, is determined by reference to (i) the Adjusted LIBO Rate or (ii) the Alternate Base Rate.

 "Voting Security" means a security
which ordinarily has voting power for the election of the board of directors
(or other governing body), whether at all times or only so long as no senior
class of Equity Interests has such voting power by reason of any contingency.

"WestLB" means WestLB AG, New York
Branch.

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

Section 1.2               
Classification of Loans and Borrowings

For purposes of this Credit Agreement, (i) Loans may be classified and referred to by Type (e.g., a "Eurodollar Loan")
and (ii)  Borrowings may also be classified and referred to by Type (e.g.,
a "Eurodollar Borrowing").

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Section 1.3               
Terms Generally

The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words "include", "includes" and "including"
shall be deemed to be followed by the phrase "without limitation". The word
"will" shall be construed to have the same meaning and effect as the word
"shall". Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document herein shall be construed as
referring to such agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified, (ii) any definition of or reference to any
law shall be construed as referring to such law as from time to time amended
and any successor thereto and the rules and regulations promulgated from time
to time thereunder, (iii) any reference herein to any Person shall be construed
to include such Person's successors and assigns, (iv) the words "herein", "hereof" and "hereunder", and words of similar import, shall be construed to refer to
this Credit Agreement in its entirety and not to any particular provision
hereof, (v) all references herein to Articles, Sections, Exhibits and Schedules
shall be construed to refer to Articles and Sections of, and Exhibits and
Schedules to, this Credit Agreement, and (vi) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to
any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights.

Section 1.4               
Accounting Terms; GAAP

Except as otherwise
expressly provided herein, as used in the Loan Documents and in any
certificate, opinion or other document made or delivered pursuant thereto,
accounting terms not defined in Section 1.1, and accounting terms partly
defined in Section 1.1, to the extent not defined, shall have the
respective meanings given to them under GAAP.  If at any time any change in
GAAP would affect the computation of any financial requirement set forth in
this Credit Agreement, the Administrative Agent, the Lenders and the Borrower
shall negotiate in good faith to amend such requirement to reflect such change
in GAAP (subject to the approval of the Required Lenders), provided
that, until so amended, (i) such requirement shall continue to be computed
in accordance with GAAP prior to such change therein and (ii) the Borrower shall provide to the Credit Parties financial statements and other documents required
under this Credit Agreement or as reasonably requested hereunder setting forth
a reconciliation between calculations of such requirement made before and after
giving effect to such change in GAAP.  Except as otherwise expressly provided
herein, the computation of financial ratios and requirements set forth in this
Credit Agreement shall be consistent with the Borrower's financial statements
required to be delivered hereunder.

Section 1.5               
Rounding

Any financial ratios required to be maintained
by the Borrower pursuant to this Agreement shall be calculated by dividing the
appropriate component by the other component, carrying the result to one place
more than the number of places by which such ratio is expressed herein and
rounding the result up or down to the nearest number (with a rounding‐up
if there is no nearest number).

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Article
2.

THE
CREDITS

Section 2.1               
Commitments

Subject to the terms and conditions hereof,
each Lender agrees to make Loans to the Borrower in dollars from time to time
during the Availability Period in an aggregate principal amount that will not
result in such Lender's Credit Exposure exceeding such Lender's Commitment. Within
the foregoing limits and subject to the terms and conditions set forth herein,
the Borrower may borrow, prepay and reborrow Loans. 

Section 2.2               
Loans and Borrowings

(a)               
Each Loan shall be made as part of a Borrowing consisting of Loans made
by the Lenders ratably in accordance with their respective Commitments.  The
failure of any Lender to make any Loan required to be made by it shall not
relieve any other Lender of its obligations hereunder, provided that the
Commitments of the Lenders are several, and no Lender shall be responsible for
any other Lender's failure to make Loans as required.

(b)               
Subject to Section 3.4, each Borrowing shall be comprised
entirely of ABR Loans or Eurodollar Loans, as applicable, in each case as the
Borrower may request in accordance herewith. Each Lender at its option may make
any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of
such Lender to make such Loan, provided that any exercise of such option
shall not affect the obligation of the Borrower to repay such Loan in
accordance with the terms of this Credit Agreement.  

(c)               
At the commencement of each Interest Period for any Eurodollar
Borrowing, such Borrowing shall be in an aggregate amount that is an integral
multiple of 1,000,000 and not less than $5,000,000. At the time that each ABR
Borrowing is made, such Borrowing shall be in an aggregate amount that is an
integral multiple of $1,000,000 and not less than $5,000,000, provided
that an ABR Borrowing may be in an aggregate amount that is equal to the entire
unused balance of the total Commitments or in an aggregate amount that is
required to finance or the reimbursement of an LC Disbursement as contemplated
by Section 2.8(e).  Borrowings of more than one Type may be outstanding
at the same time, provided that there shall not at any time be more than
a total of five Eurodollar Borrowings outstanding.

(d)               
Notwithstanding any other provision of this Credit Agreement, the
Borrower shall not be entitled to request, or to elect to convert or continue,
any Borrowing if the Interest Period requested with respect thereto would end
after the Maturity Date.

Section 2.3               
Requests for Borrowings

(a)               
To request a Borrowing, the Borrower shall deliver a Credit Request to
the Administrative Agent by hand or facsimile (or transmit by electronic
communication, if arrangements for doing so have been approved by the
Administrative Agent) or notify the Administrative Agent by telephone, in each
case to be promptly confirmed by the delivery to the Administrative Agent of a
signed Credit Request (i) in the case of a Eurodollar Borrowing, not later than
11:30 a.m., New York City time, three Business Days before the date of the
proposed Borrowing or (ii) in the case of an ABR Borrowing, not later than
11:30 a.m., New York City time, on the date of the proposed Borrowing. 

-18-

Each
such Credit Request (including each such telephonic request) shall be
irrevocable and shall specify the following information in compliance with Section
2.2:

(i)                 
the aggregate amount of the requested Borrowing;

(ii)               
the date of such Borrowing, which shall be a Business Day;

(iii)              
whether such Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing;

(iv)             
in the case of a Eurodollar Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the definition of
the term "Interest Period"; and

(v)               
the location and number of the Borrower's account to which funds are to
be disbursed, which shall comply with the requirements of Section 2.4.

(b)               
If no election as to the Type of Borrowing is specified, then the
requested Borrowing shall be an ABR Borrowing.  If no Interest Period is
specified with respect to any requested Eurodollar Borrowing, then the Borrower
shall be deemed to have selected an Interest Period of one month's duration.
Promptly following receipt of a Credit Request in accordance with this Section,
the Administrative Agent shall advise each Lender of the details thereof and of
the amount of such Lender's Loan to be made as part of the requested Borrowing.

Section 2.4               
Funding of Borrowings

(a)               
Each Lender shall make each Loan to be made by it hereunder on the
proposed date thereof by wire transfer of immediately available funds by 2:00
p.m., New York City time, to the account of the Administrative Agent most
recently designated by it for such purpose by notice to the Lenders. Subject to
Section 5.2, the Administrative Agent will make such Loans available to
the Borrower by promptly crediting or otherwise transferring the amounts so
received, in like funds, to an account of the Borrower maintained with the
Administrative Agent and designated by the Borrower in the applicable Credit Request, provided that ABR Loans made to finance the reimbursement
of an LC Disbursement as provided in Section 2.8(e) shall be remitted
by the Administrative Agent to the Issuing Bank.

(b)               
Unless the Administrative Agent shall have received notice from a Lender
prior to the proposed date of any Borrowing that such Lender will not make
available to the Administrative Agent such Lender's share of such Borrowing,
the Administrative Agent may assume that such Lender has made such share
available on such date in accordance with Section 2.4(a) or Section 2.8(e)
and may, in reliance upon such assumption, make available to the Borrower or
the Issuing Bank, as applicable, a corresponding amount. In such event, if a
Lender has not in fact made its share of the applicable Borrowing available to
the Administrative Agent, then the applicable Lender and the Borrower severally
agree to pay to the Administrative Agent forthwith on demand such corresponding
amount with interest thereon, for each day from and including the date such
amount is made available to the Borrower or the Issuing Bank, as applicable, to
but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds Effective Rate and a
rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation or (ii) in the case of the Borrower, the
interest rate that would be otherwise applicable to such Borrowing. Such
payment by the Borrower, however, shall be 

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without prejudice to its rights
against such Lender.  If such Lender pays such amount to the Administrative
Agent, then such amount shall constitute such Lender's Loan included in such Borrowing.

Section 2.5               
Termination, Reduction and Increase of Commitments

(a)               
Unless previously terminated, the Commitments shall terminate on the
Maturity Date.

(b)               
The Borrower may at any time terminate, or from time to time reduce, the
Commitments, provided that (i) the Borrower shall not terminate or reduce the Commitments if, after giving effect to any concurrent prepayment or
repayment of the Loans in accordance with Section 2.7, the sum of the Credit
Exposures would exceed the total Commitments, (ii) each such reduction of the Commitments shall be in an amount that is an integral multiple of $1,000,000
and not less than $5,000,000 and (iii) any reduction of the Commitments to an
amount below the LC Commitment shall be automatically reduce the LC Commitment
on a dollar for dollar basis.

(c)               
The Borrower shall notify the Administrative Agent of any election to
terminate or reduce the Commitments under paragraph (b) of this Section at
least three Business Days prior to the effective date of such termination or
reduction, specifying such election and the effective date thereof. Promptly
following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by the Borrower pursuant
to this Section shall be irrevocable, provided that a notice of
termination of the Commitments delivered by the Borrower may state that such
notice is conditioned upon the effectiveness of other credit facilities, in
which case such notice may be revoked by the Borrower (by notice to the Administrative
Agent on or prior to the specified effective date) if such condition is not
satisfied. Each reduction, and any termination, of the Commitments shall be
permanent and each reduction of the Commitments shall be made ratably among the
Lenders in accordance with their respective Commitments. 

(d)               
The Borrower may at any time and from time to time prior to the Maturity
Date, at its sole cost, expense and effort, request any one or more of the
Lenders to increase its Commitment (the decision to increase the Commitment of
a Lender to be within the sole and absolute discretion of such Lender), or any
other Person reasonably satisfactory to the Administrative Agent and the
Issuing Bank to provide a new Commitment, by submitting to the Administrative
Agent and the Issuing Bank an Increase Supplement duly executed by the
Borrower and each such Lender or other Person, as the case may be. If such Increase
Supplement is in all respects reasonably satisfactory to the Administrative
Agent and the Issuing Bank, the Administrative Agent shall execute such Increase
Supplement and the Administrative Agent shall deliver a copy thereof to the
Borrower and each such Lender or other Person, as the case may be. Upon
execution and delivery of such Increase Supplement by the Administrative Agent
and the Issuing Bank, (x) in the case of each such Lender (an "Increasing
Lender"), its Commitment shall be increased to the amount set forth in such
Increase Supplement, (y) in the case of each such other Person, such other
Person shall become a party hereto and have the rights and obligations of a
Lender under the Loan Documents and its Commitment shall be as set forth in
such Increase Supplement; provided that:

(i)                 
immediately after giving effect thereto, the sum of all increases in the
aggregate Commitments made pursuant to this Section 2.5(d) shall not
exceed $25,000,000;

(ii)               
each such increase of the aggregate Commitments shall be in an amount
not less than $10,000,000 or such amount plus an integral multiple of $1,000,000;

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(iii)              
if Loans would be outstanding immediately after giving effect to any
such increase, then simultaneously with such increase (1) each such increasing
Lender, each such other Person and each other Lender shall be deemed to have
entered into a master assignment and acceptance agreement, in form and
substance substantially similar to Exhibit A, pursuant to which each
such other Lender shall have assigned to each such increasing Lender and each
such other Person a portion of its Loans necessary to reflect proportionately
the Commitments as adjusted in accordance with this subsection (f), and (2) in
connection with such assignment, each such increasing Lender and each such
other Person shall pay to the Administrative Agent, for the account of each
such other Lender, such amount as shall be necessary to reflect the assignment
to it of Loans, and in connection with such master assignment each such other
Lender may treat the assignment of Eurodollar Borrowings as a prepayment of
such Eurodollar Borrowings for purposes of Section 3.6;

(iv)             
each such other Person shall have delivered to the Administrative Agent
and the Borrower all forms, if any, that are required to be delivered by such
other Person pursuant to Section 3.7; and

(v)               
the Borrower shall have delivered to the Administrative Agent with sufficient
copies for each Lender a certificate of a Financial Officer demonstrating pro
forma compliance with the terms of this Credit Agreement through the Maturity
Date and the Administrative Agent shall have received such certificates and
other items as it shall reasonably request in connection with such increase.

Section 2.6               
Repayment of Loans; Evidence of Debt

(a)               
The Borrower hereby unconditionally promises to pay to the
Administrative Agent for the account of each Lender the then unpaid principal
amount of each Loan on the Maturity Date.

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

(c)               
The Administrative Agent shall maintain accounts in which it shall
record (i) the amount of each Loan made hereunder, the Type thereof and the
Interest Period, if any, applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to
each Lender hereunder and (iii) the amount of any sum received by the
Administrative Agent hereunder for the account of the Lenders and each Lender's
share thereof.

(d)               
The entries made in the accounts maintained pursuant to paragraphs (b)
or (c) of this Section shall, to the extent not inconsistent with any entries
made in the Notes, be prima facie evidence of the existence and amounts of the
obligations recorded therein, provided that the failure of any Lender or
the Administrative Agent to maintain such accounts or any error therein shall
not in any manner affect the obligation of the Borrower to repay the Loans in
accordance with the terms of this Credit Agreement.

(e)               
The Loans made by each Lender shall be evidenced by a Note payable to
the order of such Lender, substantially in the form of Exhibit D.

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Section 2.7               
Prepayment of Loans

(a)               
Voluntary Prepayments. The Borrower shall have the right at any
time and from time to time to prepay any Borrowing in whole or in part, subject
to the requirements of this Section. 

(b)               
Prepayments Resulting from the Reduction of the Total Commitments. 
In the event of any partial reduction or termination of the Commitments, then (i) at or prior to the date of such reduction or termination, the Administrative Agent
shall notify the Borrower and the Lenders of the sum of the Credit Exposures
after giving effect thereto and (ii) if such sum would exceed the total
Commitments after giving effect to such reduction or termination, then the
Borrower shall, on the date of such reduction or termination, prepay Borrowings
in an amount sufficient to eliminate such excess.

(c)               
Notice of Prepayment; Application of Prepayments. The Borrower
shall notify the Administrative Agent by telephone (confirmed by facsimile) of
any prepayment hereunder, (i) in the case of a prepayment of a Eurodollar
Borrowing, not later than 11:30 a.m., New York City time, three Business Days
before the date of prepayment or (ii) in the case of prepayment of an ABR
Borrowing, not later than 11:30 a.m., New York City time, on the date of the
prepayment.  Each such notice shall be irrevocable and shall specify the
prepayment date and the principal amount of each Borrowing or portion thereof
to be prepaid, provided that, if a notice of prepayment is given in
connection with a conditional notice of termination of the Commitments as
contemplated by Section 2.5, then such notice of prepayment may be
revoked if such notice of termination is revoked in accordance with Section
2.5. Promptly following receipt of any such notice relating to a Borrowing,
the Administrative Agent shall advise the Lenders of the contents thereof. Each
partial prepayment of any Borrowing under Section 2.7(a) shall, when
added to the amount of each concurrent reduction of the Commitments and
prepayment of Borrowings under such Sections, be in an integral multiple of
$1,000,000 and not less than $5,000,000 (or, if the outstanding principal
balance of the Revolving Loans is less that such minimum amount, then such
lesser outstanding principal balance, as the case may be).  Each prepayment
of a Borrowing shall be applied ratably to the Loans included in the prepaid
Borrowing.  Prepayments shall be accompanied by accrued interest to the extent
required by Section 3.1.

Section 2.8               
Letters of Credit

(a)               
General. Subject to the terms and conditions set forth herein,
the Borrower may request the issuance of Letters of Credit denominated in
dollars for its own account, in a form acceptable to the Administrative Agent
and the Issuing Bank, at any time and from time to time during the period from
the Closing Date to the tenth Business Day preceding the last day of the
Availability Period.  In the event of any inconsistency between the terms and
conditions of this Credit Agreement and the terms and conditions of any form of
letter of credit application or other agreement submitted by the Borrower to,
or entered into by the Borrower with, the Issuing Bank relating to any Letter
of Credit, the terms and conditions of this Credit Agreement shall control.

(b)               
Notice of Issuance; Amendment; Renewal; Extension; Certain Conditions.
To request the issuance of a New Letter of Credit (or the amendment, renewal or
extension of an outstanding Letter of Credit), the Borrower shall hand deliver
or facsimile (or transmit by electronic communication, if arrangements for
doing so have been approved by the Issuing Bank) to the Issuing Bank and the
Administrative Agent (not later than three Business Days before the requested
date of issuance, amendment, renewal or extension) a Credit Request
requesting the issuance of a New Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, and specifying the 

-22-

date of issuance,
amendment, renewal or extension (which shall be a Business Day), the date on
which such Letter of Credit is to expire (which shall comply with paragraph (c)
of this Section), the amount of such Letter of Credit, the name and address of
the beneficiary thereof and such other information as shall be necessary to
prepare, amend, renew or extend such Letter of Credit, provided that no
such notice shall be required in connection with the extension of an Evergreen
Letter of Credit.  If requested by the Issuing Bank, the Borrower also shall
submit a letter of credit application on the Issuing Bank's standard form in
connection with any request for a Letter of Credit.  A Letter of Credit shall
be issued, amended, renewed or extended only if (and, upon issuance, amendment,
renewal or extension of each Letter of Credit, the Borrower shall be deemed to represent
and warrant that), after giving effect to such issuance, amendment, renewal or
extension, (i) the LC Exposure shall not exceed the Letter of Credit Commitment
and (ii) the total Credit Exposures shall not exceed the total Commitments.

(c)               
Expiration Date. Each Letter of Credit shall expire at or prior
to the close of business on the earlier of (i) the date that is one year after
the date of the issuance of such Letter of Credit (or, in the case of any
renewal or extension thereof, one year after such renewal or extension), and
(ii) the date that is ten Business Days prior to the Maturity Date, provided
that any Letter of Credit may provide for the automatic renewal thereof for any
period (unless the Issuing Bank elects not to extend) so long as such period
ends (x) ten Business Days prior to the Maturity Date or (y) if the Borrower shall have deposited cash collateral with the Administrative Agent as required by
Section
2.8(i), ten Business Days prior to the date that is one year after the date
of the issuance of such Letter of Credit (or, in the case of any renewal or
extension thereof, one year after such renewal or extension).

(d)               
Participations. By the issuance of a New Letter of Credit or, in
the case of an Existing Letter of Credit, the execution and delivery of this Credit
Agreement (or an amendment to a Letter of Credit increasing the amount thereof)
and without any further action on the part of the Issuing Bank or the Lenders,
the Issuing Bank hereby grants to each Lender and each Lender hereby acquires
from the Issuing Bank, a participation in such Letter of Credit equal to such
Lender's Applicable Percentage of the aggregate amount available to be drawn
under such Letter of Credit. In consideration and in furtherance of the
foregoing, each such Lender hereby absolutely and unconditionally agrees to pay
to the Administrative Agent, for the account of the Issuing Bank, such Lender's
Applicable Percentage of each LC Disbursement made by the Issuing Bank and not
reimbursed by the Borrower on the date due as provided in paragraph (e) of this
Section, or of any reimbursement payment required to be refunded to the
Borrower for any reason.  Each such Lender acknowledges and agrees that its
obligation to acquire participations pursuant to this paragraph in respect of
Letters of Credit is absolute and unconditional and shall not be affected by
any circumstance whatsoever, including any amendment, renewal or extension of
any Letter of Credit or the occurrence and continuance of a Default or
reduction or termination of the Commitments, and that each such payment shall
be made without any offset, abatement, withholding or reduction whatsoever; provided
that no Lender shall be obligated to make any payment to the Administrative
Agent for any wrongful LC Disbursement made by the Issuing Bank as a result of
acts or omissions constituting willful misconduct or gross negligence on the
part of the Issuing Bank.

(e)               
Reimbursement If the Issuing Bank
shall make any LC Disbursement in respect of a Letter of Credit, then the
Issuing Bank shall either (i) notify the Borrower to reimburse the Issuing Bank
therefor, in which case the Borrower shall reimburse such LC Disbursement by
paying to the Administrative Agent an amount equal to such LC Disbursement and
any accrued interest thereon not later than 2:00 p.m. on the date that such LC
Disbursement is made, if the Borrower shall have received notice of such LC
Disbursement prior to 11:00 a.m. on such date, or if such notice has not been
received by the Borrower prior to such time on such date, then not later than
2:00 p.m. on the

-23-

Business Day immediately following the day that the Borrower
receives such notice, provided that, if the LC Disbursement is equal to
or greater than $1,000,000, the Borrower may, subject to the conditions of
borrowing set forth herein, request in accordance with Section 2.3 or
this Section 2.8 that such payment be financed with an ABR Borrowing in
an equivalent amount and, to the extent so financed, the Borrower's obligation
to make such payment shall be discharged and replaced by the resulting ABR
Borrowing, and/or (ii) notify the Administrative Agent that the Issuing Bank is
requesting that the Lenders make an ABR Borrowing in an amount equal to such LC
Disbursement and any accrued interest thereon, in which case (A) the
Administrative Agent shall notify each Lender of the details thereof and of the
amount of such Lender's Loan to be made as part of such ABR Borrowing, and (B)
each Lender shall, whether or not any Default shall have occurred and be
continuing, any representation or warranty shall be accurate, any condition to
the making of any Loan hereunder shall have been fulfilled, or any other matter
whatsoever, make the Loan to be made by it under this paragraph by wire
transfer of immediately available funds to the account of the Administrative
Agent most recently designated by it for such purpose by notice to the Lenders
on (1) the Business Day that such Lender receives such notice, if such notice
is received prior to 12:00 noon, New York City time, on the day of receipt or
(2) the Business Day immediately following the day that such Lender receives
such notice, if such notice is not received prior to such time on the day of
receipt.  Such Loans shall, for all purposes hereof, be deemed to be an ABR
Borrowing referred to in Section 2.2(a) and made pursuant to Section
2.3, and the Lenders obligations to make such Loans shall be absolute and
unconditional. The Administrative Agent will make such Loans available to the
Issuing Bank by promptly crediting or otherwise transferring the amounts so
received, in like funds, to the Issuing Bank for the purpose of repaying in
full the LC Disbursement and all accrued interest thereon.

(f)                
Obligations Absolute. The Borrower's obligations to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Credit Agreement under any and all circumstances
whatsoever and irrespective of (i) any lack of validity or enforceability of
any Letter of Credit or any Loan Document, or any term or provision therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged,
fraudulent, insufficient or invalid in any respect or any statement therein
being untrue or inaccurate in any respect, (iii) payment by the Issuing Bank under a Letter of Credit against presentation of a draft or other document
that does not comply with the terms of such Letter of Credit, (iv) any amendment or waiver of or any consent to departure from all or any of the
provisions of any Letter of Credit or any Loan Document, (v) the existence of any claim, set‐off, defense or other right that the Borrower, any other
party guaranteeing, or otherwise obligated with, such Borrower, any Subsidiary
or other Affiliate thereof or any other Person may at any time have against the
beneficiary under any Letter of Credit, any Credit Party or any other Person,
whether in connection with this Credit Agreement, any other Loan Document or
any other related or unrelated agreement or transaction, or (vi) any other act or omission to act or delay of any kind of any Credit Party or any
other Person or any other event or circumstance whatsoever, whether or not
similar to any of the foregoing, that might, but for the provisions of this
Section, constitute a legal or equitable discharge of, or provide a right of
set‐off against, the Borrower's obligations hereunder.  Neither any
Credit Party nor any of their respective Related Parties shall have any
liability or responsibility by reason of or in connection with the issuance or
transfer of any Letter of Credit or any payment or failure to make any payment
thereunder (irrespective of any of the circumstances referred to in the
preceding sentence), or any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under or
relating to any Letter of Credit (including any document required to make a
drawing thereunder), any error in interpretation of technical terms or any
consequence arising from causes beyond the control of the Issuing Bank; provided
that the foregoing shall not be construed to excuse the Issuing Bank from
liability to the Borrower to the extent of any direct damages (as opposed to

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consequential damages, claims in respect of which are hereby waived by the
Borrower to the extent permitted by applicable law) suffered by the Borrower
that are caused by the Issuing Bank's failure to exercise care when determining
whether drafts and other documents presented under a Letter of Credit comply
with the terms thereof. The parties hereto expressly agree that, in the absence
of gross negligence or willful misconduct on the part of the Issuing Bank (as
finally determined by a court of competent jurisdiction), the Issuing Bank
shall be deemed to have exercised care in each such determination. In
furtherance of the foregoing and without limiting the generality thereof, the
parties agree that, with respect to documents presented which appear on their
face to be in substantial compliance with the terms of a Letter of Credit, the
Issuing Bank may, in its sole discretion, either accept and make payment upon
such documents without responsibility for further investigation, regardless of
any notice or information to the contrary, or refuse to accept and make payment
upon such documents if such documents are not in strict compliance with the
terms of such Letter of Credit.

(g)               
Disbursement Procedures. The Issuing Bank shall, promptly
following its receipt thereof, examine all documents purporting to represent a
demand for payment under a Letter of Credit. The Issuing Bank shall promptly
notify (which may include telephonic notice, promptly confirmed by facsimile)
the Administrative Agent and the Borrower of such demand for payment and
whether the Issuing Bank has made or will make an LC Disbursement thereunder; provided
that any failure to give or delay in giving such notice shall not relieve the
Borrower of its obligation to reimburse the Issuing Bank and the Lenders with
respect to any such LC Disbursement.

(h)               
Interim Interest. If the Issuing Bank shall make any LC
Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in
full on the date such LC Disbursement is made, the unpaid amount thereof shall
bear interest, for each day from and including the date such LC Disbursement is
made to but excluding the date that the Borrower reimburses such LC
Disbursement, at the rate per annum then applicable to ABR Loans; provided
that, if the Borrower fails to reimburse such LC Disbursement when due pursuant
to paragraph (e) of this Section, then Section 3.1(b) shall apply.
Interest accrued pursuant to this paragraph shall be for the account of the
Issuing Bank, except that interest accrued on and after the date of payment by
any Lender pursuant to paragraph (e) of this Section to reimburse the Issuing
Bank shall be for the account of such Lender to the extent of such payment.

(i)                 
Cash Collateral. In the event that (i) an Event of Default shall occur and be continuing or (ii) any Letters of Credit are outstanding on or
after the tenth Business Day prior to the Maturity Date (or any LC
Disbursements remain unreimbursed on or after such date), the Borrower shall
deposit with the Administrative Agent in immediately available funds on the
Business Day on which it receives notice from the Administrative Agent or
Required Lenders demanding the deposit of cash collateral in the case of clause
(i), or on or before the tenth Business Day prior to the Maturity Date in the
case of clause (ii), an amount equal to the Required Deposit Amount, which
amount shall be held by the Administrative Agent as cash collateral pursuant to
a cash collateral agreement in form and substance satisfactory to the
Administrative Agent and the Issuing Bank to secure the Borrower's
reimbursement obligations with respect to LC Disbursements; provided
that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without
demand or other notice of any kind, upon the occurrence of any Event of Default
described in clause (h) or (i) of Article 8.  Such deposit shall be held
by the Administrative Agent as collateral for the payment and performance of
the obligations of the Borrower under this Credit Agreement. The Administrative
Agent shall have exclusive dominion and control, including the exclusive right
of withdrawal, over such account. Such deposit shall not bear interest, nor
shall the Administrative Agent be under any obligation whatsoever to invest the
same, provided that, at the request of the Borrower, such deposit shall
be invested by the Administrative Agent in direct short 

-25-

term obligations of, or
short term obligations the principal of and interest on which are unconditionally
guaranteed by, the United States of America, in each case maturing no later
than the expiry date of the Letter of Credit giving rise to the relevant LC
Exposure.  Interest or profits, if any, on such investments shall accumulate in
such account.  Moneys in such account shall be applied by the Administrative
Agent to reimburse the Issuing Bank for LC Disbursements for which it has not
been reimbursed and, to the extent not so applied, shall be held for the
satisfaction of the reimbursement obligations of the Borrower for the LC
Exposure at such time or, if the maturity of the Loans has been accelerated
(but subject to the consent of Required Lenders), be applied to satisfy other
obligations of the Borrower under this Credit Agreement. If the Borrower is
required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not applied as
aforesaid) shall be returned to the Borrower within three Business Days after
all Events of Default have been cured or waived.  If the Borrower is required
to provide cash collateral hereunder as a result of clause (ii) of the first
sentence of this subsection, the amount thereof (to the extent not applied as
aforesaid) shall be returned to the Borrower when the LC Exposure is zero and
all Letters of Credit shall have been returned to the Issuing Bank and shall
have been cancelled.

Section 2.9               
Payments Generally; Pro Rata Treatment; Sharing of Set‐offs

(a)               
The Borrower shall make each payment required to be made by it hereunder
or under any other Loan Document (whether of principal of Loans, LC
Disbursements, interest or fees, or of amounts payable under Sections 3.5,
3.6, 3.7 or 10.3, or otherwise) prior to 1:00 p.m., New
York City time, on the date when due, in immediately available funds, without
set‐off or counterclaim. Any amounts received after such time on any date
may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating interest
thereon. All such payments shall be made to the Administrative Agent at its
office at One Wall Street, New York, New York, or such other office as to which
the Administrative Agent may notify the other parties hereto, except payments
to be made to the Issuing Bank as expressly provided herein and except that
payments pursuant to Sections 3.5, 3.6, 3.7 and 10.3
shall be made directly to the Persons entitled thereto. The Administrative
Agent shall distribute any such payments received by it for the account of any
other Person to the appropriate recipient promptly following receipt thereof.
If any payment hereunder shall be due on a day that is not a Business Day, the
date for payment shall be extended to the next succeeding Business Day, and, in
the case of any payment accruing interest, interest thereon shall be payable
for the period of such extension. All payments hereunder shall be made in
dollars. 

(b)               
Each Borrowing, each payment or prepayment of principal of any
Borrowing, each payment of interest on the Loans, each payment of fees, each
reduction of the Commitments and each conversion of any Borrowing to or
continuation of any Borrowing as a Borrowing of any Type shall be allocated pro
rata among the Lenders in accordance with their respective applicable
Commitments (or, if such Commitments shall have expired or been terminated, in
accordance with the respective principal amounts of their outstanding Loans).  Each
Lender agrees that in computing such Lender's portion of any Borrowing to be
made hereunder, the Administrative Agent may, in its discretion, round each
Lender's percentage of such Borrowing to the next higher or lower whole dollar
amount.  If at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal of Loans,
unreimbursed LC Disbursements, interest, fees and commissions then due
hereunder, such funds shall be applied (i) first, towards payment of interest, fees and commissions then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of interest, fees and
commissions then due to such parties and (ii) second, towards payment of principal of Loans and unreimbursed LC Disbursements then due hereunder,
ratably 

 

-26-

among the parties entitled thereto in accordance with the amounts of
principal of Loans and unreimbursed LC Disbursements then due to such parties.

(c)               
If any Lender shall, by exercising any right of set‐off or counterclaim
or otherwise, obtain payment in respect of any principal of, or interest on,
any of its Loans or participations in LC Disbursements resulting in such Lender
receiving payment of a greater proportion of the aggregate amount of its Loans
and participations in LC Disbursements and accrued interest thereon than the
proportion received by any other Lender, then the Lender receiving such greater
proportion shall purchase (for cash at face value) participations in the Loans
and participations in LC Disbursements of other Lenders to the extent necessary
so that the benefit of all such payments shall be shared by the Lenders ratably
in accordance with the aggregate amount of principal of, and accrued interest
on, their respective Loans and participations in LC Disbursements, provided
that (i) if any such participations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations shall be
rescinded and the purchase price restored to the extent of such recovery,
without interest, and (ii) the provisions of this paragraph shall not be
construed to apply to any payment made by the Borrower pursuant to and in
accordance with the express terms of this Credit Agreement or any payment
obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Loans or participations in LC Disbursements to any
assignee or participant, other than to the Borrower or any Subsidiary or
Affiliate thereof (as to which the provisions of this paragraph shall apply).
The Borrower consents to the foregoing and agrees, to the extent it may
effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against the
Borrower rights of set‐off and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of the Borrower
in the amount of such participation.

(d)               
Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to the Administrative
Agent for the account of the applicable Credit Parties hereunder that the
Borrower will not make such payment, the Administrative Agent may assume that
the Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to such Credit Parties the amount
due. In such event, if the Borrower has not in fact made such payment, then
each such Credit Party severally agrees to repay to the Administrative Agent
forthwith on demand the amount so distributed to such Credit Party with
interest thereon, for each day from and including the date such amount is
distributed to it to but excluding the date of payment to the Administrative
Agent, at the greater of the Federal Funds Effective Rate and a rate determined
by the Administrative Agent in accordance with banking industry rules on
interbank compensation.

(e)               
If any Credit Party shall fail to make any payment required to be made
by it pursuant to Section 2.4(b) or 2.8(d), then the
Administrative Agent may, in its discretion (notwithstanding any contrary
provision hereof), apply any amounts thereafter received by the Administrative
Agent for the account of such Credit Party to satisfy such Credit Party's
obligations under such Sections until all such unsatisfied obligations are
fully paid.

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Article
3.

INTEREST,
FEES, YIELD PROTECTION, ETC.

Section 3.1               
Interest

(a)               
The Loans comprising each ABR Borrowing shall bear interest at the
Alternate Base Rate. The Loans comprising each Eurodollar Borrowing shall bear
interest at the Adjusted LIBO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Margin. 

(b)               
Notwithstanding the foregoing, if any principal of or interest on any
Loan, any reimbursement obligation in respect of any LC Disbursement or any fee
or other amount payable by the Borrower hereunder is not paid when due, whether
at stated maturity, upon acceleration or otherwise, such overdue amount shall
bear interest, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate otherwise
applicable to such Loan as provided in the preceding paragraph of this Section
or (ii) in the case of any other amount, 2% plus the rate applicable to
ABR Borrowings as provided in the preceding paragraph of this Section. 

(c)               
Accrued interest on each Loan shall be payable in arrears on each
Interest Payment Date for such Loan, provided that (i) interest accrued pursuant to paragraph (b) of this Section shall be payable on
demand, (ii) in the event of any repayment or prepayment of any Loan, accrued
interest on the principal amount repaid or prepaid shall be payable on the date
of such repayment or prepayment, and (iii) in the event of any conversion of
any Eurodollar Loan prior to the end of the current Interest Period therefor,
accrued interest on such Loan shall be payable on the effective date of such
conversion.(d)               
All interest hereunder shall be computed on the basis of a year of 360
days, except that interest computed by reference to the Alternate Base Rate at
times when the Alternate Base Rate is based on the Prime Rate shall be computed
on the basis of a year of 365 days (or 366 days in a leap year), and in each
case shall be payable for the actual number of days elapsed (including the
first day but excluding the last day). The applicable Alternate Base Rate,
Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative
Agent, and such determination shall be conclusive absent clearly demonstrable
error.  The Administrative Agent shall, as soon as practicable, notify the
Borrower and the Lenders of the effective date and the amount of each such
change in the Prime Rate, but any failure to so notify shall not in any manner
affect the obligation of the Borrower to pay interest on the Loans in the
amounts and on the dates required.

Section 3.2              
 Interest Elections Relating to Borrowings(a)               
Each Borrowing initially shall be of the Type specified in the applicable Credit
Request and, in the case of a Eurodollar Borrowing, shall have an initial
Interest Period as specified in such Credit Request. Thereafter, the Borrower
may elect to convert such Borrowing to a different Type or to continue such
Borrowing and, in the case of a Eurodollar Borrowing, may elect Interest Periods
therefor, all as provided in this Section. The Borrower may elect different
options with respect to different portions of the affected Borrowing, in which
case each such portion shall be allocated ratably among the Lenders holding the
Loans comprising such Borrowing, and the Loans comprising each such portion
shall be considered a separate Borrowing. 

-28-

(b)               
To make an election pursuant to this Section, the Borrower shall deliver
to the Administrative Agent a signed Interest Election Request in a form
approved by the Administrative Agent (or notify the Administrative Agent by
telephone, to be promptly confirmed by delivery to the Administrative Agent of
a signed Interest Election Request) by the time that a Credit Request would be
required under Section 2.3 if the Borrower were requesting a Borrowing
of the Type resulting from such election to be made on the effective date of
such election.

(c)               
Each such telephonic and written Interest Election Request shall be
irrevocable and shall specify the following information:

(i)                 
the Borrowing to which such Interest Election Request applies and, if
different options are being elected with respect to different portions thereof,
the portions thereof to be allocated to each resulting Borrowing (in which case
the information to be specified pursuant to clauses (iii) and (iv) of this
paragraph shall be specified for each resulting Borrowing);

(ii)               
the effective date of the election made pursuant to such Interest
Election Request, which shall be a Business Day;

(iii)              
whether the resulting Borrowing is to be an ABR Borrowing or a
Eurodollar Borrowing; and

(iv)             
if the resulting Borrowing is a Eurodollar Borrowing, the Interest
Period to be applicable thereto after giving effect to such election, which
shall be a period contemplated by the definition of the term "Interest Period".

If any such Interest Election Request requests a
Eurodollar Borrowing but does not specify an Interest Period, then the Borrower
shall be deemed to have selected an Interest Period of one month's duration.

(d)               
Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of
such Lender's portion of each resulting Borrowing.

(e)               
If the Borrower fails to deliver a timely Interest Election Request
prior to the end of the Interest Period applicable thereto, then, unless such
Borrowing is repaid as provided herein, at the end of such Interest Period,
such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any
contrary provision hereof, if an Event of Default has occurred and is
continuing and the Administrative Agent, at the request of the Required
Lenders, so notifies the Borrower, then, so long as an Event of Default is
continuing, (i) no outstanding Borrowing may be converted to or continued as a
Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be
converted to an ABR Borrowing at the end of the Interest Period applicable
thereto.

Section 3.3               
Fees 

(a)               
The Borrower agrees to pay to the Administrative Agent for the account
of each Lender, a facility fee, which shall accrue at a rate per annum equal to
the Applicable Margin on the daily amount of the Commitment of such Lender
(regardless of usage) during the period from and including the date on which
this Credit Agreement becomes effective pursuant to Section 10.6 to but
excluding the date on which such Commitment terminates; provided that,
if such Lender continues to have any Credit Exposure after its Commitment
terminates, then such facility fee shall continue to 

-29-

accrue on the daily amount
of such Lender's Credit Exposure from and including the date on which such
Lender's Commitment terminates to but excluding the date on which such Lender
ceases to have any Credit Exposure. Accrued facility fees shall be payable in
arrears on the last day of March, June, September and December of each year,
each date on which the Commitments are permanently reduced and on the date on
which the Commitments terminate, commencing on the first such date to occur
after the Agreement Date, provided that all unpaid facility fees shall
be payable on the date on which the Commitments terminate and provided further
that facility fees which accrue after the Commitments terminate shall be
payable on demand. All facility fees shall be computed on the basis of a year of
360 days and shall be payable for the actual number of days elapsed (including
the first day but excluding the last day).
(b)               
The Borrower agrees to pay (i) to the Administrative Agent for the account of each Lender a participation fee with respect to its participations in
Letters of Credit, which shall accrue at a rate per annum equal to the
Applicable Margin on the average daily amount of such Lender's LC Exposure
(excluding any portion thereof attributable to unreimbursed LC Disbursements)
during the period from and including the Closing Date to but excluding the
later of the date on which such Lender's Commitment terminates and the date on
which such Lender ceases to have any LC Exposure and (ii) to the Issuing Bank for its own account a fronting fee, which shall accrue at the rate or rates per
annum separately agreed upon between the Borrower and the Issuing Bank on the
average daily amount of the LC Exposure (excluding any portion thereof
attributable to unreimbursed LC Disbursements) during the period from and
including the Closing Date to but excluding the later of the date of
termination of the Commitments and the date on which there ceases to be any LC
Exposure, as well as the Issuing Bank's standard fees with respect to the
issuance, amendment, renewal or extension of any Letter of Credit or processing
of drawings thereunder.  Accrued participation fees and fronting fees shall be
payable in arrears on the last day of March, June, September and December of
each year, commencing on the first such date to occur after the date hereof; provided
that all such fees shall be payable on the date on which the Commitments
terminate and any such fees accruing after the date on which the Commitments
terminate shall be payable on demand.  Any other fees payable to the Issuing
Bank pursuant to this paragraph shall be payable within ten days after demand. 
All participation fees and fronting fees shall be computed on the basis of a year
of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).(c)               
The Borrower agrees to pay to the Administrative Agent for the account
of each Lender during the period from and including the date on which this
Credit Agreement becomes effective pursuant to Section 10.6 to but excluding
the date on which such Commitment terminates; a utilization fee which shall
accrue at a rate per annum equal to 0.125% on the aggregate Credit Exposure for
each day that such aggregate Credit Exposure shall exceed 50.0% of the
Commitments of all Lenders, provided that, if such Lender continues to
have any Credit Exposure after its Commitment terminates, then such utilization
fee shall continue to accrue on the daily amount of such Lender's Credit
Exposure from and including the date on which such Lender's Commitment
terminates to but excluding the date on which such Lender ceases to have any
Credit Exposure. Accrued utilization fees shall be payable in arrears on the
last day of March, June, September and December of each year, each date on
which the Commitments are permanently reduced and on the date on which the
Commitments terminate, commencing on the first such date to occur after the
Agreement Date, provided that all unpaid utilization fees shall be
payable on the date on which the Commitments terminate and provided
further that utilization fees which accrue after the Commitments terminate shall
be payable on demand. All utilization fees shall be computed on the basis of a
year of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).

-30-

(d)               
The Borrower agrees to pay to each Credit Party, for its own account,
fees and other amounts payable in the amounts and at the times separately
agreed upon in writing between the Borrower and such Credit Party.
(e)               
All fees and other amounts payable hereunder shall be paid on the dates
due, in immediately available funds. Fees and other amounts paid shall not be
refundable under any circumstances.

Section 3.4               
Alternate Rate of Interest
If prior to the commencement of any Interest
Period for a Eurodollar Borrowing:
(a)    the
Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for
ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such
Interest Period; or(b)    the
Administrative Agent is advised by Required Lenders that the Adjusted LIBO Rate
or the LIBO Rate, as applicable, for such Interest Period will not adequately
and fairly reflect the cost of making or maintaining their Loans included in
such Borrowing for such Interest Period;

then the
Administrative Agent shall give notice thereof to the Borrower and the Lenders
by telephone (confirmed by facsimile) or facsimile as promptly as practicable
thereafter and, until the Administrative Agent notifies the Borrower and the
Lenders that the circumstances giving rise to such notice no longer exist, (i)
any Interest Election Request that requests the conversion of any Borrowing to,
or continuation of any Borrowing as, a Eurodollar Borrowing shall be
ineffective, and (ii) if any Credit Request requests a Eurodollar Borrowing,
such Borrowing shall be made as an ABR Borrowing.
Section 3.5               
Increased Costs; Illegality(a)               
If any Change in Law shall:

(i)                 
impose, modify or deem applicable any reserve, special deposit or
similar requirement against assets of, deposits with or for the account of, or
credit extended by, any Credit Party (except any such reserve requirement reflected
in the Adjusted LIBO Rate); or

(ii)               
impose on any Credit Party or the London interbank market any other
condition affecting this Credit Agreement, any Eurodollar Loans made by such
Credit Party or any participation therein or any Letter of Credit or participation
therein;

and the result of any of the foregoing shall be to
increase the cost to such Credit Party of making or maintaining any Eurodollar
Loan or the cost to such Credit Party of issuing, participating in or
maintaining any Letter of Credit hereunder or to increase the cost to such
Credit Party or to reduce the amount of any sum received or receivable by such
Credit Party hereunder (whether of principal, interest or otherwise), then the
Borrower will pay to such Credit Party such additional amount or amounts as
will compensate such Credit Party for such additional costs incurred or
reduction suffered.

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(b)               
If any Credit Party determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on
such Credit Party's capital or on the capital of such Credit Party's holding
company, if any, as a consequence of this Credit Agreement or the Loans made,
the Letters of Credit issued or the participations therein held, by such Credit
Party to a level below that which such Credit Party or such Credit Party's
holding company could have achieved but for such Change in Law (taking into
consideration such Credit Party's policies and the policies of such Credit
Party's holding company with respect to capital adequacy), then from time to
time the Borrower will pay to such Credit Party such additional amount or
amounts as will compensate such Credit Party or such Credit Party's holding
company for any such reduction suffered.

(c)               
A certificate of a Credit Party setting forth the amount or amounts
necessary to compensate such Credit Party or its holding company, as
applicable, as specified in paragraph (a) or (b) of this Section shall be
delivered to the Borrower and shall be conclusive absent manifest error. The
Borrower shall pay such Credit Party the amount shown as due on any such
certificate within 10 days after receipt thereof. 
(d)               
Failure or delay on the part of any Credit Party to demand compensation
pursuant to this Section shall not constitute a waiver of such Credit Party's
right to demand such compensation; provided that the Borrower shall not
be required to compensate a Credit Party pursuant to this Section for any
increased costs or reductions incurred more than 90 days prior to the date that
such Credit Party notifies the Borrower of the Change in Law giving rise to
such increased costs or reductions and of such Credit Party's intention to
claim compensation therefor; and provided further that, if the
Change in Law giving rise to such increased costs or reductions is retroactive,
then the 90 day period referred to above shall be extended to include the
period of retroactive effect thereof. 
(e)               
Notwithstanding any other provision of this Credit Agreement, if, after
the Agreement Date, any Change in Law 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:

(i)                 
such Lender may declare that Eurodollar Loans will not thereafter (for
the duration of such unlawfulness) be made by such Lender hereunder (or be
continued for additional Interest Periods) and ABR Loans will not thereafter
(for such duration) be converted into Eurodollar Loans, whereupon any request
for a Eurodollar Borrowing or to convert an ABR Borrowing to a Eurodollar
Borrowing or to continue a Eurodollar Borrowing, as applicable, for an
additional Interest Period shall, as to such Lender only, be deemed a request
for an ABR Loan (or a request to continue an ABR Loan as such for an additional
Interest Period or to convert a Eurodollar Loan into an ABR Loan, as
applicable), unless such declaration shall be subsequently withdrawn; and

(ii)               
such Lender may require that all outstanding Eurodollar Loans made by it
be converted to ABR Loans, in which event all such Eurodollar Loans shall be
automatically converted to ABR Loans, as of the effective date of such notice
as provided in the last sentence of this paragraph. 

In the event any Lender shall exercise its rights under
clause (i) or (ii) of this paragraph, all payments and prepayments of principal
that 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 ABR Loans made by such Lender in lieu of,
or resulting from the 

 

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conversion of, such Eurodollar Loans, as applicable.  For
purposes of this paragraph, a notice to the Borrower by any Lender shall be
effective as to each Eurodollar Loan made by such Lender, if lawful, on the
last day of the Interest Period currently applicable to such Eurodollar Loan;
in all other cases such notice shall be effective on the date of receipt by the
Borrower.
Section 3.6               
Break Funding Payments
In the event of (a) the payment or prepayment (voluntary or otherwise) of any principal of any Eurodollar Loan other than on the
last day of an Interest Period applicable thereto (including as a result of an
Event of Default), (b) the conversion of any Eurodollar Loan other than on the
last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurodollar Loan on the date specified in any
notice delivered pursuant hereto (regardless of whether such notice may be
revoked under Section 2.7(c) and is revoked in accordance therewith), or
(d) the assignment of any Eurodollar Loan other than on the last day of the
Interest Period or maturity date applicable thereto as a result of a request by
the Borrower pursuant to Section 3.8, then, in any such event, the
Borrower shall compensate each Lender for the loss, cost and expense
attributable to such event. In the case of a Eurodollar Loan, such loss, cost
or expense to any Lender shall be deemed to include an amount determined by
such Lender to be the excess, if any, of (i) the amount of interest that would have accrued on the principal amount of such Loan had such event not
occurred, at the Adjusted LIBO Rate that would have been applicable to such
Loan, for the period from the date of such event to the last day of the then
current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period
for such Loan), over (ii) the amount of interest that would accrue on such
principal amount for such period at the interest rate that such Lender would
bid were it to bid, at the commencement of such period, for dollar deposits of
a comparable amount and period from other banks in the eurodollar market. A
certificate of any Lender setting forth any amount or amounts that such Lender
is entitled to receive pursuant to this Section shall be delivered to the
Borrower and shall be conclusive absent manifest error. The Borrower shall pay
such Lender the amount shown as due on any such certificate within 10 days
after receipt thereof.

Section 3.7               
Taxes(a)               
Payments to be Free and Clear. Provided that all documentation,
if any, then required to be delivered by any Lender or the Administrative Agent
pursuant to Section 3.7(c) has been delivered, all sums payable by the
Borrower under the Loan Documents shall be paid free and clear of and (except
to the extent required by law) without any deduction or withholding on account
of any Tax (other than a Tax on the Overall Net Income of any Lender (for which
payment need not be free and clear, but no deduction or withholding shall be
made unless then required by applicable law)) imposed, levied, collected,
withheld or assessed by or within the United States or any political subdivision
in or of the United States or any other jurisdiction from or to which a payment
is made by or on behalf of the Borrower or by any federation or organization of
which the United States or any such jurisdiction is a member at the time of
payment.

(b)               
Grossing up of Payments. If the Borrower or any other Person is
required by law to make any deduction or withholding on account of any such Tax
from any sum paid or payable by the Borrower to the Administrative Agent or any
Lender under any of the Loan Documents:

(i)                 
the Borrower shall notify the Administrative Agent and such Lender of
any such requirement or any change in any such requirement as soon as the
Borrower becomes aware of it;

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(ii)               
the Borrower shall pay any such Tax before the date on which penalties
attach thereto, such payment to be made (if the liability to pay is imposed on
the Borrower) for its own account or (if that liability is imposed on the
Administrative Agent or such Lender, as the case may be) on behalf of and in
the name of the Administrative Agent or such Lender, as the case may be;

(iii)              
the sum payable by the Borrower to the Administrative Agent or a Lender
in respect of which the relevant deduction, withholding or payment is required
shall be increased to the extent necessary to ensure that, after the making of
that deduction, withholding or payment, the Administrative Agent or such
Lender, as the case may be, receives on the due date therefor a net sum equal
to what it would have received had no such deduction, withholding or payment
been required or made; and

(iv)             
within 30 days after paying any sum from which it is required by law to
make any deduction or withholding, and within 30 days after the due date of
payment of any Tax which it is required by clause (ii) above to pay, the
Borrower shall deliver to the Administrative Agent and the applicable Lender
evidence satisfactory to the other affected parties of such deduction,
withholding or payment and of the remittance thereof to the relevant
Governmental Authority;

(v)               
provided that no additional amount shall be required to be paid to any
Lender under clause (iii) above except to the extent that any change after the
date hereof (in the case of each Lender listed on the signature pages hereof)
or after the date of the Assignment and Acceptance Agreement pursuant to which
such Lender became a Lender (in the case of each other Lender) if any such
requirement for a deduction, withholding or payment as is mentioned therein
shall result in an increase in the rate of such deduction, withholding or
payment from that in effect at the date of this Agreement or at the date of
such Assignment and Acceptance Agreement, as the case may be, in respect of
payments to such Lender, and provided further that any Lender claiming
any additional amounts payable pursuant to this Section 3.7 shall use
reasonable efforts (consistent with its internal policy and legal and
regulatory restrictions) to change the jurisdiction of its Applicable Lending
Office or take other appropriate action if the making of such a change or the
taking of such action, as the case may be, would avoid the need for, or reduce
the amount of, any such additional amounts that may thereafter accrue and would
not, in the reasonable judgment of such Lender, be otherwise disadvantageous to
such Lender.

(c)               
Tax Certificates. Each Foreign Lender shall deliver to the
Borrower (with a copy to the Administrative Agent), on or prior to the Closing
Date (in the case of each Foreign Lender listed on the signature pages hereof)
or on the effective date of the Assignment and Acceptance Agreement pursuant to
which it becomes a Lender (in the case of each other Foreign Lender), and at
such other times as may be necessary in the determination of the Borrower or
the Administrative Agent (each in the reasonable exercise of its discretion),
including upon the occurrence of any event requiring a change in the most
recent counterpart of any form set forth below previously delivered by such
Foreign Lender to the Borrower, such certificates, documents or other evidence,
properly completed and duly executed by such Foreign Lender (i) two accurate
and complete original signed copies of Internal Revenue Service Form W8‐BEN
or Form W8‐ECI, or successor applicable form and (ii) an Internal Revenue
Service Form W‐8 or W‐9 (or any other certificate or statement of
exemption required by Treasury Regulations Section 1.1441 4(a) or Section
1.1441 6(c) or any successor thereto) to establish that such Foreign Lender is
not subject to deduction or withholding of United States federal income tax
under Section 1441 or 1442 of the Code or otherwise (or under any 

-34-

comparable
provisions of any successor statute) with respect to any payments to such
Foreign Lender of principal, interest, fees or other amounts payable under any
of the Loan Documents.  The Borrower shall not be required to pay any
additional amount to any such Foreign Lender under Section 3.7(b)(iii)
if such Foreign Lender shall have failed to satisfy the requirements of the
immediately preceding sentence; provided that if such Foreign Lender
shall have satisfied such requirements on the Closing Date (in the case of each
Foreign Lender listed on the signature pages hereof) or on the effective date
of the Assignment and Acceptance Agreement pursuant to which it becomes a
Lender (in the case of each other Foreign Lender), nothing in this Section
shall relieve the Borrower of its obligation to pay any additional amounts
pursuant to Section 3.7(b)(iii) in the event that, as a result of any
change in applicable law, such Foreign Lender is no longer properly entitled to
deliver certificates, documents or other evidence at a subsequent date
establishing the fact that such Foreign Lender is not subject to withholding as
described in the immediately preceding sentence.

Section 3.8               
Mitigation ObligationsIn the event that (i) the Borrower becomes obligated to pay additional amounts to any Lender pursuant to
Section 3.5, Section 3.6 or Section
3.7, or (ii) any Lender defaults in its obligation to fund Loans hereunder
on two or more occasions, the Borrower may, within 60 days of the demand by
such Lender for such additional amounts or the relevant default by such Lender,
as the case may be, and subject to and in accordance with the provisions of Section
10.4, designate an Eligible Assignee (acceptable to the Administrative
Agent and the Issuing Bank) to purchase and assume all its interests, rights
and obligations under the Loan Documents, without recourse to or warranty by or
expense to, such Lender, for a purchase price equal to the outstanding
principal amount of such Lender's Loans plus any accrued but unpaid interest
thereon and accrued but unpaid facility fees, utilization fees and letter of
credit fees in respect of such Lender's Commitment and any other amounts
payable to such Lender hereunder, and to assume all the obligations of such
Lender hereunder, and, upon such purchase, such Lender shall no longer be a
party hereto or have any rights hereunder (except those that survive full repayment
hereunder) and shall be relieved from all obligations to the Borrower
hereunder, and the Eligible Assignee shall succeed to the rights and
obligations of such Lender hereunder.  The Borrower shall execute and deliver
to such Eligible Assignee a Note.  Notwithstanding anything herein to the
contrary, in the event that a Lender is replaced pursuant to this Section
3.8 as a result of the Borrower becoming obligated to pay additional
amounts to such Lender pursuant to Section 3.5, Section 3.6 or Section
3.7, such Lender shall be entitled to receive such additional amounts as if
it had not been so replaced.  

Article
4.

REPRESENTATIONS
AND WARRANTIES

The Borrower represents and warrants to the
Credit Parties that:

Section 4.1               
Organization; PowersEach of the Borrower and the Subsidiaries is
duly organized or formed, validly existing and in good standing under the laws
of the jurisdiction of its organization or formation, has all requisite power
and authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business
in, and is in good standing in, every jurisdiction where such qualification is
required.

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Section 4.2               
Authorization; Enforceability
The Transactions are within the
corporate powers of the Borrower and have been duly authorized by all necessary
corporate and, if required, equity holder action.  Each Loan Document has been
duly executed and delivered by the Borrower and constitutes a legal, valid and
binding obligation thereof, enforceable in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting creditors' rights generally and general principles of
equity.

Section 4.3               
Governmental Approvals; No Conflicts
The Transactions (i) do not require any consent or approval of, registration or filing with, or any other action by, any
Governmental Authority, except for (x) information filings to be made in the
ordinary course of business, which filings are not a condition to the
Borrower's performance under the Loan Documents, (y) the filing of the Credit
Agreement with the LPSC within 30 days after the Closing Date, provided
that the failure to so file the Credit Agreement does not affect the Borrower's
performance under the Loan Documents, and (z) such as have been obtained or
made and are in full force and effect and not subject to any appeals period,
provided that the LSPC Order  is subject to appeal until May 23, 2005, (ii) will not violate any applicable law or regulation or the charter, by laws or other
organizational documents of the Borrower or any order of any Governmental
Authority, (iii) will not violate or result in a default under any material
indenture, agreement or other instrument binding upon the Borrower or its
assets, or give rise to a right thereunder to require any payment to be made by
the Borrower, and (iv) will not result in the creation or imposition of any
Lien on any asset of the Borrower (other than Liens expressly permitted by Section
7.1).

Section 4.4               
Financial Condition; No Material Adverse Change(a)               
The Borrower has heretofore delivered to the Credit Parties copies of
its Form 10‐K for the fiscal year ended December 31, 2004, containing the
audited consolidated balance sheet of the Borrower and the Subsidiaries and the
related consolidated statements of income, members' equity and cash flows for
the fiscal years ending December 31, 2004, December 31, 2003 and December 31,
2002 (with the applicable related notes and schedules, the "Financial
Statements").  The Financial Statements have been prepared in accordance
with GAAP and fairly present the consolidated financial condition and results
of the operations of the Borrower as of the dates and for the periods indicated
therein. 

(b)               
Since December 31, 2004, each of the Borrower and the Subsidiaries has conducted its
business only in the ordinary course and there has been no Material Adverse
Change.
Section 4.5               
Properties

(a)               
Each of the Borrower and the Subsidiaries has, subject to Permitted
Encumbrances, good title to, or valid leasehold interests in, all its real and
personal property material to its business, except for minor defects in title
that do not interfere with its ability to conduct its business as currently
conducted or to utilize such properties for their intended purposes.
(b)               
Each of the Borrower and the Subsidiaries owns, possesses adequate
licenses or is otherwise entitled to use, all Intellectual Property material to
its business, and the use thereof by the Borrower and the Subsidiaries does not
infringe upon the rights of any other Person, except for any 

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failure to own or
have such rights or any such infringements that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

Section 4.6               
Litigation and Environmental Matters(a)               
There are no actions, suits or proceedings by or before any arbitrator
or Governmental Authority pending against or, to the knowledge of the Borrower,
threatened in writing against or affecting the Borrower or any of the
Subsidiaries (i) that, if adversely determined (and provided that there exists
a reasonable possibility of such adverse determination), could reasonably be
expected, individually or in the aggregate, to result in a Material Adverse
Effect (other than the Disclosed Matters), except that the commencement by the
Borrower, any of the Subsidiaries or any Governmental Authority of a rate
proceeding or earnings review before such Governmental Authority shall not
constitute such a pending or threatened action, suit or proceeding unless and
until such Governmental Authority has made a final determination thereunder
that could reasonably be expected to have a Material Adverse Effect, or (ii) that involve any Loan Document or the Transactions.

(b)               
Except for the Disclosed Matters and except with respect to any other
matters that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect:(i)                 
to the best knowledge of the Borrower, the properties owned, leased or
operated by the Borrower and the Subsidiaries (the "Properties") do not contain any Hazardous
Materials in amounts or concentrations which (i) constitute, or constituted a
violation of, (ii) require Remedial Action under, or (iii) could give rise to
liability under, Environmental Laws, which violations, Remedial Actions and
liabilities, in the aggregate, could reasonably be expected to result in a
Material Adverse Effect,

(ii)               
to the best knowledge of the Borrower, the Properties and all operations
of the Borrower and the Subsidiaries are in compliance in all material
respects, and in the last five years have been in compliance, with all
Environmental Laws, and all necessary Environmental Permits have been obtained
and are in effect, except to the extent that such non‐compliance or
failure to obtain any necessary permits, in the aggregate, could not reasonably
be expected to result in a Material Adverse Effect,(iii)              
to the best knowledge of the Borrower, there have been no Releases or
threatened Releases at, from, under or proximate to the Properties or otherwise
in connection with the current or former operations of the Borrower or the
Subsidiaries, which Releases or threatened Releases, in the aggregate, could
reasonably be expected to result in a Material Adverse Effect,

(iv)             
neither the Borrower nor any of the Subsidiaries has received any notice
directly or otherwise learned indirectly (through a Corporate Officer) of an
Environmental Claim in connection with the Properties or the current or former
operations of the Borrower or the Subsidiaries or with regard to any Person
whose liabilities for environmental matters the Borrower or the Subsidiaries
has retained or assumed, in whole or in part, contractually, by operation of
law or otherwise, which, in the aggregate, could reasonably be expected to
result in a Material Adverse Effect, nor do the Borrower or the Subsidiaries
have reason to believe that any such notice will be received or is being
overtly threatened, and
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(v)               
to the best knowledge of the Borrower, Hazardous Materials have not been
transported from the Properties, nor have Hazardous Materials been generated,
treated, stored or disposed of at, on or under any of the Properties in a
manner that could give rise to liability under any Environmental Law, nor have
the Borrower or the Subsidiaries retained or assumed any liability,
contractually, by operation of law or otherwise, with respect to the
generation, treatment, storage or disposal of Hazardous Materials, which
transportation, generation, treatment, storage or disposal, or retained or assumed
liabilities, in the aggregate, could reasonably be expected to result in a
Material Adverse Effect.(c)               
Since the Agreement Date, there has been no change in the status of the
Disclosed Matters that, individually or in the aggregate, has resulted in, or
materially increased the likelihood of, a Material Adverse Effect.

Section 4.7               
Compliance with Laws and AgreementsEach of the Borrower and the Subsidiaries is in
compliance with all laws, regulations and orders of any Governmental Authority
applicable to it or its property and all indentures, agreements and other
instruments binding upon it or its property, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect (other than Disclosed Matters).  No Default has
occurred and is continuing.

Section 4.8               
Investment and Holding Company StatusNeither the Borrower nor any of the
Subsidiaries is (i) an "investment company" or a company "controlled" by an
"investment company" as defined in, or is otherwise subject to regulation
under, the Investment Company Act of 1940, as amended, or (ii) a "holding
company", or an "affiliate" or "subsidiary company" of a "holding company", as
those terms are defined in the Public Utility Holding Company Act of 1935, as
amended, in each case which is subject to registration thereunder.  

Section 4.9               
TaxesEach of the Borrower and the Subsidiaries has
timely filed or caused to be filed all Tax returns and reports required to have
been filed and has paid or caused to be paid all Taxes required to have been
paid by it, except (i) Taxes that are being contested in good faith by
appropriate proceedings and for which the Borrower or such Subsidiary, as
applicable, has set aside on its books adequate reserves or (ii) to the extent that the failure to do so could not reasonably be expected to result
in a Material Adverse Effect.

Section 4.10           
ERISAEach of the Borrower and its ERISA Affiliates
is in compliance in all material respects with the applicable provisions of
ERISA and the Code and the regulations and published interpretations thereunder
except for any such failure that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect.  No ERISA Event
has occurred or is reasonably expected to occur that, when taken together with
all other such ERISA Events for which liability is reasonably expected to
occur, could reasonably be expected to result in a Material Adverse Effect. The
present value of all accumulated benefit obligations under each Plan (based on
the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most audited recent financial
statements reflecting such amounts, exceed by more than 

-38-

$10,000,000 the fair
market value of the assets of such Plan, and the present value of all
accumulated benefit obligations of all underfunded Plans (based on the
assumptions used for purposes of Statement of Financial Accounting Standards
No. 87) did not, as of the date of the most recent audited financial statements
reflecting such amounts, exceed by more than $10,000,000 the fair market value
of the assets of all such underfunded Plans.  

Section 4.11           
DisclosureThe Borrower has disclosed to the Credit
Parties all agreements, instruments and corporate or other restrictions to
which it or any of the Subsidiaries is subject, and all other matters known to
it, that, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect.  None of the reports, financial
statements, certificates or other information furnished by or on behalf of the
Borrower or any Subsidiary to any Credit Party in connection with the
negotiation of the Loan Documents or delivered thereunder when taken as a whole
(as modified or supplemented by other information so furnished) contains any
material misstatement of fact or omits to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they
were made, not materially misleading, provided that, to the extent any
such reports, financial statements, certificates or other information was based
upon or constitutes a forecast or a projection, the Borrower represents only
that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time.

Section 4.12           
Subsidiaries
As of the Agreement Date, the
Borrower has only the Subsidiaries set forth on Schedule 4.12, which
Schedule sets forth with respect to each Subsidiary, the identity of each
Person which owns Equity Interests in such Subsidiary and the percentage of the
issued and outstanding Equity Interests owned by each such Person.  The shares
of each corporate Subsidiary are duly authorized, validly issued, fully paid and
non assessable and are owned free and clear of any Liens, other than Liens
permitted pursuant to Section 7.1(n).  The interest of the Borrower in
each non‐corporate Subsidiary is owned free and clear of any Liens, other
than Liens permitted pursuant to Section 7.1(n). Neither the Borrower
nor any Subsidiary has issued any Disqualified Stock.

Section 4.13           
Federal Reserve Regulations, etc.(a)               
Neither the Borrower nor any of the Subsidiaries is engaged principally,
or as one of their important activities, in the business of extending credit
for the purpose of buying or carrying Margin Stock. Immediately before and
after giving effect to the making of each Loan and the issuance of each Letter
of Credit, Margin Stock will constitute less than 25% of the Borrower's assets
as determined in accordance with Regulation U. 

(b)               
No part of the proceeds of any Loan or any Letter of Credit will be
used, whether directly or indirectly, and whether immediately, incidentally or
ultimately, (i) to purchase, acquire or carry any Margin Stock or for any
purpose that entails a violation of, or that is inconsistent with, the
provisions of the regulations of the Board, including Regulation T, U or X or (ii) to fund a personal loan to or for the benefit of a director or executive officer of
a Borrower or any Subsidiary.

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Article
5.

CONDITIONS

Section 5.1               
Closing Date

The obligations of the Lenders to make Loans
and of the Issuing Bank to issue Letters of Credit hereunder shall not become
effective until the date on which each of the following conditions is satisfied
(or waived in accordance with Section 10.2):

(a)               
Credit Agreement. The Administrative Agent (or its counsel) shall
have received from each party hereto either (i) a counterpart of this Credit Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include facsimile transmission of a
signed signature page of this Credit Agreement) that such party has signed a
counterpart of this Credit Agreement.(b)               
Notes. The Administrative Agent shall have received a Note for
each Lender, signed on behalf of the Borrower.

(c)               
Legal Opinion. The Administrative Agent shall have received a
favorable written opinion (addressed to the Credit Parties and dated the
Closing Date) from Phelps Dunbar, L.L.P., special counsel to the Borrower,
substantially in the form of Exhibit B, and covering such other matters
relating to the Borrower, the Loan Documents and the Transactions as the
Required Lenders may reasonably request. The Borrower hereby requests such
counsel to deliver such opinions.(d)               
Organizational Documents, etc. The Administrative Agent shall
have received such documents and certificates as the Administrative Agent or
its counsel may reasonably request relating to (i) the organization, existence and good standing of the Borrower (including (x) a certificate of incorporation
of the Borrower, certified as of a recent date by the Secretary of State of the
jurisdiction of its incorporation and (y) certificates of good standing (or
comparable certificates) for the Borrower, certified as of a recent date prior
to the Closing Date, by the Secretaries of State (or comparable official) of
the jurisdiction of its incorporation and each other jurisdiction in which it
is qualified to do business, (ii) the authorization of the Transactions, (iii) the incumbency of its officer or officers who may sign the Loan Documents,
including therein a signature specimen of such officer or officers and (iv) any other legal matters relating to the Borrower, the Loan Documents or the
Transactions, all in form and substance reasonably satisfactory to the
Administrative Agent and its counsel.

(e)               
Officer's Certificate. The Administrative Agent shall have
received a certificate, in form and substance satisfactory to the
Administrative Agent, dated the Closing Date and signed by the chief executive
officer or the chief financial officer of the Borrower (or other Financial
Officer acceptable to the Administrative Agent):(i)                 
confirming compliance with the conditions set forth in paragraphs (a)
and (b) of Section 5.2; and

(ii)               
certifying that all approvals and consents of all Persons required to be
obtained in connection with the consummation of the Transactions have been duly
obtained and are in full force and effect and that all required notices have
been given and all required 
-40-

waiting periods have expired, attaching thereto
true and complete copies of all such required governmental and regulatory
authorizations and approvals, including the approval of LPSC.

(f)                
Fees and Expenses. The Administrative Agent shall have received
all fees and other amounts due and payable on or prior to the Closing Date,
including, to the extent invoiced, reimbursement or payment of all out‐of‐pocket
expenses required to be reimbursed or paid by the Borrower hereunder.
(g)               
Termination of Existing Loan Documents. After giving effect to
the application of the proceeds of the Loans on the Closing Date, the
Indebtedness under the Existing Loan Documents shall have been fully repaid,
the Existing Loan Documents shall have been canceled or terminated, the
Borrower shall have been released from all liability thereunder (other than
indemnification obligations under the Existing Credit Agreement which, by their
terms, survive such termination), and the Administrative Agent shall have
received reasonably satisfactory evidence thereof.

(h)               
No Material Adverse Change. The Administrative Agent shall have
received a certificate of a Financial Officer, in form and substance
satisfactory to the Administrative Agent, dated the Closing Date, to the effect
that since December 31, 2004, no Material Adverse Change has occurred.
(i)                 
Certain Agreements. The Administrative Agent shall have received
a certificate of a duly authorized officer of the Borrower, in form and substance
satisfactory to the Administrative Agent, (i) attaching true and complete
copies of each of the CLECO Mortgage and the Employee Stock Ownership Plan,
each of which shall be in form and substance satisfactory to the Administrative
Agent, and (ii) attaching a true, complete and correct copy of the Inter‐Affiliate
Policies Agreement, which shall be in form and substance satisfactory to the
Administrative Agent.

The Administrative Agent shall notify each of the Borrower
and the Credit Parties of the Closing Date, and each such notice shall be
conclusive and binding.  Notwithstanding the foregoing, the obligations of the
Lenders to make Loans and the Issuing Bank to issue Letters of Credit hereunder
shall not become effective unless each of the foregoing conditions is satisfied
(or waived pursuant to Section 10.2) at or prior to 3:00 p.m., New York
City time, on April 30, 2005 (and, in the event such conditions are not so
satisfied or waived, the Commitments shall terminate at such time).

Section 5.2               
Each Credit EventThe obligation of each Lender to make a Loan on
the occasion of any Borrowing, and of the Issuing Bank to issue, increase,
amend, renew or extend a Letter of Credit, (each such event being called a "Credit
Event") is subject to the satisfaction of the following conditions:

(a)               
The representations and warranties of the Borrower set forth in the Loan
Documents shall be true and correct on and as of the date of such Borrowing or
the date of such issuance, increase, amendment, renewal or extension, as
applicable, except to the extent such representations and warranties
specifically relate to an earlier date, in which case such representations and
warranties shall have been true and correct on and as of such earlier date,
(b)               
At the time of and immediately after giving effect to such Borrowing or
such issuance, increase, amendment, renewal or extension, as applicable, no
Default shall have occurred and be continuing.

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(c)               
The Administrative Agent shall have received such other documentation
and assurances as shall be reasonably required by it in connection therewith.
(d)               
Such Loan or Letter of Credit shall not be prohibited by any applicable
law, rule or regulation.

Each Borrowing and each issuance, increase, amendment, renewal
or extension of a Letter of Credit shall be deemed to constitute a
representation and warranty by the Borrower on the date thereof as to the
matters specified in paragraphs (a) and (b) of this Section.

Article
6.

AFFIRMATIVE COVENANTS

Until the Commitments
have expired or been terminated and the principal of and interest on each Loan
and all fees and other amounts payable under the Loan Documents shall have been
paid in full and all Letters of Credit have expired and all LC Disbursements
have been reimbursed, the Borrower covenants and agrees with the Credit Parties
that:

Section 6.1               
Financial Statements and Other InformationThe Borrower will furnish to the Administrative
Agent and each Lender:

(a)               
As soon as available, but in any event within 120 days after the end of
each fiscal year, (i) a copy of the Borrower's Annual Report on Form 10‐K
in respect of such fiscal year required to be filed by the Borrower with the
SEC, together with the financial statements attached thereto, and (ii) the
Borrower's audited consolidated balance sheet and related consolidated
statements of income, stockholder's equity and cash flows as of the end of and
for such fiscal year, setting forth in each case in comparative form the
figures for the previous fiscal year, all reported on by the Accountants
(without a "going concern" or like qualification or exception and without any
qualification or exception as to the scope of such audit) to the effect that
such consolidated financial statements present fairly in all material respects
the financial conditions and results of operations of the Borrower and the Subsidiaries
on a consolidated basis in accordance with GAAP consistently applied during
such fiscal year;

(b)               
As soon as available, but in any event within 60 days after the end of
each of the first three fiscal quarters of each fiscal year, (i) a copy of the
Borrower's Quarterly Report on Form 10‐Q in respect of such fiscal
quarter required to be filed by the Borrower with the SEC, together with the
financial statements attached thereto, and (ii) the Borrower's unaudited
consolidated balance sheet and related consolidated statements of income,
stockholder's equity and cash flows as of the end of and for such fiscal
quarter and the then elapsed portion of the fiscal year, setting forth in each
case in comparative form the figures for the corresponding period or periods of
(or, in the case of the balance sheet, as of the end of) the previous fiscal
year, all certified by a duly authorized Financial Officer of the Borrower as
presenting fairly in all material respects the financial conditions and results
of operations of the Borrower on a consolidated basis in accordance with GAAP
consistently applied, subject to normal year end audit adjustments and the
absence of footnotes;

(c)               
Within 60 days after the end of each of the first three fiscal quarters
(120 days after the end of the last fiscal quarter), a Compliance Certificate,
signed by a Financial 

-42-

Officer (or such other officer as shall be acceptable to
the Administrative Agent) as to the Borrower's compliance, as of such fiscal
quarter ending date, with Section 6.11, and as to the occurrence or
continuance of no Default or Event of Default as of such fiscal quarter ending
date and the date of such certificate; and(d)               
promptly following any request therefor, such other information
regarding the operations, business affairs and financial condition of the
Borrower or any Subsidiary, or compliance with the terms of the Loan Documents,
as any Credit Party may reasonably request.

Section 6.2               
Notices of Material EventsThe Borrower will furnish to the Administrative
Agent and each Lender of the following:

(a)               
Prompt written notice of the occurrence of any (i) Event of Default or
Default, specifying the nature and extent thereof and (ii) a Material Adverse
Change;(b)               
Prompt written notice of: (i) any material citation, summons, subpoena,
order to show cause or other document naming the Borrower or any of the
Subsidiaries a party to any proceeding before any Governmental Authority, and
include with such notice a copy of such citation, summons, subpoena, order to
show cause or other document, or (ii) any lapse or other termination of, or
refusal to renew or extend, any material Intellectual Property, license,
permit, franchise or other authorization issued to the Borrower or any of the
Subsidiaries by any Person or Governmental Authority, provided that any of
the foregoing set forth in this subsection (b) could, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect or call
into question the validity or enforceability of any of the Loan Documents;

(c)               
Promptly upon becoming available, copies of all (i) regular, periodic or
special reports, schedules and other material which the Borrower or any of the
Subsidiaries may be required to file with or deliver to any securities exchange
or the SEC, or any other Governmental Authority succeeding to the functions
thereof, (ii) copies of any statement or report furnished to any holder of debt
securities of the Borrower or of any of the Subsidiaries pursuant to the terms
of any indenture, loan or credit or similar agreement and not otherwise
required to be furnished to the Lenders pursuant to any other clause of this Section 6.2,
(iii) material news releases and annual reports relating to the Borrower or any
of the Subsidiaries, and (iv) upon the written request of the Administrative
Agent, reports that the Borrower or any of the Subsidiaries sends to or files
with FERC, the LPSC or any similar state or local Governmental Authority;

 (d)               
Prompt written notice of any order, notice, claim or proceeding received
by, or brought against, the Borrower or any of the Subsidiaries, or with
respect to any real property under any Environmental Law, that could reasonably
be expected to have a Material Adverse Effect; and

(e)               
Prompt written notice of any change by either Moody's or S&P in the
Senior Debt Rating.Each notice delivered under this Section shall be
accompanied by a statement of a Financial Officer or other executive officer of
the Borrower setting forth the details of the event or development requiring
such notice and any action taken or proposed to be taken with respect thereto.

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Documents required to be
delivered pursuant to Section 6.1(a) or (b) or clauses (i)
through (iii) of Section 6.2(c) (to the extent any such documents are
included in materials otherwise filed with the SEC) may be delivered electronically
and if so delivered, shall be deemed to have been delivered on the date (i) on
which the Borrower posts such documents, or provides a link thereto on the
Borrower's website on the Internet at the website address listed in Section
10.1; or (ii) on which such documents are posted on the Borrower's behalf
on an Internet or intranet website, if any, to which each Lender and the
Administrative have access (whether a commercial, third-party website or
whether sponsored by the Administrative Agent), provided that: (i) the Borrower shall deliver paper copies of such documents to the Administrative Agent
or any Lender that requests the Borrower to deliver such paper copies until a
written request to cease delivering paper copies is given by the Administrative
Agent or such Lender and (ii) the Borrower shall notify the Administrative
Agent and each Lender (by facsimile or electronic mail) of the posting of any
such documents and provide to the Administrative Agent by electronic mail
electronic versions (i.e., soft copies) of such documents. 
Notwithstanding anything contained herein, in every instance the Borrower shall
be required to provide paper copies of the Compliance Certificates required by
Section
6.1(c) to the Administrative Agent.  Except for such Compliance
Certificates, the Administrative Agent shall have no obligation to request the
delivery or to maintain copies of the documents referred to above, and in any
event shall have no responsibility to monitor compliance by the Borrower with
any such request for delivery, and each Lender shall be solely responsible for
requesting delivery to it or maintaining its copies of such documents.

The Borrower hereby acknowledges that (i) the Administrative Agent will make available to the Lenders on a confidential basis
materials and/or information provided by or on behalf of the Borrower hereunder
(collectively, "Borrower Materials") by posting the Borrower Materials
on IntraLinks or another similar electronic system (the "Platform") and
(b) certain of the Lenders may be "public-side" Lenders (i.e., Lenders that do
not wish to receive material non-public information with respect to the
Borrower or its securities) (each, a "Public Lender").  The
Administrative Agent will notify the Borrower in writing if it receives written
notice from a Lender identifying itself as a Public Lender.  The Borrower hereby
agrees that it will notify the Administrative Agent in the event that any
non-public information is included in the Borrower Materials and to cooperate
with the Administrative Agent to ensure that such non-public information is not
distributed to a Public Lender.

Section 6.3               
Legal ExistenceExcept as permitted under Section 7.3, the
Borrower shall maintain its legal existence in good standing in the
jurisdiction of its incorporation or formation and in each other jurisdiction
in which the failure so to do could reasonably be expected to have a Material
Adverse Effect, and cause each of the Subsidiaries to maintain its legal
existence in good standing in each jurisdiction in which the failure so to do
could reasonably be expected to have a Material Adverse Effect.

Section 6.4               
Taxes
The Borrower shall pay and discharge when due, and cause
each of the Subsidiaries so to do, all Taxes, assessments and governmental
charges, license fees and levies upon or with respect to the Borrower or such
Subsidiary, as the case may be, and all Taxes upon the income, profits and property
of the Borrower and the Subsidiaries, which if unpaid, could individually or
collectively reasonably be expected to have a Material Adverse Effect or become
a Lien on the property of the Borrower or such Subsidiary (other than a Lien
described in clause (a) of the definition of Permitted Encumbrances), as the
case may be, unless and to the extent only that such Taxes, assessments,
charges, license fees and levies shall be contested in good faith and by
appropriate proceedings diligently conducted by the Borrower or such
Subsidiary, as the case may be, provided that such 

-44-

reserve or other
appropriate provision as shall be required by the Accountants in accordance
with GAAP shall have been made therefor.

Section 6.5               
InsuranceThe Borrower shall maintain, and cause each of the Subsidiaries
to maintain, with financially sound and reputable insurance companies insurance
on all its property in at least such amounts and against at least such risks
(but including in any event public liability and business interruption coverage)
as are usually insured against in the same general area by companies engaged in
the same or a similar business; and furnish to the Administrative Agent, upon
written request of the Administrative Agent or any Lender, full information as
to the insurance carried.

Section 6.6               
Payment of Indebtedness and Performance of Obligations 

The Borrower shall pay and discharge when due, and
cause each of the Subsidiaries to pay and discharge when due, all lawful
Indebtedness, obligations and claims for labor, materials and supplies or
otherwise which, if unpaid, could individually or collectively reasonably be
expected to (i) have a Material Adverse Effect or (ii) become a Lien upon property
of the Borrower or any of the Subsidiaries (other than a Lien expressly
permitted by Section 7.1), unless and to the extent only that the
validity of such Indebtedness, obligation or claim shall be contested in good
faith and by appropriate proceedings diligently conducted, provided that
such reserve or other appropriate provision as shall be required by the
Accountants in accordance with GAAP shall have been made therefor. 

Section 6.7               
Condition of PropertyThe Borrower shall at all times, maintain, protect
and keep in good repair, working order and condition (ordinary wear and tear
excepted), and cause each of the Subsidiaries so to do, all material property
necessary to the operation of the Borrower's or such Subsidiary's, as the case
may be, material businesses.

Section 6.8               
Observance of Legal RequirementsThe Borrower shall observe and comply in all
respects, and cause each of the Subsidiaries so to do, with all laws,
ordinances, orders, judgments, rules, regulations, certifications, franchises,
permits, licenses, directions and requirements of all Governmental Authorities,
which now or at any time hereafter may be applicable to it, including ERISA and
all Environmental Laws, a violation of which could individually or collectively
reasonably be expected to have a Material Adverse Effect, except such thereof
as shall be contested in good faith and by appropriate proceedings diligently
conducted by it, provided that such reserve or other appropriate
provision as shall be required by the Accountants in accordance with GAAP shall
have been made therefor.

Section 6.9               
Inspection of property; Books and Records; DiscussionsThe Borrower shall keep proper books of record and
account in which full, true and correct entries in conformity with GAAP and all
requirements of law shall be made of all dealings and transactions in relation
to its business and activities and permit representatives of the Administrative
Agent and any Lender to visit its offices, to inspect any of its property and
examine and make copies or abstracts from any of its books and records at any
reasonable time and as often as may reasonably be desired, and to discuss the
business, operations, prospects, licenses, property and financial 

-45-

condition of
the Borrower and the Subsidiaries with the officers thereof and the
Accountants; provided that, so long as no Default or Event of Default
exists, none of the Administrative Agent, its agents, its representatives or
the Lenders shall be entitled to examine or make copies or abstracts of, or
otherwise obtain information with respect to, the Borrower's records relating
to pending or threatened litigation if any such disclosure by the Borrower
could reasonably be expected (i) to give rise to a waiver of any
attorney/client privilege of the Borrower or any of the Subsidiaries relating
to such information or (ii) to be otherwise materially disadvantageous to the
Borrower or any of the Subsidiaries in the defense of such litigation.

Section 6.10           
Licenses, Intellectual PropertyThe Borrower shall obtain or maintain, as applicable,
and cause each of the Subsidiaries to obtain or maintain, as applicable, in
full force and effect, all licenses, franchises, Intellectual Property,
permits, authorizations and other rights as are necessary for the conduct of
its business and the failure of which to obtain or maintain could, individually
or collectively, reasonably be expected to have a Material Adverse Effect.

Section 6.11           
Financial Covenants(a)               
The Borrower shall maintain at all times Total Indebtedness equal to or
less than 65% of Total Capitalization.  

(b)               
The Borrower will not permit the Interest Coverage Ratio as of
the end of any fiscal quarter to be less than 2.50:1.00.
Section 6.12           
Use of Proceeds

The proceeds of the Loans and the Letters of
Credit will be used only as follows: (i) to refinance the Indebtedness under the Existing Loan Documents, (ii) to reimburse the Issuing Bank in respect
of amounts drawn under Letters of Credit, (iii) to pay transaction fees and expenses and (iv) for general corporate purposes not inconsistent with the
terms hereof including commercial paper backup  No part of the proceeds of any
Loan or any Letter of Credit will be used, whether directly or indirectly, and
whether immediately, incidentally or ultimately, to (x) purchase, acquire or carry any Margin Stock, (y) for any purpose that entails a violation of any of the
regulations of the Board, including Regulations T, U and X, or (z) to fund a personal loan to or for the benefit of a director or executive officer of
the Borrower or any Subsidiary.

Article
7.

NEGATIVE COVENANTS

Until the Commitments
have expired or been terminated and the principal of and interest on each Loan
and all fees and other amounts payable under the Loan Documents shall have been
paid in full and all Letters of Credit have expired and all LC Disbursements
have been reimbursed, the Borrower covenants and agrees with the Credit Parties that:

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Section 7.1               
LiensThe Borrower shall not, and shall not permit any
Subsidiary to, create, incur, assume or suffer to exist any Lien upon any of
its property, whether now owned or hereafter acquired by it, except: 

(a)               
Liens now existing or hereafter arising in favor of the Administrative
Agent or the Lenders under the Loan Documents;(b)               
Permitted Encumbrances;

(c)               
Liens on any property or asset of the Borrower or any Subsidiary
existing on the Agreement Date and set forth in Schedule 7.1, as renewed
from time to time, but not any increases in the amounts secured thereby or the
property subject to such Lien thereon (except under the CLECO Mortgage);

(d)               
purchase money Liens on property of the Borrower or any of the
Subsidiaries acquired after the date hereof to secure Indebtedness of the
Borrower or such Subsidiary incurred in connection with the acquisition of such
property, provided that each such Lien is limited to such property so
acquired;

(e)               
Liens existing on property of the Borrower or any of the Subsidiaries
acquired after the Agreement Date provided that such Liens are at all
times thereafter limited to the property so acquired and were not created in
contemplation of such acquisition;

(f)                
the Lien evidenced by the CLECO Mortgage as renewed from time to time; provided,
however, that such Lien shall not extend to or over any property of a
character not subject on the date hereof to the Lien granted under the CLECO
Mortgage; 

(g)               
"permitted liens" as defined under Section 1.04 of the CLECO
Mortgage, as in effect on the date hereof, other than "funded liens"
described in clause (ix) of said Section 1.04, other Liens not
otherwise prohibited by Section 5.05 of the CLECO Mortgage as in effect on the
date hereof, and, in the event the CLECO Mortgage is terminated, Liens of the
same type and nature as the foregoing Liens referred to in this clause (g), provided
that the amounts secured by such Liens shall not exceed the amounts that may be
secured by such foregoing Liens as the last day on which the CLECO Mortgage was
in effect;(h)               
Liens created to secure Indebtedness representing, or incurred to
finance, the cost of property acquired, constructed or improved by the Borrower
in the ordinary course of business after the date hereof and not subject to (i) the Lien referred to in clause (f) above or (ii) Liens securing Indebtedness existing on such property at the time of acquisition thereof, provided, in all cases,
such Liens are limited to such property acquired, constructed or improved;

(i)                 
Liens existing on property of any Person at the time that such Person
becomes a Subsidiary of the Borrower provided that such Liens were not
created to secure the acquisition of such Person;(j)                 
Liens to secure Indebtedness of any Subsidiary of the Borrower to the
Borrower or to any of its other Subsidiaries;

-47-

(k)               
Liens on property (including any natural gas, oil or other mineral
property) to secure all or a part of the cost of exploration, drilling or
development thereof or to secure Indebtedness incurred to provide funds for any
such purpose;(l)                 
Liens and security interests created, incurred or assumed in connection
with the purchase, lease, financing or refinancing of pollution control
facilities (and which Liens and security interest are limited to such pollution
control facilities);

(m)             
Liens (i) created to secure sales or factoring of accounts receivable
and other receivables, and (ii) to the extent not covered by clause (i) of this
subsection, Liens on accounts receivables and other receivables, to secure
Indebtedness of the Borrower or any of the Subsidiaries in an aggregate amount
not to exceed $40,000,000; 
(n)               
Liens on any equity interest owned or otherwise held by or on behalf of
the Borrower or any Subsidiary created in connection with any project
financing; 

(o)               
Liens to secure obligations of the Borrower in respect of agreements to
purchase or sell electricity, gas or fuel from counterparties, provided
that the aggregate amount secured under this clause (o) shall not exceed $15,000,000;
and(p)               
Liens created for the sole purpose of extending, renewing or replacing
in whole or in part Indebtedness secured by any lien, mortgage or security
interest referred to in the foregoing clauses (a) through (o); provided,
however, that the principal amount of Indebtedness secured thereby shall
not exceed the principal amount of Indebtedness so secured at the time of such
extension, renewal or replacement and that such extension, renewal or
replacement, as the case may be, shall be limited to all or a part of the
property or indebtedness that secured the lien or mortgage so extended, renewed
or replaced (and any improvements on such property).

Section 7.2               
Merger, Consolidation, Purchase or Sale of Assets, Etc.The Borrower shall not consolidate with, be
acquired by, or merge into or with any Person, or convey, sell, lease or
otherwise dispose of all or any part of its property, or enter into any
sale-leaseback transaction, or purchase or otherwise acquire (in one or a
series of related transactions) any part of the property (other than purchases
or other acquisitions of inventory, materials, equipment and similar property
in the ordinary course of business) of any Person, including acquisitions of
the Equity Interests of any Person, or permit any of the Subsidiaries so to do,
except:

(a)               
sales or other dispositions of inventory and short‐term government
securities, commercial paper, money market mutual funds and other similar short‐term
cash equivalent investments, in each case in the ordinary course of business;
(b)               
sales or factoring of accounts
receivables and other receivables; 

(c)               
Asset Sales by any of the Subsidiaries to any of the other Subsidiaries;

(d)               
(i) other Asset Sales, provided that (A) no Default or Event
of Default shall exist immediately before or after giving effect thereto and
(B) the amount of such Asset Sale, when added to the total amount of all
Asset Sales made by the Borrower and the Subsidiaries during the immediately
preceding twelve month period pursuant to this subsection (d)(i) shall not exceed
18%

-48-

or more of Material Total Assets as of the first day of such twelve month
period and (ii) sales of transmission assets pursuant to the order of any
Governmental Authority, provided that fair market value shall have been
received for such transmission assets; (e)               
any of the Subsidiaries may merge or consolidate with or into, or
acquire control of, or acquire all or any portion of the assets of any Person,
provided
that immediately after giving effect thereto, the total consideration to be
paid by the Subsidiaries to or for the account of any Person (other than the
Borrower and the Subsidiaries) in connection therewith, but not counting
purchases or other acquisitions of property made as part of the Borrower's
Integrated Resources Plan, when added to the total consideration paid by the
Borrower and the Subsidiaries to or for the account of any Person (other than
the Borrower and the Subsidiaries) in connection with all other mergers,
consolidations and acquisitions permitted under Sections 7.2(e) and 7.2(f)
during the immediately preceding twelve month period, and all loans, advances
and other arrangements outstanding at such time and permitted under Section
7.3 shall not exceed 15% of Material Total Assets as of the most recently
completed fiscal quarter; and

(f)                
mergers, consolidations or acquisitions of or by the Borrower with, into
or of another Person (including acquisitions by the Borrower of all or any
portion of the assets of any Person), in each case as to which the following
conditions have been satisfied:(i)                 
immediately before and after giving effect thereto, no Default or Event
of Default shall exist;

(ii)               
immediately before and after giving effect thereto, all of the
representations and warranties contained in the Loan Documents shall be true
and correct except as the context thereof otherwise requires and except for
those representations and warranties which by their terms or by necessary
implication are expressly limited to a state of facts existing at a time prior
to such merger, consolidation or acquisition, as the case may  be, or such
other matters relating thereto as are identified in a writing to the
Administrative Agent and the Lenders and are satisfactory to the Administrative
Agent and the Lenders;(iii)              
the Borrower shall be the surviving entity thereof or, in the event the
Borrower shall not be the surviving entity thereof, (1) such surviving entity
shall be organized in a State of the United States with substantially all of
its assets and businesses located and conducted in the United States and (2)
the Administrative Agent shall have received (A) a certificate, in form and
substance satisfactory to the Administrative Agent, (x) attaching a true and
complete copy of each agreement, instrument or other document effecting such
merger, consolidation or acquisition, together with an agreement signed on
behalf of such surviving entity pursuant to which such surviving entity shall
have expressly assumed all of the indebtedness, liabilities and other
obligations of the Borrower under the Loan Documents, each of which shall be in
form and substance satisfactory to the Administrative Agent, and (y) certifying
that such merger, consolidation or acquisition has been consummated in
accordance with such agreements, instruments or other documents referred to in
the immediately preceding clause (x), and (B) such documents, legal opinions
and certificates as the Administrative Agent shall reasonably request relating
to the organization, existence and, if applicable, good standing of such
surviving entity, the authorization of such merger, consolidation or
acquisition and any other legal matters relating to such surviving entity, the
assumption agreement referred to in the immediately preceding clause (x) or
such merger, consolidation or acquisition,
-49-

(iv)             
immediately after giving effect thereto, the total consideration to be
paid by the Borrower to or for the account of any Person (other than the
Subsidiaries) in connection therewith, but not counting purchases or other
acquisitions of property made as part of the Borrower's Integrated Resources
Plan, when added to the total consideration paid by the Borrower and the
Subsidiaries to or for the account of any Person (other than the Borrower and
the Subsidiaries) in connection with all mergers, consolidations and
acquisitions permitted under Sections 7.2(e) and 7.2(f) during
the immediately preceding twelve month period, and all loans, advances,
investments and other arrangements outstanding at such time and permitted under
Section 7.3 shall not exceed 15% of Material Total Assets as of the most
recently completed fiscal quarter, and(v)               
the Administrative Agent and the Lenders shall have received a
certificate duly signed by a duly authorized officer of the Borrower
identifying the Person to be merged with or into, consolidated with, or
acquired by, the Borrower, and certifying as to each of the matters set forth
in subclauses (i) through (iv) of this clause (f).

Section 7.3               
Loans, Advances, etc.The Borrower shall not, at any time, make any loan or
advance to, or enter into any arrangement for the purpose of providing funds or
credit to, any Person, or permit any of the Subsidiaries so to do, other than
(i) provided that immediately before and after giving effect thereto, no
Default or Event of Default shall exist, loans or advances to the Parent and to
any of its subsidiaries and (ii) other loans, advances or arrangements the
total outstanding amount of which, when added to the total consideration paid
by the Borrower and the Subsidiaries in connection with all mergers,
consolidations and acquisitions of or by the Borrower and the Subsidiaries
during the immediately preceding twelve month period, shall not exceed 15% of
Material Total Assets as of the most recently completed fiscal quarter.

Section 7.4               
Amendments, etc. of Certain AgreementsThe Borrower shall not enter into or agree to any
amendment, modification or waiver, or permit any of the Subsidiaries so to do,
of any term or condition of, or any of its rights under, the CLECO Mortgage or
the Employee Stock Ownership Plan (other than amendments and modifications of
the Employee Stock Ownership Plan required by tax laws to maintain the
qualified status under Section 401(a) of the Code and any adoptive instruments
or other agreements providing for participation in the Employee Stock Ownership
Plan by the Borrower's affiliates), which amendment, modification or waiver
could, in the reasonable opinion of the Administrative Agent, materially and adversely
affect the interests of the Lenders under the Loan Documents. 

Article
8.

EVENTS
OF DEFAULT

If any of the
following events (each an "Event of Default") shall occur:

(a)               
the Borrower shall fail to pay any principal of any Loan or any
reimbursement obligation in respect of any LC Disbursement when and as the same
shall become due and payable, whether at the due date thereof or at a date
fixed for prepayment thereof or otherwise;
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(b)               
the Borrower shall fail to pay any interest on any Loan or on any
reimbursement obligation in respect of any LC Disbursement or any fee,
commission or any other amount (other than an amount referred to in clause (a)
of this Article) payable under any Loan Document, when and as the same shall
become due and payable, and such failure shall continue unremedied for a period
of three Business Days;(c)               
any representation or warranty made or deemed made by or on behalf of
the Borrower or any Subsidiary in or in connection with any Loan Document or
any amendment or modification hereof or waiver thereunder, or in any report,
certificate, financial statement or other document furnished pursuant to or in
connection with any Loan Document or any amendment or modification hereof or
waiver thereunder, shall prove to have been incorrect in any material respect
when made or deemed made;

(d)               
the Borrower shall fail to observe or perform any covenant, condition or
agreement contained in Section 6.3, 6.11 or 6.12 or in Article
7, 
(e)               
the Borrower shall fail to observe or perform any covenant, condition or
agreement contained in any Loan Document to which it is a party (other than
those specified in clause (a), (b) or (d) of this Article), and such failure
shall continue unremedied for a period of 30 days after the Borrower shall have
obtained knowledge thereof;

(f)                
the Borrower or any Subsidiary shall fail to make any payment (whether
of principal, interest or otherwise and regardless of amount) in respect of any
Material Obligations when and as the same shall become due and payable (after
giving effect to any applicable grace period); 
(g)               
any event or condition occurs that results in any Material Obligations
becoming due prior to their scheduled maturity or payment date, or that enables
or permits (with or without the giving of notice, the lapse of time or both)
the holder or holders of any Material Obligations or any trustee or agent on
its or their behalf to cause any Material Obligations to become due prior to
their scheduled maturity or payment date or to require the prepayment,
repurchase, redemption or defeasance thereof prior to their scheduled maturity
or payment date (in each case after giving effect to any applicable cure
period), provided that this clause (g) shall not apply to (i) secured
Indebtedness that becomes due solely as a result of the voluntary sale or
transfer of the property or assets securing such Indebtedness or (ii)
intercompany indebtedness;

(h)               
the Borrower or any of the Subsidiaries shall (i) suspend or discontinue
its business, (ii) make an assignment for the benefit of creditors, (iii)
generally not pay its debts as such debts become due, (iv) admit in writing its
inability to pay its debts as they become due, (v) file a voluntary petition in
bankruptcy, (vi) become insolvent (however such insolvency shall be evidenced),
(vii) file any petition or answer seeking for itself any reorganization,
arrangement, composition, readjustment of debt, liquidation or dissolution or
similar relief under any present or future statute, law or regulation of any
jurisdiction, (viii) petition or apply to any tribunal for any receiver,
custodian or any trustee for any substantial part of its property, (ix) be the
subject of any such proceeding filed against it which remains undismissed for a
period of 45 days, (x) file any answer admitting or not contesting the material
allegations of any such petition filed against it or any order, judgment or
decree approving such petition in any such proceeding, (xi) seek, approve,
consent to, or acquiesce in any such proceeding, or in the appointment of any
trustee, receiver, sequestrator, custodian, liquidator, or fiscal agent for it,
or any substantial part of its property, or an order is entered appointing any
such trustee, receiver, custodian, liquidator or fiscal agent and such order
remains in effect for 45 days, or 
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(xii) take any formal action for the purpose
of effecting any of the foregoing or looking to the liquidation or dissolution
of the Borrower or any of the Subsidiaries; or(i)                 
an order for relief is entered under the United States bankruptcy laws
or any other decree or order is entered by a court having jurisdiction (i)
adjudging the Borrower or any of the Subsidiaries bankrupt or insolvent, (ii)
approving as properly filed a petition seeking reorganization, liquidation,
arrangement, adjustment or composition of or in respect of Borrower or any of
the Subsidiaries under the United States bankruptcy laws or any other
applicable Federal or state law, (iii) appointing a receiver, liquidator,
assignee, trustee, custodian, sequestrator (or other similar official) of the
Borrower or any of the Subsidiaries or of any substantial part of the property
thereof, or (iv) ordering the winding up or liquidation of the affairs of the
Borrower or any of the Subsidiaries, and any such decree or order continues
unstayed and in effect for a period of 45 days; or

(j)                 
one or more judgments or decrees against the Borrower or any of the
Subsidiaries or any combination thereof aggregating in excess of $10,000,000,
which judgment or decree (i) shall not be fully covered by insurance after
taking into account any applicable deductibles and (ii) shall remain unpaid,
unstayed on appeal, undischarged, unbonded or undismissed for a period of at
least 30 days; or(k)               
any Loan Document shall cease, for any reason, to be in full force and
effect or the Borrower shall so assert in writing or shall disavow any of its
obligations thereunder; or

(l)                 
an ERISA Event shall have occurred that, in the opinion of the Required
Lenders, when taken together with all other ERISA Events that have occurred,
could reasonably be expected to result in a Material Adverse Effect; or
(m)             
any authorization or approval or other action by any Governmental
Authority required for the execution, delivery or performance of any Loan
Document shall be terminated, revoked or rescinded or shall otherwise no longer
be in full force and effect;

(n)               
a Change in Control shall occur or a change in control, fundamental
change or any similar circumstance which, under the Indenture (including any
supplemental indentures thereto but only to the extent that it is in full force
and effect on the relevant date) results in an obligation of the Borrower to
prepay, purchase, offer to purchase, redeem or defease in excess of $5,000,000
of Indebtedness thereunder.then, and in every such event (other than an event
described in clause (h) or (i) of this Article), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Borrower, take either
or both of the following actions (whether before or after the Closing Date), at
the same or different times: (i) terminate the Commitments, and thereupon the
Commitments shall terminate immediately and (ii) declare the Loans then
outstanding to be due and payable in whole (or in part, in which case any principal
not so declared to be due and payable may thereafter be declared to be due and
payable), and thereupon the principal of the Loans so declared to be due and
payable, together with accrued interest thereon and all fees and other
obligations of the Borrower accrued under the Loan Documents, shall become due
and payable immediately, without presentment, demand, protest or other notice
of any kind, all of which are hereby waived by the Borrower; and in case of any
event described in clause (h) or (i) of this Article, the Commitments shall
automatically terminate (whether  before or after the Closing Date) and the
principal of the Loans then outstanding, together with accrued interest thereon
and all fees and other obligations of the Borrower accrued under the Loan
Documents, shall automatically become due 

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and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower. 

Article
9.

THE
ADMINISTRATIVE AGENT

Each Credit Party
hereby irrevocably appoints the Administrative Agent as its agent and
authorizes the Administrative Agent to take such actions on its behalf and to
exercise such powers as are delegated to the Administrative Agent by the terms
hereof, together with such actions and powers as are reasonably incidental
thereto.

The Person serving as
the Administrative Agent hereunder shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as though it
were not the Administrative Agent, and such Person and its Affiliates may
accept deposits from, lend money to and generally engage in any kind of
business with the Borrower or any Subsidiary or other Affiliate thereof as if
it were not the Administrative Agent hereunder.

The Administrative
Agent shall not have any duties or obligations except those expressly set forth
herein. Without limiting the generality of the foregoing, (i) the Administrative Agent shall not be subject to any fiduciary or other implied duties,
regardless of whether a Default has occurred and is continuing, (ii) the Administrative Agent shall not have any duty to take any discretionary action or
exercise any discretionary powers, except discretionary rights and powers
expressly contemplated by the Loan Documents that the Administrative Agent is
required to exercise in writing by the Required Lenders (or such other number
or percentage of the Credit Parties as shall be necessary under the
circumstances as provided in Section 10.2), and (iii) except as expressly set forth herein, the Administrative Agent shall not have any duty to
disclose, and shall not be liable for the failure to disclose, any information
relating to the Borrower or any of the Subsidiaries that is communicated to or
obtained by the Person serving as Administrative Agent or any of its Affiliates
in any capacity. The Administrative Agent shall not be liable for any action
taken or not taken by it with the consent or at the request of the Required
Lenders (or such other number or percentage of the Credit Parties as shall be
necessary under the circumstances as provided in Section 10.2) or in the
absence of its own gross negligence or willful misconduct. The Administrative
Agent shall be deemed not to have knowledge of any Default unless and until
written notice thereof is given to the Administrative Agent by the Borrower or
a Credit Party (and, promptly after its receipt of any such notice, it shall give
each Credit Party and the Borrower notice thereof), and the Administrative
Agent shall not be responsible for or have any duty to ascertain or inquire
into (a) any statement, warranty or representation made in or in connection
with any Loan Document, (b) the contents of any certificate, report or other
document delivered thereunder or in connection therewith, (c) the performance or observance of any of the covenants, agreements or other terms or
conditions set forth therein, (d) the validity, enforceability, effectiveness
or genuineness thereof or any other agreement, instrument or other document or (e) the satisfaction of any condition set forth in
Article 5 or elsewhere herein,
other than to confirm receipt of items expressly required to be delivered to
the Administrative Agent.

The Administrative Agent
shall be entitled to rely upon, and shall not incur any liability for relying
upon, any notice, request, certificate, consent, statement, instrument,
document or other writing believed by it to be genuine and to have been signed
or sent by the proper Person. The Administrative Agent also may rely upon any
statement made to it orally or by telephone and believed by it to be made by
the proper Person, and shall not incur any liability for relying thereon. 
The

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Administrative Agent may consult with legal counsel (who may be counsel for the
Borrower), independent accountants and other experts selected by it, and shall
not be liable for any action taken or not taken by it in accordance with the
advice of any such counsel, accountants or experts.

The Administrative
Agent may perform any and all its duties and exercise its rights and powers by
or through any one or more sub agents appointed by the Administrative Agent, provided
that no such delegation shall serve as a release of the Administrative Agent or
waiver by the Borrower of any rights hereunder. The Administrative Agent and
any such sub agent may perform any and all its duties and exercise its rights
and powers through their respective Related Parties. The exculpatory provisions
of the preceding paragraphs shall apply to any such sub agent and to the
Related Parties of the Administrative Agent and any such sub agent, and shall
apply to their respective activities in connection with the syndication of the
credit facilities provided for herein as well as activities as Administrative
Agent.

Subject to the
appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying
the Credit Parties and the Borrower. Upon any such resignation, the Required
Lenders shall have the right, with the consent of the Borrower (such consent
not to be unreasonably withheld and not to be required during the existence of
an Event of Default), to appoint a successor, which successor Administrative Agent
shall be a commercial bank organized under the laws of the United States or any
State thereof and having a combined capital, surplus, and undivided profits of
at least $100,000,000.  If no successor shall have been so appointed by the
Required Lenders and shall have accepted such appointment within 30 days after
the retiring Administrative Agent gives notice of its resignation, then the
retiring Administrative Agent may, on behalf of the Credit Parties, appoint a
successor Administrative Agent which shall be a bank with an office in New
York, New York, or an Affiliate of any such bank. Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor
shall 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 hereunder. The fees
payable by the Borrower to a successor Administrative Agent shall be the same
as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor. After the Administrative Agent's resignation
hereunder, the provisions of this Article and Section 10.3 shall
continue in effect for the benefit of such retiring Administrative Agent, its
sub agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while it was acting as Administrative
Agent.

Each Credit Party
acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Credit Party and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Credit Agreement. Each Credit Party also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Credit Party and based on such documents and
information as it shall from time to time deem appropriate, continue to make
its own decisions in taking or not taking action under or based upon any Loan
Document, any related agreement or any document furnished thereunder.

Notwithstanding
anything in any Loan Document to the contrary, no Agent acting in such capacity
other than the Administrative Agent shall have any duty or obligation under the
Loan Documents.

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Article
10.

MISCELLANEOUS

Section 10.1           
Notices. 

Except in the case of notices and other communications
expressly permitted to be given by telephone, all notices and other
communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed by certified or registered mail or
sent by facsimile, as follows:

(a)               
if to the Borrower, to it at 2030 Donahue Ferry Road, Pineville, LA
71360 5226; Attention: Michael Sawrie (Telephone: (318) 484‐7589; Facsimile:
(318) 484‐7697), website www.cleco.com; 
(b)               
if to the Administrative Agent, or BNY as Issuing Bank, to it at Agency
Funding Administration, One Wall Street, 18th Floor, New York, New York 10286,
Attention of: Sandra Morgan, Agency Function Administration, 18th Floor,
(Telephone No. (212) 635‐4692); Facsimile No. (212) 635‐6365
or 6366 or 6367, with a copy to The Bank of New York, at Energy Industries
Division, One Wall Street, 19th Floor, New York, New York 10286, Attention of:
Cynthia Howells (Telephone No. (212) 635‐7889; Facsimile No.
(212) 635‐7924); and

(c)               
if to any other Credit Party, to it at its address (or facsimile number)
set forth in its Administrative Questionnaire.Any party hereto may change its address or facsimile
number for notices and other communications hereunder by notice to the other
parties hereto. All notices and other communications given to any party hereto
in accordance with the provisions of this Credit Agreement shall be deemed to
have been given on the date of receipt.

Section 10.2           
Waivers; Amendments(a)               
No failure or delay by any Credit Party in exercising any right or power
under any Loan Document shall operate as a waiver thereof, nor shall any single
or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The
rights and remedies of the Credit Parties under the Loan Documents are
cumulative and are not exclusive of any rights or remedies that they would
otherwise have. No waiver of any provision of any Loan Document or consent to
any departure by the Borrower therefrom shall in any event be effective unless
the same shall be permitted by paragraph (b) of this Section, and then such
waiver or consent shall be effective only in the specific instance and for the
purpose for which given. Without limiting the generality of the foregoing, the
making of a Loan and/or the issuance, amendment, extension or renewal of a
Letter of Credit shall not be construed as a waiver of any Default, regardless
of whether any Credit Party may have had notice or knowledge of such Default at
the time.

(b)               
Neither any Loan Document nor any provision thereof may be waived,
amended or modified except pursuant to an agreement or agreements in writing
entered into by the Borrower and the Required Lenders or by the Borrower and
the Administrative Agent with the consent of the Required Lenders, provided
that no such agreement shall (i) increase the Commitment of any Lender
without the written consent of such Lender or increase the Letter of Credit
Commitment 

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without the consent of the Issuing Bank, (ii) reduce the principal amount of any Loan or any reimbursement obligation with respect to a LC
Disbursement, or reduce the rate of any interest (other than under Section
3.1(b)), or reduce any fees, payable under the Loan Documents, without the
written consent of each Credit Party affected thereby, (iii) postpone the date of payment at stated maturity of any Loan or the date of payment of any
reimbursement obligation with respect to an LC Disbursement, any interest or
any fees payable under the Loan Documents, or reduce the amount of, waive or
excuse any such payment, or postpone the stated termination or expiration of
the Commitments without the written consent of each Credit Party affected
thereby, (iv) change any provision hereof in a manner that would alter the pro
rata sharing of payments required by Section 2.9(b) or the pro rata
reduction of Commitments required by Section 2.5(c), without the written
consent of each Credit Party affected thereby, and (v) change any of the provisions of this Section or the definition of the term "Required Lenders" or any
other provision hereof specifying the number or percentage of Lenders required
to waive, amend or modify any rights hereunder or make any determination or
grant any consent hereunder, or change the currency in which Loans are to be
made, Letters of Credit are to be issued or payment under the Loan Documents is
to be made, or add additional borrowers, without the written consent of each
Lender, and provided further that no such agreement shall amend,
modify or otherwise affect the rights or duties of the Administrative Agent or
the Issuing Bank hereunder without the prior written consent of the
Administrative Agent or the Issuing Bank , as applicable.
Section 10.3           
Expenses; Indemnity; Damage Waiver

(a)               
The Borrower shall pay (i) all reasonable out‐of‐pocket
costs and expenses incurred by the Administrative Agent and its Affiliates,
including the reasonable fees, charges and disbursements of counsel for the
Administrative Agent, in connection with the syndication of the credit
facilities provided for herein, the preparation and administration of each Loan
Document or any amendments, modifications or waivers of the provisions thereof
(whether or not the transactions contemplated thereby shall be consummated), (ii) all reasonable out‐of‐pocket costs and expenses incurred by the Issuing
Bank in connection with the issuance, amendment, renewal or extension of any
Letter of Credit or any demand for payment thereunder and (iii) all reasonable
out‐of‐pocket costs and expenses incurred by any Credit Party,
including the reasonable fees, charges and disbursements of any counsel for any
Credit Party and any consultant or expert witness fees and expenses, in
connection with the enforcement or protection of its rights in connection with
the Loan Documents, including its rights under this Section, or in connection
with the Loans made or Letters of Credit issued hereunder, including all such
reasonable out‐of‐pocket costs and expenses incurred during any
workout, restructuring or negotiations in respect of such Loans or Letters of
Credit.(b)               
The Borrower shall indemnify each Credit Party and each Related Party
thereof (each such Person being called an "Indemnitee") against, and
hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including the reasonable fees, charges and
disbursements of any counsel for any Indemnitee, incurred by or asserted
against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of any Loan Document or any agreement or instrument
contemplated thereby, the performance by the parties to the Loan Documents of
their respective obligations thereunder or the consummation of the Transactions
or any other transactions contemplated thereby, (ii) any Loan or Letter of Credit or the use of the proceeds thereof including any refusal of the Issuing Bank
to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms
of such Letter of Credit, (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by  the Borrower
or any of the Subsidiaries, or any Environmental Liability related in any way
to the Borrower or any of the Subsidiaries or (iv) any 

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actual or prospective claim, litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory and regardless
of whether any Indemnitee is a party thereto, provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses are determined by a
court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee or
arising solely from claims between or among one or more Indemnitees 
 (c)               
To the extent that the Borrower fails to pay any amount required to be
paid by it to the Administrative Agent or the Issuing Bank under paragraph (a)
or (b) of this Section, each Lender severally agrees to pay to the
Administrative Agent or the Issuing Bank, as applicable, an amount equal to the
product of such unpaid amount multiplied by a fraction, the numerator of
which is the sum of such Lender's unused Commitment plus the outstanding
principal balance of such Lender's Loans and such Lender's LC Exposure and the
denominator of which is the sum of the unused Commitments plus the
outstanding principal balance of all Lenders Loans and the LC Exposure of all
Lenders (in each case determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought or, in the event that no
Lender shall have any unused Commitments, outstanding Loans or LC Exposure at
such time, as of the last time at which any Lender had any unused Commitments,
outstanding Loans or LC Exposure), provided that the unreimbursed
expense or indemnified loss, claim, damage, liability or related expense, as
applicable, was incurred by or asserted against the Administrative Agent or the
Issuing Bank, as applicable, in its capacity as such.

(d)               
To the extent permitted by applicable law, the Borrower shall not
assert, and hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct and actual damages) arising out of, in connection with, or as a
result of, any Loan Document or any agreement, instrument or other document
contemplated thereby, the Transactions or any Loan or any Letter of Credit or
the use of the proceeds thereof.(e)               
All amounts due under this Section shall be payable promptly but in no
event later than ten days after written demand therefor.

Section 10.4           
Successors and Assigns(a)               
The provisions of the Loan Documents shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that the Borrower may not assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of
each Credit Party (and any attempted assignment or transfer by the Borrower
without such consent shall be null and void). Nothing in the Loan Documents,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby
and, to the extent expressly contemplated hereby, the Related Parties of each
Credit Party) any legal or equitable right, remedy or claim under or by reason
of any Loan Document.

(b)               
Any Lender may assign all or a portion of its rights and obligations
under the Loan Documents (including all or a portion of its Commitment or
obligations in respect of its LC Exposure, and the applicable Loans at the time
owing to it) to an Eligible Assignee, provided that (i) except in the case of an assignment to a Lender or an Affiliate or an Approved Fund
of a Lender, each of the Borrower, the Administrative Agent the Issuing Bank
must give its prior written consent to such assignment (which consent shall not
be unreasonably withheld or delayed)), (ii) except in the case of 
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an assignment to a Lender or an Affiliate or an Approved Fund of a Lender or an
assignment of the entire remaining amount of the assigning Lender's Commitment,
and the applicable Loans at the time owing to it, the aggregate amount of the
Commitment, of the assigning Lender subject to each such assignment (determined
as of the date the Assignment and Acceptance with respect to such assignment is
delivered to the Administrative Agent) shall not be less than $5,000,000 unless
the Borrower and the Administrative Agent otherwise consent, (iii) no assignments to the Borrower or any of its Affiliates shall be permitted and any
attempted assignment or transfer to the Borrower or any of its Affiliates shall
be null and void), (iv) the parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Acceptance together with,
unless otherwise agreed by the Administrative Agent, a processing and
recordation fee of $3,500, and (v) the assignee, if it shall not be a Lender,
shall deliver to the Administrative Agent an Administrative Questionnaire, and
provided further that any consent of the Borrower otherwise required under this
paragraph shall not be required if a Default has occurred and is continuing. 
Subject to acceptance and recording thereof pursuant to paragraph (d) of this
Section, from and after the effective date specified in each Assignment and
Acceptance, the assignee thereunder shall be a party hereto and, to the extent
of the interest assigned by such Assignment and Acceptance, have the rights and
obligations of a Lender under the Loan Documents, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Acceptance, be released from its obligations under the Loan Documents (and, in
the case of an Assignment and Acceptance covering all of the assigning Lender's
rights and obligations under the Loan Documents, such Lender shall cease to be
a party hereto but shall continue to be entitled to the benefits of Sections
3.5, 3.6, 3.7 and 10.3). Any assignment or transfer by
a Lender of rights or obligations under the Loan Documents that does not comply
with this paragraph shall be treated for purposes of the Loan Documents as a
sale by such Lender of a participation in such rights and obligations in
accordance with paragraph (e) of this Section.(c)               
The Administrative Agent, acting for this purpose as an agent of the
Borrower, shall maintain a copy of each Assignment and Acceptance delivered to
it and a register for the recordation of the names and addresses of the
Lenders, and the Commitments of, and principal amount of the Loans owing to,
each Lender pursuant to the terms hereof from time to time (the "Register").
The entries in the Register shall be conclusive absent clearly demonstrable
error, and the Borrower and each Credit Party may treat each Person whose name
is recorded in the Register pursuant to the terms hereof as a Lender hereunder
for all purposes of this Credit Agreement, notwithstanding notice to the
contrary. The Register shall be available for inspection by the Borrower and
any Credit Party, at any reasonable time and from time to time upon reasonable
prior notice.

(d)               
Upon its receipt of a duly completed Assignment and Acceptance executed
by an assigning Lender and an assignee, the assignee's completed Administrative
Questionnaire (unless the assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b) of this Section and
any written consent to such assignment required by paragraph (b) of this
Section, the Administrative Agent shall accept such Assignment and Acceptance
and record the information contained therein in the Register. No assignment
shall be effective for purposes of this Credit Agreement unless it has been
recorded in the Register as provided in this paragraph.(e)               
Any Lender may, without the consent of the Borrower or any Credit Party,
sell participations to one or more banks or other entities (each such bank or
other entity being called a "Participant") in all or a portion of such
Lender's rights and obligations under the Loan Documents (including all or a
portion of its Commitment, LC Exposure and outstanding Loans owing to it), provided
that (i) such Lender's obligations under the Loan Documents shall remain
unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations, (iii) the Borrower and the Credit Parties shall continue to deal solely and directly with 

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such Lender
in connection with such Lender's rights and obligations under the Loan
Documents and (iv) no participations to the Borrower or any of its Affiliates
shall be permitted (and any attempted participation to the Borrower or any of
its Affiliates shall be null and void). Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall
retain the sole right to enforce the Loan Documents and to approve any
amendment, modification or waiver of any provision of any Loan Documents, provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, modification or
waiver described in the first proviso to Section 10.2(b) that affects
such Participant. Subject to paragraph (f) of this Section, the Borrower agrees
that each Participant shall be entitled to the benefits of Sections 3.5,
3.6 and 3.7 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this Section.
To the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 10.8 as though it were a Lender, provided
that such Participant agrees to be subject to Section 2.9(c) as though
it were a Lender.(f)                
A Participant shall not be entitled to receive any greater payment under
Sections 3.5 or 3.7 than the Lender that sold the participation
to such Participant would have been entitled to receive with respect to the
interest in the Loan Documents subject to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the Borrower's prior written consent. A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of Section
3.7 unless the Borrower is notified of the participation sold to such
Participant and such Participant agrees, for the benefit of the Borrower, to
comply with Section 3.7(c) as though it were a Lender.

(g)               
Any Lender may at any time pledge or assign a security interest in all
or any portion of its rights under the Loan Documents to secure obligations of
such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest, provided that no such pledge or
assignment of a security interest shall release a Lender from any of its
obligations under the Loan Documents or substitute any such pledgee or assignee
for such Lender as a party hereto.
(h)               
Notwithstanding anything to the contrary contained herein, any Lender (a
"Granting Lender") may grant to an Eligible SPC, identified as such in
writing to the Administrative Agent and the Borrower, the option to fund all or
any part of any Loan that such Granting Lender would otherwise be obligated to
fund pursuant to this Credit Agreement, provided that (i) such designation shall not be effective unless the Borrower consents thereto (which
consent shall not be unreasonably withheld), (ii) nothing herein shall constitute a commitment by any Eligible SPC to fund any Loan, and (iii) if an Eligible SPC elects not to exercise such option or otherwise fails to fund
all or any part of such Loan, the Granting Lender shall be obligated to fund
such Loan pursuant to the terms hereof.  The funding of a Loan by an Eligible
SPC hereunder shall utilize the Commitment of the Granting Lender to the same
extent, and as if, such Loan were funded by such Granting Lender.  As to any
Loans or portion thereof made by it, each Eligible SPC shall have all the
rights that a Lender making such Loans or portion thereof would have had under this
Credit Agreement and otherwise, provided that (x) its voting rights
under this Credit Agreement shall be exercised solely by its Granting Lender
(y) its Granting Lender shall remain solely responsible to the other parties
hereto for the performance of such Granting Lender's obligations under this
Credit Agreement, including its obligations in respect of the Loans or portion
thereof made by it and (z) the Borrower shall continue to deal solely and
directly with such Granting Lender in connection with the Granting Lender's
rights and obligations under the Loan Documents.  Each Granting Lender shall
act as administrative agent for its Eligible SPC and give and receive notices
and other communications on its behalf.  Any payments for the account of any
Eligible SPC shall be paid to its Granting Lender as administrative

-59-

 agent for
such Eligible SPC and neither the Borrower nor the Administrative Agent shall
be responsible for any Granting Lender's application of such payments.  Each
party hereto hereby agrees that no Eligible SPC shall be liable for any
indemnity or payment under this Credit Agreement for which a Lender would
otherwise be liable for so long as, and to the extent, the Granting Lender
provides such indemnity or makes such payment.  Notwithstanding anything to the
contrary contained in this Credit Agreement, any Eligible SPC may (i) at any
time, subject to payment of the processing and recordation fee referred to in Section
10.4(b), assign all or a portion of its interests in any Loans to its
Granting Lender (but nothing contained herein shall be construed in derogation
of the obligation of the Granting Lender to make Loans hereunder) or to any Eligible
Assignee consented to by the Borrower and the Administrative Agent (which
consents shall not be unreasonably withheld or delayed or, in the case of the
Borrower's consent, shall not be required during the continuance of an Event of
Default) providing liquidity and/or credit support to or for the account of
such Eligible SPC to support the funding or maintenance of Loans, and (ii) disclose
on a confidential basis any non-public information relating to its funding of
Loans to any rating agency, commercial paper dealer or provider of any surety
or guarantee or credit or liquidity enhancements  to such Eligible SPC.  This
Section may not be amended without the prior written consent of each Granting
Lender, all or any part of whose Loans is being funded by an Eligible SPC at
the time of such amendment.Section 10.5           
Survival

All covenants, agreements, representations and
warranties made by the Borrower herein and in the certificates or other
instruments prepared or delivered in connection with or pursuant to this Credit
Agreement or any other Loan Document shall be considered to have been relied
upon by the other parties hereto and shall survive the execution and delivery
of any Loan Document and the making of any Loans and the issuance of any Letter
of Credit, regardless of any investigation made by any such other party or on
its behalf and notwithstanding that any Credit Party may have had notice or knowledge
of any Default or incorrect representation or warranty at the time any credit
is extended hereunder, and shall continue in full force and effect as long as
the principal of or any accrued interest on any Loan or any LC Disbursement or
any fee or any other amount payable under the Loan Documents is outstanding and
unpaid or any Letter of Credit is outstanding and so long as the Commitments
have not expired or terminated. The provisions of Sections 3.5, 3.6,
3.7, 10.3, 10.9, 10.10 and Article 9 shall
survive and remain in full force and effect regardless of the consummation of
the transactions contemplated hereby, the repayment of the Loans and the LC
Disbursements, the expiration or termination of the Letters of Credit and the
termination of the Commitments or the termination of this Credit Agreement or
any provision hereof.

Section 10.6           
Counterparts; Integration; Effectiveness
This Credit Agreement may be executed in counterparts (and
by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which, when taken together, shall constitute
but one contract. This Credit Agreement and any separate letter agreements with
respect to fees payable to any Credit Party or the syndication of the credit
facility established hereunder constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof. Except as provided in Section 5.1, this Credit Agreement shall
become effective as of the date set forth in the preamble to this Credit
Agreement when it shall have been executed by the Administrative Agent and when
the Administrative Agent shall have received counterparts hereof which, when
taken together, bear the signatures of each of the other parties and thereafter
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns. Delivery of an executed counterpart of this
Credit Agreement by facsimile 

-60-

transmission shall be effective as delivery of a
manually executed counterpart of this Credit Agreement.

Section 10.7           
SeverabilityIn the event any one or more of the provisions
contained in this Credit Agreement should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired thereby (it being understood that the invalidity of a particular
provision in a particular jurisdiction shall not in and of itself affect the
validity of such provision in any other jurisdiction).  The parties shall
endeavor in good faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which comes
as close as possible to that of the invalid, illegal or unenforceable
provisions.

Section 10.8           
Right of Set‐off
If an Event of Default shall have occurred and be
continuing, and the acceleration of the obligations owing in connection with
the Loan Documents, or at any time upon the occurrence and during the
continuance of an Event of Default under clause (a) of Article 8, each
of the Lenders and their respective Affiliates is hereby authorized at any time
and from time to time, to the fullest extent permitted by applicable law, to
set‐off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other obligations at any
time owing by it to or for the credit or the account of the Borrower against
any of and all the obligations of the Borrower now or hereafter existing under
this Credit Agreement and the other Loan Documents held by it, irrespective of
whether or not it shall have made any demand therefor and although such
obligations may be unmatured.  The rights of each of the Lenders and their
respective Affiliates under this Section are in addition to other rights and
remedies (including other rights of set‐off) that it may have.  Each
Lender agrees promptly to notify the Borrower and the Administrative Agent after
any such set off and application made by such Lender, provided that the
failure to give such notice shall not affect the validity of such set off and
application.

Section 10.9           
Governing Law; Jurisdiction; Consent to Service of Process
(a)               
This Credit Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York.

(b)               
The Borrower hereby irrevocably and unconditionally submits, for itself
and its property, to the nonexclusive jurisdiction of any New York State court
or Federal court of the United States of America sitting in New York City, and
any appellate court from any thereof, in any action or proceeding arising out
of or relating to this Credit Agreement or the other Loan Documents, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that, to the extent permitted by
applicable law, all claims in respect of any such action or proceeding may be
heard and determined in such New York State court or, to the extent permitted
by applicable law, in such Federal court. Each of the parties hereto agrees
that a final judgment in any such 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. Nothing in this Credit Agreement shall affect any right
that the Administrative Agent or any other Credit Party may otherwise have to
bring any action or proceeding relating to this Credit Agreement or the other
Loan Documents against the Borrower, or any of its property, in the courts of
any jurisdiction.
-61-

(c)               
The Borrower hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection that it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Credit Agreement or the other Loan Documents
in any court referred to in paragraph (b) of this Section. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by applicable
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.(d)               
The Borrower irrevocably consents to service of process in the manner
provided for notices in Section 10.1. Nothing in this Credit Agreement
will affect the right of any party to this Credit Agreement to serve process in
any other manner permitted by law.

Section 10.10    
WAIVER
OF JURY TRIAL

EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS CREDIT AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS.
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS TO WHICH IT IS A
PARTY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

Section 10.11        
HeadingsArticle and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of
this Credit Agreement and shall not affect the construction of, or be taken
into consideration in interpreting, this Credit Agreement.

Section 10.12        
Interest Rate LimitationNotwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan or LC
Disbursement, together with all fees, charges and other amounts that are
treated as interest thereon under applicable law (collectively the "charges"),
shall exceed the maximum lawful rate (the "maximum rate") that may be
contracted for, charged, taken, received or reserved by the Lender holding an
interest in such Loan or LC Disbursement in accordance with applicable law, the
rate of interest payable in respect of such Loan or LC Disbursement hereunder,
together with all of the charges payable in respect thereof, shall be limited
to the maximum rate and, to the extent lawful, the interest and the charges
that would have been payable in respect of such Loan or LC Disbursement but
were not payable as a result of the operation of this Section shall be
cumulated, and the interest and the charges payable to such Lender in respect
of other Loans or LC Disbursements or periods shall be increased (but not above
the maximum rate therefor) until such cumulated amount, together with interest
thereon at the Federal Funds Effective Rate to the date of repayment, shall
have been received by such Lender.

-62-

Section 10.13        
AdvertisementThe Borrower hereby authorizes each of BNY to
publish the name of the Borrower and the amount of the financing evidenced
hereby in any "tombstone" or comparable advertisement which BNY elects to
publish.  In addition, the Borrower agrees that BNY may provide lending
industry trade organizations with information necessary and customary for
inclusion in league table measurements after the Closing Date.

Section 10.14        
USA Patriot Act NoticeEach Lender that is subject to the Patriot Act
(as hereinafter defined) and the Administrative Agent (for itself and not on
behalf of any Lender) hereby notifies the Borrower that pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the "Patriot Act"), it is required to obtain,
verify and record information that identifies the Borrower, which information
includes the name and address of the Borrower and other information that will
allow such Lender or the Administrative Agent, as applicable, to identify the
Borrower in accordance with the Patriot Act.

Section 10.15        
Treatment of Certain InformationEach Credit Party agrees to use reasonable
precautions to keep confidential, in accordance with its customary procedures
for handling confidential information of the same nature, all non‐public
information supplied by the Borrower or any Subsidiary pursuant to this Credit
Agreement which (i) is clearly identified by such Person as being confidential
at the time the same is delivered to such Credit Party or (ii) constitutes any
financial statement, financial projections or forecasts, budget, Compliance
Certificate, audit report, management letter or accountants' certification
delivered hereunder ("Information"), provided that nothing herein shall
limit the disclosure of any information (a) to any of its respective Related
Parties that needs to know such information, (b) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, or
requested by any bank regulatory authority, (c) on a confidential basis, to
prospective lenders or participants or their counsel, (d) to auditors,
accountants, consultants and advisors, and any analogous counterpart thereof,
(e) to any other Credit Party, (f) in connection with any litigation to which
any one or more of the Credit Parties is a party, (g) to the extent such
information (A) becomes publicly available other than as a result of a breach
of this Credit Agreement, (B) becomes available to any of the Credit Parties on
a non‐confidential basis from a source other than the Borrower or any of
its Affiliates or (C) was available to the Credit Parties on a non‐confidential
basis prior to its disclosure to any of them by the Borrower or any of its
Affiliates; and (h) to the extent the Borrower shall have consented to such
disclosure in writing.

[Signature pages follow]

-63-

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

 

 

  	
      CLECO POWER LLC

	
      
      By:  
  /s/
  Dilek Samil____________________ 

	
      
      Name:   Dilek
  Samil

	
      
      Title:   Chief
  Financial Officer

CLECO
POWER LLC

CREDIT
AGREEMENT

 

 

 

  	
      THE BANK OF NEW YORK,
  individually, as 

      Issuing Bank, and as Administrative Agent 

	
      By: 
      /s/
  Cynthia D. Howells_____________ 

	
      Name: Cynthia D. Howells

	
      Title: Vice President

CLECO
POWER LLC

CREDIT
AGREEMENT

 

 

 

  	
      JPMORGAN CHASE BANK, N.A., 

      individually, and as a
  Syndication Agent 

	
      By:  
      /s/ Robert W. Traband______________ 

	
      
      Name: Robert
  W. Traband

	
      
      Title: Vice
  President

CLECO
POWER LLC

CREDIT
AGREEMENT

 

 

 

  	
      WESTLB AG, NEW YORK BRANCH, 

      individually, and as a
  Syndication Agent 

	
      By:  /s/ James Brown___________________
      

	
      
      Name: James
  Brown

	
      
      Title:
  Managing Director

	
      
	
      By: 
      /s/ Seth McIntosh___________________ 

	
      
      Name: Seth 
  McIntosh

	
      
      Title: Manager

CLECO
POWER LLC

CREDIT
AGREEMENT

 

 

 

  	
      KEYBANK NATIONAL ASSOCIATION, 

      individually, and as a
  Documentation Agent 

	
      By: /s/ Lawrence A. Mack_______________
      

	
      
      Name: Lawrence
  A. Mack

	
      
      Title: Senior
  Vice President Portfolio Management

CLECO
POWER LLC

CREDIT
AGREEMENT

 

 

 

  	
      UNION BANK OF CALIFORNIA, N.A.,

 individually, and as
  a Documentation Agent 

	
      By: 
      /s/ Efrain
  Soto____________________

	
      
      Name: Efrain
  Soto

	
      
      Title: Vice
  President

CLECO
POWER LLC

CREDIT
AGREEMENT

 

 

 

  	
      CALYON, NEW YORK BRANCH

	
      By:  
      /s/ Olivier Audemard________________ 

	
      
      Name: Olivier
  Audemard

	
      
      Title:
  Managing Director

	
      
	
      By: 
      /s/ Attila Coach____________________ 

	
      
      Name: Attila
  Coach

	
      
      Title:
  Managing Director

CLECO
POWER LLC

CREDIT
AGREEMENT

 

 

 

  	
      
      COBANK, ACB

	
      
	
      By: 
      /s/ Paul M. Podany_________________ 

	
      
      Name: Paul M.
  Podany

	
      
      Title:
  Assistant Vice President

CLECO
POWER LLC

CREDIT
AGREEMENT

 

 

 

  	
      COMERICA BANK

	
      By: /s/ Gerald R. Finney, Jr.________________
      

	
      
      Name: Gerald
  R. Finney, Jr.

	
      
      Title: Vice
  President

CLECO
POWER LLC

CREDIT
AGREEMENT

 

 

 

  	
      MIZUHO CORPORATE BANK, LTD.

      
	
      By: 
      /s/ Mark Gronich_____________________ 

	
      
      Name: Mark
  Gronich

	
      
      Title: Senior
  Vice President

CLECO
POWER LLC

CREDIT
AGREEMENT

 

 

 

  	
      SOCIETE GENERALE

	
      By: 
      /s/ Nigel
  Elvey_______________________

	
      
      Name: Nigel
  Elvey

	
      
      Title: Vice
  President

CLECO
POWER LLC

CREDIT
AGREEMENT

 

 

 

  	
      UFJ BANK LIMITED

	
      By: /s/ John T. Feeney_______________
      

	
      
      Name: John T.
  Feeney

	
      
      Title: Vice
  President

CLECO
POWER LLC

CREDIT
AGREEMENT

 

 

 

  	
      BANK HAPOALIM B.M.

	
      By: /s/ Helen H. Gateson________________
      

	
      
      Name: Helen H.
  Gateson

	
      
      Title: Vice
  President

	
      
	
      By: /s/ Laura Anne Raffa________________
      

	
      
      Name: Laura
  Anne Raffa

	
      
      Title:
  Executive Vice President and Corporate Manager

CLECO
POWER LLC

CREDIT
AGREEMENT

 

 

 

  	
      CREDIT SUISSE FIRST BOSTON,
  acting 

      through its Cayman Islands Branch

	
      
      By:  /s/
  Sarah Wu                                        
      
Name: Sarah Wu

	
      
      Title:
  Director

	
       

	
      
      By: /s/
  Denise L. Alvarez                             
      
Name: Denise L. Alvarez

	
      
      Title:
  Associate

CLECO
POWER LLC

CREDIT
AGREEMENT

 

 

 

  	
      GOLDMAN SACHS CREDIT
  PARTNERS 

      L.P.

	
      
      By: /s/
  William W. Archer                               
      
Name: William W. Archer

	
      
      Title:
  Managing Director

CLECO
POWER LLC

CREDIT
AGREEMENT

 

 

 

  	
      HIBERNIA NATIONAL BANK

      
	
      
      By: /s/
  Kermit W. Pharris, Jr.              
      
Name: Kermit W. Pharris, Jr.

	
      
      Title:
  Vice President

CLECO
POWER LLC

CREDIT
AGREEMENT

 

 

 

  	
      WHITNEY NATIONAL BANK

      
	
      
      By: /s/
  Edgar W. Santa Cruz III             
      
Name: Edgar W. Santa Cruz III

	
      
      Title:
  Vice President

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