Document:

EXHIBIT 10.31

                                                                 Execution Copy

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

                                CREDIT AGREEMENT

                                   dated as of

                                  JULY 31, 2000

                                     between

                            LIBERTY ELECTRIC PA, LLC

                          The BANK LENDERS Party Hereto

                                       and

                            THE CHASE MANHATTAN BANK,
                             as Administrative Agent

                                  $168,500,000

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

<PAGE>

                                TABLE OF CONTENTS

                                                                          PAGE
                                                                          ----

     ARTICLE I.     DEFINITIONS.............................................1

 SECTION 1.01.  DEFINED TERMS...............................................1
 SECTION 1.02.  CLASSIFICATION OF LOANS AND BORROWINGS......................1
 SECTION 1.03.  TERMS GENERALLY.............................................1

     ARTICLE II.    THE CREDITS.............................................1

 SECTION 2.01.  LOANS AND BORROWINGS........................................1
 SECTION 2.02.  NOTICE OF BORROWING.........................................1
 SECTION 2.03.  LETTERS OF CREDIT...........................................1
 SECTION 2.04.  FUNDING OF BORROWINGS.......................................1
 SECTION 2.05.  INTEREST ELECTIONS..........................................1
 SECTION 2.06.  TERMINATION AND REDUCTION OF THE COMMITMENTS................1
 SECTION 2.07.  REPAYMENT OF LOANS; EVIDENCE OF DEBT........................1
 SECTION 2.08.  PREPAYMENT OF LOANS.........................................1
 SECTION 2.09.  FEES........................................................1
 SECTION 2.10.  INTEREST....................................................1
 SECTION 2.11.  ALTERNATE RATE OF INTEREST..................................1
 SECTION 2.12.  INCREASED COSTS.............................................1
 SECTION 2.13.  BREAK FUNDING PAYMENTS......................................1
 SECTION 2.14.  TAXES.......................................................1
 SECTION 2.15.  PAYMENTS GENERALLY; PRO RATA TREATMENT; SHARING OF
                SET-OFFS....................................................1
 SECTION 2.16.  MITIGATION OBLIGATIONS; REPLACEMENT OF BANK LENDERS.........1

     ARTICLE III.   MISCELLANEOUS...........................................1

 SECTION 3.01.  NOTICES.....................................................1
 SECTION 3.02.  EXPENSES; INDEMNITY.........................................1
 SECTION 3.03.  SUCCESSORS AND ASSIGNS......................................1
 SECTION 3.04.  COUNTERPARTS; INTEGRATION; EFFECTIVENESS....................1
 SECTION 3.05.  SEVERABILITY................................................1
 SECTION 3.06.  GOVERNING LAW; JURISDICTION; ETC............................1
 SECTION 3.07.  WAIVER OF JURY TRIAL........................................1
 SECTION 3.08.  HEADINGS....................................................1
 SECTION 3.09.  SERVICE OF PROCESS..........................................1

SCHEDULE I - Commitments
SCHEDULE II - Amortization Schedule
SCHEDULE III - Drawdown Schedule

<PAGE>

          CREDIT AGREEMENT dated as of July 31, 2000 (the "AGREEMENT") among
LIBERTY ELECTRIC PA, LLC, a special purpose limited liability company formed
under the laws of the State of Delaware (the "BORROWER"), the BANK LENDERS party
hereto (the "BANK LENDERS") and THE CHASE MANHATTAN BANK, as Administrative
Agent (the "ADMINISTRATIVE AGENT") for and on behalf of the Bank Lenders
identified in Schedule 1 hereto.

          The Borrower, Liberty Electric Power, LLC, the Lenders (as defined in
the Master Agreement) and the Chase Manhattan Bank as Administrative Agent are
parties to a Master Agreement of even date hereof (the "MASTER AGREEMENT") under
which the Borrower has requested the Lenders (including the Bank Lenders) to
make loans and or provide letters of credit to it as described more particularly
in the Master Agreement and, inter alia, this Credit Agreement. The Bank Lenders
are prepared to make such Loans and/or provide the Letters of Credit referred to
below upon the terms and conditions of the Master Agreement and this Credit
Agreement, and, accordingly, the parties hereto agree as follows:

                             ARTICLE I. DEFINITIONS

          SECTION 1.01. DEFINED TERMS.

Unless otherwise defined herein, capitalized terms used in this Agreement shall
have the meaning assigned to them in the Master Agreement. In addition, as used
in this 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 constituting such Borrowing, are bearing
interest at a rate determined by reference to the Alternate Base Rate.

          "ADJUSTED LIBO RATE" means, with respect to any LIBOR Borrowing for
any Interest Period, an interest rate per annum (rounded upwards, if necessary,
to the next 1/100 of 1%) equal to (a) the LIBO Rate for such Interest Period
MULTIPLIED BY (b) the Statutory Reserve Rate.

          "ALTERNATE BASE RATE" means, for any day, a rate per annum equal to
the greatest of (a) the Prime Rate in effect on such day, and (b) 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, respectively.

          "APPLICABLE PERCENTAGE" means (a) with respect to any Bank Lender
under the Debt Service Reserve Facility or the Working Capital Facility for
purposes of Sections 2.03 or in respect of any indemnity claim under Section
3.02(a) arising out of an action or omission of the Issuing Bank under this
Agreement, the percentage of the Working Capital Commitments represented by such
Bank Lender's Working Capital Commitment, and (b) with respect to any Bank
Lender in respect of any indemnity claim under Section 3.02(a) arising out of an
action or omission of the Administrative Agent under this Agreement, the
percentage of the total Commitments or Loans under all Facilities hereunder
represented by the aggregate amount of such Bank Lender's Commitments or Loans
of all Facilities hereunder. If the Commitments hereunder have terminated or
expired, the Applicable Percentages shall be determined based upon the
Commitments most recently in effect, giving effect to any assignments.

          "APPLICABLE RATE" means, for any day, with respect to any ABR Loan or
LIBOR Loan, or with respect to the commitment fees and letter of credit fees
payable hereunder, as the case may be, the applicable rate per annum set forth
below under the caption "ABR/LIBOR Spread", "Commitment Fee Rate" or "Letter of
Credit Fee Rate", respectively, based upon the ratings by Moody's and S&P,
respectively, applicable on such date to the Index Debt:

<TABLE>
<CAPTION>

       Facility                  ABR/LIBOR Spread                     Commitment Fee Rate     Letter of Credit Fee Rate
                        The ABR Spread will be the higher
                        of (i) zero and (ii) 100 basis
                        points less than the LIBOR
                        Spreads for each period under
                        each Facility as listed below

<S>                     <C>                                           <C>                      <C>
TRANCHE A LOANS AND     Prior to the                                  0.375%                   N/A
COMMITMENTS             Conversion Date                = 1.250%
                        From and including the
                        Conversion Date until the
                        third anniversary thereof      = 1.250%
                        From and including the
                        third anniversary of the
                        Conversion Date until the
                        sixth anniversary of the
                        Conversion Date                = 1.375%
                        From and including the sixth
                        anniversary of the Conversion
                        Date until the termination
                        in full of the Commitments and
                        payment in full of the Loans   = 1.625%

WORKING CAPITAL LOANS   Prior to the                                  0.375%                 Prior to the
AND COMMITMENTS         Conversion Date                = 1.250%                              Conversion Date               = 1.250%
                        From and including the                                               From and including the
                        Conversion Date until the                                            Conversion Date until
                        third anniversary thereof      = 1.250%                              the third anniversary thereof = 1.250%
                        From and including the                                               From and including the
                        third anniversary of the                                             third anniversary of the
                        Conversion Date until the                                            Conversion Date until the
                        termination in full of the                                           termination in full of the
                        Commitments and the                                                  Commitments and the
                        payment in full of the                                               payment in full of the
                        Loans                          = 1.375%                              Loans                          = 1.375

DEBT SERVICE RESERVE    Prior to the                                 0.375%                  Prior to the
LOANS AND COMMITMENTS   Conversion Date               = 1.250%                               Conversion Date                = 1.250%
                        From and including the                                               From and including the
                        Conversion Date until the                                            Conversion Date until
                        third anniversary thereof     = 1.250%                               the third anniversary thereof  = 1.250%
                        From and including the                                               From and including the
                        third anniversary of the                                             third anniversary of the
                        Conversion Date until Debt                                           Conversion Date until the
                        Service Reserve Maturity Date = 1.375%                               termination in full of the
                        From and including the Debt                                          Commitments and the
                        Service Reserve Maturity                                             payment in full of the
                        Date until the payment                                               Loans                          = 1.375
                        in full of the Loans          = 1.625%
                        A3/A- or higher               = 0.750%
EQUITY BRIDGE LOANS     Baa1/BBB+                      = 0.875%    A3/A- or higher =0.200%    N/A
AND COMMITMENTS         Baa2/BBB                       = 1.000%    Baa1/BBB+  = 0.2500%
                        Baa3/BBB- or lower             = 1.250%    Baa2/BBB   = 0.300%
                                                                   Baa3/BBB- or lower= 0.375%
</TABLE>

          The commitment fee rate and spread for the Equity Bridge Loan
Commitments vary as set forth above depending on the weighted average of the
rating of the Index Debt of the guarantors guaranteeing the Members' Equity
Contribution under the Equity Contribution Agreement. The first rating refers to
the rating provided by Moody's, the second, to the rating provided by S&P. For
so long as the Columbia Energy Group is the guarantor under the Equity
Contribution Agreement the first mentioned commitment fee rate and spread shall
apply.

          For purposes of the foregoing, (i) if either Moody's or S&P shall not
have in effect a rating for the Index Debt (other than by reason of the
circumstances referred to in the last sentence of this definition), then such
rating agency shall be deemed to have established a rating of Baa3/BBB-, as
applicable; (ii) if the ratings established or deemed to have been established
by Moody's and S&P for the Index Debt shall fall within two different rating
levels listed above, the Applicable Rate shall be based on the higher of the two
ratings; and (iii) if the ratings established or deemed to have been established
by Moody's and S&P for the Index Debt shall be changed (other than as a result
of a change in the rating system of Moody's or S&P), such change shall be
effective as of the date on which it is first announced by the applicable rating
agency. Each change in the Applicable Rate shall apply during the period
commencing on the effective date of such change and ending on the date
immediately preceding the effective date of the next such change. If the rating
system of Moody's or S&P shall change, or if either such rating agency shall
cease to be in the business of rating corporate debt obligations, the Borrower
and the Bank Lenders shall negotiate in good faith to amend this definition to
reflect such changed rating system or the unavailability of ratings from such
rating agency and, pending the effectiveness of any such amendment, the
Applicable Rate shall be determined by reference to the rating most recently in
effect prior to such change or cessation.

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

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

          "DEBT PAYMENT ACCOUNT" has the meaning assigned to such term in the
Disbursement Agreement.

          "DEBT SERVICE RESERVE AVAILABILITY PERIOD" means the period from and
including the date hereof to but excluding the Debt Service Reserve Maturity
Date.

          "DEBT SERVICE RESERVE COMMITMENT" means, with respect to each Bank
Lender, the commitment, if any, of such Bank Lender to acquire participations in
Letters of Credit issued under the Debt Service Reserve Facility or to make Debt
Service Reserve Loans, expressed as an amount representing the maximum aggregate
amount of such Bank Lender's Debt Service Reserve Exposure hereunder, as such
commitment may be (a) reduced from time to time pursuant to Sections 3.2, 3.3 or
9.1 of the Master Agreement and (b) reduced or increased from time to time
pursuant to assignments by or to such Bank Lender pursuant to Section 12.4 of
the Master Agreement and Section 3.03 of this Agreement. The initial amount of
each Bank Lender's Debt Service Reserve Commitment is set forth on Schedule I,
or in the Assignment and Acceptance pursuant to which such Bank Lender shall
have assumed its Debt Service Reserve Commitment, as applicable. The initial
aggregate amount of the Bank Lenders' Debt Service Reserve Commitments is
$17,500,000.

          "DEBT SERVICE RESERVE EXPOSURE" means, with respect to any Bank Lender
at any time the sum of the outstanding principal amount of such Bank Lender's
Debt Service Reserve Loans and its LC Exposure at such time under the Debt
Service Reserve Facility.

          "DEBT SERVICE RESERVE MATURITY DATE" means the date that is the
earlier of seven (7) years after the Closing Date and the date that is five (5)
years after the Conversion Date.

          "EQUITY BRIDGE LOAN COMMITMENT" means, with respect to each Bank
Lender, the commitment, if any, of such Bank Lender to make Equity Bridge Loans,
as such commitment may be (a) reduced from time to time pursuant to Sections
3.2, 3.3 or 9.1 of the Master Agreement and (b) reduced or increased from time
to time pursuant to assignments by or to such Bank Lender pursuant to Section
12.4 of the Master Agreement and/or Section 3.03 of this Agreement. The initial
amount of each Bank Lender's Equity Bridge Loan Commitment is set forth on
Schedule I, or in the Assignment and Acceptance pursuant to which such Bank
Lender shall have assumed its Equity Bridge Loan Commitment, as applicable. The
initial aggregate amount of the Bank Lenders' Equity Bridge Loan Commitments is
$41,000,000.

          "EQUITY BRIDGE LOAN FACILITY" means the $41,000,000 equity bridge loan
facility provided by the Bank Lenders under the Credit Agreement.

          "EQUITY BRIDGE LOAN MATURITY DATE" means the date that is earlier of
(i) the Conversion Date and (ii) the Date Certain.

          "EXCLUDED TAXES" means, with respect to the Administrative Agent, any
Bank Lender, either Issuing Bank or any other recipient of any payment to be
made by or on account of any obligation of the Borrower hereunder, (a) income or
franchise taxes imposed on (or measured by) its net income by the United States
of America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Bank Lender, in which its applicable lending office is located, (b) any branch
profits taxes imposed by the United States of America or any similar tax imposed
by any other jurisdiction in which the Borrower is located and (c) in the case
of a Foreign Bank Lender (other than an assignee pursuant to a request by the
Borrower under Section 2.16(b)), any withholding tax that is imposed on amounts
payable to such Foreign Bank Lender at the time such Foreign Bank Lender becomes
a party to this Agreement or is attributable to such Foreign Bank Lender's
failure or inability to comply with Section 2.14(e), except to the extent that
such Foreign Bank Lender's assignor (if any) was entitled, at the time of
assignment, to receive additional amounts from the Borrower with respect to such
withholding tax pursuant to Section 2.14(a).

          "FEDERAL FUNDS EFFECTIVE RATE" means, for any day, the weighted
average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.

          "FOREIGN BANK LENDER" means any Bank 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.

          "INDEMNIFIED TAXES" means Taxes other than Excluded Taxes.

          "INDEX DEBT" means, with respect to any Person, senior, unsecured,
long-term indebtedness for borrowed money of such Person that is not guaranteed
by any other Person or subject to any other credit enhancement.

          "INTEREST ELECTION REQUEST" means a request by the Borrower to convert
or continue a Borrowing in accordance with Section 2.05.

          "INTEREST PAYMENT DATE" means (a) with respect to any ABR Loan, each
Quarterly Date and (b) with respect to any LIBOR Loan, the last day of the
Interest Period applicable to the Borrowing of which such Loan is a part and, in
the case of a LIBOR Borrowing 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.

          "INTEREST PERIOD" means, with respect to any LIBOR 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
pertaining to a LIBOR Borrowing 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 Chase, in its capacity as an issuer of Letters of
Credit hereunder, and its successors in such capacity as provided in Section
2.03(j).

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

          "LC EXPOSURE" means, at any time under a Facility, the sum of (a) the
aggregate undrawn amount of all outstanding Letters of Credit at such time under
such Facility PLUS (b) the aggregate amount of all LC Disbursements that have
not yet been reimbursed by or on behalf of the Borrower at such time under such
Facility. The LC Exposure of any Bank Lender at any time under such Facility
shall be its Applicable Percentage of the total LC Exposure at such time under
such Facility.

          "LETTER OF CREDIT" means any letter of credit issued pursuant to this
Agreement.

          "LIBO RATE" means, with respect to any LIBOR Borrowing for any
Interest Period, (a) the rate appearing on Page 3750 of the Telerate Service (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 identified by the British
Bankers Association, 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,
or (b) in the event that such rate is not available at such time for any reason,
then the LIBO Rate with respect to such LIBOR Borrowing for such Interest Period
shall be the arithmetic average of the rates (rounded upwards, if necessary, to
the next 1/100 of 1%) at which Dollar deposits of $5,000,000 and for a maturity
comparable to such Interest Period are offered by the principal London office of
Chase in immediately available funds in the London interbank market at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

          "LIBOR", 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.

          "OTHER TAXES" means any and all present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies arising
from any payment made under any Financing Document or from the execution,
delivery or enforcement of, or otherwise with respect to, any Financing
Document.

          "PARTICIPANT" has the meaning assigned to such term in Section 3.03(c)
of the Credit Agreement.

          "PRIME RATE" means the rate of interest per annum publicly announced
from time to time by Chase as its prime rate in effect at its principal office
in New York City; each change in the Prime Rate shall be effective from and
including the date such change is publicly announced as being effective.

          "QUARTERLY DATES" means each April 15, July 15, October 15 and January
15 or, if such a date is not a Business Day, the Business Day immediately
following such date.

          "REPAYMENT DATES" means each April 15, July 15, October 15 or January
15 in each year commencing on the first such date occurring no less than three
(3) months after the Conversion Date and continuing thereafter until the Tranche
A Loan Maturity Date or, if in any such case, such date is not a Business Day,
then the Business Day immediately following such date.

          "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 (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board to which Chase is subject for eurocurrency funding
(currently referred to as "Eurocurrency liabilities" in Regulation D of the
Board). Such reserve percentages shall include those imposed pursuant to such
Regulation D. LIBOR 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
Bank Lender under such 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.

          "TRANCHE A LOAN COMMITMENT" means, with respect to each Bank Lender,
the commitment, if any, of such Bank Lender to make Tranche A Loans, as such
commitment may be (a) reduced from time to time pursuant to Sections 3.2, 3.3 or
9.1 of the Master Agreement and (b) reduced or increased from time to time
pursuant to assignments by or to such Bank Lender pursuant to Section 12.4 of
the Master Agreement or Section 3.03 of this Agreement. The initial amount of
each Bank Lender's Tranche A Loan Commitment is set forth on Schedule I, or in
the Assignment and Acceptance pursuant to which such Bank Lender shall have
assumed its Tranche A Loan Commitment, as applicable. The initial aggregate
amount of the Bank Lenders' Tranche A Loan Commitments is $105,000,000.

          "TRANCHE A LOAN MATURITY DATE" means the earlier of October 1, 2012
and the Repayment Date which occurs within 2 Business Days of the date which is
nine (9) years and nine (9) months after the first Repayment Date under the
Tranche A Facility.

          "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 the Adjusted LIBO Rate or the Alternate
Base Rate.

          "WORKING CAPITAL AVAILABILITY PERIOD" means the period from and
including the date hereof to but excluding the Working Capital Maturity Date.

          "WORKING CAPITAL COMMITMENT" means, with respect to each Bank Lender,
the commitment, if any, of such Bank Lender to make Working Capital Loans and to
acquire participations in Letters of Credit issued under the Working Capital
Facility, expressed as an amount representing the maximum aggregate amount of
such Bank Lender's Working Capital Exposure hereunder, as such commitment may be
(a) reduced from time to time pursuant to Sections 3.2, 3.3 or 9.1 of the Master
Agreement and (b) reduced or increased from time to time pursuant to assignments
by or to such Bank Lender pursuant to Section 12.4 of the Master Agreement and
Section 3.03 of this Agreement. The initial amount of each Bank Lender's Working
Capital Commitment is set forth on Schedule I, or in the Assignment and
Acceptance pursuant to which such Bank Lender shall have assumed its Working
Capital Commitment, as applicable. The initial aggregate amount of the Bank
Lenders' Working Capital Commitments is $5,000,000.

          "WORKING CAPITAL EXPOSURE" means, with respect to any Bank Lender at
any time, the sum of the outstanding principal amount of such Bank Lender's
Working Capital Loans and its LC Exposure under the Working Capital Facility at
such time.

          "WORKING CAPITAL LETTER OF CREDIT" means a Letter of Credit issued
under the Working Capital Facility.

          "WORKING CAPITAL LOAN" means a working capital loan made pursuant to
Section 3.1(e) of the Master Agreement.

          "WORKING CAPITAL MATURITY DATE" means the date that is the earlier of
the date seven (7) years after the Closing Date and the date five (5) years
after the Conversion Date.

          SECTION 1.02. CLASSIFICATION OF LOANS AND BORROWINGS.

For purposes of this Agreement, Loans may be classified and referred to by
Facility (e.g., a "TRANCHE A LOAN", a "WORKING CAPITAL LOAN" or a "EQUITY BRIDGE
LOAN") or by Type (e.g., a "LIBOR LOAN") or by Facility and Type (e.g., a "LIBOR
WORKING CAPITAL LOAN"). Borrowings also may be classified and referred to by
Facility (e.g., a "TRANCHE A LOAN BORROWING") or by Type (e.g., a "LIBOR
BORROWING") or by Facility and Type (e.g., a "LIBOR TRANCHE A LOAN BORROWING").

          SECTION 1.03. 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
(a) 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
(subject to any restrictions on such amendments, supplements or modifications
set forth herein), (b) any reference herein to any Person shall be construed to
include such Person's successors and assigns, (c) the words "herein", "hereof"
and "hereunder", and words of similar import, shall be construed to refer to
this Agreement in its entirety and not to any particular provision hereof, (d)
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 Agreement and (e) 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.

                            ARTICLE II. THE CREDITS

          SECTION 2.01. LOANS AND BORROWINGS.

          (a) THE LOANS. Subject to the terms and conditions set forth herein
and in the Master Agreement, each Bank Lender severally agrees to make the
Tranche A Loans, the Equity Bridge Loans, the Debt Service Reserve Loans and the
Working Capital Loans to the extent more particularly described in Sections
3.1(a), (c), (d) and (e) respectively, of the Master Agreement.

          (b) OBLIGATIONS OF BANK LENDERS. Each Loan hereunder shall be made as
part of a Borrowing consisting of Loans of the same Facility and Type made by
the Bank Lenders ratably in accordance with their respective Commitments under
the applicable Facility. The failure of any Bank Lender to make any Loan
required to be made by it shall not relieve any other Bank Lender of its
obligations hereunder; PROVIDED that the Commitments of the Bank Lenders are
several and no Bank Lender shall be responsible for any other Bank Lender's
failure to make Loans as required.

          (c) TYPE OF LOANS. Subject to Section 2.11, each Borrowing shall be
composed entirely of ABR Loans or LIBOR Loans as the Borrower may request in
accordance herewith. Each Bank Lender at its option may make any LIBOR Loan by
causing any domestic or foreign branch or Affiliate of such Bank Lender to make
such Loan; PROVIDED that any exercise of such option shall not affect the
obligation of such Bank Lender to fund the LIBOR Loan, the obligation of the
Borrower to repay such Loan in accordance with the terms of this Agreement or
the cost to the Borrower of such Loan.

          (d) MINIMUM AMOUNTS; LIMITATION ON NUMBER OF BORROWINGS. With respect
to any Borrowing made under the Tranche A Facility or the Equity Bridge Loan
Facility, at the commencement of each Interest Period for any LIBOR or ABR
Borrowing, such Borrowing shall be in an aggregate amount of $500,000 or a
larger multiple of $100,000 in excess of $500,000 or, to the extent that the
remaining Commitments outstanding under the applicable Facility are less than
$500,000, such lesser amount. With respect to any Borrowing made under the
Working Capital Facility or the Debt Service Reserve Facility, at the
commencement of each Interest Period for any LIBOR or ABR Borrowing, such
Borrowing shall be in an aggregate amount of $300,000 or a larger multiple of
$100,000 in excess of $300,000 or, to the extent that the remaining Commitments
under the Working Capital Facility are less than $300,000, such lesser amount;
PROVIDED, however, that an ABR Borrowing may be in an aggregate amount that is
equal to the entire unused balance of the total Commitments under the applicable
Facility or that is required to finance the reimbursement of an LC Disbursement
as contemplated by Section 2.03(f). Borrowings of more than one Type and
Facility may be outstanding at the same time; PROVIDED that there shall not at
any time be more than a total of four LIBOR Borrowings outstanding.

          (e) LIMITATIONS ON LENGTHS OF INTEREST PERIODS. Notwithstanding any
other provision of this Agreement, the Borrower shall not be entitled to
request, or to elect to convert to or continue as a LIBOR Borrowing: (i) any
Equity Bridge Loan Borrowing if the Interest Period requested with respect
thereto would end after the Equity Bridge Loan Maturity Date; (ii) any Working
Capital Loan Borrowing if the Interest Period requested with respect thereto
would end after the Working Capital Maturity Date; (iii) any Debt Service
Reserve Loan Borrowing if the Interest Period requested with respect thereto
would end after the Debt Service Reserve Maturity Date or (iv) any Tranche A
Loan Borrowing if the Interest Period therefor would commence before and end
after any Principal Payment Date unless, after giving effect thereto, the
aggregate principal amount of the Tranche A Loans having Interest Periods that
end after such Principal Payment Date shall be equal to or less than the
aggregate principal amount of the Tranche A Loans permitted to be outstanding
after giving effect to the payments of principal required to be made on such
Principal Payment Date.

          SECTION 2.02. NOTICE OF BORROWING.

To request a Borrowing, the Borrower shall notify the Administrative Agent of
such request by providing a Notice of Borrowing in the form attached as Exhibit
F to the Master Agreement (a) in the case of a LIBOR Borrowing, not later than
11:00 a.m., New York City time, three Business Days before the date of the
proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 11:00
a.m., New York City time, one Business Day before the date of the proposed
Borrowing; PROVIDED that any such notice of an ABR Debt Service Reserve Loan
Borrowing or an ABR Working Capital Loan Borrowing to finance the reimbursement
of an LC Disbursement as contemplated by Section 2.03(f) may be given not later
than 10:00 a.m., New York City time, on the date of the proposed Borrowing. Each
such Notice of Borrowing shall be irrevocable and shall specify the following
information in compliance with Section 2.01:

               (i) whether the requested Borrowing is to be a Tranche A Loan
     Borrowing, an Equity Bridge Loan Borrowing, a Debt Service Reserve Loan
     Borrowing or a Working Capital Loan Borrowing;

               (ii) the aggregate amount of the requested Borrowing;

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

               (iv) whether such Borrowing is to be an ABR Borrowing or a LIBOR
     Borrowing;

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

               (vi) the location and number of the Borrower's account to which
     funds are to be disbursed, which shall comply with the requirements of
     Section 2.04.

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 LIBOR Borrowing, then the Borrower shall be deemed to
have selected an Interest Period of one month's duration. Promptly following
receipt of a Notice of Borrowing in accordance with this Section, the
Administrative Agent shall advise each Bank Lender of the details thereof and of
the amount of such Bank Lender's Loan to be made as part of the requested
Borrowing.

The Borrower may only request two Borrowings per calendar month under the
Tranche A Facility and the Equity Bridge Loan Facility collectively.

          SECTION 2.03. LETTERS OF CREDIT.

          (a) GENERAL. Subject to the terms and conditions set forth herein and
in the Master Agreement, in addition to the Loans provided for in Section 2.01,
the Borrower may request the Issuing Bank to issue, at any time and from time to
time (i) with respect to the Debt Service Reserve Facility, as and from the
Conversion Date until the Debt Service Reserve Maturity Date, and (ii) with
respect to the Working Capital Facility, as and from the date which is six (6)
months prior to the Scheduled Conversion Date until the Working Capital Maturity
Date, Letters of Credit for its own account in such form as is acceptable to the
Issuing Bank in its reasonable determination. Letters of Credit issued hereunder
shall constitute utilization of the Debt Service Reserve Commitment or the
Working Capital Commitment, as applicable.

          (b) NOTICE OF ISSUANCE, AMENDMENT, RENEWAL OR EXTENSION. To request
the issuance of a Letter of Credit (or the amendment, renewal or extension of an
outstanding Letter of Credit) under the Debt Service Reserve Facility or the
Working Capital Facility, the Borrower shall hand deliver or telecopy (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
(reasonably in advance of the requested date of issuance, reimbursement renewal
or extension) a notice requesting the issuance of a Letter of Credit under the
applicable Facility, 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 (d) 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. If requested by the Issuing Bank, the Borrower
also shall submit a letter of credit application on such Issuing Bank's standard
form in connection with any request for a Letter of Credit. In the event of any
inconsistency between the terms and conditions of this 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
Agreement shall control.

          (c) LIMITATIONS ON AMOUNTS. 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 aggregate LC Exposure of the Issuing Bank (determined for
these purposes without giving effect to the participations therein of the Bank
Lenders pursuant to paragraph (e) of this Section) shall not exceed $17,500,000
under the Debt Service Reserve Facility or $5,000,000 under the Working Capital
Facility, (ii) the total Working Capital Exposures shall not exceed the total
Working Capital Commitments and (iii) the total Debt Service Reserve Exposures
shall not exceed the total Debt Service Reserve Commitments.

          (d) EXPIRATION DATE. Each Letter of Credit issued under the Debt
Service Reserve Facility or the Working Capital Facility shall expire on the
Debt Service Reserve Maturity Date or the Working Capital Maturity Date, as
applicable.

          (e) PARTICIPATIONS. By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) under either the
Debt Service Reserve Facility or the Working Capital Facility by the Issuing
Bank, and without any further action on the part of the Issuing Bank or the Bank
Lenders, the Issuing Bank hereby grants to each Bank Lender, and each Bank
Lender hereby acquires from the Issuing Bank, a participation in such Letter of
Credit equal to such Bank Lender's Applicable Percentage of the aggregate amount
available to be drawn under such Letter of Credit. Each Bank Lender acknowledges
and agrees that its obligation to acquire participations pursuant to this
paragraph in respect of such 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, subject to the
provisions of Section 2.03(c).

          In consideration and in furtherance of the foregoing, each Bank Lender
hereby absolutely and unconditionally agrees to pay to the Administrative Agent,
for account of the Issuing Bank, such Bank Lender's Applicable Percentage of
each LC Disbursement made in connection with any Letter of Credit issued under
the Working Capital Facility or the Debt Service Reserve Facility by the Issuing
Bank promptly upon the request of the Issuing Bank at any time from the time of
such LC Disbursement until such LC Disbursement is reimbursed by the Borrower or
at any time after any reimbursement payment is required to be refunded to the
Borrower for any reason. Each such payment shall be made without any offset,
abatement, withholding or reduction whatsoever in the same manner as provided in
Section 2.04 with respect to Loans made by such Bank Lender (and Section 2.04
shall apply, MUTATIS MUTANDIS, to such payment obligations of the Bank Lenders),
and the Administrative Agent shall promptly pay to the Issuing Bank the amounts
so received by it from the Bank Lenders. Promptly following receipt by the
Administrative Agent of any payment from the Borrower pursuant to the next
following paragraph, the Administrative Agent shall distribute such payment to
the Issuing Bank or, to the extent that the Bank Lenders have made payments
pursuant to this paragraph to reimburse the Issuing Bank, then to such Bank
Lenders and the Issuing Bank as their interests may appear in accordance with
such Bank Lender's Applicable Percentage. Any payment made by a Bank Lender
pursuant to this paragraph to reimburse the Issuing Bank for any LC Disbursement
shall not constitute a Loan and shall not relieve the Borrower of its obligation
to reimburse such LC Disbursement.

          (f) REIMBURSEMENT. If the Issuing Bank shall make any LC Disbursement
in respect of a Letter of Credit whether under the Debt Service Reserve Facility
or the Working Capital Facility, the Borrower shall reimburse the Issuing Bank
in respect of such LC Disbursement by paying to the Administrative Agent an
amount equal to such LC Disbursement not later than 12:00 noon, New York City
time, on (i) the Business Day that the Borrower receives notice of such LC
Disbursement, if such notice is received prior to 10:00 a.m., New York City
time, or (ii) the Business Day immediately following the day that the Borrower
receives such notice, if such notice is not received prior to such time,
PROVIDED that, if such LC Disbursement is not less than $300,000, the Borrower
may, subject to the conditions to borrowing set forth herein and in the Master
Agreement, request in accordance with Section 2.02 that such payment be financed
with an ABR Debt Service Reserve Loan Borrowing in the case of an LC
Disbursement under the Debt Service Reserve Letter of Credit, or an ABR Working
Capital Loan Borrowing in the case of an LC Disbursement under the Working
Capital Letter of Credit, 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 Debt Service Reserve Loan Borrowing or ABR Working
Capital Loan Borrowing, as the case may be.

          If the Borrower fails to make such payment when due, the
Administrative Agent shall notify each Bank Lender of the applicable LC
Disbursement, the payment then due from the Borrower in respect thereof and such
Bank Lender's Applicable Percentage thereof.

          (g) OBLIGATIONS ABSOLUTE. The Borrower's obligation to reimburse LC
Disbursements under the Debt Service Reserve Letter of Credit or any Working
Capital Letter of Credit as provided in paragraph (f) of this Section (as well
as any Borrowings made to the Borrower to reimburse any LC Disbursements in
accordance with Section 2.03(f)) shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance with the terms of
this Agreement under any and all circumstances whatsoever and irrespective of
(i) any lack of validity or enforceability of any Letter of Credit, or any term
or provision therein, (ii) any draft or other document presented under a Letter
of Credit proving to be forged, fraudulent 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 strictly with the terms of such Letter of
Credit, and (iv) 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 the Borrower's obligations
hereunder.

          Neither the Administrative Agent, the Bank Lenders nor the Issuing
Bank, nor any of their Related Parties, shall have any liability or
responsibility by reason of or in connection with the issuance or transfer of
any Letter of Credit by the Issuing Bank 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 respective 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 (i) the Issuing Bank's gross negligence or willful
misconduct when determining whether drafts and other documents presented under a
Letter of Credit comply with the terms thereof or (ii) the Issuing Bank's
willful failure to pay under a Letter of Credit after the presentation to it by
the beneficiary under the Letter of Credit of a certificate strictly complying
with the terms and conditions of the Letter of Credit. The parties hereto
expressly agree that:

               (i) the Issuing Bank may accept documents that appear on their
     face to be in substantial compliance with the terms of a Letter of Credit
     without responsibility for further investigation, regardless of any notice
     or information to the contrary, and may make payment upon presentation of
     documents that appear on their face to be in substantial compliance with
     the terms of such Letter of Credit;

               (ii) the Issuing Bank shall have the right, in its sole
     discretion, to decline to accept such documents and to make such payment if
     such documents are not in strict compliance with the terms of such Letter
     of Credit; and

               (iii) this paragraph (g) shall establish the standard of care to
     be exercised by the Issuing Bank when determining whether drafts and other
     documents presented under a Letter of Credit comply with the terms thereof
     (and the parties hereto hereby waive, to the extent permitted by applicable
     law, any standard of care inconsistent with the foregoing).

          (h) DISBURSEMENT PROCEDURES. The Issuing Bank shall, within a
reasonable time following its receipt thereof, examine all documents purporting
to represent a demand for payment under any Letter of Credit. The Issuing Bank
shall promptly after such examination notify the Administrative Agent and the
Borrower by writing of such demand for payment and whether such 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 such Issuing Bank and the Bank Lenders with respect to
any such LC Disbursement.

          (i) 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 Tranche A Loans;
PROVIDED that, if the Borrower fails to reimburse such LC Disbursement when due
pursuant to paragraph (f) of this Section, then Section 2.10(c) shall apply.
Interest accrued pursuant to this paragraph shall be for account of the Issuing
Bank, except that interest accrued on and after the date of payment by any Bank
Lender pursuant to paragraph (f) of this Section to reimburse such Issuing Bank
shall be for account of such Bank Lender to the extent of such payment.

          (j) REPLACEMENT OF THE ISSUING BANK. The Issuing Bank may be replaced
at any time by written agreement between the Borrower, the Administrative Agent,
the replaced Issuing Bank and the successor Issuing Bank. The Administrative
Agent shall notify the Bank Lenders of any such replacement of the Issuing Bank.
At the time any such replacement shall become effective, the Borrower shall pay
all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to
Section 2.09(b). From and after the effective date of any such replacement, (i)
the successor Issuing Bank shall have all the rights and obligations of the
replaced Issuing Bank under this Agreement with respect to Letters of Credit to
be issued by it thereafter and (ii) references herein to the term "Issuing Bank"
shall be deemed to include such successor or any previous Issuing Bank, or such
successor and all previous Issuing Banks, as the context shall require. After
the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall
remain a party hereto and shall continue to have all the rights and obligations
of the Issuing Bank under this Agreement with respect to Letters of Credit
issued by it prior to such replacement, but shall not be required to issue
additional Letters of Credit.

          (k) CASH COLLATERALIZATION. If an Event of Default shall occur and be
continuing and the Borrower receives notice from the Administrative Agent, the
Collateral Agent or the Required Lenders (in conjunction with a notice provided
under Section 9.1 of the Master Agreement, or at any time thereafter) demanding
the deposit of cash collateral pursuant to this paragraph, the Borrower shall
immediately deposit into the Debt Payment Account an amount in cash equal to the
aggregate LC Exposure as of such date under the Facilities PLUS any accrued and
unpaid interest thereon 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 with respect to the Borrower described in
clause (h) or (i) of Section 9.1 of the Master Agreement. Such deposit shall be
held by the Administrative Agent in the Debt Payment Account as collateral in
the first instance for the aggregate LC Exposure under this Agreement and
thereafter for the payment of the "Secured Obligations" under and as defined in
the Intercreditor Agreement, and for these purposes the Borrower hereby grants a
security interest to the Administrative Agent for the benefit of the Bank
Lenders in the Debt Payment Account and in any financial assets (as defined in
the Uniform Commercial Code) or other property credited thereto.

          SECTION 2.04. FUNDING OF BORROWINGS.

          (a) FUNDING BY BANK LENDERS. Each Bank Lender shall make each Loan to
be made by it hereunder on the proposed date thereof by wire transfer of
immediately available funds by 12:00 noon, New York City time, (i) in the case
of any Loan made on or after the Conversion Date, to the Revenue Account, (ii)
in the case of any Loan made prior to the Conversion Date, to the Construction
Account. The Administrative Agent will make such Loans available to the Borrower
by promptly crediting the amounts so received, in like funds, to the
Construction Account or the Revenue Account, as applicable; PROVIDED that Debt
Service Reserve Loan Borrowings or Working Capital Loan Borrowings made to
finance the reimbursement of an LC Disbursement as provided in Section 2.03(f)
shall be remitted by the Administrative Agent to the Issuing Bank.

          (b) PRESUMPTION BY THE ADMINISTRATIVE AGENT. Unless the Administrative
Agent shall have received notice from a Bank Lender prior to the proposed date
of any Borrowing that such Bank Lender will not make available to the
Administrative Agent such Bank Lender's share of such Borrowing, the
Administrative Agent may assume that such Bank Lender has made such share
available on such date in accordance with paragraph (a) of this Section and may,
in reliance upon such assumption, make available to the Borrower a corresponding
amount. In such event, if a Bank Lender has not in fact made its share of the
applicable Borrowing available to the Administrative Agent, then such Bank
Lender and the Borrower severally agree, without duplication, 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 to but excluding the date of payment to the Administrative
Agent, at (i) in the case of such Bank Lender, the Federal Funds Effective Rate
or (ii) in the case of the Borrower, the interest rate applicable to ABR Loans.
If such Bank Lender pays such amount to the Administrative Agent, then such
amount shall constitute such Bank Lender's Loan included in such Borrowing.

          SECTION 2.05. INTEREST ELECTIONS.

          (a) ELECTIONS BY THE BORROWER FOR BORROWINGS. Each Borrowing initially
shall be of the Type specified in the applicable Notice of Borrowing and, in the
case of a LIBOR Borrowing, shall have an initial Interest Period as specified in
such Notice of Borrowing. Thereafter, the Borrower may elect to convert such
Borrowing to a different Type or to continue such Borrowing and, in the case of
a LIBOR 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 Bank Lenders holding the Loans comprising such
Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing.

          (b) NOTICE OF ELECTIONS. To make an election pursuant to this Section,
the Borrower shall notify the Administrative Agent of such election by the time
that a Notice of Borrowing would be required under Section 2.02 if the Borrower
were requesting a Borrowing of the Type resulting from such election to be made
on the effective date of such election. Each such written Interest Election
Request shall be irrevocable and shall be in a form approved by the
Administrative Agent and signed by the Borrower.

          (c) INFORMATION IN INTEREST ELECTION REQUESTS. Each Interest Election
Request shall specify the following information in compliance with Section 2.01:

               (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 LIBOR Borrowing; and

               (iv) if the resulting Borrowing is a LIBOR 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 under any Facility requests a LIBOR
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) NOTICE BY THE ADMINISTRATIVE AGENT TO BANK LENDERS. Promptly
following receipt of an Interest Election Request, the Administrative Agent
shall advise each Bank Lender of the details thereof and of such Bank Lender's
portion of each resulting Borrowing.

          (e) FAILURE TO ELECT; EVENTS OF DEFAULT. If the Borrower fails to
deliver a timely Interest Election Request with respect to a LIBOR Borrowing
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 then, so
long as an Event of Default is continuing (i) no outstanding Borrowing may be
converted to or continued as a LIBOR Borrowing and (ii) unless repaid, each
LIBOR Borrowing shall be converted to an ABR Borrowing at the end of the
Interest Period applicable thereto.

          SECTION 2.06. TERMINATION AND REDUCTION OF THE COMMITMENTS.

          (a) SCHEDULED TERMINATION. Unless previously terminated, (i) the
Equity Bridge Loan Commitments and the Tranche A Loan Commitments shall
terminate on the Construction Stage Commitment Termination Date, (ii) the
Working Capital Commitments shall terminate on the Working Capital Maturity
Date; and (iv) the Debt Service Reserve Commitments shall terminate on the Debt
Service Reserve Maturity Date.

          (b) VOLUNTARY TERMINATION OR REDUCTION. In accordance with Section 3.2
of the Master Agreement, the Borrower may at any time terminate, or from time to
time reduce, the Commitments under any Facility; PROVIDED that the Borrower
shall not terminate or reduce the Equity Bridge Loan Commitments, the Working
Capital Commitments or the Debt Service Reserve Commitments if, after giving
effect to any concurrent prepayment of the Loans in accordance with Section 4.3
of the Master Agreement, the total Equity Bridge Loan Exposure, Working Capital
Exposure or Debt Service Reserve Exposure would exceed the total Equity Bridge
Loan Commitment, the total Working Capital Commitments or the total Debt Service
Reserve Commitment, respectively.

          (c) NOTICE OF VOLUNTARY TERMINATION OR REDUCTION. In accordance with
Section 3.2 of the Master Agreement, the Borrower shall notify the
Administrative Agent of any election to terminate or reduce the Commitments
under any Facility under paragraph (b) of this Section. Promptly following
receipt of any notice, the Administrative Agent shall advise the Bank Lenders of
the contents thereof. Each notice delivered by the Borrower pursuant to this
Section shall be irrevocable.

          (d) EFFECT OF TERMINATION OR REDUCTION. Each reduction of the
Commitments under any Facility shall be made ratably among the Bank Lenders in
accordance with their respective Commitments under such Facility.

          SECTION 2.07. REPAYMENT OF LOANS; EVIDENCE OF DEBT.

          (a) REPAYMENT. The Borrower hereby unconditionally promises to pay the
Loans as follows:

               (i) to the Administrative Agent for account of the Bank Lenders
     the outstanding principal amount of the Equity Bridge Loans, the Working
     Capital Loans and the Debt Service Reserve Loans (to the extent such Debt
     Service Reserve Loans are made prior to the Debt Service Reserve Maturity
     Date) on the Equity Bridge Loan Maturity Date, the Working Capital Maturity
     Date and the Debt Service Reserve Maturity Date, respectively;

               (ii) to the Administrative Agent for the account of the Bank
     Lenders the outstanding principal amount of the Tranche A Loans on each
     Principal Payment Date set forth in the Amortization Schedule attached as
     Schedule II subject to adjustment pursuant to paragraph (b) of this
     Section).

In addition, to the extent there are Debt Service Reserve Loans made or
outstanding on the Debt Service Reserve Maturity Date, the Borrower hereby
unconditionally promises to pay such Debt Service Reserve Loans by paying to the
Administrative Agent for the account of the Bank Lenders a percentage of such
Debt Service Reserve Loans on each Principal Payment Date equal to the
percentage of Tranche A Loans payable on such date (calculated by taking the
amount of Tranche A Loans payable on such date as a percentage of all Tranche A
Loans outstanding on the Debt Service Reserve Maturity Date).

          (b) ADJUSTMENT OF AMORTIZATION SCHEDULE. If the initial aggregate
amount of the Tranche A Loan Commitments exceeds the aggregate principal amount
of Tranche A Loans that are outstanding on the Conversion Date, then the
scheduled repayments of Borrowings to be made pursuant to this Section shall be
reduced ratably by an aggregate amount equal to such excess. Any prepayment
under a Tranche A Loan Borrowing shall be applied to reduce the subsequent
scheduled repayments of the Tranche A Loan Borrowings to be made pursuant to
this Section ratably across maturities. To the extent not previously paid, all
Tranche A Loans shall be due and payable on the Tranche A Loan Maturity Date.

          (c) MANNER OF PAYMENT. Prior to any repayment or prepayment of any
Borrowings under any Facility hereunder, the Borrower shall select the Borrowing
or Borrowings of the applicable Facility to be paid and shall notify the
Administrative Agent of such selection not later than 11:00 a.m., New York City
time, two Business Days before the scheduled date of such repayment or five
Business days prior to payment in the case of prepayments; PROVIDED that each
repayment of Borrowings under any Facility shall be applied to repay any
outstanding ABR Borrowings of such Facility before any other Borrowings of such
Facility. If the Borrower fails to make a timely selection of the Borrowing or
Borrowings to be repaid or prepaid, such payment shall be applied, first, to pay
any outstanding ABR Borrowings of the applicable Facility and, second, to other
Borrowings of such Facility in the order of the remaining duration of their
respective Interest Periods (the Borrowing with the shortest remaining Interest
Period to be repaid first).

          (d) MAINTENANCE OF LOAN ACCOUNTS BY BANK LENDERS. Each Bank Lender
shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrower to such Bank Lender resulting from
each Loan made by such Bank Lender, including the amounts of principal and
interest payable and paid to such Bank Lender from time to time hereunder.

          (e) MAINTENANCE OF LOAN ACCOUNTS BY THE ADMINISTRATIVE AGENT. The
Administrative Agent shall maintain accounts in which it shall record (i) the
amount of each Loan made hereunder, the Facility under which such Loan was made
and Type thereof and the Interest Period applicable thereto, (ii) the amount of
any principal or interest due and payable or to become due and payable from the
Borrower to each Bank Lender hereunder and (iii) the amount of any sum received
by the Administrative Agent hereunder for account of the Bank Lenders and each
Bank Lender's share thereof.

          (f) EFFECT OF ENTRIES. The entries made in the accounts maintained
pursuant to paragraph (d) or (e) of this Section shall be PRIMA FACIE evidence
of the existence and amounts of the obligations recorded therein; PROVIDED that
the failure of any Bank 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 Agreement
and the other Financing Documents.

          (g) PROMISSORY NOTES. Any Bank Lender may request that Loans under any
Facility made by it be evidenced by a promissory note. In such event, the
Borrower shall prepare, execute and deliver to such Bank Lender a promissory
note payable to the order of such Bank Lender (or, if requested by such Bank
Lender, to such Bank Lender and its registered assigns) and in a form approved
by the Administrative Agent. Thereafter, the Loans evidenced by such promissory
note and interest thereon shall at all times (including after assignment
pursuant to Section 3.03 hereof as Section 12.4 of the Master Agreement) be
represented by one or more promissory notes in such form payable to the order of
the payee named therein (or, if such promissory note is a registered note, to
such payee and its registered assigns).

          SECTION 2.08. PREPAYMENT OF LOANS.

          NOTICES, ETC. The Borrower shall notify the Administrative Agent of
any prepayment under Section 4.2 or 4.3 of the Master Agreement (i) in the case
of prepayment of a LIBOR Borrowing, not later than 11:00 a.m., New York City
time, five Business Days before the date of prepayment or (ii) in the case of
prepayment of an ABR Borrowing, not later than 11:00 a.m., New York City time,
one Business Day before the date of prepayment. Each such notice shall be
irrevocable and shall specify the prepayment date, the principal amount of each
Borrowing or portion thereof to be prepaid and, in the case of a mandatory
prepayment, a reasonably detailed calculation of the amount of such prepayment.
Promptly following receipt of any such notice relating to a Borrowing, the
Administrative Agent shall advise the Bank Lenders of the contents thereof. Each
partial prepayment of any Borrowing shall be in an amount that would be
permitted in the case of a Borrowing of the same Type as provided in Section
2.01, except as necessary to apply fully the required amount of a mandatory
prepayment. Each prepayment of a Borrowing shall be applied ratably to the Loans
included in the prepaid Borrowing and applied ratably across the maturities
therein. Prepayments shall be accompanied by accrued interest to the extent
required by Section 2.10.

          SECTION 2.09. FEES.

          (a) COMMITMENT FEE. The Borrower agrees to pay to the Administrative
Agent for the account of each Bank Lender a commitment fee, which shall accrue
at the Applicable Rate on the average daily unused amount of the Commitments
during the following availability periods: (i) for the Equity Bridge Loan
Commitments and the Tranche A Loan Commitments, during the Construction Stage
Availability Period; (ii) for the Working Capital Commitments, during the
Working Capital Availability Period; and (iii) for the Debt Service Reserve
Commitments, during the Debt Service Reserve Availability Period. Accrued
commitment fees shall be payable on each Quarterly Date and on the earlier of
the date the relevant Commitment terminates and matures, commencing on the first
such date to occur after the date hereof. All commitment 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). For purposes
of computing commitment fees with respect to the Equity Bridge Loan Commitments
or the Working Capital Commitments, the Commitment of a Bank Lender under each
such Facility shall be deemed to be used to the extent of the outstanding Loans
and LC Exposure of such Bank Lender under such Facility.

          (b) LETTER OF CREDIT FEES. The Borrower agrees to pay (i) to the
Administrative Agent for account of each Bank Lender a letter of credit
participation fee with respect to such Bank Lender's participations in Letters
of Credit issued under the Debt Service Reserve Facility and the Working Capital
Facility, which shall accrue at a rate per annum equal to the Applicable Rate on
the average daily amount of such Bank Lender's LC Exposure under each such
Facility (excluding any portion thereof attributable to unreimbursed LC
Disbursements) PROVIDED, however, that the Borrower will remain liable for
participation fees to the Bank Lenders until such Bank Lender ceases to have any
LC Exposure under either the Debt Service Reserve Facility or the Working
Capital Facility, and (ii) to the respective Issuing Bank a fronting fee, which
shall accrue at the rate of 0.125% per annum on the average daily amount of the
LC Exposure under each such Facility (excluding any portion thereof attributable
to unreimbursed LC Disbursements) until the date on which there ceases to be any
LC Exposure with respect to the Debt Service Reserve Commitment or the Working
Capital Commitments, as the case may be, as well as such Issuing Bank's standard
fees with respect to the issuance, amendment, renewal or extension of any Letter
of Credit or processing of drawings thereunder. Participation fees and fronting
fees accrued through and including each Quarterly Date shall be payable with
respect to each Facility on the third Business Day following such Quarterly
Date, commencing on the first such date to occur after the date on which such
Facility becomes available; PROVIDED that all such fees shall be payable with
respect to a Facility on the date on which the Commitments under such Facility
terminate and any such fees accruing after the date on which such Commitments
terminate shall be payable on demand. Any other fees payable to either Issuing
Bank pursuant to this paragraph shall be payable within 10 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) PAYMENT OF FEES. All fees payable hereunder shall be paid on the
dates due, in immediately available funds, to the Administrative Agent (or to
the respective Issuing Bank, in the case of fees payable to it) for
distribution, in the case of facility fees and participation fees, to the Bank
Lenders entitled thereto. Fees paid shall not be refundable under any
circumstances.

          SECTION 2.10. INTEREST.

          (a) ABR LOANS. The Loans constituting each ABR Borrowing shall bear
interest at a rate per annum equal to the Alternate Base Rate PLUS the
Applicable Rate.

          (b) LIBOR LOANS. The Loans constituting each LIBOR Borrowing shall
bear interest at a rate per annum equal to the Adjusted LIBO Rate for the
Interest Period in effect for such Borrowing PLUS the Applicable Rate.

          (c) DEFAULT INTEREST. Notwithstanding the foregoing, if any principal
of or interest on any Loan or any fee or other amount payable by the Borrower
hereunder is not paid when due, whether at stated maturity, upon acceleration,
by mandatory prepayment 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 above or (ii) in the case of any other amount, 2% PLUS the rate
applicable to ABR Loans as provided in paragraph (a) of this Section.

          (d) PAYMENT OF INTEREST. Accrued interest on each Loan shall be
payable in arrears on each Interest Payment Date for such Loan and, in the case
of the Equity Bridge Loans, the Working Capital Loans and the Debt Service
Reserve Loans, upon termination of the Equity Bridge Loan Commitment, the
Working Capital Commitment and the Debt Service Reserve Commitment,
respectively; PROVIDED that (i) interest accrued pursuant to paragraph (c) of
this Section shall be payable on demand, (ii) in the event of any repayment or
prepayment of any Loan (other than a prepayment of any ABR Equity Bridge Loans,
ABR Working Capital Loans or ABR Debt Service Reserve Loans prior to the Equity
Bridge Loan Maturity Date, the Working Capital Maturity Date or the Debt Service
Reserve Maturity Date, as applicable), 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 LIBOR Borrowing prior to the end
of the current Interest Period therefor, accrued interest on such Borrowing
shall be payable on the effective date of such conversion.

          (e) COMPUTATION. 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
demonstrable error.

          SECTION 2.11. ALTERNATE RATE OF INTEREST.

If prior to the commencement of any Interest Period for a LIBOR Borrowing:

               (a) the Administrative Agent determines (which determination
          shall be conclusive absent demonstrable 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) with respect to a particular Facility, the Administrative
          Agent is advised by the Required Lenders under such Facility that the
          Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest
          Period (in circumstances when such rates are being determined under
          clause (b) of the definition of LIBO Rate) will not adequately and
          fairly reflect the cost to such Bank Lenders of making or maintaining
          their Loans included in such Borrowing for such Interest Period under
          such Facility;

then the Administrative Agent shall give notice thereof to the Borrower and the
Bank Lenders as promptly as practicable thereafter and, until the Administrative
Agent notifies the Borrower and the Bank 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 LIBOR Borrowing shall be ineffective and (ii) if any Notice of Borrowing
requests a LIBOR Borrowing, such Borrowing shall be made as an ABR Borrowing.

          SECTION 2.12. INCREASED COSTS.

          (a) INCREASED COSTS GENERALLY. 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 Bank Lender (except any such reserve
     requirement reflected in the Adjusted LIBO Rate) or the Issuing Bank; or

               (ii) impose on any Bank Lender or the Issuing Bank or the London
     interbank market any other condition affecting this Agreement or LIBOR
     Loans made by such Bank Lender or any Letter of Credit or participation
     therein;

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

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

          (c) CERTIFICATES FROM BANK LENDERS. A certificate of a Bank Lender or
the Issuing Bank setting forth the amount or amounts necessary to compensate
such Bank Lender or the Issuing Bank or its holding company, as the case may be,
as specified in paragraph (a) or (b) of this Section shall be delivered to the
Borrower and shall be conclusive absent manifest error. The certificate
delivered shall state the change which has occurred or the capital requirements
or other conditions which have been imposed on the Bank Lender or the Issuing
Bank or the request, direction or requirement which has been complied with,
together with the date thereof, the amount of such increased cost, reduction or
payment and the way in which such amount has been calculated. The Borrower shall
pay such Bank Lender or the Issuing Bank, as the case may be, the amount shown
as due on any such certificate within 10 days after receipt thereof.

          (d) DELAY IN REQUESTS. Failure or delay on the part of any Bank Lender
or the Issuing Bank to demand compensation pursuant to this Section shall not
constitute a waiver of such Bank Lender's or the Issuing Bank's right to demand
such compensation; PROVIDED that the Borrower shall not be required to
compensate a Bank Lender or the Issuing Bank pursuant to this Section for any
increased costs or reductions incurred more than six months prior to the date
that such Bank Lender or the Issuing Bank, as the case may be, notifies the
Borrower of the Change in Law giving rise to such increased costs or reductions
and of such Bank Lender's or such Issuing Bank's intention to claim compensation
therefor; PROVIDED FURTHER that, if the Change in Law giving rise to such
increased costs or reductions is retroactive, then the six-month period referred
to above shall be extended to include the period of retroactive effect thereof.

          SECTION 2.13. BREAK FUNDING PAYMENTS.

In the event of (a) the payment of any principal of any LIBOR 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 LIBOR Loan other than on the
last day of the Interest Period applicable thereto, (c) the failure to borrow,
convert, continue or prepay any Loan on the date specified in any notice
delivered pursuant hereto (regardless of whether such notice is permitted to be
revocable under Section 2.08 and is revoked in accordance herewith), or (d) the
assignment of any LIBOR Loan other than on the last day of the Interest Period
applicable thereto as a result of a request by the Borrower pursuant to Section
2.16, then, in any such event, the Borrower shall compensate each Bank Lender
for the loss, cost and expense attributable to such event. In the case of a
LIBOR Loan, the loss to any Bank Lender attributable to any such event shall be
deemed to include an amount determined by such Bank Lender to be equal to the
excess, if any, of (i) the amount of interest that would have accrued on such
Loan for the period from the date of such payment, conversion, failure or
assignment to the last day of the then current Interest Period for such Loan
(or, in the case of a failure to borrow, convert or continue, the duration of
the Interest Period that would have resulted from such borrowing, conversion or
continuation) at the Adjusted LIBO Rate for such Interest Period, OVER (ii) the
amount of interest that such Bank Lender would earn on such principal amount for
such period if such Bank Lender were to deposit such principal amount for such
period at the interest rate that such Bank Lender (or an affiliate of such Bank
Lender) would bid, were it to bid at the commencement of such period, for Dollar
deposits from other banks in the eurodollar market. A certificate of any Bank
Lender setting forth any amount or amounts that such Bank Lender is entitled to
receive pursuant to this Section shall be delivered to the Borrower and shall be
conclusive absent demonstrable error. The Borrower shall pay such Bank Lender
the amount shown as due on any such certificate within 10 days after receipt
thereof.

          SECTION 2.14. TAXES.

          (a) PAYMENTS FREE OF TAXES. Any and all payments by or on account of
any obligation of the Borrower hereunder or under any other Financing Document
shall be made free and clear of and without deduction for any Indemnified Taxes
or Other Taxes; PROVIDED that if the Borrower shall be required to deduct any
Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable
shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section)
the Administrative Agent, Bank Lender or Issuing Bank (as the case may be)
receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions and (iii) the
Borrower shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

          (b) PAYMENT OF OTHER TAXES BY THE BORROWER. In addition, the Borrower
shall pay any Other Taxes to the relevant Governmental Authority in accordance
with applicable law.

          (c) INDEMNIFICATION BY THE BORROWER. The Borrower shall indemnify the
Administrative Agent, each Bank Lender and the Issuing Bank, within 10 days
after written demand therefor, for the full amount of any Indemnified Taxes or
Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on
or attributable to amounts payable under this Section) paid by the
Administrative Agent, such Bank Lender or such Issuing Bank, as the case may be,
and any penalties, interest and reasonable expenses arising therefrom or with
respect thereto, whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental Authority.
A certificate as to the amount of such payment or liability delivered to the
Borrower by a Bank Lender or the Issuing Bank, or by the Administrative Agent on
its own behalf or on behalf of a Bank Lender or the Issuing Bank, shall be
conclusive absent demonstrable error. Failure or delay on the part of the
Administrative Agent, any Bank Lender or the Issuing Bank to demand
indemnification pursuant to this Section 2.14(c) shall not constitute a waiver
of the Administrative Agent's, such Bank Lender's or the Issuing Bank's right to
demand such indemnification; PROVIDED that the Borrower shall not be required to
indemnify the Administrative Agent, any Bank Lender or the Issuing Bank pursuant
to this Section, 2.14(c) for any Indemnified Taxes or Other Taxes payable more
than six months prior to the date that the Administrative Agent, such Bank
Lender or the Issuing Bank, as the case may be, notifies the Borrower of the
Change in Law giving rise to such Indemnified Tax or Other Tax and of the
Administrative Agent's, such Bank Lender's or such Issuing Bank's intention to
claim therefore; PROVIDED FURTHER that, if the Change in Law giving rise to such
Indemnified Tax of Other Tax is retroactive, then the six-month period referred
to above shall be extended to include the period of retroactive effect thereof.

          (d) EVIDENCE OF PAYMENTS. As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority,
the Borrower shall deliver to the Administrative Agent the original or a
certified copy of a receipt issued by such Governmental Authority evidencing
such payment, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to the Administrative Agent.

          (e) FOREIGN LENDERS. Any Foreign Bank Lender that is entitled to an
exemption from or reduction of withholding tax under the law of the jurisdiction
in which the Borrower is located, or any treaty to which such jurisdiction is a
party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy of the Administrative Agent), at the time or times
prescribed by applicable law or reasonably requested by the Borrower, such
properly completed and executed documentation prescribed by applicable law as
will permit such payments to be made without withholding or at a reduced rate.

          SECTION 2.15. PAYMENTS GENERALLY; PRO RATA TREATMENT; SHARING OF
SET-OFFS.

          (a) PAYMENTS BY THE OBLIGORS. The Borrower shall make each payment
required to be made by it hereunder (whether of principal, interest, fees or
reimbursement of LC Disbursements, or under Section 2.12, 2.13 or 2.14, or
otherwise) or under any other Financing Document (except to the extent otherwise
provided therein) prior to 12:00 noon, 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 offices at One Chase Plaza, 8th
Floor, New York, New York, except payments to be made directly to the Issuing
Bank as expressly provided herein and except that payments pursuant to Sections
2.12, 2.13 and 2.14 hereof and Section 12.3 of the Master Agreement 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 or under any other Financing Document
(except to the extent otherwise provided therein) shall be made in Dollars.

          (b) APPLICATION OF INSUFFICIENT PAYMENTS. If at any time insufficient
funds are received by and available to the Administrative Agent to pay fully all
amounts of principal, unreimbursed LC Disbursements, interest and fees then due
hereunder, such funds shall be applied (i) first, to pay interest and fees then
due hereunder, ratably among the parties entitled thereto in accordance with the
amounts of interest and fees then due to such parties, and (ii) second, to pay
principal and unreimbursed LC Disbursements then due hereunder, ratably among
the parties entitled thereto in accordance with the amounts of principal and
unreimbursed LC Disbursements then due to such parties.

          (c) PRO RATA TREATMENT. Except to the extent otherwise provided
herein: (i) each Borrowing under a particular Facility shall be made from the
relevant Bank Lenders, each payment of commitment fee under Section 2.09 in
respect of Commitments under a particular Facility shall be made for account of
the relevant Bank Lenders, and each termination or reduction of the amount of
the Commitments under a particular Facility under Section 2.06 shall be applied
to the respective Commitments under such Facility of the relevant Bank Lenders,
pro rata according to the amounts of their respective Commitments under such
Facility; (ii) each Borrowing under any Facility shall be allocated pro rata
among the relevant Bank Lenders according to the amounts of their respective
Commitments under such Facility or their respective Loans of such Facility (in
the case of conversions and continuations of Loans); (iii) each payment or
prepayment of principal of the Loans hereunder by the Borrower shall be made for
account of the relevant Bank Lenders pro rata in accordance with the respective
unpaid principal amounts of each of such Loans held by them; and (iv) each
payment of interest on the Loans hereunder by the Borrower shall be made for
account of the relevant Bank Lenders pro rata in accordance with the amounts of
interest on such Loans then due and payable to the respective Bank Lenders.

          (d) SHARING OF PAYMENTS BY BANK LENDERS. If any Bank 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 Bank Lender receiving payment of a greater
proportion of the aggregate amount of its Loans and participations in LC
Disbursements and accrued interest thereon then due than the proportion received
by any other Bank Lender, then the Bank Lender receiving such greater proportion
shall purchase (for cash at face value) participations in the Loans and
participations in LC Disbursements of other Bank Lenders to the extent necessary
so that the benefit of all such payments shall be shared by the Bank 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 Agreement (including payments pursuant
to Section 2.12 and 2.13 hereof) or any payment obtained by a Bank 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 Bank 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 Bank Lender
were a direct creditor of the Borrower in the amount of such participation.

          (e) PRESUMPTIONS OF PAYMENT. 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 Bank Lenders or the
Issuing Bank 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 the Bank Lenders or the Issuing Bank, as the case may be, the
amount due. In such event, if the Borrower has not in fact made such payment,
then each of the Bank Lenders or the Issuing Bank, as the case may be, severally
agrees to repay to the Administrative Agent forthwith on demand the amount so
distributed to such Bank Lender or the Issuing Bank 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 Federal Funds
Effective Rate.

          (f) CERTAIN DEDUCTIONS BY THE ADMINISTRATIVE AGENT. If any Bank Lender
shall fail to make any payment required to be made by it pursuant to Section
2.03(e) or (f), 2.04(b) or 2.15(e), 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 Bank
Lender to satisfy such Bank Lender's obligations under such Sections until all
such unsatisfied obligations are fully paid.

          SECTION 2.16. MITIGATION OBLIGATIONS; REPLACEMENT OF BANK LENDERS.

          (a) DESIGNATION OF A DIFFERENT LENDING OFFICE. If any Bank Lender
requests compensation under Section 2.12, or if the Borrower is required to pay
any additional amount to any Bank Lender or any Governmental Authority for the
account of any Bank Lender pursuant to Section 2.14, then such Bank Lender shall
use reasonable efforts to designate a different lending office for funding or
booking its Loans hereunder or to assign its rights and obligations hereunder to
another of its offices, branches or affiliates, if, in the judgment of such Bank
Lender, such designation or assignment (i) would eliminate or reduce amounts
payable pursuant to Section 2.12 or 2.14, as the case may be, in the future and
(ii) would not subject such Bank Lender to any unreimbursed cost or expense and
would not otherwise be disadvantageous to such Bank Lender. The Borrower hereby
agrees to pay all reasonable costs and expenses incurred by any Bank Lender in
connection with any such designation or assignment.

          (b) REPLACEMENT OF BANK LENDERS. If any Bank Lender requests
compensation under Section 2.12, or if the Borrower is required to pay any
additional amount to any Bank Lender or any Governmental Authority for the
account of any Bank Lender pursuant to Section 2.14, or if any Bank Lender
defaults in its obligation to fund Loans hereunder, then the Borrower may, at
its sole expense and effort, upon notice to such Bank Lender and the
Administrative Agent, require such Bank Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in
Section 3.02), all its interests, rights and obligations under this Agreement to
an assignee that shall assume such obligations (which assignee may be another
Bank Lender, if a Bank Lender accepts such assignment); PROVIDED that (i) the
Borrower shall have received the prior written consent of the Administrative
Agent (and, if an Debt Service Reserve Commitment or a Working Capital
Commitment is being assigned, the Issuing Bank), which consent shall not
unreasonably be withheld or delayed PROVIDED that if the assignee's Index Debt
is rated (or whose bank holding company's Index Debt is rated) A or higher by
S&P or A2 or higher by Moody's, such consent shall not be required, (ii) such
Bank Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and participations in LC Disbursements, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder, from the
assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrower (in the case of all other amounts) and (iii) in the case
of any such assignment resulting from a claim for compensation under Section
2.12 or payments required to be made pursuant to Section 2.14, such assignment
will result in a reduction in such compensation or payments. A Bank Lender shall
not be required to make any such assignment and delegation if, prior thereto, as
a result of a waiver by such Bank Lender or otherwise, the circumstances
entitling the Borrower to require such assignment and delegation cease to apply;
PROVIDED that in the case of a waiver by a Bank Lender, the Borrower has
received adequate notice thereof.

                           ARTICLE III. MISCELLANEOUS

          SECTION 3.01. NOTICES

All notices and other communications provided for in this Agreement shall be
sent, if practicable, by confirmed telecopy (with hard copy sent on the same day
by overnight courier) and, otherwise, by overnight courier service prepaid to a
Person at its address specified in Section 12.1 of the Master Agreement or,
where applicable, as specified under each signature on the signature page
attached hereto and shall be deemed effective when received.

Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto (or, in the case
of any such change by a Bank Lender, by notice to the Borrower and the
Administrative Agent). All notices and other communications given to any party
hereto in accordance with the provisions of this Agreement shall be deemed to
have been given on the date of receipt.

          SECTION 3.02. EXPENSES; INDEMNITY.

          (a) REIMBURSEMENT BY BANK LENDERS. 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 Section 12.3 of the Master Agreement, each Bank Lender
severally agrees to pay to the Administrative Agent, or the Issuing Bank, as the
case may be, such Bank Lender's Applicable Percentage (determined as of the time
that the applicable unreimbursed expense or indemnity payment is sought) of such
unpaid amount; PROVIDED that the unreimbursed expense or indemnified loss,
claim, damage, liability or related expense, as the case may be, was incurred by
or asserted against the Administrative Agent or the Issuing Bank in its capacity
as such.

          (b) WAIVER OF CONSEQUENTIAL DAMAGES, ETC. To the extent permitted by
applicable law, the Borrower shall not assert, and the Borrower hereby waives,
any claim against any Indemnitee, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of, this Agreement
or any agreement or instrument contemplated hereby, any Loan or Letter of Credit
or the use of the proceeds thereof.

          (c) PAYMENTS. All amounts due under this Section shall be payable
promptly after written demand therefor.

          SECTION 3.03. SUCCESSORS AND ASSIGNS.

          (a) ASSIGNMENTS BY BANK LENDERS. Any Bank Lender may assign to one or
more assignees all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitments and the Loans at the
time owing to it); PROVIDED that (i) except in the case of an assignment to a
Bank Lender or an Affiliate of a Bank Lender, each of the Borrower and the
Administrative Agent (and, in the case of an assignment of all or a portion of a
Commitment or any Bank Lender's obligations in respect of its aggregate LC
Exposure, the Issuing Bank) must give their prior consent to any assignment
prior to the Conversion Date, (which consent shall not be unreasonably
withheld), and, any assignment after the Conversion Date must also have the
consent of such parties (which consent shall also not be unreasonably withheld)
other than the Borrower (who shall in any event be consulted prior to such
assignment); (ii) except in the case of an assignment to a Bank Lender or an
Affiliate of a Bank Lender or an assignment of the entire remaining amount of
the assigning Bank Lender's Commitment(s), the amount of the Commitment(s) of
the assigning Bank 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 each of
the Borrower and the Administrative Agent otherwise consent, (iii) each partial
assignment shall be made as an assignment of a proportionate part of all the
assigning Bank Lender's rights and obligations under this Agreement, (iv) the
parties to each assignment shall execute and deliver to the Administrative Agent
an Assignment and Acceptance, together with a processing and recordation fee of
$3,500, and (v) the assignee, if it shall not be a Bank Lender, shall deliver to
the Administrative Agent an Administrative Questionnaire; PROVIDED FURTHER that
any consent of the Borrower otherwise required under this paragraph shall not be
required if an Event of Default under clause 9.1 of Article IX of the Master
Agreement has occurred and is continuing. Upon acceptance and recording 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 Bank Lender under this Agreement, and the
assigning Bank Lender thereunder shall, to the extent of the interest assigned
by such Assignment and Acceptance, be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all of the
assigning Bank Lender's rights and obligations under this Agreement, such Bank
Lender shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.12, 2.13 and 2.14 hereof and Sections 10.3 and 12.3 of
the Master Agreement). Any assignment or transfer by a Bank Lender of rights or
obligations under this Agreement that does not comply with this paragraph shall
be treated for purposes of this Agreement as a sale by such Bank Lender of a
participation in such rights and obligations in accordance with paragraph (c) of
this Section.

          (b) EFFECTIVENESS OF ASSIGNMENTS. Upon its receipt of a duly completed
Assignment and Acceptance executed by an assigning Bank Lender and an assignee,
the assignee's completed Administrative Questionnaire (unless the assignee shall
already be a Bank 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 Agreement
unless it has been recorded in the Register as provided in this paragraph.

          (c) PARTICIPATIONS. Any Bank Lender may, without the consent of the
Borrower, the Administrative Agent or the Issuing Bank, sell participations to
one or more banks or other entities (a "PARTICIPANT") in all or a portion of
such Bank Lender's rights and obligations under this Agreement and the other
Financing Documents (including all or a portion of its Commitments and the Loans
owing to it); PROVIDED that (i) such Bank Lender's obligations under this
Agreement and the other Financing Documents shall remain unchanged, (ii) such
Bank Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) the Borrower, the Administrative
Agent, the Issuing Bank and the other Bank Lenders shall continue to deal solely
and directly with such Bank Lender in connection with such Bank Lender's rights
and obligations under this Agreement and the other Financing Documents. Any
agreement or instrument pursuant to which a Bank Lender sells such a
participation shall provide that such Bank Lender shall retain the sole right to
enforce this Agreement and the other Financing Documents and to approve any
amendment, modification or waiver of any provision of this Agreement or any
other Financing Documents PROVIDED that such agreement or instrument may provide
that such Bank Lender will not, without the consent of the Participant, agree to
any amendment, modification or waiver described in the first proviso to Section
12.2(b) of the Master Agreement. Subject to paragraph (d) of this Section, the
Borrower agrees that each Participant shall be entitled to the benefits of
Sections 2.12 and 2.14 to the same extent as if it were a Bank Lender and had
acquired its interest by assignment pursuant to paragraph (a) of this Section.

          (d) LIMITATIONS ON RIGHTS OF PARTICIPANTS. A Participant shall not be
entitled to receive any greater payment under Section 2.12 or 2.14 than the
applicable Bank Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower's prior written consent. A
Participant that would be a Foreign Bank Lender if it were a Bank Lender shall
not be entitled to the benefits of Section 2.14 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 2.14(e) as though it were a
Bank Lender.

          (e) CERTAIN PLEDGES. Any Bank Lender may at any time pledge or assign
a security interest in all or any portion of its rights under this Agreement to
secure obligations of such Bank Lender, including any such pledge or assignment
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 Bank Lender from any of its obligations
hereunder or substitute any such assignee for such Bank Lender as a party
hereto.

          (f) NO ASSIGNMENTS TO THE OBLIGORS OR AFFILIATES. Anything in this
Section to the contrary notwithstanding, no Bank Lender may assign or
participate any interest in any Loan or LC Exposure held by it hereunder to the
Borrower or any of its Affiliates or Subsidiaries without the prior consent of
each Bank Lender.

          SECTION 3.04. COUNTERPARTS; INTEGRATION; EFFECTIVENESS.

This 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 a single contract. This Agreement
shall become effective 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
hereto, 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 a signature page to this Agreement by telecopy shall be
effective as delivery of a manually executed counterpart of this Agreement.

          SECTION 3.05. SEVERABILITY.

Any provision of this Agreement held to be invalid, illegal or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity,
legality and enforceability of the remaining provisions hereof; and the
invalidity of a particular provision in a particular jurisdiction shall not
invalidate such provision in any other jurisdiction.

          SECTION 3.06. GOVERNING LAW; JURISDICTION; ETC.

          (a) GOVERNING LAW. This Agreement shall be construed in accordance
with and governed by the law of the State of New York.

          (b) SUBMISSION TO JURISDICTION. The Borrower hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of the Supreme Court of the State of New York sitting in New York
County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to this Agreement, or for recognition or enforcement
of any judgment, and each of the parties hereto hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State or, to the extent
permitted by 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 Agreement shall affect any right that the
Administrative Agent, the Issuing Bank or any Bank Lender may otherwise have to
bring any action or proceeding relating to this Agreement against the Borrower
or its properties in the courts of any jurisdiction.

          (c) WAIVER OF VENUE. The Borrower hereby irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do
so, any objection which it may now or hereafter have to the laying of venue of
any suit, action or proceeding arising out of or relating to this Agreement 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 law, the
defense of an inconvenient forum to the maintenance of such action or proceeding
in any such court.

          (d) SERVICE OF PROCESS. Each party to this Agreement irrevocably
consents to service of process in the manner provided for notices in Section
3.01. Nothing in this Agreement will affect the right of any party to this
Agreement to serve process in any other manner permitted by law.

          SECTION 3.07. 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 ANY LEGAL PROCEEDING DIRECTLY
OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). 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 AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

          SECTION 3.08. HEADINGS.

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

          SECTION 3.09. SERVICE OF PROCESS.

EACH PARTY HERETO IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF
THE COURTS REFERRED TO IN SECTION 3.06(B) IN ANY ACTION OR PROCEEDING BY THE
MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID TO
THE ADMINISTRATIVE AGENT AND THE BORROWER AT ITS ADDRESS REFERRED TO IN SECTION
3.01.

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

                                       LIBERTY ELECTRIC PA, LLC

                                       By Columbia Electric Liberty Corporation,
                                          a Member Manager

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

                                       Acknowledged by:

                                       LIBERTY ELECTRIC POWER, LLC

                                       By Liberty Electric PA, LLC, its sole
                                          Member

                                       By Columbia Electric Liberty Corporation,
                                          a Member Manager

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

                                       THE CHASE MANHATTAN BANK,
                                           as Administrative Agent

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

<PAGE>

                                       THE BANK LENDERS

                                       THE CHASE MANHATTAN BANK

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

                                      LANDESBANK HESSEN-THURINGEN GIROZENTRALE

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

                                       BAYERISCHE HYPO-UND VEREINSBANK AG -
                                       NEW YORK BRANCH

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

                                        BAYERISCHE HYPO-UND VEREINSBANK AG -
                                        NEW YORK BRANCH

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

                                       THE BANK OF TOKYO-MITSUBISHI, LTD. NEW
                                       YORK BRANCH

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

                                        CREDIT AGRICOLE INDOSUEZ

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

                                       CREDIT AGRICOLE INDOSUEZ

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

                                       THE DAI-ICHI KANGYO BANK, LTD.

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

                                        UNION BANK OF CALIFORNIA, N.A.

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

                                        NORDDEUTSCHE LANDESBANK GIROZENTRALE
                                        NEW YORK/CAYMAN ISLAND BRANCH

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

                                        KBC BANK N.V. (NEW YORK BRANCH)

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

                                        KBC BANK N.V. (NEW YORK BRANCH)

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

                                        GOVERNOR AND COMPANY OF THE BANK OF
                                        SCOTLAND

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

<PAGE>

                                   SCHEDULE I

                                   COMMITMENTS

<TABLE>
<CAPTION>
                                                                                          EQUITY                     WORKING
     TITLE                    LENDER                          ALLOCATION   TRANCHE A      BRIDGE         DSR         CAPITAL
     -----                    ------                          ----------   ---------      ------         ---         --------
<S>              <C>                                         <C>           <C>            <C>            <C>         <C>
Administrative   THE CHASE MANHATTAN BANK                    $20,000,000   $4,859,050     $12,470,326.41 $2,077,151  $593,472
Agent

Senior Managing  THE BANK OF TOKYO-MITSUBISHI, LTD.          $19,000,000   $11,839,763    $4,623,145     $1,973,294  $563,798
Agent             NEW YORK BRANCH

Co-Agent         UNION BANK OF CALIFORNIA, N.A.              $17,000,000   $10,593,472    $4,136,499     $1,765,579  $504,451

Co-Agent         NORDDEUTSCHE LANDESBANK GIROZENTRALE        $16,250,000   $10,126,113    $3,954,006     $1,687,685  $482,196
                 NEW YORK/CAYMAN ISLAND BRANCH

Co-Agent         BAYERISCHE HYPO-UND VEREINSBANK AG          $16,250,000   $10,126,113    $3,954,006     $1,687,685  $482,196

Co-Agent         LANDESBANK HESSEN-THURINGEN GIROZENTRALE    $16,250,000   $10,126,113    $3,954,006     $1,687,685  $482,196

Co-Agent                                                     $16,250,000   $10,126,113    $3,954,006     $1,687,685  $482,196
                 THE DAI-ICHI KANGYO BANK, LTD.

Co-Agent          CREDIT AGRICOLE INDOSUEZ                   $16,250,000   $14,080,119    $0             $1,687,685  $482,196

Co-Agent         GOVERNOR AND COMPANY OF THE BANK OF         $16,250,000   $10,126,113    $3,954,006     $1,687,685  $482,196
                 SCOTLAND

Participant       KBC BANK N.V. (NEW YORK BRANCH)            $15,000,000   $12,997,033    $0             $1,557,864  $445,104
</TABLE>

<PAGE>

                                   SCHEDULE II

                              Amortization Schedule

<TABLE>
<CAPTION>

                                                                                               PERCENTAGE
 The 12 month period commencing on the       Four quarterly payments of          $2,037,634          7.7624%
 first Principal Payment Date after the
            Conversion Date

<S>              <C>                         <C>                                 <C>                 <C>
                 Year 2                      Four quarterly payments of          $2,161,620          8.2347%

                 Year 3                      Four quarterly payments of          $2,286,539          8.7106%

                 Year 4                      Four quarterly payments of          $2,398,088          9.1356%

                 Year 5                      Four quarterly payments of          $2,519,258          9.5972%

                 Year 6                      Four quarterly payments of          $2,646,924         10.0835%

                 Year 7                      Four quarterly payments of          $2,793,400         10.6415%

                 Year 8                      Four quarterly payments of          $2,963,395         11.2891%

                 Year 9                      Four quarterly payments of          $3,138,848         11.9575%

                Year 10                      Four quarterly payments of          $3,304,294         12.5878%

                 Total                              $105,000,000                                   100.0000%
</TABLE>

<PAGE>

                                  SCHEDULE III

                          Indicative Drawdown Schedule
<TABLE>
<CAPTION>

                               Tranche A              Equity Bridge
                                 Loans                     Loan

<S>                           <C>                      <C>

          July 31, 2000       $      25,900,000

        August 15, 2000                -               $   26,575,439

     September 15, 2000                -               $   14,055,437

       October 15, 2000       $      21,400,000        $  (40,751,470)

      November 15, 2000                -               $   15,424,254

      December 15, 2000                -               $   17,967,477

       January 15, 2001       $      20,100,000        $  (33,452,142)

      February 15, 2001                -               $   18,150,907

         March 15, 2001                -               $   17,784,040

         April 15, 2001       $      21,400,000        $  (35,968,057)

           May 15, 2001                -               $   14,525,493

          June 15, 2001                -               $   11,308,964

          July 15, 2001       $      13,300,000        $  (25,922,246)

        August 15, 2001                -               $    7,215,209

     September 15, 2001                -               $    7,459,038

       October 15, 2001       $       2,900,000        $   (1,167,930)

      November 15, 2001                 -              $    6,023,278

      December 15, 2001                 -              $    5,399,312

       January 15, 2002                 -              $    3,751,575

      February 15, 2002                 -              $    4,037,527

         March 15, 2002                 -              $    8,119,432

                  Total $           105,000,000        $   40,535,267
</TABLE>

<PAGE>

WAIVER NO. 1 TO THE CREDIT AGREEMENT dated as of February 6, 2001 between
LIBERTY ELECTRIC PA, LLC, a special purpose limited liability company
incorporated under the laws of the State of Delaware (the BORROWER), each of the
Bank Lenders signatory to the Credit Agreement referred to below (the BANK
LENDERS) and THE CHASE MANHATTAN BANK, as administrative agent (the
ADMINISTRATIVE AGENT).

The Borrower, the Bank Lenders and the Administrative Agent are party to a
Credit Agreement dated as of July 31, 2000 (as amended, supplemented and
otherwise modified and in effect immediately prior to the effectiveness of the
amendments contemplated hereby, the CREDIT AGREEMENT).

The Borrower, Liberty Electric Power, LLC, the Lenders (as defined in the Master
Agreement referred to herein) and the Administrative Agent are party to a Master
Agreement dated as of July 31, 2000 (as amended, supplemented and otherwise
modified and in effect immediately prior to the effectiveness of the waiver
contemplated hereby, the MASTER AGREEMENT).

The Borrower has requested that the Bank Lenders agree, and the Bank Lenders
party hereto are willing, to waive certain notice provisions contained in
Section 2.02 of the Credit Agreement, all on the terms and conditions of this
Waiver No. 1.

Accordingly, in consideration of the premises and the mutual agreements
contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

DEFINITIONS

1. Terms used but not defined herein shall have the respective meanings ascribed
to such terms in the Credit Agreement and the Master Agreement.

WAIVER

2. With respect to the proposed Borrowing of February 9, 2001 only, the Bank
Lenders hereby waive compliance with the provision set forth in Section 2.02 of
the Credit Agreement requiring, in the case of a LIBOR Borrowing, the provision
of a Notice of Borrowing to the Administrative Agent three Business Days before
the proposed Borrowing PROVIDED that such Notice of Borrowing shall be provided
to the Administrative Agent not less than 2 Business Days before the proposed
Borrowing.

The foregoing waiver shall not be construed as a waiver of (i) any other
provision; or (ii) any provision relating to a Notice of Borrowing made after
the date hereof. Such waiver shall not extend to or affect any obligation not
expressly waived or impair any right consequent thereon.

REPRESENTATIONS AND WARRANTIES

3. The Borrower represents and warrants to the Bank Lenders that:

(a)  This Waiver No. 1 has been duly and validly executed and delivered by such
     Borrower and constitutes the Borrower's legal, valid and binding
     obligation, enforceable against such Borrower in accordance with its terms.

(b)  After giving effect to this Waiver No. 1, (i) no Default or Event of
     Default shall have occurred and be continuing; and (ii) the representations
     and warranties made by the Borrower in Article 6 of the Master Agreement
     are true and correct on and as of the date hereof with the same force and
     effect as if made on and as of such date (or, if any such representation or
     warranty is expressly stated to have been made as of a specific date, as of
     such specific date).

CONDITIONS TO EFFECTIVENESS

4. The waiver provided for in Section 2 hereof shall become effective, as of the
date hereof, upon the execution and delivery of this Waiver No. 1 by the parties
hereto.

DOCUMENTS OTHERWISE UNCHANGED

5. Except as herein provided, the Credit Agreement shall remain unchanged and in
full force and effect.

EXPENSES

6. Without limiting its obligations under Section 12.3(a) of the Master
Agreement or Section 3.02 of the Credit Agreement, the Borrower agrees to pay,
on demand, all reasonable out-of-pocket costs and expenses of the Bank Lenders
(including the fees and disbursements of counsel to the Bank Lenders incurred in
connection with the negotiation, preparation, execution and delivery of this
Waiver No. 1).

BINDING EFFECT

7. This Waiver No. 1 shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns.

GOVERNING LAW

8. This Waiver No. 1 shall be governed by, and construed in accordance with, the
law of the State of New York.

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Waiver No. 1 to be duly
executed as of the day and year first above written.

LIBERTY ELECTRIC PA, LLC
By Mid Atlantic Liberty Corporation, a Member Manager

By:
Name:
Title:

Acknowledged By:

LIBERTY ELECTRIC POWER, LLC
By Liberty Electric PA, LLC, its sole Member
By Mid Atlantic Liberty Corporation, a Member Manager

By:
Name:
Title:

THE CHASE MANHATTAN BANK
(As Administrative Agent)

By:
Name:
Title:

THE CHASE MANHATTAN BANK

By:
Name:
Title:

LANDESBANK HESSEN-THURINGEN GIROZENTRALE

By:
Title:

BAYERISCHE HYPO-UND VEREINSBANK AG - NEW YORK BRANCH

By:
Title:

BAYERISCHE HYPO-UND VEREINSBANK AG - NEW YORK BRANCH

By:
Title:

THE BANK OF TOKYO-MITSUBISHI, LTD.
NEW YORK BRANCH

By:
Title:

CREDIT AGRICOLE INDOSUEZ

By:
Title:

CREDIT AGRICOLE INDOSUEZ

By:
Title:

THE DAI-ICHI KANGYO BANK, LTD.

By:
Title:

UNION BANK OF CALIFORNIA, N.A.

By:
Title:

<PAGE>

NORDDEUTSCHE LANDESBANK GIROZENTRALE
NEW YORK/CAYMAN ISLAND BRANCH

By:
Title:

By:
Title:

KBC BANK N.V. (NEW YORK BRANCH)

By:
Title:

KBC BANK N.V. (NEW YORK BRANCH)

By:
Title:

GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND

By:
Title:EXHIBIT 10.32

                             NOTE PURCHASE AGREEMENT

                            LIBERTY ELECTRIC PA, LLC
                         222 Delaware Avenue, Suite 1452
                              Wilmington, DE 19801

                                                              New York, New York
                                                             as of July 31, 2000

TO THE INSTITUTIONAL LENDERS WHOSE NAMES
APPEAR IN SCHEDULE I AT THE END HEREOF:

Ladies and Gentlemen:

LIBERTY ELECTRIC PA, LLC, a special purpose limited liability company duly
formed and validly existing under the laws of the State of Delaware (the
BORROWER) hereby agrees with each of you (each an INSTITUTIONAL LENDER and
collectively the INSTITUTIONAL Lenders) and each of you hereby agree as follows:

SECTION 1

INTRODUCTORY MATTERS; ISSUANCE OF NOTES

1.1  INTRODUCTORY MATTERS

The Borrower, Liberty Electric Power, LLC, certain lenders and The Chase
Manhattan Bank as Administrative Agent are parties to a Master Agreement of even
date hereof (as amended, modified or supplemented from time to time, the MASTER
AGREEMENT), under which the Borrower has requested that such lenders make the
loans and/or provide letters of credit to it as described more specifically in
the Master Agreement. The Institutional Lenders are prepared to make the Tranche
B Loans on the terms set forth in the Master Agreement, the Note Purchase
Agreement and the Notes executed in connection therewith.

Except as otherwise defined herein (including as set forth in Annex 1 herein),
capitalized terms used herein shall have the respective meanings assigned
thereto in Appendix A of the Master Agreement.

1.2  AUTHORIZATION

The Borrower has duly authorized, in several issues, its senior secured notes
due 2026 in an aggregate principal amount of $165,000,000. The Notes shall be
substantially in the form of Exhibit A hereto. As used herein, the term NOTES
shall include all notes originally issued pursuant to this Agreement and all
notes delivered in substitution or exchange for any of said notes pursuant to
this Agreement and, where applicable, shall include the singular number as well
as the plural. The term NOTE shall mean one of the Notes.

The Notes will be secured by the Collateral, as provided in the Security
Documents. The obligations of the Borrower to the Institutional Lenders
hereunder and under the Notes are guaranteed by the Project Company pursuant to
the Master Agreement.

1.3  ISSUANCE OF NOTES; THE CLOSING

Subject to the terms and conditions of this Agreement and of the Master
Agreement, the Borrower shall issue and sell to each Institutional Lender, Notes
in an aggregate amount equal to the respective Tranche B Commitment set forth
opposite such Institutional Lender's name in Schedule I hereto, and each
Institutional Lender severally agrees to purchase such Notes from the Borrower
by making Tranche B Loans on the Requested Drawdown Dates up to an aggregate
amount for all such Tranche B Loans equal to such Commitment. The closing of the
initial issuance of Notes hereunder shall take place at the offices of
Freshfields LLP, 520 Madison Avenue, 34th Floor, New York, New York 10022, at
10:00 A.M., New York City time, on the Closing Date. On each Requested Drawdown
Date, the Borrower will deliver to each Institutional Lender one or more Notes,
registered in such Institutional Lender's name or in the name of such
Institutional Lender's nominee, in such denominations, and in the amount of the
Tranche B Loans made or to be made by such Institutional Lender on such date,
all as specified in Schedule I hereto or as such Institutional Lender may
otherwise specify by timely notice to the Borrower (or, in the absence of such
notice and if not so specified in Schedule I hereto, one Note registered in such
Institutional Lender's name), duly executed and dated the date of such Requested
Drawdown Date. On the Conversion Date, the Borrower will deliver to each
Institutional Lender a Note (which shall evidence the Applicable Interest Rate
for the remaining term of the Tranche B Loans), in replacement of the Notes
delivered on each Requested Drawdown Date registered in such Institutional
Lender's name or in the name of such Institutional Lender's nominee, in such
denominations, and in the amount of all Tranche B Loans made by such
Institutional Lender prior to such date, duly executed and dated the date of the
Conversion Date.

SECTION 2

COMMITMENTS, AMOUNTS, NOTES; INTEREST; FEES

2.1  LOANS, ALLOCATION OF LOANS

(a)  On each Requested Drawdown Date, each Institutional Lender will, subject to
     the terms and conditions of this Agreement and the Master Agreement, make
     Tranche B Loans to the Borrower in an amount equal to such Institutional
     Lender's Pro Rata Share of the aggregate Tranche B Loans to be made by all
     Institutional Lenders pursuant to this Section 2.1(a) and Section 3.1(b) of
     the Master Agreement on such Requested Drawdown Date as specified in
     Schedule II hereto; PROVIDED that the aggregate principal amount of all
     such Loans made by such Institutional Lender shall not exceed such
     Institutional Lender's Tranche B Loan Commitment; PROVIDED further that the
     Borrower has delivered a Notice of Borrowing with respect to such Tranche B
     Loans, appropriately completed, to the Administrative Agent (with a copy to
     the Collateral Agent) not less than six (6) Business Days prior to the
     Requested Drawdown Date (or in the case of the initial Tranche B Loans, not
     less than one (1) Business Day prior to the Requested Drawdown Date).

(b)  Other than with respect to the initial Tranche B Loans, if the conditions
     precedent set forth in Section 5.2 of the Master Agreement have not been
     satisfied or waived in accordance with the Master Agreement by the
     applicable Requested Drawdown Date with respect to a Tranche B Loan, each
     Institutional Lender agrees to deposit its applicable Pro Rata Share of
     such Tranche B Loan into the Tranche B Escrow Account on the Requested
     Drawdown Date. Upon satisfaction or waiver of all conditions precedent in
     accordance with the Master Agreement with respect to such Tranche B Loans,
     the Collateral Agent shall withdraw such Tranche B Loans from the Tranche B
     Escrow Account and deposit such amounts into the Construction Account in
     accordance with the Disbursement Agreement and the Master Agreement.

(c)  The Institutional Lenders shall not be obligated to make Tranche B Loans to
     the Borrower after the Construction Stage Commitment Termination Date and
     the Tranche B Loan Commitments shall be cancelled on the Construction Stage
     Commitment Termination Date.

(d)  The Tranche B Loans to be made on the Requested Drawdown Dates shall be
     allocated among all of the Tranche B Loan Commitments on the applicable
     date in proportion to the respective undrawn amounts thereof.

2.2  NOTES

The Tranche B Loans made by each Institutional Lender shall be evidenced by the
Note or Notes delivered to such Institutional Lender pursuant to Section 1.3
hereof or in connection with a transfer pursuant to Section 3 hereof.

2.3  INTEREST

(a)  The Borrower promises to pay interest on the Tranche B Loans (including
     Tranche B Loans the proceeds of which remain in the Tranche B Escrow
     Account) on each Interest Payment Date at a rate per annum (computed on the
     basis of the actual number of days elapsed in a 360-day year) on the unpaid
     principal balance thereof at the Applicable Interest Rate from the
     Requested Drawdown Date on which such Tranche B Loans are made to but
     excluding the date such Tranche B Loans are paid in full.

(b)  Notwithstanding the foregoing, any payment of principal, interest, fees or
     other amounts with respect to any Note that is made after the date on which
     such payment is due shall include interest from and including such due date
     to but excluding the date such payment is paid in full at the applicable
     Default Rate.

2.4  FEES

The Borrower shall pay to each Institutional Lender a commitment fee on the
daily average unused amount of such Institutional Lender's total Commitments for
the period from and after the date hereof to but including the date on which
such Commitments are terminated, at a rate per annum equal to 0.375% (computed
on the basis of the actual number of days elapsed in a 360-day year). Accrued
commitment fees shall be payable on each Interest Payment Date and on the
earlier of the date such Commitment is terminated in accordance with Sections
9.1 or 3.2 of the Master Agreement, as the case may be, and the Construction
Stage Commitment Termination Date.

2.5  CANCELLATION FEES

Upon any cancellation or reduction of Tranche B Loan Commitments pursuant to
Section 2.1(c) hereof, or pursuant to Section 3.2 or 9.1 of the Master
Agreement, the Borrower shall be deemed to have prepaid Notes in an aggregate
principal amount equal to the amount of the Tranche B Loan Commitments so
reduced or cancelled at such time, and accordingly the Borrower shall pay to
each Institutional Lender a commitment termination fee (a COMMITMENT TERMINATION
FEE) with respect to the portion of reduced or cancelled Commitments held by
such Institutional Lender equal to the Make-Whole Amount with respect to such
portion of reduced or cancelled Commitments determined as if Tranche B Loans had
been made to the Borrower as of the date of such cancellation or reduction in
the amount of such cancelled or reduced Tranche B Loan Commitments and the
amount of such cancelled or reduced Tranche B Loan Commitments were the CALLED
PRINCIPAL (as used in the definition of MAKE-WHOLE AMOUNT) and the date of such
cancellation or reduction were the SETTLEMENT DATE (as used in the definition of
MAKE-WHOLE AMOUNT).

SECTION 3

TRANSFER AND EXCHANGE OF NOTES

3.1  TRANSFER AND EXCHANGE OF NOTES

Upon surrender of any Note at the principal executive office of the Borrower for
registration of transfer or exchange, the Borrower shall execute and deliver, at
the Borrower's expense, one or more new Notes in exchange therefor, in an
aggregate principal amount equal to the unpaid principal amount of the
surrendered Note and shall provide prompt written notice of such action to the
Administrative Agent. Each such new Note shall be payable to such Person as such
holder may request and shall be substantially in the form of Exhibit A hereto.
Each such new Note shall be dated and bear interest from the date to which
interest shall have been paid on the surrendered Note or dated the date of the
surrendered Note if no interest shall have been paid thereon. Notes shall not be
transferred in denominations of less than $5,000,000, or to the extent that the
amount (computed on the basis of the actual number of days elapsed in a 360-day
year) remaining outstanding on such Note is less than $5,000,000, such lesser
amount. Other than with respect to a transfer to an Institutional Lender or to
an Affiliate of an Institutional Lender, no transfer of any Note may be made
prior to the Conversion Date to a transferee with a net worth of less than
$100,000,000, without the prior written consent of the Borrower (such consent
not to be unreasonably withheld or delayed). Each Institutional Lender further
agrees, and shall be deemed to have agreed by its acceptance of a Note, that (i)
it will not transfer a Note to any transferee unless such transferee (A) has
delivered to the Administrative Agent an Administrative Questionnaire, and (B)
executes and delivers an Assignment and Acceptance certificate as required under
Section 12.4(b) of the Master Agreement substantially in the form of Exhibit A
to the Master Agreement (and the Borrower shall not issue new Notes unless and
until it receives such written certification thereof) and (ii) each transfer by
an Institutional Lender of its Notes shall be made such that the same percentage
of the aggregate Tranche B Loan Commitments of such Institutional Lender shall
also be transferred to the Person to whom such Note is transferred (and VICE
VERSA). In addition, each Institutional Lender agrees that any Note surrendered
for registration of transfer in accordance with this Section 3.1 must be duly
endorsed or accompanied by a written instrument of transfer duly executed by the
registered holder of such Note or his attorney duly authorized in writing and
accompanied by the address for notices of each transferee of such Note or part
thereof and each Institutional Lender further agrees that it will consult with
the Borrower prior to making any transfer of its Notes. The Administrative Agent
shall have no duty to monitor or ensure compliance with any restriction on
transfer of a Note and shall have no personal liability for registering a Note
strictly in accordance with a notice received from the Borrower under this
Section 3.1.

3.2  REPLACEMENT OF NOTES

Upon receipt by the Borrower of evidence reasonably satisfactory to it of the
ownership of and the loss, theft, destruction or mutilation of any Note (which
evidence shall be, in the case of any Institutional Lender or an institutional
investor, notice from such institutional investor of such ownership and such
loss, theft, destruction or mutilation), and

(i)  in the case of loss, theft or destruction, of indemnity reasonably
     satisfactory to it (PROVIDED that if the holder of such Note is, or is a
     nominee for, such Institutional Lender or another institutional investor,
     such Person's own unsecured agreement of indemnity shall be deemed to be
     satisfactory), or

(ii) in the case of mutilation, upon surrender and cancellation thereof,

the Borrower at its own expense shall execute and deliver, in lieu thereof, a
new Note, dated and bearing interest from the date to which interest shall have
been paid on such lost, stolen, destroyed or mutilated Note or dated the date of
such lost, stolen, destroyed or mutilated Note if no interest shall have been
paid thereon.

SECTION 4

PAYMENTS; PREPAYMENTS; COMMITMENT REDUCTIONS

4.1 PREPAYMENTS; COMMITMENT REDUCTIONS

(a)  In accordance with Section 3.2 of the Master Agreement, the Borrower may at
     any time terminate, or from time to time reduce, the Tranche B Loan
     Commitments and, to the extent required by Section 3.3 of the Master
     Agreement, shall terminate or reduce such Tranche B Loan Commitments in the
     manner set forth in the Master Agreement. Any cancellation or reduction of
     Tranche B Loan Commitments in accordance with Sections 3.2 or 3.3 of the
     Master Agreement of less than all of such Tranche B Loan Commitments shall
     be allocated pro rata to the holders thereof and shall reduce pro rata the
     remaining funding obligations set forth in Schedule II hereto.

(b)  In accordance with Section 4.3 of the Master Agreement, the Borrower may,
     at any time, voluntarily prepay the Tranche B Loans and, to the extent
     required by Section 4.2 of the Master Agreement, shall prepay such Tranche
     B Loans in the manner set forth in the Master Agreement. Any prepayment
     under Section 4.2 of the Master Agreement of the Tranche B Loans shall be
     allocated ratably among the holders thereof and applied ratably across the
     maturities therein. Any prepayment under Sections 4.3 of the Master
     Agreement of less than all of the Tranche B Loans outstanding shall be
     applied (i) at the option of the Borrower, ratably among the holders
     thereof and ratably across the maturities therein if such prepayment, when
     taken with all other prepayments of Tranche B Loans (including prepayments
     under Section 4.1(c) below) shall be less than or equal to $80,000,000 at
     such time, and otherwise (ii) in inverse order of maturity.

(c)  On each Repayment Date to and including the Repayment Date immediately
     prior to the Tranche B Final Maturity Date, the Borrower will prepay the
     principal amount (or such lesser principal amount as shall then be
     outstanding) of the Notes set forth in Schedule III hereto respectively for
     such date at the principal amount thereof plus accrued interest and without
     payment of the Make-Whole Amount or any other premium, PROVIDED that upon
     any partial prepayment or purchase of such Notes pursuant to Section 4.2 or
     4.3 of the Master Agreement, the principal amount of each scheduled
     prepayment of the Notes becoming due under this Section 4.1(c) on and after
     the date of such partial prepayment shall be reduced in the manner set
     forth in Section 4.1(b) above.

4.2  MATURITY; SURRENDER, ETC.

(a)  The Borrower promises to pay the entire outstanding principal amount of the
     Notes on the Tranche B Final Maturity Date together with accrued interest
     thereon (computed on the basis of the actual number of days elapsed in a
     360-day year).

(b)  In the case of each prepayment of Notes pursuant to Section 4 hereof and/or
     pursuant to Section 4 of the Master Agreement, the principal amount of each
     Note to be prepaid shall mature and become due and payable on the date
     fixed for such prepayment, together with interest on such principal amount
     accrued to such date and, if applicable, the Make-Whole Amount, if any.
     From and after such date, unless the Borrower shall fail to pay such
     principal amount when so due and payable, together with the interest and
     Make-Whole Amount, if any, as aforesaid, interest on such principal amount
     shall cease to accrue. Any Note paid or prepaid in full shall be
     surrendered to the Borrower and cancelled and shall not be reissued, and no
     Note shall be issued in lieu of any paid or prepaid principal amount of any
     Note.

4.3  NOTICES

In connection with any prepayment under Section 4.2 or 4.3 of the Master
Agreement or the reduction or cancellation of Commitments under Section 3.2 or
3.3 thereof, the Borrower shall give written notice thereof to the
Administrative Agent, which notice shall be given not less than six (6) Business
Days prior to the date fixed for such prepayment. Such notice shall specify the
amount so to be prepaid (or the Commitments to be reduced) and the date fixed
for such prepayment (or reduction). Upon the giving of such notice, (i) in the
case of a prepayment, the principal amount of the Notes so to be prepaid as
specified in such notice, together with interest accrued thereon to the date
fixed for prepayment, plus, in the case of prepayments pursuant to Section 4.3
of the Master Agreement, any Make-Whole Amount, shall become due and payable on
the specified prepayment date and (ii) in the case of a Commitment reduction,
the amount of the Commitments designated in such notice shall be reduced, and
the fees payable, if applicable, under Section 2.5 hereof in connection with
such reduction or cancellation, shall be due and payable on the date of
cancellation or reduction specified in such notice. The Borrower shall determine
any such Make-Whole Amount or Commitment Termination Fees on the third Business
Day prior to the date fixed for any such prepayment (or reduction or
cancellation). Two Business Days prior to such prepayment (or reduction or
cancellation) date, the Borrower will furnish to the Administrative Agent a
certificate signed by a Financial Officer of the Borrower setting forth
computations in reasonable detail showing the manner of calculation of such
Make-Whole Amount or Commitment Termination Fees.

4.4 PURCHASE OF NOTES

The Borrower will not and will not permit any Affiliate to purchase, redeem,
prepay or otherwise acquire, directly or indirectly, any of the outstanding
Notes except upon the payment or prepayment of the Notes in accordance with the
terms of this Agreement and the Notes. The Borrower will promptly cancel all
Notes acquired by it or any Affiliate pursuant to any payment, prepayment or
purchase of Notes pursuant to any provision of this Agreement and no Notes may
be issued in substitution or exchange for any such Notes.

SECTION 5

REPRESENTATIONS OF THE INSTITUTIONAL LENDERS

5.1 PURCHASE FOR INVESTMENT

Each Institutional Lender represents that such Institutional Lender is
purchasing its Notes hereunder for its own account or for one or more separate
accounts maintained by such Institutional Lender and not with a view to the
distribution thereof, PROVIDED that the disposition of its or their property at
all times shall be within its or their control.

5.2 SOURCE OF FUNDS

Each Institutional Lender represents that at least one of the following
statements is an accurate representation as to each source of funds (a SOURCE)
to be used by such Institutional Lender to pay the purchase price of the Notes
to be purchased by such Institutional Lender hereunder:

(a)  the Source is an "insurance company general account" (as the term is
     defined in Prohibited Transaction Exemption (PTE) 95-60 (issued July 12,
     1995)) in respect of which the reserves and liabilities (as defined by the
     annual statement for life insurance companies approved by the National
     Association of Insurance Commissioners (the NAIC ANNUAL STATEMENT)) for the
     general account contract(s) held by or on behalf of any employee benefit
     plan together with the amount of the reserves and liabilities for the
     general account contract(s) held by or on behalf of any other employee
     benefit plans maintained by the same employer (or affiliate thereof as
     defined in PTE 95-60) or by the same employee organization in the general
     account do not exceed 10% of the total reserves and liabilities of the
     general account (exclusive of separate account liabilities) plus surplus as
     set forth in the NAIC Annual Statement filed with such Institutional
     Lender's state of domicile; or

(b)  the Source is a separate account that is maintained solely in connection
     with such Institutional Lender's fixed contractual obligations under which
     the amounts payable, or credited, to any employee benefit plan (or its
     related trust) that has any interest in such separate account (or to any
     participant or beneficiary of such plan (including any annuitant)) are not
     affected in any manner by the investment performance of the separate
     account; or

(c)  the Source is either (i) an insurance company pooled separate account,
     within the meaning of PTE 90-1 (issued January 29, 1990), or (ii) a bank
     collective investment fund, within the meaning of the PTE 91-38 (issued
     July 12, 1991) and, except as disclosed by such Institutional Lender to the
     Borrower in writing pursuant to this paragraph (c), no employee benefit
     plan or group of plans maintained by the same employer or employee
     organization beneficially owns more than 10% of all assets allocated to
     such pooled separate account or collective investment fund; or

(d)  the Source constitutes assets of an "investment fund" (within the meaning
     of Part V of the QPAM Exemption) managed by a "qualified professional asset
     manager" or "QPAM" (within the meaning of Part V of the QPAM Exemption), no
     employee benefit plan's assets that are included in such investment fund,
     when combined with the assets of all other employee benefit plans
     established or maintained by the same employer or by an affiliate (within
     the meaning of Section V(c)(1) of the QPAM Exemption) of such employer or
     by the same employee organization and managed by such QPAM, exceed 20% of
     the total client assets managed by such QPAM, the conditions of Part I(c)
     and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a person
     controlling or controlled by the QPAM (applying the definition of "control"
     in Section V(e) of the QPAM Exemption) owns a 5% or more interest in the
     Borrower and (i) the identity of such QPAM and (ii) the names of all
     employee benefit plans whose assets are included in such investment fund
     have been disclosed to the Borrower in writing pursuant to this paragraph
     (d); or

(e)  the Source is a governmental plan; or

(f)  the Source is one or more employee benefit plans, or a separate account or
     trust fund comprised of one or more employee benefit plans, each of which
     has been identified to the Borrower in writing pursuant to this paragraph
     (f); or

(g)  the Source does not include assets of any employee benefit plan, other than
     a plan exempt from the coverage of ERISA.

As used in this Section 5.2, the terms EMPLOYEE BENEFIT PLAN, GOVERNMENTAL PLAN,
PARTY IN INTEREST and SEPARATE ACCOUNT shall have the respective meanings
assigned to such terms in Section 3 of ERISA.

5.3  ACCREDITED INVESTOR

Each Institutional Lender represents that such Institutional Lender is an
"accredited investor" as the term is defined in Rule 501(a) promulgated under
the Securities Act of 1933 as amended.

SECTION 6

HOME OFFICE PAYMENT

Notwithstanding anything to the contrary in this Agreement, the Master Agreement
or the Notes, the Borrower will pay, and will instruct the Administrative Agent
to pay, all amounts, in accordance with the terms and conditions thereof and
hereof, which become due and payable under any Financing Document to any
Institutional Lender, at the address for such Institutional Lender, and in the
manner, set forth in Schedule I hereof by 11:00 A.M., New York City time, on the
date any such amounts become due; or at such other address and in such other
manner as such Institutional Lender may designate by notice to the Borrower and
the Administrative Agent, without, in the case of payment to any Institutional
Lender, presentation or surrender of any Note held by such Institutional Lender.
Prior to the sale, transfer or other disposition of any Note, each Institutional
Lender will make notation thereon of the portion of the principal amount prepaid
and the date to which interest has been paid thereon, or surrender the same in
exchange for a Note or Notes aggregating the same principal amount as the unpaid
principal amount of the Note so surrendered.

SECTION 7

LIABILITIES OF THE INSTITUTIONAL LENDER

Neither this Agreement nor any disposition of any of the Notes shall be deemed
to create any liability or obligation of any Institutional Lender to enforce any
provision hereof or of any of the Notes or of any other Financing Document for
the benefit or on behalf of any other Person who may be an Institutional Lender.

SECTION 8

TAXES

The Borrower will pay all stamp, documentary or similar taxes which may be
payable in respect of the execution, delivery or enforcement of this Agreement
(other than the Notes) or of the execution, delivery or enforcement (but not the
transfer) of any of the Notes or of any amendment of, or waiver or consent under
or with respect to, this Agreement and will save the Institutional Lender
harmless against any loss or liability resulting from nonpayment or delay in
payment of any such tax. The obligations of the Borrower under this Section
shall survive the payment or prepayment of the Notes.

SECTION 9

MISCELLANEOUS

9.1  RELIANCE ON AND SURVIVAL OF REPRESENTATIONS

All agreements, representations and warranties of the Borrower, herein and in
the Master Agreement and in any certificates or other instruments delivered
pursuant to any Financing Document shall (i) be deemed to be material and to
have been relied upon by the Institutional Lender, notwithstanding any
investigation heretofore or hereafter made by the Institutional Lender or on
behalf of the Institutional Lender, and (ii) survive the execution and delivery
of each Financing Document and the delivery of the Notes to the Institutional
Lender, and shall continue in effect so long as any Note is outstanding and
thereafter as provided in Section 8 of this Agreement and Section 12.4(c) of the
Master Agreement.

9.2  SUCCESSORS AND ASSIGNS

This Agreement shall bind and inure to the benefit of and be enforceable by the
Borrower and it's permitted successors and assigns hereunder, the Institutional
Lenders and their respective successors and assigns, and, in addition, shall
inure to the benefit of and be enforceable by the Institutional Lenders from
time to time.

9.3  COMMUNICATIONS

All notices and other communications provided for in this Agreement shall be
sent, if practicable, by (i) confirmed telecopy (if, in the case of notice by
telecopier, the sender on the same day sends a confirming copy of such notice by
a recognized overnight delivery service) or otherwise by overnight courier
service prepaid to a Person at its address specified in Section 12.1 of the
Master Agreement or as otherwise specified in Schedule I hereto or (ii) by
electronic means to the addresses set forth in any written notice delivered in
accordance with this Section 9.3, and in each case shall be deemed effective
when received. A communication shall be addressed as such, until such time as a
Person shall have notified the other parties and holders of Notes of a change of
address.

9.4  GOVERNING LAW

This Agreement and the Notes shall be governed by and construed in accordance
with the law of the State of New York.

9.5  SUBMISSION TO JURISDICTION

Each party hereto hereby irrevocably and unconditionally submits, for itself and
its property, to the nonexclusive jurisdiction of the Supreme Court of the State
of New York sitting in New York County and of the United States District Court
of the Southern District of New York, and any appellate court from any thereof,
in any action or proceeding arising out of or relating to this Agreement or the
other Financing Documents, or for recognition or enforcement of any judgment,
and each of the parties hereto hereby irrevocably and unconditionally agrees
that 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 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 Agreement shall affect any right that the Collateral Agent,
Administrative Agent or any Institutional Lender may otherwise have to bring any
action or proceeding relating to this Agreement or any Financing Document
against the Borrower or its properties in the courts of any jurisdiction.

9.6  WAIVER OF VENUE

The Borrower hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection which it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement in any court referred to in Section 9.5
hereof. Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court.

9.7  SERVICE OF PROCESS

Each party to this Agreement irrevocably consents to service of process in the
manner provided for notices in Section 12.1 of the Master Agreement and in the
manner provided in this Section 9.7. Nothing in this Agreement will affect the
right of any party to this Agreement to serve process in any other manner
permitted by law.

The Borrower and each Institutional Lender irrevocably consents to the service
of process out of any of the aforementioned courts referred to in Section 9.5
hereof in any action or proceeding by the mailing of copies thereof by
registered or certified mail, postage prepaid to each Institutional Lender and
the Borrower at the applicable address referred to or referenced in Section 12.1
of the Master Agreement.

9.8  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 any legal proceeding directly
or indirectly arising out of or relating to this Agreement or the transactions
contemplated hereby (whether based on contract, tort or any other theory). 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 Agreement by, among other things, the mutual waivers and
certifications in this Section.

9.9  HEADINGS

The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect any of the terms hereof.

9.10 COUNTERPARTS

This Agreement may be executed in two or more counterparts, each of which shall
be deemed to be an original but all of which together shall constitute one and
the same instrument.

9.11 SEVERABILITY

In case any one or more of the provisions contained in this Agreement or in any
instrument contemplated hereby, or any application thereof, shall be invalid,
illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein and therein, and any
other application thereof, shall not in any way be affected or impaired thereby.

<PAGE>
If you are in agreement with the foregoing, please sign the form of acceptance
in the space provided below whereupon this Agreement shall become a binding
agreement between the Institutional Lender and the Borrower.

Very truly yours,

LIBERTY ELECTRIC PA, LLC
By Columbia Electric Liberty Corporation, a Member Manager

By: _________________________________________
Name:

Acknowledged by:

LIBERTY ELECTRIC POWER, LLC
By Liberty Electric PA, LLC, its sole Member
By Columbia Electric Liberty Corporation, a Member Manager

By Liberty Electric PA, LLC

By Columbia Electric Liberty Corporation,
   Member Manager

By: _________________________________________
Name:

<PAGE>
Accepted and Agreed by:

THE INSTITUTIONAL LENDERS

NEW YORK LIFE INSURANCE COMPANY

By:_________________________
Name:
Title:

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

By:_________________________
Name:
Title:

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY (BPF)
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY (RDI)
By:  Lincoln Investment Management Inc.
Its Attorney-in-Fact

By:_________________________
Name:
Title:

AMERICAN GENERAL ANNUITY INSURANCE COMPANY
AMERICAN GENERAL LIFE AND ACCIDENT INSURANCE COMPANY
THE VARIABLE ANNUITY LIFE INSURANCE COMPANY

By:_________________________
Name:
Title:

TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY

By:_________________________
Name:
Title:

MONUMENTAL LIFE INSURANCE COMPANY

By:_________________________
Name:
Title:

<PAGE>

                                     ANNEX I

                  DEFINITIONS; INTERPRETATION OF THIS AGREEMENT

CERTAIN DEFINITIONS

1.1  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, (a) any definition of or reference to any
     agreement, instrument or other document herein, including this Agreement,
     shall be construed as referring to such agreement, instrument or other
     document as from time to time amended, supplemented or otherwise modified
     (subject to any restrictions on such amendments, supplements or
     modifications set forth herein), (b) any reference herein to any Person
     shall be construed to include such Person's successors and assigns, (c) the
     words "herein," "hereof" and "hereunder," and words of similar import,
     shall be construed to refer to this Agreement in its entirety and not to
     any particular provision of this Agreement, (d) 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 Agreement and
     (e) the word "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. In addition, as used herein and with reference to Section 1.1
     hereof, the following terms shall have the following respective meanings:

     APPLICABLE INTEREST RATE: Each Tranche B Loan will bear interest at a rate
     equal to the yield to maturity (as reported as of 10:00 AM (New York City
     time) (or, in the case of the initial Loan, 10:30 AM (New York City time))
     on the third Business Day preceding the applicable Requested Drawdown Date
     on the display designated on "Page PX1" on the Bloomberg Financial Markets
     Service provided by Bloomberg L.P. (or such other display as may replace
     Page PX1 on the Bloomberg Financial Markets)) on U.S. Treasury securities
     bearing interest at 6 1/8% and due August 2029 plus the Applicable Margin.
     The Applicable Interest Rate on the Tranche B Loans will be reset on the
     final Requested Drawdown Date as a weighted average blended rate of the
     Applicable Interest Rates on all Tranche B Loans.

     APPLICABLE MARGIN: The Applicable Margin for each Tranche B Loan shall be
     3.25%.

     COMMITMENT TERMINATION FEE has the meaning given to such term in Section
     2.5 hereof.

     DEFAULT RATE: As of any date, for any Tranche B Loan, the Applicable
     Interest Rate with respect to such Tranche B Loan as of such date plus 2%
     per annum.

     INTEREST PAYMENT DATE: means each April 15, July 15, October 15 and January
     15 of each year, commencing with the first such date after the Closing Date
     and in each case, if such date is not a Business Day, then on the Business
     Day immediately following.

     MAKE-WHOLE AMOUNT: With respect to any Note, an amount equal to the excess,
     if any, of the Discounted Value of the Remaining Scheduled Payments with
     respect to the Called Principal of such Note over the amount of such Called
     Principal, PROVIDED that the Make-Whole Amount may in no event be less than
     zero. For the purposes of determining the Make-Whole Amount, the following
     terms have the following meanings:

          CALLED PRINCIPAL means, with respect to any Note, the principal of
          such Note that is to be prepaid pursuant to Section 4.3 of the Master
          Agreement or has become or is declared to be immediately due and
          payable pursuant to Article IX of the Master Agreement, or is
          otherwise deemed to be prepaid pursuant to Section 2.5 hereof, as the
          context requires.

          DISCOUNTED VALUE means, with respect to the Called Principal of any
          Note, the amount obtained by discounting all Remaining Scheduled
          Payments with respect to such Called Principal from their respective
          scheduled due dates to the Settlement Date with respect to such Called
          Principal, in accordance with accepted financial practice and at a
          discount factor equal to the Reinvestment Yield with respect to such
          Called Principal.

          REINVESTMENT YIELD means, with respect to the Called Principal of any
          Note, 1.0% over the yield to maturity for any prepayment or
          cancellation made during the period from the date hereof until
          expiration of the intial Tolling Period (and during any Tolling Period
          thereafter) and 0.50% over the yield to maturity for any prepayment or
          cancellation made when a Tolling Period is not in existence implied by
          (i) the yields reported, as of 10:00 A.M. (New York City time) on the
          second Business Day preceding the Settlement Date with respect to such
          Called Principal, on the display designated as "Page PX1" on the
          Bloomberg Financial Markets service provided by Bloomberg L.P. (or
          such other display as may replace Page PX1 on the Bloomberg Financial
          Markets) for actively traded U.S. Treasury securities having a
          maturity equal to the Remaining Average Life of such Called Principal
          as of such Settlement Date, or (ii) if such yields are not reported as
          of such time or the yields reported as of such time are not
          ascertainable, the Treasury Constant Maturity Series Yields reported,
          for the latest day for which such yields have been so reported as of
          the second Business Day preceding the Settlement Date with respect to
          such Called Principal, in Federal Reserve Statistical Release
          H.15(519) (or any comparable successor publication) for actively
          traded U.S. Treasury securities having a constant maturity equal to
          the Remaining Average Life of such Called Principal as of such
          Settlement Date. Such implied yield will be determined, if necessary,
          by (a) converting U.S. Treasury bill quotations to bond-equivalent
          yields in accordance with accepted financial practice and (b)
          interpolating linearly between (1) the actively traded U.S. Treasury
          security with a maturity closest to and greater than the Remaining
          Average Life and (2) the actively traded U.S. Treasury security with a
          maturity closest to and less than the Remaining Average Life.

          REMAINING AVERAGE LIFE means, with respect to any Called Principal,
          the number of years (calculated to the nearest one-twelfth year)
          obtained by dividing (i) such Called Principal into (ii) the sum of
          the products obtained by multiplying (a) the principal component of
          each Remaining Scheduled Payment with respect to such Called Principal
          by (b) the number of years (calculated to the nearest one-twelfth
          year) that will elapse between the Settlement Date with respect to
          such Called Principal and the scheduled due date of such Remaining
          Scheduled Payment.

          REMAINING SCHEDULED PAYMENTS means, with respect to the Called
          Principal of any Note, all payments of such Called Principal and
          interest thereon that would be due after the Settlement Date with
          respect to such Called Principal if no payment of such Called
          Principal were made prior to its scheduled due date, PROVIDED that if
          such Settlement Date is not a date on which interest payments are due
          to be made under the terms of the Notes, then the amount of the next
          succeeding scheduled interest payment will be reduced by the amount of
          interest accrued to such Settlement Date and required to be paid on
          such Settlement Date pursuant to Section 4.3 or Article IX of the
          Master Agreement or Section 2.5 hereof.

          SETTLEMENT DATE means, with respect to the Called Principal of any
          Note, the date on which such Called Principal is to be prepaid
          pursuant to Section 4.3 of the Master Agreement or has become or is
          declared to be immediately due and payable pursuant to Article IX of
          the Master Agreement or is otherwise deemed to be prepaid pursuant to
          Section 2.5 hereof, as the context requires.

     NOTES: As defined in Section 1.2 of the Note Purchase Agreement.

     REFERENCE BANKS: Four major banks in the London interbank market selected
     by the Administrative Agent.

     REPAYMENT DATE means the dates set forth in Schedule III to the Note
     Purchase Agreement.

     SOURCE has the meaning given to such term in Section 5.2 of the Note
     Purchase Agreement.

     TRANCHE B ESCROW ACCOUNT has the meaning assigned to such term in the
     Disbursement Agreement.

     TRANCHE B FINAL MATURITY DATE means April 15, 2026.

     TRANCHE B LOAN COMMITMENT: For each Institutional Lender, the obligation of
     such Institutional Lender to make Tranche B Loans to the Borrower in the
     amount set forth opposite the name of such Institutional Lender in the
     Register (which, in the case of any Institutional Lender initially party
     hereto, shall be the amount set forth opposite its name under the heading
     "Commitment" in Schedule I to the Note Purchase Agreement), as such amount
     may be adjusted from time to time in connection with Sections 3.2 or 3.3 of
     the Master Agreement or pursuant to any transfer made in accordance with
     Section 12.4 of the Master Agreement and Section 3.1 of the Note Purchase
     Agreement. On the date of the Note Purchase Agreement, the aggregate
     principal amount of the Tranche B Loan Commitments shall equal
     $165,000,000.

<PAGE>
                                                                 SCHEDULE I
                  NAMES AND ADDRESSES OF INSTITUTIONAL LENDERS
                                       AND
                                   COMMITMENTS

------------------------------------------------------ -------------------------
                               INSTITUTIONAL LENDER                COMMITMENT
------------------------------------------------------ -------------------------

<PAGE>

NEW YORK LIFE INSURANCE COMPANY                                    $19,500,000

(1)  All payments by wire or intrabank transfer of immediately
     available funds to:

Chase Manhattan Bank
New York, New York  10019
ABA No. 021-000-021
Credit:  New York Life Insurance Company
General Account No. 008-9-00687

with sufficient information (including issuer, PPN number,
interest rate, maturity and whether payment is of principal,
premium, or interest) to identify the source and application
of such funds.

with advice of such payments to:

New York Life Insurance Company
51 Madison Avenue
New York, New York  10010-1603

Attention:     Treasury Department
               Securities Income Section
               Room 209
               Fax #:  (212) 447-4160

(2)      All other communications:

New York Life Insurance Company
51 Madison Avenue
New York, New York  10010

Attention:     Investment Department
               Private Finance Group
               Room 206
               Fax #:  (212) 447-4122

with a copy of any notices regarding defaults or Events of
Default under the operative documents to:

Attention:     Office of General Counsel
               Investment Section, Room 1107
               Fax #:  (212) 576-8340
------------------------------------------------------ -------------------------
NEW YORK LIFE INSURANCE & ANNUITY CORPORATION                      $10,500,000

(1)  All payments by wire or intrabank transfer of
     immediately available funds to:

Chase Manhattan Bank
New York, New York
ABA No. 021-000-021
Credit:  New York Life Insurance and Annuity Corporation
General Account No. 323-8-47382

with sufficient information (including issuer, PPN
number, interest rate, maturity and whether payment
is of principal, premium, or interest) to identify
the source and application of such funds.

with advice of such payments to:

New York Life Insurance and Annuity Corporation
c/o New York Life Insurance Company
51 Madison Avenue
New York, New York  10010-1603

Attention:     Treasury Department
               Securities Income Section
               Room 209
               Fax #:  (212) 447-4160

(2)      All other communications:

New York Life Insurance and Annuity Corporation
c/o New York Life Insurance Company
51 Madison Avenue
New York, New York  10010-1603

Attention:     Investment Department
               Private Finance Group
               Room 206
               Fax #:  (212) 447-4122

with a copy of any notices regarding defaults or Events of
Default under the operative documents to:

Attention:     Office of General Counsel
               Investment Section, Room 1107
               Fax #:  (212) 576-8340

------------------------------------------------------ -------------------------
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY (BPF)
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY (RDI)                  $44,000,000

PRINCIPAL & INTEREST PAYMENTS: (via Fed Wire)                      $ 1,000,000

BANKERS TRUST COMPANY
NEW YORK, NY
ABA #: 021 00 1033
A/C #:  99-911-145
PRIVATE PLACEMENT PROCESSING
FOR FURTHER CREDIT:  SEE ACCOUNT NAME LISTED ABOVE
                     -----------------------------
FURTHER CREDIT CUSTODY A/C:

BPF Custody Account Number - 96229 RDI
Custody Account Number - 98312

(On Wire Reference Security Name/Rate/Maturity/PPN/P=$/I=$

ADDRESS FOR ALL COMMUNICATION AND NOTICE OF PAYMENT:

LINCOLN INVESTMENT MANAGEMENT, INC.
200 EAST BERRY STREET; RENAISSANCE SQUARE
FORT WAYNE, IN  46802
ATTN:  INVESTMENTS/PRIVATE PLACEMENTS
FAX:  (219) 455-5499 - PRIVATE PLACEMENTS

ADDRESS FOR NOTICE OF PAYMENT:

BANKERS TRUST COMPANY
ATTN:  PRIVATE PLACEMENT UNIT
P.O. BOX 998; BOWLING GREEN STATION
NEW YORK, NY  10004
FAX:  (615) 835-2493 - ATTN:  KIM LOUIS -
PRIVATE PLACEMENTS

FORWARD SECURITIES TO:

BANKERS TRUST COMPANY
14 WALL STREET; 4TH FLOOR, WINDOW #44
ATTENTION:  LORRAINE SQUIRES (TEL. 212-618-2200)
MAIL STOP 4049
NEW YORK, NY  10005
(In Cover Letter Reference Account Name(s) and Custody
Account Number(s))
------------------------------------------------------ -------------------------
AMERICAN GENERAL ANNUITY INSURANCE COMPANY                         $25,000,000

All payments to be by wire transfer of immediately
available funds, with sufficient information (including
PPN #, interest rate, maturity date, interest amount,
principal amount and premium amount, if applicable) to
identify the source and application of such funds, to:

ABA #011000028
State Street Bank and Trust Company
Boston, MA  02101
Re:  American General Annuity Insurance Company
AC-7215-132-7
OBI=PPN # and description of payment
Fund Number PA WE 1B

PAYMENT NOTICES TO:

American General Annuity Insurance Company and PA WE 1B
c/o State Street Bank Corporation
Insurance Services
801 Pennsylvania
Kansas City, MO  64105
Facsimile Number:  (816) 691-3619

DUPLICATE PAYMENT NOTICES AND ALL OTHER CORRESPONDENCES TO:

American General Annuity Insurance Company and PA WE 1B
c/o American General Corporation
Attn:  Investment Research Department, A37-01
P.O. Box 3247
Houston, Texas  77253-3247

Overnight Mail Address:             2929 Allen Parkway, A37-01
                                    Houston, Texas  77019-2155

Facsimile Number:  (713) 831-1366

Tax I.D. Number:  75-0770838
------------------------------------------------------ -------------------------
AMERICAN GENERAL LIFE AND ACCIDENT INSURANCE COMPANY               $10,000,000

All payments to be by wire transfer of immediately
available funds, with sufficient information
(including PPN #, interest rate, maturity date,
interest amount, principal amount and premium amount,
if applicable) to identify the source and application
of such funds, to:

ABA #011000028
State Street Bank and Trust Company
Boston, MA  02101
Re:  American General Life and Accident Insurance Company
AC-0125-934-0
OBI=PPN # and description of payment
Fund Number PA 10

PAYMENT NOTICES TO:

American General Life and Accident Insurance Company and PA 10
c/o State Street Bank Corporation
Insurance Services
801 Pennsylvania
Kansas City, MO  64105
Facsimile Number:  (816) 691-3619

DUPLICATE PAYMENT NOTICES AND ALL OTHER CORRESPONDENCES TO:

American General Life and Accident Insurance Company and PA 10
c/o American General Corporation
Attn:  Investment Research Department, A37-01
P.O. Box 3247
Houston, Texas  77253-3247

Overnight Mail Address:             2929 Allen Parkway, A37-01
                                    Houston, Texas  77019-2155

Facsimile Number:  (713) 831-1366

Tax I.D. Number:  62-0306330
------------------------------------------------------ -------------------------
THE VARIABLE ANNUITY LIFE INSURANCE COMPANY                        $10,000,000

All payments to be by wire transfer of immediately
available funds, with sufficient information
(including PPN #, interest rate, maturity date,
interest amount, principal amount and premium amount,
if applicable) to identify the source and application
of such funds, to:

ABA #011000028
State Street Bank and Trust Company
Boston, MA  02101
Re:  The Variable Annuity Life Insurance Company
AC-0125-821-9
OBI=PPN # and description of payment
Fund Number PA 54

PAYMENT NOTICES TO:

The Variable Annuity Life Insurance Company and PA 54
c/o State Street Bank Corporation
Insurance Services
801 Pennsylvania
Kansas City, MO  64105
Facsimile Number:  (816) 691-3619

DUPLICATE PAYMENT NOTICES AND ALL OTHER CORRESPONDENCES TO:

The Variable Annuity Life Insurance Company and PA 54
c/o American General Corporation
Attn:  Investment Research Department, A37-01
P.O. Box 3247
Houston, Texas  77253-3247

Overnight Mail Address:             2929 Allen Parkway, A37-01
                                    Houston, Texas  77019-2155

Facsimile Number:  (713) 831-1366

Tax I.D. Number:  74-1625348
------------------------------------------------------ -------------------------
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY                     $11,750,000

PAYMENTS:

All payments on account of the TRANSAMERICA
OCCIDENTAL LIFE INSURANCE COMPANY - STRUCTURED
SETTLEMENTS shall be made by wire transfer of
immediately available funds to:

Boston Safe Deposit Trust
ABA# - 011001234
Credit DDA Account #125261
Attn:  MBS Income, cc1253
Custody account # TRAF1505502

For credit to the account of TRANSAMERICA OCCIDENTAL
LIFE INSURANCE COMPANY - STRUCTURED SETTLEMENTS
providing sufficient information with description, cusip,
principal, and interest with such wire transfer to
identify the source and application of funds:

PAYMENT ADVICE AND ORIGINAL NOTE:

All notice of and confirmation of PAYMENT information
and the ORIGINAL note should be sent to the following
address stating that the certificate is registered in
the name of Transamerica Occidental Life Insurance Company -
Structured Settlements.

AEGON USA Investment Management, Inc.
Attn:  Private Placements
4333 Edgewood Road, NE
Cedar Rapids, IA  52499-5112
FAX #:  319-398-8695

OTHER COMMUNICATION:

All other communications including financial statement and
reporting should be directed to:

AEGON USA Investment Management, Inc.
Attn:  Director of Private Placements
4333 Edgewood Road NE
Cedar Rapids, IA  52499-5335
FAX # 319-369-2666

and

AEGON USA Investment Management, Inc.
Attn:  Liz Taylor - Private Placements
400 West Market Street
Louisville, KY  40202
FAX # 502-560-2030

------------------------------------------------------ -------------------------
MONUMENTAL LIFE INSURANCE COMPANY                                  $33,250,000

PAYMENTS:

All payments on account of the Monumental Life Insurance
Company shall be made by wire transfer of immediately
available funds to:

Citibank, NA
111 Wall Street
New York, NY  10043
ABA #021000089
DDA #36218394
Custody Account No. 847785

for further credit to Monumental Life Insurance Company,
providing sufficient information with description, cusip,
principal, and interest with such wire transfer to
identify the source and application of funds.

PAYMENT ADVICE AND ORIGINAL NOTE:

All notice of and confirmation of PAYMENT information
and the ORIGNAL note should be sent to the following
address stating that the certificate is registered in
the name of Monumental Life Insurance Company.

AEGON USA Investment Management, Inc.
Attn:  Private Placements
4333 Edgewood Road N.E.
Cedar Rapids, IA  52499-5112
FAX # 319-398-8695

OTHER COMMUNICATION:

All other communication including financial statement
and reporting should be directed to both:

AEGON USA Investment Management, Inc.
Attn:  Liz Taylor - Private Placements
400 West Market Street
Louisville, KY  40202
FAX # 502-560-2030

and

AEGON USA Investment Management, Inc.
Attn:  Director of Private Placements
4333 Edgewood Road N.E.
Cedar Rapids, IA  52499-5335
FAX # 319-369-2666

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

<PAGE>
                                   SCHEDULE II

                     SCHEDULE FOR FUNDING OF TRANCHE B LOANS

---------------------------------------------------
Schedule for Funding of Tranche B Loans

---------------------------------------------------
            Date Amount
---------------------------------------------------
    Jul-31, 2000 $            40,700,000
---------------------------------------------------
    Oct-15, 2000 $            33,600,000
---------------------------------------------------
    Jan-15, 2001 $            31,500,000
---------------------------------------------------
    Apr-15, 2001 $            33,600,000
---------------------------------------------------
    Jul-15, 2001 $            20,800,000
---------------------------------------------------
    Oct-15, 2001 $             4,800,000
---------------------------------------------------
           Total $           165,000,000
---------------------------------------------------

<PAGE>
                                  SCHEDULE III

                  AMORTIZATION SCHEDULE FOR THE TRANCHE B LOANS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
                                                           Payment on each date of     Percentage
----------------------------------------------------------------------------------------------------------
<S>                                                         <C>                         <C>
              15 July 2012, 15 Oct 2012, 15 Jan 2013        $       3,200,000           5.8182%
------------------------------------------------------------------------------------------------
  15 Apr 2013, 15 Jul 2013, 15 Oct 2013, 15 Jan 2014        $       3,400,000           8.2424%
------------------------------------------------------------------------------------------------
  15 Apr 2014, 15 Jul 2014, 15 Oct 2014, 15 Jan 2015        $       3,600,000           8.7273%
------------------------------------------------------------------------------------------------
  15 Apr 2015, 15 Jul 2015, 15 Oct 2015, 15 Jan 2016        $       3,800,000           9.2121%
------------------------------------------------------------------------------------------------
  15 Apr 2016, 15 Jul 2016, 15 Oct 2016, 15 Jan 2017        $       3,700,000           8.9697%
------------------------------------------------------------------------------------------------
  15 Apr 2017, 15 Jul 2017, 15 Oct 2017, 15 Jan 2018        $       2,500,000           6.0606%
------------------------------------------------------------------------------------------------
  15 Apr 2018, 15 Jul 2018, 15 Oct 2018, 15 Jan 2019        $       2,400,000           5.8182%
------------------------------------------------------------------------------------------------
  15 Apr 2019, 15 Jul 2019, 15 Oct 2019, 15 Jan 2020        $       2,400,000           5.8182%
------------------------------------------------------------------------------------------------
  15 Apr 2020, 15 Jul 2020, 15 Oct 2020, 15 Jan 2021        $       2,400,000           5.8182%
------------------------------------------------------------------------------------------------
  15 Apr 2021, 15 Jul 2021, 15 Oct 2021, 15 Jan 2022        $       2,500,000           6.0606%
------------------------------------------------------------------------------------------------
  15 Apr 2022, 15 Jul 2022, 15 Oct 2022, 15 Jan 2023        $       2,600,000           6.3030%
------------------------------------------------------------------------------------------------
  15 Apr 2023, 15 Jul 2023, 15 Oct 2023, 15 Jan 2024        $       2,700,000           6.5455%
------------------------------------------------------------------------------------------------
  15 Apr 2024, 15 Jul 2024, 15 Oct 2024, 15 Jan 2025        $       2,900,000           7.0303%
------------------------------------------------------------------------------------------------
  15 Apr 2025, 15 Jul 2025, 15 Oct 2025, 15 Jan 2026        $       3,100,000           7.5152%
------------------------------------------------------------------------------------------------
                                         15 Apr 2026        $       3,400,000           2.0606%
------------------------------------------------------------------------------------------------
                                                    Total   $    165,000,000          100.0000%
------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>
                                                                       EXHIBIT A

                                  FORM OF NOTE

                            LIBERTY ELECTRIC PA, LLC

                       SENIOR SECURED NOTE DUE APRIL 2026
                                   PPN [_____]

No. [____]
$[_____]                                                     [Date of Borrowing]
                                                              New York, New York

LIBERTY ELECTRIC PA, LLC a special purpose limited liability company duly formed
and validly existing under the laws of the State of Delaware (the BORROWER), for
value received, hereby promises to pay to [NAME OF INSTITUTIONAL LENDER] or
registered assigns (the INSTITUTIONAL LENDER), on the Tranche B Final Maturity
Date (as defined in the Note Purchase Agreement referred to below), the
principal sum of [_______] DOLLARS (or such lesser amount as shall equal the
aggregate unpaid principal amount of all Tranche B Loans (as defined in the Note
Purchase Agreement referred to below) made by the Institutional Lender to the
Borrower under the Note Purchase Agreement referred to below and evidenced by
this Note) and to pay interest (computed on the basis of the actual number of
days elapsed in a 360-day year) at the Applicable Interest Rate (as defined in
the Note Purchase Agreement referred to below) on the unpaid principal hereof
from the date of each such Tranche B Loan, payable on each Interest Payment Date
(as defined in the Note Purchase Agreement referred to below), until such
principal sum shall have become due and payable (whether at maturity, at a
required prepayment date or otherwise), and to pay on demand, or otherwise on
the next Interest Payment Date, interest on any overdue principal and on any
premium or Make-Whole Amount (as defined in the Note Purchase Agreement) and, to
the extent permitted by applicable law, on any overdue interest, from the due
date thereof, at the Default Rate (as defined in the Note Purchase Agreement
referred to below) until the obligation of the Borrower with respect to the
payment thereof shall be discharged. In addition, this Note shall be subject to,
and the Institutional Lender shall be entitled to the benefit of, the guarantee
from Liberty Electric Power, LLC of the due and punctual payment of the
principal of, Make Whole Amount (as defined in the Note Purchase Agreement), if
any, and interest on this Note made under Article 10 of the MASTER AGREEMENT (as
defined in the Note Purchase Agreement referred to below). Subject to Section 6
of the Note Purchase Agreement referred to below, payments of principal,
Make-Whole Amount, interest and any other amounts due in respect of this Note
shall be made at the principal office of the Administrative Agent (as defined by
reference in the Note Purchase Agreement referred to below) in New York, New
York.

This Note is one of the Senior Secured Notes due April 2026 of the Borrower,
issued pursuant to a Note Purchase Agreement dated as of July 31, 2000 entered
into by the Borrower with the Institutional Lenders identified therein (the NOTE
PURCHASE AGREEMENT). This Note is secured pursuant to certain Security Documents
(as defined by reference in the Note Purchase Agreement). Subject to the terms
of said Note Purchase Agreement, the holder of this Note, or the Administrative
Agent on its behalf, is entitled to enforce the provisions of such Note Purchase
Agreement and such Security Documents and to enjoy the benefits thereof.

The date and amount of each payment made on account of principal hereof, shall
be recorded by the Institutional Lender on its books and, prior to any transfer
of this Note, endorsed by the Institutional Lender hereon PROVIDED that the
failure of the Institutional Lender to make any such recordation or endorsement
shall not affect the obligations of the Borrower to make a payment when due of
any amount owing under this Note, the Note Purchase Agreement or the Master
Agreement in respect of the Tranche B Loans made by the Institutional Lender.

This Note is subject to required prepayment by the Borrower on the dates and in
the amounts specified in the Note Purchase Agreement and the Master Agreement.
The Borrower may at its election prepay this Note, in whole or in part, as
provided in the Note Purchase Agreement and in the Master Agreement. Subject to
the terms of the Note Purchase Agreement and the Master Agreement, the maturity
hereof may be accelerated following an Event of Default, all as provided in the
Master Agreement. Reference is made to the Note Purchase Agreement and to the
Master Agreement for the terms and conditions of such provisions as to
prepayment and acceleration, including without limitation the payment of
breakage costs in connection therewith.

Transfer of this Note is registrable on the Register of the Borrower maintained
pursuant to Section 12.4(f) of the Master Agreement, upon presentation at the
principal executive office of the Borrower, accompanied by a written instrument
of transfer in accordance with the Note Purchase Agreement and the Master
Agreement, duly executed by, or on behalf of, the holder hereof. This Note may
also be exchanged at such offices for one or more Notes in any authorized
denominations, as requested by the holder, of a like aggregate unpaid principal
amount.

Prior to due presentment for registration of transfer, the Borrower and any
agent of the Borrower and said Administrative Agent may treat the person in
whose name this Note is registered as the owner hereof for the purpose of
receiving payment of principal and premium, if any, and interest as herein
provided and for all other purposes.

This Note shall be construed and enforced in accordance with, and the rights of
the parties shall be governed by, the laws of the State of New York.

LIBERTY ELECTRIC PA, LLC

By____________________________
Title:

<PAGE>
                                                                     EXHIBIT A-1

                                FORM OF GUARANTEE

                            CERTIFICATE OF GUARANTEE

For value received, the undersigned hereby unconditionally and irrevocably
guarantees to the holder of the foregoing Note the due and punctual payment of
the principal of, Make Whole Amount, if any, and interest on said Note, as more
fully provided in the Note and Article 10 of the Master Agreement referred to in
said Note.

LIBERTY ELECTRIC POWER, LLP

By:  _________________________

Title:

<PAGE>
                                                                  Execution Copy

                                  JULY 31, 2000

                            LIBERTY ELECTRIC PA, LLC

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

                             NOTE PURCHASE AGREEMENT

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

                                  $165,000,000

                          SENIOR SECURED NOTES DUE 2026

<PAGE>
                                    CONTENTS

CLAUSE                                                                     PAGE

1    INTRODUCTORY MATTERS; ISSUANCE OF NOTES................................1

     1.1    Introductory Matters............................................1
     1.2    Authorization...................................................1
     1.3    Issuance of Notes; the Closing..................................1

1.   COMMITMENTS, AMOUNTS, NOTES; INTEREST; FEES............................1

      2.1   Loans, Allocation of Loans......................................1
      2.2   Notes...........................................................1
      2.3   Interest........................................................1
      2.4   Fees............................................................1
      2.5   Cancellation Fees...............................................1

1.    TRANSFER AND EXCHANGE OF NOTES........................................1

      3.1   Transfer and Exchange of Notes..................................1
      3.2   Replacement of Notes............................................1

1.    PAYMENTS; PREPAYMENTS; COMMITMENT REDUCTIONS..........................1

      4.1   Prepayments; Commitment Reductions..............................1
      4.2   Maturity; Surrender, Etc........................................1
      4.3   Notices.........................................................1
      4.4   Purchase of Notes...............................................1

1.    REPRESENTATIONS OF THE INSTITUTIONAL LENDERS..........................1

      5.1   Purchase for Investment.........................................1
      5.2   Source of Funds.................................................1
      5.3   Accredited Investor.............................................1

1.    HOME OFFICE PAYMENT...................................................1

2.    LIABILITIES OF THE INSTITUTIONAL LENDER...............................1

3.    TAXES.................................................................1

4.    MISCELLANEOUS.........................................................1

      9.1   Reliance on and Survival of Representations.....................1
      9.2   Successors and Assigns..........................................1
      9.3   Communications..................................................1
      9.4   Governing Law...................................................1
      9.5   Submission to Jurisdiction......................................1
      9.6   Waiver of Venue.................................................1
      9.7   Service of Process..............................................1
      9.8   Waiver of Jury Trial............................................1
      9.9   Headings........................................................1
      9.10     Counterparts.................................................1
      9.11     Severability.................................................1

ANNEX I             DEFINITIONS

SCHEDULE I      -   NAMES AND ADDRESSES OF INSTITUTIONAL LENDERS

SCHEDULE II     -   SCHEDULE OF FUNDING OF TRANCHE B LOANS

SCHEDULE III    -   AMORTIZATION SCHEDULE FOR THE TRANCHE B LOANS

EXHIBIT A       -   FORM OF NOTE

EXHIBIT A-1     -   FORM OF GUARANTEE

<PAGE>
AMENDMENT TO THE NOTE PURCHASE AGREEMENT dated as of February 6, 2001 between
LIBERTY ELECTRIC PA, LLC, a special purpose limited liability company
incorporated under the laws of the State of Delaware (the BORROWER) and each of
the Institutional Lenders signatory to the Note Purchase Agreement referred to
below (the INSTITUTIONAL LENDERS).

The Borrower and the Institutional Lenders are party to a Note Purchase
Agreement dated as of July 31, 2000 (as amended, supplemented and otherwise
modified and in effect immediately prior to the effectiveness of the waiver
contemplated hereby, the NOTE PURCHASE AGREEMENT).

The Borrower, Liberty Electric Power, LLC, the Lenders (as defined in the Master
Agreement referred to herein) and the Administrative Agent are party to a Master
Agreement dated as of July 31, 2000 (as amended, supplemented and otherwise
modified, the MASTER AGREEMENT).

The Borrower has requested that the Institutional Lenders agree, and the
Institutional Lenders party hereto are willing, to amend the Note Purchase
Agreement all on the terms and conditions of this Amendment.

Accordingly, in consideration of the premises and the mutual agreements
contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

DEFINITIONS

1. Terms used but not defined herein shall have the respective meanings ascribed
to such terms in the Master Agreement, as amended hereby. In addition, as used
herein, AMENDMENT EFFECTIVE DATE means the first date on which all of the
conditions to effectiveness set forth in Section 4 shall have been satisfied.

AMENDMENTS

2. Subject to the satisfaction of the conditions to effectiveness specified in
Section 4 hereof, but with effect on and after the date hereof, Schedule II of
the Note Purchase Agreement shall be amended by changing the third drawdown date
in such Schedule from January 31, 2001 to February 9, 2001.

REPRESENTATIONS AND WARRANTIES

3.   The Borrower represents and warrants to the Institutional Lenders that:

(a)  this Amendment has been duly and validly executed and delivered by the
     Borrower and constitutes the Borrower's legal, valid and binding
     obligation, enforceable against the Borrower in accordance with its terms;
     and

(b)  after giving effect to this Amendment (i) no Default shall have occurred
     and be continuing and (ii) the representations and warranties made by the
     Borrower in Article VI of the Master Agreement and in each of the other
     Transaction Documents to which it is a party, are true and correct on and
     as of the date hereof with the same force and effect as if made on and as
     of such date (or, if any such representation or warranty is expressly
     stated to have been made as of a specific date, as of such specific date).

It shall be an Event of Default for all purposes of the Master Agreement, as
amended hereby, if any representation, warranty or certification made by the
Borrower in this Amendment shall prove to have been false or misleading as of
the time made or furnished in any material respect.

CONDITIONS TO EFFECTIVENESS

4. The amendments to the Note Purchase Agreement set forth in this Amendment
shall become effective, as of the date hereof, upon the satisfaction of each of
the following conditions to effectiveness (including, without limitation, that
each document to be received by the Administrative Agent shall be in form and
substance satisfactory to the Administrative Agent):

(a)  AMENDMENT. The Institutional Lenders shall have received the Master
     Agreement Amendment No. 2, duly executed and delivered by each Obligor,
     each of the Required Lenders, the Majority Lenders under each Loan
     Agreement, the Administrative Agent and the Collateral Agent.

(b)  REPRESENTATIONS AND WARRANTIES. Each of the representations and warranties
     made by the Borrower in Section 3 hereof shall be true and correct on and
     as of the Amendment Effective Date with the same force and effect as if
     made on and as of the Amendment Effective Date (or, if any such
     representation or warranty is expressly stated to have been made as of a
     specific date, as of such specific date).

(c)  OTHER DOCUMENTS. The Administrative Agent shall have received such other
     documents as the Administrative Agent or any Lender or special New York
     counsel to the Lenders may reasonably request.

DOCUMENTS OTHERWISE UNCHANGED

5. Except as herein provided, the Note Purchase Agreement shall remain unchanged
and in full force and effect, and each reference to Note Purchase Agreement, and
words of similar import in the Note Purchase Agreement, as each are amended
hereby, and other documents to which any Borrower is a party shall be a
reference to the Note Purchase Agreement, as amended hereby and as the same may
be further amended, supplemented and otherwise modified and in effect from time
to time.

COUNTERPARTS

6. This Amendment may be executed and delivered in counterparts (including by
facsimile transmission), each of which shall be identical and all of which, when
taken together, shall constitute one and the same instrument, and any of the
parties hereto may execute this Amendment by signing any such counterpart.

EXPENSES

7. Without limiting its obligations under Section 12.3(a) of the Master
Agreement, the Borrower agrees to pay, on demand, all reasonable out-of-pocket
costs and expenses of the Institutional Lenders (including the fees and
disbursements of Freshfields Bruckhaus Deringer LLP, special New York counsel to
the Lenders) incurred in connection with the negotiation, preparation, execution
and delivery of this Amendment.

BINDING EFFECT

8. This Amendment shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns.

GOVERNING LAW

9. This Amendment shall be governed by, and construed in accordance with, the
law of the State of New York.

<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to the Note
Purchase Agreement to be duly executed as of the day and year first above
written.

LIBERTY ELECTRIC PA, LLC
By Mid Atlantic Liberty Corporation, a Member Manager

By:
Name:
Title:

NEW YORK LIFE INSURANCE COMPANY

By:
Title:

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

By:
Title:

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY (BPF)
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY (RDI)
By:  Lincoln Investment Management Inc.
Its Attorney-in-Fact

By:
Title:

AMERICAN GENERAL ANNUITY INSURANCE COMPANY
AMERICAN GENERAL LIFE AND ACCIDENT INSURANCE COMPANY
THE VARIABLE ANNUITY LIFE INSURANCE COMPANY

By:
Title:

TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY

By:
Title:

MONUMENTAL LIFE INSURANCE COMPANY

By:
Title:

<PAGE>
WAIVER NO. 1 TO THE NOTE PURCHASE AGREEMENT dated as of February 6, 2001 between
LIBERTY ELECTRIC PA, LLC, a special purpose limited liability company
incorporated under the laws of the State of Delaware (the BORROWER) and each of
the Institutional Lenders signatory to the Note Purchase Agreement referred to
below (the INSTITUTIONAL LENDERS).

The Borrower and the Institutional Lenders are party to a Note Purchase
Agreement dated as of July 31, 2000 (as amended, supplemented and otherwise
modified and in effect immediately prior to the effectiveness of the waiver
contemplated hereby, the NOTE PURCHASE AGREEMENT).

The Borrower, Liberty Electric Power, LLC, the Lenders (as defined in the Master
Agreement referred to herein) and the Administrative Agent are party to a Master
Agreement dated as of July 31, 2000 (as amended, supplemented and otherwise
modified, the MASTER AGREEMENT).

The Borrower has requested that the Institutional Lenders agree, and the
Institutional Lenders party hereto are willing, to waive certain notice
provisions contained in Section 2.1 of the Note Purchase Agreement, all on the
terms and conditions of this Waiver No. 1.

Accordingly, in consideration of the premises and the mutual agreements
contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

DEFINITIONS

1. Terms used but not defined herein shall have the respective meanings ascribed
to such terms in the Note Purchase Agreement and the Master Agreement.

WAIVER

2. With respect to the Requested Drawdown Date of February 9, 2001 only, the
Institutional Lenders hereby waive compliance with the provision set forth in
Section 2.1(a) of the Note Purchase Agreement requiring the provision of a
Notice of Borrowing with respect to the Tranche B Loans to the Administrative
Agent not less than six (6) Business Days prior to the Requested Drawdown Date
PROVIDED that such Notice of Borrowing shall be provided to the Administrative
Agent not less than 2 Business Days prior to the Requested Drawdown Date.

The foregoing waiver shall not be construed as a waiver of (i) any other
provision; or (ii) any provision relating to a Notice of Borrowing made after
the date hereof. Such waiver shall not extend to or affect any obligation not
expressly waived or impair any right consequent thereon.

REPRESENTATIONS AND WARRANTIES

3.   The Borrower represents and warrants to the Institutional Lenders that:

(a)  This Waiver No. 1 has been duly and validly executed and delivered by such
     Borrower and constitute the Borrower's legal, valid and binding
     obligations, enforceable against such Borrower in accordance with its
     terms.

(b)  After giving effect to this Waiver No. 1, (i) no Default or Event of
     Default shall have occurred and be continuing; and (ii) the representations
     and warranties made by the Borrower in Article 6 of the Master Agreement
     are true and correct on and as of the date hereof with the same force and
     effect as if made on and as of such date (or, if any such representation or
     warranty is expressly stated to have been made as of a specific date, as of
     such specific date).

CONDITIONS TO EFFECTIVENESS

4. The waiver provided for in Section 2 hereof shall become effective, as of the
date hereof, upon the execution and delivery of this Waiver No. 1 by the parties
hereto.

DOCUMENTS OTHERWISE UNCHANGED

5. Except as herein provided, the Note Purchase Agreement shall remain unchanged
and in full force and effect.

EXPENSES

6. Without limiting its obligations under Section 12.3(a) of the Master
Agreement, the Borrower agrees to pay, on demand, all reasonable out-of-pocket
costs and expenses of the Institutional Lenders (including the fees and
disbursements of counsel to the Institutional Lenders incurred in connection
with the negotiation, preparation, execution and delivery of this Waiver No. 1).

BINDING EFFECT

7. This Waiver No. 1 shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns.

GOVERNING LAW

8. This Waiver No. 1 shall be governed by, and construed in accordance with, the
law of the State of New York.

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Waiver No. 1 to be duly
executed as of the day and year first above written.

LIBERTY ELECTRIC PA, LLC
By Mid Atlantic Liberty Corporation, a Member Manager

By:
Name:
Title:

Acknowledged By:

LIBERTY ELECTRIC POWER, LLC
By Liberty Electric PA, LLC, its sole Member
By Mid Atlantic Liberty Corporation, a Member Manager

By:
Name:
Title:

<PAGE>

NEW YORK LIFE INSURANCE COMPANY

By:
Title:

NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION

By:
Title:

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY (BPF)
THE LINCOLN NATIONAL LIFE INSURANCE COMPANY (RDI)
By:  Lincoln Investment Management Inc.
Its Attorney-in-Fact

By:
Title:

AMERICAN GENERAL ANNUITY INSURANCE COMPANY
AMERICAN GENERAL LIFE AND ACCIDENT INSURANCE COMPANY
THE VARIABLE ANNUITY LIFE INSURANCE COMPANY

By:
Title:

TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY

By:
Title:

MONUMENTAL LIFE INSURANCE COMPANY

By:
Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]