Document:

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                                                                    EXHIBIT 10.2

                                                                  EXECUTION COPY

                       364-DAY REVOLVING CREDIT AGREEMENT

                                      among

                            ATMOS ENERGY CORPORATION
                                  as Borrower,

                         THE LENDERS IDENTIFIED HEREIN,

                                       AND

                                  BANK ONE, NA
                            as Administrative Agent,

                                       AND

                       WACHOVIA BANK, NATIONAL ASSOCIATION
                                       and

                                  SUNTRUST BANK

                            as Co-Syndication Agents

                                       AND

                                   COBANK ACB
                                       and

                        SOCIETE GENERALE, NEW YORK BRANCH

                           as Co-Documentation Agents

                            DATED AS OF JULY 31, 2002

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

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                                364-DAY REVOLVING
                                CREDIT AGREEMENT

         THIS 364-DAY REVOLVING CREDIT AGREEMENT (this "Credit Agreement"),
dated as of July 31, 2002, is entered into among ATMOS ENERGY CORPORATION, a
Texas and Virginia corporation (the "Borrower"), the Lenders (as defined herein)
and BANK ONE, NA as agent for the Lenders (in such capacity, the "Administrative
Agent").

                                    RECITALS

         WHEREAS, the Borrower wishes, from time to time, to obtain loans in the
principal sum of up to $300,000,000 and the Lenders are willing to make such
loans to the Borrower, on the terms and conditions hereinafter set forth.

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

                                   SECTION 1.

                        DEFINITIONS AND ACCOUNTING TERMS

         1.1      DEFINITIONS.

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

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

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

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

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

                  "Applicable Percentage" - See the Pricing Schedule.
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                  "Bankruptcy Code" means the Bankruptcy Code in Title 11 of the
         United States Code, as amended, modified, succeeded or replaced from
         time to time.

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

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

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

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

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

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

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

                           (a) any "person" or "group" (within the meaning of
                  Section 13(d) or 14(d) of the Exchange Act) has become,
                  directly or indirectly, the "beneficial owner" (as defined in
                  Rules 13d-3 (other than subsection (d) thereof) and 13d-5
                  under the Exchange Act), by way of merger, consolidation or
                  otherwise of 40% or more of the voting power of the Borrower
                  on a fully-diluted basis, after giving effect to the
                  conversion and exercise of all outstanding warrants, options
                  and other securities of the Borrower convertible into or
                  exercisable for voting stock of the Borrower (whether or not
                  such securities are then currently convertible or
                  exercisable); or

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

                  "Closing Date" means the date hereof.

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

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

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

                  "Competitive Bid" means an offer by a Lender to make a
         Competitive Bid Loan pursuant to the terms of Section 2.1(b).

                  "Competitive Bid Fee" means a fee of $1,000 payable by the
         Borrower to the Administrative Agent in connection with a Competitive
         Bid Request pursuant to Section 2.1(b).

                  "Competitive Bid Loan" means a loan made by a Lender in its
         discretion pursuant to the provisions of Section 2.1(b).

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

                  "Competitive Bid Rate" means, as to any Competitive Bid made
         by a Lender in accordance with the provisions of Section 2.1(b), the
         rate of interest offered by the Lender making the Competitive Bid.

                  "Competitive Bid Request" means a request by the Borrower for
         Competitive Bids in the form of Exhibit 2.1(b).

                  "Consolidated Capitalization" means, without duplication, the
         sum of (a) all of the shareholders' equity or net worth of the Borrower
         and its Subsidiaries on a

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         consolidated basis, as determined in accordance with GAAP plus (b) the
         aggregate principal amount of Preferred Securities plus (c) the
         aggregate Minority Interests in Subsidiaries plus (d) Consolidated
         Funded Debt.

                  "Consolidated Funded Debt" means, without duplication, the sum
         of (a) all indebtedness of the Borrower and its Subsidiaries for
         borrowed money, (b) all purchase money indebtedness of the Borrower and
         its Subsidiaries, (c) the principal portion of all obligations of the
         Borrower and its Subsidiaries under capital leases, (d) all commercial
         letters of credit and the maximum amount of all performance and standby
         letters of credit issued or bankers' acceptance facilities created for
         the account of the Borrower or one of its Subsidiaries, including,
         without duplication, all unreimbursed draws thereunder, (e) all
         Guaranty Obligations of the Borrower and its Subsidiaries with respect
         to funded indebtedness of another Person; provided that neither the
         indebtedness of Woodward Marketing, LLC ("Woodward") incurred in
         connection with the purchase of gas by Woodward for resale to the
         Borrower nor the guaranty by the Borrower or one of its Subsidiaries of
         such indebtedness shall be included in this definition if such
         indebtedness has been outstanding for less than two months from the
         date of its incurrence by Woodward, (f) all indebtedness of another
         entity secured by a Lien on any property of the Borrower or any of its
         Subsidiaries whether or not such indebtedness has been assumed by the
         Borrower or any of its Subsidiaries, (g) all indebtedness of any
         partnership or unincorporated joint venture to the extent the Borrower
         or one of its Subsidiaries is legally obligated with respect thereto,
         net of any assets of such partnership or joint venture, (h) all
         obligations of the Borrower and its Subsidiaries to advance or provide
         funds or other support for the payment or purchase of funded
         indebtedness (including, without limitation, maintenance agreements,
         comfort letters or similar agreements or arrangements) (other than as
         may be given in respect of Woodward) and (i) the principal balance
         outstanding under any synthetic lease, tax retention operating lease,
         off-balance sheet loan or similar off-balance sheet financing product
         of the Borrower or one of its Material Subsidiaries where such
         transaction is considered borrowed money indebtedness for tax purposes
         but is classified as an operating lease in accordance with GAAP.

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

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

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

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

                  "Defaulting Lender" means, at any time, any Lender that, at
         such time (a) has failed to make a Loan required pursuant to the term
         of this Credit Agreement, (b) has failed to pay to the Administrative
         Agent or any Lender an amount owed by such Lender

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         pursuant to the terms of this Credit Agreement or (c) has been deemed
         insolvent or has become subject to a bankruptcy or insolvency
         proceeding or to a receiver, trustee or similar official.

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

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

                  "Eligible Assignee" means (a) a Lender; (b) an Affiliate of a
         Lender; and (c) any other Person approved by the Administrative Agent
         and the Borrower (such approval not to be unreasonably withheld or
         delayed); provided that (i) the Borrower's consent is not required
         during the existence and continuation of a Default or an Event of
         Default, (ii) approval by the Borrower shall be deemed given if no
         objection is received by the Administrative Agent from the Borrower
         within five Business Days after notice of such proposed assignment has
         been received by the Borrower; and (iii) neither the Borrower nor an
         Affiliate of the Borrower shall qualify as an Eligible Assignee.

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

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

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

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

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

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

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

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

                  "Existing Revolving Credit Agreement" means that certain
         Amended and Restated Credit Agreement, dated as of August 2, 2001,
         among the Borrower, the lenders identified therein and Bank of America,
         N.A., as administrative agent, as amended, modified, supplemented or
         replaced from time to time.

                  "Federal Funds Rate" means, for any day, an interest rate per
         annum equal to the weighted average of the rates on overnight Federal
         Funds transactions with members of the Federal Reserve System arranged
         by Federal funds brokers, as published for such day by the Federal
         Reserve Bank of New York, or if such rate is not so published for such
         day, the average of the quotations for such day on such transactions
         received by the Administrative Agent from three Federal funds brokers
         of recognized standing selected by it.

                  "Fee Letter" means that certain letter agreement, dated as of
         June 14, 2002, between the Administrative Agent and the Borrower, as
         amended, modified, supplemented or replaced from time to time.

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

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

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

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

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

                  "Interest Payment Date" means (a) as to Base Rate Loans, the
         last day of each fiscal quarter of the Borrower and the Maturity Date,
         (b) as to Eurodollar Loans, the last day of each applicable Interest
         Period and the Maturity Date and, in addition, where the applicable
         Interest Period for a Eurodollar Loan is greater than three months,
         then also on the last day of each three-month period during such
         Interest Period and (c) as to Competitive Bid Loans, the last day of
         each applicable Interest Period and the Maturity Date.

                  "Interest Period" means (a) as to Eurodollar Loans, a period
         of one, two, three or six months' duration, as the Borrower may elect,
         commencing, in each case, on the date of the borrowing (including
         continuations and conversions of Eurodollar Loans) and (b) with respect
         to Competitive Bid Loans, a period beginning on the date the
         Competitive Bid Loan is made and ending on a date specified in the
         applicable Competitive Bid Request pursuant to which the offer to make
         such Competitive Bid Loan was extended, which shall not be less than 30
         days nor more than 90 days in duration; provided, however, (a) if any
         Interest Period would end on a day which is not a Business Day, such
         Interest Period shall be extended to the next succeeding Business Day
         (except that where the next succeeding Business Day falls in the next
         succeeding calendar month, then such Interest Period shall end on the
         next preceding Business Day), (b) no Interest Period shall extend
         beyond the Maturity Date and (c) with respect to Eurodollar Loans,
         where an Interest Period begins on a day for which there is no
         numerically corresponding

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         day in the calendar month in which the Interest Period is to end, such
         Interest Period shall end on the last Business Day of such calendar
         month.

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

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

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

                  "Loans" means the Revolving Loans and the Competitive Bid
         Loans.

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

                  "Material Subsidiary" means, at any date, a Subsidiary of the
         Borrower whose aggregate assets properly included under the category
         "property, plant and equipment" on the balance sheet of such
         Subsidiary, less the amount of depreciation and amortization
         attributable thereto, constitutes at least 10% of Consolidated Net
         Property as of such date; provided that if at any time the Borrower has
         Subsidiaries that are not Material Subsidiaries whose total aggregate
         assets under the category "property, plant and equipment" on the
         balance sheet of such Subsidiaries, less the amount of depreciation and
         amortization attributable thereto, constitutes more than 20% of
         Consolidated Net Property as of such date the Borrower shall designate
         one or more of such Subsidiaries as Material Subsidiaries for the
         purposes of this Credit Agreement in order that all Subsidiaries of the
         Borrower, other than Material Subsidiaries, own not more than 20% of
         Consolidated Net Property.

                  "Maturity Date" means July 30, 2003.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                  "Notes" means the Revolving Loan Notes and the Competitive Bid
         Loan Notes.

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

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

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

                                       10
<PAGE>

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

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

                  "Preferred Securities" means, at any date, any equity
         interests in the Borrower, in a Special Purpose Financing Subsidiary of
         the Borrower or in any other Subsidiary of the Borrower (such as those
         known as "TECONS", "MIPS" or "RHINOS"): (a) that are not (i) required
         to be redeemed or redeemable at the option of the holder thereof prior
         to the fifth anniversary of the Maturity Date or (ii) convertible into
         or exchangeable for (unless solely at the option of the Borrower or
         such Subsidiary of the Borrower) equity interests referred to in clause
         (i) above or indebtedness having a scheduled maturity, or requiring any
         repayments or prepayments of principal or any sinking fund or similar
         payments in respect of principal or providing for any such repayment,
         prepayment, sinking fund or other payment at the option of the holder
         thereof prior to the fifth anniversary of the Maturity Date and (b) as
         to which, at such date, the Borrower or such Subsidiary of the Borrower
         has the right to defer the payment of all dividends and other
         distributions in respect thereof for the period of at least 19
         consecutive quarters beginning at such date.

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

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

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

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

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

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

                                       11
<PAGE>

         any time after the termination of the Commitments, the sum of the
         principal balance of the outstanding Revolving Loans of such Lender.

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

                  "Revolving Loan Commitment" means three hundred million
         Dollars ($300,000,000) as such amount may be otherwise reduced in
         accordance with Section 2.6.

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

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

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

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

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

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

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

                  "Termination Event" means (a) with respect to any Single
         Employer Plan, the occurrence of a Reportable Event or the substantial
         cessation of operations (within the meaning of Section 4062(e) of
         ERISA), (b) the withdrawal of the Borrower or any ERISA Affiliate from
         a Multiple Employer Plan during a plan year in which it was a
         substantial employer (as such term is defined in Section 4001(a)(2) of
         ERISA), or the termination of a Multiple Employer Plan, (c) the
         distribution of a notice of intent to terminate or the actual
         termination of a Plan pursuant to Section 4041(a)(2) or 4041A of ERISA,
         (d) the institution of proceedings to terminate or the actual
         termination of a Plan

                                       12
<PAGE>

         by the PBGC under Section 4042 of ERISA, (e) any event or condition
         which might reasonably constitute grounds under Section 4042 of ERISA
         for the termination of, or the appointment of a trustee to administer,
         any Plan, or (f) the complete or partial withdrawal of the Borrower or
         any ERISA Affiliate from a Multiemployer Plan.

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

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

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

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

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

                  "Utilized Revolving Commitment" means, for any day that the
         Utilization Fees are required to be paid pursuant to Section 3.4(b),
         the amount equal to the principal amount of Loans outstanding on such
         day.

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

         1.2      COMPUTATION OF TIME PERIODS.

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

         1.3      ACCOUNTING TERMS.

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

                                       13
<PAGE>

financial statements delivered pursuant to Section 7.1 (or, prior to the
delivery of the first financial statements pursuant to Section 7.1, consistent
with the financial statements described in Section 5.1(d)); provided, however,
if (a) the Borrower shall object to determining such compliance on such basis at
the time of delivery of such financial statements due to any change in GAAP or
the rules promulgated with respect thereto or (b) the Administrative Agent or
the Required Lenders shall so object in writing within 30 days after delivery of
such financial statements, then such calculations shall be made on a basis
consistent with the most recent financial statements delivered by the Borrower
to the Lenders as to which no such objection shall have been made.

         1.4      TIME.

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

                                   SECTION 2.

                                      LOANS

         2.1      REVOLVING LOAN COMMITMENT.

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

                  (b)      Competitive Bid Loans Subfacility.

                           (i) Competitive Bid Loans. Subject to the terms and
                  conditions set forth herein, the Borrower may, from time to
                  time, during the period from the Effective Date to the
                  Maturity Date, request, in Dollars, and each Lender may, in
                  its sole discretion, agree to make Competitive Bid Loans to
                  the Borrower; provided, however, that (A) the sum of the
                  aggregate amount of Revolving Loans outstanding plus the
                  aggregate amount of Competitive Bid Loans outstanding shall
                  not exceed the Revolving Loan Commitment and (B) if a Lender
                  does make a Competitive Bid Loan it shall not reduce such
                  Lender's obligation to make its pro rata share of any
                  Revolving Loan.

                           (ii) Competitive Bid Requests. The Borrower may
                  solicit Competitive Bids by delivery of a Competitive Bid
                  Request to the Administrative Agent by 10:00 a.m. on a
                  Business Day not less than one nor more than five Business
                  Days prior to the date of the requested Competitive Bid Loan.
                  A Competitive Bid

                                       14
<PAGE>

                  Request must be substantially in the form of Exhibit 2.1(b)
                  and shall specify (A) the date of the requested Competitive
                  Bid Loan (which shall be a Business Day), (B) the amount of
                  the requested Competitive Bid Loan and (C) the applicable
                  Interest Period or Interest Periods requested and must be
                  accompanied by the Competitive Bid Fee. The Administrative
                  Agent shall notify the Lenders of its receipt of a Competitive
                  Bid Request and the contents thereof and invite the Lenders to
                  submit Competitive Bids in response thereto. The Borrower may
                  not request a Competitive Bid for more than three different
                  Interest Periods per Competitive Bid Request and Competitive
                  Bid Requests may be made no more frequently than four times
                  every calendar month.

                           (iii) Competitive Bid Procedure. Each Lender may, in
                  its sole discretion, make one or more Competitive Bids to the
                  Borrower in response to a Competitive Bid Request. Each
                  Competitive Bid must be received by the Administrative Agent
                  not later than 10:00 a.m. on the proposed date of the
                  requested Competitive Bid Loan; provided, however, that should
                  the Administrative Agent, in its capacity as a Lender, desire
                  to submit a Competitive Bid it shall notify the Borrower of
                  its Competitive Bid and the terms thereof not later than 15
                  minutes prior to the time the other Lenders are required to
                  submit their Competitive Bid. A Lender may offer to make all
                  or part of the requested Competitive Bid Loan and may submit
                  multiple Competitive Bids in response to a Competitive Bid
                  Request. Any Competitive Bid must specify (A) the particular
                  Competitive Bid Request as to which the Competitive Bid is
                  submitted, (B) the minimum (which shall be not less than
                  $5,000,000 and integral multiples of $1,000,000 in excess
                  thereof) and maximum principal amounts of the requested
                  Competitive Bid Loan or Loans that the Lender is willing to
                  make and (C) the applicable interest rate or rates and
                  Interest Period or Interest Periods therefor. A Competitive
                  Bid submitted by a Lender in accordance with the provisions
                  hereof shall be irrevocable. The Administrative Agent shall
                  promptly notify the Borrower of all Competitive Bids made and
                  the terms thereof.

                           (iv) Acceptance of Competitive Bids. The Borrower
                  may, in its sole discretion, subject only to the provisions of
                  this subsection (iv), accept or refuse any Competitive Bid
                  offered to it. To accept a Competitive Bid, the Borrower shall
                  give oral notification of its acceptance of any or all such
                  Competitive Bids (which shall be promptly confirmed in
                  writing) to the Administrative Agent by 11:00 a.m. on the
                  proposed date of the Competitive Bid Loan; provided, however,
                  (A) the failure by the Borrower to give timely notice of its
                  acceptance of a Competitive Bid shall be deemed to be a
                  refusal thereof, (B) to the extent Competitive Bids are for
                  comparable Interest Periods, the Borrower may accept
                  Competitive Bids only in ascending order of rates, (C) the
                  aggregate amount of Competitive Bids accepted by the Borrower
                  shall not exceed the principal amount specified in the
                  Competitive Bid Request, (D) if the Borrower shall accept a
                  bid or bids made at a particular Competitive Bid Rate, but the
                  amount of such bid or bids shall cause the total amount of
                  bids to be accepted by the Borrower to be in excess of the
                  amount specified in the Competitive Bid Request, then the
                  Borrower shall accept a portion of such bid or bids in an
                  amount equal to the amount

                                       15
<PAGE>

                  specified in the Competitive Bid Request less the amount of
                  all other Competitive Bids accepted with respect to such
                  Competitive Bid Request, which acceptance in the case of
                  multiple bids at such Competitive Bid Rate, shall be made pro
                  rata in accordance with the amount of each such bid at such
                  Competitive Bid Rate and (E) no bid shall be accepted for a
                  Competitive Bid Loan unless such Competitive Bid Loan is in a
                  minimum principal amount of $5,000,000 and integral multiples
                  of $1,000,000 in excess thereof, except that where a portion
                  of a Competitive Bid is accepted in accordance with the
                  provisions of clause (D) of this subsection (iv), then in a
                  minimum principal amount of $500,000 and integral multiples of
                  $100,000 (but not in any event less than the minimum amount
                  specified in the Competitive Bid), and in calculating the pro
                  rata allocation of acceptances of portions of multiple bids at
                  a particular Competitive Bid Rate pursuant to clause (D) of
                  this subsection (iv), the amounts shall be rounded to integral
                  multiples of $100,000 in a manner which shall be in the
                  discretion of the Borrower. A notice of acceptance of a
                  Competitive Bid given by the Borrower in accordance with the
                  provisions hereof shall be irrevocable. The Administrative
                  Agent shall, not later than noon on the proposed date of such
                  Competitive Bid Loan, notify each bidding Lender whether or
                  not its Competitive Bid has been accepted (and, if so, in what
                  amount and at what Competitive Bid Rate), and each successful
                  bidder will thereupon become bound, subject to the other
                  applicable conditions hereof, to make the Competitive Bid Loan
                  in respect of which its bid has been accepted. The
                  Administrative Agent shall send a copy of each of the
                  Competitive Bids to the Borrower and each of the Lenders for
                  its records as soon as practicable.

                           (v) Funding of Competitive Bid Loans. Each Lender
                  which is to make a Competitive Bid Loan shall make its
                  Competitive Bid Loan available to the Administrative Agent by
                  2:00 p.m. on the date specified in the Competitive Bid Request
                  by deposit of immediately available funds at the Agency
                  Services Address. The Administrative Agent will, upon receipt,
                  make the proceeds of such Competitive Bid Loans available to
                  the Borrower.

                           (vi) Maturity of Competitive Bid Loans. Each
                  Competitive Bid Loan shall mature and be due and payable in
                  full on the last day of the Interest Period applicable
                  thereto. Unless the Borrower shall give notice to the
                  Administrative Agent otherwise (or repays such Competitive Bid
                  Loan), or a Default or Event of Default exists and is
                  continuing, the Borrower shall be deemed to have requested
                  Revolving Loans from all of the Lenders (in the amount of the
                  maturing Competitive Bid Loan and accruing interest at the
                  Base Rate), the proceeds of which will be used to repay such
                  Competitive Bid Loan.

         2.2      METHOD OF BORROWING FOR REVOLVING LOANS.

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

                                       16
<PAGE>

to the Administrative Agent setting forth (i) the amount requested, (ii) whether
such Loans shall accrue interest at the Base Rate or the Adjusted Eurodollar
Rate, (iii) with respect to Loans that will be Eurodollar Loans, the Interest
Period applicable thereto and (iv) certification that the Borrower has complied
in all respects with Section 5.2.

        2.3      FUNDING OF REVOLVING LOANS.

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

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

        2.4      CONTINUATIONS AND CONVERSIONS.

        The Borrower shall have the option, on any Business Day, to continue
existing Eurodollar Loans for a subsequent Interest Period, to convert Base Rate
Loans into Eurodollar Loans or to convert Eurodollar Loans into Base Rate Loans;
provided, however, that (a) each such continuation or conversion must be
requested by the Borrower pursuant to a written Notice of Continuation/
Conversion, in the form of Exhibit 2.4, in compliance with the terms set forth
below, (b) except as provided in Section 4.1, Eurodollar Loans may only be
continued or converted into Base Rate Loans on the last day of the Interest
Period applicable thereto,

                                       17
<PAGE>

(c) Eurodollar Loans may not be continued nor may Base Rate Loans be converted
into Eurodollar Loans during the existence and continuation of a Default or
Event of Default and (d) any request to extend a Eurodollar Loan that fails to
comply with the terms hereof or any failure to request an extension of a
Eurodollar Loan at the end of an Interest Period shall constitute a conversion
to a Base Rate Loan on the last day of the applicable Interest Period. Each
continuation or conversion must be requested by the Borrower no later than 11:00
a.m. (i) on the date for a requested conversion of a Eurodollar Loan to a Base
Rate Loan or (ii) three Business Days prior to the date for a requested
continuation of a Eurodollar Loan or conversion of a Base Rate Loan to a
Eurodollar Loan, in each case pursuant to a written Notice of Continuation/
Conversion submitted to the Administrative Agent which shall set forth (A)
whether the Borrower wishes to continue or convert such Loans and (B) if the
request is to continue a Eurodollar Loan or convert a Base Rate Loan to a
Eurodollar Loan, the Interest Period applicable thereto.

         2.5      MINIMUM AMOUNTS.

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

         2.6      REDUCTIONS OF REVOLVING LOAN COMMITMENT.

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

         2.7      NOTES.

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

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

                                       18
<PAGE>

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

                                   SECTION 3.

                                    PAYMENTS

         3.1      INTEREST.

                  (a)      Interest Rate.

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

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

                           (iii) All Competitive Bid Loans shall accrue interest
                  at the applicable Competitive Bid Rate with respect to each
                  Competitive Bid Loan.

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

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

         3.2      PREPAYMENTS.

                  (a) Voluntary Prepayments. The Borrower shall have the right
         to prepay Loans in whole or in part from time to time without premium
         or penalty; provided, however, that (i) Eurodollar Loans may only be
         prepaid on three Business Days' prior written notice to the
         Administrative Agent and any prepayment of Eurodollar Loans will be
         subject to Section 4.3; (ii) each such partial prepayment of Loans
         shall be in the minimum principal amount of $5,000,000 and in integral
         multiples of $1,000,000 above such amount; and (iii) Competitive Bid
         Loans may not be prepaid unless a breakage fee equal to the actual
         amount of damages suffered by the Lender whose Competitive Bid Loan is
         prepaid is paid to such Lender. Amounts prepaid hereunder shall be
         applied as

                                       19
<PAGE>

         the Borrower may elect; provided that if the Borrower fails to specify
         the application of a voluntary prepayment then such prepayment shall be
         applied first to Base Rate Loans, then to Eurodollar Loans in direct
         order of Interest Period maturities, and then to Competitive Bid Loans
         pro rata among all Lenders holding same.

                  (b) Mandatory Prepayments. If at any time the amount of
         Revolving Loans outstanding plus the amount of Competitive Bid Loans
         outstanding exceeds the Revolving Loan Commitment, the Borrower shall
         immediately make a principal payment to the Administrative Agent in the
         manner and in an amount such that the amount of Revolving Loans
         outstanding plus the amount of Competitive Bid Loans outstanding is
         less than or equal to the Revolving Loan Commitment. Any payments made
         under this Section 3.2(b) shall be subject to Section 4.3 and shall be
         applied first to Base Rate Loans, then to Eurodollar Loans in direct
         order of Interest Period maturities and then to Competitive Bid Loans
         pro rata among all Lenders holding same.

         3.3      PAYMENT IN FULL AT MATURITY.

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

         3.4      FEES.

                  (a)      Unused Fees.

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

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

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

                                       20
<PAGE>

                  (c) Administrative Fees. The Borrower agrees to pay to the
         Administrative Agent, for its own account, an annual fee as agreed to
         between the Borrower and the Administrative Agent in the Fee Letter.

         3.5      PLACE AND MANNER OF PAYMENTS.

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

         3.6      PRO RATA TREATMENT.

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

         3.7      COMPUTATIONS OF INTEREST AND FEES.

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

                                       21
<PAGE>

         Loan is made until the date such Loan is repaid or continued or
         converted pursuant to Section 2.4.

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

         3.8      SHARING OF PAYMENTS.

         Each Lender agrees that, in the event that any Lender shall obtain
payment in respect of any Loan or any other obligation owing to such Lender
under this Credit Agreement through the exercise of a right of set-off, banker's
lien, counterclaim or otherwise (including, but not limited to, pursuant to the
Bankruptcy Code) in excess of its pro rata share as provided for in this Credit
Agreement, such Lender shall promptly purchase from the other Lenders a
participation in such Loans and other obligations, in such amounts and with such
other adjustments from time to time, as shall be equitable in order that all
Lenders share such payment in accordance with their respective ratable shares as
provided for in this Credit Agreement. Each Lender further agrees that if a
payment to a Lender (which is obtained by such Lender through the exercise of a
right of set-off, banker's lien, counterclaim or otherwise) shall be rescinded
or must otherwise be restored, each Lender which shall have shared the benefit
of such payment shall, by repurchase

                                       22
<PAGE>

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

         3.9      EVIDENCE OF DEBT.

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

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

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

                                       23
<PAGE>

                                   SECTION 4.

                      ADDITIONAL PROVISIONS REGARDING LOANS

         4.1      EURODOLLAR LOAN PROVISIONS.

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

                  (b)      Change in Legality.

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

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

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

                  In the event any Lender shall exercise its rights under clause
         (A) or (B) above, all payments and prepayments of principal which would
         otherwise have been applied to

                                       24
<PAGE>

         repay the Eurodollar Loans that would have been made by such Lender or
         the converted Eurodollar Loans of such Lender shall instead be applied
         to repay the Base Rate Loans made by such Lender in lieu of, or
         resulting from the conversion of, such Eurodollar Loans.

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

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

         4.2      CAPITAL ADEQUACY.

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

                                       25
<PAGE>

determination by any such Lender of amounts owing under this Section 4.2 shall,
absent manifest error, be conclusive and binding on the parties hereto. This
Section 4.2 shall survive termination of this Credit Agreement and the other
Credit Documents and the payment of the Loans and all other amounts payable
hereunder.

         4.3      COMPENSATION.

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

         4.4      TAXES.

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

                                       26
<PAGE>

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

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

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

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

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

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

                                       27
<PAGE>

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

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

                                   SECTION 5.

                              CONDITIONS PRECEDENT

         5.1      CLOSING CONDITIONS.

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

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

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

                                       28
<PAGE>

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

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

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

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

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

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

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

                  (e) Fees and Expenses. Payment by the Borrower of all fees and
         expenses owed by it to the Lenders and the Administrative Agent,
         including, without limitation, payment to the Administrative Agent of
         the fees set forth in the Fee Letter.

                  (f) Material Adverse Effect. No event or condition shall have
         occurred since March 31, 2002 that has had or would be reasonably
         expected to have a Material Adverse Effect.

                                       29
<PAGE>

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

                  (h) Payment of Existing Debt. Receipt by the Administrative
         Agent of evidence that the Existing Revolving Credit Agreement has been
         terminated and all amounts owing to the Lenders thereunder have been
         paid in full.

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

         5.2      CONDITIONS TO LOANS.

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

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

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

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

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

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

                                       30
<PAGE>

                                   SECTION 6.

                         REPRESENTATIONS AND WARRANTIES

         The Borrower hereby represents and warrants to each Lender that:

         6.1      ORGANIZATION AND GOOD STANDING.

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

         6.2      DUE AUTHORIZATION.

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

         6.3      NO CONFLICTS.

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

         6.4      CONSENTS.

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

         6.5      ENFORCEABLE OBLIGATIONS.

         This Credit Agreement and the other Credit Documents have been duly
executed and delivered and constitute legal, valid and binding obligations of
the Borrower enforceable against

                                       31
<PAGE>

the Borrower in accordance with their respective terms, except as may be limited
by bankruptcy or insolvency laws or similar laws affecting creditors' rights
generally or by general equitable principles.

         6.6      FINANCIAL CONDITION.

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

                  (b) Other than the MVG Acquisition, since March 31, 2002,
         there has been no sale, transfer or other disposition by the Borrower
         of any material part of the business or property of the Borrower, and
         no purchase or other acquisition by the Borrower of any business or
         property (including any Capital Stock of any other Person) material in
         relation to the financial condition of the Borrower, in each case which
         is not (i) reflected in the most recent financial statements delivered
         to the Lenders pursuant to Section 5.1(d) or 7.1 or in the notes
         thereto or (ii) otherwise permitted by the terms of this Credit
         Agreement and communicated to the Administrative Agent.

         6.7      NO MATERIAL CHANGE.

         Since March 31, 2002, there has been no development or event relating
to or affecting the Borrower or any of its Subsidiaries that has had or would be
reasonably expected to have a Material Adverse Effect, it being understood that
the consummation of the MVG Acquisition, in and of itself, does not constitute a
Material Adverse Effect.

         6.8      NO DEFAULT.

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

         6.9      LITIGATION.

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

         6.10     TAXES.

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

                                       32
<PAGE>

         6.11     COMPLIANCE WITH LAW.

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

         6.12     MATERIAL AGREEMENTS.

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

         6.13     ERISA.

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

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

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

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

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

                                       33
<PAGE>

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

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

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

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

         6.14     USE OF PROCEEDS.

         The proceeds of the Loans hereunder will be used solely for the
purposes specified in Section 7.8. None of such proceeds will be used for the
acquisition of another Person unless the board of directors (or other comparable
governing body) or stockholders, as appropriate, of such Person has approved
such acquisition.

         6.15     GOVERNMENT REGULATION.

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

                                       34
<PAGE>

                  (b) Neither the Borrower nor any of its Subsidiaries is (i) an
         "investment company" registered or required to be registered under the
         Investment Company Act of 1940, as amended, and is not controlled by an
         "investment company", or (ii) a "holding company", or a "subsidiary
         company" of a "holding company", or an "affiliate" of a "holding
         company" or of a "subsidiary" of a "holding company", within the
         meaning of the Public Utility Holding Company Act of 1935, as amended.

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

         6.16     DISCLOSURE.

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

         6.17     ENVIRONMENTAL MATTERS.

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

         6.18     INSURANCE.

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

         6.19     FRANCHISES, LICENSES, ETC.

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

                                       35
<PAGE>

         6.20     SECURED INDEBTEDNESS.

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

         6.21     SUBSIDIARIES.

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

                                   SECTION 7.

                              AFFIRMATIVE COVENANTS

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

         7.1      INFORMATION COVENANTS.

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

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

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

                                       36
<PAGE>

         of the Borrower and have been prepared in accordance with GAAP, subject
         to changes resulting from audit and normal year-end audit adjustments.

                  (c) Officer's Certificate. At the time of delivery of the
         financial statements provided for in Sections 7.1(a) and 7.1(b) above,
         a certificate of a Financial Officer of the Borrower, substantially in
         the form of Exhibit 7.1(c), (i) demonstrating compliance with Section
         7.2 by calculation thereof as of the end of each such fiscal period and
         (ii) stating that no Default or Event of Default exists, or if any
         Default or Event of Default does exist, specifying the nature and
         extent thereof and what action the Borrower proposes to take with
         respect thereto.

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

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

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

                                       37
<PAGE>

         Effect; together, with a description of any such event or condition or
         a copy of any such notice and a statement by a officer of the Borrower
         briefly setting forth the details regarding such event, condition, or
         notice, and the action, if any, which has been or is being taken or is
         proposed to be taken by the Borrower with respect thereto. Promptly
         upon request, the Borrower shall furnish the Administrative Agent and
         each of the Lenders with such additional information concerning any
         Plan as may be reasonably requested, including, but not limited to,
         copies of each annual report/return (Form 5500 series), as well as all
         schedules and attachments thereto required to be filed with the
         Department of Labor and/or the Internal Revenue Service pursuant to
         ERISA and the Code, respectively, for each "plan year" (within the
         meaning of Section 3(39) of ERISA).

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

         7.2      DEBT TO CAPITALIZATION RATIO.

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

         7.3      PRESERVATION OF EXISTENCE, FRANCHISES AND ASSETS.

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

         7.4      BOOKS AND RECORDS.

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

         7.5      COMPLIANCE WITH LAW.

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

         7.6      PAYMENT OF TAXES AND OTHER INDEBTEDNESS.

         The Borrower will, and will cause its Subsidiaries to, pay, settle or
discharge (a) all taxes, assessments and governmental charges or levies imposed
upon it, or upon its income or profits,

                                       38
<PAGE>

or upon any of its properties, before they shall become delinquent, (b) all
lawful claims (including claims for labor, materials and supplies) which, if
unpaid, might give rise to a Lien upon any of its properties, and (c) all of its
other indebtedness as it shall become due (to the extent such repayment is not
otherwise prohibited by this Credit Agreement); provided, however, that the
Borrower shall not be required to pay any such tax, assessment, charge, levy,
claim or indebtedness which is being contested in good faith by appropriate
action and as to which adequate reserves therefor, if required, have been
established in accordance with GAAP, unless the failure to make any such payment
(i) would give rise to an immediate right to foreclose or collect on a Lien
securing such amounts or (ii) would have or would reasonably be expected to have
a Material Adverse Effect.

         7.7      INSURANCE.

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

         7.8      USE OF PROCEEDS.

         The proceeds of the Loans may be used solely (a) to refinance the
indebtedness under the Existing Revolving Credit Agreement and (b) for working
capital, capital expenditures and other lawful corporate purposes of the
Borrower.

         7.9      AUDITS/INSPECTIONS.

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

                                   SECTION 8.

                               NEGATIVE COVENANTS

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

                                       39
<PAGE>

         8.1      NATURE OF BUSINESS.

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

         8.2      CONSOLIDATION AND MERGER.

         The Borrower will not (a) enter into any transaction of merger, other
than the closing of the MVG Acquisition, or (b) consolidate, liquidate, wind up
or dissolve itself (or suffer any liquidation or dissolution); provided that, so
long as no Default or Event of Default shall exist or be caused thereby, a
Person may be merged or consolidated with or into the Borrower so long as the
Borrower shall be the continuing or surviving corporation.

         8.3      SALE OR LEASE OF ASSETS.

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

         8.4      ARM'S-LENGTH TRANSACTIONS.

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

         8.5      FISCAL YEAR; ORGANIZATIONAL DOCUMENTS.

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

         8.6      LIENS.

         The Borrower will not, nor will it permit any of its Material
Subsidiaries to, contract, create, incur, assume or permit to exist any Lien
with respect to any of its property or assets of any kind (whether real or
personal, tangible or intangible), whether now owned or after acquired, except
for the following: (a) Liens securing Borrower Obligations, (b) Liens for taxes
not yet due or Liens for taxes being contested in good faith by appropriate
action and for which adequate reserves, if required, determined in accordance
with GAAP have been established (and as to which the property subject to any
such Lien is not yet subject to foreclosure, sale or loss on account thereof),
(c) Liens in respect of property imposed by law arising in the ordinary course
of business such as materialmen's, mechanics', warehousemen's, carrier's,
landlords' and other nonconsensual statutory Liens which are not yet due and
payable, which have been in existence

                                       40
<PAGE>

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

                                       41
<PAGE>

                                   SECTION 9.

                                EVENTS OF DEFAULT

         9.1      EVENTS OF DEFAULT.

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

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

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

                  (c)      Covenants.  The Borrower shall:

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

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

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

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

                                       42
<PAGE>

                  (e) Bankruptcy, etc. The occurrence of any of the following
         with respect to the Borrower or any of its Material Subsidiaries: (i) a
         court or governmental agency having jurisdiction in the premises shall
         enter a decree or order for relief in respect of the Borrower or any of
         its Material Subsidiaries in an involuntary case under any applicable
         bankruptcy, insolvency or other similar law now or hereafter in effect,
         or appoint a receiver, liquidator, assignee, custodian, trustee,
         sequestrator or similar official of the Borrower or any of its Material
         Subsidiaries or for any substantial part of its property or order the
         winding up or liquidation of its affairs; or (ii) an involuntary case
         under any applicable bankruptcy, insolvency or other similar law now or
         hereafter in effect is commenced against the Borrower or any of its
         Material Subsidiaries and such petition remains unstayed and in effect
         for a period of 60 consecutive days; or (iii) the Borrower or any of
         its Material Subsidiaries shall commence a voluntary case under any
         applicable bankruptcy, insolvency or other similar law now or hereafter
         in effect, or consent to the entry of an order for relief in an
         involuntary case under any such law, or consent to the appointment or
         taking possession by a receiver, liquidator, assignee, custodian,
         trustee, sequestrator or similar official of such Person or any
         substantial part of its property or make any general assignment for the
         benefit of creditors; or (iv) the Borrower or any of its Material
         Subsidiaries shall admit in writing its inability to pay its debts
         generally as they become due or any action shall be taken by such
         Person in furtherance of any of the aforesaid purposes.

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

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

                                       43
<PAGE>

                  (h) ERISA. The occurrence of any of the following events or
         conditions if any of the same would be reasonably expected to result in
         a liability of an amount greater than or equal to $20,000,000: (A) any
         "accumulated funding deficiency," as such term is defined in Section
         302 of ERISA and Section 412 of the Code, whether or not waived, shall
         exist with respect to any Plan, or any lien shall arise on the assets
         of the Borrower or any ERISA Affiliate in favor of the PBGC or a Plan;
         (B) a Termination Event shall occur with respect to a Single Employer
         Plan, which is, in the reasonable opinion of the Administrative Agent,
         likely to result in the termination of such Plan for purposes of Title
         IV of ERISA; (C) a Termination Event shall occur with respect to a
         Multiemployer Plan or Multiple Employer Plan, which is, in the
         reasonable opinion of the Administrative Agent, likely to result in (i)
         the termination of such Plan for purposes of Title IV of ERISA, or (ii)
         the Borrower or any ERISA Affiliate incurring any liability in
         connection with a withdrawal from, reorganization of (within the
         meaning of Section 4241 of ERISA), or insolvency (within the meaning of
         Section 4245 of ERISA) of such Plan; or (D) any prohibited transaction
         (within the meaning of Section 406 of ERISA or Section 4975 of the
         Code) or breach of fiduciary responsibility shall occur which would be
         reasonably expected to subject the Borrower or any ERISA Affiliate to
         any liability under Sections 406, 409, 502(i), or 502(l) of ERISA or
         Section 4975 of the Code, or under any agreement or other instrument
         pursuant to which the Borrower or any ERISA Affiliate has agreed or is
         required to indemnify any person against any such liability.

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

         9.2      ACCELERATION; REMEDIES.

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

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

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

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

Notwithstanding the foregoing, if an Event of Default specified in Section
9.1(e) shall occur, then the Commitments shall automatically terminate and all
Loans, all accrued interest in respect thereof, all accrued and unpaid fees and
other indebtedness or obligations owing to the Lenders

                                       44
<PAGE>

and the Administrative Agent hereunder shall immediately become due and payable
without the giving of any notice or other action by the Administrative Agent or
the Lenders.

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

         9.3      ALLOCATION OF PAYMENTS AFTER EVENT OF DEFAULT.

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

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

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

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

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

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

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

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

                                       45
<PAGE>

                                   SECTION 10.

                                AGENCY PROVISIONS

         10.1     APPOINTMENT.

         Each Lender hereby designates and appoints Bank One, NA as agent of
such Lender to act as specified herein and the other Credit Documents, and each
such Lender hereby authorizes the Administrative Agent, as the agent for such
Lender, to take such action on its behalf under the provisions of this Credit
Agreement and the other Credit Documents and to exercise such powers and perform
such duties as are expressly delegated by the terms hereof and of the other
Credit Documents, together with such other powers as are reasonably incidental
thereto. Notwithstanding any provision to the contrary elsewhere herein and in
the other Credit Documents, the Administrative Agent shall not have any duties
or responsibilities, except those expressly set forth herein and therein, or any
fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Credit Agreement or any of the other Credit Documents, or shall otherwise exist
against the Administrative Agent. The provisions of this Section 10.1 are solely
for the benefit of the Administrative Agent and the Lenders and the Borrower
shall not have any rights as a third party beneficiary of the provisions hereof.
In performing its functions and duties under this Credit Agreement and the other
Credit Documents, the Administrative Agent shall act solely as agent of the
Lenders and does not assume and shall not be deemed to have assumed any
obligation or relationship of agency or trust with or for the Borrower. Any
agent named herein (other than the Administrative Agent) shall have no duties or
obligations whatsoever under this Credit Agreement or the other Credit
Documents.

         10.2     DELEGATION OF DUTIES.

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

         10.3     EXCULPATORY PROVISIONS.

         Neither the Administrative Agent nor any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates shall be liable to any Lender
for any action lawfully taken or omitted to be taken by it or such Person under
or in connection herewith or in connection with any of the other Credit
Documents (except for its or such Person's own gross negligence or willful
misconduct), or responsible in any manner to any of the Lenders for any
recitals, statements, representations or warranties made by the Borrower
contained herein or in any of the other Credit Documents or in any certificate,
report, statement or other document referred to or provided for in, or received
by the Administrative Agent under or in connection herewith or in connection
with the other Credit Documents, or enforceability or sufficiency therefor of
any of the other Credit Documents, or for any failure of the Borrower to perform
its obligations hereunder or thereunder. The Administrative Agent shall not be
responsible to any Lender for

                                       46
<PAGE>

the effectiveness, genuineness, validity, enforceability, collectibility or
sufficiency of this Credit Agreement, or any of the other Credit Documents or
for any representations, warranties, recitals or statements made herein or
therein or made by the Borrower in any written or oral statement or in any
financial or other statements, instruments, reports, certificates or any other
documents in connection herewith or therewith furnished or made by the
Administrative Agent to the Lenders or by or on behalf of the Borrower to the
Administrative Agent or any Lender or be required to ascertain or inquire as to
the performance or observance of any of the terms, conditions, provisions,
covenants or agreements contained herein or therein or as to the use of the
proceeds of the Loans or of the existence or possible existence of any Default
or Event of Default or to inspect the properties, books or records of the
Borrower. The Administrative Agent is not a trustee for the Lenders and owes no
fiduciary duty to the Lenders.

         10.4     RELIANCE ON COMMUNICATIONS.

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

         10.5     NOTICE OF DEFAULT.

         The Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default hereunder unless the
Administrative Agent has received notice from a Lender or the Borrower referring
to the Credit Document, describing such Default or Event of Default and stating
that such notice is a "notice of default." In the event that the Administrative
Agent receives such a notice, the Administrative Agent shall give prompt notice
thereof to the Lenders. The Administrative Agent shall take such action with
respect to such Default or Event of Default as shall be reasonably directed by
the Required Lenders.

                                       47
<PAGE>

         10.6     NON-RELIANCE ON ADMINISTRATIVE AGENT AND OTHER LENDERS.

         Each Lender expressly acknowledges that neither the Administrative
Agent nor any of its officers, directors, employees, agents, attorneys-in-fact
or affiliates has made any representations or warranties to it and that no act
by the Administrative Agent or any affiliate thereof hereinafter taken,
including any review of the affairs of the Borrower, shall be deemed to
constitute any representation or warranty by the Administrative Agent to any
Lender. Each Lender represents to the Administrative Agent that it has,
independently and without reliance upon the Administrative Agent or any other
Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
assets, operations, property, financial and other conditions, prospects and
creditworthiness of the Borrower and made its own decision to make its
Extensions of Credit hereunder and enter into this Credit Agreement. Each Lender
also represents that it will, independently and without reliance upon the
Administrative Agent or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Credit Agreement, and to make such investigation as it deems necessary to
inform itself as to the business, assets, operations, property, financial and
other conditions, prospects and creditworthiness of the Borrower. Except for
notices, reports and other documents expressly required to be furnished to the
Lenders by the Administrative Agent hereunder, the Administrative Agent shall
not have any duty or responsibility to provide any Lender with any credit or
other information concerning the business, operations, assets, property,
financial or other conditions, prospects or creditworthiness of the Borrower
which may come into the possession of the Administrative Agent or any of its
officers, directors, employees, agents, attorneys-in-fact or Affiliates.

         10.7     INDEMNIFICATION.

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

                                       48
<PAGE>

         10.8     ADMINISTRATIVE AGENT IN ITS INDIVIDUAL CAPACITY.

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

         10.9     SUCCESSOR AGENT.

         The Administrative Agent may, at any time, resign upon 20 days written
notice to the Lenders. Upon any such resignation, the Required Lenders shall
have the right to appoint a successor Administrative Agent, which successor
shall be reasonably acceptable to the Borrower; provided that the Borrower shall
have no right to approve such successor during the existence and continuation of
a Default or Event of Default. If no successor Administrative Agent shall have
been so appointed by the Required Lenders, and shall have accepted such
appointment, within 30 days after the notice of resignation, then the retiring
Administrative Agent shall select a successor Administrative Agent; provided
such successor is an Eligible Assignee (or if no Eligible Assignee shall have
been so appointed by the retiring Administrative Agent and shall have accepted
such appointment, then the Lenders shall perform all obligations of the retiring
Administrative Agent hereunder until such time, if any, as a successor
Administrative Agent shall have been appointed and shall have accepted such
appointment as provided for above). Upon the acceptance of any appointment as an
Administrative Agent hereunder by a successor, such successor Administrative
Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring
Administrative Agent shall be discharged from its duties and obligations as an
Administrative Agent, as appropriate, under this Credit Agreement and the other
Credit Documents and the provisions of this Section 10 shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was an
Administrative Agent under this Credit Agreement.

                                   SECTION 11.

                                  MISCELLANEOUS

         11.1     NOTICES.

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

                                       49
<PAGE>

         11.2     RIGHT OF SET-OFF.

         In addition to any rights now or hereafter granted under applicable law
or otherwise, and not by way of limitation of any such rights, upon the
occurrence and during the continuation of an Event of Default and the
commencement of remedies described in Section 9.2, each Lender is authorized at
any time and from time to time, without presentment, demand, protest or other
notice of any kind (all of which rights being hereby expressly waived), to
set-off and to appropriate and apply any and all deposits (general or special)
and any other indebtedness at any time held or owing by such Lender (including,
without limitation branches, agencies or Affiliates of such Lender wherever
located) to or for the credit or the account of the Borrower against obligations
and liabilities of the Borrower to the Lenders hereunder, under the Notes or the
other Credit Documents, irrespective of whether the Administrative Agent or the
Lenders shall have made any demand hereunder and although such obligations,
liabilities or claims, or any of them, may be contingent or unmatured, and any
such set-off shall be deemed to have been made immediately upon the occurrence
of an Event of Default even though such charge is made or entered on the books
of such Lender subsequent thereto. The Borrower hereby agrees that any Person
purchasing a participation in the Loans and Commitments hereunder pursuant to
Section 11.3(c) may exercise all rights of set-off with respect to its
participation interest as fully as if such Person were a Lender hereunder.

         11.3     BENEFIT OF AGREEMENT.

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

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

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

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

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

                           (iv) the parties to such assignment shall execute and
                  deliver to the Administrative Agent for its acceptance an
                  Assignment Agreement in

                                       50
<PAGE>

                  substantially the form of Exhibit 11.3(b), together with a
                  processing fee from the assignor of $5,000.

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

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

                                       51
<PAGE>

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

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

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

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

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

                                       52
<PAGE>

         11.4     NO WAIVER; REMEDIES CUMULATIVE.

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

         11.5     PAYMENT OF EXPENSES, ETC.

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

         11.6     AMENDMENTS, WAIVERS AND CONSENTS.

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

                                       53
<PAGE>

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

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

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

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

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

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

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

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

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

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

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

         11.7     COUNTERPARTS/TELECOPY.

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

                                       54
<PAGE>

         11.8     HEADINGS.

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

         11.9     DEFAULTING LENDER.

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

         11.10   SURVIVAL OF INDEMNIFICATION AND REPRESENTATIONS AND WARRANTIES.

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

         11.11    GOVERNING LAW; VENUE.

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

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

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

                                       55
<PAGE>

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

         11.12    WAIVER OF JURY TRIAL.

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

         11.13    SEVERABILITY.

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

         11.14    FURTHER ASSURANCES.

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

         11.15    ENTIRETY.

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

         11.16    BINDING EFFECT; CONTINUING AGREEMENT.

                  (a) This Credit Agreement shall become effective at such time
         when all of the conditions set forth in Section 5.1 have been satisfied
         or waived by the Lenders and it shall have been executed by the
         Borrower, the Administrative Agent and the Lenders, and thereafter this
         Credit Agreement shall be binding upon and inure to the benefit of the
         Borrower, the Administrative Agent and each Lender and their respective
         successors and assigns. The Borrower and the Lenders party to the
         Existing Revolving Credit Agreement each hereby agrees that, at such
         time as this Credit Agreement shall have become effective pursuant to
         the terms of the immediately preceding sentence, the Existing Revolving
         Credit Agreement automatically shall be deemed terminated and the
         Borrowers and the Lenders party to the Existing Revolving Credit
         Agreement shall no longer have any obligations thereunder (other than
         those obligations in the Existing Revolving Credit Agreement that
         expressly survive the termination thereof).

                                       56
<PAGE>

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

                  [Remainder of Page Intentionally Left Blank]

                                       57
<PAGE>

                   Signature Page to Atmos Energy Corporation
                       364-Day Revolving Credit Agreement

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

BORROWER:                        ATMOS ENERGY CORPORATION, A Texas
                                 and Virginia corporation

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

<PAGE>

                   Signature Page to Atmos Energy Corporation
                       364-Day Revolving Credit Agreement

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

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

<PAGE>

                   Signature Page to Atmos Energy Corporation
                       364-Day Revolving Credit Agreement

                                 WACHOVIA BANK, NATIONAL ASSOCIATION

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

<PAGE>

                   Signature Page to Atmos Energy Corporation
                       364-Day Revolving Credit Agreement

                                 SUNTRUST BANK

                                 By:          /s/ LINDA LEE STANLEY
                                     ---------------------------------------
                                 Name:         Linda Lee Stanley
                                       -------------------------------------
                                 Title:             Director
                                        ------------------------------------

<PAGE>

                   Signature Page to Atmos Energy Corporation
                       364-Day Revolving Credit Agreement

                                 COBANK ACB

                                 By:         /s/  CATHLEEN  D. REED
                                     ---------------------------------------
                                 Name:          Cathleen D. Reed
                                       -------------------------------------
                                 Title:      Assistant Vice President
                                        ------------------------------------

<PAGE>

                   Signature Page to Atmos Energy Corporation
                       364-Day Revolving Credit Agreement

                                 SOCIETE GENERALE, NEW YORK BRANCH

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

<PAGE>

                   Signature Page to Atmos Energy Corporation
                       364-Day Revolving Credit Agreement

                                 KBC BANK N.V.

                                 By:        /s/  JEAN-PIERRE DIELS
                                     ---------------------------------------
                                 Name:        Jean-Pierre Diels
                                       -------------------------------------
                                 Title:      First Vice President
                                        ------------------------------------

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

<PAGE>

                   Signature Page to Atmos Energy Corporation
                       364-Day Revolving Credit Agreement

                                 THE BANK OF TOKYO-MITSUBISHI, LTD.

                                 By:           /s/  K. GLASSCOCK
                                     ---------------------------------------
                                 Name:           K. Glasscock
                                       -------------------------------------
                                 Title:          VP & Manager
                                        ------------------------------------

<PAGE>

                   Signature Page to Atmos Energy Corporation
                       364-Day Revolving Credit Agreement

                                 U.S. BANK NATIONAL ASSOCIATION

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

<PAGE>

                   Signature Page to Atmos Energy Corporation
                       364-Day Revolving Credit Agreement

                                 WELLS FARGO BANK TEXAS, N.A.

                                 By:         /s/  DUSTIN S. HANSEN
                                     ---------------------------------------
                                 Name:          Dustin S. Hansen
                                       -------------------------------------
                                 Title:       Relationship Manager
                                        ------------------------------------

<PAGE>

                   Signature Page to Atmos Energy Corporation
                       364-Day Revolving Credit Agreement

                                 BANK OF AMERICA, N.A.

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

<PAGE>

                   Signature Page to Atmos Energy Corporation
                       364-Day Revolving Credit Agreement

                                 BANK HAPOALIM B.M.

                                 By:         /s/ SHAUN BREIDBART
                                     ---------------------------------------
                                 Name:         Shaun Breidbart
                                       -------------------------------------
                                 Title:         Vice President
                                        ------------------------------------

                                 By:          /s/  CONRAD WAGNER
                                       -------------------------------------
                                 Name:          Conrad Wagner
                                       -------------------------------------
                                 Title:      First Vice President
                                        ------------------------------------

<PAGE>

                   Signature Page to Atmos Energy Corporation
                       364-Day Revolving Credit Agreement

                                 HIBERNIA NATIONAL BANK

                                 By:          /s/  DONNA J. RICHARDSON
                                       -------------------------------------
                                 Name:          Donna J. Richardson
                                       -------------------------------------
                                 Title:        Relationship Manager
                                        ------------------------------------

<PAGE>

                                 SCHEDULE 1.1(A)

                             COMMITMENT PERCENTAGES

<TABLE>
<CAPTION>
                                                                   COMMITMENT
           LENDERS                            COMMITMENT           PERCENTAGE
           -------                            ----------           ----------
<S>                                          <C>                    <C>
Bank One, NA                                 $ 30,000,000             10.00%
Wachovia Bank, National Association          $ 30,000,000             10.00%
SunTrust Bank                                $ 30,000,000             10.00%
CoBank ACB                                   $ 30,000,000             10.00%
Societe Generale, New York Branch            $ 30,000,000             10.00%
KBC Bank N.V.                                $ 30,000,000             10.00%
The Bank of Tokyo-Mitsubishi Ltd.            $ 24,500,000              8.17%
U.S. Bank National Association               $ 22,000,000              7.33%
Wells Fargo Bank Texas, N.A.                 $ 22,000,000              7.33%
Bank of America, N.A.                        $ 22,000,000              7.33%
Bank Hapoalim B.M.                           $ 22,000,000              7.33%
Hibernia National Bank                       $  7,500,000              2.50%
                                             ------------           -------
TOTAL                                        $300,000,000               100%
</TABLE>

<PAGE>

                                 SCHEDULE 1.1(B)

                                PRICING SCHEDULE

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

Base Rate                            0.0%          0.0%           0.0%          0.0%         0.0%         0.25%

Unused Fee                          0.085%         0.10%         0.125%         0.15%        0.20%        0.30%

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

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

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

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

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

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

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

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

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

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

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

                               Schedule 1.1(b)-1

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

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

                               Schedule 1.1(b)-2

<PAGE>

                                  SCHEDULE 6.20

                              SECURED INDEBTEDNESS

                    SECURED INDEBTEDNESS AS OF JUNE 30, 2002

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

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

                                Schedule 6.20-1

<PAGE>

                                  SCHEDULE 6.21

                                  SUBSIDIARIES

Atmos Energy Holdings, Inc.

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

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

         Enermart Energy Services Trust

         Egasco, LLC

         Atmos Power Systems, Inc.

         United Cities Propane Gas, Inc.

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

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

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

                                Schedule 6.21-1

<PAGE>

                                  SCHEDULE 11.1

                                     NOTICES

BANK ONE, NA                                BANC ONE CAPITAL MARKETS, INC.

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

SOCIETE GENERALE, NEW YORK BRANCH           COBANK ACB

David Bird                                  Cathleen Reed
1221 Avenue of the Americas, 11th Floor     550 South Quebec Street
New York, NY 10020                          Greenwood Village, CO 80111
Tel: 212-278-7429                           Tel:  303-740-4101
E-mail: david.bird@us.socgen.com            Fax: 303-740-4002
                                            E-mail: careed@cobank.com

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

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

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

U.S. BANK NATIONAL ASSOCIATION              BANK OF AMERICA, N.A.

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

                                Schedule 11.1-1

<PAGE>

WELLS FARGO BANK TEXAS, N.A.                BANK HAPOALIM B.M.

Dustin Hansen                               Shaun Breidbart
1445 Ross Avenue, Suite 2360                1177 Avenue of the Americas
Dallas, TX 75202                            New York, NY 10036-2790
Tel: 214-661-1233                           Tel: 212-782-2186
Fax: 214-661-1242                           Fax: 212-782-2222
E-Mail: hanseds@wellsfargo.com              E-Mail: sbreidbart@hapoalimusa.com

HIBERNIA NATIONAL BANK                      WACHOVIA BANK, NATIONAL ASSOCIATION

Donna Richardson                            Reid Harden
313 Carondelet Street                       999 Peachtree Street
New Orleans, LA 70130                       Atlanta, GA  30309
Tel: 504-533-7813                           Tel: 404-332-1420
E-Mail: drichardson@hibernia.com            E-mail: reid.harden@wachovia.com

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

SUNTRUST BANK

Ryan Simmons
303 Peachtree Street, 10th Floor
Atlanta, GA  30308
Tel:  404-724-3924
Fax: 404-827-6270
E-mail: ryan.simmons@suntrust.com

                                Schedule 11.1-2

<PAGE>

                                                                  Exhibit 2.1(b)

                         FORM OF COMPETITIVE BID REQUEST

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

RE:      364-Day Credit Agreement dated as of July 31, 2002, among Atmos Energy
         Corporation (the "Borrower"), the Lenders named therein and Bank One,
         NA, as Administrative Agent for the Lenders (as the same may be
         amended, modified, extended or restated from time to time, the "Credit
         Agreement")

DATE:    ____________, 200__

________________________________________________________________________________

1.       This Competitive Bid Request is made pursuant to the terms of the
         Credit Agreement. Capitalized terms used herein and not otherwise
         defined herein shall have the meanings assigned to such terms in the
         Credit Agreement.

2.       Please be advised that the Borrower is requesting quotes for a proposed
         Competitive Bid Loan and in connection therewith sets forth below the
         terms of such proposed Competitive Bid Loan:

         (A)      Date of requested Competitive      _________________
                  Bid Loan

         (B)      Principal amount of requested
                  Competitive Bid Loan               $________________

         (C)      Interest Period(s) and the
                  last day thereof                   _________________

3.       Subsequent to the funding of the requested Competitive Bid Loan, the
         sum of the amount of Revolving Loans outstanding plus the amount of
         Competitive Bid Loans outstanding will be $______________, which is
         less than or equal to the Revolving Loan Commitment.

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

                                Exhibit 2.1(b)-1

<PAGE>

5.       As of the date on which funds are to be advanced, no Default or Event
         of Default will exist or be continuing or will be caused by the making
         of the requested Competitive Bid Loan.

                                       ATMOS ENERGY CORPORATION,
                                       a Texas and Virginia corporation

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

                                Exhibit 2.1(b)-2

<PAGE>

                                                                     Exhibit 2.2

                           FORM OF NOTICE OF BORROWING

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

RE:      364-Day Credit Agreement dated as of July 31, 2002, among Atmos Energy
         Corporation (the "Borrower"), the Lenders named therein and Bank One,
         NA, as Administrative Agent for the Lenders (as the same may be
         amended, modified, extended or restated from time to time, the "Credit
         Agreement")

DATE:    ____________, 200__
________________________________________________________________________________

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

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

         Subsequent to the funding of the requested Revolving Loans, the sum of
         the amount of Competitive Bid Loans outstanding plus the amount of
         Revolving Loans outstanding will be $__________, which is less than or
         equal to the Revolving Loan Commitment.

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

         a.    ________the Base Rate

         b.    ________the Adjusted Eurodollar Rate for an Interest Period of:

                       ________one month
                       ________two months
                       ________three months
                       ________six months

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

                                  Exhibit 2.2-1

<PAGE>

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

                                       ATMOS ENERGY CORPORATION,
                                       a Texas and Virginia corporation

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

                                  Exhibit 2.2-2

<PAGE>

                                                                     Exhibit 2.4

                    FORM OF NOTICE OF CONTINUATION/CONVERSION

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

RE: 364-Day Credit Agreement dated as of July 31, 2002 among Atmos Energy
Corporation (the "Borrower"), the Lenders named therein and Bank One, NA, as
Administrative Agent for the Lenders (as the same may be amended, modified,
extended or restated from time to time, the "Credit Agreement")

DATE:    _____________, 200___

________________________________________________________________________________

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

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

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

         a.   _______  the Base Rate

         b.   _______  the adjusted Eurodollar Rate for an Interest Period of:

                       _______ one month
                       _______ two months
                       _______ three months
                       _______ six months

                                       ATMOS ENERGY CORPORATION,
                                       a Texas and Virginia corporation

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

                                 Exhibit 2.4-1

<PAGE>

                                                                  Exhibit 2.7(a)

                                     FORM OF
                               REVOLVING LOAN NOTE

                                                             ___________, 200___

         FOR VALUE RECEIVED, ATMOS ENERGY CORPORATION, a Texas and Virginia
corporation (the "Borrower"), hereby promises to pay to the order of
______________ (the "Lender"), at the office of Bank One, NA (the
"Administrative Agent") as set forth in that certain 364-Day Credit Agreement
dated as of July 31, 2002 among the Borrower, the Lenders named therein
(including the Lender) and the Administrative Agent (as the same may be amended,
modified, extended or restated from time to time, the "Credit Agreement") (or at
such other place or places as the holder of this Revolving Loan Note may
designate), the aggregate amount of all Revolving Loans made by the Lender under
the Credit Agreement (and not otherwise repaid), in lawful money and in
immediately available funds, on the dates and in the principal amounts provided
in the Credit Agreement, and to pay interest on the unpaid principal amount of
each Revolving Loan made by the Lender, at such office, in like money and funds,
for the period commencing on the date of each Revolving Loan until each
Revolving Loan shall be paid in full, at the rates per annum and on the dates
provided in the Credit Agreement.

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

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

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

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

                                Exhibit 2.7(a)-1

<PAGE>

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

                                        ATMOS ENERGY CORPORATION,
                                        a Texas and Virginia corporation

                                        By:_________________________

                                        Name:_______________________

                                        Title:______________________

                                Exhibit 2.7(a)-2

<PAGE>

                                                                  Exhibit 2.7(b)

                                     FORM OF
                            COMPETITIVE BID LOAN NOTE

                                                             ___________, 200___

         FOR VALUE RECEIVED, ATMOS ENERGY CORPORATION, a Texas and Virginia
corporation (the "Borrower"), hereby promises to pay to the order of ___________
(the "Lender"), at the office of Bank One, NA (the "Administrative Agent") as
set forth in that certain 364-Day Credit Agreement dated as of July 31, 2002
among the Borrower, the Lenders named therein (including the Lender) and the
Administrative Agent (as the same may be amended, modified, extended or restated
from time to time, the "Credit Agreement") (or at such other place or places as
the holder of this Competitive Bid Loan Note may designate), the aggregate
amount of all advances made by the Lender as Competitive Bid Loans (and not
otherwise repaid) and in immediately available funds, on the dates and in the
principal amounts provided in the Credit Agreement, and to pay interest on the
unpaid principal amount of each Competitive Bid Loan made by the Lender, at such
office, in like money and funds, for the period commencing on the date of each
Competitive Bid Loan until each Competitive Bid Loan shall be paid in full, at
the rates per annum and on the dates provided in the Credit Agreement.

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

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

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

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

                                Exhibit 2.7(b)-1

<PAGE>

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

                                        ATMOS ENERGY CORPORATION,
                                        a Texas and Virginia corporation

                                        By:_________________________

                                        Name:_______________________

                                        Title:______________________

                                Exhibit 2.7(b)-2

<PAGE>

                                                                  Exhibit 7.1(c)

                          FORM OF OFFICER'S CERTIFICATE

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

RE:      364-Day Credit Agreement dated as of July 31, 2002 among Atmos Energy
         Corporation (the "Borrower"), the Lenders named therein and Bank One,
         N.A., as Administrative Agent for the Lenders (as the same may be
         amended, modified, extended or restated from time to time, the "Credit
         Agreement")

DATE:    ________________, 200_

________________________________________________________________________________

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

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

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

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

                                        ATMOS ENERGY CORPORATION,

                                        By:_________________________

                                        Name:_______________________

                                        Title:______________________

                                Exhibit 7.1(c)-1

<PAGE>

                       SCHEDULE I TO OFFICER'S CERTIFICATE

            COMPLIANCE WITH SECTION 7.2: DEBT TO CAPITALIZATION RATIO

1.   Consolidated Funded Debt                                       $__________

2    Consolidated Capitalization                                    $__________

3.   Debt to Capitalization Ratio:  (Line 1  /  Line 2)              __________

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

                                Exhibit 7.1(c)-2

<PAGE>

                                                                 Exhibit 11.3(b)

                          FORM OF ASSIGNMENT AGREEMENT

         Reference is made to that certain 364-Day Credit Agreement, dated as of
July 31, 2002, among Atmos Energy Corporation (the "Borrower"), the Lenders
party thereto and Bank One, NA, as Administrative Agent for the Lenders (as the
same may be amended, modified, extended or restated from time to time, the
"Credit Agreement"). Capitalized terms used herein shall have the meanings
ascribed thereto in the Credit Agreement.

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

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

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

                               Exhibit 11.3(b)-1

<PAGE>

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

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

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

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

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

         8. Terms of Assignment

            (a)  Date of Assignment:                           _________________

            (b)  Legal Name of Assignor:                       _________________

            (c)  Legal Name of Assignee:                       _________________

            (d)  Effective Date of Assignment:                 _________________

            (e)  Commitment Percentage Assigned:               ________________%

            (f)  Commitment Percentage of Assignor after
                 Assignment                                    ________________%

            (g)  Total Revolving Loans outstanding as of
                 Effective Date                                $________________

                               Exhibit 11.3(b)-2

<PAGE>

            (h)  Principal Amount of Revolving Loans
                 assigned on Effective Date (the amount set
                 forth in (g) multiplied by the percentage
                 set forth in (e))                             $________________

            (i)  Principal Amount of Competitive Bid Loans
                 Assigned on Effective Date                    $________________

            (j)  Revolving Loan Commitment                     $________________

            (k)  Principal Amount of Revolving Loan
                 Commitment Assigned on the Effective Date
                 (the amount set forth in (j) multiplied by
                 the percentage set forth in (e))              $________________

                               Exhibit 11.3(b)-3

<PAGE>

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

____________________________ , as Assignor

By:_____________________________

Name:___________________________

Title:__________________________

____________________________ , as Assignor

By:_____________________________

Name:___________________________

Title:__________________________

                                        CONSENTED TO (if applicable):

                                        ATMOS ENERGY CORPORATION

                                        By:_____________________________

                                        Name:___________________________

                                        Title:__________________________

                                        BANK ONE, NA,
                                        as Administrative Agent

                                        By:_____________________________

                                        Name:___________________________

                                        Title:__________________________

                               Exhibit 11.3(b)-4

<PAGE>

                                TABLE OF CONTENTS

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

EXHIBITS

Exhibit 2.1(b)         Form of Competitive Bid Request
Exhibit 2.2            Form of Notice of Borrowing
Exhibit 2.4            Form of Notice of Continuation/Conversion
Exhibit 2.7(a)         Form of Revolving Loan Note
Exhibit 2.7(b)         Form of Competitive Bid Loan Note
Exhibit 7.1(c)         Form of Officer's Certificate
Exhibit 11.3(b)        Form of Assignment Agreement

                                      -v-

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                  PAGE
                                                                                  ----
<S>                                                                                <C>
SECTION 1.    DEFINITIONS AND ACCOUNTING TERMS....................................   1

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

        1.2   Computation of Time Periods.......................................... 13

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

        1.4   Time................................................................. 14

SECTION 2.    LOANS................................................................ 14

        2.1   Revolving Loan Commitment............................................ 14

        2.2   Method of Borrowing for Revolving Loans.............................. 16

        2.3   Funding of Revolving Loans........................................... 17

        2.4   Continuations and Conversions........................................ 17

        2.5   Minimum Amounts...................................................... 18

        2.6   Reductions of Revolving Loan Commitment.............................. 18

        2.7   Notes................................................................ 18

SECTION 3.    PAYMENTS............................................................. 19

        3.1   Interest............................................................. 19

        3.2   Prepayments.......................................................... 19

        3.3   Payment in full at Maturity.......................................... 20

        3.4   Fees................................................................. 20

        3.5   Place and Manner of Payments......................................... 21

        3.6   Pro Rata Treatment................................................... 21

        3.7   Computations of Interest and Fees.................................... 21

        3.8   Sharing of Payments.................................................. 22

        3.9   Evidence of Debt..................................................... 23

SECTION 4.    ADDITIONAL PROVISIONS REGARDING LOANS................................ 24

        4.1   Eurodollar Loan Provisions........................................... 24

        4.2   Capital Adequacy..................................................... 25

        4.3   Compensation......................................................... 26

        4.4   Taxes................................................................ 26

SECTION 5.    CONDITIONS PRECEDENT................................................. 28

        5.1   Closing Conditions................................................... 28
</TABLE>

                                      -i-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                  PAGE
                                                                                  ----
<S>                                                                                <C>
        5.2   Conditions to Loans.................................................. 30

SECTION 6.    REPRESENTATIONS AND WARRANTIES....................................... 31

        6.1   Organization and Good Standing....................................... 31

        6.2   Due Authorization.................................................... 31

        6.3   No Conflicts......................................................... 31

        6.4   Consents............................................................. 31

        6.5   Enforceable Obligations.............................................. 31

        6.6   Financial Condition.................................................. 32

        6.7   No Material Change................................................... 32

        6.8   No Default........................................................... 32

        6.9   Litigation........................................................... 32

        6.10  Taxes................................................................ 32

        6.11  Compliance with Law.................................................. 33

        6.12  Material Agreements.................................................. 33

        6.13  ERISA................................................................ 33

        6.14  Use of Proceeds...................................................... 34

        6.15  Government Regulation................................................ 34

        6.16  Disclosure........................................................... 35

        6.17  Environmental Matters................................................ 35

        6.18  Insurance............................................................ 35

        6.19  Franchises, Licenses, Etc............................................ 35

        6.20  Secured Indebtedness................................................. 36

        6.21  Subsidiaries......................................................... 36

SECTION 7.    AFFIRMATIVE COVENANTS................................................ 36

        7.1   Information Covenants................................................ 36

        7.2   Debt to Capitalization Ratio......................................... 38

        7.3   Preservation of Existence, Franchises and Assets..................... 38

        7.4   Books and Records.................................................... 38

        7.5   Compliance with Law.................................................. 38

        7.6   Payment of Taxes and Other Indebtedness.............................. 38
</TABLE>

                                      -ii-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                  PAGE
                                                                                  ----
<S>                                                                                <C>
        7.7   Insurance............................................................ 39

        7.8   Use of Proceeds...................................................... 39

        7.9   Audits/Inspections................................................... 39

SECTION 8.    NEGATIVE COVENANTS................................................... 39

        8.1   Nature of Business................................................... 40

        8.2   Consolidation and Merger............................................. 40

        8.3   Sale or Lease of Assets.............................................. 40

        8.4   Arm's-Length Transactions............................................ 40

        8.5   Fiscal Year; Organizational Documents................................ 40

        8.6   Liens................................................................ 40

SECTION 9.    EVENTS OF DEFAULT.................................................... 42

        9.1   Events of Default.................................................... 42

        9.2   Acceleration; Remedies............................................... 44

        9.3   Allocation of Payments After Event of Default........................ 45

SECTION 10.   AGENCY PROVISIONS.................................................... 46

        10.1  Appointment.......................................................... 46

        10.2  Delegation of Duties................................................. 46

        10.3  Exculpatory Provisions............................................... 46

        10.4  Reliance on Communications........................................... 47

        10.5  Notice of Default.................................................... 47

        10.6  Non-Reliance on Administrative Agent and Other Lenders............... 48

        10.7  Indemnification...................................................... 48

        10.8  Administrative Agent in Its Individual Capacity...................... 49

        10.9  Successor Agent...................................................... 49

SECTION 11.   MISCELLANEOUS........................................................ 49

        11.1  Notices.............................................................. 49

        11.2  Right of Set-Off..................................................... 50

        11.3  Benefit of Agreement................................................. 50

        11.4  No Waiver; Remedies Cumulative....................................... 53

        11.5  Payment of Expenses, etc............................................. 53
</TABLE>

                                      -iii-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                                  PAGE
                                                                                  ----
<S>                                                                                <C>
        11.6  Amendments, Waivers and Consents..................................... 53

        11.7  Counterparts/Telecopy................................................ 54

        11.8  Headings............................................................. 55

        11.9  Defaulting Lender.................................................... 55

        11.10 Survival of Indemnification and Representations and Warranties....... 55

        11.11 Governing Law; Venue................................................. 55

        11.12 Waiver of Jury Trial................................................. 56

        11.13 Severability......................................................... 56

        11.14 Further Assurances................................................... 56

        11.15 Entirety............................................................. 56

        11.16 Binding Effect; Continuing Agreement................................. 56
</TABLE>

                                      -iv-<PAGE>
                                                                    EXHIBIT 10.1

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

                              ADOLPH COORS COMPANY

                              EQUITY INCENTIVE PLAN

                              AMENDED AND RESTATED,
                           EFFECTIVE FEBRUARY 14, 2002

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

<PAGE>

                                TABLE OF CONTENTS

<Table>
<S>      <C>                                                                  <C>
Section 1 - Introduction.......................................................1
         1.1      Establishment and Amendment..................................1
         1.2      Purposes.....................................................1
         1.3      Effective Date...............................................1

Section 2 - Definitions........................................................1
         2.1      Definitions..................................................1
         2.2      Gender and Number............................................3

Section 3 - Plan Administration................................................3
         3.1      General......................................................3
         3.2      Delegation by Committee......................................4
         3.3      Claims.......................................................4

Section 4 - Stock Subject to the Plan..........................................5
         4.1      Number of Shares.............................................5
         4.2      Other Shares of Stock........................................5
         4.3      Adjustments for Stock Split, Dividend, Etc...................5
         4.4      Other Distributions and Changes in the Stock.................6
         4.5      General Adjustment Rules.....................................6
         4.6      Determination by the Committee, Etc..........................6

Section 5 - [Reserved].........................................................7

Section 6 - Participation......................................................7
         6.1      In General...................................................7
         6.2      Restriction on Award Grants to Certain Individuals...........7
         6.3      General Restrictions on Awards...............................7

Section 7 - Stock Options......................................................7
         7.1      Grant of Stock Options.......................................7
         7.2      Stock Option Certificates....................................8
         7.3      Shareholder Privileges......................................12

Section 8 - Restricted Stock Awards...........................................12
         8.1      Grant of Restricted Stock Awards............................12
         8.2      Restrictions................................................12
         8.3      Privileges of a Stockholder, Transferability................13
         8.4      Enforcement of Restrictions.................................13

Section 9 - Purchase of Stock.................................................13
         9.1      General.....................................................13
         9.2      Other Terms.................................................13
</Table>

                                        i

<PAGE>
<Table>
<S>      <C>                                                                 <C>
Section 10 - Other Common Stock Grants........................................14

Section 11 - Company Right To Purchase Stock..................................14
         11.1     Right of First Refusal......................................14
         11.2     Marking of Certificates.....................................15

Section 12 - Change of Control................................................15
         12.1     In General..................................................15
         12.2     Limitation on Payments......................................16
         12.3     Definitions.................................................16

Section 13 - Rights of Employees; Participants................................18
         13.1     Employment..................................................18
         13.2     Nontransferability..........................................18

Section 14 - General Restrictions.............................................18
         14.1     Investment Representations..................................18
         14.2     Compliance with Securities Laws.............................19
         14.3     Changes in Accounting Rules.................................19

Section 15 - Other Employee Benefits..........................................19

Section 16 - Plan Amendment, Modification and Termination.....................19

Section 17 - Withholding......................................................20
         17.1     Withholding Requirement.....................................20
         17.2     Withholding With Stock......................................20

Section 18 - Requirements of Law..............................................20
         18.1     Requirements of Law.........................................20
         18.2     Federal Securities Law Requirements.........................20
         18.3     Governing Law...............................................20

Section 19 - Duration of the Plan.............................................20
</Table>

                                       ii
<PAGE>
                              ADOLPH COORS COMPANY
                              EQUITY INCENTIVE PLAN

                              AMENDED AND RESTATED,
                           EFFECTIVE FEBRUARY 14, 2002

                                   Section 1

                                  Introduction

         1.1 Establishment and Amendment. Adolph Coors Company, a Colorado
corporation (hereinafter referred to, together with its Affiliated Corporations
(as defined in subsection 2.1(a)) as the "Company" except where the context
otherwise requires), has established the Adolph Coors Company Equity Incentive
Plan (the "Plan") for certain employees of the Company. The Plan, which permits
the grant of stock options and restricted stock awards to certain employees of
the Company, was originally effective January 1, 1990. Pursuant to the power
granted in Section 16, the Company hereby amends and restates the Plan in its
entirety.

         1.2 Purposes. The purposes of the Plan are to provide the employees
selected for participation in the Plan with added incentives to continue in the
service of the Company and to create in such employees a more direct interest in
the future success of the operations of the Company by relating incentive
compensation to the achievement of long-term corporate economic objectives, so
that the income of such employees is more closely aligned with the income of the
Company's shareholders. The Plan is also designed to attract employees and to
retain and motivate participating employees by providing an opportunity for
investment in the Company.

         1.3 Effective Date. The original effective date of the Plan (the
"Effective Date") was January 1, 1990. The Plan, as hereby amended and restated
in its entirety, is effective February 14, 2002. The Plan, as amended and
restated, and each option or other award granted hereunder is conditioned on and
shall be of no force or effect until approval of the Plan by the holders of the
shares of voting stock of the Company unless the Company, on the advice of
counsel, determines that shareholder approval is not necessary.

                                   Section 2

                                  Definitions

         2.1 Definitions. The following terms shall the meanings set forth
below:

             (a) "Affiliated Corporation" means any corporation or other entity
(including but not limited to a partnership) which is affiliated with Adolph
Coors

<PAGE>

Company through stock ownership or otherwise and is designated as an
"Affiliated Corporation" by the Board.

             (b) "Award" means an Option or a Restricted Stock Award issued
hereunder, an offer to purchase Stock made hereunder, or a grant of Stock made
hereunder.

             (c) "Board" means the Board of Directors of the Company.

             (d) "Committee" means a committee consisting of members of the
Board who are empowered hereunder to take actions in the administration of the
Plan. Members of the Committee shall be appointed from to time to time by the
Board, shall serve at the pleasure of the Board and may resign at any time upon
written notice to the Board.

             (e) "Effective Date" means the original effective date of the Plan,
January 1, 1990.

             (f) "Eligible Employees" means those employees (including, without
limitation, officers and members of the Board who are also employees) of the
Company or any division thereof, upon those judgment, initiative and efforts the
Company is, or will become, largely dependent for the successful conduct of its
business. For purposes of the Plan, an employee is any individual who provides
services to the Company or any subsidiary or division thereof as a common law
employee and whose remuneration is subject to the withholding of federal income
tax pursuant to Section 3401 of the Code. Employee shall not include any
individual (i) who provides services to the Company or any subsidiary or
division thereof under an agreement, contract, or any other arrangement pursuant
to which the individual is initially classified as an independent contractor or
(ii) whose remuneration for services has not been treated initially as subject
to the withholding of federal income tax pursuant to section 3401 of the Code
even if the individual is subsequently reclassified as a common law employee as
a result of a final decree of a court of competent jurisdiction or the
settlement or an administrative or judicial proceeding. Leased employees shall
not be treated as employees under this Plan.

             (g) "Fair Market Value" means the average of the high and low sales
prices for a share of Stock on the New York Stock Exchange on a particular date.
If there are no Stock transaction s on such date, the Fair Market Value shall be
determined as of the immediately preceding date on which there were Stock
transactions. In the event that the method for determining the Fair Market Value
of a share of Stock provided for above shall not be practicable, then such Fair
Market Value shall be determined by such other reasonable valuation method as
the Committee shall, in its discretion, select and apply in good faith as of the
given date. If, upon exercise of an Option, the exercise price is paid by a
broker's transaction as provided in section 7.2(g)(ii)(D), Fair Market Value,
for purposes of the exercise, shall be the price at which the Stock is sold by
the broker.

                                       2
<PAGE>

             (h) "Internal Revenue Code" means the Internal Revenue Code of
1986, as it may be amended from time to time.

             (i) "Option" means a right to purchase Stock at a stated price for
a specified period of time. All Options granted under the Plan shall be
"non-qualified stock options" whose grant is not intended to fall under the
provisions of Section 422A of the Internal revenue Code.

             (j) "Option Price" means the price at which shares of Stock subject
to an Option may be purchased, determined in accordance with subsection 7.2(b).

             (k) "Participant" means an Eligible Employee designated by the
Committee from time to time during the term of the Plan to receive one or more
of the Awards provided under the plan.

             (l) "Restricted Stock Award," means an award of Stock granted to a
Participant pursuant to Section 8 that is subject to certain restrictions
imposed in accordance with the provisions of such Section.

             (m) "Stock" means the no par value Class B (non-voting) Common
Stock of the Company.

             (n) "Voting Stock," means the no par value Class A Common Stock of
the Company.

         2.2 Gender and Number. Except when otherwise indicated by the context,
the masculine gender shall also include the feminine gender, and the definition
of any term herein in the singular shall also include the plural.

                                   Section 3

                               Plan Administration

         3.1 General. The Plan shall be administered by the Committee. In
accordance with the provisions of the Plan, the Committee shall, in its sole
discretion, select the Participants from among the Eligible Employees, determine
the Options, Restricted Stock Awards and other Awards to be granted pursuant to
the Plan, the number of shares of Stock to be issued thereunder and the time at
which such Options and Restricted Stock Awards are to be granted, fix the Option
Price, period and manner in which an Option becomes exercisable, establish the
duration and nature of Restricted Stock Award restrictions, establish the terms
and conditions on which an offer to purchase Stock will be made, and establish
such other terms and requirements of the various compensation incentives under
the Plan as the Committee may deem necessary or desirable and consistent with
the terms of the Plan. The Committee shall determine the form or forms of the
agreements with Participants which shall evidence the particular provisions,
terms, conditions, rights and duties of the Company and the Participants with
respect to Awards

                                       3
<PAGE>

granted pursuant to the Plan, which provisions need not be identical except as
may be provided herein. The Committee may from time to time adopt such rules and
regulations for carrying out the purposes of the Plan as it may deem proper and
in the best interests of the Company. The Committee may correct any defect,
supply any omission or reconcile any inconsistency in the Plan or in any
agreement entered into hereunder in the manner and to the extent it shall deem
expedient and it shall be the sole and final judge of such expediency. No member
of the Committee shall be liable for any action or determination made in good
faith. The determinations, interpretations and other actions of the Committee
pursuant to the provisions of the Plan shall be binding and conclusive for all
purposes and on all persons.

         3.2 Delegation by Committee. The Committee may, from time to time,
delegate, to specified officers of the Company, the power and authority to grant
Awards under the Plan to specified groups of employees, subject to such
restrictions and conditions as the Committee, in its sole discretions, may
impose. The delegation shall be as broad or as narrow as the Committee shall
determine. To the extent that the Committee has delegated the authority to
determine certain terms and conditions of an Award, all references in the Plan
to the Committee's exercise of authority in determining such terms and
conditions shall be construed to include the officer or officers to whom the
Committee has delegated the power and authority to make such determination. The
power and authority to grant Awards to any employee who is covered by Section
16(b) of the Securities Exchange Act of 1934 (the "1934 Act") shall not be
delegated by the Committee.

         3.3 Claims.

             (a) A Participant who wishes to appeal any determination of the
Committee concerning an Award granted pursuant to the Plan shall notify the
Committee in a writing, which shall state the basis for the appeal. The appeal
shall be filed with the Committee within 30 days after the date the Participant
received the notice from the Committee. The written appeal may be filed by the
Participant's authorized representative. The Committee shall review the appeal
and issue it decision within 90 days after it receives the Participant's appeal.
If the Committee needs additional time to review the appeal, it shall notify the
Participant in writing and specify when it expects to render its decision. After
completion of its review, the Committee shall notify the Participant of its
decision in writing, which shall state the reasons for the Committee's decision.

             (b) If, after the completion of the procedure set forth in the
preceding paragraph, the Participant wishes to further pursue the appeal, the
appeal shall be submitted to, and determined through, binding arbitration in
Denver, Colorado in accordance with the arbitration procedures of the American
Arbitration Association ("AAA") existing at the time the arbitration is
conducted, before a single arbitrator chosen in accordance with AAA procedures.
The decision of the arbitrator shall be enforceable as a court judgment.

                                       4
<PAGE>

                                   Section 4

                            Stock Subject to the Plan

         4.1 Number of Shares. Ten Million Seven Hundred and Fifty Thousand
(10,750,000) shares of Stock are authorized for issuance under the Plan in
accordance with the provisions of the Plan and subject to such restrictions or
other provisions as the Committee may from time to time deem necessary. This
authorization may be increased from time to time by approval of the Board and by
the shareholders of the Company if, in the opinion of counsel for the Company,
such shareholder approval is required. Shares of Stock that may be issued upon
exercise of Options, that are issued as Restricted Stock Awards, that are
purchased under the Plan, and that are used as incentive compensation under the
Plan shall be applied to reduce the maximum number of shares of Stock remaining
available for use under the Plan. The Company shall at all times during the term
of the Plan and while any Options are outstanding retain as authorized and
unissued Stock at least the number of shares from time to time required under
the provisions of the Plan, or otherwise assure itself of its ability to perform
its obligations hereunder.

         4.2 Other Shares of Stock. Any shares of Stock that are subject to an
Option that expires or for any reason is terminated unexercised, any shares of
Stock that are subject to an Award (other than an Option) and that are
forfeited, any shares of Stock withheld for the payment of taxes or received by
the Company as payment of the exercise price of an Option and any shares that
for any reason are not issued to an Eligible Employee or are forfeited shall
automatically become available for use under the Plan. However, any shares of
Stock that are subject to an Award (other than an Option) and that are forfeited
and any shares of Stock that are withheld for the payment of taxes or received
by the Company as payment of the exercise price of an Option shall be available
for use under the Plan.

         4.3 Adjustments for Stock Split, Dividend, Etc. If the Company shall at
any time increase or decrease the number of its outstanding shares of Stock or
change in any way the rights and privileges of such shares by means of the
payment of a stock dividend or any other distribution upon such shares payable
in Stock, or through a stock split, subdivision, consolidation, combination,
reclassification or recapitalization involving the Stock, then in relation to
the Stock that is affected by one or more of the above events, the numbers,
rights and privileges of the following shall be increased, decreased or changed
in like manner as if they had been issued and outstanding, fully paid and
nonassessable at the time of such occurrence: (i) the shares of Stock as to
which Awards may be granted under the Plan; (ii) the shares of the Stock then
included in each outstanding Award granted hereunder; and (iii) the maximum
number of Shares available for grant to any one person pursuant to Section 6.3
of the Plan.

                                       5
<PAGE>

         4.4 Other Distributions and Changes in the Stock. If

             (a) the Company shall at any time distribute with respect to the
Stock assets or securities of persons other than the Company (excluding cash or
distributions referred to in Section 4.3),

             (b) the Company shall at any time grant to the holders of its Stock
rights to subscribe pro rata for additional shares thereof or for any other
securities of the Company, or

             (c) there shall be any other change (except as described in Section
4.3), in the number or kind of outstanding shares of Stock or of any stock, or
other securities into which the Stock shall be changed or for which it shall
have been exchanged,

and if the Committee shall in its discretion determine that the event described
in subsection (a), (b), or (c) above equitably requires an adjustment in the
number or kind of shares subject to an Option or other Award, an adjustment in
the Option Price or the taking of any other action by the Committee, including
without limitation, the setting aside of any property for delivery to the
Participant upon the exercise of an Option or the full vesting of an Award, then
such adjustments shall be made, or other actions shall be taken, by the
Committee and shall be effective for all purposes of the Plan and on each
outstanding Option or Award that involves the particular type of stock for which
a change was effected. Notwithstanding the foregoing provisions of this Section
4.4, pursuant to Section 8.3 below, a Participant holding Stock received as a
Restricted Stock Award shall have the right to receive all amounts, including
cash and property of any kind, distributed with respect to the Stock upon the
Participant's becoming a holder of record of the Stock.

         4.5 General Adjustment Rules. No adjustment or substitution provided
for in this Section 4 shall require the Company to sell a fractional share of
Stock under any Option, or otherwise issue a fractional share of Stock, and the
total substitution or adjustment with respect to each Option and other Award
shall be limited by deleting any fractional share. In the case of any such
substitution or adjustment, the total Option Price for the shares of Stock then
subject to the Option shall remain unchanged but the Option Price per share
under each such Option shall be equitably adjusted by the Committee to reflect
the greater or lesser number of shares of Stock or other securities into which
the Stock subject to the Option may have been changed, and appropriate
adjustments shall be made to Restricted Stock Awards to reflect any such
substitution or adjustment.

         4.6 Determination by the Committee, Etc. Adjustments under this Section
4 shall be made by the Committee, whose determinations with regard thereto shall
be final and binding upon all parties thereto.

                                       6
<PAGE>

                                   Section 5

                                   [Reserved]

                                   Section 6

                                  Participation

         6.1 In General. Participants in the Plan shall be those Eligible
Employees who, in the judgment of the Committee, are performing, or during the
term of their incentive arrangement will perform, vital services in the
management, operation and development of the Company or an Affiliated
Corporation, and significantly contribute, or are expected to significantly
contribute, to the achievement of long-term corporate economic objectives.
Participants may be granted from time to time one or more Awards; provided,
however, that the grant of each such Award shall be separately approved by the
Committee, and receipt of one such Award shall not result in automatic receipt
of any other Award. Upon determination by the Committee that an Award is to be
granted to a Participant, written notice shall be given to such person,
specifying the terms, conditions, rights and duties related thereto. Each
Participant shall, if required by the Committee, enter into an agreement with
the Company, in such form as the Committee shall determine and that is
consistent with the provisions of the Plan, specifying such terms, conditions,
rights and duties. Awards shall be deemed to be granted as of the date specified
in the grant resolution of the Committee, which date shall be the date of any
related agreement with the Participant. In the event of any inconsistency
between the provisions of the Plan and any such agreement entered hereunder, the
provisions of the Plan shall govern.

         6.2 Restriction on Award Grants to Certain Individuals. Notwithstanding
the foregoing provisions of Section 6.1, no Awards shall be granted to any
lineal descendant of Adolph Coors, Jr. without the prior written approval of
counsel to the Company as to the effect of any such grant on the possible status
of the Company as a "personal holding company" within the meaning of Section 542
of the Internal Revenue Code.

         6.3 General Restrictions on Awards. Awards covering no more than
500,000 shares of Stock may be granted to any Participant under this Plan during
any calendar year.

                                   Section 7

                                  Stock Options

         7.1 Grant of Stock Options. Coincident with or following designation
for participation in the Plan, a Participant may be granted one or more Options.
In no event shall the exercise of one Option affect the right to exercise any
other Option or affect the

                                       7
<PAGE>

number of shares of Stock for which any other Option may be exercised, except as
provided in subsection 7.2(j).

         7.2 Stock Option Certificates. Each Option granted under the Plan shall
be evidenced by a written stock option certificate or agreement. A stock option
certificate or agreement shall be issued by the Company in the name of the
Participant to whom the Option is granted (the "Option Holder") and shall
incorporate and conform to the conditions set forth in this Section 7.2, as well
as such other terms and conditions, not inconsistent herewith, as the Committee
may consider appropriate in each case.

             (a) Number of Shares. Each stock option certificate or agreement
shall state that it covers a specified number of shares of the Stock, as
determined by the Committee.

             (b) Price. The price at which each share of Stock covered by an
Option may be purchased shall be determined in each case by the Committee and
set forth in the stock option certificate or agreement.

             (c) Duration of Options: Restrictions on Exercise. Each stock
option certificate or agreement shall state the period of time, determined by
the Committee, within which the Option may be exercised by the Option Holder
(the "Option Period"), and shall also set forth any installment or other
restrictions on Option exercise during such period, if any, as may be determined
by the Committee.

             (d) Termination of Employment, Death, Disability, Etc. The
Committee may specify and cause to be reflected in the Option certificate or
agreement the period, if any, during which an Option may be exercised following
termination of the Option Holder's services. The effect of this subsection
7.2(d) shall be limited to determining the consequences of a termination and
nothing in this subsection 7.2(d) shall restrict or otherwise interfere with the
Company's discretion with respect to the termination of any individual's
services. If the Committee does not otherwise specify, the following shall
apply:

                  (i) If the employment of the Option Holder is terminated
         within the Option Period for cause, as determined by the Company, the
         Option shall thereafter be void for all purposes. As used in this
         subsection 7.2(d)(i), "cause" shall mean a gross violation, as
         determined by the Company, of the Company's established policies and
         procedures.

                  (ii) If the Option Holder retires from employment by the
         Company or its affiliates during the Option Period pursuant to the
         Company's retirement policy, or if the Option Holder becomes disabled
         (as determined pursuant to the Company's Long-Term Disability Plan),
         the Option may be exercised by the Option Holder, or in the case of
         death by the persons specified in subsection (iii) of this subsection
         7.2(d), within thirty-six months following his or her retirement or
         disability (provided that such exercise must occur within the

                                       8
<PAGE>

         Option Period), but not thereafter. In any such case, the Option may be
         exercised only as to the shares as to which the Option had become
         exercisable on or before the date of the Option Holder's termination of
         employment.

                  (iii) If the Option Holder dies during the Option Period while
         still employed or within the period referred to in (iv) below, or
         within the thirty-six-month period referred to in (ii) above, the
         Option may be exercised by those entitled to do so under the Option
         Holder's will or by the laws of descent and distribution within fifteen
         months following the Option Holder's death, (provided that such
         exercise must occur within the Option Period), but not thereafter. In
         any such case, the Option may be exercised only as to the shares as to
         which the Option had become exercisable on or before the date of the
         Option Holder's death.

                  (iv) If the employment of the Option Holder by the Company is
         terminated (which for this purpose means that the Option Holder is no
         longer employed by the Company or by an Affiliated Corporation) within
         the Option Period for any reason other than cause, retirement pursuant
         to the Company's retirement policy, disability or the Option Holder's
         death, the Option may be exercised by the Option Holder (A) in the case
         of an Option granted on or after January 1, 2000, within one year
         following the date of such termination (provided that such exercise
         must occur within the Option Period), but not thereafter, and (B) in
         the case of an Option granted prior to January 1, 2000, within three
         months following the date of such termination (provided that such
         exercise must occur within the Option Period), but not thereafter. In
         any such case, the Option may be exercised only as to the shares as to
         which the Option had become exercisable on or before the date of
         termination of employment.

             (e)  Transferability.

                  (i) Except as specifically provided in subsection 7.2(e)(ii)
         below, an Option shall not be transferable by the Option Holder except
         by will or pursuant to the laws of descent and distribution. An Option
         shall be exercisable during the Option Holder's lifetime only by him or
         her, or in the event of Disability or incapacity, by his or her
         guardian or legal representative. The Option Holder's guardian or legal
         representative shall have all of the rights of the Option Holder under
         this Plan.

                  (ii) The Committee may, however, provide at the time of grant
         or thereafter that the Option Holder may transfer an Option to a member
         of the Option Holder's immediate family, a trust of which members of
         the Option Holder's immediate family are the only beneficiaries, or a
         partnership of which members of the Option Holder's immediate family or
         trusts for the sole benefit of the Option Holder's immediate family are
         the only partners (the "InterVivos Transferee"). Immediate family mans
         the Option Holder's spouse, issue (by birth

                                       9
<PAGE>

         or adoption), parents, grandparents, siblings (including half brothers
         and sisters and adopted siblings) and nieces and nephews. No transfer
         shall be effective unless the Option Holder shall have notified the
         Company of the transfer in writing and has furnished a copy of the
         documents that effect the transfer to the Company. The InterVivos
         Transferee shall be subject to all of the terms of this Plan and the
         Option, including, but not limited to, the vesting schedule,
         termination provisions, and the manner in which the Option may be
         exercised. The Committee may require the Option Holder and the
         InterVivos Transferee to enter into an appropriate agreement with the
         Company providing for, among other things, the satisfaction of required
         tax withholding with respect to the exercise of the transferred Option
         and the satisfaction of any Stock retention requirements applicable to
         the Option Holder, together with such terms and conditions as may be
         specified by the Committee. Except to the extent provided otherwise in
         such agreement, the InterVivos Transferee shall have all of the rights
         and obligations of the Option Holder under this Plan.

             (f) [Reserved]

             (g) Exercise, Payments, Etc.

                  (i) Each stock option certificate or agreement shall provide
         that the method for exercising the Option granted therein shall be by
         delivery to the Corporate Secretary of the Company of written notice
         specifying the number of shares with respect to which such Option is
         exercised and payment of the Option Price. Such notice shall be in a
         form satisfactory to the Committee and shall specify the particular
         Option (or portion thereof) which is being exercised and the number of
         shares with respect to which the Option is being exercised. The
         exercise of the Stock Option shall be deemed effective upon receipt of
         such notice by the Corporate Secretary and payment to the Company. If
         requested by the Company, such notice shall contain the Option Holder's
         representation that he or she is purchasing the Stock for investment
         purposes only and his or her agreement not to sell any Stock so
         purchased in any manner that is in violation of the Securities Act of
         1933, as amended, or any applicable state law. Such restrictions, or
         notice thereof, shall be placed on the certificates representing the
         Stock so purchased. The purchase of such Stock shall take place at the
         principal offices of the Company upon delivery of such notice, at which
         time the purchase price of the Stock shall be paid in full by any of
         the methods or any combination of the methods set forth in (ii) below.
         A properly executed certificate or certificates representing the Stock
         shall be issued by the Company and delivered to the Option Holder. If
         certificates representing Stock are used to pay all or part of the
         exercise price, separate certificates for the same number of shares of
         Stock shall be issued by the Company and delivered to the Option Holder
         representing each certificate used to pay the Option Price, and an
         additional certificate shall be issued by the Company and delivered to
         the Option Holder representing the additional shares, in excess of the
         Option Price, to which the Option Holder is

                                       10
<PAGE>

         entitled as a result of the exercise of the Option (the "Additional
         Shares"). Notwithstanding the foregoing, if a Participant has validly
         elected, in accordance with the provisions of the Adolph Coors Company
         Deferred Compensation Plan, or any successor plan, to defer the receipt
         of such Additional Shares, then such Additional Shares shall be issued
         and delivered to the trustee of the trust formed pursuant to the
         provisions of such Deferred Compensation Plan, or otherwise deferred in
         accordance with the provisions of such Deferred Compensation Plan, and
         the rights of the Participant with respect to such Additional Shares
         shall be determined in accordance with the provisions of the Deferred
         Compensation Plan.

                  (ii) The exercise price shall be paid by any of the following
         methods or any combination of the following methods:

                           (A) in cash;

                           (B) by certified or cashier's check payable to the
                  order of the Company;

                           (C) by delivery to the Company of certificates
                  representing the number of shares then owned by the Option
                  Holder, the Fair Market Value of which equals the purchase
                  price of the Stock purchased pursuant to the Option, properly
                  endorsed for transfer to the Company; provided however, that
                  no Option may be exercised by delivery to the Company of
                  certificates representing Stock, unless such Stock has been
                  held by the Option Holder for more than six months; for
                  purposes of this Plan, the Fair Market Value of any shares of
                  Stock delivered in payment of the purchase price upon exercise
                  of the Option shall be the Fair Market Value as of the
                  exercise date; the exercise date shall be the day of delivery
                  of the certificates for the Stock used as payment of the
                  Option Price; or

                           (D) by delivery to the Company of a properly executed
                  notice of exercise together with irrevocable instructions to a
                  broker to deliver to the Company promptly the amount of the
                  proceeds of the sale of all or a portion of the Stock or of a
                  loan from the broker to the Option Holder necessary to pay the
                  exercise price.

             (h)  Date of Grant. An option shall be considered as having been
granted on the date specified in the grant resolution of the Committee.

             (i)  Notice of Sale of Stock; Withholding. Each stock option
certificate or agreement shall provide that, upon exercise of the Option, the
Option Holder shall make appropriate arrangements with the Company to provide
for the amount of additional withholding required by Sections 3102 and 3402 of
the Internal Revenue Code and applicable state income tax laws, including
payment of such taxes through

                                       11
<PAGE>

delivery of shares of Stock or by withholding Stock to be issued under the
Option, as provided in Section 17.

             (j) Issuance of Additional Option. If an Option Holder pays all or
any portion of the exercise price of an Option with Stock, or pays all or any
portion of the applicable withholding taxes with respect to the exercise of an
Option with Stock which has been held by the Option Holder for more than six
months, the Committee shall grant to such Option Holder a new Option covering
the number of shares of Stock used to pay such exercise price and/or withholding
tax. The new Option shall have an Option Price per share equal to the Fair
Market Value of a share of Stock on the date of the exercise of the Option and
shall have the same terms and provisions as the Option, except as otherwise
determined by the Committee in its sole discretion. Effective for Options
granted on and after January 1, 1994, this subsection 7.2(j) shall be null and
void.

         7.3 Shareholder Privileges. No Option Holder shall have any rights as a
shareholder with respect to any shares of Stock covered by an Option until the
Option Holder becomes the holder of record of such Stock, and no adjustments
shall be made for dividends or other distributions or other rights as to which
there is a record date preceding the date such Option Holder becomes the holder
of record of such Stock, as provided in Section 4.

                                   Section 8

                             Restricted Stock Awards

         8.1 Grant of Restricted Stock Awards. Coincident with or following
designation for participation in the Plan, the Committee may grant a Participant
one or more Restricted Stock Awards consisting of shares of Stock. The number of
shares granted as a Restricted Stock Award shall be determined by the Committee.

         8.2 Restrictions. A Participant's right to retain a Restricted Stock
Award granted to him under Section 8.1 shall be subject to such restrictions,
including but not limited to his continuous employment by the Company or an
Affiliated Corporation for a restriction period specified by the Committee or
the attainment of specified performance goals and objectives, as may be
established by the Committee with respect to such award. The Committee may in
its sole discretion require different periods of employment or different
performance goals and objectives with respect to different Participants, to
different Restricted Stock Awards or to separate, designated portions of the
Stock shares constituting a Restricted Stock Award. In the event of the death or
disability (as defined in subsection 7.2(d)) of a Participant, or the retirement
of a Participant in accordance with the Company's established retirement policy,
all employment period and other restrictions applicable to Restricted Stock
Awards then held by him shall lapse with respect to a pro rata part of each such
Award based on the ratio between the number of full months of employment
completed at the time of termination of employment from the grant of each Award
to the total number of months of employment required for such

                                       12
<PAGE>

Award to be fully nonforfeitable, and such portion of each such award shall
become fully nonforfeitable. The remaining portion of each such Award shall be
forfeited and shall be immediately returned to the Company. In the event of a
Participant's termination of employment for any other reason, any Restricted
Stock Awards as to which the employment period or other restrictions have not
been satisfied (or waived or accelerated as provided herein) shall be forfeited,
and all shares of Stock related thereto shall be immediately returned to the
Company.

         8.3 Privileges of a Stockholder, Transferability. A Participant shall
have all voting, dividend, liquidation and other rights with respect to Stock in
accordance with its terms received by him as a Restricted Stock Award under this
Section 8 upon his becoming the holder of record of such Stock; provided,
however, that the Participant's right to sell, encumber, or otherwise transfer
such Stock shall be subject to the limitations of Sections 9 and 11.2.

         8.4 Enforcement of Restrictions. The Committee shall cause a legend to
be placed on the Stock certificates issued pursuant to each Restricted Stock
Award referring to the restrictions provided by Section 8.2 and 8.3 and, in
addition, may in its sole discretion require one or more of the following
methods of enforcing the restrictions referred to in Sections 8.2 and 8.3:

             (a) Requiring the Participant to keep the Stock certificates, duly
endorsed, in the custody of the Company while the restrictions remain in effect;
or

             (b) Requiring that the Stock certificates, duly endorsed, be held
in the custody of a third party while the restrictions remain in effect.

                                   Section 9

                                Purchase of Stock

         9.1 General. From time to time the Company may make an offer to certain
Participants, designated by the Committee in its sole discretion, to purchase
Stock from the Company. The number of shares of Stock offered by the Company to
each selected Participant shall be determined by the Committee in its sole
discretion. The purchase price for the Stock shall be as determined by the
Committee in its sole discretion and may be less than the Fair Market Value of
the Stock. The Participants who accept the Company's offer shall purchase the
Stock at the time designated by the Committee. The purchase shall be on such
additional terms and conditions as may be determined by the Committee in its
sole discretion.

         9.2 Other Terms. The Committee may, in its sole discretion, grant
Options, Restricted Stock, or any combination thereof, on terms and conditions
determined by the Committee, in its sole discretion, to the Participants who
purchase Stock pursuant to Section 9.1.

                                       13
<PAGE>

                                   Section 10

                            Other Common Stock Grants

         From time to time during the duration of this Plan, the Board may, in
its sole discretion, adopt one or more incentive compensation arrangements for
Participants pursuant to which the Participants may acquire shares of Stock,
whether by purchase, outright grants, or otherwise. Any such arrangements shall
be subject to the general provisions of this Plan and all shares of Stock issued
pursuant to such arrangements shall be issued under this Plan.

                                   Section 11

                         Company Right To Purchase Stock

         11.1 Right of First Refusal. (a) The Committee may, in its sole
discretion, provide at the time of the grant of an Award and cause to be
reflected in the certificate or agreement with respect to such Award that the
Stock acquired pursuant to the Plan shall be subject to the Company's right of
first refusal set forth in the following subsections of this Section 11.1. The
Committee may also, in its sole discretion, waive the Company's rights under
this Section 11 with respect to outstanding Awards and may modify outstanding
Awards accordingly.

             (b) In the event of the death of a Participant, or if a Participant
at any time proposes to transfer any of the Stock acquired pursuant to the Plan
to a third party, the Participant (or his personal representative or estate, as
the case may be) shall make a written offer (the "Offer") to sell all of the
Stock acquired pursuant to the Plan then owned by the Participant (or thereafter
acquired by the Participant's estate or personal representative pursuant to any
Award hereunder) to the Company at the "purchase price" as hereinafter defined.
In the case of a proposed sale of any of the Stock to a third party, the Offer
shall state the name of the proposed transferee and the terms and conditions of
the proposed transfer. In the case of a proposed sale through or to a registered
broker/dealer, the Offer shall state the name and address of the broker. The
Company shall have the right to elect to purchase all (but not less than all) of
the shares of Stock. The Company shall have the right to elect to purchase the
shares of Stock for a period of ten (10) days after the receipt by the Company
of the Offer. The provisions of this Section 11 shall apply to proposed sales
through or to a registered broker/dealer at the prevailing market price, even if
the prevailing market price should fluctuate between the date the Company
receives the Offer and the date the Company elects to purchase the shares of
Stock. In all cases, the purchase price for the Stock shall be determined
pursuant to subsection 11.1(e).

             (c) The Company shall exercise its right to purchase the Stock by
given written notice of its exercise to the Participant (or his personal
representative or estate, as the case may be). If the Company elects to purchase
the Stock, payment for the

                                       14
<PAGE>

shares of Stock shall be made in full by Company check. Any such payments shall
be made within ten (10) days after the election to purchase has been exercised.

             (d) If the Stock is not purchased pursuant to the foregoing
provisions, the shares of Stock may be transferred by the Participant to the
proposed transferee named in the Offer to the Company, in the case of a proposed
sale to a third party. However, if such transfer is not made within 120 days
following the termination of the Company's right to purchase, a new offer must
be made to the Company before the Participant can transfer any portion of his
shares and the provisions of this Section 11 shall again apply to such transfer.
If the Company's right of first refusal under this Section 11 is created by an
event other than a proposed transfer to a third party, the shares of Stock shall
remain subject to the provisions of this Section 11 in the hands of the
registered owner of the Stock.

             (e) The purchase price for each share of Stock purchased by the
Company pursuant to this Section 11 shall be equal to the Fair Market Value of
the Stock on the date the Company receives the Offer under subsection 11.1(a).

         11.2  Marking of Certificates. The Committee shall require that
certificates representing shares of Stock acquired pursuant to this Plan that
are subject to the provisions of subsections 11.1(b) through (e) bear the
following legend:

               The shares of stock represented by this Certificate are subject
               to all the terms of the Adolph Coors Company Equity Incentive
               Plan, as the Plan may be amended from time to time (the "Plan")
               and to the terms of a [Non-Qualified Stock Option Agreement]
               [Restricted Stock Agreement] [Stock Purchase Agreement] between
               the Company and the Participant (the "Agreement"). Copies of the
               Plan and the Agreement are on file at the office of the Company.
               The Plan and the Agreement, among other things, limit the right
               of the Owner to transfer the shares represented hereby and
               provides that in certain circumstances the shares may be
               purchased by the Company.

                                   Section 12

                                Change of Control

         12.1  In General. In the event of a Change of Control of the Company as
defined in Section 12.3, then, subject to the provisions of Section 12.2, (a)
all Options shall become immediately exercisable in full during the remaining
term thereof, and shall remain so, whether or not the Participants to whom such
Options have been granted remain employees of the Company or an Affiliated
Corporation; and (b) all restrictions with respect to outstanding Restricted
Stock Awards shall immediately lapse. The Committee shall, in the event of a
Change of Control of the Company, either (x) make appropriate provision for the
adoption and continuation of the Plan and the outstanding Options by the
acquiring or successor corporation and for the protection of outstanding

                                       15
<PAGE>

Options by the substitution on an equitable basis of appropriate stock of the
Company or of the merged, consolidated or other reorganized corporation that
will be issuable with respect to the Stock, provided that the excess of the
aggregate Fair Market Value of the shares subject to the Options immediately
after such substitution over the Option Price thereof is not less than the
excess of the aggregate Fair Market Value of the shares subject to such Options
immediately before such substitution over the Option Price thereof, or (y) upon
written notice to the Participants, provide that all unexercised Options must be
exercised within a specified number of days (not less than ninety (90)) of the
date of such notice or they will be terminated.

         12.2  Limitation on Payments. If the provisions of Section 12 would
result in the receipt by any Participant of a payment within the meaning of
Section 280G of the Internal Revenue Code and the regulations promulgated
thereunder and if the receipt of such payment by any Participant would, in the
opinion of independent tax counsel of recognized standing selected by the
Company, result in the payment by such Participant of any excise tax provided
for in Section 4999 of the Internal Revenue Code, then either (a) the amount of
such payment shall be reduced in the manner determined by the Committee to the
extent required, in the opinion of such independent tax counsel, to prevent the
imposition of such excise tax; or (b) the amount of such payment shall not be
reduced, depending upon whichever approach results in the greatest net after-tax
benefit to the Participant, as determined by such independent tax counsel.

         12.3  Definitions. (a) For purposes of the Plan, a "Change of Control"
shall occur if:

                  (i) a Person or Persons become(s) the direct or indirect
         Beneficial Owner of more than 20% of the total voting power of the
         Voting Stock of the Company at a time when the Existing Shareholder
         does not hold more than 50% of the voting power of the Voting Stock of
         the Company, provided that any such acquisition of beneficial ownership
         of Voting Stock by any of the following Persons shall not by itself
         constitute a Change of Control hereunder: (i) the Company or one of its
         wholly-owned subsidiaries or (ii) any employee benefit plan (or related
         trust) sponsored or maintained by the Company or one of its
         wholly-owned subsidiaries;

                  (ii) the Company consummates a merger, reorganization,
         recapitalization, joint venture, consolidation, share exchange,
         business combination or similar form of corporate transaction involving
         the Company (each, a "Business Combination") unless, immediately
         following such Business Combination, more than 50% of the voting power
         of the then outstanding Voting Stock of the Person resulting from
         consummation of such Business Combination (including, without
         limitation, any parent or ultimate parent corporation of such Person
         that as a result of such transaction owns directly or indirectly the
         Company and all or substantially all of the Company's assets) is held
         by the Existing Shareholder.

                                       16
<PAGE>

                  (iii) individuals who constitute the Board (the "Incumbent
         Directors") cease for any reason to constitute at least a majority of
         the Board, provided that any person becoming a director subsequent to
         February 14, 2002, whose election or nomination for election was
         approved by a vote of at least two-thirds of the Incumbent Directors
         then on the Board (either by a specific vote or by approval of the
         proxy statement of the Company in which such person is named as a
         nominee for director, without written objection to such nomination)
         shall be an Incumbent Director; provided, however, that no individual
         initially elected or nominated as a director of the Company as a result
         of an actual or threatened election contest with respect to directors
         or as a result of any other actual or threatened solicitation of
         proxies or consents by or on behalf of any Person other than the Board
         shall be deemed to be an Incumbent Director; or

                  (iv) the shareholders of the Company approve a dissolution or
         liquidation involving all or substantially all of the Company's assets,
         or the Company consummates the sale of all or substantially all of the
         Company's assets to a Person, unless more than 50% of the voting power
         of the Voting Stock of such Person is held directly or indirectly by
         the Existing Shareholder.

                  (b) For purposes of this Section 12.3, the following
definitions are applicable:

                      (i) "Beneficial Owner and Beneficially Own" mean
         beneficial ownership as defined in Rules 13d-3 and 13d-5 under the
         Securities Exchange Act of 1934, except that a person shall be deemed
         to beneficially own all securities that such person has the right to
         acquire, whether such right is exercisable immediately or only after
         the passage of time.

                      (ii) "Company Common Stock" means the Company's Class B
         Common Stock and any other common stock (whether voting or non-voting)
         that may be hereafter issued.

                      (iii) "Existing Shareholder" shall mean the Adolph Coors,
         Jr. Trust and any successor trust thereto the primary beneficiaries of
         which are descendants of Adolph Coors, Sr.

                      (iv) "Person" means any individual, entity or group
         (within the meaning of Section 13(d)(3) or 14(d)(2) of the 1934 Act).

                       (v) "Voting Stock" means any and all shares, interests,
         participants, rights in or other equivalents of capital stock and
         warrants or options exchangeable for or convertible into such capital
         stock which ordinarily have the power to vote for the election of
         directors, managers or other voting members of the governing body (the
         "Governing Board") of a Person.

                                       17
<PAGE>

                                   Section 13

                        Rights of Employees; Participants

         13.1 Employment. Nothing contained in the Plan or in any Option or
Restricted Stock Award granted under the Plan shall confer upon any Participant
any right with respect to the continuation of his or her employment by the
Company or any Affiliated Corporation, or interfere in any way with the right of
the Company or any Affiliated Corporation, subject to the terms of any separate
employment agreement to the contrary, at any time to terminate such employment
or to increase or decrease the compensation of the Participant from the rate in
existence at the time of the grant of an Option or Restricted Stock Award.
Whether an authorized leave of absence, or absence in military or government
service, shall constitute a termination of employment shall be determined by the
Committee at the time.

         13.2 Nontransferability. Except as provided otherwise by the Committee
at the time of grant or thereafter, no right or interest of any Participant in
an Option or a Restricted Stock Award (prior to the completion of the
restriction period applicable thereto), granted pursuant to the Plan, shall be
assignable or transferable during the lifetime of the Participant, either
voluntarily or involuntarily, or subjected to any lien, directly or indirectly,
by operation of law, or otherwise, including execution, levy, garnishment,
attachment, pledge or bankruptcy. In the event of a Participant's death, a
Participant's rights and interests in Options and Restricted Stock Awards shall,
to the extent provided in Sections 7, 8 and 9, be transferable by testamentary
will or the laws of descent and distribution, and payment of any amounts due
under the Plan shall be made to, and exercise of any Options may be made by, the
Participant's legal representatives, heirs and legatees. If in the opinion of
the Committee a person entitled to payments or to exercise rights with respect
to the Plan is disabled from caring for his affairs because of mental condition,
physical condition or age, payment due such person may be made to, and such
rights shall be exercised by, such person's guardian, conservator or other legal
personal representative upon furnishing the Committee with evidence satisfactory
to the Committee of such status.

                                   Section 14

                              General Restrictions

         14.1 Investment Representations. The Company may require any person to
whom an Option, Restricted Stock Award, or Stock is granted, or to whom Stock is
sold, as a condition of exercising such Option or receiving such Restricted
Stock Award or Stock, or purchasing such Stock, to give assurances in substance
and form satisfactory to the Company and its counsel to the effect that such
person is acquiring the Stock subject to the Option, Restricted Stock Award,
Stock grant, or purchase of Stock, for his own account for investment and not
with any present intention of selling or otherwise

                                       18
<PAGE>

distributing the same, and to such other effects as the Company deems necessary
or appropriate in order to comply with Federal and applicable state securities
laws.

         14.2 Compliance with Securities Laws. Each Option and Restricted Stock
Award, and Stock grant or purchase shall be subject to the requirement that, if
any time counsel to the Company shall determine that the listing, registration
or qualification of the shares subject to such Option, Restricted Stock Award,
Stock grant or purchase upon any securities exchange or under any state or
federal law, or the consent or approval of any governmental or regulatory body,
is necessary as a condition of, or in connection with, the issuance or purchase
of shares thereunder, such Option Restricted Stock Award, or Stock grant or
purchase may not be accepted or exercised in whole or in part unless such
listing, registration, qualification, consent or approval shall have been
effected or obtained on conditions acceptable to the Committee. Nothing herein
shall be deemed to require the Company to apply for or to obtain such listing,
registration or qualification.

         14.3 Changes in Accounting Rules. Notwithstanding any other provision
of the Plan to the contrary, if, during the term of the Plan, any changes in the
financial or tax accounting rules applicable to Options or Restricted Stock
Awards shall occur that, in the sole judgment of the Committee, may have a
material adverse effect on the reported earnings, assets or liabilities of the
Company, the Committee shall have the right and power to modify as necessary,
any then outstanding and unexercised Options and outstanding Restricted Stock
Awards as to which the applicable employment or other restrictions have not been
satisfied.

                                   Section 15

                             Other Employee Benefits

         The amount of any compensation deemed to be received by a Participant
as a result of the exercise of an Option, the sale of shares received upon such
exercise, the vesting in any Restricted Stock Award, or the purchase or grant of
Stock, shall not constitute "earnings" with respect to which any other employee
benefits of such employee are determined, including without limitation benefits
under any pension, profit sharing, life insurance or salary continuation plan.

                                   Section 16

                  Plan Amendment, Modification and Termination

         The Board may at any time terminate, and from time to time may amend or
modify the Plan provided, however, that no amendment or modification may become
effective without approval of the amendment or modification by the shareholders
if shareholder approval is required to enable the Plan to satisfy any applicable
statutory or regulatory requirements, or if the Company, on the advice of
counsel, determines that shareholder approval is otherwise necessary or
desirable.

                                       19
<PAGE>

         No amendment, modification or termination of the Plan shall in any
manner adversely affect any Options, Restricted Stock Awards or Stock
theretofore granted or purchased under the Plan, without the consent of the
Participant holding such Options, Restricted Stock Awards or Stock.

                                   Section 17

                                   Withholding

         17.1 Withholding Requirement. The Company's obligations to deliver
shares of Stock upon the exercise of any Option, the vesting of any Restricted
Stock Award, or the grant or purchase of Stock shall be subject to the
Participant's satisfaction of all applicable federal, state and local income and
other tax withholding requirements.

         17.2 Withholding With Stock. The withholding obligation with respect to
the grant of Restricted Stock shall be satisfied by the Company's withholding
from the shares otherwise issuable to the Participant shares of Stock having a
value equal to the amount required to be withheld. The value of shares of Stock
to be withheld shall be based on the Fair Market Value of the Stock on the date
that the amount of tax to be withheld is to be determined.

                                   Section 18

                               Requirements of Law

         18.1 Requirements of Law. The issuance of Stock and the payment of cash
pursuant to the Plan shall be subject to all applicable laws, rules and
regulations.

         18.2 Federal Securities Law Requirements. If a Participant is an
executive officer or director of the Company within the meaning of Section 16,
the Committee may require that Awards granted hereunder shall be subject to all
conditions required under Rule 16b-3, or any successor rule promulgated under
the 1934 Act, to qualify the Award for any exception from the provisions of
Section 16(b) of the 1934 Act available under that Rule. Such conditions shall
be set forth in the agreement with the Participant which describes the Award.

         18.3 Governing Law. The Plan and all agreements hereunder shall be
construed in accordance with and governed by the laws of the State of Colorado.

                                   Section 19

                              Duration of the Plan

         The Plan shall terminate at such time as may be determined by the Board
of Directors, and no Option or Restricted Stock Award, or Stock shall be granted
or purchased after such termination. Options and Restricted Stock Awards
outstanding at

                                       20
<PAGE>

the time of the Plan termination may continue to be exercised, or
become free of restrictions, or paid, in accordance with their terms.

Dated:
      -------------------

                                             ADOLPH COORS COMPANY
ATTEST:

                                             By:
-----------------------------------             --------------------------------

                                       21

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