Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Pro-Tech Holdings Ltd. - Exhibit 10.3

 General Engineering and Management Consulting Services
  Agreement

 This letter of agreement is between Power Grow System Ltd.
  (the "Company"), doing business at 108 1533 Broadway St. Coquitlam, B.C
  and N.B. Machine Ltd., (the "Contractor") doing business at 27 –
  2351 Parkway Blvd. Coquitlam, BC. 

 The Company and the Contractor wish to enter into this Design,
  Mechanical Engineering and General Management contract for the operation of
  the Company's Coquitlam manufacturing plant and place of business.

 It is understood, agreed and relied upon that the contractor,
  in the performance of its duties and responsibilities described herein, will
  engage the services of Mr. Nick Brusatore (the "consultant"), and others
  when necessary to act as a design, production and quality control consultant
  relating to the designing, manufacturing, engineering and general management
  and administrative activities carried out in the Company's manufacturing plant
  and place of Business.

Duties and Responsibilities of the Contractor and the Consultant: 

	 	 1.      	 Design and engineer, as necessary, and oversee the
        development of new hydroponics plant growing equipment required for future
        development and growth of the Company. 

	 
	 	 2.      	 Research, select and test for functionality all
        mechanical, electrical and hydroponics parts and accessories to be utilized
        in the manufacturing of existing company's hydroponics models and new
        models to be developed and manufactured by the Company in the future.
      

	 
	 	 3.      	 Supervise and overview the manufacturing, packaging
        and shipping of the company's hydroponics equipment and insure the application
        of quality standards in these operational processes. 

	 
	 	 4.      	 Act as the General Manager in charge of all corporate,
        accounting and office operation activities and provide reports to the
        company and its Board on a regular basis regarding progress as well as
        consult with company's officials on general administrative, research and
        development and manufacturing operation matters. 

	 
	 	 5.      	 Maintain accurate data of all corporate, manufacturing,
        shipping and accounting activities. 

	 
	 	 6.      	 Maintain communication with Company's Board of Directors
        and Company's contracted and independent professional consultants to ensure
        an efficient Business operation and smooth flow and exchange of information.
      

	 
	 	 7.      	 Devote sufficient time to the Business of the company
        and, when necessary, work additional hours for the performance of the
        services described herein. The contractor and the consultant as a representative
        for the company, shall provide the services in a proper, loyal, diligent,
        efficient, professional manner and, at all times, shall use his best efforts
        to maintain and promote the best interest of the company. 

	 
	 	 8.      	 During the Term of the Agreement the Contractor
        will act as Secretary and Treasurer of the Company. 

	 

 (2)

Terms of the Agreement: 

	 	 1.      	 Duration of this agreement shall be for a period
        of three years commencing on the 1 st day of January 2003 and terminating
        on the 30th t day of Jan 2006. On the date of termination, the parties
        to this agreement will have the option to renew this agreement, for an
        unspecified additional term, according to the same terms and conditions
        described herein, or as they may be renegotiated by both parties to the
        agreement. 

	 
	 	 2.      	 The agreement may be terminated by either party,
        with cause, at any time or in the event the Contractor breach the terms
        and conditions described herein during the entire duration of the agreement
        by giving 30 days written notice. 

Compensation: 

	 	 1.      	 Compensation for the contractor services shall be
        CDN $4,500 a month, commencing on the effective date of this agreement
        and paid at the end of each month for the duration of the agreement. 

	 
	 	 2.      	 Additionally, The Company will provide the contractor
        with a Company's leased vehicle and will reimburse the contractor for
        any reasonable expenses, relating to telephone, travel, courier incurred
        by him during the performance of his duties. Invoices for these expenses
        shall be submitted to the company on a monthly basis. 

General conditions: 

	 	 1.      	 This agreement evidences the entire agreement between
        the parties and cannot be changed, modified or altered without the written
        consent by both parties. 

	 
	 	 2.      	 This agreement shall inure for the benefit of both
        the undersigned parties and shall be governed and construed in accordance
        with the laws of the province of British Columbia 

Signed, sealed and delivered on the 1st day of January 2003. 

 By: 

 

	 Per: "Jason Bleuler"  	          "Nick Brusatore" 
    	 "Nick Brusatore"  
	 Power Grow System Ltd.  	          N. B. Machine
      Ltd.  	 Nick BrusatoreEXHIBIT 10(b)

EXHIBIT 10(b)

                                                                              

	
  CLECO CORPORATION

  
	
  401(k) SAVINGS AND INVESTMENT PLAN

  
	
  STOCK TRUST AGREEMENT

  
	
   

  
	
  AMENDMENT NUMBER 2

  

WHEREAS,
Cleco Power LLC ("Cleco Power") (the successor to Cleco Utility Group, Inc.,
which was formerly known as Cleco Corporation and Central Louisiana Electric
Company, Inc.) maintains the Cleco Power LLC 401(k) Savings and Investment Plan
(formerly known as the Cleco Utility Group, Inc. 401(k) Savings and Investment
Plan, the Cleco Corporation 401(k) Savings and Investment Plan, and the Central
Louisiana Electric Company, Inc. 401(k) Savings and Investment Plan), as that
plan has been amended from time to time (the "Plan"); and

WHEREAS, in
connection with the Plan, Cleco Power maintains the Cleco Corporation 401(k)
Savings and Investment Plan Stock Trust Agreement (the "Trust"), which Trust
was most recently amended and restated effective as of August 1, 1997; and

WHEREAS, the
Board of Managers of Cleco Power possesses the authority to remove the Trustee
and to amend the Trust, pursuant to Articles Twelfth and Thirteenth thereof;
and

WHEREAS, on
December 12, 2003, the Board of Managers of Cleco Power removed UMB Bank, N.A.,
a national banking association, having its principal place of business at
Kansas City, Missouri ("UMB Bank, N.A.") as trustee and appointed JPMorgan Chase
Bank as Successor Trustee.

             NOW, THEREFORE,  effective as of January 1, 2004, the Trust is amended as follows:

1.         The
name of the Trust is changed to "Cleco Power LLC 401(k) Savings and Investment
Plan Stock Trust Agreement."

2.         All
references in the Trust (other than in the Recitals) to Central Louisiana
Electric Company, Inc. or Cleco Corporation are changed to Cleco Power LLC and
all references in the Trust (other than in the Recitals) to the Board of
Directors are changed to the Board of Managers.

3.         All
references in the Trust to UMB Bank, N.A. are changed to JPMorgan Chase
Bank.

4.         The
name and address of the Trustee in the second paragraph of Article Twentieth is
amended to read as follows:

 

 

	
  Cleco Corporation 401(k) Savings and Investment Plan Stock
  Trust Agreement

  Amendment No. 2

  	

  
  Page 1 of 2

  

 

 

	
  JPMorgan Chase Bank

  
	
  Investor Services

  
	
  3 Metro Tech Center, 6th Floor

  
	
  Brooklyn, New York 11245

  
	
  Attn: JPMorgan Retirement Plan Services Account
  Representative

  

 

5.         Article
Twenty-First is amended to substitute "Louisiana" in place of "Missouri."

THIS AMENDMENT may have been executed in multiple counterparts, each
of which shall has been deemed an original.

	
  CLECO POWER LLC

  
	
   

  
	
  By:  /s/
  Catherine C. Powell                         

  
	

  
	
  Its:  Sr.
  Vice President - Corporate Services

  
	

  
	
  Date:     4/23/04                                            

  
	

  

REVIEWED AND ACCEPTED by JPMorgan Chase Bank, appointed as the Trustee under
the Trust.

	
  JPMORGAN
  CHASE BANK

  
	
   

  
	
  By:  /s/ James K.
  Bartley                             

  
	

  
	
  Its:  Vice
  President                                      

  
	

  
	
  Date:  
  5/25/04                                             

  

 

	
  Cleco Corporation 401(k) Savings and Investment Plan Stock
  Trust Agreement

  Amendment No. 2

  	

  
  Page 2 of 2CONFORMED CLECO CORP CREDIT AGREEMENT, Exhibit 10(c)

EXHIBIT 10(c)

EXECUTION COPY

  

	
    
  

  
	
   

  
	
  CREDIT AGREEMENT

  

  dated as of April 30, 2004

  

  among

  

  CLECO CORPORATION,

  as Borrower

  

  The Lenders Party Hereto

  

  BANK ONE, NA,

  as Syndication Agent

  

  WESTLB AG, NEW YORK BRANCH,

  as Documentation Agent

  

  ALLIED IRISH BANKS, P.L.C.

  COBANK, ACB

  COMMERZBANK AG, NEW YORK AND GRAND CAYMAN BRANCHES

  and

  KEYBANK NATIONAL ASSOCIATION,

  as Managing Agents

  

  and

  

  THE BANK OF NEW YORK, 

  as Administrative Agent

  ___________________________

  BNY CAPITAL MARKETS, INC., 

  and 

  BANC ONE CAPITAL MARKETS, INC.

  as Co‐Lead Arrangers

  BNY CAPITAL MARKETS, INC., 

  as Book Runner

  
	
   

  
	
  Bryan Cave LLP

  1290 Avenue of the Americas

  New York, New York 10104

  

  
 

TABLE OF CONTENTS

Page

	
  ARTICLE 1. DEFINITIONS

   

  	
  
  1

  
	

  

  
	
  Section 1.1

  	
  Defined Terms

  	
  
  1

  
	

  

  
	
  Section 1.2

  	
  Terms Generally

  	
  
  19

  
	

  

  
	
  Section 1.3

   

  	
  Accounting Terms

   

  	
  
  19

  
	

  ARTICLE 2. AMOUNT AND TERMS
  OF LOANS

   

  	
  
  19

  
	

  

  
	
  Section 2.1

  	
  Revolving Credit Loans

  	
  
  19

  
	

  

  
	
  Section 2.2

  	
  Notes

  	
  
  20

  
	

  

  
	
  Section 2.3

  	
  Revolving Credit Loans;
  Procedure

  	
  
  20

  
	

  

  
	
  Section 2.4

  	
  Competitive Bid Loans;
  Procedure

  	
  
  21

  
	

  

  
	
  Section 2.5

  	
  Termination and Reduction
  of Aggregate Commitments

  	
  
  23

  
	

  

  
	
  Section 2.6

  	
  Prepayments of the Loans

  	
  
  24

  
	

  

  
	
  Section 2.7

  	
  Conversions and
  Continuations

  	
  
  25

  
	

  

  
	
  Section 2.8

  	
  Letters of Credit

  	
  
  26

  
	

  

  
	
  Section 2.9

  	
  Interest Rate and Payment
  Dates

  	
  
  30

  
	

  

  
	
  Section 2.10

  	
  Substituted Interest Rate

  	
  
  31

  
	

  

  
	
  Section 2.11

  	
  Taxes

  	
  
  31

  
	

  

  
	
  Section 2.12

  	
  Increased Costs; Illegality

  	
  
  33

  
	

  

  
	
  Section 2.13

  	
  Break Funding Payments

  	
  
  34

  
	

  

  
	
  Section 2.14

  	
  Lenders' Records

  	
  
  35

  
	

  

  
	
  Section 2.15

   

  	
  Substitution of Lender

   

  	
  
  35

  
	
  ARTICLE 3. FEES; PAYMENTS

   

  	
  
  36

  
	

  

  
	
  Section 3.1

  	
  Fees

  	
  
  36

  
	

  

  
	
  Section 3.2

   

  	
  Pro Rata Treatment and
  Application of Principal Payments

   

  	
  
  36

  
	
  ARTICLE 4. REPRESENTATIONS
  AND WARRANTIES

   

  	
  
  38

  
	

  

  
	
  Section 4.1

  	
  Subsidiaries;
  Capitalization

  	
  
  38

  
	

  

  
	
  Section 4.2

  	
  Existence and Power

  	
  
  38

  
	

  

  
	
  Section 4.3

  	
  Authority
   

  	
  
  38

  
	

  

  
	
  Section 4.4

  	
  Binding Agreement

  	
  
  38

  
	

  

  
	
  Section 4.5

  	
  Litigation and Regulatory
  Proceedings

  	
  
  38

  
	

  

  
	
  Section 4.6

  	
  Required Consents

  	
  
  39

  
	

  

  
	
  Section 4.7

  	
  No Conflicting Agreements,
  Compliance with Laws

  	
  
  39

  
	

  

  
	
  Section 4.8

  	
  Governmental Regulations

  	
  
  39

  
	

  

  
	
  Section 4.9

  	
  Federal Reserve
  Regulations; Use of Loan Proceeds

  	
  
  40

  
	

  

  
	
  Section 4.10

  	
  Plans

  	
  
  40

  
	

  

  
	
  Section 4.11

  	
  Financial Statements

  	
  
  40

  
	

  

  
	
  Section 4.12

  	
  Property

  	
  
  40

  
	

  

  
	
  Section 4.13

   

  	
  Environmental Matters

   

  	
  
  41

  
	
  ARTICLE 5. CONDITIONS TO
  EFFECTIVENESS

   

  	
  
  41

  
	

  

  
	
  Section 5.1

  	
  Evidence of Action

  	
  
  41

  
	

  

  
	
  Section 5.2

  	
  This Agreement

  	
  
  42

  
	

  

  
	
  Section 5.3

  	
  Notes

  	
  
  42

  
	

  

  
	
  Section 5.4

  	
  Approvals

  	
  
  42

  
	

  

  
	
  Section 5.5

  	
  Certain Agreements

  	
  
  42

  
	

  

  
	
  Section 5.6

  	
  Opinion of Counsel to the
  Borrower

  	
  
  42

  
	

  

  
	
  Section 5.7

  	
  Terminating Indebtedness

  	
  
  42

  
	

  

  
	
  Section 5.8

  	
  Compliance; Officer's
  Certificate

  	
  
  43

  

 

TABLE OF CONTENTS

(continued)

Page

	

  

  
	
  Section 5.9

   

  	
  Fees and Expenses

   

  	
  43

  
	
  ARTICLE 6.
  CONDITIONS OF LENDING ‐ ALL LOANS

   

  	
  43

  
	

  

  
	
  Section 6.1

  	
  Compliance

  	
  43

  
	

  

  
	
  Section 6.2

  	
  Credit Request; Competitive
  Bid Request

  	
  43

  
	

  

  
	
  Section 6.3

  	
  Law

  	
  43

  
	

  

  
	
  Section 6.4

   

  	
  Other Documents

   

  	
  43

  
	
  ARTICLE 7. AFFIRMATIVE
  COVENANTS

   

  	
  44

  
	

  

  
	
  Section 7.1

  	
  Financial Statements

  	
  44

  
	

  

  
	
  Section 7.2

  	
  Certificates; Other
  Information

  	
  45

  
	

  

  
	
  Section 7.3

  	
  Legal Existence

  	
  45

  
	

  

  
	
  Section 7.4

  	
  Taxes

  	
  45

  
	

  

  
	
  Section 7.5

  	
  Insurance

  	
  46

  
	

  

  
	
  Section 7.6

  	
  Payment of Indebtedness and
  Performance of Obligations

  	
  46

  
	

  

  
	
  Section 7.7

  	
  Condition of Property

  	
  46

  
	

  

  
	
  Section 7.8

  	
  Observance of Legal
  Requirements

  	
  46

  
	

  

  
	
  Section 7.9

  	
  Inspection of Property;
  Books and Records; Discussions

  	
  47

  
	

  

  
	
  Section 7.10

  	
  Licenses, Intellectual
  Property

  	
  47

  
	

  

  
	
  Section 7.11

  	
  Financial Covenants

  	
  47

  
	

  

  
	
  Section 7.12

   

  	
  Use of Proceeds

   

  	
  47

  
	
  ARTICLE 8.
  NEGATIVE COVENANTS

   

  	
  47

  
	

  

  
	
  Section 8.1

  	
  Indebtedness

  	
  48

  
	

  

  
	
  Section 8.2

  	
  Liens

  	
  48

  
	

  

  
	
  Section 8.3

  	
  Merger, Consolidation,
  Purchase or Sale of Assets, Etc.

  	
  50

  
	

  

  
	
  Section 8.4

  	
  Loans, Advances,
  Investments, etc.

  	
  52

  
	

  

  
	
  Section 8.5

  	
  Amendments, etc. of
  Employee Stock Ownership Plan

  	
  52

  
	

  

  
	
  Section 8.6

  	
  Restricted Payments

  	
  52

  
	

  

  
	
  Section 8.7

  	
  Transactions with
  Affiliates

  	
  53

  
	

  

  
	
  Section 8.8

  	
  Restrictive Agreements

  	
  53

  
	

  

  
	
  Section 8.9

  	
  Permitted Hedge Agreements

  	
  54

  
	

  

  
	
  Section 8.10

   

  	
  Covenants Applicable to the
  Unrestricted Subsidiary Group

   

  	
  54

  
	
  ARTICLE 9.
  EVENTS OF DEFAULT

   

  	
  55

  
	
  ARTICLE 10.
  THE ADMINISTRATIVE AGENT

   

  	
  58

  
	

  

  
	
  Section 10.1

  	
  Appointment

  	
  58

  
	

  

  
	
  Section 10.2

  	
  Delegation of Duties

  	
  58

  
	

  

  
	
  Section 10.3

  	
  Exculpatory Provisions

  	
  58

  
	

  

  
	
  Section 10.4

  	
  Reliance by Administrative
  Agent

  	
  58

  
	

  

  
	
  Section 10.5

  	
  Notice of Default

  	
  59

  
	

  

  
	
  Section 10.6

  	
  Non Reliance on
  Administrative Agent and Other Lenders

  	
  59

  
	

  

  
	
  Section 10.7

  	
  Administrative Agent in Its
  Individual Capacity

  	
  60

  
	

  

  
	
  Section 10.8

   

  	
  Successor Administrative
  Agent

   

  	
  60

  
	
  ARTICLE 11.
  OTHER PROVISIONS

   

  	
  60

  
	

  

  
	
  Section 11.1

  	
  Amendments and Waivers

  	
  60

  
	

  

  
	
  Section 11.2

  	
  Notices

  	
  61

  

(ii)

TABLE OF CONTENTS

(continued)

Page

	

  	
  Section 11.3

  	
  Survival

  	
  62

  
	

  	
  Section 11.4

  	
  Expenses; Indemnity; Damage
  Waiver

  	
  62

  
	

  	
  Section 11.5

  	
  Lending Offices   

  	
  63

  
	

  	
  Section 11.6

  	
  Assignments and
  Participations

  	
  63

  
	

  	
  Section 11.7

  	
  Counterparts; Integration;
  Effectiveness

  	
  65

  
	

  	
  Section 11.8

  	
  Severability

  	
  65

  
	

  	
  Section 11.9

  	
  Right of Set off

  	
  66

  
	

  	
  Section 11.10

  	
  Governing Law;
  Jurisdiction; Consent to Service of Process

  	
  66

  
	

  	
  Section 11.11

  	
  WAIVER OF JURY TRIAL

  	
  67

  
	

  	
  Section 11.12

  	
  Headings

  	
  67

  

 SCHEDULES:

	
  Schedule 1.1

  	
  List of Existing Letters of
  Credit

  
	
  Schedule 4.1

  	
  List of Subsidiaries

  
	
  Schedule 4.5

  	
  List of Litigation and
  Regulatory Proceedings

  
	
  Schedule 4.13

  	
  List of Environmental
  Matters

  
	
  Schedule 8.2

  	
  List of Existing Liens

  
	
  Schedule 8.8

  	
  List of Existing
  Restrictions

  
	
  Schedule 8.10(b)

  	
  List of Existing
  Unrestricted Subsidiary Group Liens

  
	
  Schedule 8.10(c)

  	
  List of Existing Unrestricted
  Subsidiary Group Restrictions

  

 

EXHIBITS:

	
  Exhibit A

  	
  List of Commitments

  
	
  Exhibit B

  	
  Form of Note

  
	
  Exhibit C

  	
  Form of Credit Request

  
	
  Exhibit D

  	
  Form of Competitive Bid
  Request

  
	
  Exhibit E

  	
  Form of Invitation to Bid

  
	
  Exhibit F

  	
  Form of Competitive Bid

  
	
  Exhibit G

  	
  Form of Competitive Bid
  Accept/Reject Letter

  
	
  Exhibit H

  	
  Form of Competitive Bid
  Loan Confirmation

  
	
  Exhibit I

  	
  Form of Notice of
  Conversion/Continuation

  
	
  Exhibit J

  	
  Form of Assignment and
  Acceptance Agreement

  
	
  Exhibit K

  	
  Form of Opinion of Counsel
  to the Borrower

  
	
  Exhibit L

  	
  Approved Subordination
  Terms

  
	
  Exhibit M

  	
  Form of Compliance
  Certificate

  

(iii)

CREDIT
AGREEMENT, dated as of April 30, 2004, by and among CLECO CORPORATION, the
Lenders party hereto, BANK ONE, NA, as syndication agent hereunder, WESTLB AG,
NEW YORK BRANCH, as documentation agent hereunder, ALLIED IRISH BANKS, P.L.C.,
COBANK, ACB, COMMERZBANK AG, NEW YORK AND GRAND CAYMAN BRANCHES and KEYBANK
NATIONAL ASSOCIATION, as managing agents hereunder and THE BANK OF NEW YORK, as
Administrative Agent for the Lenders hereunder.

ARTICLE 1.  DEFINITIONS

Section 1.1  Defined
Terms

As used in this
Agreement, terms defined in the preamble have the meanings therein indicated,
and the following terms have the following meanings:

"ABR
Advances": the Revolving Credit Loans (or any portions thereof) at such time
as they (or such portions) are made and/or being maintained at a rate of
interest based upon the Alternate Base Rate.

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

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

"Accountants":
PricewaterhouseCoopers, L.L.P. (or any successor thereto), or such other firm
of certified public accountants of recognized national standing selected by the
Borrower.  

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

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

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

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

"Advance":
with respect to a Revolving Credit Loan, an ABR Advance or a Eurodollar
Advance, as the case may be.

"Affected
Advance": as defined in Section 2.10.

"Affiliate":
with respect to a specified Person, another Person that directly, or indirectly
through one or more intermediaries, controls or is controlled by or is under
common control with the Person specified.

"Agents":
collectively, the Administrative Agent, the Syndication Agent, the
Documentation Agent and the Managing Agents.

"Aggregate
Commitments": on any date, the sum of all Commitments on such date.  The
initial amount of the Aggregate Commitments on the Agreement Date is $150,000,000.

"Agreement":
this Credit Agreement.

"Agreement
Date": the first date appearing in this Agreement.

"Alternate
Base Rate": on any date, a rate of interest per annum equal to the higher
of (i) the Federal Funds Rate in effect on such date plus 1/2 of 1% or (ii) the
BNY Rate in effect on such date.

"Applicable
Facility Fee Percentage": with respect to the amount of the Aggregate
Commitments, at all times during which the applicable Pricing Level set forth
below is in effect, the percentage set forth below next to such Pricing Level,
subject to the provisos set forth below:

  

	
  Pricing Level

  
  

  	
  Applicable

  Facility Fee

  Percentage

  
  

  
	
  Pricing Level I

  	
  0.175%

  
	
  Pricing Level II

  	
  0.225%

  
	
  Pricing Level III

  	
  0.250%

  
	
  Pricing Level IV

  	
  0.275%

  
	
  Pricing Level V

  	
  0.350%

  
	
  Pricing Level VI

  	
  0.600%

  
	
  Pricing Level VII

  	
  0.750%

  

  

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

"Applicable
Lending Office": in respect of any Lender, (i) in the case of such Lender's
ABR Advances and Competitive Bid Loans, its Domestic Lending Office or (ii) in
the case of such Lender's Eurodollar Advances, its Eurodollar Lending Office.

-2-

"Applicable Margin":
 

(a)        subject to the
provisions of clause (b) below, with respect to the unpaid principal amount of
Eurodollar Advances and LC Fees at all times during which the applicable
Pricing Level set forth below is in effect, the percentage set forth below next
to such Pricing Level, subject to the provisos set forth in clause (d) below:

  

	
  Pricing Level

  
  

  	
  Applicable

  Margin

  
  

  
	
  Pricing Level I

  	
  0.700%

  
	
  Pricing Level II

  	
  0.775%

  
	
  Pricing Level III

  	
  1.000%

  
	
  Pricing Level IV

  	
  1.225%

  
	
  Pricing Level V

  	
  1.400%

  
	
  Pricing Level VI

  	
  1.400%

  
	
  Pricing Level VII

  	
  2.250%

  

  

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

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

"Approved
Subordination Terms": terms of subordination substantially as set forth on Exhibit
L.

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

"Assignment
and Acceptance Agreement": an assignment and acceptance agreement executed
by a Lender and an assignee (with the consent of any party whose consent is
required by Section 11.6), and accepted by the Administrative Agent,
substantially in the form of Exhibit J.

"Bank One":
Bank One, NA.

-3-

"Bid Rate": as defined in
Section 2.4(b).

"BNY":
The Bank of New York.

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

"Borrower":
Cleco Corporation, a Louisiana corporation.

"Borrower
Financial Statements": as defined in Section 4.11(a).

"Borrowing
Date": any Business Day on which (i) the Lenders make Revolving Credit
Loans in accordance with a Credit Request, (ii) one or more Lenders make
Competitive Bid Loans pursuant to Competitive Bids which have been accepted by
the Borrower or (iii) the Issuing Bank issues a Letter of Credit or a Letter of
Credit is renewed, extended or amended.

"Business
Day": for all purposes other than as set forth in clause (ii) below, (i)
any day other than a Saturday, a Sunday or a day on which commercial banks
located in New York City are authorized or required by law or other
governmental action to close and (ii) with respect to all notices and
determinations in connection with, and payments of principal and interest on,
Eurodollar Advances, any day which is a Business Day described in clause (i)
above and which is also a day on which dealings in foreign currency and
exchange and Eurodollar funding between banks may be carried on in London,
England.

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

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

"Change in
Law": (i) the adoption of any law, rule or regulation after the Agreement
Date, (ii) any change in any law, rule or regulation or in the interpretation
or application thereof by any  

-4-

Governmental Authority after the Agreement Date
or (iii) compliance by any  Credit Party (or, for purposes of
Section 2.12(b), by any lending office of such Credit Party or by such Credit
Party's holding company, if any) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or
issued after the Agreement Date.

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

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

"Closing
Date": the date on which the conditions specified in Article 5 are
satisfied (or waived in accordance with Section 11.1).

"Code":
the Internal Revenue Code of 1986.

"Commitment":
with respect to each Lender, the commitment of such Lender to make Revolving
Credit Loans and to acquire participations in Letters of Credit hereunder in an
aggregate outstanding amount not exceeding the amount of such Lender's
Commitment as set forth on Exhibit A or in the Assignment and Acceptance
Agreement pursuant to which such Lender shall have assumed its Commitment, as
applicable, as such Commitment may be increased or reduced from time to time
pursuant to Section 2.5 or pursuant to assignments by or to such Lender
pursuant to Section 11.6.  

"Commitment
Percentage": as of any date and with respect to each Lender, the percentage
equal to a fraction (i) the numerator of which is the Commitment of such Lender
on such date (or, if there are no Commitments on such date, on the last date
upon which one or more Commitments were in effect), and (ii) the denominator of
which is the sum of the Commitments of all Lenders on such date (or, if there
are no Commitments on such date, on the last date upon which one or more
Commitments were in effect).

"Commitment
Period": the period from the Closing Date to but excluding the earlier of
the Maturity Date or, if different, the date of termination of the Commitments.

"Competitive
Bid": an offer by a Lender, in the form of Exhibit F, to make a
Competitive Bid Loan.

"Competitive
Bid Accept/Reject Letter": a notification given by the Borrower pursuant to
Section 2.4 in the form of Exhibit G.

"Competitive
Bid Loan": each Loan from a Lender to the Borrower pursuant to Section 2.4.

"Competitive
Bid Loan Confirmation": a confirmation by the Administrative Agent to a
Lender of the acceptance by the Borrower of any Competitive Bid (or Portion
thereof) made by such Lender, substantially in the form of Exhibit H.

"Competitive
Bid Request": a request by the Borrower, substantially in the form of Exhibit
D, for Competitive Bids.

"Competitive
Interest Period": as to any Competitive Bid Loan, the period commencing on
the date of such Competitive Bid Loan and ending on the date requested in the
Competitive Bid  

-5-

Request with respect to such
Competitive Bid Loan, which date shall not be earlier than 7 days after the
date of such Competitive Bid Loan or later than 180 days after the date of such
Competitive Bid Loan; provided, however, that if any Competitive
Interest Period would end on a day other than a Business Day, such Interest
Period shall be extended to the next succeeding Business Day, unless such next
succeeding Business Day would be a date on or after the Maturity Date, in which
case such Competitive Interest Period shall end on the next preceding Business
Day, and provided further that no Competitive Interest Period shall end
after the Maturity Date. Interest shall accrue from and including the first day
of a Competitive Interest Period to but excluding the last day of such
Competitive Interest Period.

"Compliance
Certificate": a certificate substantially in the form of Exhibit M.

"Contingent
Obligation": as to any Person, any obligation of such Person guaranteeing
or in effect guaranteeing any return on any investment made by another Person
or any Indebtedness, lease, dividend or other obligation of any other Person in
any manner, whether contingent or whether directly or indirectly, including any
obligation in respect of the liabilities of any partnership in which such other
Person is a general partner, except to the extent that such liabilities of such
partnership are nonrecourse to such other Person and its separate Property. The
amount of any Contingent Obligation of a Person shall be deemed to be an amount
equal to the stated or determinable amount of the primary obligation in respect
of which such Contingent Obligation is made or, if not stated or determinable,
the maximum reasonably anticipated liability in respect thereof as determined
by such Person in good faith, provided that, notwithstanding anything in
this definition to the contrary, the amount of any Contingent Obligation of a
Person in respect of any Permitted Hedge Agreement by any other Person with a
counterparty shall be deemed to be the maximum reasonably anticipated liability
of such other Person, as determined in good faith by such Person, net of any
obligation or liability of such counterparty in respect of any Permitted Hedge
Agreement with such Person, provided further that the obligations
of such other Person under such Permitted Hedge Agreement with such
counterparty shall be terminable at the election of such other Person in the
event of a default by such counterparty in its obligations to such other
Person.

"Conversion/Continuation
Date": the date on which (i) a Eurodollar Advance is converted to an ABR
Advance, (ii) the date on which an ABR Advance is converted to a Eurodollar
Advance or (iii) the date on which a Eurodollar Advance is continued as a new
Eurodollar Advance.  

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

"Credit
Exposure": means, with respect to any Lender at any time, such Lender's
Revolving Credit Exposure, plus the outstanding principal amount of such
Lender's Competitive Bid Loans at such time.  

"Credit
Parties": collectively, the Agents, the Issuing Bank and the Lenders.

"Credit Request":
a request for Revolving Credit Loans and New Letters of Credit in the form of Exhibit
C.

"Default":
any of the events specified in Article 9, whether or not any requirement for
the giving of notice, the lapse of time, or both, or any other condition, has
been satisfied.

"Documentation
Agent": WestLB AG, in its capacity as documentation agent for the Lenders
hereunder.

-6-

"Dollars"
and "$": lawful currency of the United States.

"Domestic
Lending Office": in respect of any Lender, initially, the office or offices
of such Lender designated as such on its Administrative Questionnaire;
thereafter, such other office of such Lender through which it shall be making
or maintaining ABR Advances or Competitive Bid Loans, as reported by such
Lender to the Administrative Agent and the Borrower, provided that any
Lender may so report different Domestic Lending Offices for all of its ABR
Advances and all of its Competitive Bid Loans, whereupon references to the
Domestic Lending Office of such Lender shall mean either or both of such
offices, as applicable.  

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

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

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

"Environmental
Laws": any and all federal, state and local laws relating to the use,
storage, transporting, manufacturing, handling, discharge, disposal or
recycling of Hazardous Substances or pollutants and including (i) the
Comprehensive Environmental Response, Compensation and Liability Act, as
amended, 42 USCA §9601 et seq., (ii) the Resource Conservation and Recovery Act
of 1976, as amended, 42 USCA §6901 et seq., (iii) the Toxic Substance Control
Act, as amended, 15 USCA §2601 et. seq., (iv) the Water Pollution Control Act,
as amended, 33 USCA §1251 et. seq., (v) the Clean Air Act, as amended, 42 USCA
§7401 et seq., (vi) the Hazardous Materials Transportation Authorization Act of
1994, as amended, 49 USCA §5101 et seq., and (viii) all rules and regulations
under any of the foregoing and under any analogous state laws, judgments, decrees
and injunctions and any analogous state laws applicable to the Borrower or any
of the Restricted Subsidiaries.  

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

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

"ERISA Event":
(i) any "reportable event", as defined in Section 4043 of ERISA or the
regulations issued thereunder with respect to a Plan (other than an event for
which the 30 day notice period is waived); (ii) the existence with respect to
any Plan of an "accumulated funding deficiency" (as  

-7-

defined in Section 412 of the
Code or Section 302 of ERISA), whether or not waived; (iii) the filing pursuant
to Section 412(d) of the Code or Section 303(a) of ERISA of an application for
a waiver of the minimum funding standard with respect to any Plan; (iv) the
incurrence by the Borrower, any Subsidiary or any ERISA Affiliate of any
liability under Title IV of ERISA with respect to the termination of any Plan;
(v) the receipt by the Borrower, any Subsidiary or any ERISA Affiliate from the
PBGC or a plan administrator of any notice relating to an intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan;
(vi) the incurrence by the Borrower, any Subsidiary or any ERISA Affiliate of
any liability with respect to the withdrawal or partial withdrawal from any
Plan or Multiemployer Plan; or (vii) the receipt by the Borrower, any
Subsidiary or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from the Borrower, any Subsidiary or any ERISA Affiliate of
any notice, concerning the imposition of Withdrawal Liability or a
determination that a Multiemployer Plan is, or is expected to be, insolvent or
in reorganization, within the meaning of Title IV of ERISA.

"Eurodollar
Advances": collectively, the Revolving Credit Loans (or any portions
thereof) at such time as they (or such portions) are made and/or being
maintained at a rate of interest based upon the Eurodollar Rate.

"Eurodollar
Interest Period": with respect to any Eurodollar Advance requested by the
Borrower, the period commencing on, as the case may be, the Borrowing Date or
the Conversion/Continuation Date with respect to such Eurodollar Advance and
ending one, two, three or six months thereafter, as selected by the Borrower in
its irrevocable Credit Request or its irrevocable Notice of
Conversion/Continuation, provided, however, that (i) if any
Eurodollar Interest Period would otherwise end on a day which is not a Business
Day, such Eurodollar Interest Period shall be extended to the next succeeding
Business Day unless the result of such extension would be to carry such
Interest Period into another calendar month or beyond the Maturity Date, in
which event such Eurodollar Interest Period shall end on the immediately
preceding Business Day, (ii) any Eurodollar Interest Period that begins on the
last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such
Eurodollar Interest Period) shall end on the last Business Day of a calendar
month and (iii) the Borrower shall select Interest Periods so as not to have
more than five different Eurodollar Interest Periods outstanding at any one
time for all Eurodollar Advances.

"Eurodollar
Lending Office": in respect of any Lender, initially, the office, branch or
affiliate of such Lender designated as such on its Administrative Questionnaire
(or, if no such office branch or affiliate is specified, its Domestic Lending
Office); thereafter, such other office, branch or affiliate of such Lender
through which it shall be making or maintaining Eurodollar Advances, as
reported by such Lender to the Administrative Agent and the Borrower.

"Eurodollar Rate": with respect to the
Eurodollar Interest Period applicable to any Eurodollar Advance, a rate of
interest per annum, as determined by the Administrative Agent and then rounded
to the nearest 1/16 of 1% or, if there is no nearest 1/16 of 1%, then to the
next higher 1/16 of 1%, equal to the rate appearing on the Dow Jones Markets
Telerate Page 3750 (or on any successor or substitute page of such Service, or
any successor to or substitute for such Service, providing rate quotations
comparable to those currently provided on such page of such Service, as determined
by the Administrative Agent from time to time for purposes of providing
quotations of interest rates applicable to dollar deposits in the London interbank
market) at approximately 11:00 a.m., London time, two Business Days prior to
the commencement of such Eurodollar Interest Period, as the rate for dollar
deposits with a maturity comparable to such Eurodollar Interest Period.  In the
event that such rate does not appear on the Dow Jones Markets Telerate Page
3750 (or on any such successor or substitute page, or any successor to or
substitute for such Service) at such time for any reason, then the "Eurodollar
Rate" with respect to such Eurodollar Advance for such Eurodollar Interest
Period shall be the rate of interest per annum, as determined by the
Administrative Agent and then rounded to the nearest 1/16 of 1% or, if  

-8-

there is no nearest 1/16 of 1%,
then to the next higher 1/16 of 1%, equal to the rate, as reported by BNY to
the Administrative Agent, quoted by BNY to leading banks in the interbank eurodollar
market as the rate at which BNY is offering Dollar deposits in an amount equal
approximately to the Eurodollar Advance of BNY to which such Eurodollar
Interest Period shall apply for a period equal to such Eurodollar Interest
Period, as quoted at approximately 11:00 a.m. two Business Days prior to the
first day of such Eurodollar Interest Period.

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

"Event of
Default": any of the events specified in Article 9, provided that
any requirement specified in Article 9 for the giving of notice, the lapse of
time, or both, or any other condition specified in Article 9, has been
satisfied.

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

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

"Facility
Fee": as defined in Section 3.1(a).

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

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

"Foreign Lender":
any Lender that is organized under the laws of a jurisdiction other than United
States, any State thereof or the District of Columbia.

"GAAP":
generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and in the statements and pronouncements of the
Financial Accounting Standards Board or in such other statement by such other
entity as may be approved by a significant segment of the accounting
profession, which are applicable to the circumstances as of the date of
determination, consistently applied.  If at any time any change in GAAP would
affect the computation of any financial requirement set forth in this
Agreement, the Administrative Agent, the Lenders and the Borrower shall
negotiate in good faith to amend such requirement to reflect such change in
GAAP (subject to the approval of the Required Lenders), provided that,
until so amended, (i) such requirement shall continue to be computed in
accordance with GAAP prior to such change therein and (ii) the Borrower shall
provide to  

-9-

the Credit Parties financial
statements and other documents required under this Agreement or as reasonably
requested hereunder setting forth a reconciliation between calculations of such
requirement made before and after giving effect to such change in GAAP.

"Governmental
Authority": any nation or government, any state or other political
subdivision thereof, any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government and any
court or arbitrator.

"Hazardous
Substance": (i) any hazardous or toxic substance, material or waste listed
in the United States Department of Transportation Hazardous Materials Table (49
CFR §172.101) or by the Environmental Protection Agency as hazardous substances
(40 CFR Part 302), and amendments thereto and replacements therefor, and (ii)
any substance, pollutant or material defined as, or designated in, any Environmental
Law as a "hazardous substance," "toxic substance," "hazardous material,"
"hazardous waste," "restricted hazardous waste," "pollutant," "toxic pollutant"
or words of similar import.

"Highest
Lawful Rate": as to any Lender, the maximum rate of interest, if any, that
at any time or from time to time may be contracted for, taken, charged or
received by such Lender on the Note held thereby or which may be owing to such
Lender pursuant to this Agreement and the other Loan Documents under the laws applicable
to such Lender and this transaction.

"Indebtedness":
as to any Person, at a particular time, all items which constitute, without
duplication, (i) indebtedness for borrowed money or the deferred purchase price
of Property (other than trade payables incurred in the ordinary course of
business), (ii) indebtedness evidenced by notes, bonds, debentures or similar
instruments, (iii) obligations with respect to any conditional sale or title
retention agreement, (iv) indebtedness arising under acceptance facilities and
the amount available to be drawn under all letters of credit issued for the
account of such Person and, without duplication, all drafts drawn thereunder to
the extent such Person shall not have reimbursed the issuer in respect of the
issuer's payment of such drafts, (v) all liabilities secured by any Lien on any
Property owned by such Person even though such Person has not assumed or
otherwise become liable for the payment thereof (other than carriers',
warehousemen's, mechanics', repairmen's or other like non consensual statutory
Liens arising in the ordinary course of business), (vi) liabilities in respect
of any obligation (contingent or otherwise) to purchase, redeem, retire,
acquire or make any other payment in respect of any shares of equity securities
or any option, warrant or other right to acquire any shares of equity
securities, (vii) obligations under Capital Lease Obligations, (viii)
Contingent Obligations of such Person in respect of Indebtedness of others and
(ix) to the extent not otherwise included, all net obligations of such Person
under Permitted Hedge Agreements.

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

 "Indemnified
Person": as defined in Section 11.4(b).

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

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

-10-

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

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

"Inter‐Affiliate
Policies Agreement": the Inter‐Affiliate Policies and the Inter‐Affiliate
Procedures of Cleco Corporation, each dated as of December 4, 2002.

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

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

"Interest
Payment Date": (i) as to any ABR Advance, the last day of each March, June,
September and December commencing on the first of such days to occur after such
ABR Advance is made or any Eurodollar Advance is converted to an ABR Advance,
(ii) as to any Eurodollar Advance in respect of which the Borrower has selected
a Eurodollar Interest Period of one, two or three months, the last day of such
Interest Period, (iii) as to any Eurodollar Advance in respect of which the
Borrower has selected a Eurodollar Interest Period of six months, the day which
is three months after the first day of such Interest Period and the last day of
such Interest Period, (iv) as to any Competitive Bid Loan as to which the
Borrower has selected an Interest Period of 90 days or less, the last day of
such Competitive Interest Period, and (v) as to any Competitive Bid Loan as to
which the Borrower has selected a Competitive Interest Period of more than 90
days, the day which is 90 days after the first day of such Competitive Interest
Period and the last day of each subsequent 90 day period thereafter or, if
sooner, the last day of such Competitive Interest Period.

"Interest
Period": a Eurodollar Interest Period or a Competitive Interest Period, as
the context may require.

"Invitation
to Bid": an invitation to make Competitive Bids in the form of Exhibit E.

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

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

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

"LC Fee":
as defined in Section 3.1(b).

-11-

"Lenders":
the Persons listed on Exhibit A and any other Person that shall have
become a party hereto pursuant to an Assignment and Acceptance Agreement, other
than any such Person that ceases to be a party hereto pursuant to an Assignment
and Acceptance Agreement.

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

"Lien":
any mortgage, pledge, hypothecation, assignment, deposit or preferential
arrangement, encumbrance, lien (statutory or other), or other security
agreement or security interest of any kind or nature whatsoever, including any
conditional sale or other title retention agreement and any capital or
financing lease having substantially the same economic effect as any of the
foregoing.

"Loan
Documents": collectively, this Agreement, the Notes and the documentation
relating to each Letter of Credit.

"Loans":
the Revolving Credit Loans and/or the Competitive Bid Loans, as the case may
be.

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

"Managing
Agents": Allied Irish Banks, p.l.c., Cobank, ACB, Commerzbank AG, New York
and Grand Cayman Branches and Keybank National Association in their capacity as
managing agents for the Lenders hereunder.

 "Margin
Stock": any "margin stock", as defined in Regulation U of the Board of
Governors of the Federal Reserve System, as the same may be amended or
supplemented from time to time.

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

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

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

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

-12-

"Maturity
Date": April 30, 2007.

"Maximum
Offer": as defined in Section 2.4(b).

"Maximum
Request": as defined in Section 2.4(a).

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

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

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

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

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

"Note":
with respect to each Lender in respect of such Lender's Revolving Credit Loans
and Competitive Bid Loans, a promissory note, substantially in the form of Exhibit
B, payable to the order of such Lender; each such promissory note having
been made by the Borrower and dated the Closing Date, including all
replacements thereof and substitutions therefor.

"Notice of
Conversion/Continuation": a notice substantially in the form of Exhibit I.

"Participant":
as defined in Section 11.6(e).

-13-

"PBGC":
the Pension Benefit Guaranty Corporation referred to and defined in ERISA and
any successor entity performing similar functions.

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

"Permitted
Investments":

(a)        direct obligations of,
or obligations the principal of and interest on which are unconditionally
guaranteed by, the United States (or by any agency thereof to the extent that
such obligations are backed by the full faith and credit of the United States),
in each case maturing within one year from the date of acquisition thereof;

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

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

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

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

"Permitted
Liens": Liens permitted to exist under Section 8.2.

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

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

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

-14-

"Person":
any individual, firm, partnership, joint venture, corporation, association,
business enterprise, limited liability company, joint stock company,
unincorporated association, trust, Governmental Authority or any other entity,
whether acting in an individual, fiduciary, or other capacity, and for the
purpose of the definition of "ERISA Affiliate", a trade or business.

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

"Portion":
as defined in Section 2.4(b).

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

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

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

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

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

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

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

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

"Property":
all types of real, personal, tangible, intangible or mixed property.

"Real
Property": all real property owned or leased (or previously owned or
leased) by the Borrower or any of the Restricted Subsidiaries (or any of their
respective predecessors).

"Register":
as defined in Section 11.6(c).

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

-15-

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

"Required
Lenders": at any time, (i) prior to the date on which the Loans have become
due and payable pursuant to Article 9 or the Commitments expire or terminate, Lenders
having Revolving Credit Exposures and unused Commitments representing at least 51%
of the sum of the total Revolving Credit Exposures and unused Commitments at
such time, and (ii) thereafter, Lenders having Credit Exposures and unused
Commitments representing at least 51% of the sum of the total Credit Exposures
and unused Commitments at such time.

"Restricted
Payment": as to any Person, (i) any dividend or other distribution by such
Person (whether in cash, securities or other property) with respect to shares
of any class of any equity securities of such Person, (ii) any payment (whether
in cash, securities or other property), including any sinking fund or similar
deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of any such equity securities, and (iii) any
payment of principal or interest or any purchase, redemption, retirement,
acquisition or defeasance with respect to any Indebtedness of such Person which
is subordinated to the payment of the obligations under the Loan Documents.
 

"Restricted
Subsidiary": collectively, each Subsidiary of the Borrower other than an Unrestricted
Subsidiary.

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

"Revolving
Credit Loan" and "Revolving Credit Loans": as defined in Section
2.1.

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

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

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

"Senior
Notes": the 8.75% Senior Notes due 2005 issued by the Borrower pursuant to
the Indenture.

-16-

"Stock":
any and all shares, rights, interests, participations, warrants or other
equivalents (however designated) of equity in, or ownership of, any entity,
including corporate stock, partnership interests and membership and other
limited liability company interests.

"Submission
Deadline": as defined in Section 2.4(b).

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

"Syndication
Agent": Bank One, in its capacity as syndication agent for the Lenders
hereunder.

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

"Tax on the
Overall Net Income": as to any Person, a Tax imposed by the jurisdiction in
which that Person's principal office (and/or, in the case of a Lender, its
Domestic Lending Office) is located, or by any political subdivision or taxing
authority thereof, or in which that Person is deemed to be doing business, on
all or part of the net income, profits or gains of that Person (whether
worldwide, or only insofar as such income, profits or gains are considered to
arise in or to relate to a particular jurisdiction, or otherwise).

"Terminating
Indebtedness": collectively, the Indebtedness (together with all unpaid and
accrued interest and fees and other unpaid sums) of the Borrower under the 364‐Day
Credit Agreement, dated as of May 7, 2003, by and among the Borrower, the lenders
party thereto, Bank One, NA, as syndication agent, WestLB, as documentation
agent and BNY, as administrative agent, together with all agreements,
instruments and other documents executed or delivered in connection therewith.

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

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

"Tolling
Agreement Counterparty Default": with respect to a Tolling Agreement, (i) the failure by a Tolling Agreement Counterparty to make payments under such Tolling
Agreement (regardless of the cause of such failure (including the breach by the
Borrower, any Subsidiary or Unconsolidated Person of its obligations under such
Tolling Agreement)) after the expiration of any grace  

-17-

or cure period, (ii) the breach by the Tolling Agreement Counterparty of any other covenant or agreement
under such Tolling Agreement (after the expiration of any grace or cure period)
which gives the Borrower, such Subsidiary or such Unconsolidated Person the
right to terminate such Tolling Agreement or (iii) the voluntary or involuntary liquidation, dissolution, insolvency, bankruptcy, receivership or
reorganization of the Tolling Agreement Counterparty.

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

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

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

"United
States": the United States of America.

"Unrestricted
Subsidiaries": collectively, (i) Midstream, (ii) Cleco Support, (iii) CLE Resources, (iv) Innovations, (v)  notwithstanding the fact that Acadia Holdings'
equity interest in Acadia Power is not in excess of 50%, Acadia Power and (vi) each of their respective subsidiaries and each other Person (other than the Utility
or any of the Utility Subsidiaries) designated as an Unrestricted Subsidiary in
accordance with Section 11.13 and each subsidiary thereof.  

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

"Unrestricted
Subsidiary Group Distribution" has the meaning set forth in Section
8.10(a).

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

"Utility
Credit Agreement": the 364‐Day Credit Agreement, dated as of April 30,
2004, by and among the Utility, the lenders party thereto, Bank One, as
syndication agent thereunder, WestLB, as documentation agent thereunder, Allied
Irish Banks, p.l.c., Cobank, ACB, Commerzbank AG, New York and Grand Cayman
Branches and Keybank National Association, as managing agents thereunder and
BNY, as administrative agent thereunder.

"Utility
Financial Statements": as defined in Section 4.11(a).

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

-18-

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

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

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

"WestLB":
WestLB AG, New York Branch.

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

            Section 1.2        Terms Generally

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

            Section 1.3       
 Accounting Terms

Except as
otherwise expressly provided herein, all terms of an accounting or financial
nature shall be construed in accordance with GAAP.  Unless the context otherwise
requires, any reference to a fiscal period shall refer to the relevant fiscal
period of the Borrower.

ARTICLE 2.   AMOUNT AND TERMS OF LOANS

Section 2.1       
 Revolving
Credit Loans

Subject to the
terms and conditions hereof, each Lender severally agrees to make revolving
credit loans (each a "Revolving Credit Loan" and, as the context may
require, collectively with all other Revolving Credit Loans of such Lender and
with the Revolving Credit Loans of all other Lenders, the "Revolving Credit
Loans") to the Borrower from time to time during the Commitment Period, provided,
however, that immediately after giving effect thereto (i) such Lender's
Revolving Credit  

-19-

Exposure would not exceed such
Lender's Commitment, and (ii) the sum of the Credit Exposures of all Lenders
would not exceed the Aggregate Commitments.  During the Commitment Period, the
Borrower may borrow, prepay in whole or in part and reborrow under the
Aggregate Commitments, all in accordance with the terms and conditions of this
Agreement.  The Borrower hereby unconditionally promises to pay to the
Administrative Agent for the account of each Lender the then outstanding
principal balance of each Revolving Credit Loan on the Maturity Date.

Section 2.2       
 Notes

The Revolving
Credit Loans and Competitive Bid Loans made by a Lender shall be evidenced by a
promissory note of the Borrower, substantially in the form of Exhibit B,
payable to the order of such Lender and representing the obligation of the
Borrower to pay the sum of (i) the aggregate unpaid principal balance of all
Revolving Credit Loans made by such Lender plus (ii) the aggregate
unpaid principal balance of all Competitive Bid Loans made by such Lender, in
each case with interest thereon as prescribed in Section 2.9.  Each Note shall
(a) be dated the Closing Date, (b) be stated to mature on the Maturity Date and
(c) bear interest from the date thereof on the unpaid principal balance thereof
at the applicable interest rate or rates per annum determined as provided in
Section 2.9, payable as specified in Section 2.9.  

Section 2.3       
 Revolving
Credit Loans; Procedure

(a)        The
Borrower may borrow Revolving Credit Loans under the Aggregate Commitments on
any Business Day during the Commitment Period, provided, however,
that the Borrower shall notify the Administrative Agent (by telephone or
facsimile) no later than (i) 11:00 a.m., three Business Days prior to the
requested Borrowing Date, in the case of Eurodollar Advances, and (ii) 11:30
a.m., on the requested Borrowing Date, in the case of ABR Advances, in each
case specifying (A) the aggregate principal amount to be borrowed under the
Aggregate Commitments, (B) the requested Borrowing Date, (C) whether such
borrowing is to consist of one or more Eurodollar Advances, ABR Advances, or a
combination thereof, and (D) if the borrowing is to consist of one or more
Eurodollar Advances, the length of the Eurodollar Interest Period for each such
Eurodollar Advance, provided further, however, that no Eurodollar
Interest Period selected in respect of any Revolving Credit Loan shall end
after the Maturity Date.  If the Borrower fails to give timely notice in
connection with a request for a Eurodollar Advance, the Borrower shall be
deemed to have elected that such Advance shall be made as an ABR Advance.  Each
such notice shall be irrevocable and confirmed promptly by delivery to the
Administrative Agent of a Credit Request.  Each ABR Advance shall be in an
aggregate principal amount equal to $5,000,000 or an integral multiple of
$1,000,000 in excess thereof, provided that an ABR Advance may be in an
aggregate amount that is equal to the entire unused balance of the Aggregate
Commitments or in an aggregate amount that is required to finance the
reimbursement of an LC Disbursement as contemplated by Section 2.8(e).  Each
Eurodollar Advance shall be in an aggregate principal amount equal to
$5,000,000 or an integral multiple of $1,000,000 in excess thereof.

(b)        Upon
receipt of each notice of borrowing from the Borrower, the Administrative Agent
shall promptly notify each Lender thereof.  Subject to its receipt of the
notice referred to in the preceding sentence, each Lender will make the amount
of its Commitment Percentage of each borrowing available to the Administrative
Agent for the account of the Borrower at the office of the Administrative Agent
provided for in Section 11.2 not later than 2:00 p.m. on the relevant Borrowing
Date requested by the Borrower, in funds immediately available to the
Administrative Agent at such office.  The amounts so made available to the
Administrative Agent on such Borrowing Date will then, subject to the
satisfaction of the terms and conditions of this Agreement, be made available
on such date to the Borrower by the Administrative Agent at the office of the
Administrative Agent provided for in Section 11.2 by crediting  

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the account of the Borrower on
the books of such office with the aggregate of said amounts received by the
Administrative Agent.  

(c)        Unless
the Administrative Agent shall have received prior notice from a Lender (by
telephone or otherwise, such notice to be promptly confirmed by facsimile or
other writing) that such Lender will not make available to the Administrative
Agent such Lender's Commitment Percentage of the Revolving Credit Loans
requested by the Borrower in accordance with paragraph (b) of this Section or
Section 2.8(e), the Administrative Agent may assume that such Lender has made
such share available to the Administrative Agent on the Borrowing Date in
accordance with this Section, provided that such Lender received notice
of the proposed borrowing from the Administrative Agent, and the Administrative
Agent may, in reliance upon such assumption, make available to the Borrower on
the Borrowing Date a corresponding amount.  If and to the extent such Lender
shall not have so made its Commitment Percentage of such Loans available to the
Administrative Agent, such Lender and the Borrower severally agree to pay to
the Administrative Agent forthwith on demand such corresponding amount (to the
extent not previously paid by the other), together with interest thereon for
each day from the date such amount is made available to the Borrower to the
date such amount is paid to the Administrative Agent, at a rate per annum equal
to, in the case of the Borrower, the applicable interest rate set forth in
Section 2.9 for such Loans, and, in the case of such Lender, the Federal Funds
Rate in effect on each such day (as determined by the Administrative Agent in
accordance with the definition of "Federal Funds Rate" set forth in Section
1.1).  Such payment by the Borrower, however, shall be without prejudice to its
rights against such Lender.  If such Lender shall pay to the Administrative
Agent such corresponding amount, such amount so paid shall constitute such Lender's
Revolving Credit Loan as part of the Revolving Credit Loans for purposes of
this Agreement, which Revolving Credit Loan shall be deemed to have been made
by such Lender on the Borrowing Date applicable to such Revolving Credit
Loans.  The failure of any Lender to make its Commitment Percentage of any
requested Revolving Credit Loan available to the Administrative Agent pursuant
to this Section shall not relieve any other Lender of such other Lender's
obligation to make its own Commitment Percentage of such Revolving Credit Loan
available to the Administrative Agent in accordance with this Section, provided,
however, that no Lender shall be liable or responsible for the failure
by any other Lender to make any Revolving Credit Loans required to be made by such
other Lender.

(d)        If a
Lender makes a new Revolving Credit Loan on a Borrowing Date on which the
Borrower is to repay a Revolving Credit Loan from such Lender, such Lender
shall apply the proceeds of such new Revolving Credit Loan to make such repayment,
and only the excess of the proceeds of such new Revolving Credit Loan over the
Revolving Credit Loan being repaid need be made available to the Administrative
Agent, for the Borrower's account.

(e)        Without
in any way limiting the obligation of the Borrower to confirm in writing any
telephonic notice of borrowing given to the Administrative Agent, the
Administrative Agent may act without liability upon the basis of telephonic
notice of such borrowing believed by the Administrative Agent in good faith to
be from an authorized officer of the Borrower prior to receipt of written
confirmation.  In each such case, the Administrative Agent's records with
regard to any such telephone notice shall be presumptively correct, absent
manifest error.

Section 2.4       
 Competitive
Bid Loans; Procedure

(a)             
The Borrower may make Competitive Bid Requests by 11:00 a.m. at least
two Business Days prior to the proposed Borrowing Date for one or more
Competitive Bid Loans.  Each Competitive Bid Request given to the
Administrative Agent (which shall promptly on the same day give notice thereof
to each Lender by facsimile of an Invitation to Bid if the Competitive Bid
Request is not rejected pursuant to this Section), shall be by telephone
(confirmed by facsimile or other written  

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electronic means promptly on the
same day by the delivery of a Competitive Bid Request signed by the Borrower),
and shall specify (i) the proposed Borrowing Date, which shall be a Business
Day, (ii) the aggregate amount of the requested Competitive Bid Loans (the "Maximum
Request"), which amount (A) shall not exceed an amount which, on the
proposed Borrowing Date and after giving effect to the requested Competitive
Bid Loans, would cause the Credit Exposure of all Lenders to exceed the
Aggregate Commitments and (B) shall be in a principal amount equal to
$3,000,000 or an integral multiple of $1,000,000 in excess thereof, (iii) the
Competitive Interest Period(s) therefor and the last day of each such
Competitive Interest Period, and (iv) if more than one Competitive Interest
Period is so specified, the principal amount allocable to each such Competitive
Interest Period (which amount shall not be less than $3,000,000 or an integral
multiple of $1,000,000 in excess thereof).  A Competitive Bid Request that does
not conform substantially to the form of Exhibit D shall be rejected,
and the Administrative Agent shall promptly notify the Borrower of such
rejection.  Notwithstanding anything contained herein to the contrary, (1) not
more than three Competitive Interest Periods may be requested pursuant to any
Competitive Bid Request and (2) not more than five Competitive Bid Loans may be
outstanding at any one time.

(b)        Each
Lender in its sole discretion may (but is not obligated to) submit one or more
Competitive Bids to the Administrative Agent not later than 10:00 a.m. at least
one Business Day prior to the proposed Borrowing Date specified in such
Competitive Bid Request (such time being herein called the "Submission
Deadline"), by facsimile or other writing, and thereby irrevocably offer to
make all or any part (any such part referred to as a "Portion") of any
Competitive Bid Loan described in the relevant Competitive Bid Request at a
rate of interest per annum (each a "Bid Rate") specified therein in an
aggregate principal amount of not less than $3,000,000 or an integral multiple
of $1,000,000 in excess thereof, provided that Competitive Bids
submitted by the Administrative Agent may only be submitted if the
Administrative Agent notifies the Borrower of the terms of its Competitive Bid
not later than thirty minutes prior to the Submission Deadline.  Multiple
Competitive Bids may be delivered to and by the Administrative Agent.  The
aggregate Portions of Competitive Bid Loans for any or all Competitive Interest
Periods offered by each Lender in its Competitive Bid may exceed the Maximum
Request contained in the relevant Competitive Bid Request, provided that
each Competitive Bid shall set forth the maximum aggregate amount of the
Competitive Bid Loans offered thereby which the Borrower may accept (the "Maximum
Offer"), which Maximum Offer shall not exceed the Maximum Request.  If any
Lender shall elect not to make a Competitive Bid, such Lender shall so notify
the Administrative Agent by facsimile not later than the Submission Deadline therefor,
provided, however, that the failure by any Lender to give any
such notice shall not obligate such Lender to make any Competitive Bid Loan.

(c)        The
Administrative Agent shall promptly give notice by telephone (promptly confirmed
by facsimile or other writing) to the Borrower of all Competitive Bids received
by the Administrative Agent prior to the Submission Deadline which comply in
all material respects with this Section.  The Borrower shall, in its sole
discretion but subject to Section 2.4(d), irrevocably accept or reject any such
Competitive Bid (or any Portion thereof) not later than 1:00 p.m. on the day of
the Submission Deadline by notice to the Administrative Agent by telephone
(confirmed by facsimile or other writing in the form of a Competitive Bid
Accept/Reject Letter promptly the same day).  Promptly upon receipt by the
Administrative Agent of such a Competitive Bid Accept/Reject Letter, the
Administrative Agent will give notice to each Lender that submitted a Competitive
Bid as to the extent, if any, that such Lender's Competitive Bid shall have
been accepted.  If the Administrative Agent fails to receive notice from the
Borrower of its acceptance or rejection of any Competitive Bids at or prior to
1:00 p.m. on the day of the Submission Deadline, all such Competitive Bids
shall be deemed to have been rejected by the Borrower, and the Administrative
Agent will give to each Lender that submitted a Competitive Bid notice of such
rejection by telephone on such day.  In due course following the acceptance of
any Competitive Bid, the Administrative Agent shall notify each Lender which
submitted a Competitive Bid, in the form  

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of a Competitive Bid Loan
Confirmation, of the amount, maturity date and Bid Rate for each Competitive
Bid Loan.

(d)        If
the Borrower accepts a Portion of a proposed Competitive Bid Loan for a single
Competitive Interest Period at the Bid Rate provided therefor in a Lender's
Competitive Bid, such Portion shall be in a principal amount of $3,000,000 or
an integral multiple of $1,000,000 in excess thereof (subject to such lesser
allocation as may be made pursuant to the provisions of this Section 2.4(d)). 
The aggregate principal amount of Competitive Bid Loans accepted by the
Borrower following Competitive Bids responding to a Competitive Bid Request
shall not exceed the Maximum Request.  The aggregate principal amount of
Competitive Bid Loans accepted by the Borrower pursuant to a Lender's
Competitive Bid shall not exceed the Maximum Offer therein contained.  If the
Borrower accepts any Competitive Bid Loans or Portion offered in any
Competitive Bid, the Borrower must accept Competitive Bids (and Competitive Bid
Loans and Portions thereby offered) based exclusively upon the successively
lowest Bid Rates within each Competitive Interest Period and no other
criteria.  If two or more Lenders submit Competitive Bids with identical Bid
Rates for the same Competitive Interest Period and the Borrower accepts any
thereof, the Borrower shall, subject to the first three sentences of this
Section 2.4(d), accept all such Competitive Bids as nearly as possible in
proportion to the amounts of such Lenders' respective Competitive Bids with
identical Bid Rates for such Competitive Interest Period, provided that
if the amount of Competitive Bid Loans to be so allocated is not sufficient to
enable each such Lender to make such Competitive Bid Loan (or Portions thereof)
in an aggregate principal amount of $3,000,000 or an integral multiple of
$1,000,000 in excess thereof, the Borrower shall round the Competitive Bid
Loans (or Portions thereof) allocated to such Lender or Lenders as the Borrower
shall select as necessary to a minimum of $1,000,000 or an integral multiple of
$500,000 in excess thereof.

(e)        Not
later than 2:00 p.m. on the relevant Borrowing Date, each Lender whose
Competitive Bid was accepted by the Borrower shall make available to the
Administrative Agent at its office provided for in Section 11.2, in immediately
available funds, the proceeds of such Lender's Competitive Bid Loan(s). The
amounts so made available to the Administrative Agent on such Borrowing Date
will then, subject to the satisfaction of the terms and conditions of this
Agreement, as determined by the Administrative Agent, be made available on such
date to the Borrower by the Administrative Agent at the office of the
Administrative Agent provided for in Section 11.2 by crediting the account of
the Borrower on the books of such office with the aggregate of said amounts
received by the Administrative Agent.  

(f)        All
notices required by this Section 2.4 shall be given in accordance with Section
11.2.

(g)        The
Competitive Bid Loans made by each Lender shall be evidenced by a Note referred
to in Section 2.2. Each Competitive Bid Loan shall be due and payable on the
last day of the Competitive Interest Period applicable thereto.

Section 2.5       
 Termination
and Reduction of Aggregate Commitments

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

(b)            
The Borrower may at any time terminate, or from time to time reduce, the
Aggregate Commitments, provided that (i) the Borrower shall not
terminate or reduce the Aggregate Commitments if, after giving effect to any
concurrent prepayment of Loans in accordance with Section 2.6, the sum of the
Credit Exposures of all Lenders would exceed the total Aggregate Commitments,
and  

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(ii) each such reduction shall be
in an amount that is an integral multiple of $1,000,000 and not less than
$5,000,000.

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

Section 2.6       
 Prepayments
of the Loans

(a)        Voluntary
Prepayments. The Borrower may, at its option, prepay the Revolving Credit
Loans without premium or penalty, in full at any time or in part from time to
time, by notifying the Administrative Agent in writing no later than 11:30 a.m.
on the proposed prepayment date, in the case of ABR Advances, and at least
three Business Days prior to the proposed prepayment date, in the case of
Eurodollar Advances, specifying the Revolving Credit Loans to be prepaid, the
amount to be prepaid and the date of prepayment.  The Borrower may not prepay
the Competitive Bid Loans.  Each such notice of a prepayment under this Section
shall be irrevocable and the amount specified in such notice shall be due and
payable on the date specified.  Upon receipt of such notice, the Administrative
Agent shall promptly notify each Lender thereof.  Each partial prepayment shall
be in an aggregate principal amount of (i) $5,000,000 or an integral multiple
of $1,000,000 in excess thereof or (ii) if the outstanding principal balance of
the Revolving Credit Loans is less that the minimum amount set forth in clause
(a)(i) of this Section, then such lesser outstanding principal balance, as the
case may be.  After giving effect to any partial prepayment with respect to
Eurodollar Advances which were made (whether as the result of a borrowing or a
conversion) on the same date and which had the same Interest Period, the
outstanding principal amount of such Eurodollar Advances shall exceed (subject
to Section 2.7) $5,000,000 or an integral multiple of $1,000,000 in excess
thereof.  If any prepayment is made in respect of any Eurodollar Advance, in
whole or in part, prior to the last day of the applicable Eurodollar Interest
Period, the Borrower agrees to indemnify the Lenders in accordance with Section
2.13.

(b)        Mandatory
Prepayments Relating to Reductions or Termination of the Aggregate Commitments. 
Concurrently with each reduction or termination of the Aggregate Commitments
under Section 2.5, the Borrower shall prepay the Loans by the amount, if any,
by which the Credit Exposure of all Lenders exceeds the amount of the Aggregate
Commitments after giving effect to such reduction or termination, as the case
may be, such prepayment to be applied first to the outstanding Revolving Credit
Loans and second to outstanding Competitive Bid Loans.  

(c)        Mandatory
Prepayments Relating to Receipt of Unrestricted Subsidiary Group Distributions.
In the event that the Borrower receives an Unrestricted Subsidiary Group
Distribution:

(i)         if
the Borrower does not intend to use any portion thereof to repay or repurchase
Senior Notes, the Borrower shall prepay the Revolving Credit Loans in an amount
equal to such Unrestricted Subsidiary Group Distribution, such prepayment to be
made (x) on the date of the receipt thereof to the extent of outstanding ABR
Advances and (y) on the last day of the applicable Eurodollar Interest Period
in respect of outstanding Eurodollar Advances, and, pending such prepayment
 

-24-

of such Eurodollar Advances, the
portion of the Unrestricted Subsidiary Group Distribution not applied to the
prepayment of ABR Advances shall be in escrow under arrangements satisfactory
to the Administrative Agent;

(ii)        if
the Borrower intends to use all or a portion thereof to repay or repurchase
Senior Notes:  

(A)       the
Borrower shall prepay the Revolving Credit Loans in an amount equal to the
amount of such Unrestricted Subsidiary Group Distribution minus the
portion thereof applied or to be applied by the Borrower to the repayment or
repurchase of the Senior Notes, such prepayment to be made (x) on the date of
the receipt thereof to the extent of outstanding ABR Advances and (y) on the
last day of the applicable Eurodollar Interest Period in respect of outstanding
Eurodollar Advances, and, pending such prepayment of such Eurodollar Advances,
the portion of the Unrestricted Subsidiary Group Distribution not applied to
the prepayment of ABR Advances shall be in escrow under arrangements
satisfactory to the Administrative Agent,

(B)       any
portion of the Unrestricted Subsidiary Group Distribution not applied to the
prepayment of the Revolving Credit Loans pursuant to clause (A) shall be applied
to the repayment or repurchase of Senior Notes not later than June 1, 2005 and
pending such repurchase held in escrow under arrangements satisfactory to the
Administrative Agent, and

(C)       if
the Borrower has not used all or any portion of the Unrestricted Subsidiary
Group Distribution to repay or repurchase Senior Notes on or before June 1,
2005, the Borrower shall prepay the Revolving Credit Loans in an amount equal
to the remaining Unrestricted Subsidiary Group Distribution, such prepayment to
be made (x) on June 2, 2005 to the extent of outstanding ABR Advances and (y)
on the last day of the applicable Eurodollar Interest Period to occur after
June 1, 2005 in respect of outstanding Eurodollar Advances.

(d)        In
General.  Any prepayments under this Section shall be applied pro rata
according to the Commitment Percentage of each Lender.

Section 2.7       
 Conversions
and Continuations

(a)        The
Borrower may elect from time to time to convert Eurodollar Advances to ABR
Advances by giving the Administrative Agent at least one Business Day's prior irrevocable
notice of such election (confirmed by the delivery of a Notice of
Conversion/Continuation), specifying the amount to be so converted, provided
that any such conversion of Eurodollar Advances shall only be made on the last
day of the Interest Period applicable thereto.  In addition, the Borrower may
elect from time to time to (i) convert ABR Advances to Eurodollar Advances and
(ii) to continue Eurodollar Advances by selecting a new Eurodollar Interest
Period therefor, in each case by giving the Administrative Agent at least three
Business Days' prior irrevocable notice of such election (confirmed by the
delivery of a Notice of Conversion/Continuation), in the case of a conversion
to, or continuation of, Eurodollar Advances, specifying the amount to be so
converted and the initial Eurodollar Interest Period relating thereto, provided
that any such conversion of ABR Advances to Eurodollar Advances shall only be
made on a Business Day and any such continuation of Eurodollar Advances shall
only be made on the last day of the Eurodollar Interest Period applicable to
the Eurodollar Advances which are to be continued as such new Eurodollar
Advances.  The Administrative Agent shall promptly provide the Lenders with a
copy of each such Notice of Conversion/Continuation.  ABR Advances and
Eurodollar Advances may be converted or continued pursuant to this Section in
whole or in part, provided that conversions of ABR Advances to
Eurodollar Advances, or continuations of Eurodollar Advances, shall be in an
aggregate principal amount of $5,000,000 or an integral multiple of $1,000,000
in excess thereof.  If the Borrower fails to deliver a  

-25-

notice of conversion or continuation in accordance with this
Section with respect to any Advance prior to the last day of the Interest
Period applicable thereto, then, unless such Advance is repaid as provided
herein, on the last day of such Interest Period, such Advance shall be
converted to, or continued as, an ABR Advance.   

(b)        Notwithstanding
anything in this Section to the contrary, no ABR Advance may be converted to a
Eurodollar Advance, and no Eurodollar Advance may be continued, if a Default or
Event of Default has occurred and is continuing either (i) at the time the
Borrower shall notify the Administrative Agent of its election to convert or
continue or (ii) on the requested Conversion/Continuation Date.  In such event,
such ABR Advance shall be automatically continued as an ABR Advance, or such
Eurodollar Advance shall be automatically converted to an ABR Advance on the
last day of the Eurodollar Interest Period applicable to such Eurodollar
Advance.  If an Event of Default shall have occurred and be continuing, the
Administrative Agent shall, at the request of the Required Lenders, notify the
Borrower (by telephone or otherwise) that all, or such lesser amount as the
Required Lenders shall designate, of the outstanding Eurodollar Advances shall
be automatically converted to ABR Advances, in which event such Eurodollar
Advances shall be automatically converted to ABR Advances on the date such
notice is given.

(c)        No
Eurodollar Interest Period selected in respect of the conversion or
continuation of any Eurodollar Advance shall end after the Maturity Date. 
 

(d)        Each
conversion or continuation shall be effected by each Lender by applying the
proceeds of its new ABR Advance or Eurodollar Advance, as the case may be, to
its Advances (or portion thereof) being converted (it being understood that
such conversion shall not constitute a borrowing for purposes of Articles 4, 5
or 6).  

(e)        Without
in any way limiting the obligation of the Borrower to confirm in writing any
telephonic notice of borrowing given to the Administrative Agent, the
Administrative Agent may act without liability upon the basis of telephonic
notice of such borrowing believed by the Administrative Agent in good faith to
be from an authorized officer of the Borrower prior to receipt of written
confirmation.  In each such case, the Administrative Agent's records with
regard to any such telephone notice shall be presumptively correct, absent
manifest error.

Section 2.8       
 Letters of
Credit

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

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

-26-

Credit is to expire (which shall
comply with paragraph (c) of this Section), the amount of such Letter of
Credit, the name and address of the beneficiary thereof and such other
information as shall be necessary to prepare, amend, renew or extend such
Letter of Credit, provided that no such notice shall be required in
connection with the automatic extension of an Evergreen Letter of Credit.  If
requested by the Issuing Bank, the Borrower also shall submit a letter of
credit application on the Issuing Bank's standard form in connection with any
request for a Letter of Credit.  A Letter of Credit shall be issued, amended,
renewed or extended only if (and, upon issuance, amendment, renewal or
extension of each Letter of Credit, the Borrower shall be deemed to represent
and warrant that), after giving effect to such issuance, amendment, renewal or
extension, (i) the LC Exposure shall not exceed $60,000,000 and (ii) the sum of
the total Credit Exposures of all Lenders shall not exceed the Aggregate
Commitments.

(c)        Expiration
Date. Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (i) the date that is one year after the date of the
issuance of such Letter of Credit (or, in the case of any renewal or extension
thereof, one year after such renewal or extension) and (ii) the date that is
ten Business Days prior to the Maturity Date, provided that any Letter
of Credit may provide for the renewal thereof for any period so long as such
period ends (x) ten Business Days prior to the Maturity Date or (y) if the Borrower shall have deposited cash collateral with the Administrative Agent as
required by Section 2.8(i), ten Business Days prior to the date that is one
year after the date of the issuance of such Letter of Credit (or, in the case
of any renewal or extension thereof, one year after such renewal or extension).

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

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

-27-

by the Borrower prior to such
time on such date, then not later than 2:00 p.m. on (A) the Business Day that
the Borrower receives such notice, if such notice is received prior to 11:00
a.m. on the day of receipt or (B) the Business Day immediately following the
day that the Borrower receives such notice, if such notice is not received
prior to such time on the day of receipt, provided that, if the LC
Disbursement is equal to or greater than $1,000,000, the Borrower may, subject
to the conditions of borrowing set forth herein, request in accordance with
Section 2.3 that such payment be financed with an ABR Advance in an equivalent
amount and, to the extent so financed, the Borrower's obligation to make such
payment shall be discharged and replaced by the resulting ABR Advance or (ii)
notify the Administrative Agent that the Issuing Bank is requesting that the
Lenders make ABR Advances in an amount equal to such LC Disbursement and any
accrued interest thereon, in which case (A) the Administrative Agent shall
notify each Lender of the details thereof and of the amount of such Lender's
Revolving Credit Loan to be made as part of such ABR Advances, and (B) each
Lender shall, whether or not any Default shall have occurred and be continuing,
any representation or warranty shall be accurate, any condition to the making
of any loan hereunder shall have been fulfilled, or any other matter
whatsoever, make the Revolving Credit Loan to be made by it under this
paragraph by wire transfer of immediately available funds to the account of the
Administrative Agent most recently designated by it for such purpose by notice
to the Lenders on (1) the Business Day that such Lender receives such notice,
if such notice is received prior to 12:00 noon, on the day of receipt or (2)
the Business Day immediately following the day that such Lender receives such
notice, if such notice is not received prior to such time on the day of
receipt.  Such Revolving Credit Loans shall, for all purposes hereof, be deemed
to be ABR Advances made pursuant to Section 2.3, and the Lenders obligations to
make such Revolving Credit Loans shall be absolute and unconditional. The
Administrative Agent will make such Revolving Credit Loans available to the
Issuing Bank by promptly crediting or otherwise transferring the amounts so
received, in like funds, to the Issuing Bank for the purpose of repaying in
full the LC Disbursement and all accrued interest thereon.

(f)             
Obligations Absolute. The Borrower's obligations to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of
Credit or this Agreement, or any term or provision therein or herein, (ii) any
draft or other document presented under a Letter of Credit proving to be
forged, fraudulent or invalid in any respect or any statement therein being
untrue or inaccurate in any respect, (iii) payment by the Issuing Bank under a
Letter of Credit against presentation of a draft or other document that does
not comply with the terms of such Letter of Credit or (iv) any other event or
circumstance whatsoever, whether or not similar to any of the foregoing, that
might, but for the provisions of this Section, constitute a legal or equitable
discharge of, or provide a right of setoff against, the Borrower's obligations
hereunder.  Neither any Credit Party nor any of their respective Related
Parties shall have any liability or responsibility by reason of or in
connection with the issuance or transfer of any Letter of Credit or any payment
or failure to make any payment thereunder (irrespective of any of the
circumstances referred to in the preceding sentence), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or
other communication under or relating to any Letter of Credit (including any
document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of
the Issuing Bank; provided that the foregoing shall not be construed to
excuse the Issuing Bank from liability to the Borrower to the extent of any
direct damages (as opposed to consequential damages, claims in respect of which
are hereby waived by the Borrower to the extent permitted by applicable law)
suffered by the Borrower that are caused by the Issuing Bank's failure to
exercise care when determining whether drafts and other documents presented
under a Letter of Credit comply with the terms thereof. The parties hereto
expressly agree that, in the absence of gross negligence or willful misconduct
on the part of the Issuing Bank (as finally determined by a court of competent
jurisdiction), the Issuing Bank shall be deemed to have exercised care in each
such determination. In furtherance of the foregoing and without limiting the
generality thereof, the parties agree that, with  

-28-

respect to documents presented
which appear on their face to be in substantial compliance with the terms of a
Letter of Credit, the Issuing Bank may, in its sole discretion, either accept
and make payment upon such documents without responsibility for further
investigation, regardless of any notice or information to the contrary, or
refuse to accept and make payment upon such documents if such documents are not
in strict compliance with the terms of such Letter of Credit.

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

(h)        Interim
Interest. If the Issuing Bank shall make any LC Disbursement, then, unless
the Borrower shall reimburse such LC Disbursement in full on the date such LC
Disbursement is made, the unpaid amount thereof shall bear interest, for each
day from and including the date such LC Disbursement is made to but excluding
the date that the Borrower reimburses such LC Disbursement, at the rate per
annum then applicable to ABR Advances; provided that, if the Borrower
fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of
this Section, then Section 2.9(b) shall apply. Interest accrued pursuant to
this paragraph shall be for the account of the Issuing Bank, except that
interest accrued on and after the date of payment by any Lender pursuant to
paragraph (e) of this Section to reimburse the Issuing Bank shall be for the
account of such Lender to the extent of such payment.

(i)              
Cash Collateral. In the event that (i) an Event of Default shall occur and be continuing or (ii) any Letters of Credit are outstanding on or after
the tenth Business Day prior to the Maturity Date (or any LC Disbursements
remain unreimbursed on or after such date), the Borrower shall deposit with the
Administrative Agent in immediately available funds on the Business Day on
which it receives notice from the Administrative Agent or Required Lenders
demanding the deposit of cash collateral in the case of clause (i), or on or
before the tenth Business Day prior to the Maturity Date in the case of clause
(ii), an amount equal to the Required Deposit Amount, which amount shall be
held by the Administrative Agent as cash collateral pursuant to a cash
collateral agreement in form and substance satisfactory to the Administrative
Agent and the Issuing Bank to secure the Borrower's reimbursement obligations
with respect to LC Disbursements.  Notwithstanding the foregoing, the
obligation to deposit such cash collateral shall become effective immediately,
and such deposit shall become immediately due and payable, without demand or
other notice of any kind, upon the occurrence of any Event of Default with
respect to the Borrower described in clause (h) or (i) of Article 9. The
Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account. Such deposit shall not bear
interest, nor shall the Administrative Agent be under any obligation whatsoever
to invest the same, provided, however, that, at the request of
the Borrower, such deposit shall be invested by the Administrative Agent in
direct short term obligations of, or short term obligations the principal of
and interest on which are unconditionally guaranteed by, the United States, in
each case maturing no later than the expiry date of the Letter of Credit giving
rise to the relevant LC Exposure.  Interest or profits, if any, on such
investments shall accumulate in such account.  Moneys in such account shall be
applied by the Administrative Agent to reimburse the Issuing Bank for LC
Disbursements for which it has not been reimbursed and, to the extent not so
applied, shall be held for the satisfaction of the reimbursement obligations of
the Borrower for the LC Exposure at such time or, if the maturity of the Loans
has been accelerated (but subject to the consent of Required Lenders), be
applied to satisfy other obligations of the Borrower under this Agreement. If
the Borrower is required to provide cash collateral hereunder as a result of clause
(i) of the first sentence of this subsection, the amount thereof (to the extent
not applied as aforesaid) shall be returned to the Borrower within three
Business Days after all Events of  

-29-

Default have been cured or waived. 
If the Borrower is required to provide cash collateral hereunder as a result of
clause (ii) of the first sentence of this subsection, the amount thereof (to
the extent not applied as aforesaid) shall be returned to the Borrower when the
LC Exposure is zero and all Letters of Credit shall have been returned to the
Issuing Bank and shall have been cancelled.

Section 2.9       
 Interest Rate
and Payment Dates

(a)        Prior
to Maturity. Except as otherwise provided in Section 2.9(b), prior to
maturity, the Loans shall bear interest on the outstanding principal balance
thereof at the applicable interest rate or rates per annum set forth below:

	
  ADVANCES

  	
  RATE

  
	
  Each ABR Advance

  	
  Alternate Base
  Rate.

  
	
  Each Eurodollar
  Advance

  	
  Eurodollar Rate for
  the applicable Eurodollar Interest Period plus the Applicable Margin.

  
	
  Each Competitive
  Bid Loan

  	
  Bid Rate applicable
  thereto for the applicable Competitive Interest Period.

  

(b)        Late
Charges. If all or any portion of the principal balance of or interest
payable on any of the Loans, any reimbursement obligation in respect of any LC
Disbursement or any other amount payable under the Loan Documents shall not be
paid when due (whether at the stated maturity thereof, by acceleration or
otherwise), such overdue balance or amount shall bear interest at a rate per
annum (whether before or after the entry of a judgment thereon) equal to (i) in
the case of the principal balance of any Loan, 2% plus the rate which
would otherwise be applicable pursuant to Section 2.9(a), or (ii) in the case of
any other amount, 2% plus the Alternate Base Rate, in each case from the
date of such nonpayment to, but not including, the date such balance or such
amount, as the case may be, is paid in full.  All such interest shall be
payable on demand.

(c)        In
General. Interest on (i) ABR Advances to the extent based on the BNY Rate
shall be calculated on the basis of a 365 or 366 day year (as the case may be)
and (ii) ABR Advances to the extent based on the Federal Funds Rate, on
Eurodollar Advances and on Competitive Bid Loans shall be calculated on the
basis of a 360 day year, in each case, for the actual number of days elapsed,
including the first day but excluding the last.  Except as otherwise provided
in Section 2.9(b), interest shall be payable in arrears on each Interest
Payment Date and upon each payment (including prepayment) of the Loans (on the
amount paid (or prepaid)).  Any change in the interest rate on the Loans
resulting from a change in the Alternate Base Rate shall become effective as of
the opening of business on the day on which such change shall become
effective.  The Administrative Agent shall, as soon as practicable, notify the
Borrower and the Lenders of the effective date and the amount of each such
change in the BNY Rate, but any failure to so notify shall not in any manner
affect the obligation of the Borrower to pay interest on the Loans in the
amounts and on the dates required.  Each determination of the Alternate Base
Rate or a Eurodollar Rate by the Administrative Agent pursuant to this
Agreement shall be conclusive and binding on all parties hereto absent manifest
error.  At no time shall the interest rate payable on the Loans, together with
the Facility Fee, the LC Fee and all other amounts payable under the Loan
Documents, to the extent the same are construed to constitute interest, exceed
the Highest Lawful Rate.  If any amount paid hereunder would exceed the maximum
amount of interest permitted by the Highest Lawful Rate, then such amount shall
automatically be reduced to such maximum permitted amount, and interest for any
subsequent period, to the extent less than the maximum amount permitted for
such period by the Highest Lawful Rate, shall be increased by the unpaid amount
of such reduction.  Any interest actually received  

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for any period in excess of such
maximum allowable amount for such period shall be deemed to have been applied
as a prepayment of the Loans.  The Borrower acknowledges that to the extent
interest payable on ABR Advances is based on the BNY Rate, such rate is only
one of the bases for computing interest on loans made by the Lenders, and by
basing interest payable on ABR Advances on the BNY Rate, the Lenders have not
committed to charge, and the Borrower has not in any way bargained for,
interest based on a lower or the lowest rate at which the Lenders may now or in
the future make loans to other borrowers.

Section 2.10     
 Substituted
Interest Rate

In the event
that (i) the Administrative Agent shall have determined in the exercise of its
reasonable discretion (which determination shall be conclusive and binding upon
the Borrower) that by reason of circumstances affecting the interbank eurodollar
market either reasonable means do not exist for ascertaining the Eurodollar
Rate or (ii) the Required Lenders shall have notified the Administrative Agent
that they have determined (which determination shall be conclusive and binding
on the Borrower) that the applicable Eurodollar Rate will not adequately and
fairly reflect the cost to such Lenders of maintaining or funding loans bearing
interest based on such Eurodollar Rate, with respect to any portion of the
Revolving Credit Loans that the Borrower has requested be made as Eurodollar
Advances or Eurodollar Advances that will result from the requested conversion
or continuation of any portion of the Advances into or as Eurodollar Advances
(each an "Affected Advance"), the Administrative Agent shall promptly
notify the Borrower and the Lenders (by telephone or otherwise, to be promptly
confirmed in writing) of such determination on or, to the extent practicable,
prior to the requested Borrowing Date or Conversion/Continuation Date for such
Affected Advances.  If the Administrative Agent shall give such notice, (a) any
Affected Advances shall be made as ABR Advances, (b) the Advances (or any
portion thereof) that were to have been converted to or continued as Affected
Advances shall be converted to or continued as ABR Advances and (c) any
outstanding Affected Advances shall be converted, on the last day of the then
current Interest Period with respect thereto, to ABR Advances.  Until any
notice under clause (i) or (ii), as the case may be, of this Section has been
withdrawn by the Administrative Agent (by notice to the Borrower promptly upon
either (1) the Administrative Agent's having determined that such circumstances
affecting the interbank eurodollar market no longer exist and that adequate and
reasonable means do exist for determining the Eurodollar Rate pursuant to
Section 2.9 or (2) the Administrative Agent having been notified by such
Required Lenders that circumstances no longer render the Advances (or any
portion thereof) to be Affected Advances), no further Eurodollar Advances shall
be required to be made by the Lenders, nor shall the Borrower have the right to
convert or continue all or any portion of the Loans to Eurodollar Advances.
 

Section 2.11     
 Taxes

(a)        Payments
to be Free and Clear. Provided that all documentation, if any, then
required to be delivered by any Lender or the Administrative Agent pursuant to
Section 2.11(c) has been delivered, all sums payable by the Borrower under the
Loan Documents shall be paid free and clear of and (except to the extent
required by law) without any deduction or withholding on account of any Tax
(other than a Tax on the Overall Net Income of any Lender (for which payment
need not be free and clear, but no deduction or withholding shall be made
unless then required by applicable law)) imposed, levied, collected, withheld
or assessed by or within the United States or any political subdivision in or
of the United States or any other jurisdiction from or to which a payment is
made by or on behalf of the Borrower or by any federation or organization of
which the United States or any such jurisdiction is a member at the time of payment.

-31-

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

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

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

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

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

(c)        provided
that no additional amount shall be required to be paid to any Lender under
clause (iii) above except to the extent that any change after the date hereof
(in the case of each Lender listed on the signature pages hereof) or after the
date of the Assignment and Acceptance Agreement pursuant to which such Lender
became a Lender (in the case of each other Lender) if any such requirement for
a deduction, withholding or payment as is mentioned therein shall result in an
increase in the rate of such deduction, withholding or payment from that in
effect at the date of this Agreement or at the date of such Assignment and
Acceptance Agreement, as the case may be, in respect of payments to such
Lender, and provided further that any Lender claiming any additional
amounts payable pursuant to this Section 2.11 shall use reasonable efforts
(consistent with its internal policy and legal and regulatory restrictions) to
change the jurisdiction of its Applicable Lending Office or take other
appropriate action if the making of such a change or the taking of such action,
as the case may be, would avoid the need for, or reduce the amount of, any such
additional amounts that may thereafter accrue and would not, in the reasonable
judgment of such Lender, be otherwise disadvantageous to such Lender.

(d)        Tax
Certificates. Each Foreign Lender shall deliver to the Borrower (with a
copy to the Administrative Agent), on or prior to the Closing Date (in the case
of each Foreign Lender listed on the signature pages hereof) or on the
effective date of the Assignment and Acceptance Agreement pursuant to which it
becomes a Lender (in the case of each other Foreign Lender), and at such other
times as may be necessary in the determination of the Borrower or the
Administrative Agent (each in the reasonable exercise of its discretion),
including upon the occurrence of any event requiring a change in the most
recent counterpart of any form set forth below previously delivered by such
Foreign Lender to the Borrower, such certificates, documents or other evidence,
properly completed and duly executed by such Foreign Lender (i) two accurate
and complete original signed copies of Internal Revenue Service Form W8‐BEN
or Form W8‐ECI, or successor applicable form and (ii) an Internal Revenue
Service Form W‐8 or W‐9 (or any other certificate or statement of
exemption required by Treasury Regulations Section

-32-

 1.1441 4(a) or Section 1.1441
6(c) or any successor thereto) to establish that such Foreign Lender is not
subject to deduction or withholding of United States federal income tax under
Section 1441 or 1442 of the Code or otherwise (or under any comparable
provisions of any successor statute) with respect to any payments to such
Foreign Lender of principal, interest, fees or other amounts payable under any
of the Loan Documents.  The Borrower shall not be required to pay any
additional amount to any such Foreign Lender under Section 2.11(b)(iii) if such
Foreign Lender shall have failed to satisfy the requirements of the immediately
preceding sentence; provided that if such Foreign Lender shall have
satisfied such requirements on the Closing Date (in the case of each Foreign
Lender listed on the signature pages hereof) or on the effective date of the
Assignment and Acceptance Agreement pursuant to which it becomes a Lender (in
the case of each other Foreign Lender), nothing in this Section shall relieve
the Borrower of its obligation to pay any additional amounts pursuant to
Section 2.11(b)(iii) in the event that, as a result of any change in applicable
law, such Foreign Lender is no longer properly entitled to deliver
certificates, documents or other evidence at a subsequent date establishing the
fact that such Foreign Lender is not subject to withholding as described in the
immediately preceding sentence.

Section 2.12     
 Increased
Costs; Illegality

(a)        If
any Change in Law shall:

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

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

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

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

(c)        A
certificate of a Credit Party setting forth the amount or amounts necessary to
compensate such Credit Party or its holding company, as applicable, as
specified in paragraph (a) or (b) of this Section shall be delivered to the
Borrower and shall be conclusive absent manifest error. The Borrower shall pay
such Credit Party the amount shown as due on any such certificate within 10
days after receipt thereof.  

-33-

Failure or delay on the part of
any Credit Party to demand compensation pursuant to this Section shall not
constitute a waiver of such Credit Party's right to demand such compensation; provided
that no Lender shall be entitled to demand such compensation more than 90 days
following the last day of the Interest Period in respect of which such demand
is made; provided further, however, that the foregoing
proviso shall in no way limit the right of any Lender to demand or receive such
compensation to the extent that such compensation relates to the retroactive
application of any law, regulation, treaty or directive described above if such
demand is made within 90 days after the implementation of such retroactive law,
interpretation, treaty or directive. A statement setting forth the calculations
of any additional amounts payable pursuant to the foregoing submitted by a
Lender to the Borrower shall be conclusive absent manifest error.  

(d)        Notwithstanding
any other provision of this Agreement, if, after the Agreement Date, any Change
in Law shall make it unlawful for any Lender to make or maintain any Eurodollar
Loan or to give effect to its obligations as contemplated hereby with respect
to any Eurodollar Loan, then, by written notice to the Borrower and to the
Administrative Agent:

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

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

provided, that such Lender
agrees to use reasonable efforts (consistent with its internal policy and legal
and regulatory restrictions) to designate a different Eurodollar Lending Office
or take other appropriate action if the making of such designation or the taking
of such action, as the case may be, would allow such Lender or its Eurodollar
Lending Office to continue to perform its obligations to make Eurodollar
Advances or to continue to fund or maintain Eurodollar Advances and would not,
in the judgment of such Lender, be otherwise disadvantageous to such Lender. In
the event any Lender shall exercise its rights under clause (i) or (ii) of this
paragraph, all payments and prepayments of principal that would otherwise have
been applied to repay the Eurodollar Advances that would have been made by such
Lender or the converted Eurodollar Loans of such Lender shall instead be
applied to repay the ABR Advances made by such Lender in lieu of, or resulting
from the conversion of, such Eurodollar Advances, as applicable.  For purposes
of this paragraph, a notice to the Borrower by any Lender shall be effective as
to each Eurodollar Advances made by such Lender, if lawful, on the last day of
the Interest Period currently applicable to such Eurodollar Advances; in all
other cases such notice shall be effective on the date of receipt by the
Borrower.

Section 2.13     
 Break Funding
Payments

In the event of
(a) the payment or prepayment (voluntary or otherwise) of any principal of any
Eurodollar Loan or Competitive Bid Loan other than on the last day of an
Interest Period applicable thereto (including as a result of an Event of
Default), (b) the conversion of any Eurodollar Loan other than on the last day
of the Interest Period applicable thereto, (c) the failure to borrow, convert,
 

-34-

continue or prepay any Eurodollar
Loan on the date specified in any notice delivered pursuant hereto (regardless
of whether such notice may be revoked under Section 2.5(c) and is revoked in
accordance therewith), (d) the failure to borrow any Competitive Loan after
accepting the Competitive Bid to make such Loan, or (e) the assignment of any
Eurodollar Loan or Competitive Bid Loan other than on the last day of the
Interest Period or maturity date applicable thereto as a result of a request by
any Borrower pursuant to Section 2.15, then, in any such event, the Borrower
shall compensate each Lender for the loss, cost and expense attributable to
such event. In the case of a Eurodollar Loan, such loss, cost or expense to any
Lender shall be deemed to include an amount determined by such Lender to be the
excess, if any, of (i) the amount of interest that would have accrued on the
principal amount of such Loan had such event not occurred, at the Eurodollar
Rate that would have been applicable to such Loan, for the period from the date
of such event to the last day of the then current Interest Period therefor (or,
in the case of a failure to borrow, convert or continue, for the period that
would have been the Interest Period for such Loan), over (ii) the amount of
interest that would accrue on such principal amount for such period at the
interest rate that such Lender would bid were it to bid, at the commencement of
such period, for dollar deposits of a comparable amount and period from other
banks in the eurodollar market.  A certificate of any Lender setting forth any
amount or amounts that such Lender is entitled to receive pursuant to this
Section shall be delivered to the Borrower and shall be conclusive absent
manifest error.  The Borrower shall pay such Lender the amount shown as due on
any such certificate within ten days after receipt thereof.

Section 2.14     
 Lenders'
Records

Each Lender's
records regarding the amount of each Loan, each payment by the Borrower of
principal and interest on the Loans and other information relating to the Loans
shall be presumptively correct absent manifest error.

Section 2.15     
 Substitution
of Lender

In the event
that the Borrower becomes obligated to pay additional amounts to any Lender
pursuant to Section 2.11, 2.12 or 2.13, or if any Lender defaults in its
obligation to fund Loans hereunder on three or more occasions, the Borrower
may, within 60 days of the demand by such Lender for such additional amounts or
the relevant default by such Lender, as the case may be, and subject to and in
accordance with the provisions of Section 11.6, designate an Eligible Assignee
(acceptable to the Administrative Agent and the Issuing Bank) to purchase and
assume all its interests, rights and obligations under the Loan Documents, without
recourse to or warranty by or expense to, such Lender, for a purchase price
equal to the outstanding principal amount of such Lender's Loans plus any
accrued but unpaid interest thereon and accrued but unpaid Facility Fees and LC
Fees in respect of such Lender's Commitment and any other amounts payable to
such Lender hereunder, and to assume all the obligations of such Lender
hereunder, and, upon such purchase, such Lender shall no longer be a party
hereto or have any rights hereunder (except those that survive full repayment
hereunder) and shall be relieved from all obligations to the Borrower
hereunder, and the Eligible Assignee shall succeed to the rights and
obligations of such Lender hereunder.  The Borrower shall execute and deliver
to such Eligible Assignee a Note.  Notwithstanding anything herein to the
contrary, in the event that a Lender is replaced pursuant to this Section 2.15
as a result of the Borrower becoming obligated to pay additional amounts to
such Lender pursuant to Section 2.11, 2.12 or 2.13, such Lender shall be
entitled to receive such additional amounts as if it had not been so replaced.
 

-35-

ARTICLE 3.     FEES; PAYMENTS

Section 3.1       
 Fees

(a)        Facility
Fee. The Borrower agrees to pay to the Administrative Agent, for the account
of the Lenders in accordance with each Lender's Commitment Percentage, during
the period from and including the Closing Date through but excluding the Maturity
Date, a fee (the "Facility Fee") equal to the Applicable Facility Fee
Percentage per annum of the average daily sum of the Aggregate Commitments,
regardless of usage, during such period. The Facility Fee shall be payable (i)
quarterly in arrears on the last day of each March, June, September and
December during such period, (ii) on the date of any reduction in the Aggregate
Commitments (to the extent of such reduction) and (iii) on the Maturity Date.
The Facility Fee shall be calculated on the basis of a 360 day year for the
actual number of days elapse

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

(c)        Other
Fees. The Borrower agrees to pay to each of the Credit Parties, for its own
account, such fees as have been agreed to in writing by it and the Borrower.

Section 3.2       
 Pro Rata Treatment
and Application of Principal Payments

(a)        The
Borrower shall make each payment required to be made by it hereunder or under
any other Loan Document (whether of principal of Loans, reimbursements of LC
Disbursements, interest or fees, or of amounts payable under Sections 2.11,
2.12, 2.13 or 11.4 or otherwise) prior to 1:00 p.m., on the date when due, in
immediately available funds, without setoff or counterclaim. Any amounts
received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Administrative Agent at its office at One Wall Street, New
York, New York, or such other office as to which the Administrative Agent may
notify the other parties hereto, except payments to be made to the Issuing Bank
as expressly provided herein and except that payments pursuant to Sections
2.11, 2.12, 2.13 or 11.4 shall be made directly to the Persons entitled
thereto. The  

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Administrative Agent shall
distribute any such payments received by it for the account of any other Person
to the appropriate recipient promptly following receipt thereof. If any payment
hereunder shall be due on a day that is not a Business Day, the date for
payment shall be extended to the next succeeding Business Day, and, in the case
of any payment accruing interest, interest thereon shall be payable for the
period of such extension.  All payments hereunder shall be made in Dollars.

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

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

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

(e)        If
any Credit Party shall fail to make any payment required to be made by it
pursuant to Section 2.3(c) or 2.8(d), then the Administrative Agent may, in its
discretion (notwithstanding any contrary provision hereof), apply any amounts
thereafter received by the Administrative Agent for the  

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account of such Credit Party to
satisfy such Credit Party's obligations under such Sections until all such
unsatisfied obligations are fully paid.

ARTICLE 4.     REPRESENTATIONS AND WARRANTIES

In order to
induce the Credit Parties to enter into this Agreement, the Lenders to make the
Loans, the Issuing Bank to issue Letters of Credit and the Lenders to acquire
participations therein, the Borrower makes the following representations and
warranties to the Administrative Agent and each Lender:

Section 4.1       
 Subsidiaries;
Capitalization

As of the
Agreement Date, the Borrower has only the Subsidiaries set forth on Schedule
4.1, which Schedule sets forth with respect to each Subsidiary, the identity
of each Person which owns Stock in such Subsidiary and the percentage of the
issued and outstanding Stock owned by each such Person.  The shares of each
corporate Restricted Subsidiary are duly authorized, validly issued, fully paid
and non assessable and are owned free and clear of any Liens, other than Liens
permitted pursuant to Section 8.2(j).  The interest of the Borrower in each non‐corporate
Restricted Subsidiary is owned free and clear of any Liens, other than Liens
permitted pursuant to Section 8.2(j).  

Section 4.2       
 Existence and
Power

Each of the
Borrower and the Restricted Subsidiaries is duly organized or formed and
validly existing in good standing under the laws of the jurisdiction of its
incorporation or formation, has all requisite power and authority to own its
Property and to carry on its business as now conducted, and is in good standing
and authorized to do business as a foreign corporation or other applicable
entity in each jurisdiction in which the nature of the business conducted therein
or the Property owned therein makes such qualification necessary, except where
such failure to qualify could not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect.  

Section 4.3       
 Authority

The Borrower
has full legal power and authority to enter into, execute, deliver and perform
the terms of the Loan Documents and to make the borrowings contemplated hereby
and by the Notes, and to execute, deliver and carry out the terms of the Notes
and to incur the obligations provided for herein and therein, all of which have
been duly authorized by all proper and necessary corporate or other applicable
action and are in full compliance with its charter or by laws or its other
organization documents.  

Section 4.4       
 Binding Agreement

The Loan
Documents (other than the Notes) constitute, and the Notes, when issued and
delivered pursuant hereto for value received, will constitute, the valid and
legally binding obligations of the Borrower, enforceable in accordance with
their respective terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors' rights generally and general principles
of equity.

Section 4.5       
 Litigation
and Regulatory Proceedings

(a)    Except as
disclosed in Schedule 4.5, there are no actions, suits or proceedings at
law or in equity or by or before any Governmental Authority (whether or not
purportedly on behalf of the Borrower or any of the Restricted Subsidiaries)
pending or, to the knowledge of the Borrower, threatened  

-38-

against the Borrower or any of
the Restricted Subsidiaries, which (i) if adversely determined, could
individually or in the aggregate reasonably be expected to have a Material
Adverse Effect, except that the commencement by the Borrower, any of the Restricted
Subsidiaries or any Governmental Authority of a rate proceeding or earnings
review before such Governmental Authority shall not constitute such a pending
or threatened action, suit or proceeding unless and until such Governmental
Authority has made a final determination thereunder that could reasonably be
expected to have a Material Adverse Effect, (ii) call into question the
validity or enforceability of any of the Loan Documents, or (iii) could
reasonably be expected to result in the rescission, termination or cancellation
of any material franchise, right, license, permit or similar authorization held
by the Borrower or any of the Restricted Subsidiaries.  

(b)        Since
the Agreement Date, there has been no change in the status of the matters
disclosed on Schedule 4.5 that, individually or in the aggregate, has
resulted in, or materially increased the likelihood of, a Material Adverse
Effect.  

Section 4.6       
 Required
Consents

Except for information
filings required to be made in the ordinary course of business which are not a
condition to the Borrower's performance under the Loan Documents, no consent,
authorization or approval of, filing with, notice to, or exemption by, equityholders,
any Governmental Authority or any other Person is required to authorize, or is
required in connection with the execution, delivery and performance of the Loan
Documents or is required as a condition to the validity or enforceability of
the Loan Documents.

Section 4.7       
 No
Conflicting Agreements, Compliance with Laws

(a)        Neither
the Borrower nor any of the Restricted Subsidiaries is in default (i) under any
mortgage, indenture, contract or agreement to which it is a party or by which
it or any of its Property is bound or (ii) except as disclosed on Schedule
4.5, with respect to any judgment, order, writ, injunction, decree or
decision of any Governmental Authority, the effect of which default could
reasonably be expected to have a Material Adverse Effect.  The execution,
delivery or carrying out of the terms of the Loan Documents will not constitute
a default under, or require the mandatory repayment of, or result in the
creation or imposition of, or obligation to create, any Lien upon any Property
of the Borrower or any of the Restricted Subsidiaries pursuant to the terms of,
any such mortgage, indenture, contract or agreement.  

(b)        Each
of the Borrower and the Restricted Subsidiaries (i) except as disclosed on Schedule
4.5, is complying in all material respects with all statutes, regulations,
rules and orders applicable to the Borrower or such Restricted Subsidiary of
all Governmental Authorities, including Environmental Laws and ERISA, a
violation of which could individually or in the aggregate reasonably be expected
to have a Material Adverse Effect and (ii) has filed or caused to be filed all
tax returns required to be filed and has paid, or has made adequate provision
for the payment of, all taxes shown to be due and payable on said returns or in
any assessments made against it (other than those being contested as permitted
under Section 7.4) which would be material to the Borrower or any of the Restricted
Subsidiaries, and no tax Liens have been filed with respect thereto.

Section 4.8       
 Governmental
Regulations

Neither the
Borrower nor any of the Restricted Subsidiaries is (i) an "investment company"
or a company "controlled" by an "investment company" as defined in, or is
otherwise subject to regulation under, the Investment Company Act of 1940, as
amended, or (ii) a "holding company", or an "affiliate" or "subsidiary company"
of a "holding company", as those terms are defined in the Public
 

-39-

Utility Holding Company Act of
1935, as amended, in each case which is subject to registration thereunder. 
 

Section 4.9       
 Federal
Reserve Regulations; Use of Loan Proceeds

Neither the
Borrower nor any of the Restricted Subsidiaries is engaged principally, or as
one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying any Margin Stock.  No part of the proceeds of
the Loans will be used, directly or indirectly, (i) for a purpose which violates any law, rule or regulation of any Governmental Authority, including the provisions
of Regulations T, U or X of the Board of Governors of the Federal Reserve
System, as amended, (ii) to purchase or carry Margin Stock or to extend credit
to others for the purpose of purchasing or carrying Margin Stock or (iii) to fund a personal loan to or for the benefit of a director or executive officer of
a Borrower or any Subsidiary.

Section 4.10     
 Plans

No ERISA Event
has occurred or is reasonably expected to occur that, when taken together with
all other such ERISA Events for which liability is reasonably expected to
occur, could reasonably be expected to result in a Material Adverse Effect. The
present value of all accumulated benefit obligations under each Plan (based on
the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most recent audited financial
statements reflecting such amounts, exceed by more than $10,000,000 the fair
market value of the assets of such Plan, and the present value of all
accumulated benefit obligations of all underfunded Plans (based on the
assumptions used for purposes of Statement of Financial Accounting Standards
No. 87) did not, as of the date of the most recent audited financial statements
reflecting such amounts, exceed by more than $10,000,000 the fair market value
of the assets of all such underfunded Plans.   

Section 4.11     
 Financial
Statements

(a)        The
Borrower has heretofore delivered to the Credit Parties copies of its Form 10‐K
for the fiscal year ended December 31, 2003, containing (i) the audited consolidated balance sheet of the Borrower and the Subsidiaries and the related
consolidated statements of operations, comprehensive income, changes in
stockholders' equity and cash flows for the fiscal years ending December 31,
2003, December 31, 2002 and December 31, 2001 (with the applicable related
notes and schedules, the "Borrower Financial Statements") and (ii) the audited consolidated balance sheet of the Utility and the Utility Subsidiaries and
the related consolidated statements of income, stockholders' and members'
equity and cash flows for the fiscal years ending December 31, 2003, December
31, 2002 and December 31, 2001 (with the applicable related notes and
schedules, the "Utility Financial Statements").  Each of the Borrower
Financial Statements and the Utility Financial Statements have been prepared in
accordance with GAAP and fairly present the consolidated financial condition
and results of the operations of the Borrower as of the dates and for the
periods indicated therein.  

(b)        Since
December 31, 2003, each of the Borrower and the Restricted Subsidiaries has
conducted its business only in the ordinary course and there has been no
Material Adverse Change.

Section 4.12     
 Property

Each of the
Borrower and the Restricted Subsidiaries has good and marketable title to all
of its Property, title to which is material
to the Borrower or such Restricted Subsidiary, as the case may be, subject to
no Liens, except Permitted Liens.

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Section 4.13     
 Environmental
Matters

(a)        To
the best knowledge of the Borrower, the Borrower and each of the Restricted
Subsidiaries is in compliance in all material respects with the requirements of
all applicable Environmental Laws.

(b)        To
the best knowledge of the Borrower, except as described in Schedule 4.13,
(i) no Hazardous Substances have been generated or manufactured on, transported
to or from, treated at, stored at or discharged from any Real Property in
violation of any Environmental Laws, (ii) no Hazardous Substances have been
discharged into subsurface waters under any Real Property in violation of any
Environmental Laws, (iii) no Hazardous Substances have been discharged from any
Real Property on or into Property or waters (including subsurface waters)
adjacent to any Real Property in violation of any Environmental Laws, and (iv)
there are not now, nor ever have been, on any Real Property any underground or
above ground storage tanks of the Borrower or any of the Restricted
Subsidiaries regulated under any Environmental Laws, which, as to any of the
foregoing actions, events or conditions, individually or collectively, could
reasonably be expected to have a Material Adverse Effect.

(c)        Except
as described in Schedule 4.13, neither the Borrower nor any of the Restricted
Subsidiaries (i) has received notice directly or otherwise learned indirectly
(through a Corporate Officer) of any claim, demand, suit, action, proceeding,
event, condition, report, directive, Lien, violation, non compliance or
investigation indicating or concerning any potential or actual material
liability (including potential liability for enforcement, investigatory costs, cleanup
costs, government response costs, removal costs, remediation costs, natural
resources damages, Property damages, personal injuries or penalties) arising in
connection with: (A) any material non compliance with or violation of the
requirements of any applicable Environmental Laws or (B) the presence of any
Hazardous Substance on any Real Property (or any Real Property previously owned
by the Borrower or any of the Restricted Subsidiaries) or the release or
threatened release of any Hazardous Substance into the environment which
individually or collectively could reasonably be expected to have a Material
Adverse Effect or (ii) has any overtly threatened or actual material liability
in connection with the presence of any Hazardous Substance on any Real Property
(or any Real Property previously owned by the Borrower or any of the Restricted
Subsidiaries) or the release or threatened release of any Hazardous Substance
into the environment.  

(d)        Since
the Agreement Date, there has been no change in the status of the matters
disclosed on Schedule 4.13 that, individually or in the aggregate, has
resulted in, or materially increased the likelihood of, a Material Adverse
Effect.

ARTICLE 5.     CONDITIONS TO EFFECTIVENESS

The obligations
of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit
hereunder shall not become effective until the date
on which each of the following conditions is satisfied (or waived in accordance
with Section 11.1):

Section 5.1       
 Evidence of
Action

The
Administrative Agent shall have received a certificate, dated the Closing Date,
of the Secretary or Assistant Secretary of the Borrower (i) attaching a true
and complete copy of the resolutions of its Board of Directors and of all
documents evidencing other necessary corporate action (in form and substance
satisfactory to the Administrative Agent) taken by it to authorize the Loan
Documents and the transactions contemplated thereby, (ii) attaching a true and
complete copy of its charter and by laws, (iii) setting forth the incumbency of
its officer or officers who may sign the Loan Documents, including therein a
signature specimen of such officer or officers, and (iv) attaching a
certificate of good standing of  

-41-

the Secretary of State of the
jurisdiction of its incorporation and each other jurisdiction in which the
failure to be in good standing could reasonably be expected to have a Material
Adverse Effect.

Section 5.2       
 This
Agreement

The
Administrative Agent (or its counsel) shall have received, in respect of each
Person listed on the signature pages of this Agreement, either (i) a
counterpart signature page hereof signed on behalf of such Person or (ii)
written evidence satisfactory to the Administrative Agent (which may include a
facsimile transmission of a signed signature page of this Agreement) that a
counterpart signature page hereof has been signed on behalf of such Person.
 

Section 5.3       
 Notes

The
Administrative Agent (or its counsel) shall have received a Note for each
Lender, dated the Closing Date, duly executed by a duly authorized officer of
the Borrower.

Section 5.4       
 Approvals

The
Administrative Agent shall have received a certificate of a duly authorized
officer of the Borrower, in form and substance satisfactory to the
Administrative Agent, certifying that all approvals and consents of all Persons
required to be obtained in connection with the consummation of the transactions
contemplated by the Loan Documents have been duly obtained and are in full
force and effect and that all required notices have been given and all required
waiting periods have expired.  

Section 5.5       
 Certain
Agreements

The
Administrative Agent shall have received a certificate of a duly authorized
officer of the Borrower, in form and substance satisfactory to the
Administrative Agent, (i) certifying that there have been no amendments or
other modifications to either the Utility Mortgage or the Employee Stock
Ownership Plan since May 7, 2003, or, if so, setting forth the same, in which
case any such amendment or modification shall be in form and substance
satisfactory to the Administrative Agent, and (ii) attaching a true, complete
and correct copy of each of (x) the Inter‐Affiliate Policies Agreement,
which shall be in form and substance satisfactory to the Administrative Agent
and (y) Sections 1.04 and 5.05 of the Utility Mortgage together with copies of
any defined terms used therein.

Section 5.6       
 Opinion of
Counsel to the Borrower

The
Administrative Agent shall have received an opinion of Phelps Dunbar, L.L.P., counsel
to the Borrower, addressed to the Credit Parties and dated the Closing Date,
substantially in the form of Exhibit K, and covering such additional
matters as the Required Lenders may reasonably request.  It is understood that
such opinion is being delivered to the Credit Parties upon the direction of the
Borrower and that the Credit Parties may and will rely upon such opinion.

Section 5.7       
 Terminating
Indebtedness

The Terminating
Indebtedness shall have been fully repaid and all agreements and other
documents with respect thereto shall have been canceled or terminated, and the
Administrative Agent shall have received reasonably satisfactory evidence
thereof or arrangements satisfactory to the Administrative Agent shall have
been made by the Borrower and the Subsidiaries to accomplish the foregoing
concurrently with the first Loans made hereunder.

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Section 5.8       
 Compliance;
Officer's Certificate

The
Administrative Agent shall have received a certificate, dated the Closing Date
and signed by the chief executive officer of the Borrower or a Financial
Officer, confirming compliance with the conditions set forth in Section 6.1.

Section 5.9       
 Fees and
Expenses

All fees
payable to the Credit Parties on the Closing Date, and the reasonable fees and
expenses of counsel to the Administrative Agent incurred and recorded to date
in connection with the preparation, negotiation and closing of the Loan Documents,
shall have been paid.

ARTICLE 6.     CONDITIONS OF LENDING ‐ ALL LOANS

The obligation
of each Lender to make any Loan (which shall not include a continuation or
conversion of a Loan pursuant to and in accordance with Section 2.7) and of the
Issuing Bank to issue, amend, renew or extend a Letter of Credit, is subject to
the satisfaction of the following conditions:

Section 6.1       
 Compliance

On each
Borrowing Date and after giving effect to the Loans to be made thereon or the
Letters of Credit to be issued, amended, renewed or extended, as applicable,
thereon, (i) there shall exist no Default or Event of Default, (ii) the representations
and warranties contained in the Loan Documents shall be true and correct with
the same effect as though such representations and warranties had been made on
such Borrowing Date, except to the extent such representations and warranties
specifically relate to an earlier date, in which case such representations and
warranties shall have been true and correct on and as of such earlier date, and
(iii) since December 31, 2003, there has been no Material Adverse Change.  Each
request by the Borrower for a Loan or for the issuance, amendment, renewal or
extension of a Letter of Credit shall constitute a certification by the
Borrower as of such Borrowing Date that each of the foregoing matters is true
and correct in all respects.

Section 6.2       
 Credit Request;
Competitive Bid Request

In the case of
the borrowing of Revolving Credit Loans or the issuance, amendment, renewal or
extension, as applicable, of a Letter of Credit, the Administrative Agent shall
have received a Credit Request, or in the case of a borrowing of a Competitive
Bid Loan, the Administrative Agent shall have received a Competitive Bid
Request and such other documents required to be provided by the Borrower
pursuant to Section 2.4, in each case duly executed by a duly authorized
officer of the Borrower.

Section 6.3       
 Law

Such Loan shall
not be prohibited by any applicable law, rule or regulation.

Section 6.4       
 Other
Documents

The
Administrative Agent shall have received such other documents as the
Administrative Agent or the Lenders shall reasonably request.

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ARTICLE 7.     AFFIRMATIVE COVENANTS

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

Section 7.1       
 Financial
Statements

The Borrower
shall maintain a standard system of accounting in accordance with GAAP, and
furnish or cause to be furnished to the Administrative Agent and each Lender:

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

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

(c)        Within
60 days after the end of each of the first three fiscal quarters (120 days
after the end of the last fiscal quarter), a Compliance Certificate, signed by a
Financial Officer (or such other officer as shall be acceptable to the
Administrative Agent) as to the Borrower's compliance, as of such fiscal
quarter ending date, with Section 7.11, and as to the occurrence or continuance
of no Default or Event of Default as of such fiscal quarter ending date and the
date of such certificate; and

(d)        Such
other information as the Administrative Agent or any Lender may reasonably
request from time to time.

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Section 7.2       
 Certificates;
Other Information

The Borrower
shall furnish or cause to be furnished to the Administrative Agent and each
Lender:

(a)        Prompt
written notice if: (i) there shall occur and be continuing a Default or an
Event of Default or (ii) a Material Adverse Change shall have occurred;

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

(c)        Promptly
upon becoming available, copies of all (i) regular, periodic or special
reports, schedules and other material which the Borrower or any of the Restricted
Subsidiaries may be required to file with or deliver to any securities exchange
or the SEC, or any other Governmental Authority succeeding to the functions
thereof, (ii) material news releases and annual reports relating to the
Borrower or any of the Restricted Subsidiaries, and (iii) upon the written
request of the Administrative Agent, reports that the Borrower or any of the Restricted
Subsidiaries sends to or files with the Federal Energy Regulatory Commission,
or any Governmental Authority succeeding to the functions thereof, or any
similar state or local Governmental Authority;  

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

(e)        Prompt
written notice of any change by either Moody's or S&P in the Senior Debt
Rating; and

(f)        Such
other information as the Administrative Agent or any Lender shall reasonably
request from time to time.

Section 7.3       
 Legal
Existence

Except as
permitted under Section 8.3, the Borrower shall maintain its legal existence in
good standing in the jurisdiction of its incorporation or formation and in each
other jurisdiction in which the failure so to do could reasonably be expected
to have a Material Adverse Effect, and cause each of the Restricted
Subsidiaries to maintain its legal existence in good standing in each
jurisdiction in which the failure so to do could reasonably be expected to have
a Material Adverse Effect.

Section 7.4       
 Taxes

The Borrower
shall pay and discharge when due, and cause each of the Restricted Subsidiaries
so to do, all Taxes, assessments and governmental charges, license fees and
levies upon or with respect to the Borrower or such Restricted Subsidiary, as
the case may be, and all Taxes upon the  

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income, profits and Property of
the Borrower and the Restricted Subsidiaries, which if unpaid, could
individually or collectively reasonably be expected to have a Material Adverse
Effect or become a Lien on the Property of the Borrower or such Restricted
Subsidiary, as the case may be, unless and to the extent only that such Taxes,
assessments, charges, license fees and levies shall be contested in good faith
and by appropriate proceedings diligently conducted by the Borrower or such Restricted
Subsidiary, as the case may be, provided that the Borrower shall give
the Administrative Agent prompt notice of such contest and that such reserve or
other appropriate provision as shall be required by the Accountants in
accordance with GAAP shall have been made therefor.

Section 7.5       
 Insurance

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

Section 7.6       
 Payment of
Indebtedness and Performance of Obligations  

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

Section 7.7       
 Condition of
Property

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

Section 7.8       
 Observance of
Legal Requirements

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

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Section 7.9       
 Inspection of
Property; Books and Records; Discussions

The Borrower
shall keep proper books of record and account in which full, true and correct
entries in conformity with GAAP and all requirements of law shall be made of
all dealings and transactions in relation to its business and activities and
permit representatives of the Administrative Agent and any Lender to visit its
offices, to inspect any of its Property and examine and make copies or
abstracts from any of its books and records at any reasonable time and as often
as may reasonably be desired, and to discuss the business, operations,
prospects, licenses, Property and financial condition of the Borrower and the Restricted
Subsidiaries with the officers thereof and the Accountants; provided
that, so long as no Default or Event of Default exists, none of the
Administrative Agent, its agents, its representatives or the Lenders shall be
entitled to examine or make copies or abstracts of, or otherwise obtain
information with respect to, the Borrower's records relating to pending or
threatened litigation if any such disclosure by the Borrower could reasonably
be expected (i) to give rise to a waiver of any attorney/client privilege of
the Borrower or any of the Restricted Subsidiaries relating to such information
or (ii) to be otherwise materially disadvantageous to the Borrower or any of
the Restricted Subsidiaries in the defense of such litigation.

Section 7.10     
 Licenses,
Intellectual Property

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

Section 7.11     
 Financial
Covenants

(a)        The
Borrower shall maintain at all times Total Indebtedness equal to or less than
75% of Total Capitalization.

(b)        The
Borrower shall maintain at all times Adjusted Total Indebtedness equal to or
less than 65% of Adjusted Total Capitalization).

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

Section 7.12     
 Use of
Proceeds

The proceeds of
the Loans and the Letters of Credit will be used only as follows: (a) to
refinance the Terminating Indebtedness and (b) for general corporate purposes
not inconsistent with the terms hereof.  No part of the proceeds of any Loan or
any Letter of Credit will be used, whether directly or indirectly, and whether
immediately, incidentally or ultimately, (i) to purchase, acquire or carry any
Margin Stock or for any purpose that entails a violation of any of the
regulations of the Board, including Regulations T, U and X or (ii) to fund a
personal loan to or for the benefit of a director or executive offices of the
Borrower or any Subsidiary.

ARTICLE 8.     NEGATIVE COVENANTS

Until the
Commitments have expired or been terminated and the principal of and interest
on each Loan and all fees and other amounts payable under the Loan Documents
shall have been paid in full and  

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all Letters of Credit have
expired and all LC Disbursements have been reimbursed, the Borrower covenants
and agrees with the Credit Parties that:

Section 8.1       
 Indebtedness

The Borrower
shall not create, incur, assume or suffer to exist any Indebtedness or any
other Contingent Obligation, except:

(a)        Indebtedness
under the Loan Documents;

(b)        the
Terminating Indebtedness, provided that the Terminating Indebtedness is
repaid in full on or before the Closing Date;

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

(d)        Contingent
Obligations in respect of obligations and liabilities of the Utility;

(e)        other
Contingent Obligations in respect of Permitted Hedge Agreements, provided
that the aggregate amount of such Contingent Obligations under this clause (e)
shall not exceed $20,000,000 at any time; and

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

Section 8.2       
 Liens

The Borrower
shall not permit any Restricted Subsidiary to create, incur, assume or suffer
to exist any Lien upon any of its Property, whether now owned or hereafter
acquired, except:  

(a)        Liens
for Taxes, assessments or similar charges incurred in the ordinary course of
business which are not delinquent or which are being contested in accordance
with Section 7.4, provided that enforcement of such Liens is stayed
pending such contest;  

(b)            
Liens (i) in connection with workers' compensation, unemployment
insurance or other social security obligations (but not ERISA), (ii) in
connection with deposits or pledges to secure bids, tenders, contracts (other
than contracts for the payment of money), leases, statutory obligations, surety
and appeal bonds and other obligations of like nature arising in the ordinary
course of business, (iii) in connection with, or otherwise constituting, zoning
ordinances, easements, rights of way, minor defects, irregularities, and other
similar restrictions affecting real Property which do not materially and
adversely affect the value of such real Property or the financial condition of
the Borrower or such Restricted Subsidiary, as the case may be, or materially
impair its use for the operation of the business of  

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the Borrower or such Restricted
Subsidiary, as the case may be, (iv) arising by operation of law such as
mechanics', materialmen's, carriers', warehousemen's, lessors' and bankers'
liens and rights of set off incurred in the ordinary course of business which
are not delinquent or which are being contested in accordance with Section 7.6,
provided that enforcement of such Liens is stayed pending such contest,
and (v) arising out of judgments or decrees which are being contested in
accordance with Section 7.6;

(c)        Liens
now existing or hereafter arising in favor of the Administrative Agent or the Lenders
under the Loan Documents;

(d)        any
Lien existing on any property or asset prior to the acquisition thereof by the
Borrower or any of the Restricted Subsidiaries or existing on any property or
asset of any Person that becomes a Restricted Subsidiary after the date hereof
prior to the time such Person becomes a Restricted Subsidiary, provided
that (i) such Lien is not created in contemplation of or in connection with
such acquisition or such Person becoming a Restricted Subsidiary, as the case
may be, (ii) such Lien shall not apply to any other property or assets of the
Borrower or any of the Restricted Subsidiaries, and (iii) such Lien shall
secure only those obligations and liabilities that it secures on the date of
such acquisition or the date such Person becomes a Restricted Subsidiary of the
Borrower, as the case may be, and any extensions, renewals, refinancings and
replacements thereof that do not increase the outstanding amount thereof;

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

(f)        Liens
on Property of the Borrower and the Restricted Subsidiaries existing on the Agreement
Date as set forth on Schedule 8.2 as renewed from time to time, but not
any increases in the amounts secured thereby or the Property subjected to such
Lien thereon;

(g)        Liens
created to secure Indebtedness of any Restricted Subsidiary of the Borrower to
the Borrower or to any of the Borrower's other Restricted Subsidiaries;

(h)        Liens
created to secure sales or factoring of accounts receivable and other
receivables;  

-49-

(i)         Liens
created to secure Indebtedness and other Contingent Obligations permitted under
Section 8.1(f), provided that the aggregate amount of such Indebtedness
and other Contingent Obligations shall not exceed $25,000,000;  

(j)         Liens
on any equity interest (other than an equity interest in the Utility) owned or
otherwise held by or on behalf of the Borrower or any Restricted Subsidiary
created in connection with any project financing;  

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

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

Section 8.3       
 Merger, Consolidation, Purchase or
Sale of Assets, Etc.

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

(a)        sales,
factoring or other dispositions of Permitted Investments, inventory,
receivables and similar Property in the ordinary course of business;

(b)        Asset
Sales by the Borrower to any of the Restricted Subsidiaries and by any of the Restricted
Subsidiaries to the Borrower or any of the other Restricted Subsidiaries;

(c)        (i) sales of transmission assets pursuant to the order of any Governmental
Authority, provided that fair market value shall have been received for
such transmission assets and (ii) other Asset Sales, provided that (A)
no Default or Event of Default shall exist immediately before or after giving
effect thereto and (B) immediately after giving effect thereto, the amount
thereof, when added to the total amount of all Asset Sales made by the Borrower
and the Restricted Subsidiaries during the immediately preceding twelve month
period pursuant to this clause (c)(ii) shall not exceed 18% or more of Material
Total Assets as of the first day of such twelve month period;  

(d)        any
of the Restricted Subsidiaries may merge or consolidate with or into, or
acquire control of, or acquire all or any portion of the assets of any Person, provided
that (i) immediately after giving effect thereto, the total consideration to be
paid by the Restricted Subsidiaries to or for the account of any Person (other
than the Borrower and the Restricted Subsidiaries) in connection therewith, but
not counting purchases or other acquisitions of Property made as part of the Utility's
Integrated Resources Plan, when added to the total consideration paid by the
Borrower and the Restricted Subsidiaries to or for the account of any Person
(other than the Borrower and the Restricted Subsidiaries)  

-50-

in connection with all other mergers,
consolidations and acquisitions permitted under Sections 8.3(d) and 8.3(e)
during the period of the immediately preceding twelve months, shall not exceed
15% of Material Total Assets as of the most recently completed fiscal quarter,
and (ii) in the case of a transaction involving the Utility, the Utility shall
be the survivor entity thereof or, in the event the Utility shall not be the
surviving entity thereof, (1) such surviving entity shall be organized in a
State of the United States with substantially all of its assets and businesses
located and conducted in the United States and (2) the Administrative Agent
shall have received (A) a certificate, in form and substance satisfactory to
the Administrative Agent, (x) attaching a true and complete copy of each
agreement, instrument or other document effecting such merger, consolidation or
acquisition, together with an agreement signed on behalf of such surviving
entity pursuant to which such surviving entity shall have expressly assumed all
of the indebtedness, liabilities and other obligations of the Utility under and
in accordance with the Utility Credit Agreement and the other Loan Documents
(as defined therein), and (y) certifying that such merger, consolidation or
acquisition has been consummated in accordance with such agreements,
instruments or other documents referred to in the immediately preceding clause
(x), and (B) such documents, legal opinions and certificates as the
Administrative Agent shall reasonably request relating to the organization, existence
and, if applicable, good standing of such surviving entity, the authorization
of such merger, consolidation or acquisition and any other legal matters
relating to such surviving entity, the assumption agreement referred to in the
immediately preceding clause (x) or such merger, consolidation or acquisition;
and

(e)        the
Borrower may merge or consolidate with or into, or acquire control of, or
acquire all or any portion of the assets of any Person, provided that:

(i)         immediately
before and after giving effect thereto, no Default or Event of Default shall
exist;

(ii)        immediately
before and after giving effect thereto, all of the representations and
warranties contained in the Loan Documents shall be true and correct except as
the context thereof otherwise requires and except for those representations and
warranties which by their terms or by necessary implication are expressly
limited to a state of facts existing at a time prior to such merger,
consolidation or acquisition, as the case may be, or such other matters
relating thereto as are identified in a writing to the Administrative Agent and
the Lenders and are satisfactory to the Administrative Agent and the Lenders;

(iii)       the
Borrower shall be the surviving entity thereof or each of the following
conditions shall have been satisfied: (i) such surviving entity shall have been
incorporated or otherwise formed in a State of the United States with
substantially all of its assets and business located and conducted in the
United States, (ii) such surviving entity shall, at the time of such merger,
have a senior unsecured long term debt rating of BBB‐ or higher from
S&P and Baa3 or higher from Moody's (provided that, if such
surviving entity shall be a public utility holding company and shall not have
at such time a senior unsecured long term debt rating from S&P and Moody's,
then its primary utility Subsidiary shall have at such time a senior unsecured
long term debt rating of BBB‐ or higher from S&P and Baa3 or higher
from Moody's), and (iii) such surviving entity shall have expressly assumed the
obligations of the Borrower under the Loan Documents pursuant to a writing in
form and substance satisfactory to the Administrative Agent;

(iv)       immediately
after giving effect thereto, the total consideration to be paid by the Borrower
to or for the account of any Person (other than the Restricted Subsidiaries of
the Borrower) in connection therewith, when added to the total consideration
paid by the Borrower and the Restricted Subsidiaries to or for the account of
any Person (other than the Borrower and the Restricted Subsidiaries) in
connection with all mergers, consolidations and acquisitions permitted under
Sections  

-51-

8.3(d) and 8.3(e) during the
immediately preceding twelve month period shall not exceed 15% of Material
Total Assets as of the most recently completed fiscal quarter; and

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

Section 8.4       
 Loans,
Advances, Investments, etc.

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

Section 8.5       
 Amendments,
etc. of Employee Stock Ownership Plan

The Borrower
shall not enter into or agree to any amendment, modification or waiver, or
permit any of the Restricted Subsidiaries so to do, of any term or condition
of, or any of its rights under, the Employee Stock Ownership Plan (other than
amendments and modifications described in the certificate delivered pursuant to
Section 5.5 or required by tax laws to maintain the qualified status under
Section 401(a) of the Code and any adoptive instruments or other agreements
providing for participation in the Employee Stock Ownership Plan by the
Borrower's affiliates), which amendment, modification or waiver could, in the
reasonable opinion of the Administrative Agent, adversely affect the interests
of the Lenders under the Loan Documents.

Section 8.6       
 Restricted
Payments

The Borrower
shall not declare or make, or agree to pay for or make, directly or indirectly,
any Restricted Payment, or permit any of the Restricted Subsidiaries so to do,
except that (i) the Borrower or any of the Restricted Subsidiaries may declare
and pay dividends with respect to its equity securities payable solely in
additional shares of such equity securities, (ii) any of the Restricted
Subsidiaries may declare and pay dividends with respect to its equity
securities to the Borrower or any of the other Restricted Subsidiaries, (iii)
the Borrower may make, and agree to make, payments on account of liabilities
described in clause (vi) of the definition of "Indebtedness" contained herein
and permitted by  

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Section 8.1, (iv) the Borrower
may declare and pay dividends with respect to its preferred equity securities,
(v) if at the time thereof and immediately after giving effect thereto no
Default or Event of Default shall have occurred and be continuing, the Borrower
may declare and pay, and agree to declare and  pay, directly or indirectly, Restricted
Payments in cash to its common shareholders in an amount not in excess of Net
Cash Receipts for the immediately preceding twelve consecutive month period minus
$25 million (tested for the period ending on the last day of the calendar month
preceding the date of the Board of Directors' dividend declaration), and the
Borrower may make and pay such cash dividends so declared within 30 days of
such declaration (without testing the amount of such cash dividends again under
the preceding formula as of the payment date), and (vi) the Borrower or any of
the Restricted Subsidiaries may make, and agree to make, payments on account of
subordinated Indebtedness described in clause (iii) of the definition of
"Restricted Payments" and permitted by the subordination terms applicable
thereto.

Section 8.7       
 Transactions
with Affiliates

The Borrower
shall not, and shall not permit any of the Restricted Subsidiaries to, sell,
transfer, lease or otherwise dispose of (including pursuant to a merger) any
property or assets to, or purchase, lease or otherwise acquire (including
pursuant to a merger) any property or assets from, or otherwise engage in any
other transactions with, any of its affiliates, except in the ordinary course
of business at prices and on terms and conditions not less favorable to the
Borrower or such Restricted Subsidiary, as the case may be, than could be
obtained on an arms length basis from unrelated third parties, provided
that this Section shall not apply to (i) any transaction that is permitted
under Section 8.1, 8.3, 8.4 or 8.6 between or among the Borrower and the Restricted
Subsidiaries and not involving any other affiliate and (ii) any transaction
that is covered by the Inter‐Affiliate Policies Agreement as in effect on
the Agreement Date and any amendments, supplements or other modifications
thereto that are required by applicable law or by applicable Governmental
Authorities.  For purposes of this Section, (i) the term "affiliate" means,
with respect to a specified Person, another Person that directly, or indirectly
through one or more intermediaries, controls or is controlled by or is under
common control with the Person specified and (ii) the term "control" means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person through the ability to
exercise voting power (and the terms "controlling" and "controlled" have
meanings correlative thereto).

Section 8.8       
 Restrictive
Agreements

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

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equity interests in the Utility
or any of the Utility Subsidiaries) owned or otherwise held by or on behalf of
the Borrower, the Utility or any of the Utility Subsidiaries imposed by any
agreement entered into in connection with a project financing.

Section 8.9       
 Permitted
Hedge Agreements

The Borrower
shall not enter into any hedge agreements other than Permitted Hedge
Agreements.

Section 8.10     
 Covenants
Applicable to the Unrestricted Subsidiary Group

The Borrower
shall not permit any Person which is a member of the Unrestricted Subsidiary
Group to, directly or indirectly:

(a)        create,
incur, assume or suffer to exist any Indebtedness or any other Contingent
Obligation, except (i) Indebtedness owed to the Borrower and (ii) any other Indebtedness, provided that upon the creation, incurrence or
assumption of any Indebtedness for Borrowed Money under this clause (ii) after
the Agreement Date of any Person which is member of the Unrestricted Subsidiary
Group, an amount equal to 100% of the proceeds thereof (net of the sum of all
reasonable fees and out‐of‐pocket expenses paid by such Person in
connection with the issuance of such Indebtedness for Borrowed Money) are
immediately distributed to the Borrower (each, an "Unrestricted Subsidiary
Group Distribution") to be applied to the prepayment of the Revolving
Credit Loans or the repayment or repurchase of Senior Notes or to be deposited
in escrow, in each case pursuant to Section 2.6(c);

(b)        create,
incur, assume or suffer to exist any Lien upon any of its Property, whether now
owned or hereafter acquired, except for (i) Liens of the type described in Section 8.2 (other than those described in Section 8.2(i)), (ii) Liens securing Indebtedness described in subsection (a) above and (iii) Liens existing on the Agreement Date as set forth on Schedule 8.10(b) as
renewed from time to time, but not any increases in the amounts secured thereby
or the Property subjected to such Lien thereon;

(c)        enter
into, incur or permit to exist, any agreement or other arrangement that (i)
prohibits it from creating, incurring or permitting to exist any Lien upon any
of its property or assets or (ii) prohibits, restricts or imposes any condition
upon its ability to pay dividends or other distributions with respect to any
shares of its equity securities or to make or repay loans or advances to the
Borrower or any of the Restricted Subsidiaries or to make investments in the
Borrower or any of the Restricted Subsidiaries or to enter into arrangements
for the purpose of providing funds or credit to the Borrower or any of the
Restricted Subsidiaries, provided that (x) the foregoing shall not apply
to prohibitions, restrictions and conditions imposed by corporate law, by this
Agreement or under any instrument pursuant to which the Indebtedness described
in subsection (a)(ii) is issued, (y) the foregoing shall not apply to
prohibitions, restrictions and conditions existing on the Agreement Date
identified on Schedule 8.10(c) (but shall apply to any extension,
renewal, amendment or modification expanding the scope of any such prohibition,
restriction or condition), and (z) clause (i) of this Section shall not apply
to customary provisions in leases restricting the assignment thereof.  

(d)        sell,
transfer, lease or otherwise dispose of (including pursuant to a merger) any
property or assets to, or purchase, lease or otherwise acquire (including
pursuant to a merger) any property or assets from, or otherwise engage in any
other transactions with, any of its affiliates, except in the ordinary course
of business at prices and on terms and conditions not less favorable to such
Person than could be obtained on an arms length basis from unrelated third
parties, provided that this Section shall not apply to (i) any transaction that is permitted under this Section 8.10 between or among the
Borrower and any member or members of the Unrestricted Subsidiary Group and not
involving any other  

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affiliate, (ii) any transaction that is permitted under Sections 8.1(f) or 8.4(vi) between or among the Borrower
and any member or members of the Unrestricted Subsidiary Group and not
involving any other  

affiliate, (iii) loans and advances made by any member of the Unrestricted Subsidiary Group to any other member of
the Unrestricted Subsidiary Group, (iv) arrangements by any member of the
Unrestricted Subsidiary Group for the purpose of providing funds or credit to
any other member of the Unrestricted Subsidiary Group, (v) investments made in the equity securities of any member of the Unrestricted Subsidiary Group by any
other member of the Unrestricted Subsidiary Group, (vi) the declaration and payment of dividends or other distributions of property made by any member of the
Unrestricted Subsidiary Group to the Borrower or any Subsidiary, (vii) the merger of any member of the Unrestricted Subsidiary Group with and into the
Borrower, any Restricted Subsidiary or any other member of the Unrestricted
Subsidiary Group, provided that in the case of any merger or
consolidation to which (x) the Borrower is a party, the Borrower shall be the
survivor and (y) any Restricted Subsidiary is a party, such Restricted Subsidiary
shall be the survivor unless the Borrower is also a party thereto in which case
the Borrower shall be the survivor, (viii) any transaction that is covered by
the Inter‐Affiliate Policies Agreement as in effect on the Agreement Date
and any amendments, supplements or other modifications thereto that are
required by applicable law or by applicable Governmental Authorities.  For
purposes of this subsection (d), (i) the term "affiliate" means, with respect
to a specified Person, another Person that directly, or indirectly through one
or more intermediaries, controls or is controlled by or is under common control
with the Person specified and (ii) the term "control" means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of a Person through the ability to exercise voting power
(and the terms "controlling" and "controlled" have meanings correlative
thereto).  

ARTICLE 9.     EVENTS OF DEFAULT

The following shall each constitute
an "Event of Default" hereunder:

(a)        the
Borrower shall fail to pay any principal of any Loan or any reimbursement
obligation in respect of any LC Disbursement when and as the same shall become
due and payable, whether at the due date thereof or at a date fixed for
prepayment thereof or otherwise; or

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

(c)        the
Borrower shall fail to observe or perform any covenant or agreement contained
in Sections 7.3, 7.11, 7.12 or Article 8; or

(d)        the
Borrower shall fail to observe or perform any other term, covenant, or
agreement contained in any Loan Document and such failure or event shall have
continued unremedied for a period of 30 days after the Borrower shall have
obtained knowledge of such failure or event; or

(e)        any representation
or warranty made in any Loan Document or deemed made by the Borrower pursuant
to Section 6.1, or in any certificate, report (other than an auditor's report),
opinion (other than an opinion of counsel), or other document delivered or to
be delivered pursuant thereto, shall prove to have been incorrect or misleading
(whether because of misstatement or omission) in any material respect when
made; or

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(f)        the
Borrower or any Restricted Subsidiary shall fail to make any payment (whether
of principal, interest or otherwise and regardless of amount) in respect of any
Material Obligations, when and as the same shall become due and payable (after
giving effect to any applicable grace period);  

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

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

(i)         an order
for relief is entered under the United States bankruptcy laws or any other
decree or order is entered by a court having jurisdiction (i) adjudging the
Borrower or any of the Restricted Subsidiaries bankrupt or insolvent, (ii)
approving as properly filed a petition seeking reorganization, liquidation,
arrangement, adjustment or composition of or in respect of Borrower or any of
the Restricted Subsidiaries under the United States bankruptcy laws or any
other applicable Federal or state law, (iii) appointing a receiver, liquidator,
assignee, trustee, custodian, sequestrator (or other similar official) of the
Borrower or any of the Restricted Subsidiaries or of any substantial part of
the Property thereof, or (iv) ordering the winding up or liquidation of the
affairs of the Borrower or any of the Restricted Subsidiaries, and any such
decree or order continues unstayed and in effect for a period of 45 days; or

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

(k)        any Loan
Document shall cease, for any reason, to be in full force and effect or the
Borrower shall so assert in writing or shall disavow any of its obligations thereunder;
or

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(l)         an
ERISA Event shall have occurred that, in the opinion of the Required Lenders,
when taken together with all other ERISA Events that have occurred, could
reasonably be expected to result in a Material Adverse Effect; or

(m)       any authorization
or approval or other action by any Governmental Authority required for the
execution, delivery or performance of any Loan Document shall be terminated,
revoked or rescinded or shall otherwise no longer be in full force and effect;

(n)        a
Change in Control shall occur or a change in control, fundamental change or any
similar circumstance which, under the Indenture or the Utility Indenture
(including any supplemental indentures thereto) results in an obligation of the
Borrower or the Utility to prepay, purchase, offer to purchase, redeem or defease
in excess of $5,000,000 of Indebtedness thereunder.

Upon the
occurrence of an Event of Default or at any time thereafter during the
continuance thereof, (a) if such event is an Event of Default specified in
clause (h) or (i) of this Article 9, the Aggregate Commitments shall
immediately and automatically terminate and the Loans, all accrued and unpaid
interest thereon and all other amounts owing under the Loan Documents shall
immediately become due and payable, and the Administrative Agent may, and, upon
the direction of the Required Lenders shall, exercise any and all remedies and
other rights provided in the Loan Documents, and (b) if such event is any other
Event of Default, any or all of the following actions may be taken: (i) with
the consent of the Required Lenders, the Administrative Agent may, and upon the
direction of the Required Lenders shall, by notice to the Borrower, declare the
Aggregate Commitments to be terminated forthwith, whereupon the Aggregate
Commitments shall immediately terminate, and (ii) with the consent of the
Required Lenders, the Administrative Agent may, and upon the direction of the
Required Lenders shall, by notice of default to the Borrower, declare the
Loans, all accrued and unpaid interest thereon, and all other amounts owing
under the Loan Documents to be due and payable forthwith, whereupon the same
shall immediately become due and payable, and the Administrative Agent may, and
upon the direction of the Required Lenders shall, exercise any and all remedies
and other rights provided pursuant to the Loan Documents.  Except as otherwise
provided in this Section, presentment, demand, protest and all other notices of
any kind are hereby expressly waived.  The Borrower hereby further expressly
waives and covenants not to assert any appraisement, valuation, stay,
extension, redemption or similar laws, now or at any time hereafter in force
which might delay, prevent or otherwise impede the performance or enforcement
of any Loan Document.

In the event
that the Aggregate Commitments shall have been terminated or the Loans, accrued
and unpaid interest thereon and all other amounts owing under the Loan
Documents shall have been declared due and payable pursuant to the provisions
of this Section, any funds received by the Administrative Agent and the Lenders
from or on behalf of the Borrower shall be applied by the Administrative Agent and
the Lenders in liquidation of the Loans and the obligations of the Borrower
under the Loan Documents in the following manner and order: (i) first, to the
payment of interest on, and then the principal portion of, any Loans which the
Administrative Agent may have advanced on behalf of any Lender for which the
Administrative Agent has not then been reimbursed by such Lender or the
Borrower; (ii) second, to the payment of any fees or expenses due to the
Administrative Agent from the Borrower hereunder, (iii) third, to reimburse the
Administrative Agent and the Lenders for any expenses (to the extent not paid
pursuant to clause (ii) above) due from the Borrower pursuant to the provisions
of Section 11.4; (iv) fourth, to the payment of accrued Facility Fees, LC Fees
and all other fees, expenses and amounts due under the Loan Documents (other
than principal of, and interest on, the Loans); (v) fifth, to the payment of
interest due on the Loans; (vi) sixth, to the payment of principal outstanding
on the Loans, pro rata according to each Lender's aggregate outstanding Loans;
and (vii) seventh, to the payment of any other amounts owing to the
Administrative Agent and the Lenders under any Loan Document.

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ARTICLE 10.   THE ADMINISTRATIVE AGENT

Section 10.1     
 Appointment

Each Credit
Party hereby irrevocably designates and appoints BNY as the Administrative
Agent of such Credit Party under the Loan Documents and each such Credit Party
hereby irrevocably authorizes BNY, as the Administrative Agent for such Credit
Party, to take such action on its behalf under the provisions of the Loan
Documents and to exercise such powers and perform such duties as are expressly
delegated to the Administrative Agent by the terms of the Loan Documents,
together with such other powers as are reasonably incidental thereto. 
Notwithstanding any provision to the contrary elsewhere in any Loan Document, (i)
the Administrative Agent shall not have any duties or responsibilities other
than those expressly set forth therein, or any fiduciary relationship with any
Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into the Loan Documents or otherwise
exist against the Administrative Agent and (ii) none of the Syndication Agent, the
Documentation Agent or the Managing Agents shall have any duty or obligation
under the Loan Documents.

Section 10.2     
 Delegation of
Duties

The
Administrative Agent may execute any of its duties under the Loan Documents by
or through agents or attorneys‐in‐fact and shall be entitled to
rely upon the advice of counsel concerning all matters pertaining to such
duties.

Section 10.3     
  Exculpatory
Provisions

Neither the
Administrative Agent nor any of its Related Parties shall be (i) liable for any
action lawfully taken or omitted to be taken by it or such Person under or in
connection with the Loan Documents (except the Administrative Agent for its own
gross negligence or willful misconduct) or (ii) responsible in any manner to
any Credit Party for any recitals, statements, representations or warranties
made by the Borrower or any officer thereof contained in the Loan 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 with,
the Loan Documents or for the value, validity, effectiveness, genuineness,
perfection, enforceability or sufficiency of any of the Loan Documents or for
any failure of the Borrower or any other Person to perform its obligations thereunder. 
The Administrative Agent shall not be under any obligation to any Credit Party
to ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, the Loan Documents, or to inspect
the properties, books or records of the Borrower.  The Administrative Agent
shall not be under any liability or responsibility whatsoever, as
Administrative Agent, to the Borrower or any other Person as a consequence of
any failure or delay in performance, or any breach, by any Lender of any of its
obligations under any of the Loan Documents.

Section 10.4     
 Reliance by
Administrative Agent

The
Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any writing, resolution, notice, consent, certificate, affidavit,
opinion, letter, cablegram, telegram, fax, telex or teletype message,
statement, order or other document or conversation believed by it to be genuine
and correct and to have been signed, sent or made by the proper Person or Persons
and upon advice and statements of legal counsel (including counsel to the
Borrower), independent accountants and other experts selected by the
Administrative Agent.  The Administrative Agent may treat each Credit Party, or
the Person designated in the last notice filed with it under this Section, as
the holder of all of the interests of such Credit Party in its Loans,
participations in Letters of Credit and in its Notes until written  

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notice of transfer, signed by
such Credit Party (or the Person designated in the last notice filed with the
Administrative Agent) and by the Person designated in such written notice of
transfer, in form and substance satisfactory to the Administrative Agent, shall
have been filed with the Administrative Agent.  The Administrative Agent shall
not be under any duty to examine or pass upon the validity, effectiveness,
enforceability, perfection or genuineness of the Loan Documents or any
instrument, document or communication furnished pursuant thereto or in
connection therewith, and the Administrative Agent shall be entitled to assume
that the same are valid, effective and genuine, have been signed or sent by the
proper parties and are what they purport to be.  The Administrative Agent shall
be fully justified in failing or refusing to take any action under the Loan
Documents unless it shall first receive such advice or concurrence of the
Required Lenders as it deems appropriate.  The Administrative Agent shall in
all cases be fully protected in acting, or in refraining from acting, under the
Loan Documents in accordance with a request or direction of the Required
Lenders, and such request or direction and any action taken or failure to act
pursuant thereto shall be binding upon all the Credit Parties and all future
holders of the Notes.

Section 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 unless the Administrative Agent
has received written notice thereof from a Credit Party or the Borrower.  In
the event that the Administrative Agent receives such a notice, the
Administrative Agent shall promptly give notice thereof to the Credit Parties
and the Borrower.  The Administrative Agent shall take such action with respect
to such Default or Event of Default as shall be directed by the Required
Lenders, provided, however, that unless and until the
Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it
shall deem to be in the best interests of the Credit Parties.

Section 10.6     
 Non Reliance
on Administrative Agent and Other Lenders

Each Credit
Party expressly acknowledges that neither the Administrative Agent nor any of
its Related Parties has made any representations or warranties to it and that
no act by the Administrative Agent hereinafter, including any review of the
affairs of the Borrower, shall be deemed to constitute any representation or
warranty by the Administrative Agent to any Credit Party.  Each Credit Party
represents to the Administrative Agent that it has, independently and without
reliance upon the Administrative Agent or any other Credit Party, and based on
such documents and information as it has deemed appropriate, made its own
evaluation of and investigation into the business, operations, Property,
financial and other condition and creditworthiness of the Borrower and made its
own decision to enter into this Agreement.  Each Credit Party also represents
that it will, independently and without reliance upon the Administrative Agent
or any other Credit Party, and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit analysis,
evaluations and decisions in taking or not taking action under any Loan
Document, and to make such investigation as it deems necessary to inform itself
as to the business, operations, Property, financial and other condition and
creditworthiness of the Borrower.  Except for notices, reports and other
documents expressly required to be furnished to the Credit Parties by the
Administrative Agent hereunder, the Administrative Agent shall not have any
duty or responsibility to provide any Credit Party with any credit or other
information concerning the business, operations, Property, financial and other
condition 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.

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Section 10.7     
 Administrative
Agent in Its Individual Capacity  

BNY and its
Related Parties may make loans to, accept deposits from, issue letters of
credit for the account of, and generally engage in any kind of business with,
the Borrower as though BNY were not Administrative Agent hereunder.  With
respect to the Commitment and Loans made or renewed by BNY and the Note issued
to BNY, BNY shall have the same rights and powers under the Loan Documents as
any Lender and may exercise the same as though it were not the Administrative
Agent, and the terms "Lender" and "Lenders" shall in each case include BNY.

Section 10.8     
 Successor
Administrative Agent

If at any time
the Administrative Agent deems it advisable, in its sole discretion, it may
submit to each of the Lenders a written notice of its resignation as
Administrative Agent under the Loan Documents, such resignation to be effective
upon the earlier of (i) the written acceptance of the duties of the
Administrative Agent under the Loan Documents by a successor Administrative
Agent and (ii) on the 30th day after the date of such notice.  Upon any such
resignation, the Required Lenders shall have the right to appoint from among
the Lenders a successor Administrative Agent.  If no successor Administrative
Agent shall have been so appointed by the Required Lenders and accepted such
appointment in writing within 30 days after the retiring Administrative Agent's
giving of notice of resignation, then the retiring Administrative Agent may, on
behalf of the Lenders and with the consent of the Borrower, such consent not to
be unreasonably withheld and not to be required during the existence of an
Event of Default, appoint a successor Administrative Agent, which successor
Administrative Agent shall be a commercial bank organized under the laws of the
United States or any State thereof and having a combined capital, surplus, and
undivided profits of at least $100,000,000.  Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor Administrative
Agent, 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's rights,
powers, privileges and duties as Administrative Agent under the Loan Documents
shall be terminated.  The Borrower and the Lenders shall execute such documents
as shall be necessary to effect such appointment.  After any retiring
Administrative Agent's resignation as Administrative Agent, the provisions of
the Loan Documents shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was Administrative Agent under the Loan Documents. 
If at any time there shall not be a duly appointed and acting Administrative
Agent, the Borrower agrees to make each payment due under the Loan Documents
directly to the Lenders entitled thereto during such time.

ARTICLE 11.   OTHER PROVISIONS
 

Section 11.1     
 Amendments and
Waivers

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

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(b)        Neither
any Loan Document nor any provision thereof may be waived, amended or modified
except pursuant to an agreement or agreements in writing entered into by the
Borrower and the Required Lenders or by the Borrower and the Administrative
Agent with the consent of the Required Lenders, provided that no such
agreement shall (i) increase any Commitment of any Lender without the written
consent of such Lender or increase the Aggregate Commitments, (ii) reduce the
principal amount of any Loan or any reimbursement obligation with respect to a
LC Disbursement, or reduce the rate of any interest, or reduce any fees,
payable under the Loan Documents, without the written consent of each Credit
Party affected thereby, (iii) postpone the date of payment at stated maturity
of any Loan or the date of payment of any reimbursement obligation with respect
to an LC Disbursement, any interest or any fees payable under the Loan
Documents, or reduce the amount of, waive or excuse any such payment, or
postpone the stated termination or expiration of the Commitments without the
written consent of each Credit Party affected thereby, (iv) change any
provision hereof in a manner that would alter the pro rata sharing of payments
required by Section 3.2(b) or the pro rata reduction of Commitments required by
Section 2.5(c) or the pro rata funding of Revolving Credit Loans required by
Section 2.3(b), without the written consent of each Credit Party affected
thereby, (v) change any of the provisions of this Section or the definition of
the term "Required Lenders" or any other provision hereof specifying the number
or percentage of Lenders required to waive, amend or modify any rights
hereunder or make any determination or grant any consent hereunder, or change
the currency in which Loans are to be made, Letters of Credit are to be issued
or payment under the Loan Documents are to be made, or add additional borrowers
without the written consent of each Lender, and provided, further,
that no such agreement shall amend, modify or otherwise affect the rights or
duties of the Administrative Agent or the Issuing Bank hereunder without the
prior written consent of the Administrative Agent or the Issuing Bank, as
applicable.

Section 11.2     
 Notices

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

(a)        if
to the Borrower, to it at 2030 Donahue Ferry Road, Pineville, LA 71360 5226;
Attention: Michael Sawrie (Telephone: (318) 484‐7589; Facsimile: (318)
484‐7697);  

(b)        if
to the Administrative Agent, or BNY as Issuing Bank, to it at Agency Funding
Administration, One Wall Street, 18th Floor, New York, New York 10286,
Attention of: Sandra Morgan, Agency Function Administration, 18th Floor,
(Telephone No. (212) 635‐4692); Facsimile No. (212) 635‐6365
or 6366 or 6367, with a copy to The Bank of New York, at Energy Industries
Division, One Wall Street, 19th Floor, New York, New York 10286, Attention of: Cynthia
Howells (Telephone No. (212) 635‐7889; Facsimile No. (212) 635‐7924);
and

(c)        if
to any other Credit Party, to it at its address (or facsimile number) set forth
in its Administrative Questionnaire;

provided that any notice,
request or demand by the Borrower to or upon the Administrative Agent or the
Lenders pursuant to Sections 2.3, 2.4, 2.5, 2.6 or 2.7 shall not be effective
until received.  Any party to a Loan Document may rely on signatures of the
parties thereto which are transmitted by facsimile or other electronic means as
fully as if originally signed.  Any party hereto may change its address or
facsimile number for notices and other communications hereunder by notice to
the other parties hereto. All notices and other communications given to any
party hereto in accordance with the provisions of this Agreement shall be
deemed to have been given on the date of receipt.

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Section 11.3     
 Survival

All covenants,
agreements, representations and warranties made by the Borrower herein and in
the certificates or other instruments prepared or delivered in connection with
or pursuant to this Agreement or any other Loan Document shall be considered to
have been relied upon by the other parties hereto and shall survive the
execution and delivery of any Loan Document and the making of any Loans and the
issuance of any Letter of Credit, regardless of any investigation made by any
such other party or on its behalf and notwithstanding that any Credit Party may
have had notice or knowledge of any Default or incorrect representation or
warranty at the time any credit is extended hereunder, and shall continue in
full force and effect as long as the principal of or any accrued interest on
any Loan or any LC Disbursement or any fee or any other amount payable under
the Loan Documents is outstanding and unpaid or any Letter of Credit is
outstanding and so long as the Commitments have not expired or terminated. The
provisions of Sections 2.10, 2.11, 2.12, 2.13, 11.4, 11.10 and 11.11 and
Article 10 shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the
Loans and the LC Disbursements, the expiration or termination of the Letters of
Credit and the termination of the Commitments or the termination of this
Agreement or any provision hereof.

Section 11.4     
 Expenses;
Indemnity; Damage Waiver

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

(b)        The
Borrower shall indemnify each Credit Party and each Related Party thereof (each
such Person being called an "Indemnified Party") against, and hold each
Indemnified Party harmless from, any and all losses, claims, damages,
liabilities and related expenses, including the fees, charges and disbursements
of any counsel for any Indemnified Party, incurred by or asserted against any
Indemnified Party arising out of, in connection with, or as a result of (i) the
execution or delivery of any Loan Document or any agreement or instrument
contemplated thereby, the performance by the parties to the Loan Documents of
their respective obligations thereunder or the consummation of the transactions
contemplated by the Loan Documents, (ii) any Loan or Letter of Credit or the
use of the proceeds thereof including any refusal of the Issuing Bank to honor
a demand for payment under a Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such
Letter of Credit, (iii) any actual or alleged presence or release of Hazardous
Materials on or from any property owned or operated by the Borrower or any of
the Subsidiaries, or any Environmental Liability related in any way to the
Borrower or any of the Subsidiaries or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory and regardless of whether
any Indemnified Party is a party thereto, provided that such indemnity
shall not, as to any Indemnified Party, be available to the extent that such
losses, claims, damages,  

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liabilities or related expenses
are determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnified Party or arising solely from claims between one such
Indemnified Party and another such Indemnified Party.  

(c)        To
the extent that the Borrower fails to pay any amount required to be paid by it
to the Administrative Agent or the Issuing Bank under paragraph (a) or (b) of
this Section, each Lender severally agrees to pay to the Administrative Agent
or the Issuing Bank, as applicable, an amount equal to the product of such
unpaid amount multiplied by a fraction, the numerator of which is the
sum of such Lender's unused Commitments plus the outstanding principal
balance of such Lender's Loans and the denominator of which is the sum of the
unused Commitments plus the outstanding principal balance of all Lenders Loans
(in each case determined as of the time that the applicable unreimbursed
expense or indemnity payment is sought or, in the event that no Lender shall
have any unused Commitments or outstanding Loans at such time, as of the last
time at which any Lender had any unused Commitments or outstanding Loans), provided
that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as applicable, was incurred by or asserted against the
Administrative Agent or the Issuing Bank, as applicable, in its capacity as
such.

(d)        To
the extent permitted by applicable law, the Borrower shall not assert, and
hereby waives, any claim against any Indemnified Party, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct and actual damages) arising out of, in connection with, or as a
result of, any Loan Document or any agreement, instrument or other document
contemplated thereby, the transactions contemplated by the Loan Documents or
any Loan or any Letter of Credit or the use of the proceeds thereof.

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

Section 11.5     
 Lending
Offices

Each Lender
shall have the right at any time and from time to time to transfer its Loans to
a different office, provided that such Lender shall promptly notify the
Administrative Agent and the Borrower of any such change of office.  Such
office shall thereupon become such Lender's Domestic Lending Office or
Eurodollar Lending Office, as the case may be, provided, however,
that no such Lender shall be entitled to receive any greater amount under
Section 2.11, 2.12 or 2.13 as a result of a transfer of any such Loans to a
different office of such Lender than it would be entitled to immediately prior
thereto unless such claim would have arisen even if such transfer had not
occurred.

Section 11.6     
 Assignments
and Participations

(a)        The
provisions of the Loan Documents shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns permitted
hereby, except that the Borrower may not assign or otherwise transfer any of
its rights or obligations hereunder without the prior written consent of each
Credit Party (and any attempted assignment or transfer by the Borrower without
such consent shall be null and void). Nothing in the Loan Documents, expressed
or implied, shall be construed to confer upon any Person (other than the
parties hereto, their respective successors and assigns permitted hereby and,
to the extent expressly contemplated hereby, the Related Parties of each Credit
Party) any legal or equitable right, remedy or claim under or by reason of any
Loan Document.

(b)        Any
Lender may assign to one or more Eligible Assignees all or a portion of its
rights and obligations under the Loan Documents (including all or a portion of
its Commitment or  

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obligations in respect of its LC
Exposure and the applicable Loans at the time owing to it), provided
that (i) except in the case of an assignment to a Lender or an Affiliate or an
Approved Fund of a Lender, each of the Borrower, the Administrative Agent and
the Issuing Bank must give its prior written consent to such assignment (which
consent shall not be unreasonably withheld or delayed)), (ii) except in the
case of an assignment to a Lender or an Affiliate or an Approved Fund of a
Lender or an assignment of the entire remaining amount of the assigning
Lender's Commitment, the amount of the Commitment of the assigning Lender
subject to each such assignment (determined as of the date the Assignment and
Acceptance Agreement with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $5,000,000 unless the Borrower and
the Administrative Agent otherwise consent, (iii) no assignments to the
Borrower or any of its Affiliates shall be permitted, (iv) the parties to each
assignment shall execute and deliver to the Administrative Agent an Assignment
and Acceptance Agreement together with, unless otherwise agreed by the
Administrative Agent, a processing and recordation fee of $3,500, and (v) the
assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire, and provided further, that
any consent of the Borrower otherwise required under this paragraph shall not
be required if a Default has occurred and is continuing.  Subject to acceptance
and recording thereof pursuant to paragraph (d) of this Section, from and after
the effective date specified in each Assignment and Acceptance Agreement, the
assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Acceptance Agreement, have the rights and
obligations of a Lender under the Loan Documents, and the assigning Lender thereunder
shall, to the extent of the interest assigned by such Assignment and Acceptance
Agreement, be released from its obligations under the Loan Documents (and, in
the case of an Assignment and Acceptance Agreement covering all of the
assigning Lender's rights and obligations under the Loan Documents, such Lender
shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.11, 2.12, 2.13 and 11.4). Any assignment or transfer by
a Lender of rights or obligations under the Loan Documents that does not comply
with this paragraph shall be treated for purposes of the Loan Documents as a
sale by such Lender of a participation in such rights and obligations in
accordance with paragraph (e) of this Section.

(c)        The
Administrative Agent, acting for this purpose as an agent of the Borrower,
shall maintain at one of its offices in New York City a copy of each Assignment
and Acceptance Agreement delivered to it and a register for the recordation of
the names and addresses of the Lenders, and the Commitment of, and principal
amount of the Revolving Credit Loans owing to, each Lender pursuant to the
terms hereof from time to time (the "Register"). The entries in the
Register shall be conclusive absent clearly demonstrable error, and the
Borrower and each Credit Party may treat each Person whose name is recorded in
the Register pursuant to the terms hereof as a Lender hereunder for all
purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by the Borrower and any Credit
Party, at any reasonable time and from time to time upon reasonable prior
notice.

(d)        Upon
its receipt of a duly completed Assignment and Acceptance Agreement executed by
an assigning Lender and an assignee, the assignee's completed Administrative
Questionnaire (unless the assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b) of this Section and
any written consent to such assignment required by paragraph (b) of this Section,
the Administrative Agent shall accept such Assignment and Acceptance Agreement
and record the information contained therein in the Register. No assignment
shall be effective for purposes of this Agreement unless it has been recorded
in the Register as provided in this paragraph.

(e)        Any
Lender may, without the consent of the Borrower or any Credit Party, sell
participations to one or more banks or other entities other than the Borrower
or any of its Affiliates (each such bank or other entity being called a "Participant")
in all or a portion of such Lender's rights and obligations under the Loan
Documents (including all or a portion of its Commitment, LC Exposure, and  

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outstanding Revolving Credit
Loans owing to it), provided that (i) such Lender's obligations under
the Loan Documents shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (iii) the Borrower and the Credit Parties shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under the Loan Documents. Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall
retain the sole right to enforce the Loan Documents and to approve any
amendment, modification or waiver of any provision of any Loan Documents, provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, modification or
waiver described in the first proviso to Section 11.1(b) that affects such
Participant. Subject to paragraph (f) of this Section, the Borrower agrees that
each Participant shall be entitled to the benefits of Sections 2.11, 2.12 and
2.13 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (b) of this Section. To the extent permitted
by law, each Participant also shall be entitled to the benefits of Section 11.9
as though it were a Lender, provided that such Participant agrees to be
subject to Section 3.2(c) as though it were a Lender.

(f)        A
Participant shall not be entitled to receive any greater payment under Section
2.11 or 2.12 than the Lender would have been entitled to receive with respect
to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower's prior written
consent. A Participant that would be a Lender organized under the laws of a
jurisdiction other than the United States or any State thereof if it were a
Lender shall not be entitled to the benefits of Section 2.11 unless the
Borrower is notified of the participation sold to such Participant and such
Participant agrees, for the benefit of the Borrower, to comply with Section
2.11(d) as though it were a Lender.

(g)        Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under the Loan Documents to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank, and this Section shall not apply to any such pledge or assignment
of a security interest, provided that no such pledge or assignment of a
security interest shall release a Lender from any of its obligations under the
Loan Documents or substitute any such pledgee or assignee for such Lender as a
party hereto.

Section 11.7     
 Counterparts;
Integration; Effectiveness

This Agreement
may be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which,
when taken together, shall constitute but one contract. This Agreement and any
separate letter agreements with respect to fees payable to any Credit Party or
the syndication of the credit facilities established hereunder constitute the
entire contract among the parties relating to the subject matter hereof and
supersede any and all previous agreements and understandings, oral or written,
relating to the subject matter hereof. Except as provided in Article 5, this
Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received
counterparts hereof which, when taken together, bear the signatures of each of
the other parties and thereafter shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns. Delivery of
an executed counterpart of this Agreement by facsimile transmission shall be
effective as delivery of a manually executed counterpart of this Agreement.

Section 11.8     
 Severability

In the event
any one or more of the provisions contained in this Agreement should be held
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein shall not in any
way be affected or impaired thereby (it being  

-65-

understood that the invalidity of
a particular provision in a particular jurisdiction shall not in and of itself
affect the validity of such provision in any other jurisdiction).  The parties
shall endeavor in good faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

Section 11.9     
 Right of Set
off

In addition to
any rights and remedies of the Lenders provided by law, upon the occurrence of
an Event of Default and the acceleration of the obligations owing in connection
with the Loan Documents, or at any time upon the occurrence and during the
continuance of an Event of Default under clause (a) of Article 9, each Lender
shall have the right, without prior notice to the Borrower, any such notice
being expressly waived by the Borrower to the extent not prohibited by
applicable law, to set off and apply against any indebtedness, whether matured
or unmatured, of the Borrower to such Lender, any amount owing from such Lender
to the Borrower, at, or at any time after, the happening of any of the above
mentioned events.  To the extent not prohibited by applicable law, the
aforesaid right of set off may be exercised by such Lender against the Borrower
or against any trustee in bankruptcy, custodian, debtor in possession, assignee
for the benefit of creditors, receiver, or execution, judgment or attachment
creditor of the Borrower, or against anyone else claiming through or against
the Borrower or such trustee in bankruptcy, custodian, debtor in possession,
assignee for the benefit of creditors, receiver, or execution, judgment or
attachment creditor, notwithstanding the fact that such right of set off shall
not have been exercised by such Lender prior to the making, filing or issuance,
or service upon such Lender of, or of notice of, any such petition, assignment
for the benefit of creditors, appointment or application for the appointment of
a receiver, or issuance of execution, subpoena, order or warrant.  Each Lender
agrees promptly to notify the Borrower and the Administrative Agent after any
such set off and application made by such Lender, provided that the
failure to give such notice shall not affect the validity of such set off and
application.

Section 11.10   
 Governing Law;
Jurisdiction; Consent to Service of Process

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

(b)        The
Borrower hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any New York State court or
Federal court of the United States of America sitting in New York City, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement or the other Loan Documents, or for recognition or enforcement
of any judgment, and each of the parties hereto hereby irrevocably and
unconditionally agrees that, to the extent permitted by applicable law, all
claims in respect of any such action or proceeding may be heard and determined
in such New York State court or, to the extent permitted by applicable law, in
such Federal court. Each of the parties hereto agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement shall affect any right that the Administrative Agent
or any other Credit Party may otherwise have to bring any action or proceeding
relating to this Agreement or the other Loan Documents against the Borrower, or
any of its property, in the courts of any jurisdiction.

(c)        The
Borrower hereby irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection that it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement or the other Loan Documents in any court
referred to in paragraph (b) of this Section. Each of the parties hereto hereby

-66-

irrevocably waives, to the fullest
extent permitted by applicable law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

(d)        Each party to this
Agreement irrevocably consents to service of process in the manner provided for
notices in Section 11.2. Nothing in this Agreement will affect the right of any
party to this Agreement to serve process in any other manner permitted by law.

Section 11.11   
 WAIVER OF
JURY TRIAL

EACH PARTY
HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR
INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS CREDIT AGREEMENT.
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS CREDIT AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

Section 11.12   
 Headings

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

[Signature Pages
Follow]

-67-

CLECO CORPORATION

CREDIT AGREEMENT

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

CLECO
CORPORATION  

By: /s/ Dilek Samil         

Name: Dilek Samil

Title: Executive Vice President & CFO

CLECO
CORPORATION

CREDIT AGREEMENT

THE BANK OF NEW YORK, Individually

and as Administrative Agent

By: /s/ Cynthia Howells                                      

Name: Cynthia Howells

Title: Vice President  

CLECO
CORPORATION

CREDIT AGREEMENT

BANK ONE, NA, Individually and as
Syndication Agent

By: /s/ Dawn M. Lawer  

Name: Dawn M. Lawer

Title: Managing Director

CLECO
CORPORATION

CREDIT AGREEMENT

WESTLB AG, NEW YORK BRANCH,
Individually and as Documentation Agent

By: /s/ Jeffrey S. Davidson         

Name: Jeffrey S. Davidson

Title:  Associate Director

By: /s/ Salvatore Battinelli           

Name: Salvatore Battinelli

Title: Managing Director Credit Department

CLECO
CORPORATION

CREDIT AGREEMENT

ALLIED IRISH BANKS, P.L.C.
Individually and as a Managing Agent

By:  /s/ Aidan Lanigan     

Name: Aidan Lanigan

Title: Assistant Vice President

 

 

By: /s/ Anthony O'Reilly           
 

Name: Anthony O'Reilly

Title: Vice President

CLECO
CORPORATION

CREDIT AGREEMENT

COBANK, ACB Individually and as a
Managing Agent

By: /s/ Paul Podany      
 

Name: Paul Podany

Title: Assistant Vice President

CLECO
CORPORATION

CREDIT AGREEMENT

                      COMMERZBANK AG, NEW YORK AND GRAND                
                      CAYMAN BRANCHES Individually and as a Managing Agent

By:  /s/ Harry P. Yergey   

Name: Harry P. Yergey

Title: Senior Vice President &
Manager

 

 

By: /s/ Subash R. Viswanathan    

Name: Subash R. Viswanathan

Title: Senior Vice President

CLECO
CORPORATION

CREDIT AGREEMENT

KEYBANK NATIONAL ASSOCIATION Individually
and as a Managing Agent

By: /s/ Sherrie I. Manson           
 

Name: Sherrie I. Manson

Title: Vice President

CLECO
CORPORATION

CREDIT AGREEMENT

CREDIT SUISSE FIRST BOSTON, acting
through its Cayman Islands Branch

By: /s/ Sarah Wu           

Name: Sarah Wu

Title: Vice President

By: /s/ S. William Fox    

Name: S. William Fox

Title: Director

CLECO CORPORATION

CREDIT AGREEMENT

GOLDMAN SACHS CREDIT PARTNERS L.P.

By: /s/ Robert Wagner    

Name: Robert Wagner

Title: Authorized Signatory

CLECO
CORPORATION

CREDIT AGREEMENT

REGIONS BANK

By: /s/ Tammy Foshee   

Name: Tammy Foshee

Title: Assistant Vice President, Corporate Banking Regions Bank

CLECO
CORPORATION

CREDIT AGREEMENT

                        WHITNEY NATIONAL BANK

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

                       
Name:     Edgar W. Santa Cruz, III

                       
Title:       Vice President

CLECO
CORPORATION

CREDIT AGREEMENT

                            HIBERNIA NATIONAL BANK

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

                           
Name:    Kermit W. Pharris, Jr.

                           
Title:      Vice President

CLECO
CORPORATION

CREDIT AGREEMENT

THE BANK OF TOKYO-MITSUBISHI, LTD.,

HOUSTON AGENCY

By: /s/ John M. Mearns  

Name: John M. Mearns

Title: Vice President & Manager

By: /s/ Joey Powell        

Name: Joey Powell

Title: Assistant Vice President

CLECO
CORPORATION

CREDIT AGREEMENT

UNION BANK OF CALIFORNIA, N.A.

By: /s/ Susan K. Johnson            

Name: Susan K. Johnson

Title: Vice President

CLECO
CORPORATION

CREDIT AGREEMENT

BANK HAPOALIM B.M.

By: /s/ Marc Bosc          

Name: Marc Bosc

Title: Vice President

By: /s/ Lenroy Hackett   

Name: Lenroy Hackett

Title: SVP

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