Document:

CONFORMED COPY OF 364 Day CREDIT AGREEMENT FOR CLECO POWER, Exhibit 10(d)

EXHIBIT 10(d)

EXECUTION COPY

  

  

	
  
	
    
  

	
  364 DAY CREDIT
  AGREEMENT

  

  dated as of April 30, 2004

  

  among

  

  CLECO POWER LLC,

  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

  WESTLB AG, NEW YORK BRANCH,

  as Co-Lead Arrangers

  BNY CAPITAL MARKETS, INC.,

  as Book Runner

  
	
   

  
	
  Bryan Cave LLP

  1290 Avenue of the Americas

  New York, New York 10104

  

  

 

TABLE OF CONTENTS

Page

	
  ARTICLE 1. DEFINITIONS

  
  

   

  	
  1

	
   

  	
  Section 1.1

  	
  Defined Terms

  	
  1

	
   

  	
  Section 1.2

  	
  Terms Generally

  	
  16

	
   

  	
  Section 1.3

  	
  Accounting Terms

  
  

   

  	
   16

  
	
  ARTICLE 2. AMOUNT AND TERMS OF LOANS

  
  

   

  	
  16

	
   

  	
  Section 2.1

  	
  Revolving Credit Loans

  	
  16
	
   

  	
  Section 2.2

  	
  Notes

  	
  17
	
   

  	
  Section 2.3

  	
  Revolving Credit Loans;
  Procedure

  	
  17
	
   

  	
  Section 2.4

  	
  Competitive Bid Loans;
  Procedure

  	
  18
	
   

  	
  Section 2.5

  	
  Termination and Reduction
  of Aggregate Commitments

  	
  20
	
   

  	
  Section 2.6

  	
  Prepayments of the Loans

  	
  21
	
   

  	
  Section 2.7

  	
  Conversions and
  Continuations

  	
  21
	
   

  	
  Section 2.8

  	
  Letters of Credit

  	
  22
	
   

  	
  Section 2.9

  	
  Interest Rate and Payment
  Dates

  	
  26
	
   

  	
  Section
  2.10

  	
  Substituted Interest Rate

  	
  27
	
   

  	
  Section
  2.11

  	
  Taxes

  	
  27
	
   

  	
  Section
  2.12

  	
  Increased Costs; Illegality

  	
  29
	
   

  	
  Section
  2.13

  	
  Break Funding Payments

  	
  31
	
   

  	
  Section
  2.14

  	
  Lenders' Records

  	
  31
	
   

  	
  Section
  2.15

  	
  Extension of
  Commitment Period and Maturity Date

  	
  31
	
   

  	
  Section
  2.16

  	
  Substitution of Lender

  
  

   

  	
  32
	
  ARTICLE 3. FEES; PAYMENTS

  
  

   

  	
  33
	
   

  	
  Section 3.1

  	
  Fees

  	
  33
	
   

  	
  Section 3.2

  	
  Pro Rata Treatment and
  Application of Principal Payments

  
  

   

  	
  
  34

	
  ARTICLE 4. REPRESENTATIONS AND WARRANTIES

  
  

   

  	
  
  35

	
   

  	
  Section 4.1

  	
  Subsidiaries;
  Capitalization

  	
  35
	
   

  	
  Section 4.2

  	
  Existence and Power

  	
  35
	
   

  	
  Section 4.3

  	
  Authority

  	
  36
	
   

  	
  Section 4.4

  	
  Binding Agreement

  	
  36
	
   

  	
  Section 4.5

  	
  Litigation
  and Regulatory Proceedings

  	
  36
	
   

  	
  Section 4.6

  	
  Required Consents

  	
  36
	
   

  	
  Section 4.7

  	
  No Conflicting Agreements,
  Compliance with Laws

  	
  36
	
   

  	
  Section 4.8

  	
  Governmental Regulations

  	
  37
	
   

  	
  Section 4.9

  	
  Federal Reserve
  Regulations; Use of Loan Proceeds

  	
  37
	
   

  	
  Section
  4.10

  	
  Plans

  	
  37
	
   

  	
  Section
  4.11

  	
  Financial Statements

  	
  38
	
   

  	
  Section
  4.12

  	
  Property

  	
  38
	
   

  	
  Section
  4.13

  	
  Environmental Matters

  
  

   

  	
  
  38

	
  ARTICLE 5. CONDITIONS TO EFFECTIVENESS

  
  

   

  	
  
  39

	
   

  	
  Section 5.1

  	
  Evidence of Action

  	
  39
	
   

  	
  Section 5.2

  	
  This Agreement

  	
  39
	
   

  	
  Section 5.3

  	
  Notes

  	
  39
	
   

  	
  Section 5.4

  	
  Approvals

  	
  39
	
   

  	
  Section 5.5

  	
  Certain Agreements

  	
  39
	
   

  	
  Section 5.6

  	
  Opinion of Counsel to the
  Borrower

  	
  40
	
   

  	
  Section 5.7

  	
  Terminating Indebtedness

  	
  40

 

TABLE OF CONTENTS

(continued)

Page

	
   	
  Section
  5.8

  	
  Compliance; Officer's
  Certificate

  	
  40
	
   
	
  Section 5.9

  	
  Fees and Expenses

  
  

   

  	
  
  40

	
   
	
  ARTICLE 6. CONDITIONS OF LENDING ‐ ALL LOANS

  
  

   

  	
  
  40

	
   	
  Section
  6.1

  	
  Compliance

  	
  40
	
   	
  Section
  6.2

  	
  Credit Request; Competitive
  Bid Request

  	
  41
	
   	
  Section
  6.4

  	
  Other Documents 
   

  	
  41
	
   
	
  Section
  6.3

  	
  Law

  
  

   

  	
  
  41

	
   
	
  ARTICLE 7.
  AFFIRMATIVE COVENANTS

  
  

   

  	
  
  41

	
   	
  Section
  7.1

  	
  Financial Statements

  	
  41
	
   	
  Section
  7.2

  	
  Certificates; Other
  Information

  	
  42
	
   	
  Section
  7.3

  	
  Legal Existence

  	
  43
	
   	
  Section 7.4

  	
  Taxes

  	
  43
	
   	
  Section
  7.5

  	
  Insurance

  	
  43
	
   	
  Section 7.6

  	
  Payment of Indebtedness and
  Performance of Obligations

  	
  43
	
   	
  Section
  7.7

  	
  Condition of Property

  	
  43
	
   	
  Section
  7.8

  	
  Observance of Legal
  Requirements

  	
  44
	
   	
  Section
  7.9

  	
  Inspection of Property;
  Books and Records; Discussions

  	
  44
	
   	
  Section
  7.10

  	
  Licenses, Intellectual
  Property

  	
  44
	
   	
  Section
  7.11

  	
  Financial Covenants

  	
  44
	
   
	
  Section
  7.12

  	
  Use of Proceeds

  
  

   

  	
  
  44

	
   
	
  ARTICLE 8.
  NEGATIVE COVENANTS

  

   

  	
  
  45

	
   	
  Section 8.1

  	
  Liens

  	
  45
	
   	
  Section 8.2

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

  	
  47
	
   	
  Section 8.3

  	
  Loans, Advances, etc.

  	
  48
	
   
	
  Section 8.4

  	
  Amendments, etc. of Certain
  Agreements

  
  

   

  	
  
  49

	
   
	
  ARTICLE 9.
  EVENTS OF DEFAULT

  

   

  	
  
  49

	
   
	
  ARTICLE 10.
  THE ADMINISTRATIVE AGENT

  
  

   

  	
  
  51

	
   	
  Section 10.1

  	
  Appointment

  	
  51
	
   	
  Section 10.2

  	
  Delegation of Duties

  	
  52
	
   	
  Section 10.3

  	
  Exculpatory Provisions

  	
  52
	
   	
  Section 10.4

  	
  Reliance by Administrative
  Agent

  	
  52
	
   	
  Section 10.5

  	
  Notice of Default

  	
  53
	
   	
  Section 10.6

  	
  Non Reliance on
  Administrative Agent and Other Lenders

  	
  53
	
   	
  Section 10.7

  	
  Administrative Agent in Its
  Individual Capacity

  	
  53
	
   
	
  Section 10.8

  	
  Successor Administrative
  Agent

  
  

   

  	
  
  53

	
   
	
  ARTICLE 11.
  OTHER PROVISIONS

  
  

   

  	
  
  54

	
   	
  Section 11.1

  	
  Amendments and Waivers

  	
  54
	
   	
  Section 11.2

  	
  Notices

  	
  55
	
   	
  Section 11.3

  	
  Survival

  	
  55
	
   	
  Section 11.4

  	
  Expenses; Indemnity; Damage
  Waiver

  	
  56
	
   	
  Section 11.5

  	
  Lending Offices

  	
  57
	
   	
  Section 11.6

  	
  Assignments and
  Participations

  	
  57
	
   	
  Section
  11.7

  	
  Counterparts; Integration;
  Effectiveness

  	
  59

(ii)

 

TABLE OF CONTENTS

(continued)

Page

	
   	
  Section
  11.8

  	
  Severability

  	
  59
	
   	
  Section
  11.9

  	
  Right of Set off

  	
  59
	
   	
  Section
  11.10

  	
  Governing Law;
  Jurisdiction; Consent to Service of Process

  	
  60
	
   	
  Section
  11.11

  	
  WAIVER OF JURY
  TRIAL

  	
  60
	
   	
  Section
  11.12

  	
  Headings

  	
  61

 

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 8.1

  	
  
  List of Existing Liens

  

 

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

  	
  Form of Compliance
  Certificate

  

 (iii)

    364 DAY CREDIT AGREEMENT, dated as of April 30,
2004, by and among CLECO POWER LLC, 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.

            "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.

            "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 $125,000,000.

            "Agreement": this 364 Day 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

  	
  
  0.150%

  
	
  
  Pricing Level II

  	
  
  0.200%

  
	
  Pricing Level III

  	
  
  0.225%

  
	
  Pricing Level IV

  	
  
  0.250%

  
	
  Pricing Level V

  	
  
  0.300%

  
	
  Pricing Level VI

  	
  
  0.500%

  
	
  Pricing Level VII

  	
  
  0.625%

  

             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.

            "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

  	
  
  0.725%

  
	
  Pricing Level II

  	
  
  0.800%

  
	
  Pricing Level III

  	
  
  1.025%

  
	
  Pricing Level IV

  	
  
  1.250%

  
	
  Pricing Level V

  	
  
  1.450%

  
	
  Pricing Level VI

  	
  
  1.500%

  
	
  Pricing Level VII

  	
  
  2.375%

  

             (b)        in
the event that the Borrower exercises its option under Section 2.15(b) to
extend the Maturity Date, the Applicable Margins set forth in clause (a) above
shall be increased by  (i) for so long as the Senior
Debt Rating is BBB‐ or higher by S&P and Baa3 or higher by
Moody's and no Event of Default has occurred and is continuing, 1.00%, and   (ii) for so long as the Senior
Debt Rating is

-2-

lower
than BBB‐ by S&P or Baa3 by Moody's or an Event of Default has
occurred and is continuing, 1.50%.

            (c)        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 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 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.

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

            "Assignment and Acceptance 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.

            "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 Power LLC, a Louisiana
limited liability company.

           "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.

-3-

            "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 Parent then
outstanding or (ii) the occupation of a majority
of the seats (other than vacant seats) on the board of directors of the Parent
by Persons who were neither nominated by the board of directors of the Parent
nor appointed by directors so nominated.

             "Change
in Law": (i) the adoption of any law, rule or
regulation after the Agreement Date, (ii) any change in any law, rule or
regulation or in the interpretation or application thereof by any Governmental
Authority after the Agreement Date or (iii) compliance by any Credit Party (or,
for purposes of Section 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.

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

            "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 Commitment Termination Date.  

-4-

            "Commitment Termination Date": the day which
is 364 days after the Agreement Date (or, if such date is not a Business Day,
the Business Day immediately preceding such day), as the same may be extended
from time to time in accordance with Section 2.15(a), or such earlier date on
which the Aggregate Commitments shall terminate in accordance with Section 2.5
or Article 9.

            "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 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
Commitment Termination 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 Commitment Termination 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 L.

            "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 agreement by any other
Person to purchase electricity, gas or fuel from a counterparty shall be deemed
to be the maximum reasonably anticipated liability of such other Person, as determined
in good faith by such Person, net of any obligation or liability of such
counterparty to purchase electricity, gas or fuel from such other Person, provided
further that the obligations of such other Person to so purchase
electricity, gas or fuel from such counterparty shall be terminable at the
election of  

-5-

such other Person in the
event of a default by such counterparty in its obligations to so purchase
electricity, gas or fuel for such other Person.

            "Continuing Lenders": as defined in Section 2.15(a)(ii).

            "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,
in its capacity as documentation agent for the Lenders hereunder.

            "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 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  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  

-6-

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 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 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  

-7-

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 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.

            "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.

            "Extension Request": as defined in Section
2.15(a)(i).

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

-8-

            "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.

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

            "FERC Order": that certain letter order
issued to the Borrower, dated July 26, 2002, in Docket No. ES02-43-000, issued
by FERC, or any renewal or replacement order thereof, together with any
supplemental order thereto, in each case authorizing the Borrower to issue
notes or drafts maturing not more than one year after the date of issue or
renewal thereof or assumption of liability thereon (in each case as described
in Section 204(e) of the Federal Power Act, as amended and in effect from
time to time) in an aggregate principal amount not less than the sum of the
Commitments hereunder plus the aggregate principal amount of any such notes or
drafts of the Borrower (other than the Notes) outstanding from time to time.

            "Financial Statements": as defined in
Section 4.11.

             "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 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
 

-9-

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, and (viii) Contingent
Obligations of such Person in respect of Indebtedness of others.

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

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

        "Integrated Resources Plan": the portions of
the Borrower's strategic integrated resources plan which involves replacing, repowering or adding electric power generation,
transmission or distribution facilities to meet the measured and forecasted
demand and consumption requirements of its customers, including the
acquisition, construction or improvement of generation facilities and fuel
conversion repowering projects for existing
generation facilities to 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.

-10-

            "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(c).

            "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.

-11-

            "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
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 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 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 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 Subsidiaries, determined on a consolidated basis in accordance
with GAAP.

            "Maturity Date": the Commitment Termination
Date or, if the Borrower has duly extended the Maturity Date in accordance with
Section 2.15(b), the Repayment Extension Date.

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

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

            "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.

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

            "Non‐Extending Lender": as defined in
Section 2.15(a)(ii).

            "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.

-12-

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

            "Parent": Cleco Corporation, a Louisiana
corporation.

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

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

            "Permitted Liens": Liens permitted to exist
under Section 8.1.

           "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.  

-13-

            "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
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.

            "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.

             "Repayment
Extension Date": as defined in Section 2.15(b).

            "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.

-14-

            "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, NA, 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).

            "Term‐Out Fee": as defined in Section
3.1(b).

            "Term Out Notice":  as defined in Section 2.15(b)

            "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.

            "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.

-15-

            "United States": the United States of
America.

            "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 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  

-16-

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 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 

-17-

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
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 Exposures of all
Lenders to exceed the 

-18-

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 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  

-19-

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 Commitment
Termination 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 (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  

-20-

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.  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 Exposures 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)            
In General.  Any prepayments under this Section shall be applied pro
rata according to the Commitment Percentage of each Lender./h3> 

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
 

-21-

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 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.    

-22-

           
(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 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
$25,000,000 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 Commitment Termination 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 Commitment
Termination 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 

-23-

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 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  

-24-

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

           
(g)            
Disbursement Procedures. The Issuing Bank shall, promptly following its
receipt thereof, examine all documents purporting to represent a demand for
payment under a Letter of Credit. The Issuing Bank shall promptly notify 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 Commitment Termination 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 Commitment Termination
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   

-25-

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 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   

-26-

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
Term‐Out 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 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 

-27-

(other than a Tax on the Overall Net
Income of any Lender (for which payment need not be free and clear, but no
deduction or withholding shall be made unless then required by applicable law))
imposed, levied, collected, withheld or assessed by or within the United States
or any political subdivision in or of the United States or any other
jurisdiction from or to which a payment is made by or on behalf of the Borrower
or by any federation or organization of which the United States or any such
jurisdiction is a member at the time of payment.

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

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

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

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

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

           
(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  

-28-

as may be necessary in the determination
of the Borrower or the Administrative Agent (each in the reasonable exercise of
its discretion), including upon the occurrence of any event requiring a change
in the most recent counterpart of any form set forth below previously delivered
by such Foreign Lender to the Borrower, such certificates, documents or other
evidence, properly completed and duly executed by such Foreign Lender (i) two
accurate and complete original signed copies of Internal Revenue Service Form
W8‐BEN or Form W8‐ECI, or successor applicable form and (ii) an Internal Revenue
Service Form W‐8 or W‐9 (or any other certificate or statement of exemption
required by Treasury Regulations Section 1.1441 4(a) or Section 1.1441 6(c) or
any successor thereto) to establish that such Foreign Lender is not subject to
deduction or withholding of United States federal income tax under Section 1441
or 1442 of the Code or otherwise (or under any comparable provisions of any
successor statute) with respect to any payments to such Foreign Lender of
principal, interest, fees or other amounts payable under any of the Loan
Documents.  The Borrower shall not be required to pay any additional amount
to any such Foreign Lender under Section 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  

-29-

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.   

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  

 -30-

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, 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
2.16, 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  

 Extension
of Commitment Period and Maturity Date

         

   (a)             
Extension of Commitment Period

         

      (i)              
Provided that no Default or Event of Default shall exist, the Borrower may
request that the Commitment Period be extended for up to 364 days by giving
written notice thereof (each an "Extension Request") to the
Administrative Agent at any time during the period which is not more than 45
days nor less than 30 days prior to the then current Commitment Termination Date
and, upon receipt of each such notice, the Administrative Agent shall promptly
notify each Lender thereof.  No Lender shall be required to consent to any
Extension Request. Each Lender shall endeavor to respond to each Extension
Request by no later than 15 days prior to the then current Commitment
Termination Date, provided that each Lender which shall have failed so to
respond by such time shall be deemed not to have consented thereto. The
Administrative Agent shall promptly notify the Borrower as to the name of each
Lender that, in accordance with this clause (i), consented to such extension. In
the event that Lenders having Commitments greater than 50% of the Aggregate
Commitments shall not have consented in accordance with this clause (i) to such
extension, the then current Commitment Termination Date shall not be extended
and shall remain in full force and effect.  In the event that all Lenders
shall have   

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consented in accordance with this clause (i),
then on the date upon which the last such consent shall have been received by
the Administrative Agent, the then existing Commitment Termination Date shall be
extended to the day which is 364 days after the then existing Commitment
Termination Date (or, if such date is not a Business Day, the Business Day
immediately preceding such day).

               
(ii)             
Notwithstanding any provision in Section 2.15(a)(i) to the contrary, in the
event Lenders having Commitments greater than 50% of the Aggregate Commitments
consent to an extension of the Commitment Termination Date pursuant to Section
2.15(a)(i) (the "Continuing Lenders"), the Borrower shall have the right, 
provided that no Default or Event of Default shall have occurred and be
continuing, to replace or remove each Lender that did not so consent (each a "Non
Extending Lender") by giving the Administrative Agent notice no later than
five days prior to the then current Commitment Termination Date of its intent to
extend such Commitment Termination Date.  On or prior to the then current
Commitment Termination Date, the Borrower shall replace each Non Extending
Lender with either an existing Lender willing to assume such Non Extending
Lender's Commitment or with another Eligible Assignee willing to assume such Non
Extending Lender's Commitment.  Each Non Extending Lender agrees, subject
to and in accordance with Section 11.6, to assign its rights and obligations
under the Loan Documents to an Eligible Assignee selected by the Borrower upon
payment by or on behalf of such Eligible Assignee to such Non Extending Lender
of such Non Extending Lender's Commitment Percentage or other applicable
percentage of all outstanding Loans and accrued interest, fees and other sums
payable under the Loan Documents.  Effective upon such assignment such
Non‐Extending Lender shall cease to be a "Lender" for purposes of this Agreement
(except with respect to its rights hereunder to be reimbursed for costs and
expenses and to indemnification with respect to, matters attributable to events,
acts or conditions occurring prior to such assignment). In the event that the
Borrower shall have elected to replace or remove each Non Extending Lender
pursuant to this clause (ii), then on the date, if any, upon which all of the
Borrower's obligations under this clause (ii) shall have been satisfied, if any,
the then existing Commitment Termination Date shall be extended to the day which
is 364 days after the then existing Commitment Termination Date (or, if such
date is not a Business Day, the Business Day immediately preceding such day), 
provided,
however, that if the Borrower shall not have satisfied such obligations
on or prior to the then existing Commitment Termination Date, such Commitment
Termination Date shall not be extended.

           
(b)           
Extension of Maturity Date. Unless a Default shall have occurred and is
continuing, effective upon the delivery by the Borrower to the Administrative
Agent by no later than the fifth day prior to the then effective Commitment
Termination Date of an express written notice (the "Term‐Out Notice")
that the Borrower intends to extend the Maturity Date to the date certain (the "Repayment
Extension Date") set forth in such Term‐Out Notice that is not later than
one year after the Commitment Termination Date with respect to Revolving Credit
Loans outstanding on the Commitment Termination, the Maturity Date with respect
to such Revolving Credit Loans shall be extended to such Repayment Extension
Date, provided that on or before the Commitment Termination Date, the
Borrower has paid the Term‐Out Fee as provided in Section 3.1(b).  The
delivery by the Borrower to the Administrative Agent of a Term‐Out Notice shall
constitute a representation and warranty by the Borrower that no Default then
exists.

   
Section 2.16  
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  

-32-

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,
Term‐Out 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 2.16 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.  

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 elapsed.

           
(b)           
Term‐Out Fee. In the event that the Borrower delivers a Term‐Out Notice
in accordance with Section 2.15(b), as a condition to the extension of the
Maturity Date as provided in such Section, the Borrower agrees to pay to the
Administrative Agent, for the account of the Lenders in accordance with each
Lender's Commitment Percentage, a non‐refundable fee (the "Term‐Out Fee")
equal to 0.375% of the aggregate outstanding principal balance of Revolving
Credit Loans on the Commitment Termination Date.  The Term‐Out Fee shall be
earned and payable on the Commitment Termination Date.   

           
(c)            
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
 

-33-

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).   

           
(d)           
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
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   

-34-

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 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 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 8.1(o).  The interest of the Borrower in each
non‐corporate Subsidiary is owned free and clear of any Liens, other than Liens
permitted pursuant to Section 8.1(o).  

   
Section 4.2  

Existence and Power

           
Each of the Borrower and the 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.  

-35-

   
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
Subsidiaries) pending or, to the knowledge of the Borrower, threatened against
the Borrower or any of the 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
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 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
businss 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, except such as have been
obtained or made and are in full force and effect and not subject to any appeals
period (including the FERC Order).  As of the Closing Date, the FERC Order
then in effect expires August 11, 2004.

   
Section 4.7  

No Conflicting Agreements, Compliance with Laws

            (a)            
Neither the Borrower nor any of the 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  

-36-

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 Subsidiaries pursuant to the terms of, any such
mortgage, indenture, contract or agreement.   

           
(b)            Each of
the Borrower and the 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 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 Subsidiaries, and no tax
Liens have been filed with respect thereto.

Section 4.8   
Governmental Regulations

Neither the Borrower
nor any of the Subsidiaries is (i) an "investment company" or a company
"controlled" by an "investment company" as defined in, or is otherwise subject
to regulation under, the Investment Company Act of 1940, as amended, or (ii) a
"holding company", or an "affiliate" or "subsidiary company" of a "holding
company", as those terms are defined in the Public Utility Holding Company Act
of 1935, as amended, in each case which is subject to registration thereunder. 
 

Section 4.9   
Federal Reserve Regulations; Use of Loan Proceeds

Neither the Borrower
nor any of the 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,   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.   

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  Section 4.11  
 
Financial Statements

        

   The Borrower has heretofore
delivered to the Credit Parties copies of its Form 10‐K for the fiscal year
ended December 31, 2003, containing the audited consolidated balance sheet of
the Borrower and the Subsidiaries and the related consolidated statements of
income, stockholder's 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 "Financial Statements").  The Financial
Statements have been prepared in accordance with GAAP and fairly present the
consolidated financial condition and results of the operations of the Borrower
as of the dates and for the periods indicated therein.  Since December 31,
2003, each of the Borrower and the Subsidiaries has conducted its business only
in the ordinary course and there has been no Material Adverse Change.

   
Section 4.12 

Property

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

   
Section 4.13  
Environmental Matters

           
(a)             To
the best knowledge of the Borrower, the Borrower and each of the 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 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
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 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 Subsidiaries) or the
release or threatened release of any Hazardous Substance into the environment.
  

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(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 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, attaching thereto true and complete copies of all
such required governmental and regulatory authorizations and approvals,
including approval of the FERC.

   
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 CLECO 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  

-39-

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 CLECO 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.

   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 or the chief financial officer of
the Borrower, 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.

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 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.

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 balance sheet and related consolidated statements of income,
stockholder's equity and cash flows as of the end of and for such fiscal year,
setting forth in each case in comparative form the figures for the previous
fiscal year, all reported on by the Accountants (without a "going concern" or
like qualification or exception and without any qualification or exception as to
the scope of such audit) to the effect that such consolidated financial
statements present fairly in all material respects the financial conditions and
results of operations of the Borrower and the Subsidiaries on a consolidated
basis in accordance with GAAP consistently applied during such fiscal year;

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

-41-

basis in accordance with GAAP consistently
applied, subject to normal year end audit adjustments and the absence of
footnotes;

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

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

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

           
(d)            Prompt
written notice of any order, notice, claim or proceeding received by, or brought
against, the Borrower or any of the Subsidiaries, or with respect to any 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.

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Section 7.3           
Legal Existence

           
Except as permitted under Section 8.2, the Borrower shall maintain its legal
existence in good standing in the jurisdiction of its incorporation or formation
and in each other jurisdiction in which the failure so to do could reasonably be
expected to have a Material Adverse Effect, and cause each of the Subsidiaries
to maintain its legal existence in good standing in each jurisdiction in which
the failure so to do could reasonably be expected to have a Material Adverse
Effect.

   
 Section
7.4           
Taxes

           
The Borrower shall pay and discharge when due, and cause each of Subsidiaries so
to do, all Taxes, assessments and governmental charges, license fees and levies
upon or with respect to the Borrower or such Subsidiary, as the case may be, and
all Taxes upon the income, profits and Property of the Borrower and the
Subsidiaries, which if unpaid, could individually or collectively reasonably be
expected to have a Material Adverse Effect or become a Lien on the Property of
the Borrower or such Subsidiary, as the case may be (other than a Lien described
in Section 8.1(a)), unless and to the extent only that such Taxes, assessments,
charges, license fees and levies shall be contested in good faith and by
appropriate proceedings diligently conducted by the Borrower or such Subsidiary,
as the case may be, provided that 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 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
Subsidiaries to pay and discharge when due, all lawful Indebtedness, obligations
and claims for labor, materials and supplies or otherwise which, if unpaid,
could, individually or collectively reasonably be expected to (i) have a
Material Adverse Effect or (ii) become a Lien upon Property of the Borrower or
any of the Subsidiaries (other than a 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 Subsidiaries so to do, all Property necessary to the operation of the
Borrower's or such Subsidiary's, as the case may be, material businesses.

-43-

   Section
7.8           
Observance of Legal Requirements

           
The Borrower shall observe and comply in all respects, and cause each of the
Subsidiaries so to do, with all laws, ordinances, orders, judgments, rules,
regulations, certifications, franchises, permits, licenses, directions and
requirements of all Governmental Authorities, which now or at any time hereafter
may be applicable to it, including ERISA and all Environmental Laws, a violation
of which could individually or collectively reasonably be expected to have a
Material Adverse Effect, except such thereof as shall be contested in good faith
and by appropriate proceedings diligently conducted by it, provided that
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 7.9           
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
Subsidiaries with the officers thereof and the Accountants; provided
that, so long as no Default or Event of Default exists, none of the
Administrative Agent, its agents, its representatives or the Lenders shall be
entitled to examine or make copies or abstracts of, or otherwise obtain
information with respect to, the Borrower's records relating to pending or
threatened litigation if any such disclosure by the Borrower could reasonably be
expected (i) to give rise to a waiver of any attorney/client privilege of the
Borrower or any of the Subsidiaries relating to such information or (ii) to be
otherwise materially disadvantageous to the Borrower or any of the Subsidiaries
in the defense of such litigation.

   
Section 7.10       
Licenses, Intellectual Property

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

   
Section 7.11       
Financial Covenants

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

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

    

Section 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  

 -44-

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 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           
Liens

           
The Borrower shall not create, incur, assume or suffer to exist any Lien upon
any of its Property, whether now owned or hereafter acquired, or permit any of
the Subsidiaries so to do, 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 Subsidiary, as
the case may be, or materially impair its use for the operation of the business
of the Borrower or such 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, provided that
enforcement of such Liens is stayed pending such contest;

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

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

           
(e)            
Liens on Property of the Borrower and the Subsidiaries existing on the Agreement
Date as set forth on Schedule 8.1 as renewed from time to time, but not any
increases in the amounts secured thereby or the Property subjected to such Lien
thereon (except under the CLECO Mortgage);

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

-45-

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

           
(h)             "permitted
liens" as defined under Section 1.04 of the CLECO Mortgage, as in effect on
the date hereof, other than "funded liens" described in clause (ix) of
said Section 1.04, other Liens not otherwise prohibited by Section 5.05 of the
CLECO Mortgage as in effect on the date hereof, and, in the event the CLECO
Mortgage is terminated, Liens of the same type and nature as the foregoing Liens
referred to in this clause (h), provided that the amounts secured by such
Liens shall not exceed the amounts that may be secured by such foregoing Liens
as the last day on which the CLECO Mortgage was in effect;

           
(i)             
Liens created to secure Indebtedness representing, or incurred to finance, the
cost of Property acquired, constructed or improved by the Borrower in the
ordinary course of business after the date hereof and not subject to (i) the
Lien referred to in clause (g) above or (ii) Liens securing Indebtedness
existing on such Property at the time of acquisition thereof, provided, in all
cases, such Liens are limited to such Property acquired, constructed or
improved;

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

           
(k)            
Liens to secure Indebtedness of any Subsidiary of the Borrower to the Borrower
or to any of its other Subsidiaries;

           
(l)             
Liens on Property (including any natural gas, oil or other mineral Property) to
secure all or a part of the cost of exploration, drilling or development thereof
or to secure Indebtedness incurred to provide funds for any such purpose;

           
(m)           Liens and
security interests created, incurred or assumed in connection with the purchase,
lease, financing or refinancing of pollution control facilities (and which Liens
and security interest are limited to such pollution control facilities);

           
(n)            
Liens (i) created to secure sales or factoring of accounts receivable and other
receivables, and (ii) to the extent not covered by clause (i) of this
subsection, Liens on accounts receivables and other receivables, to secure
Indebtedness of the Borrower or any of the Subsidiaries in an aggregate amount
not to exceed $40,000,000;   

           
(o)            Liens on
any equity interest owned or otherwise held by or on behalf of the Borrower or
any Subsidiary created in connection with any project financing;   

           
(p)            Liens to
secure obligations of the Borrower in respect of agreements to purchase or sell
electricity, gas or fuel from counterparties, provided that the aggregate
amount secured under this clause (p) shall not exceed $15,000,000; and

           
(q)            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 (p); 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   

-46-

a part of the property or indebtedness
that secured the lien or mortgage so extended, renewed or replaced (and any
improvements on such property).

   
Section 8.2          
Merger, Consolidation, Purchase or Sale of Assets, Etc.

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

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

           
(b)            sales or
factoring of accounts receivables and other receivables;   

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

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

           
(e)             any
of the Subsidiaries may merge or consolidate with or into, or acquire control
of, or acquire all or any portion of the assets of any Person, provided
that immediately after giving effect thereto, the total consideration to be paid
by the Subsidiaries to or for the account of any Person (other than the Borrower
and the Subsidiaries) in connection therewith, but not counting purchases or
other acquisitions of Property made as part of the Borrower's Integrated
Resources Plan, when added to the total consideration paid by the Borrower and
the Subsidiaries to or for the account of any Person (other than the Borrower
and the Subsidiaries) in connection with all other mergers, consolidations and
acquisitions permitted under Sections 8.2(e) and 8.2(f) during the period from
the Agreement Date through and including the date thereof, and all loans,
advances and other arrangements outstanding at such time and permitted under
Section 8.3, shall not exceed 15% of Material Total Assets as of the most
recently completed fiscal quarter; and

           
(f)             
mergers, consolidations or acquisitions of or by the Borrower with, into or of
another Person (including acquisitions by the Borrower of all or any portion of
the assets of any Person), in each case as to which the following conditions
have been satisfied:

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

               
(ii)             
immediately before and after giving effect thereto, all of the representations
and warranties contained in the Loan Documents shall be true and correct except
as the context thereof otherwise requires and except for those representations
and warranties which by their terms or by necessary implication are expressly
limited to a state of facts existing at a time prior to such   

-47-

merger, consolidation or acquisition, as
the case may  be, or such other matters relating thereto as are identified
in a writing to the Administrative Agent and the Lenders and are satisfactory to
the Administrative Agent and the Lenders;

               
(iii)            the
Borrower shall be the surviving entity thereof or, in the event the Borrower
shall not be the surviving entity thereof, (1) such surviving entity shall be
organized in a State of the United States with substantially all of its assets
and businesses located and conducted in the United States and (2) the
Administrative Agent shall have received (A) a certificate, in form and
substance satisfactory to the Administrative Agent, (x) attaching a true and
complete copy of each agreement, instrument or other document effecting such
merger, consolidation or acquisition, together with an agreement signed on
behalf of such surviving entity pursuant to which such surviving entity shall
have expressly assumed all of the indebtedness, liabilities and other
obligations of the Borrower under the Loan Documents, each of which shall be in
form and substance satisfactory to the Administrative Agent, and (y) certifying
that such merger, consolidation or acquisition has been consummated in
accordance with such agreements, instruments or other documents referred to in
the immediately preceding clause (x), and (B) such documents, legal opinions and
certificates as the Administrative Agent shall reasonably request relating to
the organization, existence and, if applicable, good standing of such surviving
entity, the authorization of such merger, consolidation or acquisition and any
other legal matters relating to such surviving entity, the assumption agreement
referred to in the immediately preceding clause (x) or such merger,
consolidation or acquisition,

               
(iv)           
immediately after giving effect thereto, the total consideration to be paid by
the Borrower to or for the account of any Person (other than the Subsidiaries)
in connection therewith, but not counting purchases or other acquisitions of
Property made as part of the Borrower's Integrated Resources Plan, when added to
the total consideration paid by the Borrower and the Subsidiaries to or for the
account of any Person (other than the Borrower and the Subsidiaries) in
connection with all mergers, consolidations and acquisitions permitted under
Sections 8.2(e) and 8.2(f) during the period from the Agreement Date through and
including the date thereof, and all loans, advances, investments and other
arrangements outstanding at such time and permitted under Section 8.3, shall not
exceed 15% of Material Total Assets as of the most recently completed fiscal
quarter, and

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

   
Section 8.3          
Loans, Advances, etc.

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

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  Section 8.4          
Amendments, etc. of Certain Agreements

           
The Borrower shall not enter into or agree to any amendment, modification or
waiver, or permit any of the Subsidiaries so to do, of any term or condition of
the CLECO Mortgage or 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 Employee Stock Ownership Plan's
qualified status under Section 401(a) of the Code and any adoptive instruments
or other agreements providing for the 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.

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

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

           
(g)             any
event or condition occurs that results in any Material Obligations of the
Borrower or any 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 secured Indebtedness that becomes due solely as a result of the
voluntary sale or transfer of the property or assets securing such Indebtedness
or any intercompany Indebtedness; or

-49-

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

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

          

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

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

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

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

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  

-50-

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, Term‐Out
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.

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.

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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 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.

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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.

   
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  

-53-

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.

           
(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   

-54-

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.

   
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  

 -55-

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, 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

-56-

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 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
  

-57-

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
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.

-58-

     
       (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 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  

-59-

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 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 

-60-

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.

-61-

 

CLECO POWER LLC

CREDIT AGREEMENT

 

 

IN WITNESS WHEREOF, the parties hereto
have caused this 364 Day Credit Agreement to be duly executed and delivered by
their proper and duly authorized officers as of the day and year first above
written.

 

CLECO POWER LLC  

By: 
/s/ Dilek Samil                                         

Name:  Dilek Samil

Title:  Executive Vice President & CFO

 
CLECO POWER LLC

CREDIT AGREEMENT

 

  

THE BANK OF NEW YORK, Individually

and as Administrative Agent

By: /s/ Cynthia Howells                             

Name:  Cynthia Howells

Title:  Vice President  

  

 

CLECO POWER LLC

CREDIT AGREEMENT

 

  

BANK ONE, NA, Individually and as Syndication Agent

By: 
/s/ Dawn M. Lawer                                  

Name:  Dawn M. Lawer

Title:  Managing Director

  

  

CLECO POWER LLC

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 POWER LLC

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 POWER LLC

CREDIT AGREEMENT

  

COBANK, ACB Individually and as a Managing
Agent

 

 

By: /s/ Paul Podany____________________
 

Name:  Paul Podany

Title:  Assistant Vice President

  

 CLECO POWER LLC

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 POWER LLC

CREDIT AGREEMENT

  

KEYBANK NATIONAL ASSOCIATION Individually and as a Managing Agent

 

 

By: /s/ Sherrie I. Manson________________
 

Name:  Sherrie I. Manson

Title:  Vice President

  

 CLECO POWER LLC

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 POWER LLC

CREDIT AGREEMENT

  

GOLDMAN SACHS CREDIT PARTNERS L.P.

By: 
/s/ Robert Wagner                                    

Name:  Robert Wagner

Title:  Authorized Signatory

  

 CLECO POWER LLC

CREDIT AGREEMENT

  

REGIONS BANK

By: 
/s/ Tammy Foshee                                     

Name:  Tammy Foshee

Title:  Assistant Vice President, Corporate Banking Regions Bank

  

 CLECO POWER LLC

CREDIT AGREEMENT

  

WHITNEY NATIONAL BANK

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

Name:  Edgar W. Santa Cruz, III

Title:  Vice President

  

 CLECO POWER LLC

CREDIT AGREEMENT

  

HIBERNIA NATIONAL BANK

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

Name:  Kermit W. Pharris, Jr.

Title:  Vice President

  

 CLECO POWER LLC

CREDIT AGREEMENT

  

                                                                                       
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 POWER LLC

CREDIT AGREEMENT

                                                                                                   
UNION BANK OF CALIFORNIA, N.A.

  

By: /s/ Susan K. Johnson                                 

Name:  Susan K. Johnson

Title:  Vice President

  

 CLECO POWER LLC

CREDIT AGREEMENT

                                                                                                            
BANK HAPOALIM B.M.

  
    

By: /s/ Marc Bosc                              

Name:  Marc Bosc

Title:  Vice President

    

  

  
    

By: /s/ Lenroy Hackett                     

Name:  Lenroy Hackett

Title:  SVPEXHIBIT 4.1

 

SECOND AMENDMENT TO THE

SECOND AMENDED AND RESTATED POOLING AND SERVICING AGREEMENT

 

This SECOND AMENDMENT TO
THE SECOND AMENDED AND RESTATED POOLING AND SERVICING AGREEMENT, dated as
of  May 19, 2004 (this “Amendment”)
is made among World Financial Network National Bank (“WFN”), as
Servicer; WFN Credit Company, LLC (“WFN
Credit”), as Transferor; and BNY Midwest Trust Company (“BNY Midwest”), as Trustee of World
Financial Network Credit Card Master Trust (the “Issuer”), to the Second Amended and Restated Pooling and
Servicing Agreement, dated as of August 1, 2001, among WFN, as Servicer,
WFN Credit, as Transferor and BNY Midwest, as Trustee (as amended by the
Omnibus Amendment, dated as of March 31, 2003, among the Bank, WFN Credit, the
Issuer and BNY Midwest and as further amended from time to time, the “Pooling Agreement”).  Capitalized terms used and not otherwise
defined in this Amendment are used as defined in the Pooling Agreement.

 

WHEREAS, the parties
hereto desire to amend the Pooling Agreement as set forth below;

 

NOW THEREFORE, in
consideration of the premises and for other good and valuable consideration
(the receipt and sufficiency of which are hereby acknowledged), the parties
hereto agree as follows:

 

1.  Amendment to Pooling
Agreement.  Section 2.9 of
the Pooling Agreement is hereby amended by deleting Section 2.9(a)(vii) and
substituting the following therefor:

 

“(vii) in the case
of any removal pursuant to Section 2.9(b), Transferor shall concurrently with such
removal make a deposit into the Collection Account in immediately available
funds in an amount equal to the aggregate outstanding balance of Principal
Receivables in the Accounts being removed, minus the amount of any deposit into
the Excess Funding Account made pursuant to Sections
2.9(b) and 2.5(b) in
connection with such removal; and”.

 

2.  Binding Effect; Ratification. (a)  This Amendment shall become effective, as of
the date first set forth above, when counterparts hereof shall have been
executed and delivered by the parties hereto, and thereafter shall be binding
on the parties hereto and their respective successors and assigns.

 

(b)  On and after the execution and delivery
hereof, this Amendment shall be a part of the Pooling Agreement and each
reference in the Pooling Agreement to “this Agreement” or “hereof,” “hereunder”
or words of like import, and each reference in any other Transaction Document
to the Pooling Agreement shall mean and be a reference to the Pooling Agreement
as amended hereby.

 

(c)  Except as expressly amended hereby, the
Pooling Agreement shall remain in full force and effect and is hereby ratified
and confirmed by the parties hereto.

 

3.  Miscellaneous.
(a)  THIS AMENDMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK,

 

 

WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS. EACH OF THE PARTIES TO THIS AMENDMENT HEREBY AGREES
TO THE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK AND ANY APPELLATE COURT HAVING JURISDICTION TO REVIEW THE
JUDGMENTS THEREOF. EACH OF THE PARTIES HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS
AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE
AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE
RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.

 

(b)           Headings
used herein are for convenience of reference only and shall not affect the
meaning of this Amendment.

 

(c)           This
Amendment may be executed in any number of counterparts, and by the parties
hereto on separate counterparts, each of which shall be an original and all of
which taken together shall constitute one and the same agreement.

 

[Signature Page Follows]

 

2

 

IN WITNESS WHEREOF, the
parties have caused this Amendment to be executed by their respective officers
thereunto duly authorized, as of the date first above written.

 

	
   

  	
  WORLD FINANCIAL NETWORK
  NATIONAL

  
	
   

  	
    BANK, as
  Servicer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert P. Armiak

  	
   

  
	
   

  	
   

  	
  Name:  Robert
  P. Armiak

  
	
   

  	
   

  	
  Title:  Senior
  Vice President and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WFN CREDIT COMPANY,
  LLC, as Transferor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert P. Armiak

  	
   

  
	
   

  	
   

  	
  Name:  Robert
  P. Armiak

  
	
   

  	
   

  	
  Title:  Senior
  Vice President and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BNY MIDWEST TRUST
  COMPANY, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David H. Hill

  	
   

  
	
   

  	
   

  	
  Name:  David H. Hill

  
	
   

  	
   

  	
  Title:  Assistant Vice President

  

 

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