Document:

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                                                                    EXHIBIT 10.6

[LEAR CORPORATION LOGO]

                                                           LEAR CORPORATION

                                                           21557 Telegraph Road
                                                           Southfield, MI 48034
                                                           USA

                                                           PHONE (248) 447-1562
                                                           Fax   (248) 447-1677

                                                           ROGER JACKSON
                                                           Senior Vice President
                                                           Human Resources

July 28, 2003

Daniel A. Ninivaggi
26 Beech Road
New Canaan, CT 06840

Dear Dan:

Lear Corporation (the "COMPANY") considers it essential to its best interest and
the best interests of its stockholders to foster the continuous employment of
key management personnel.

The Board of Directors of the Company (the "BOARD") has determined that
appropriate steps should be taken to reinforce and encourage the continued
attention and dedication of members of the Company's management, including
yourself, to their assigned duties. The Board recognizes that, as is the case
with many publicly-held companies, the possibility of a Change in Control (as
that term is hereafter defined) exists. The Company wishes to assure itself of
both present and future continuity of management in the event of any Change in
Control and that certain of its executives are not practically disabled from
discharging their duties upon a Change in Control. In order to induce you to
remain in the employ of the Company, and in consideration of your agreement to
the termination of any existing employment contract you may have with the
Company or any predecessor, the Company agrees that you shall receive, upon the
terms and conditions set forth herein, the compensation and benefits set forth
in this letter agreement ("AGREEMENT") during the Term hereof.

1.       TERM OF AGREEMENT. This Agreement shall commence as of July 28, 2003
         ("EFFECTIVE DATE") and the term of this Agreement shall at all times be
         three years, that is, the term of this Agreement shall be automatically
         extended each day for an additional day such that this Agreement shall
         continually have an unexpired term of three years, until the date three
         years after written notice is provided by either the Company or the
         Executive that this Agreement is not to be further extended or until
         the date the Executive reaches his or her normal retirement date under
         the Company's retirement plan for salaried employees then in effect,
         whichever shall first occur (the "TERM"). There shall be no renewal of
         the Term after the Date of Termination.

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2.       TERMS OF EMPLOYMENT. During the Term, you agree to be a full-time
         employee of the Company serving in the position of Vice President,
         Secretary and General Counsel of the Company and to devote
         substantially all of your working time and attention to the business
         and affairs of the Company and, to the extent necessary, to discharge
         the responsibilities associated with your position as Vice President,
         Secretary and General Counsel of the Company, to use your best efforts
         to perform faithfully and efficiently such responsibilities. In
         addition, you agree to serve in such other capacities or offices to
         which you may be assigned, appointed or elected from time to time by
         the Board. Nothing herein shall prohibit you from devoting your time to
         civic and community activities, serving as a member of the Board of
         Directors of other corporations who do not compete with the Company, or
         managing personal investments, as long as the foregoing do not
         interfere with the performance of your duties hereunder.

3.       COMPENSATION.

         (i)      As compensation for your services, under this Agreement, you
                  shall be entitled to receive an initial base salary of
                  $425,000 per annum, to be paid in accordance with existing
                  payroll practices for executives of the Company. Increases in
                  your base salary, if any, shall be as approved by the
                  Compensation Committee of the Board. In addition, you shall be
                  eligible to receive an annual incentive compensation bonus
                  ("BONUS") to be approved from time to time by the Compensation
                  Committee of the Board.

         (ii)     In addition to compensation provided for in Subsection (i) of
                  this Section 3, the Company agrees (A) to provide the same or
                  comparable benefits with respect to any compensation or
                  benefit plan in which you participate as of the Effective Date
                  which is material to your total compensation, unless an
                  equitable arrangement (embodied in an ongoing substitute or
                  alternative plan) has been made with respect to such plan; and
                  (B) to maintain your ability to participate therein (or in
                  such substitute or alternative plan) on a basis not materially
                  less favorable, both in terms of the opportunities provided
                  and the level of your participation relative to other
                  participants, than exists on the Effective Date.

         (iii)    The Company shall reimburse you for all reasonable travel,
                  entertainment and other business expenses incurred by you in
                  the performance of your responsibilities under this Agreement
                  promptly upon receipt of written substantiation of such
                  expenses. You shall also be paid all additional amounts
                  necessary to discharge all federal and state tax liabilities
                  incurred by you that are attributable to all deemed
                  compensation arising as a consequence of your personal use of
                  property owned or leased by the Company, excepting only your
                  personal use of any Company aircraft, including federal and
                  state taxes assessed against such additional compensation.

         (iv)     You shall be entitled to perquisites available to other
                  officers of the Company, and shall be entitled to four (4)
                  weeks of vacation per year.

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4.       TERMINATION OF EMPLOYMENT. Your employment may be terminated as set
         forth herein. If your employment should terminate during the Term, your
         entitlement to benefits shall be determined in accordance with Section
         5 hereof.

         (i)      NOTICE. Your employment may be terminated by either the
                  Company or you by giving a Notice of Termination, as defined
                  in Subsection (vii) of this Section 4.

         (ii)     DISABILITY. If, as a result of your incapacity due to physical
                  or mental illness, you become permanently disabled and begin
                  actually to receive disability benefits pursuant to the Lear
                  Corporation's Salary Continuation Plan, the Lear Corporation's
                  Long Term Disability Plan for Salaried Employees, the Lear
                  Corporation Executive Disability Insurance Plan or any
                  successor thereto, your employment may be terminated for
                  "Disability".

         (iii)    CAUSE. Termination of your employment for "CAUSE" shall mean
                  termination upon:

                  (A)      an act of fraud, embezzlement or theft by you in
                           connection with your duties or in the course of your
                           employment with the Company;

                  (B)      your intentional wrongful damage to the property of
                           the Company;

                  (C)      your intentional wrongful disclosure of secret
                           processes or confidential information of the Company;

                  (D)      your intentional breach of Section 10 or Section 11
                           hereof while you remain in the employ of the Company;

                  (E)      an act of Sexual Harassment (as defined below);

                  (F)      an act of Gross Misconduct (as defined below);

                  (G)      discrimination on the basis of race, color, religion
                           or national origin; or

                  (H)      a felony conviction for a crime involving moral
                           turpitude.

         and the determination by the Directors of the Company as hereafter
         provided that any such act shall have been materially harmful to the
         Company. For purposes of this Agreement, "SEXUAL HARASSMENT" shall mean
         unwelcome sexual advances, requests for sexual favors, and other verbal
         or physical conduct of a sexual nature, based on the totality of the
         circumstances, such as the nature of the sexual advances and the
         context in which the alleged incidents occurred, when (1) submission to
         such conduct is made either explicitly or implicitly a term or
         condition of an individual's employment, (2) submission to or rejection
         of such conduct by an individual is used as the basis of employment
         decisions affecting such individual, or (3) such conduct has the
         purpose or effect of

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         unreasonably interfering with an individual's work performance or
         creating an intimidating, hostile, or offensive working environment.
         For purposes of this Agreement, "GROSS MISCONDUCT" shall mean a willful
         or negligent act or omission, which is contrary to established policies
         or practices of the Company and which has or will have a material and
         adverse impact on the business or reputation of the Company, or on the
         business of the Company's customers or suppliers as such relate to the
         Company. For purposes of this Agreement, no act, or failure to act, on
         your part shall be deemed for "CAUSE" unless done, or omitted to be
         done, by you not in good faith and without reasonable belief that your
         action or omission was in the best interest of the Company.
         Notwithstanding the foregoing, you shall not be deemed to have been
         terminated for "CAUSE" hereunder unless and until there shall have been
         delivered to you a copy of a resolution duly adopted by the affirmative
         vote of a majority of the Directors then in office at a meeting of the
         Directors called and held for such purpose (after reasonable notice to
         you and an opportunity for you, together with your counsel, to be heard
         before the Directors), finding that, in the good faith opinion of the
         Directors, you have committed an act set forth above in this Section
         4(iii) and specifying the particulars thereof in detail. Nothing herein
         shall limit your right or your beneficiaries' right to contest the
         validity or propriety of any such determination.

         (iv)     GOOD REASON. For purposes of this Agreement, "GOOD REASON"
                  shall mean the occurrence, without your express written
                  consent, of any of the following circumstances or events
                  unless such circumstances or events are fully corrected prior
                  to the Date of Termination specified in the Notice of
                  Termination, as such terms are defined in Subsections (viii)
                  and (vii) of this Section 4, respectively, given in respect
                  thereof:

                  (A)      any reduction by the Company in your base salary or
                           adverse change in the manner of computing your Bonus,
                           as in effect from time to time, except for
                           across-the-board salary reductions similarly
                           affecting all executive officers of the Company;

                  (B)      the failure by the Company to pay or provide to you
                           within seven (7) days of receipt by the Company of
                           your written demand any amounts of base salary or
                           Bonus or any benefits which are due, owing and
                           payable to you pursuant to the terms hereof, except
                           pursuant to an across-the-board compensation deferral
                           similarly affecting all executive officers, or to pay
                           to you any portion of an installment of deferred
                           compensation due under any deferred compensation
                           program of the Company;

                  (C)      except in the case of across-the-board reductions,
                           deferrals or eliminations similarly affecting all
                           executive officers of the Company, the failure by the
                           Company to (i) continue in effect any compensation or
                           benefit plan in which you participate which is
                           material to your total compensation and benefits,
                           including but not limited to the Company's plans
                           currently in effect or hereafter adopted, and any
                           plans adopted in substitution therefor, or (ii)
                           continue to provide you with benefits substantially
                           similar, in

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                           aggregate, to the Company's life insurance, medical,
                           dental, health, accident or disability plans in which
                           you are participating at the date of this Agreement;

                  (D)      the failure to elect, reelect or otherwise maintain
                           you in the office or position in the Company which
                           you held immediately prior to such failure, or your
                           removal as a Director of the Company (or any
                           successor thereof) if you shall have been a Director
                           of the Company;

                  (E)      there has been an adverse change in your
                           responsibilities, position (including substantial
                           change in status, reporting relationships or working
                           conditions), authority or duties, which situation is
                           not remedied within ten (10) calendar days after
                           receipt by the Company of written notice from you of
                           such change; or

                  (F)      without limiting the generality or effect of the
                           foregoing, any material breach of this Agreement by
                           the Company.

Your continued employment with the Company shall not constitute consent to, or a
waiver of rights with respect to, any circumstance constituting Good Reason
hereunder.

         (v)      CHANGE IN CONTROL. Notwithstanding, anything contained in this
                  Agreement to the contrary, if a Constructive Termination (as
                  defined in Section 4(vi)) shall have occurred after a Change
                  in Control shall have occurred, you may terminate employment
                  with the Company during the 30 day period immediately
                  following the first anniversary of the occurrence of such
                  Change in Control, with the right to severance compensation as
                  provided in Section 5(iv) hereof and, if applicable, Section 6
                  hereof. For purposes of this Agreement, a "CHANGE IN CONTROL"
                  shall have occurred if at any time during the Term any of the
                  following events shall occur:

                  (A)      the Company is merged or consolidated or reorganized
                           into or with another corporation or other legal
                           person or entity and as a result of such merger,
                           consolidation or reorganization less than 51% of the
                           combined voting power of the then outstanding
                           securities of such corporation or person immediately
                           after such transaction is held in the aggregate by
                           the holders of the then outstanding securities
                           entitled to vote generally in the election of
                           Directors ("VOTING STOCK") of the Company immediately
                           prior to such transaction;

                  (B)      the Company sells or otherwise transfers all or
                           substantially all of its assets to any other
                           corporation or other legal person or entity if less
                           than 51% of the combined voting power of the then
                           outstanding Voting Stock of such corporation or
                           person immediately after such sale or transfer is
                           held in the aggregate by the holders of Voting Stock
                           of the Company immediately prior to such sale or
                           transfer;

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                  (C)      there is a report filed on Schedule 13D or Schedule
                           14D-1 (or any successor schedule, form or report),
                           each as promulgated pursuant to the Securities
                           Exchange Act of 1934 (the "EXCHANGE ACT"), disclosing
                           that any person (as the term "person" is used in
                           Section 13(d)(3) or Section 14(d)(2) of the Exchange
                           Act) has become the beneficial owner (as the term
                           "beneficial owner" is defined under Rule 13d-3 or any
                           successor rule or regulation promulgated under the
                           Exchange Act) of securities representing 20% or more
                           of the then outstanding Voting Stock of the Company;

                  (D)      the Company shall file a report or proxy statement
                           with the Securities and Exchange Commission pursuant
                           to the Exchange Act disclosing in response to Item 1
                           of Form 8-K-thereunder or Item 6(e) of Schedule 14A
                           thereunder (or any successor schedule, form or report
                           or item therein) that a change in control of the
                           Company has or may have occurred or will or may occur
                           in the future pursuant to any then existing, contract
                           or transaction; or

                  (E)      during any period of two consecutive years,
                           individuals who at the beginning of any such period
                           constitute the Directors of the Company cease for any
                           reason to constitute at least a majority thereof
                           unless the election, or the nomination for election
                           by the Company's shareholders, of each Director of
                           the Company first elected during such period was
                           approved by a vote of at least two-thirds of the
                           Directors of the Company then still in office who
                           were Directors of the Company at the beginning, of
                           any such period.

Notwithstanding the foregoing provisions of Sections 4(v)(A) and 4(v)(B) hereof,
a Change in Control shall not be deemed to have occurred under Section 4(v)(A)
or 4(v)(B) if: (i) the Chairman and CEO, Vice Chairman and Presidents (i.e., the
top four executive officers) of the Company shall hold officer positions of
substantially equivalent responsibility and authority with the corporation
surviving such merger, consolidation, or reorganization, or the entity acquiring
such assets (the "ACQUIROR"); and (ii) not less than 40% of the members of the
Board of Directors or other governing body of the Acquiror shall have been
directors of the Company during the 90 day period immediately preceding such
merger, consolidation, reorganization or acquisition of assets. Notwithstanding
the foregoing provisions of Section 4(v)(C) and 4(v)(D) hereof, a Change in
Control shall not be deemed to have occurred for purposes of this Agreement
solely because (a) the Company, (b) an entity in which the Company directly or
indirectly beneficially owns more than 50% of the voting securities or (c) any
Company-sponsored employee stock ownership plan or any other employee benefit
plan of the Company, or any entity holding shares of Voting Stock for or
pursuant to the terms of any such plan, either files or becomes obligated to
file a report or a proxy statement under or in response to Schedule 13D,
Schedule 14D-l, Item I of Form 8-K or Item 6(e) of Schedule 14A (or any
successor schedule, form or report or item therein) under the Exchange Act,
disclosing beneficial ownership by it of shares of Voting Stock of the Company,
whether in excess of 20% or otherwise, or because the Company reports that a

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change in control of the Company has or may have occurred or will or may occur
in the future by reason of such beneficial ownership by the entities described
in clauses (a), (b) and (c) of this paragraph.

         (vi)     CONSTRUCTIVE TERMINATION. For purposes of this Agreement,
                  "CONSTRUCTIVE TERMINATION" shall mean the occurrence, without
                  your express written consent, of any of the following
                  circumstances or events unless such circumstances or events
                  are fully corrected prior to the Date of Termination specified
                  in the Notice of Termination, as such terms are defined in
                  Subsections (viii) and (vii) of this Section 4, respectively,
                  given in respect thereof:

                  (A)      any reduction, other than across-the-board reduction,
                           by the Company in your base salary or adverse change
                           in the manner of computing your Bonus, as in effect
                           from time to time;

                  (B)      the failure by the Company to pay or provide to you
                           within seven (7) days of receipt by the Company of
                           your written demand any amounts of base salary or
                           Bonus or any benefits which are due, owing and
                           payable to you pursuant to the terms hereof, or to
                           pay to you any portion of an installment of deferred
                           compensation due under any deferred compensation
                           program of the Company;

                  (C)      the failure by the Company to (i) continue in effect
                           any compensation or benefit plan in which you
                           participate which is material to your total
                           compensation and benefits, including but not limited
                           to the Company's plans currently in effect or
                           hereafter adopted, and any plans adopted in
                           substitution therefor, or (ii) continue to provide
                           you with benefits substantially similar, in
                           aggregate, to the Company's life insurance, medical,
                           dental, health, accident or disability plans in which
                           you are participating at the date of this Agreement;

                  (D)      the failure to elect, reelect or otherwise maintain
                           you in the office or substantially same position in
                           the Company which you held immediately prior to such
                           failure, or your removal as a Director of the Company
                           (or any successor thereof) if you shall have been a
                           Director of the Company;

                  (E)      there has been an adverse change in your
                           responsibilities, position (including substantial
                           change in status, reporting relationships or working
                           conditions), authority or duties, which situation is
                           not remedied within ten (10) calendar days after
                           receipt by the Company of written notice from you of
                           such change;

                  (F)      the requirement by the Company that you change your
                           principal location of work to any location which is
                           in excess of 50 miles from your principal location of
                           work immediately prior to such relocation, or a
                           material increase in your travel away from your
                           office in the course of discharging

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                           your responsibilities or duties hereunder, without,
                           in either case, your prior written consent; or

                  (G)      without limiting the generality or effect of the
                           foregoing, any material breach of this Agreement by
                           the Company.

Your continued employment with the Company shall not constitute consent to, or a
waiver of rights with respect to, any circumstance constituting Constructive
Termination hereunder.

         (vii)    NOTICE OF TERMINATION. Any termination of your employment by
                  the Company or by you shall be communicated by written Notice
                  of Termination to the other party hereto in accordance with
                  Section 9 hereof. For purposes of this Agreement, a "NOTICE OF
                  TERMINATION" shall mean a notice which shall indicate the
                  specific termination provision in this Agreement relied upon,
                  if any, and shall set forth in reasonable detail the facts and
                  circumstances claimed to provide a basis for termination of
                  your employment under the provision so indicated.

         (viii)   DATE OF TERMINATION. "DATE OF TERMINATION" shall mean

                  (A)      if your employment is terminated for Disability
                           pursuant to Subsection (ii) of this Section 4, the
                           date on which you are considered disabled pursuant to
                           the Lear Corporation's Salary Continuation Plan, the
                           Lear Corporation's Long Term Disability Plan for
                           Salaried Employees, the Lear Corporation Executive
                           Disability Insurance Plan or any successor thereto;

                  (B)      if your employment is terminated by reason of your
                           death, the date of your death;

                  (C)      if your employment is terminated by you for Good
                           Reason or by either party for any other reason (other
                           than Disability, death, or your voluntary resignation
                           without Good Reason), the date specified in the
                           Notice of Termination (which, in the case of a
                           termination by you for Good Reason, shall not be less
                           than thirty (30) nor more than sixty (60) days from
                           the date such Notice of Termination is given); and

                  (D)      if your employment is terminated by your voluntary
                           resignation without Good Reason (as defined in
                           Subsection (iv) of this Section 4), the Date of
                           Termination shall be forty-five (45) days from the
                           date such Notice of Termination is given or such
                           earlier date after the date such Notice of
                           Termination is given, as may be identified by the
                           Company.

Unless the Company instructs you not to do so, you shall continue to perform
services as provided in this Agreement through the Date of Termination.

         (ix)     EMPLOYEE BENEFITS. A termination by the Company pursuant to
                  Section 4(ii) hereof or by you pursuant to Section 4(iv) or
                  Section 4(v) hereof shall not affect

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                  any rights which you may have pursuant to any other agreement,
                  policy, plan, program or arrangement of the Company providing
                  employee benefits, which rights shall be governed by the terms
                  thereof; provided, however, that if you shall have received or
                  shall be receiving benefits under Section 5 hereof and, if
                  applicable, Section 6 hereof, you shall not be entitled to
                  receive benefits under any other policy, plan, program or
                  arrangement of the Company providing severance compensation to
                  which you would otherwise be entitled. If this Agreement or
                  your employment is terminated under circumstances in which you
                  are not entitled to any payments under Section 5 hereof, you
                  shall have no further obligation or liability to the Company
                  hereunder with respect to your prior or any future employment
                  by the Company.

5.       COMPENSATION UPON TERMINATION OR DURING DISABILITY. Upon termination of
         your employment with the Company during the Term, you shall be entitled
         to the following compensation and benefits:

         (i)      If your employment is terminated for Disability, (a) for the
                   period from the Date of Termination until the end of the
                  calendar year in which such termination occurs, you shall
                  receive all compensation payable to you under the Company's
                  disability and medical plans and programs, as in effect on the
                  Date of Termination, plus an additional payment from the
                  Company (if necessary) such that the aggregate amount received
                  by you in the nature of salary continuation from all sources
                  equals your base salary, at the rate in effect on the Date of
                  Termination, plus any Bonus earned and all other amounts to
                  which you are entitled under any compensation or benefit plans
                  of the Company, prorated for the portion of the Bonus,
                  compensation or benefit measurement period occurring prior to
                  the Date of Termination, and (b) for the period from the end
                  of the calendar year in which such termination occurs until
                  the end of the Term, you shall receive all compensation
                  payable to you under the Company's disability and medical
                  plans and programs, as in effect on the Date of Termination,
                  plus an additional payment from the Company (if necessary)
                  such that the aggregate amount received by you in the nature
                  of salary continuation from all sources equals your base
                  salary at the rate in effect on the Date of Termination. After
                  the end of the Term, your benefits shall be determined under
                  the Company's retirement, insurance and other compensation
                  programs then in effect in accordance with the terms of such
                  programs, provided that such terms shall not be less
                  advantageous to you than the terms of such programs in effect
                  as of the Effective Date.

         (ii)     If your employment shall be terminated (a) by the Company for
                  Cause, or (b) by you other than for Good Reason or a
                  Constructive Termination after a Change in Control, the
                  Company shall pay you your base salary proportionately
                  allocated on a pro-rata basis through the Date of Termination,
                  at the rate in effect at the time Notice of Termination is
                  given, plus all other amounts to which you are fully vested
                  and irrevocably entitled under any compensation or benefit
                  plans of the Company as of the Date of Termination, and the
                  Company shall have no further

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                  obligations in any respect whatsoever for payment of
                  compensation or benefits to you under this Agreement.
                  Provided, however, that if your employment is terminated by
                  your voluntary resignation without Good Reason, you shall be
                  compensated under this Subsection 5(ii) only to the extent
                  that you actively performed your assigned responsibilities
                  through the Date of Termination.

         (iii)    If your employment shall be terminated by reason of your
                  death, the Company shall pay your estate or designated
                  beneficiary (as designated by you by written notice to the
                  Company, which designation shall remain in effect for the
                  remainder of the Term and any extensions thereof until revoked
                  or a new beneficiary is designated, in either case by written
                  notice to the Company) your base salary proportionately
                  allocated on a pro-rata basis through the Date of Termination
                  and for a period of 12 whole calendar months thereafter plus,
                  if the Date of Termination shall not occur on the first day of
                  a calendar month, the balance of the month in which the Date
                  of Termination occurs, at the rate in effect at the time of
                  your death, plus any Bonus earned, prorated for the portion of
                  the Bonus measurement period occurring prior to the date of
                  your death, plus all other amounts to which you are entitled
                  under any compensation or benefit plans of the Company at the
                  date of your death, including, but not limited to, all life
                  insurance proceeds payable on your death to which your estate
                  or beneficiaries are otherwise entitled in accordance with the
                  terms thereof, and the Company shall have no further
                  obligation to you, your beneficiaries or your estate under
                  this Agreement.

         (iv)     If your employment shall be terminated (a) by the Company
                  other than for Cause or Disability or (b) by you for Good
                  Reason or because of Constructive Termination after a Change
                  in Control, then you shall be entitled to the benefits
                  provided below:

                  (A)      The Company shall pay you your full base salary
                           through the Date of Termination at the rate in effect
                           at the time Notice of Termination is given (or, if
                           greater, at the rate in effect 30 days prior to the
                           time Notice of Termination is given), plus all other
                           amounts to which you are entitled under any
                           compensation or benefit plans of the Company,
                           including, without limitation, any Bonus earned,
                           prorated for the portion of the Bonus measurement
                           period occurring, prior to the Date of Termination,
                           at the time such payments are due, except as
                           otherwise provided below.

                  (B)      The Company shall pay or cause to be paid to you, in
                           lieu of any further payments to you for the portion
                           of the Term subsequent to the Termination Date,
                           excluding any amounts payable under Section 5(iv)(D)
                           hereof, and excluding your rights at law or in equity
                           (other than rights to damages for termination of your
                           employment or this Agreement), a payment, which shall
                           be made either (i) if mutually agreed to by you (or
                           your estate or other representative) and the Company
                           as of the Date of Termination, in a lump sum within
                           five business days after the Termination Date in an

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                           amount equal to the present value of the Severance
                           Payment (as defined below), using a discount rate
                           equal to the applicable interest rate promulgated by
                           the Internal Revenue Service ("IRS") under Section
                           417(e)(3) of the Internal Revenue Code of 1986, as
                           amended ("CODE") for the third month preceding the
                           month in which the Termination Date occurs, and if
                           the IRS ceases to promulgate such interest rates, the
                           last such interest rate so promulgated, or (ii) in
                           the absence of such an agreement, in installments,
                           without interest (with exceptions for any amounts
                           imputed or otherwise deemed or recharacterized as
                           interest under the Code) in thirty-six (36) equal
                           monthly installments with each such monthly
                           installment payment equal to 1/36th of the aggregate
                           amount of the Severance Payment. The "SEVERANCE
                           PAYMENT" shall be equal to the sum of:

                           (i)      the aggregate base salary (at the highest
                                    rate in effect at any time during the Term)
                                    which you would have received pursuant to
                                    this Agreement for two years, had your
                                    employment with the Company continued for
                                    such period; plus

                           (ii)     the aggregate Bonus (based upon the highest
                                    annual Bonus that you received with respect
                                    to any calendar year during, the three
                                    calendar years immediately preceding the
                                    calendar year in which the Termination Date
                                    occurred) which you would have received
                                    pursuant to this Agreement for two years,
                                    had your employment with the Company
                                    continued for such period; plus

                           (iii)    the cash value of all benefits that would be
                                    payable to you under the Company Pension
                                    Equalization Plan ("PEP"), the Company
                                    Management Stock Purchase Plan ("MSPP"), the
                                    Company Executive Supplemental Savings Plan
                                    ("ESSP"), and the Company Long-Term Stock
                                    Incentive Plan ("LTSIP") (the PEP, MSPP,
                                    ESSP and LTSIP are collectively referred to
                                    herein as the "PLANS"), (based upon the
                                    highest annual aggregate rate that you
                                    received benefits under each of the Plans
                                    with respect to any calendar year during the
                                    three calendar years immediately preceding
                                    the calendar year in which the Termination
                                    Date occurs) pursuant to this Agreement for
                                    two years, had your employment with the
                                    Company continued for such period, other
                                    than Plan benefits providing base salary,
                                    Bonus and the benefits to be provided
                                    pursuant to Section 5(iv)(D) hereof.

You and the Company acknowledge that references in this Section 5(iv)(B) to the
PEP, the MSPP, the ESSP, and the LTSIP, shall be deemed to be references to such
plans as amended or restated from time to time and to any similar plan of the
Company that supplements or supersedes any such plans; provided that any
amendment during the Term that reduces benefits under the PEP, the MSPP, the
ESSP, or the LTSIP (or any similar plan of the Company that

                                       11

<PAGE>

supplements or supersedes any of such plans) in any way (including without
limitation by reducing, the rate of benefit accruals or contribution levels
under any of such plans, or by changing, the basis upon which actuarial
equivalents are determined under any such plans) shall be disregarded for
purposes of this Section 5(iv)(B). In addition, you and the Company acknowledge
that references in this Section 5 to any Section of the Code shall be deemed to
be references to such Section as amended from time to time or to any successor
thereto.

                  (C)      The Company shall pay all legal fees and expenses
                           incurred by you as a result of such termination
                           (including without limitation all such fees and
                           expenses, if any, incurred in seeking to obtain or
                           enforce any right or benefit provided by this
                           Agreement in accordance with Section 21 hereof).

                  (D)      The Company shall arrange to provide to you, for the
                           remainder of the Term, benefits provided under any
                           "welfare benefit plan" of the Company as the term
                           "welfare benefit plan" is defined in Section 3(1) of
                           the Employee Retirement Income Security Act of 1974,
                           as amended, which you were receiving or entitled to
                           receive during the Term ("WELFARE BENEFITS"). If and
                           to the extent that any such Welfare Benefits shall
                           not or cannot be paid or provided under any policy,
                           plan, program or arrangement of the Company (i)
                           solely due to the fact that you are no longer an
                           officer or employee of the Company or did not
                           continue as an officer or employee of the Company
                           during the remainder of the Term or (ii) as a result
                           of the amendment or termination of any plan providing
                           for Welfare Benefits, the Company shall then itself
                           pay or provide for the payment of such Welfare
                           Benefits to you, your dependents and beneficiaries.
                           Without otherwise limiting the purposes or effect of
                           the no mitigation obligation in Section 5(viii)
                           hereof, Welfare Benefits payable to you (including
                           your dependents and beneficiaries) pursuant to this
                           Section 5(iv)(D) shall be reduced to the extent
                           comparable benefits are actually received by you
                           (including your dependents and beneficiaries) from
                           another employer during such period, and any such
                           benefits actually received by you shall be reported
                           by you to the Company.

                  (E)      Your right to acquire any shares of the Company's
                           capital stock under any and all outstanding stock
                           options, or other rights previously granted to you
                           under any stock option, stock purchase, stock
                           appreciation, or similar equity-based plans of the
                           Company shall expire as of the Date of Termination
                           and be null, void, and of no further force or effect,
                           except (i) to the extent the express terms of such
                           stock option, stock purchase, stock appreciation, or
                           similar equity-based plans provide for vesting or
                           other manner of continuation after the Date of
                           Termination, or (ii) on such terms and conditions as
                           mutually agreed to by you and the Company as of the
                           Date of Termination.

         (v)      Any Bonus that is payable to you with respect to a period that
                  is less than a full calendar year (a "PARTIAL CALENDAR YEAR")
                  shall be prorated by multiplying (i) the

                                       12

<PAGE>

                  Bonus that would have been payable to you with respect to the
                  entire calendar year had your employment with the Company
                  continued until the end of such year by (ii) a fraction, the
                  numerator of which equals the number of days in the partial
                  calendar year and the denominator of which equals 365.

         (vi)     The Company, if permitted by law, may set-off or counterclaim
                  losses, fines or damages in respect of any claim, debt or
                  obligation against any payment to or benefit for you provided
                  for in this Agreement.

         (vii)    Without limiting your rights at law or in equity, if the
                  Company fails to make any payment or provide any benefit
                  required to be made or provided hereunder on a timely basis,
                  the Company will pay interest on the amount or value thereof
                  at an annualized rate of interest equal to the "PRIME RATE" as
                  quoted from time to time during the relevant period in The
                  Wall Street Journal, plus three percent. Such interest will be
                  payable as it accrues on demand. Any change in such prime rate
                  will be effective on and as of the date of such change.

         (viii)   The Company hereby acknowledges that it will be difficult, and
                  may be impossible, for you to find reasonably comparable
                  employment following the Termination Date. In addition, the
                  Company acknowledges that its severance pay plans and policies
                  applicable in general to its salaried employees do not provide
                  for mitigation, offset or reduction of any severance payment
                  received thereunder. Accordingly, the parties hereto expressly
                  agree that the payment of the severance compensation by the
                  Company to you in accordance with the terms of this Agreement
                  shall be liquidated damages and that you shall not be required
                  to mitigate the amount of any payment provided for in this
                  Agreement by seeking other employment or otherwise, nor shall
                  any profits, income, earnings or other benefits from any
                  source whatsoever create any mitigation, offset, reduction or
                  any other obligation on the part of you hereunder or
                  otherwise, except as expressly provided in this Section 5.

6.       CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY.

         (i)      Anything in this Agreement to the contrary notwithstanding, in
                  the event that it shall be determined (as hereafter provided)
                  that any payment by the Company to or for your benefit,
                  whether paid or payable pursuant to the terms of this
                  Agreement or otherwise (a "PAYMENT"), would be subject to the
                  excise tax imposed by Section 4999 (or any successor thereto)
                  of the Code, and any interest or penalties with respect to
                  such excise tax (such excise tax, together with any such
                  interest and penalties, are hereafter collectively referred to
                  as the "EXCISE TAX"), then you shall be entitled to receive an
                  additional payment or payments (collectively, a "GROSS-UP
                  PAYMENT"), including without limitation any Gross-Up Payment
                  made with respect to the Excise Tax, if any, attributable to
                  (i) any incentive stock option, as defined by Section 422 of
                  the Code ("ISO"), or (ii) any stock appreciation or similar
                  right, whether or not limited, granted in tandem with any ISO.
                  The Gross-Up Payment shall be in an amount such that, after
                  payment

                                       13

<PAGE>

                  by you of the Excise Tax, plus any additional taxes, penalties
                  and interest, and any further Excise Taxes imposed upon the
                  Gross-Up Payment, you retain, after payment of all such taxes
                  and Excise Taxes, an amount of the Gross-Up Payment equal to
                  the Payment that you would have received if no Excise Taxes
                  had been imposed upon the Payment and no additional taxes or
                  further Excise Taxes had been imposed upon the Gross-Up
                  Payment.

         (ii)     Subject to the provisions of Section 6(v) hereof, all
                  determinations required to be made under this Section 6,
                  including whether an Excise Tax is payable by you and the
                  amount of such Excise Tax and whether a Gross-Up Payment is
                  required and the amount of such Gross-Up Payment, shall be
                  made by a nationally recognized firm of certified public
                  accountants (the "ACCOUNTING FIRM") selected by you in your
                  sole discretion. You shall direct the Accounting Firm to
                  submit its determination and detailed supporting calculations
                  to both the Company and you within 30 calendar days after the
                  Termination Date. If the Accounting Firm determines that any
                  Excise Tax is payable by you, the Company shall pay the
                  required Gross-Up Payment to you within five (5) business days
                  after receipt of the aforesaid determination and calculations.
                  If the Accounting Firm determines that no Excise Tax is
                  payable by you, it shall, at the same time as it makes such
                  determination, furnish you with an opinion that you do not owe
                  any Excise Tax on your Federal income tax return. Any
                  determination by the Accounting Firm as to the amount of the
                  Gross-Up Payment to be paid by the Company within such 30
                  calendar day period shall be binding upon the Company and you.
                  As a result of the uncertainty in the application of Section
                  4999 (or any successor thereto) of the Code at the time of the
                  initial determination by the Accounting Firm hereunder, it is
                  possible that Gross-Up Payments which will not have been made
                  by the Company should have been made ("UNDERPAYMENT"),
                  consistent with the calculations required to be made
                  hereunder. In the event that the Company exhausts its remedies
                  pursuant to Section 6(v) hereof and you thereafter are
                  required to make a payment of any Excise Tax, you shall direct
                  the Accounting Firm to determine the amount of the
                  Underpayment that has occurred and to submit its determination
                  and detailed supporting calculations to both the Company and
                  you as promptly as possible. Any such Underpayment shall be
                  promptly paid by the Company to or for your benefit within
                  three calendar days after receipt of such determination and
                  calculations.

         (iii)    The Company and you shall each cooperate with the Accounting
                  Firm in connection with the preparation and issuance of the
                  determination provided for in Section 6(ii) hereof. Such
                  cooperation shall include without limitation providing the
                  Accounting Firm access to and copies of any books, records and
                  documents in the possession of the Company or you, as the case
                  may be, that are reasonably requested by the Accounting Firm.

         (iv)     The fees and expenses of the Accounting Firm for its
                  services in connection with the determinations and
                  calculations provided for in Section 6(ii) hereof shall
                  initially be paid by you. The Company shall reimburse you for
                  your payment of

                                       14

<PAGE>

                  such costs and expenses within five (5) business days after
                  receipt from you of a statement therefor and evidence of your
                  payment thereof.

         (v)      You shall notify the Company in writing, of any claim by the
                  IRS that, if successful, would require the payment by the
                  Company of a Gross-Up Payment. Such notification shall be
                  given as soon as practicable but no later than 10 business
                  days after you receive notice of such claim and shall apprise
                  the Company of the nature of such claim and the date on which
                  such claim is requested to be paid. You shall not pay such
                  claim prior to the earlier of (A) the expiration of the 30
                  calendar day period following the date on which you give such
                  notice to the Company or (B) the date that any payment of
                  taxes with respect to such claim is due. If the Company
                  notifies you in writing prior to the expiration of such period
                  that it desires to contest such claim, you shall:

                  (i)      give the Company any information reasonably requested
                           by the Company relating, to such claim;

                  (ii)     take such action in connection with contesting such
                           claim as the Company shall reasonably request in
                           writing, from time to time, including without
                           limitation accepting legal representation with
                           respect to such claim by an attorney reasonably
                           selected by the Company;

                  (iii)    cooperate with the Company in good faith in order
                           effectively to contest such claim; and

                  (iv)     permit the Company to participate in any proceedings
                           relating to such claim;

                  provided, however, that the Company shall bear and pay
                  directly all costs and expenses (including additional interest
                  and penalties) incurred in connection with such contest and
                  shall indemnify and hold you harmless, on an after-tax basis,
                  for any Excise Tax or income tax, including interest and
                  penalties with respect thereto, imposed as a result of such
                  representation and payment of costs and expenses. Without
                  limitation on the foregoing provisions of this Section 6(v),
                  the Company shall, provided that such control does not have a
                  material adverse affect on your individual income tax with
                  respect to matters unrelated to the contest of the Excise Tax,
                  control all proceedings taken in connection with such contest
                  and, at its sole option, may, provided that such pursuit or
                  foregoing does not have a material adverse affect on your
                  individual income tax with respect to matters unrelated to the
                  contest of the Excise Tax, pursue or forego any and all
                  administrative appeals, proceedings, hearings and conference
                  with the IRS in respect of such claim (but, you may
                  participate therein at your own cost and expense) and may, at
                  its sole option, provided that such payment, suit, contest or
                  prosecution does not have a material adverse affect on your
                  individual income tax with respect to matters unrelated to the
                  contest of the Excise Tax, either direct you to pay the tax
                  claimed and sue for a refund or contest the claim in any
                  permissible

                                       15

<PAGE>

                  manner, and you agree to prosecute such contest to a
                  determination before any administrative tribunal, in a court
                  of initial jurisdiction and in one or more appellate courts,
                  as the Company shall determine; provided, however, that if the
                  Company directs you to pay the tax claimed and sue for a
                  refund, the Company shall advance the amount of such payment
                  to you on an interest-free basis and shall indemnify and hold
                  you harmless, on an after-tax basis, from any Excise Tax or
                  income tax, including interest or penalties with respect
                  thereto, imposed with respect to such advance or with respect
                  to any imputed income with respect to such advance; and
                  further provided that any extension of the statute of
                  limitations relating to payment of taxes for your taxable year
                  with respect to which the contested amount is claimed to be
                  due is limited solely to such contested amount. Furthermore,
                  the Company's control of such contest shall be limited to
                  issues with respect to which a Gross Up Payment would be
                  payable hereunder, and you shall be entitled to settle or
                  contest, as the case may be, any other issue raised by the
                  IRS.

         (vi)     If, after the receipt by you of an amount advanced by the
                  Company pursuant to Section 6(v) hereof, you receive any
                  refund with respect to such claim, you shall (subject to the
                  Company's complying with the requirements of Section 6(v)
                  hereof) promptly pay to the Company the amount of such refund
                  (together with any interest paid or credited thereon after any
                  taxes applicable thereto). If, after the receipt by you of an
                  amount advanced by the Company pursuant to Section 6(v)
                  hereof, a determination is made that you shall not be entitled
                  to any refund with respect to such claim and the Company does
                  not notify you in writing of its intent to contest such denial
                  or refund prior to the expiration of 30 calendar days after
                  such determination, then such advance shall be forgiven and
                  shall not be required to be repaid and the amount of such
                  advance shall offset, to the extent thereof, the amount of
                  Gross-Up Payment required to be paid.

7.       TRAVEL. Except to the extent that you are permitted to terminate your
         employment for Constructive Termination after a Change in Control as
         provided in Section 4(v), you shall be required to travel to the extent
         necessary for the performance of your responsibilities under this
         Agreement.

8.       SUCCESSORS; BINDING AGREEMENT. The Company will, by agreement in form
         and substance satisfactory to you, require any successor (whether
         direct or indirect, by purchase merger, consolidation or otherwise) to
         all or substantially all the business and/or assets of the Company, to
         expressly assume and agree to perform this Agreement in the same manner
         and to the same extent that the Company would be required to perform it
         if no such succession had taken place. Failure of the Company to obtain
         such assumption and agreement prior to the effectiveness of any such
         succession shall entitle you to compensation from the Company in the
         same amount and on the same terms as you would be entitled to hereunder
         if you terminate your employment for Good Reason, except that for
         purposes of implementing, the foregoing, the date on which any such
         succession becomes effective shall be deemed the Date of Termination.
         As used in this Agreement, "COMPANY" shall mean the Company as
         hereinbefore defined and any

                                       16

<PAGE>

         successor to its business and/or assets as aforesaid which assumes and
         agrees to perform this Agreement by operation of law, or otherwise.
         This Agreement shall inure to the benefit of and be enforceable by your
         personal or legal representatives, executors, administrators,
         successors, heirs, distributees and/or legatees. This Agreement is
         personal in nature and neither of the parties hereto shall, without the
         consent of the other, assign, transfer or delegate this Agreement or
         any rights or obligations hereunder except as expressly provided in
         this Section 8. Without limiting the generality of the foregoing, your
         right to receive payments hereunder shall not be assignable or
         transferable, whether by pledge, creation of a security interest or
         otherwise, other than by a transfer by your will or by the laws of
         descent and distribution and, in the event of any attempted assignment
         or transfer contrary to this Section 8, the Company shall have no
         liability to pay to the purported assignee or transferee any amount so
         attempted to be assigned or transferred. The Company and you recognize
         that each party will have no adequate remedy at law for any material
         breach by the other of any of the agreements contained herein and, in
         the event of any such breach, the Company and you hereby agree and
         consent that the other shall be entitled to a decree of specific
         performance, mandamus or other appropriate remedy to enforce
         performance of this Agreement.

9.       NOTICES. For the purpose of this Agreement, notices and all other
         communications provided for in this Agreement shall be in writing, and
         shall be deemed to have been duly given when delivered by hand, or
         mailed by United States certified mail, return receipt requested,
         postage prepaid, or sent by Federal Express or similar overnight
         courier service, addressed to the respective addresses set forth on the
         first page of this Agreement, or sent by facsimile with confirmation of
         receipt to the respective facsimile numbers set forth on the first page
         of this Agreement, provided that all notices to the Company shall be
         directed to the attention of the Secretary of the Company (or, if you
         are the Secretary at the time such notice is to be given, to the
         Chairman of the Company's Board of Directors), or to such other address
         or facsimile number as either party may have furnished to the other in
         writing in accordance herewith, except that notice of change of address
         or facsimile number shall be effective only upon receipt.

10.      NONCOMPETITION.

         (i)      Until the Date of Termination, you agree not to engage in any
                  Competitive Activity. For purposes of this Agreement, the term
                  "COMPETITIVE ACTIVITY" shall mean your participation, without
                  the written consent of an officer of the Company of higher
                  rank and standing than yourself (and if there is no such
                  person then by the Chairman of the Board of Directors), in the
                  management of any business enterprise if such enterprise
                  engages in substantial and direct competition with the Company
                  (including without limitation any supplier to an original
                  equipment automotive vehicle manufacturer) and such
                  enterprise's sales of any product or service competitive with
                  any product or service of the Company amounted to 25% of such
                  enterprise's net sales for its most recently completed fiscal
                  year and if the Company's net sales of said product or service
                  amounted to 25% of the Company's net sales for its most
                  recently completed fiscal year. "COMPETITIVE ACTIVITY" shall
                  not include (i) the mere ownership of securities in any
                  enterprise

                                       17

<PAGE>

                  and exercise of rights appurtenant thereto or (ii)
                  participation in management of any enterprise or business
                  operation thereof other than in connection with the
                  competitive operation of such enterprise.

         (ii)     You agree not to engage in any Competitive Activity (A) until
                  one (1) year after the Date of Termination if you are
                  terminated for Cause or you terminate your employment for
                  other than Good Reason or Constructive Termination after a
                  Change in Control, or (B) until three (3) years after the Date
                  of Termination if you are terminated by the Company other than
                  for Cause or you terminate your employment for Good Reason or
                  Constructive Termination after a Change in Control.

         (iii)    You shall not directly or indirectly, either on your own
                  account or with or for anyone else, (A) solicit or attempt to
                  solicit any of the Company's customers (B) solicit or attempt
                  to solicit for any business endeavor any employee of the
                  Company or (C) otherwise divert or attempt to divert from the
                  Company any business whatsoever or interfere with any business
                  relationship between the Company and any other person, (a)
                  until one (1) year after the Date of Termination if you are
                  terminated for Cause or you terminate your employment for
                  other than Good Reason or Constructive Termination after a
                  Change in Control, or (b) until three (3) years after the Date
                  of Termination if you are terminated other than for Cause or
                  you terminate your employment for Good Reason or Constructive
                  Termination after a Change in Control.

         (iv)     You acknowledge and agree that damages for breach of the
                  covenants in this Section 10 will be difficult to determine
                  and will not afford a full and adequate remedy, and therefore
                  agree that the Company, in addition to seeking actual damages
                  pursuant to Section 10 hereof, may seek specific enforcement
                  of the covenant not to compete in any court of competent
                  jurisdiction, including, without limitation, by the issuance
                  of a temporary or permanent injunction, without the necessity
                  of a bond. You and the Company agree that the provisions of
                  this covenant not to compete are reasonable. However, should
                  any court or arbitrator determine that any provision of this
                  covenant not to compete is unreasonable, either in period of
                  time, geographical area, or otherwise, the parties agree that
                  this covenant not to compete should be interpreted and
                  enforced to the maximum extent which such court or arbitrator
                  deems reasonable.

         (v)      As compensation for your covenants contained in Sections
                  10(ii)(B) and 10(iii)(b), the Company shall pay or cause to be
                  paid to you a payment, which shall be made either (i) if
                  mutually agreed to by you (or your estate or other
                  representative) and the Company as of the Date of Termination,
                  in a lump sum within five business days after the Termination
                  Date in an amount equal to the present value of the Noncompete
                  Payment (as defined below), using a discount rate equal to the
                  applicable interest rate promulgated by the Internal Revenue
                  Service ("IRS") under Section 417(e)(3) of the Internal
                  Revenue Code of 1986, as amended ("CODE") for the third month
                  preceding the month in which the Termination Date

                                       18

<PAGE>

                  occurs, and if the IRS ceases to promulgate such interest
                  rates, the last such interest rate so promulgated, or (ii) in
                  the absence of such an agreement, in installments, without
                  interest (with exceptions for any amounts imputed or otherwise
                  deemed or recharacterized as interest under the Code) in
                  thirty-six (36) equal monthly installments with each such
                  monthly installment payment equal to 1/36th of the aggregate
                  amount of the Noncompete Payment. The "NONCOMPETE PAYMENT"
                  shall be equal to the sum of:

                  (i)      the aggregate base salary (at the highest rate in
                           effect at any time during the Term) which you would
                           have received pursuant to this Agreement for one
                           year, had your employment with the Company continued
                           for such period; plus

                  (ii)     the aggregate Bonus (based upon the highest annual
                           Bonus that you received with respect to any calendar
                           year during, the three calendar years immediately
                           preceding the calendar year in which the Termination
                           Date occurred) which you would have received pursuant
                           to this Agreement for one year, had your employment
                           with the Company continued for such period plus

                  (iii)    the cash value of all benefits that would be payable
                           to you under the Company Pension Equalization Plan
                           ("PEP"), the Company Management Stock Purchase Plan
                           ("MSPP"), the Company Executive Supplemental Savings
                           Plan ("ESSP"), and the Company Long-Term Stock
                           Incentive Plan ("LTSIP") (the PEP, MSPP, ESSP and
                           LTSIP are collectively referred to herein as the
                           "PLANS"), (based upon the highest annual aggregate
                           rate that you received benefits under each of the
                           Plans with respect to any calendar year during the
                           three calendar years immediately preceding the
                           calendar year in which the Termination Date occurs)
                           pursuant to this Agreement for one year, had your
                           employment with the Company continued for such
                           period, other than Plan benefits providing base
                           salary, Bonus and the benefits to be provided
                           pursuant to Section 5(iv)(D) hereof.

You and the Company acknowledge that references in this Section 10(v) to the
PEP, the MSPP, the ESSP, and the LTSIP, shall be deemed to be references to such
plans as amended or restated from time to time and to any similar plan of the
Company that supplements or supersedes any such plans; provided that any
amendment during the Term that reduces benefits under the PEP, the MSPP, the
ESSP, or the LTSIP (or any similar plan of the Company that supplements or
supersedes any of such plans) in any way (including without limitation by
reducing, the rate of benefit accruals or contribution levels under any of such
plans, or by changing, the basis upon which actuarial equivalents are determined
under any such plans) shall be disregarded for purposes of this Section
5(iv)(B). In addition, you and the Company acknowledge that references in this
Section 10 to any Section of the Code shall be deemed to be references to such
Section as amended from time to time or to any successor thereto.

                                       19

<PAGE>

11.      CONFIDENTIALITY AND COOPERATION.

         (i)      You shall not knowingly use, disclose or reveal to any
                  unauthorized person, during, or after the Term, any trade
                  secret or other confidential information relating to the
                  Company or any of its affiliates, or any of their respective
                  businesses or principals, such as, without limitation,
                  dealers' or distributor's lists, information regarding
                  personnel and manufacturing processes, marketing and sales
                  plans, and all other such information; and you confirm that
                  such information is the exclusive property of the Company and
                  its affiliates. Upon termination of your employment, you agree
                  to return to the Company on demand by the Company all
                  memoranda, books, papers, letters and other data, and all
                  copies thereof or therefrom, in any way relating to the
                  business of the Company and its affiliates, whether made by
                  you or otherwise in your possession.

         (ii)     Any design, engineering methods, techniques, discoveries,
                  inventions (whether patentable or not), formulae,
                  formulations, technical and product specifications, bill of
                  materials, equipment descriptions, plans, layouts, drawings,
                  computer programs, assembly, quality control, installation and
                  operating procedures, operating manuals, strategic, technical
                  or marketing information, designs, data, secret knowledge,
                  know-how and all other information of a confidential nature
                  prepared or produced during the period of your employment and
                  which ideas, processes, etc. relate to any of the businesses
                  of the Company, shall be owned by the Company and its
                  affiliates whether or not you should in fact execute an
                  assignment thereof or other instrument or document which may
                  be reasonably necessary to protect and secure such rights to
                  the Company.

         (iii)    During the Term and for a period ending on the later of three
                  (3) years after the Date of Termination or at the conclusion
                  of any dispute which commences during the Term, you shall
                  cooperate and comply with all reasonable requests made by the
                  Company in prosecuting or defending any claim with respect to
                  any litigation or arbitration or any pending or threatened
                  litigation or arbitration, involving any invention, patent,
                  trademark, trade name, secret process, or other intangible
                  property in which the Company has, or reasonably believes it
                  has, proprietary rights in and which you had substantial
                  involvement in the development of during the Term of your
                  employment. You shall not receive any additional compensation,
                  other than reimbursement for reasonable costs and expenses
                  incurred by you, in complying with the terms of this Section
                  11 (iii).

12.      ARBITRATION.

         (i)      Except as contemplated by Section 10(iv) or Section 12 (iii)
                  hereof, any dispute or controversy arising under or in
                  connection with this Agreement that cannot be mutually
                  resolved by the parties to this Agreement and their respective
                  advisors and representatives shall be settled exclusively by
                  arbitration in Southfield, Michigan, before one arbitrator of
                  exemplary qualifications and stature, who shall be selected
                  jointly by an individual to be designated by the Company and
                  an

                                       20

<PAGE>

                  individual to be selected by you, or if such two individuals
                  cannot agree on the selection of the arbitrator, who shall be
                  selected pursuant to the procedures of the American
                  Arbitration Association.

         (ii)     The parties agree to use their best efforts to cause (a) the
                  two individuals set forth in the preceding Section 12(i), or,
                  if applicable, the American Arbitration Association, to
                  appoint the arbitrator within 30 days of the date that a party
                  hereto notifies the other party that a dispute or controversy
                  exists that necessitates the appointment of an arbitrator, and
                  (b) any arbitration hearing to be held within 30 days of the
                  date of selection of the arbitrator, and, as a condition to
                  his or her selection, such arbitrator must consent to be
                  available for a hearing, at such time.

         (iii)    Judgment may be entered on the arbitrator's award in any court
                  having jurisdiction, provided that you shall be entitled to
                  seek specific performance of your right to be paid and to
                  participate in benefit programs during the pendency of any
                  dispute or controversy arising under or in connection with
                  this Agreement. The Company and you hereby agree that the
                  arbitrator shall be empowered to enter an equitable decree
                  mandating specific performance of the terms of this Agreement.
                  If any dispute under this Section 12 shall be pending, the
                  Executive shall continue to receive at a minimum the base
                  salary which the Executive was receiving immediately prior to
                  the act or omission which forms the basis for the dispute.

13.      MODIFICATIONS. No provision of this Agreement may be modified, amended,
         waived or discharged unless such modification, amendment, waiver or
         discharge is agreed to in writing and signed by both you and such
         officer of the Company as may be specifically designated by the Board.

14.      NO IMPLIED WAIVERS. Failure of either party at any time to require
         performance by the other party of any provision hereof shall in no way
         affect the full right to require such performance at any time
         thereafter. Waiver by either party of a breach of any obligation
         hereunder shall not constitute a waiver of any succeeding breach of the
         same obligation. Failure of either party to exercise any of its rights
         provided herein shall not constitute a waiver of such right.

15.      GOVERNING LAW. The validity, interpretation, construction and
         performance of this Agreement shall be governed by the laws of the
         State of Michigan without giving effect to any conflicts of laws rules.

16.      PAYMENTS NET OF TAXES. Except as otherwise provided in Section 6
         herein, any payments provided for herein which are subject to Federal,
         State local or other governmental tax or other withholding requirements
         or obligations, shall have such amounts withheld prior to payment, and
         the Company shall be considered to have fully satisfied its obligation
         hereunder by making such payments to you net of and after deduction for
         all applicable withholding obligations.

                                       21

<PAGE>

17.      CAPACITY OF PARTIES. The parties hereto warrant that they have the
         capacity and authority to execute this Agreement.

18.      VALIDITY. The invalidity or unenforceability of any provision of this
         Agreement shall not, at the option of the party for whose benefit such
         provision was intended, affect the validity or enforceability of any
         other provision of the Agreement, which shall remain in full force and
         effect.

19.      COUNTERPARTS. This Agreement may be executed in several counterparts,
         each of which shall be deemed to be an original but all of which
         together will constitute one and the same instrument.

20.      ENTIRE AGREEMENT. This Agreement and any attachments hereto, contain
         the entire agreement by the parties with respect to the matters covered
         herein and supersede any prior agreement (including without limitation
         any prior employment agreement), condition, practice, custom, usage and
         obligation with respect to such matters insofar as any such prior
         agreement, condition, practice, custom, usage or obligation might have
         given rise to any enforceable right. No agreements, understandings or
         representations, oral or otherwise, express or implied, with respect to
         the subject matter hereof have been made by either party which are not
         expressly set forth in this Agreement.

21.      LEGAL FEES AND EXPENSES. It is the intent of the Company that you not
         be required to incur the expenses associated with the enforcement of
         your rights under this Agreement by litigation or other legal action
         because the cost and expense thereof would substantially detract from
         the benefits intended to be extended to you hereunder. Accordingly, if
         it should appear to you that the Company has failed to comply with any
         of its obligations under this Agreement or in the event that the
         Company or any other person takes any action to declare the Agreement
         void or unenforceable or institutes any litigation designed to deny, or
         to recover from you the benefits intended to be provided to you
         hereunder, the Company irrevocably authorizes you from time to time to
         retain counsel of your choice, at the expense of the Company as
         hereafter provided, to represent you in connection with the initiation
         or defense of any litigation or other legal action relating, thereto,
         whether by or against the Company or any Director, officer, shareholder
         or other person affiliated with the Company, in any jurisdiction.
         Notwithstanding any existing or prior attorney-client relationship
         between the Company and any such counsel, the Company irrevocably
         consents to your entering into an attorney-client relationship with
         such counsel, and in that connection the Company and you agree that a
         confidential relationship shall exist between you and such counsel. The
         Company shall pay or cause to be paid and be solely responsible for any
         and all attorneys' and related fees and expenses incurred by you (i) as
         a result of the Company's failure to perform this Agreement or any
         provision hereof or (ii) as a result of the Company or any person
         contesting the validity or enforceability of this Agreement or any
         provision hereof as aforesaid.

                                       22

<PAGE>

If this letter sets forth our agreement on the subject matter hereof, kindly
sign and return to the Company the enclosed copy of this letter which will then
constitute our agreement on this subject, effective on July 28, 2003 ("EFFECTIVE
DATE").

Sincerely,

LEAR CORPORATION

By:      /s/ Roger A. Jackson
   --------------------------------------------------
         ROGER A. JACKSON

ACCEPTED:

Agreed to this     6th    day of November 2003
               -----------

By:      /s/ Daniel A. Ninivaggi
   -----------------------------------------
         DANIEL A. NINIVAGGI

                                       23<PAGE>

                                                                   Exhibit 10.41

                                CREDIT AGREEMENT

                  CREDIT AGREEMENT dated as of August 22, 2003 among ALLIANCE
RESOURCE OPERATING PARTNERS, L.P., a Delaware limited partnership (the
"BORROWER"), the banks, financial institutions and other institutional lenders
listed on the signature pages hereof as the Initial Lenders (the "INITIAL
LENDERS"), the banks listed on the signature pages hereof as the Initial Issuing
Banks (the "INITIAL ISSUING BANKS") and the Swing Line Bank (as hereinafter
defined and together with the Initial Lenders and the Initial Issuing Banks, the
"INITIAL LENDER PARTIES"), JPMORGAN CHASE BANK ("JPMORGAN"), as paying agent
(together with any successor paying agent appointed pursuant to Article VII, the
"PAYING AGENT"), and CITICORP USA, INC. ("CITICORP") and JPMorgan, as
co-administrative agents (together with any successor administrative agent
appointed pursuant to Article VII, the "CO-ADMINISTRATIVE AGENTS" and, together
with the Paying Agent, the "AGENTS") for the Lender Parties (as hereinafter
defined), and Citigroup Global Markets Inc. and J.P. Morgan Securities, Inc., as
joint lead arrangers and joint bookrunners.

                             PRELIMINARY STATEMENT:

                  (1)      On August 16, 1999, Alliance Resource GP, LLC
(together with its successors and permitted assigns as special general partner
of the Borrower, the "SPECIAL GENERAL PARTNER"), the special general partner of
the Borrower and of Alliance Resource Partners, L.P., a Delaware limited
partnership (the "MLP"), issued $180,000,000 of senior notes (the "SENIOR
NOTES") in a private placement pursuant to the Note Purchase Agreement (as
hereinafter defined). On that same date, the Borrower assumed the obligations of
the Special General Partner under the Note Purchase Agreement and under a
$100,000,000 credit agreement dated as of August 16, 1999 among the Special
General Partner, the banks, financial institutions and other institutional
lenders party thereto, the Paying Agent and the Co-Administrative Agents (the
"EXISTING FACILITY").

                  (2)      The Borrower has requested that, upon the Effective
Date (as hereinafter defined), the Lender Parties make available to the Borrower
a credit facility of up to $85,000,000 to refinance certain Existing Debt (as
hereinafter defined) of the Borrower, including the Existing Facility, and to
pay transaction fees and expenses in connection herewith, and that, from time to
time, the Lender Parties lend to the Borrower and issue Letters of Credit for
the account of the Borrower, to provide working capital for the Borrower and its
Subsidiaries, to pay cash distributions to the holders of the MLP Units (as
hereinafter defined) and for other general business purposes of the Borrower and
its Subsidiaries (including, without limitation, acquisitions and capital
expenditures). The Lender Parties have indicated their willingness to agree to
lend such amounts on the terms and conditions of this Agreement.

                  NOW, THEREFORE, in consideration of the premises and of the
mutual covenants and agreements contained herein, the parties hereto hereby
agree as follows:

                                       1
<PAGE>

                                    ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

         Section 1.01   SECTION 1.01. Certain Defined Terms.

                    As used in this Agreement, the following terms shall have
the following meanings (such meanings to be equally applicable to both the
singular and plural forms of the terms defined):

                  "ACCEPTABLE BANK" means (a) any bank or trust company (i)
         which is organized under the laws of the United States of America or
         any State thereof, (ii) which has capital, surplus and undivided
         profits aggregating at least $500,000,000, and (iii) (A) whose
         long-term unsecured debt obligations (or the long-term unsecured debt
         obligations of the holding company owning all of the capital stock of
         such bank or trust company) shall have been given a rating of "AA-" or
         better by S&P, "Aa3" or better by Moody's or an equivalent rating by
         any other credit rating agency of recognized national standing or (B)
         the commercial paper or other short-term unsecured debt obligations of
         which (or the short-term unsecured debt obligations of the holding
         company owning all of the capital stock of such bank or trust company)
         shall have been given a rating of "Al " or better by S&P or "Prime 1"
         or better by Moody's or an equivalent rating by any other credit rating
         agency of recognized national standing or (b) any Lender Party.

                  "ACCEPTABLE BROKER-DEALER" means any Person other than a
         natural person (a) which is registered as a broker or dealer pursuant
         to the Exchange Act and (b) whose long-term unsecured debt obligations
         shall have been given a rating of "AA-" or better by S&P, "Aa3" or
         better by Moody's or an equivalent rating by any other credit rating
         agency of recognized national standing.

                  "ADVANCE" means a Revolving Credit Advance, a Swing Line
         Advance or a Letter of Credit Advance.

                  "AFFILIATE" means, as to any Person, any other Person that,
         directly or indirectly, controls, is controlled by or is under common
         control with such Person or is a director or officer of such Person.
         For purposes of this definition, the term "control" (including the
         terms "controlling", "controlled by" and "under common control with")
         of a Person means the possession, direct or indirect, of the power to
         vote 10% or more of the Voting Stock of such Person or to direct or
         cause the direction of the management and policies of such Person,
         whether through the ownership of Voting Stock, by contract or
         otherwise. Unless the context otherwise clearly requires, any reference
         to an "Affiliate" is a reference to an Affiliate of the Borrower;
         provided, however, the Borrower shall not be an Affiliate of any
         Restricted Subsidiary and no Restricted Subsidiary shall be an
         Affiliate of the Borrower or any Restricted Subsidiary.

                  "AGENTS" has the meaning specified in the recital of parties
         to this Agreement.

                                       2
<PAGE>

                  "APPLICABLE LENDING OFFICE" means, with respect to each Lender
         Party, such Lender Party's Domestic Lending Office in the case of a
         Base Rate Advance and such Lender Party's Eurodollar Lending Office in
         the case of a Eurodollar Rate Advance.

                  "APPLICABLE MARGIN" means a percentage per annum determined by
         reference to the Consolidated Debt to Consolidated Cash Flow Ratio as
         set forth below:

<TABLE>
<CAPTION>
   Consolidated Debt to
Consolidated Cash Flow Ratio      Base Rate Advances        Eurodollar Rate Advances
----------------------------      ------------------        ------------------------
<S>                               <C>                       <C>
Level I
2.50:1.0 or greater                   0.75%                       1.75%

Level II
1.75:1.0 or greater,                  0.50%                       1.50%
but less than 2.50:1.0

Level III
less than 1.75:1.0                    0.25%                       1.25%
</TABLE>

         The Applicable Margin for each Advance shall be determined by reference
         to the Consolidated Debt to Consolidated Cash Flow Ratio in effect from
         time to time, which ratio shall be determined by reference to the
         financial statements most recently delivered in accordance with Section
         5.03(b) or (c), as the case may be; provided, however, that the
         Applicable Margin shall be at Level I for so long as the Borrower has
         not submitted to the Paying Agent the financial statements as and when
         required under Section 5.03(b) or (c), as the case may be.

                  "APPLICABLE PERCENTAGE" means a percentage per annum
         determined by reference to the Consolidated Debt to Consolidated Cash
         Flow Ratio as set forth below:

<TABLE>
<CAPTION>
    Consolidated Debt to
Consolidated Cash  Flow Ratio       Applicable Percentage
-----------------------------       ---------------------
<S>                                 <C>
Level I
2.50:1.0 or greater                          0.50%

Level II
1.75:1.0 or greater,                         0.40%
but less than 2.50:1.0

Level III
less than 1.75:1.0                           0.35%
</TABLE>

         The Applicable Percentage shall be determined by reference to the
         Consolidated Debt to Consolidated Cash Flow Ratio, in effect from time
         to time, which ratio shall be determined by reference to the financial
         statements most recently delivered in accordance with Section 5.03(b)
         or (c), as the case may be; provided, however, that the Applicable
         Margin shall be at Level I for so long as the Borrower has not
         submitted to the Paying

                                       3
<PAGE>

         Agent the financial statements as and when required under Section
         5.03(b) or (c), as the case may be.

                  "APPROPRIATE LENDER" means, at any time, with respect to (a)
         the Revolving Credit Facility, a Lender that has a Commitment with
         respect to such Facility at such time, (b) the Letter of Credit
         Facility, (i) any Issuing Bank and (ii) to the extent the other Lenders
         have made Letter of Credit Advances pursuant to Section 2.03(c) that
         are outstanding at such time, each such other Lender, and (c) the Swing
         Line Facility, (i) the Swing Line Bank and (ii) to the extent the
         Lenders have made Swing Line Advances pursuant to Section 2.02(b) that
         are outstanding at such time, each such other Lender.

                  "ASSET ACQUISITION" means (a) an Investment by the Borrower or
         any Restricted Subsidiary in any other Person pursuant to which such
         Person shall become a Restricted Subsidiary or shall be merged with or
         into the Borrower or any Restricted Subsidiary, (b) the acquisition by
         the Borrower or any Restricted Subsidiary of the assets of any Person
         (other than a Restricted Subsidiary) which constitute all or
         substantially all of the assets of such Person or (c) the acquisition
         by the Borrower or any Restricted Subsidiary of any division or line of
         business of any Person (other than a Restricted Subsidiary).

                  "ASSIGNMENT AND ACCEPTANCE" means an assignment and acceptance
         entered into by a Lender Party and an Eligible Assignee, and accepted
         by the Paying Agent, in accordance with Section 8.07 and in
         substantially the form of Exhibit C hereto.

                  "AVAILABLE AMOUNT" of any Letter of Credit means, at any time,
         the maximum amount available to be drawn under such Letter of Credit at
         such time (assuming compliance at such time with all conditions to
         drawing).

                  "BASE RATE" means a fluctuating interest rate per annum in
         effect from time to time, which rate per annum shall at all times be
         equal to the higher of:

                           (a)      the rate of interest announced publicly by
                  JPMorgan Chase Bank in New York, New York, from time to time,
                  as its prime rate; and

                           (b)      1/2 of 1% per annum above the Federal Funds
                  Rate.

                  "BASE RATE ADVANCE" means an Advance that bears interest as
         provided in Section 2.07(a)(i).

                  "BORROWER" has the meaning specified in the recital of parties
         to this Agreement.

                  "BORROWER'S ACCOUNT" means the account of the Borrower
         maintained by the Borrower with JPMorgan at its office at 270 Park
         Avenue, New York, New York 10017, Account No. 323138721, or such other
         account as the Borrower shall specify in writing to the Paying Agent.

                  "BORROWING" means a Revolving Credit Borrowing or a Swing Line
         Borrowing.

                                       4
<PAGE>

                  "BUSINESS DAY" means a day of the year on which banks are not
         required or authorized by law to close in New York City and, if the
         applicable Business Day relates to any Eurodollar Rate Advances, on
         which dealings are carried on in the London interbank market.

                  "BUSINESS PLAN" means a rolling five year business plan for
         the Borrower which shall include, without limitation, forecasts
         prepared by management of the Borrower, in form satisfactory to the
         Co-Administrative Agents, of balance sheets, income statements and cash
         flow statements on an annual basis for each of the next five Fiscal
         Years and which shall set forth (without limitation) mine development
         plans, an analysis of business outlook for the term of the Facilities
         in form and scope reasonably satisfactory to the Co-Administrative
         Agents, capital expenditures, coal reserve profiles, property
         acquisitions, production levels and other similar items, which Business
         Plan may be revised by the Borrower from time to time to reflect
         changes in operating and market conditions.

                  "CAPITAL EXPENDITURES" means, for any Person for any period,
         the sum of, without duplication, all expenditures made, directly or
         indirectly, by such Person or any of its Subsidiaries during such
         period for equipment, fixed assets, real property or improvements, or
         for replacements or substitutions therefor or additions thereto, that
         have been or should be, in accordance with GAAP, reflected as additions
         to property, plant or equipment on a Consolidated balance sheet of such
         Person or have a useful life of more than one year; provided that, for
         the avoidance of doubt, Capital Expenditures shall not include the
         initial purchase price paid or incurred by any Person in respect of any
         Asset Acquisition permitted by Section 5.02(d) hereof (including the
         purchase price allocated or attributable to any equipment, fixed
         assets, real property or improvements so acquired in connection with
         such Asset Acquisition).

                  "CAPITAL LEASE" means, at any time, a lease with respect to
         which the lessee is required concurrently to recognize the acquisition
         of an asset and the incurrence of a liability in accordance with GAAP.

                  "CAPITAL LEASE OBLIGATION" means, with respect to any Person
         and a Capital Lease, the amount of the obligation of such Person as the
         lessee under such Capital Lease which would, in accordance with GAAP,
         appear as a liability on a balance sheet of such Person.

                  "CAPITAL STOCK" shall mean, with respect to any Person, any
         and all shares, units representing interests, participations, rights in
         or other equivalents (however designated) of such Person's capital
         stock, including, (a) with respect to partnerships, partnership
         interests (whether general or limited) and any other interest or
         participation that confers upon a Person the right to receive a share
         of the profits and losses of, or distributions of assets of, such
         partnership, (b) with respect to limited liability companies, member
         interests, and (c) with respect to any Person, any rights (other than
         debt securities convertible into capital stock), warrants or options
         exchangeable for or convertible into such capital stock.

                                       5
<PAGE>

                  "CASH DISTRIBUTION ADVANCE" means any Advance the proceeds of
         which is used to make a cash distribution to holders of the MLP Units.

                  "CASH EQUIVALENTS" means any of the following, to the extent
         owned by the Borrower or any of its Restricted Subsidiaries free and
         clear of all Liens and, unless otherwise specified below, having a
         maturity of not greater than two years from the date of acquisition
         thereof:

                           (a)      United States Governmental Securities
                  maturing within one year from the date of acquisition;

                           (b) certificates of deposit, banker's acceptances or
                  other bank instruments maturing within one year from the date
                  of acquisition thereof, issued by Acceptable Banks;

                           (c)      Repurchase Agreements;

                           (d) obligations of any state of the United States of
                  America, or any municipality of any such state, in each case
                  rated "AA" or better by S&P, "Aa2" or better by Moody's or an
                  equivalent rating by any other credit rating agency of
                  recognized national standing; provided that such obligations
                  mature within one year from the date of acquisition thereof;
                  and

                           (e) commercial paper maturing in 270 days or less
                  from the date of issuance which, at the time of acquisition by
                  the Borrower or any Restricted Subsidiary, is rated A-l or
                  better by S&P or P1 or better by Moody's or an equivalent
                  rating by any other credit rating agency of recognized
                  national standing.

                  "CERCLA" means the Comprehensive Environmental Response,
         Compensation and Liability Act of 1980, as amended from time to time.

                  "CERCLIS" means the Comprehensive Environmental Response,
         Compensation and Liability Information System maintained by the U.S.
         Environmental Protection Agency.

                  "CHANGE OF CONTROL" means the occurrence of either of the
         following: (a) the Management Investors shall at any time for any
         reason cease collectively to own, directly or indirectly, at least 51%
         of the managing ownership interest of the sole or managing general
         partner, as the case may be, of the Borrower or (b) the managing
         general partner of the Borrower shall at any time for any reason cease
         to be the sole or managing general partner of the MLP.

                  "CITICORP" has the meaning specified in the recital of parties
         to this Agreement.

                  "CO-ADMINISTRATIVE AGENTS" has the meaning specified in the
         recital of parties to this Agreement.

                                       6
<PAGE>

                  "COMMITMENT" means a Revolving Credit Commitment, a Swing Line
         Commitment or a Letter of Credit Commitment.

                  "CONFIDENTIAL INFORMATION" means information that any Loan
         Party furnishes to any Agent or any Lender Party as confidential;
         provided, however, that such term does not include any such information
         that is or becomes generally available to the public or that is or
         becomes available to such Agent or such Lender Party from a source
         other than the Loan Parties (it being understood that except as set
         forth in the proviso, all information that any Loan Party submits to
         any Agent or any Lender Party is confidential).

                  "CONSOLIDATED" refers to the consolidation of accounts in
         accordance with GAAP.

                  "CONSOLIDATED CASH FLOW" means, as of any date of
         determination for any applicable period, the excess, if any, of (a) the
         sum of, without duplication, the amounts for such period, taken as a
         single accounting period, of (i) Consolidated Net Income for such
         period, plus (ii) to the extent deducted in the determination of
         Consolidated Net Income for such period, without duplication, (A)
         Consolidated Non-Cash Charges, (B) Consolidated Interest Expense and
         (C) Consolidated Income Tax Expense, over (b) the sum of, without
         duplication, the amounts for such period, taken as a single accounting
         period, of (i) any non-cash items increasing Consolidated Net Income
         for such period to the extent that such items constitute reversals of
         Consolidated Non-Cash Charges for a previous period and which were
         included in the computation of Consolidated Cash Flow for such previous
         period pursuant to the provisions of the preceding clause (a) and (ii)
         any cash charges for such period to the extent that such charges
         constituted non-cash items for a previous period and to the extent such
         charges are not otherwise included in the determination of Consolidated
         Net Income; provided that in calculating Consolidated Cash Flow for any
         such period, (1) full effect shall be given to the proviso to the
         definition of "Consolidated Interest Expense" set forth below and (2)
         Consolidated Cash Flow shall be calculated after giving effect on a pro
         forma basis for such period, in all respects in accordance with GAAP,
         to any Transfer or Asset Acquisitions (including, without limitation
         any Asset Acquisition by the Borrower or any Restricted Subsidiary
         giving rise to the need to determine Consolidated Cash Flow as a result
         of the Borrower or one of its Restricted Subsidiaries (including any
         Person that becomes a Restricted Subsidiary as result of any such Asset
         Acquisition) incurring, assuming or otherwise becoming liable for any
         Debt) occurring during the period commencing on the first day of such
         period to and including the date of the transaction, as if such
         Transfer or Asset Acquisition occurred on the first day of such period.

                  "CONSOLIDATED DEBT" means, as of any date of determination,
         the aggregate outstanding principal amount of all Debt of the Borrower
         and its Restricted Subsidiaries outstanding on such date, after
         eliminating all offsetting debits and credits between the Borrower and
         its Restricted Subsidiaries and all other items required to be
         eliminated in the course of the preparation of consolidated financial
         statements of the Borrower and its Restricted Subsidiaries in
         accordance with GAAP.

                                       7

<PAGE>

                  "CONSOLIDATED DEBT TO CONSOLIDATED CASH FLOW RATIO" means, at
         any date of determination, the ratio of Consolidated Debt of the
         Borrower and its Restricted Subsidiaries as at the end of the most
         recently ended fiscal quarter of the Borrower for which financial
         statements are required to be delivered to the Lender Parties pursuant
         to Section 5.03(b) or (c), as the case may be, to Consolidated Cash
         Flow of the Borrower and its Restricted Subsidiaries for such fiscal
         quarter and the immediately preceding three fiscal quarters.

                  "CONSOLIDATED INCOME TAX EXPENSE" means, with respect to any
         period, all provisions for Federal, state, local and foreign income
         taxes of the Borrower and its Restricted Subsidiaries for such period
         as determined on a consolidated basis in accordance with GAAP.

                  "CONSOLIDATED INTEREST EXPENSE" means, as of any date of
         determination for any applicable period, the sum (without duplication)
         of the following (in each case, eliminating all offsetting debits and
         credits between the Borrower and its Restricted Subsidiaries and all
         other items required to be eliminated in the course of the preparation
         of consolidated financial statements of the Borrower and its Restricted
         Subsidiaries in accordance with GAAP): (a) all interest in respect of
         Debt of the Borrower and its Restricted Subsidiaries whether paid or
         accrued (including non-cash interest payments and imputed interest on
         Capital Lease Obligations) deducted in determining Consolidated Net
         Income for such period, and (b) all debt discount (but not expense)
         amortized or required to be amortized in the determination of
         Consolidated Net Income for such period.

                  "CONSOLIDATED NET INCOME" means, with reference to any period,
         the net income (or loss) of the Borrower and its Restricted
         Subsidiaries for such period (taken as a cumulative whole), as
         determined in accordance with GAAP; provided that there shall be
         excluded:

                           (a)      the income (or loss) of any Person accrued
                  prior to the date it becomes a Subsidiary or is merged into or
                  consolidated with the Borrower or a Subsidiary, and the income
                  (or loss) of any Person, substantially all of the assets of
                  which have been acquired in any manner, realized by such other
                  Person prior to the date of acquisition,

                           (b)      the income (or loss) of any Person (other
                  than a Restricted Subsidiary) in which the Borrower or any
                  Restricted Subsidiary has an ownership interest, except to the
                  extent that any such income has been actually received by the
                  Borrower or such Restricted Subsidiary in the form of cash
                  dividends or similar cash distributions,

                           (c)      the undistributed earnings of any Restricted
                  Subsidiary to the extent that the declaration or payment of
                  dividends or similar distributions by such Restricted
                  Subsidiary is not at the time permitted by the terms of its
                  charter or any agreement, instrument, judgment, decree, order,
                  statute, rule or governmental regulation applicable to such
                  Restricted Subsidiary,

                                       8

<PAGE>

                           (d)      any aggregate net gain or loss during such
                  period arising from the sale, conversion, exchange or other
                  disposition of capital assets (such term to include, without
                  limitation, (i) all non-current assets, and, without
                  duplication, (ii) the following, whether or not current: all
                  fixed assets, whether tangible or intangible, all inventory
                  sold in conjunction with the disposition of fixed assets, and
                  all Securities), and

                           (e)      any net income or gain or loss during such
                  period from (i) any change in accounting principles in
                  accordance with GAAP, (ii) any prior period adjustments
                  resulting from any change in accounting principles in
                  accordance with GAAP, or (iii) any extraordinary or unusual
                  items.

                  "CONSOLIDATED NON-CASH CHARGES" means, with respect to the
         Borrower and its Restricted Subsidiaries for any period, the aggregate
         depreciation, depletion and amortization (other than amortization of
         debt discount and expense), the non-cash portion of advance royalties
         and any non-cash employee compensation expenses for such period, in
         each case, reducing Consolidated Net Income of the Borrower and its
         Restricted Subsidiaries for such period as determined on a consolidated
         basis in accordance with GAAP.

                  "CONSTITUTIVE DOCUMENTS" means, with respect to any Person,
         the certificate of incorporation or registration or formation
         (including, if applicable, certificate of change of name), articles of
         incorporation or association, memorandum of association, charter,
         bylaws, partnership agreement, trust agreement, joint venture
         agreement, limited liability company operating or members agreement,
         joint venture agreement or one or more similar agreements, instruments
         or documents constituting the organization or formation of such Person.

                  "CONVERSION", "CONVERT" and "CONVERTED" each refer to a
         conversion of Advances of one Type into Advances of the other Type
         pursuant to Section 2.07(d), 2.09 or 2.10.

                  "DEBT" means, with respect to any Person, without duplication,

                           (a)      its liabilities for borrowed money;

                           (b)      its liabilities for the deferred purchase
                  price of property acquired by such Person (excluding accounts
                  payable arising in the ordinary course of business but
                  including, without limitation, all liabilities created or
                  arising under any conditional sale or other title retention
                  agreement with respect to any such property);

                           (c)      its Capital Lease Obligations;

                           (d)      all liabilities secured by any Lien with
                  respect to any property owned by such Person (whether or not
                  it has assumed or otherwise become liable for such
                  liabilities);

                                       9

<PAGE>

                           (e)      all its liabilities in respect of letters of
                  credit or instruments serving a similar function issued or
                  accepted for its account by banks or other financial
                  institutions (whether or not representing obligations for
                  borrowed money), other than any thereof incurred in the
                  ordinary course of business of such Person and which are
                  issued (i) to support such Person's obligations in respect of
                  workmen's compensation, unemployment insurance or reclamation
                  laws, the payment of retirement benefits or performance
                  guarantees relating to coal deliveries or insurance
                  deductibles and aggregating no more than $10,000,000 at any
                  time outstanding for all of the foregoing or (ii) in respect
                  of current trade payables of such Person;

                           (f)      Swaps of such Person, to the extent required
                  to be reflected on a balance sheet of such Person prepared as
                  of any date of determination in accordance with GAAP;

                           (g)      Preferred Stock of Restricted Subsidiaries
                  owned by Persons other than the Borrower, a Subsidiary
                  Guarantor or a Wholly Owned Restricted Subsidiary; and

                           (h)      any Guaranty of such Person with respect to
                  liabilities of a type described in any of clauses (a) through
                  (g) hereof.

Debt of any Person shall include all obligations of such Person of the character
described in clauses (a) through (h) to the extent such Person remains legally
liable in respect thereof notwithstanding that any such obligation is deemed to
be extinguished under GAAP.

                  "DEFAULT" means any Event of Default or any event that would
constitute an Event of Default but for the requirement that notice be given or
time elapse or both.

                  "DEFAULTED ADVANCE" means, with respect to any Lender Party at
any time, the portion of any Advance required to be made by such Lender Party to
the Borrower pursuant to Section 2.01 or 2.02 at or prior to such time that has
not been made by such Lender Party or by the Paying Agent for the account of
such Lender Party pursuant to Section 2.02(e) as of such time. In the event that
a portion of a Defaulted Advance shall be deemed made pursuant to Section
2.15(a), the remaining portion of such Defaulted Advance shall be considered a
Defaulted Advance originally required to be made pursuant to Section 2.01 on the
same date as the Defaulted Advance so deemed made in part.

                  "DEFAULTED AMOUNT" means, with respect to any Lender Party at
any time, any amount required to be paid by such Lender Party to any Agent or
any other Lender Party hereunder or under any other Loan Document at or prior to
such time that has not been so paid as of such time, including, without
limitation, any amount required to be paid by such Lender Party to (a) the Swing
Line Bank pursuant to Section 2.02(b) to purchase a portion of a Swing Line
Advance made by the Swing Line Bank, (b) any Issuing Bank pursuant to Section
2.03(c) to purchase a portion of the Letter of Credit Advances made

                                       10

<PAGE>

         by such Issuing Bank, (c) the Paying Agent pursuant to Section 2.02(e)
         to reimburse the Paying Agent for the amount of any Advance made by the
         Paying Agent for the account of such Lender Party, (d) any other Lender
         Party pursuant to Section 2.13 to purchase any participation in
         Advances owing to such other Lender Party and (e) any Agent or any
         Issuing Bank pursuant to Section 7.05 to reimburse such Agent or such
         Issuing Bank for such Lender Party's ratable share of any amount
         required to be paid by the Lender Parties to such Agent or such Issuing
         Bank as provided therein. In the event that a portion of a Defaulted
         Amount shall be deemed paid pursuant to Section 2.15(b), the remaining
         portion of such Defaulted Amount shall be considered a Defaulted Amount
         originally required to be paid hereunder or under any other Loan
         Document on the same date as the Defaulted Amount so deemed paid in
         part.

                  "DEFAULTING LENDER" means, at any time, any Lender Party that,
         at such time (a) owes a Defaulted Advance or a Defaulted Amount or (b)
         shall take any action or be the subject of any action or proceeding of
         a type described in Section 6.01(f).

                  "DISCLOSED LITIGATION" has the meaning specified in Section
         3.01(e).

                  "DOMESTIC LENDING OFFICE" means, with respect to any Lender
         Party, the office of such Lender Party specified as its "Domestic
         Lending Office" opposite its name on Schedule I hereto or in the
         Assignment and Acceptance pursuant to which it became a Lender Party,
         as the case may be, or such other office of such Lender Party as such
         Lender Party may from time to time specify to the Borrower and the
         Paying Agent.

                  "DOMESTIC SUBSIDIARY" means any Subsidiary other than a
         Foreign Subsidiary.

                  "EFFECTIVE DATE" means the first date on which the conditions
         set forth in Article III shall have been satisfied.

                  "ELIGIBLE ASSIGNEE" means (a) with respect to any Facility
         (other than the Letter of Credit Facility) (i) a Lender; (ii) an
         Affiliate of a Lender Party that qualifies under clause (iii), (iv),
         (v), or (vi) of this clause (a); (iii) a commercial bank organized
         under the laws of the United States, or any state thereof, and having
         total assets in excess of $1,000,000,000; (iv) a commercial bank
         organized under the laws of any other country that is a member of the
         OECD, or a political subdivision of any such country, and having total
         assets in excess of $1,000,000,000; provided that such bank is acting
         through a branch or agency located in the country in which it is
         organized or another country which is also a member of the OECD; (v)
         the central bank of any country that is a member of the OECD; or (vi)
         any other financial institution or Person approved by the Paying Agent
         and, unless a Default has occurred and is continuing at the time any
         assignment is effected pursuant to Section 8.07, the Borrower (which
         approvals shall not be unreasonably withheld or delayed) and (b) with
         respect to the Letter of Credit Facility, a Person that is an Eligible
         Assignee under subclause (iii) or (iv) of clause (a) of this definition
         and is approved by the Paying Agent and, unless a Default has occurred
         and is continuing at the time any assignment is effected pursuant to
         Section 8.07, the Borrower, such approval not to be unreasonably
         withheld or delayed; provided, however, that neither any Loan Party nor
         any Affiliate of a Loan Party, nor any competitor, or Affiliate

                                       11

<PAGE>

         of a competitor, of the Borrower shall qualify as an Eligible Assignee
         under this definition.

                  "ENVIRONMENTAL ACTION" means any action, suit, demand, demand
         letter, claim, notice of non-compliance or violation, notice of
         liability or potential liability, investigation, proceeding, consent
         order or consent agreement relating in any way to any Environmental
         Law, any Environmental Permit or Hazardous Material or arising from
         alleged injury or threat to health, safety or the environment,
         including, without limitation, (a) by any governmental or regulatory
         authority for enforcement, cleanup, removal, response, remedial or
         other actions or damages and (b) by any governmental or regulatory
         authority or third party for damages, contribution, indemnification,
         cost recovery, compensation or injunctive relief.

                  "ENVIRONMENTAL LAW" means any Federal, state, local or foreign
         statute, law, ordinance, rule, regulation, code, order, writ, judgment,
         injunction, decree or judicial or agency interpretation, policy or
         guidance relating to pollution or protection of the environment,
         health, safety or natural resources, including, without limitation,
         those relating to the use, handling, transportation, treatment,
         storage, disposal, release or discharge of Hazardous Materials.

                  "ENVIRONMENTAL PERMIT" means any permit, approval,
         identification number, license or other authorization required under
         any Environmental Law.

                  "ERISA" means the Employee Retirement Income Security Act of
         1974, as amended from time to time, and the regulations promulgated and
         rulings issued thereunder.

                  "ERISA AFFILIATE" means any Person that for purposes of Title
         IV of ERISA is a member of the controlled group of any Loan Party, or
         under common control with any Loan Party, within the meaning of Section
         414 of the Internal Revenue Code.

                  "ERISA EVENT" means (a)(i) the occurrence of a reportable
         event, within the meaning of Section 4043 of ERISA, with respect to any
         Plan unless the 30-day notice requirement with respect to such event
         has been waived by the PBGC or (ii) the requirements of Section 4043(b)
         of ERISA apply with respect to a contributing sponsor, as defined in
         Section 4001(a)(13) of ERISA, of a Plan, and an event described in
         paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is
         reasonably expected to occur with respect to such Plan within the
         following 30 days; (b) the application for a minimum funding waiver
         with respect to a Plan; (c) the provision by the administrator of any
         Plan of a notice of intent to terminate such Plan, pursuant to Section
         4041(a)(2) of ERISA (including any such notice with respect to a plan
         amendment referred to in Section 4041(e) of ERISA); (d) the cessation
         of operations at a facility of any Loan Party or any ERISA Affiliate in
         the circumstances described in Section 4062(e) of ERISA; (e) the
         withdrawal by any Loan Party or any ERISA Affiliate from a Multiple
         Employer Plan during a plan year for which it was a substantial
         employer, as defined in Section 4001(a)(2) of ERISA; (f) the conditions
         for imposition of a lien under Section 302(f) of ERISA shall have been
         met with respect to any Plan;

                                       12

<PAGE>

         (g) the adoption of an amendment to a Plan requiring the provision of
         security to such Plan pursuant to Section 307 of ERISA; or (h) the
         institution by the PBGC of proceedings to terminate a Plan pursuant to
         Section 4042 of ERISA, or the occurrence of any event or condition
         described in Section 4042 of ERISA that constitutes grounds for the
         termination of, or the appointment of a trustee to administer, such
         Plan.

                  "EUROCURRENCY LIABILITIES" has the meaning specified in
         Regulation D of the Board of Governors of the Federal Reserve System,
         as in effect from time to time.

                  "EURODOLLAR LENDING OFFICE" means, with respect to any Lender
         Party, the office of such Lender Party specified as its "Eurodollar
         Lending Office" opposite its name on Schedule I hereto or in the
         Assignment and Acceptance pursuant to which it became a Lender Party
         (or, if no such office is specified, its Domestic Lending Office), or
         such other office of such Lender Party as such Lender Party may from
         time to time specify to the Borrower and the Paying Agent.

                  "EURODOLLAR RATE" means, for any Interest Period for all
         Eurodollar Rate Advances comprising part of the same Borrowing, an
         interest rate per annum equal to the rate per annum obtained by
         dividing (a) (i) the rate per annum (rounded upwards, if necessary, to
         the nearest 1/100 of 1%) appearing on Telerate Page 3750 (or any
         successor page) as the London interbank offered rate for deposits in
         U.S. dollars at 11:00 A.M. (London time) two Business Days before the
         first day of such Interest Period for a period equal to such Interest
         Period (provided that, if for any reason such rate is not available,
         the term "Eurodollar Rate" shall mean, for any Interest Period for all
         Eurodollar Rate Advances comprising part of the same Borrowing, the
         rate per annum (rounded upwards, if necessary, to the nearest 1/100 of
         1%) appearing on Reuters Screen LIBO Page as the London interbank
         offered rate for deposits in Dollars at approximately 11:00 A.M.
         (London time) two Business Days prior to the first day of such Interest
         Period for a term comparable to such Interest Period; provided,
         however, if more than one rate is specified on Reuters Screen LIBO
         Page, the applicable rate shall be the arithmetic mean of all such
         rates) by (ii) a percentage equal to 100% minus the Eurodollar Rate
         Reserve Percentage for such Interest Period or (b) upon 3 Business
         Days' prior written request by the Borrower to the Paying Agent, (i)
         the average (rounded upward to the nearest whole multiple of 1/16 of 1%
         per annum, if such average is not such a multiple) of the rate per
         annum at which deposits in U.S. dollars are offered by the principal
         office of each of the Reference Banks in London, England to prime banks
         in the London interbank market at 11:00 A.M. (London time) two Business
         Days before the first day of such Interest Period in an amount
         substantially equal to such Reference Bank's Eurodollar Rate Advance
         comprising part of such Borrowing to be outstanding during such
         Interest Period (or, if such Reference Bank shall not have such a
         Eurodollar Rate Advance, $1,000,000) and for a period equal to such
         Interest Period by (ii) a percentage equal to 100% minus the Eurodollar
         Rate Reserve Percentage for such Interest Period. The Eurodollar Rate
         for any Interest Period for each Eurodollar Rate Advance comprising
         part of the same Borrowing shall be determined by the Paying Agent on
         the basis of applicable rates furnished to and received by the Paying
         Agent from the Reference Banks two Business Days before the first day
         of such Interest Period, subject, however, to the provisions of Section
         2.07.

                                       13

<PAGE>

                  "EURODOLLAR RATE ADVANCE" means an Advance that bears interest
         as provided in Section 2.07(a)(ii).

                  "EURODOLLAR RATE RESERVE PERCENTAGE" for any Interest Period
         for all Eurodollar Rate Advances comprising part of the same Borrowing
         means the reserve percentage applicable two Business Days before the
         first day of such Interest Period under regulations issued from time to
         time by the Board of Governors of the Federal Reserve System (or any
         successor) for determining the maximum reserve requirement (including,
         without limitation, any emergency, supplemental or other marginal
         reserve requirement) for a member bank of the Federal Reserve System in
         New York City with respect to liabilities or assets consisting of or
         including Eurocurrency Liabilities (or with respect to any other
         category of liabilities that includes deposits by reference to which
         the interest rate on Eurodollar Rate Advances is determined) having a
         term equal to such Interest Period.

                  "EVENTS OF DEFAULT" has the meaning specified in Section 6.01.

                  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

                  "EXISTING DEBT" means Debt of each Loan Party and its
         Subsidiaries outstanding immediately before the occurrence of the
         Effective Date.

                  "EXISTING FACILITY" has the meaning specified in Preliminary
         Statement (1).

                  "EXISTING ISSUING BANK" means Bank of Oklahoma, N.A., in its
         capacity as an "Issuing Bank" under the Existing L/C Agreement.

                  "EXISTING L/C AGREEMENT" has the meaning specified in Section
         2.03(f).

                  "EXISTING LETTERS OF CREDIT" has the meaning specified in
         Section 2.03(f).

                  "FACILITY" means the Revolving Credit Facility, the Swing Line
         Facility or the Letter of Credit Facility.

                  "FEDERAL FUNDS RATE" means, for any period, a fluctuating
         interest rate per annum for each day during such period equal to the
         weighted average of the rates on overnight Federal funds transactions
         with members of the Federal Reserve System arranged by Federal funds
         brokers, as published for such day (or, if such day is not a Business
         Day, for the next preceding Business Day) by the Federal Reserve Bank
         of New York, or, if such rate is not so published for any day that is a
         Business Day, the average of the quotations for such day for such
         transactions received by the Paying Agent from three Federal funds
         brokers of recognized standing selected by it.

                  "FEE LETTER" means the fee letter dated July 16, 2003 between
         the Borrower and the Agents, as amended.

                  "FISCAL YEAR" means a fiscal year of the Borrower and its
         Consolidated Subsidiaries ending on December 31 in any calendar year.

                                       14

<PAGE>

                  "FOREIGN SUBSIDIARY" means a Subsidiary organized under the
         laws of a jurisdiction other than the United States or any State
         thereof or the District of Columbia.

                  "GAAP" has the meaning specified in Section 1.03.

                  "GENERAL PARTNER" means Alliance Resource Management GP, LLC,
         a Delaware limited liability company.

                  "GOVERNMENTAL AUTHORITY" means any nation or government, any
         state, province, city, municipal entity or other political subdivision
         thereof, and any governmental, executive, legislative, judicial,
         administrative or regulatory agency, department, authority,
         instrumentality, commission, board, bureau or similar body, whether
         federal, state, provincial, territorial, local or foreign.

                  "GOVERNMENTAL AUTHORIZATION" means any authorization,
         approval, consent, franchise, license, covenant, order, ruling, permit,
         certification, exemption, notice, declaration or similar right,
         undertaking or other action of, to or by, or any filing, qualification
         or registration with, any Governmental Authority.

                  "GREENFIELD PROJECT" means any mine development project
         involving the expenditure of greater than $5,000,000 for the
         development of mine infrastructure to access unmined reserves.

                  "GUARANTY" and, with correlative meaning, "GUARANTEED" means,
         with respect to any Person, any obligation (except the endorsement in
         the ordinary course of business of negotiable instruments for deposit
         or collection) of such Person guaranteeing or in effect guaranteeing
         any Debt of any other Person in any manner, whether directly or
         indirectly, including (without limitation) obligations incurred through
         an agreement, contingent or otherwise, by such Person:

                           (a)      to purchase such Debt or any property
                  constituting security therefor;

                           (b)      to advance or supply funds (i) for the
                  purchase or payment of such Debt, or (ii) to maintain any
                  working capital or other balance sheet condition or any income
                  statement condition of any other Person or otherwise to
                  advance or make available funds for the purchase or payment of
                  such Debt;

                           (c)      to lease properties or to purchase
                  properties or services primarily for the purpose of assuring
                  the owner of such Debt of the ability of any other Person to
                  make payment of the Debt; or

                           (d)      otherwise to assure the owner of such Debt
                  against loss in respect thereof.

         In any computation of the Debt of the obligor under any Guaranty, the
         Debt that is the subject of such Guaranty shall be assumed to be a
         direct obligation of such obligor. The amount of any Guaranty shall be
         equal to the outstanding amount of the Debt guaranteed,

                                       15

<PAGE>

         or such lesser amount to which the maximum exposure of such Person
         shall have been specifically limited.

                  "HAZARDOUS MATERIALS" means (a) petroleum or petroleum
         products, by-products or breakdown products, radioactive materials,
         asbestos-containing materials, polychlorinated biphenyls and radon gas
         and (b) any other chemicals, materials or substances designated,
         classified or regulated as hazardous or toxic or as a pollutant or
         contaminant under any Environmental Law.

                  "INDEMNIFIED COSTS" has the meaning specified in Section
         7.05(a).

                  "INDEMNIFIED PARTY" has the meaning specified in Section
         8.04(b).

                  "INFORMATION MEMORANDUM" means the information memorandum
         dated July 21, 2003 used by the Joint Arrangers in connection with the
         syndication of the Commitments.

                  "INITIAL EXTENSION OF CREDIT" means the earlier to occur of
         the initial Borrowing and the initial issuance of a Letter of Credit
         hereunder.

                  "INITIAL ISSUING BANKS" has the meaning specified in the
         recital of parties to this Agreement.

                  "INITIAL LENDER PARTIES" has the meaning specified in the
         recital of parties to this Agreement.

                  "INITIAL LENDERS" has the meaning specified in the recital of
         parties to this Agreement.

                  "INSUFFICIENCY" means, with respect to any Plan, the amount,
         if any, of its unfunded benefit liabilities, as defined in Section
         4001(a)(18) of ERISA.

                  "INTERCREDITOR AGREEMENT" has the meaning specified in Section
         3.01(a)(xv).

                  "INTEREST COVERAGE RATIO" means, at any date of determination,
         the ratio of (a) Consolidated Cash Flow to (b) Consolidated Interest
         Expense during the four consecutive fiscal quarters most recently ended
         for which financial statements are required to be delivered to the
         Lender Parties pursuant to Section 5.03(b) or (c), as the case may be.

                  "INTEREST PERIOD" means, for each Eurodollar Rate Advance
         comprising part of the same Borrowing, the period commencing on the
         date of such Eurodollar Rate Advance or the date of the Conversion of
         any Base Rate Advance into such Eurodollar Rate Advance, and ending on
         the last day of the period selected by the Borrower pursuant to the
         provisions below and, thereafter, each subsequent period commencing on
         the last day of the immediately preceding Interest Period and ending on
         the last day of the period selected by the Borrower pursuant to the
         provisions below. The duration of each such Interest Period shall be
         one, two, three or six or, if available to each Appropriate Lender,
         nine or twelve months, as the Borrower may, upon notice received by the
         Paying Agent

                                       16

<PAGE>

         not later than 12:00 noon (New York City time) on the third Business
         Day prior to the first day of such Interest Period, select; provided,
         however, that:

                           (a)      the Borrower may not select any Interest
                  Period with respect to any Eurodollar Rate Advance under a
                  Facility that ends after Termination Date;

                           (b)      Interest Periods commencing on the same date
                  for Eurodollar Rate Advances comprising part of the same
                  Borrowing shall be of the same duration;

                           (c)      whenever the last day of any Interest Period
                  would otherwise occur on a day other than a Business Day, the
                  last day of such Interest Period shall be extended to occur on
                  the next succeeding Business Day; provided, however, that, if
                  such extension would cause the last day of such Interest
                  Period to occur in the next following calendar month, the last
                  day of such Interest Period shall occur on the next preceding
                  Business Day; and

                           (d)      whenever the first day of any Interest
                  Period occurs on a day of an initial calendar month for which
                  there is no numerically corresponding day in the calendar
                  month that succeeds such initial calendar month by the number
                  of months equal to the number of months in such Interest
                  Period, such Interest Period shall end on the last Business
                  Day of such succeeding calendar month.

                  "INTERNAL REVENUE CODE" means the Internal Revenue Code of
         1986, as amended from time to time, and the regulations promulgated and
         rulings issued thereunder.

                  "INVENTORY" means inventory held for sale or lease in the
         ordinary course of business.

                  "INVESTMENT" means any investment, made in cash or by delivery
         of property, by the Borrower or any of its Restricted Subsidiaries (a)
         in any Person, whether by acquisition of stock, debt or other
         obligations or Security, or by loan, guaranty of any debt, advance,
         capital contribution or otherwise, or (b) in any property.

                  "ISSUING BANKS" means each Initial Issuing Bank, any other
         Lender approved as an Issuing Bank by the Paying Agent and any Eligible
         Assignee to which a Letter of Credit Commitment hereunder has been
         assigned pursuant to Section 8.07 so long as each such Lender or each
         such Eligible Assignee expressly agrees to perform in accordance with
         their terms all of the obligations that by the terms of this Agreement
         are required to be performed by it as an Issuing Bank and notifies the
         Paying Agent of its Applicable Lending Office and the amount of its
         Letter of Credit Commitment (which information shall be recorded by the
         Paying Agent in the Register) pursuant to, in the case of a Lender, an
         agreement in form and substance satisfactory to the Paying Agent and,
         in the case of an Eligible Assignee, an Assignment and Acceptance
         substantially in the form of Exhibit C hereto, for so long as such
         Initial Issuing Bank, Lender or Eligible Assignee, as the case may be,
         shall have a Letter of Credit Commitment.

                  "JOINT ARRANGERS" means Citigroup Global Markets Inc. and J.P.
         Morgan Securities, Inc. and/or their respective Affiliates.

                                       17

<PAGE>

                  "JPMORGAN" has the meaning specified in the recital of parties
         to this Agreement.

                  "L/C DISBURSEMENT" shall mean a payment or disbursement made
         by any Issuing Bank pursuant to a Letter of Credit.

                  "L/C RELATED DOCUMENTS" has the meaning specified in Section
         2.04(c)(ii).

                  "LENDER PARTY" means any Lender, any Issuing Bank or the Swing
         Line Bank.

                  "LENDERS" means the Initial Lenders and each Person that shall
         become a Lender hereunder pursuant to Section 8.07 for so long as such
         Initial Lender or Person, as the case may be, shall be a party to this
         Agreement.

                  "LETTERS OF CREDIT" has the meaning specified in Section
         2.01(c).

                  "LETTER OF CREDIT ADVANCE" means an advance made by any
         Issuing Bank or any Lender pursuant to Section 2.03(c).

                  "LETTER OF CREDIT AGREEMENT" has the meaning specified in
         Section 2.03(a).

                  "LETTER OF CREDIT COMMITMENT" means, with respect to any
         Issuing Bank at any time, the amount set forth opposite such Issuing
         Bank's name on Schedule I hereto under the caption "Letter of Credit
         Commitment" or, if such Issuing Bank has entered into an Assignment and
         Acceptance, set forth for such Issuing Bank in the Register maintained
         by the Paying Agent pursuant to Section 8.07(d) as such Issuing Bank's
         "Letter of Credit Commitment", as such amount may be reduced at or
         prior to such time pursuant to Section 2.05.

                  "LETTER OF CREDIT FACILITY" means, at any time, an amount
         equal to the lesser of (a) the aggregate amount of the Issuing Banks'
         Letter of Credit Commitments at such time and (b) $30,000,000, as such
         amount may be reduced at or prior to such time pursuant to Section
         2.05.

                  "LIEN" means, with respect to any Person, any mortgage, lien,
         pledge, charge, security interest, production payment or other
         encumbrance, or any interest or title of any vendor, lessor, lender or
         other secured party to or of such Person under any conditional sale or
         other title retention agreement or Capital Lease, upon or with respect
         to any property or asset of such Person (including in the case of
         stock, stockholder agreements, voting trust agreements and all similar
         arrangements); provided, however, "Lien" shall not include any negative
         pledge nor any royalty interest or overriding royalty interest under
         any lease, sublease or other similar agreement entered into in the
         ordinary course of business.

                  "LOAN DOCUMENTS" means (a) this Agreement, (b) the Notes, (c)
         the Subsidiary Guaranty, (d) the Fee Letter, (e) the Intercreditor
         Agreement and (f) each Letter of Credit Agreement, in each case as
         amended.

                  "LOAN PARTIES" means the Borrower and the Subsidiary
         Guarantors.

                                       18

<PAGE>

                  "MANAGEMENT INVESTORS" means any of Alliance Management
         Holdings, LLC and/or AMH II, LLC, including the management, officers
         and/or directors who are shareholders and/or members of any of the
         foregoing.

                  "MARGIN STOCK" has the meaning specified in Regulation U.

                  "MATERIAL ADVERSE CHANGE" means any material adverse change in
         the business, operations, affairs, financial condition, assets or
         properties of the Borrower and its Restricted Subsidiaries, taken as a
         whole.

                  "MATERIAL ADVERSE EFFECT" means a material adverse effect on
         (a) the business, operations, affairs, financial condition, assets or
         properties of the Borrower and its Restricted Subsidiaries taken as a
         whole, (b) the ability of the Borrower to perform its payment
         obligations, its obligations under Article V or any other material
         obligations under any Loan Document to which it is a party, (c) the
         ability of any Subsidiary Guarantor to perform its payment obligations
         or other material obligations under the Subsidiary Guaranty, or (d) the
         validity or enforceability of any Loan Document.

                  "MLP" has the meaning specified in Preliminary Statement (1).

                  "MLP AGREEMENT" means the First Amended and Restated Agreement
         of Limited Partnership of the MLP, as amended after the date hereof, to
         the extent permitted under the Loan Documents.

                  "MLP UNITS" means the common units of the MLP.

                  "MOODY'S" means Moody's Investors Service, Inc.

                  "MULTIEMPLOYER PLAN" means a multiemployer plan, as defined in
         Section 4001(a)(3) of ERISA, to which any Loan Party or any ERISA
         Affiliate is making or accruing an obligation to make contributions, or
         has within any of the preceding five plan years made or accrued an
         obligation to make contributions.

                  "MULTIPLE EMPLOYER PLAN" means a single employer plan, as
         defined in Section 4001(a)(15) of ERISA, that (a) is maintained for
         employees of any Loan Party or any ERISA Affiliate and at least one
         Person other than the Loan Parties and the ERISA Affiliates or (b) was
         so maintained and in respect of which any Loan Party or any ERISA
         Affiliate could have liability under Section 4064 or 4069 of ERISA in
         the event such plan has been or were to be terminated.

                  "NOTE" means a promissory note of the Borrower payable to the
         order of any Lender, in substantially the form of Exhibit A hereto,
         evidencing the aggregate indebtedness of the Borrower to such Lender
         resulting from the Revolving Credit Advances, Letter of Credit Advances
         and Swing Line Advances made by such Lender, as amended.

                  "NOTE PURCHASE AGREEMENT" means the Note Purchase Agreement
         dated as of August 16, 1999 among the Borrower (as assignee of the
         Special General Partner) and

                                       19

<PAGE>

         the purchasers of the Senior Notes, pursuant to which the Senior Notes
         were issued, as amended after the date hereof, to the extent permitted
         under the Loan Documents.

                  "NOTICE OF BORROWING" has the meaning specified in Section
         2.02(a).

                  "NOTICE OF ISSUANCE" has the meaning specified in Section
         2.03(a).

                  "NOTICE OF RENEWAL" has the meaning specified in Section
         2.01(c).

                  "NOTICE OF SWING LINE BORROWING" has the meaning specified in
         Section 2.02(b).

                  "NOTICE OF TERMINATION" has the meaning specified in Section
         2.01(c).

                  "NPL" means the National Priorities List under CERCLA.

                  "OBLIGATION" means, as used in the Notes, the Solvency
         Certificates and the Subsidiary Guaranty, with respect to any Loan
         Party, any payment, performance or other obligation of such Loan Party
         of any kind under the Loan Documents, including, without limitation,
         any liability of such Loan Party on any claim, whether or not the right
         of any creditor to payment in respect of such claim is reduced to
         judgment, liquidated, unliquidated, fixed, absolute or contingent,
         direct or indirect, matured, disputed, undisputed, legal, equitable,
         secured or unsecured, and whether or not such claim is discharged,
         stayed or otherwise affected by any proceeding referred to in Section
         6.01(f), including without limitation, (a) the obligation to pay
         principal, interest, Letter of Credit commissions, charges, expenses,
         fees, attorneys' fees and disbursements, indemnities and other amounts
         payable by such Loan Party under any Loan Document and (b) the
         obligation of such Loan Party to reimburse any amount in respect of any
         of the foregoing that any Lender Party, in its sole discretion, may
         elect to pay or advance on behalf of such Loan Party.

                  "OECD" means the Organization for Economic Cooperation and
         Development.

                  "OPEN YEAR" has the meaning specified in Section 4.01(p)(ii).

                  "OTHER TAXES" has the meaning specified in Section 2.12(b).

                  "PARTNERSHIP AGREEMENT" means the partnership agreement of the
         Borrower, as amended in accordance with the terms of this Agreement.

                  "PAYING AGENT" has the meaning specified in the recital of
         parties to this Agreement.

                  "PAYING AGENT'S ACCOUNT" means the account of the Paying Agent
         maintained by the Paying Agent with JPMorgan at its office at 270 Park
         Avenue, New York, New York 10017, Account No. 323138721, or such other
         account as the Paying Agent shall specify in writing to the Lender
         Parties.

                  "PBGC" means the Pension Benefit Guaranty Corporation (or any
         successor).

                                       20

<PAGE>

                  "PERMITTED LIENS" means each of the following:

                           (a)      Liens for property taxes, assessments or
                  other governmental charges which are not yet due and payable
                  and delinquent or the validity of which is being contested in
                  good faith in compliance with Section 5.01(b);

                           (b)      statutory Liens of landlords and Liens of
                  carriers, warehousemen, mechanics, materialmen and other
                  similar Liens, in each case, incurred in the ordinary course
                  of business for sums not yet due and payable or the amount,
                  applicability or validity thereof is being contested by the
                  Borrower or such Restricted Subsidiary on a timely basis in
                  good faith and in appropriate proceedings, and the Borrower or
                  a Restricted Subsidiary has established adequate reserves
                  therefor in accordance with GAAP on the books of the Borrower
                  or such Restricted Subsidiary;

                           (c)      Liens (other than any Lien imposed by ERISA)
                  incurred or deposits made in the ordinary course of business
                  (i) in connection with workers' compensation, unemployment
                  insurance and other types of social security or retirement
                  benefits, or (ii) to secure (or to obtain letters of credit
                  that secure) the performance of tenders, statutory
                  obligations, surety bonds, appeal bonds, bids, leases (other
                  than Capital Leases), performance bonds, purchase,
                  construction or sales contracts and other similar obligations,
                  in each case not incurred or made in connection with the
                  borrowing of money, the obtaining of advances or credit or the
                  payment of the deferred purchase price of property;

                           (d)      any attachment or judgment Lien for the
                  payment of money in an aggregate amount not to exceed
                  $10,000,000; provided that the execution or other enforcement
                  of such Liens is effectively stayed and the claims secured
                  thereby are contested by the Borrower or such Restricted
                  Subsidiary on a timely basis in good faith and in appropriate
                  proceedings, and the Borrower or a Restricted Subsidiary has
                  established adequate reserves therefor in accordance with GAAP
                  on the books of the Borrower or such Restricted Subsidiary;
                  and

                           (e)      leases or subleases granted to others,
                  zoning restrictions, easements, licenses, reservations,
                  provisions, covenants, conditions, waivers, restrictions on
                  the use of property or irregularities of title (and with
                  respect to leasehold interests, mortgages, obligations, liens
                  and other encumbrances incurred, created, assumed or permitted
                  to exist and arising by, through or under a landlord or owner
                  of the leased property, with or without consent of the
                  lessee), and not interfering with, the ordinary conduct of the
                  business of the Borrower or any of its Restricted
                  Subsidiaries; provided that such Liens do not, in the
                  aggregate, materially detract from the value of such property
                  or impair the use of such property.

                  "PERSON" means an individual, partnership, corporation
         (including a business trust), limited liability company, joint stock
         company, trust, unincorporated association,

                                       21

<PAGE>

         joint venture or other entity, or a government or any political
         subdivision or agency thereof.

                  "PLAN" means a Single Employer Plan or a Multiple Employer
         Plan.

                  "PREFERRED STOCK" of any Person means any class of Capital
         Stock of such Person that is preferred over any other class of Capital
         Stock of such Person as to the payment of dividends or the payment of
         any amount upon liquidation or dissolution of such Person.

                  "PRO RATA SHARE" of any amount means, with respect to any
         Lender at any time, the product of such amount times a fraction the
         numerator of which is the amount of such Lender's Revolving Credit
         Commitment at such time (or, if the Commitments shall have been
         terminated pursuant to Section 2.05 or 6.01, such Lender's Revolving
         Credit Commitment as in effect immediately prior to such termination)
         and the denominator of which is the Revolving Credit Facility at such
         time (or, if the Commitments shall have been terminated pursuant to
         Section 2.05 or 6.01, the Revolving Credit Facility as in effect
         immediately prior to such termination).

                  "REFERENCE BANKS" means Citicorp, JPMorgan and US Bank
         National Association.

                  "REGISTER" has the meaning specified in Section 8.07(d).

                  "REGULATION U" means Regulation U of the Board of Governors of
         the Federal Reserve System, as in effect from time to time.

                  "RELATED DOCUMENTS" means the Note Purchase Agreement, the
         Partnership Agreement, the MLP Agreement and the Senior Notes.

                  "REPURCHASE AGREEMENT" means any written agreement:

                           (a)      that provides for (i) the transfer of one or
                  more United States Governmental Securities in an aggregate
                  principal amount at least equal to the amount of the Transfer
                  Price (defined below) to the Borrower or any of its Restricted
                  Subsidiaries from an Acceptable Bank or an Acceptable
                  Broker-Dealer against a transfer of funds (the "TRANSFER
                  PRICE") by the Borrower or such Restricted Subsidiary to such
                  Acceptable Bank or Acceptable Broker-Dealer, and (ii) a
                  simultaneous agreement by the Borrower or such Restricted
                  Subsidiary, in connection with such transfer of funds, to
                  transfer to such Acceptable Bank or Acceptable Broker-Dealer
                  the same or substantially similar United States Governmental
                  Securities for a price not less than the Transfer Price plus a
                  reasonable return thereon at a date certain not later than 365
                  days after such transfer of funds,

                           (b)      in respect of which the Borrower or such
                  Restricted Subsidiary shall have the right, whether by
                  contract or pursuant to applicable law, to liquidate such
                  agreement upon the occurrence of any default thereunder, and

                                       22

<PAGE>

                           (c)      in connection with which the Borrower or
                  such Restricted Subsidiary, or an agent thereof, shall have
                  taken all action required by applicable law or regulations to
                  perfect a Lien in such United States Governmental Securities.

                  "REQUIRED LENDERS" means, at any time, Lenders owed or holding
         at least a majority in interest of the sum of (a) the aggregate
         principal amount of the Advances outstanding at such time, (b) the
         aggregate Available Amount of all Letters of Credit outstanding at such
         time and (c) the aggregate Unused Revolving Credit Commitments at such
         time; provided, however, that if any Lender shall be a Defaulting
         Lender at such time, there shall be excluded from the determination of
         Required Lenders at such time (A) the aggregate principal amount of the
         Advances owing to such Lender (in its capacity as a Lender) and
         outstanding at such time, (B) such Lender's Pro Rata Share of the
         aggregate Available Amount of all Letters of Credit outstanding at such
         time and (C) the Unused Revolving Credit Commitment of such Lender at
         such time. For purposes of this definition, the aggregate principal
         amount of Swing Line Advances owing to the Swing Line Bank and of
         Letter of Credit Advances owing to any Issuing Bank and the Available
         Amount of each Letter of Credit shall be considered to be owed to the
         Lenders ratably in accordance with their respective Revolving Credit
         Commitments.

                  "RESPONSIBLE OFFICER" means any officer of any Loan Party or
         any of its Subsidiaries.

                  "RESTRICTED PAYMENT" has the meaning set forth in Section
         5.02(g).

                  "RESTRICTED SUBSIDIARY" means any Subsidiary of the Borrower
         (a) of which more than 50% (by number of votes) of each class of (i)
         Voting Stock, and (ii) all other securities convertible into,
         exchangeable for or representing the right to purchase, Voting Stock is
         beneficially owned, directly or indirectly, by the Borrower, (b) which
         is organized under the laws of the United States or any State thereof,
         (c) which maintains substantially all of its assets and conducts
         substantially all of its business within the United States, and (d)
         which is properly designated as such by the Borrower in the most recent
         notice (or, prior to any such notice, on Schedule 4.01(b) hereto
         including, without limitation, Alliance Coal, LLC, a Delaware limited
         liability company), with respect to such Subsidiary given by the
         Borrower pursuant to and in accordance with the provisions of Section
         5.02(r).

                  "REVOLVING CREDIT ADVANCE" has the meaning specified in
         Section 2.01(a).

                  "REVOLVING CREDIT BORROWING" means a borrowing consisting of
         simultaneous Revolving Credit Advances of the same Type made by the
         Lenders.

                  "REVOLVING CREDIT COMMITMENT" means, with respect to any
         Lender, the amount set forth opposite such Lender's name on Schedule I
         hereto under the caption "Revolving Credit Commitment", or, if such
         Lender has entered into one or more Assignment and Acceptances, set
         forth for such Lender in the Register maintained by the Paying Agent

                                       23

<PAGE>

         pursuant to Section 8.07(d) as such Lender's "Revolving Credit
         Commitment", as such amount may be reduced at or prior to such time
         pursuant to Section 2.05.

                  "REVOLVING CREDIT FACILITY" means, at any time, the aggregate
         amount of the Lenders' Revolving Credit Commitments at such time.

                  "S&P" means Standard & Poor's Ratings Group, a division of The
         McGraw-Hill Companies, Inc.

                  "SECURITIES ACT" means the Securities Act of 1933, as amended
         from time to time.

                  "SECURITY" has the meaning set forth in Section 2(a)(1) of the
         Securities Act.

                  "SENIOR NOTES" has the meaning specified in Preliminary
         Statement (1).

                  "SINGLE EMPLOYER PLAN" means a single employer plan, as
         defined in Section 4001(a)(15) of ERISA, that (a) is maintained for
         employees of any Loan Party or any ERISA Affiliate and no Person other
         than the Loan Parties and the ERISA Affiliates or (b) was so maintained
         and in respect of which any Loan Party or any ERISA Affiliate could
         have liability under Section 4069 of ERISA in the event such plan has
         been or were to be terminated.

                  "SOLVENCY CERTIFICATE" has the meaning set forth in Section
         3.01(a)(ix).

                  "SOLVENT" and "SOLVENCY" mean, with respect to any Person on a
         particular date, that on such date (a) the fair value of the property
         of such Person is greater than the total amount of liabilities,
         including, without limitation, contingent liabilities, of such Person,
         (b) the present fair salable value of the assets of such Person is not
         less than the amount that will be required to pay the probable
         liability of such Person on its debts as they become absolute and
         matured, (c) such Person does not intend to, and does not believe that
         it will, incur debts or liabilities beyond such Person's ability to pay
         such debts and liabilities as they mature and (d) such Person is not
         engaged in business or a transaction, and is not about to engage in
         business or a transaction, for which such Person's property would
         constitute an unreasonably small capital. The amount of contingent
         liabilities at any time shall be computed as the amount that, in the
         light of all the facts and circumstances existing at such time,
         represents the amount that can reasonably be expected to become an
         actual or matured liability.

                  "SPECIAL GENERAL PARTNER" has the meaning specified in
         Preliminary Statement (1).

                  "STANDBY LETTER OF CREDIT" means any Letter of Credit issued
         under the Letter of Credit Facility, other than a Trade Letter of
         Credit.

                  "SUBSIDIARY" means, with respect to any Person, any
         corporation, limited liability company, partnership, joint venture,
         association, trust or other entity of which (or in which) more than 50%
         of (a) the issued and outstanding Capital Stock having ordinary voting
         power to elect a majority of the board of directors of such corporation
         (irrespective

                                       24

<PAGE>

         of whether at the time Capital Stock of any other class or classes of
         such corporation shall or might have voting power upon the occurrence
         of any contingency), (b) the interests in the capital or profits of
         such partnership, limited liability company, joint venture or
         association with ordinary voting power to elect a majority of the board
         of directors (or persons performing similar functions) of such
         partnership, limited liability company, joint venture or association,
         or (c) the beneficial interests in such trust or other entity with
         ordinary voting power to elect a majority of the board of trustees (or
         persons performing similar functions) of such trust or other entity, is
         at the time directly or indirectly owned or controlled by such Person,
         by such Person and one or more of its Subsidiaries, or by one or more
         of such Person's other Subsidiaries.

                  "SUBSIDIARY GUARANTORS" means the Subsidiaries of the Borrower
         listed on Schedule II hereto and each other Restricted Subsidiary of
         the Borrower that shall be required to execute and deliver a guaranty
         pursuant to Section 5.01(i).

                  "SUBSIDIARY GUARANTY" has the meaning specified in Section
         3.01(a)(ii).

                  "SURVIVING DEBT" means Debt of each Loan Party and its
         Subsidiaries outstanding immediately before and after giving effect to
         the Initial Extension of Credit.

                  "SWAPS" means, with respect to any Person, payment obligations
         with respect to interest rate swaps, currency or commodity swaps and
         hedging obligations obligating such Person to make payments, whether
         periodically or upon the happening of a contingency. For the purposes
         of this Agreement, the amount of the obligation under any Swap shall be
         the amount determined in respect thereof as of the end of the then most
         recently ended fiscal quarter of such Person, based on the assumption
         that such Swap had terminated at the end of such fiscal quarter, and in
         making such determination, if any agreement relating to such Swap
         provides for the netting of amounts payable by and to such Person
         thereunder or if any such agreement provides for the simultaneous
         payment of amounts by and to such Person, then in each such case, the
         amount of such obligation shall be the net amount so determined.

                  "SWING LINE ADVANCE" means an advance made by (a) the Swing
         Line Bank pursuant to Section 2.01(b) or (b) any Lender pursuant to
         Section 2.02(b).

                  "SWING LINE BANK" means JPMorgan.

                  "SWING LINE BORROWING" means a borrowing consisting of a Swing
         Line Advance made by the Swing Line Bank pursuant to Section 2.01(b) or
         the Lenders pursuant to Section 2.02(b).

                  "SWING LINE COMMITMENT" means, with respect to the Swing Line
         Bank, the amount of the Swing Line Facility set forth in Section
         2.01(b), as such amount may be reduced at or prior to such time
         pursuant to Section 2.05.

                  "SWING LINE FACILITY" has the meaning specified in Section
         2.01(b).

                  "TAXES" has the meaning specified in Section 2.12(a).

                                       25

<PAGE>

                  "TERMINATION DATE" means the earlier of September 30, 2006 and
         the date of termination in whole of the Revolving Credit Commitments,
         the Letter of Credit Commitment and the Swing Line Commitment pursuant
         to Section 2.05 or 6.01.

                  "TRADE LETTER OF CREDIT" means any Letter of Credit that is
         issued under the Letter of Credit Facility for the benefit of a
         supplier of Inventory or raw materials or supplies (including, without
         limitation, fuel, spare parts or other materials used in connection
         with the operation of the business of the Borrower and its
         Subsidiaries) to the Borrower or any of its Subsidiaries to effect
         payment for such Inventory or raw materials or supplies.

                  "TRANSACTION" means the refinancing in full of the Existing
         Facility and the making of the Advances and the issuance of the Letters
         of Credit under this Agreement.

                  "TRANSACTION DOCUMENTS" means, collectively, the Loan
         Documents and the Related Documents.

                  "TRANSFER" means, with respect to any Person, any transaction
         in which such Person sells, conveys, abandons, transfers, leases (as
         lessor), or otherwise disposes of any of its assets; provided, however,
         that "Transfer" shall not include (a) the granting of any Liens
         permitted to be granted pursuant to this Agreement, (b) any transfer of
         assets permitted pursuant to Section 5.02(d), (c) the making of any
         Restricted Payment permitted pursuant to Section 5.02(g) or (d) the
         making of any Investments permitted pursuant to Section 5.02(f).

                  "TYPE" refers to the distinction between Advances bearing
         interest at the Base Rate and Advances bearing interest at the
         Eurodollar Rate.

                  "UNITED STATES GOVERNMENTAL SECURITY" means any direct
         obligation of, or obligation guaranteed by, the United States of
         America, or any agency controlled or supervised by or acting as an
         instrumentality of the United States of America pursuant to authority
         granted by the Congress of the United States of America, so long as
         such obligation or guarantee shall have the benefit of the full faith
         and credit of the United States of America which shall have been
         pledged pursuant to authority granted by the Congress of the United
         States of America.

                  "UNRESTRICTED SUBSIDIARY" means a Subsidiary which is not a
         Restricted Subsidiary.

                  "UNUSED REVOLVING CREDIT COMMITMENT" means, with respect to
         any Lender at any time (a) such Lender's Revolving Credit Commitment at
         such time minus (b) the sum of (i) the aggregate principal amount of
         all Revolving Credit Advances, Swing Line Advances and Letter of Credit
         Advances made by such Lender (in its capacity as a Lender and not as
         the Swing Line Bank or an Issuing Bank) and outstanding at such time
         plus (ii) such Lender's Pro Rata Share of (A) the aggregate Available
         Amount of all Letters of Credit outstanding at such time, (B) the
         aggregate principal amount of all Letters of Credit Advances made by
         the Issuing Banks pursuant to Section 2.03(c) and outstanding at such
         time and (C) the aggregate principal amount of all Swing Line

                                       26

<PAGE>

         Advances made by the Swing Line Bank pursuant to Section 2.01(d) and
         outstanding at such time.

                  "VOTING STOCK" means, (i) Securities of any class of classes,
         the holders of which are ordinarily, in the absence of contingencies,
         entitled to elect a majority of the directors (or persons performing
         similar functions) or (ii) in the case of a partnership, limited
         liability company or joint venture, interests in the profits or capital
         thereof entitling the holders of such interests to approve major
         business actions.

                  "WHOLLY OWNED" means, at any time, with respect to any
         Subsidiary of any Person, a Subsidiary of which at least ninety-eight
         percent (98%) of all of the equity interests (except directors'
         qualifying shares) and Voting Stock are owned by any one or more of
         such Person and such Person's other Wholly Owned Subsidiaries at such
         time.

                  "WITHDRAWAL LIABILITY" has the meaning specified in Part I of
         Subtitle E of Title IV of ERISA.

                  SECTION 1.02. Computation of Time Periods; Other Definitional
Provisions. In this Agreement and the other Loan Documents in the computation of
periods of time from a specified date to a later specified date, the word "FROM"
means "from and including" and the words "TO" and "UNTIL" each mean "to but
excluding". References in the Loan Documents to any agreement or contract "AS
AMENDED" shall mean and be a reference to such agreement or contract as amended,
amended and restated, supplemented or otherwise modified from time to time in
accordance with its terms.

                  SECTION 1.03. Accounting Terms. All accounting terms not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles in effect from time to time ("GAAP").

                                   ARTICLE II

           AMOUNTS AND TERMS OF THE ADVANCES AND THE LETTERS OF CREDIT

                  SECTION 2.01. The Advances and the Letters of Credit . (a) The
Revolving Credit Advances. Each Lender severally agrees, on the terms and
conditions hereinafter set forth, to make advances (each, a "REVOLVING CREDIT
ADVANCE") to the Borrower from time to time on any Business Day during the
period from the Effective Date until the Termination Date in an amount for each
such Advance not to exceed such Lender's Unused Revolving Credit Commitment at
such time. Each Revolving Credit Borrowing shall be in an aggregate amount of
$1,000,000 or an integral multiple of $100,000 in excess thereof in the case of
Base Rate Advances and in an aggregate amount of $5,000,000 or an integral
multiple of $1,000,000 in excess thereof in the case of Eurodollar Rate Advances
(other than, in the case of Base Rate Advances, a Borrowing the proceeds of
which shall be used solely to repay or prepay in full outstanding Swing Line
Advances or outstanding Letter of Credit Advances, in which case such Base Rate
Advances may be in an aggregate amount necessary to repay or prepay in full such
Swing Line Advances or Letter of Credit Advances) and shall consist of Revolving
Credit Advances made simultaneously by the Lenders ratably according to their
Revolving Credit Commitments. Within the limits of each Lender's Unused
Revolving Credit Commitment in

                                       27

<PAGE>

effect from time to time, the Borrower may borrow under this Section 2.01(a),
prepay pursuant to Section 2.06(a) and reborrow under this Section 2.01(a).

                  (b)      The Swing Line Advances. The Borrower may request the
Swing Line Bank to make, and the Swing Line Bank agrees to make, on the terms
and conditions hereinafter set forth, Swing Line Advances to the Borrower from
time to time on any Business Day during the period from the Effective Date until
the Termination Date (i) in an aggregate outstanding amount not to exceed at any
time $10,000,000 (the "SWING LINE FACILITY") and (ii) in an amount for each such
Swing Line Borrowing not to exceed the aggregate of the Unused Revolving Credit
Commitments of the Lenders at such time. No Swing Line Advance shall be used for
the purpose of funding the payment of principal of any other Swing Line Advance.
Each Swing Line Borrowing shall be in an amount of $500,000 or an integral
multiple of $100,000 in excess thereof and shall be made as a Base Rate Advance.
Within the limits of the Swing Line Facility and within the limits referred to
in clause (ii) above the Borrower may borrow under this Section 2.01(b), repay
pursuant to Section 2.04(b) or prepay pursuant to Section 2.06(a) and reborrow
under this Section 2.01(b).

                  (c)      The Letters of Credit. Each Issuing Bank severally
agrees, on the terms and conditions hereinafter set forth, to issue (or cause
its Affiliate that is a commercial bank to issue on its behalf) letters of
credit (together with the Existing Letters of Credit referred to in Section
2.03(f), the "LETTERS OF CREDIT") in U.S. dollars for the account of the
Borrower (but in connection with the business of the Borrower or any of its
Subsidiaries) from time to time on any Business Day during the period from the
Effective Date until 30 days before the Termination Date in an aggregate
Available Amount (i) for all Letters of Credit not to exceed at any time the
Letter of Credit Facility at such time and (ii) for all Letters of Credit issued
by such Issuing Bank not to exceed at any time such Issuing Bank's Letter of
Credit Commitment at such time and (iii) for each such Letter of Credit not to
exceed the Unused Revolving Credit Commitments of the Lenders at such time. No
Letter of Credit shall have an expiration date (including all rights of the
Borrower or the beneficiary to require renewal) later than the earlier of 30
days before the Termination Date and (A) in the case of a Standby Letter of
Credit, one year after the date of issuance thereof, but may by its terms be
renewable annually upon notice (a "NOTICE OF RENEWAL") given to the Issuing Bank
that issued such Standby Letter of Credit and the Paying Agent on or prior to
any date for notice of renewal set forth in such Letter of Credit but in any
event at least three Business Days prior to the date of the proposed renewal of
such Standby Letter of Credit and upon fulfillment of the applicable conditions
set forth in Article III unless such Issuing Bank has notified the Borrower
(with a copy to the Paying Agent) on or prior to the date for notice of
termination set forth in such Letter of Credit but in any event at least 45
Business Days prior to the date of automatic renewal of its election not to
renew such Standby Letter of Credit (a "NOTICE OF TERMINATION") and (B) in the
case of a Trade Letter of Credit, 30 days after the date of issuance thereof;
provided that the terms of each Standby Letter of Credit that is automatically
renewable annually shall (x) require the Issuing Bank that issued such Standby
Letter of Credit to give the beneficiary named in such Standby Letter of Credit
notice of any Notice of Termination, (y) permit such beneficiary, upon receipt
of such notice, to draw under such Standby Letter of Credit prior to the date
such Standby Letter of Credit otherwise would have been automatically renewed
and (z) not permit the expiration date (after giving effect to any renewal) of
such Standby Letter of Credit in any event to be extended to a date later than
30 days before the Termination Date. If either a Notice of Renewal is not given
by the Borrower

                                       28

<PAGE>

or a Notice of Termination is given by the relevant Issuing Bank pursuant to the
immediately preceding sentence, such Standby Letter of Credit shall expire on
the date on which it otherwise would have been automatically renewed; provided,
however, that even in the absence of receipt of a Notice of Renewal the relevant
Issuing Bank may in its discretion, unless instructed to the contrary by the
Paying Agent or the Borrower, deem that a Notice of Renewal had been timely
delivered and in such case, a Notice of Renewal shall be deemed to have been so
delivered for all purposes under this Agreement. Within the limits of the Letter
of Credit Facility, and subject to the limits referred to above, the Borrower
may request the issuance of Letters of Credit under this Section 2.01(c), repay
any Letter of Credit Advances resulting from drawings thereunder pursuant to
Section 2.03(c) and request the issuance of additional Letters of Credit under
this Section 2.01(c).

                  SECTION 2.02. Making the Advances. (a) Except as otherwise
provided in Section 2.02(b) or Section 2.03, each Borrowing shall be made on
notice, given not later than 12:00 noon (New York City time) on the third
Business Day prior to the date of the proposed Borrowing in the case of a
Borrowing consisting of Eurodollar Rate Advances, or the first Business Day
prior to the date of the proposed Borrowing in the case of a Borrowing
consisting of Base Rate Advances, by the Borrower to the Paying Agent, which
shall give to each Appropriate Lender prompt notice thereof by telecopier. Each
such notice of a Borrowing (a "NOTICE OF BORROWING") shall be by telephone,
confirmed immediately in writing, or by telecopier, in substantially the form of
Exhibit B hereto, specifying therein the requested (i) date of such Borrowing,
(ii) Type of Advances comprising such Borrowing, (iii) aggregate amount of such
Borrowing, (iv) if the proceeds of such Borrowing will be used to fund cash
distributions to the holders of the MLP Units, aggregate amount of such
Borrowing to be so used and aggregate amount of Cash Distribution Advances
outstanding immediately prior to such Borrowing to the extent such Advances have
not been prepaid prior to such time pursuant to Section 2.06(a) and (v) in the
case of a Borrowing consisting of Eurodollar Rate Advances, initial Interest
Period for each such Advance. Each Appropriate Lender shall, before 12:00 noon
(New York City time) on the date of such Borrowing, make available for the
account of its Applicable Lending Office to the Paying Agent at the Paying
Agent's Account, in same day funds, such Lender's ratable portion of such
Borrowing in accordance with the respective Commitments under the applicable
Facility of such Lender and the other Appropriate Lenders. After the Paying
Agent's receipt of such funds and upon fulfillment of the applicable conditions
set forth in Article III, the Paying Agent will make such funds available to the
Borrower by crediting the Borrower's Account; provided, however, that, in the
case of any Revolving Credit Borrowing, the Paying Agent shall first make a
portion of such funds equal to the aggregate principal amount of any Swing Line
Advances and Letter of Credit Advances made by the Swing Line Bank or any
Issuing Bank, as the case may be, and by any other Lender and outstanding on the
date of such Revolving Credit Borrowing, plus interest accrued and unpaid
thereon to and as of such date, available to the Swing Line Bank or such Issuing
Bank, as the case may be, and such other Lenders for repayment of such Swing
Line Advances and Letter of Credit Advances.

                  (b)      Each Swing Line Borrowing shall be made on notice,
given not later than 12:00 noon (New York City time) on the date of the proposed
Swing Line Borrowing, by the Borrower to the Swing Line Bank and the Paying
Agent. Each such notice of a Swing Line Borrowing (a "NOTICE OF SWING LINE
BORROWING") shall be by telephone, confirmed immediately in writing, or by
telecopier, specifying therein the requested (i) date of such Borrowing,

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<PAGE>

(ii) amount of such Borrowing and (iii) maturity of such Borrowing (which
maturity shall be no later than the thirtieth day after the requested date of
such Borrowing). The Swing Line Bank will make the amount of the requested Swing
Line Advances available to the Paying Agent at the Paying Agent's Account, in
same day funds. After the Paying Agent's receipt of such funds and upon
fulfillment of the applicable conditions set forth in Article III, the Paying
Agent will make such funds available to the Borrower by crediting the Borrower's
Account. Upon written demand by the Swing Line Bank, with a copy of such demand
to the Paying Agent, each other Lender shall purchase from the Swing Line Bank,
and the Swing Line Bank shall sell and assign to each such other Lender, such
other Lender's Pro Rata Share of such outstanding Swing Line Advance as of the
date of such demand, by making available for the account of its Applicable
Lending Office to the Paying Agent for the account of the Swing Line Bank, by
deposit to the Paying Agent's Account, in same day funds, an amount equal to the
portion of the outstanding principal amount of such Swing Line Advance to be
purchased by such Lender. The Borrower hereby agrees to each such sale and
assignment. Each Lender agrees to purchase its Pro Rata Share of an outstanding
Swing Line Advance on (i) the Business Day on which demand therefor is made by
the Swing Line Bank; provided that notice of such demand is given not later than
12:00 noon (New York City time) on such Business Day or (ii) the first Business
Day next succeeding such demand if notice of such demand is given after such
time. Upon any such assignment by the Swing Line Bank to any other Lender of a
portion of a Swing Line Advance, the Swing Line Bank represents and warrants to
such other Lender that the Swing Line Bank is the legal and beneficial owner of
such interest being assigned by it, but makes no other representation or
warranty and assumes no responsibility with respect to such Swing Line Advance,
the Loan Documents or any Loan Party. If and to the extent that any Lender shall
not have so made the amount of such Swing Line Advance available to the Paying
Agent, such Lender agrees to pay to the Paying Agent forthwith on demand such
amount together with interest thereon, for each day from the date of demand by
the Swing Line Bank until the date such amount is paid to the Paying Agent, at
the Federal Funds Rate. If such Lender shall pay to the Paying Agent such amount
for the account of the Swing Line Bank on any Business Day, such amount so paid
in respect of principal shall constitute a Swing Line Advance made by such
Lender on such Business Day for purposes of this Agreement, and the outstanding
principal amount of the Swing Line Advance made by the Swing Line Bank shall be
reduced by such amount on such Business Day.

                  (c)      Anything in subsection (a) above to the contrary
notwithstanding, (i) the Borrower may not select Eurodollar Rate Advances for
the initial Borrowing hereunder or for any Borrowing if the aggregate amount of
such Borrowing is less than $5,000,000 or if the obligation of the Appropriate
Lenders to make Eurodollar Rate Advances shall then be suspended pursuant to
Section 2.07(d)(ii), Section 2.09(b)(iii) or Section 2.10(c) or (d) and (ii) the
Revolving Credit Advances and the Revolving Credit Advances may not be
outstanding as part of more than eight separate Borrowings in aggregate.

                  (d)      Each Notice of Borrowing and each Notice of Swing
Line Borrowing shall be irrevocable and binding on the Borrower.

                  (e)      Unless the Paying Agent shall have received notice
from an Appropriate Lender prior to the date of any Borrowing under a Facility
under which such Lender has a Commitment that such Lender will not make
available to the Paying Agent such Lender's ratable

                                       30

<PAGE>

portion of such Borrowing, the Paying Agent may assume that such Lender has made
such portion available to the Paying Agent on the date of such Borrowing in
accordance with subsection (a) of this Section 2.02 and the Paying Agent may, in
reliance upon such assumption, make available to the Borrower on such date a
corresponding amount. If and to the extent that such Lender shall not have so
made such ratable portion available to the Paying Agent, such Lender and the
Borrower severally agree to repay or pay to the Paying Agent forthwith on demand
such corresponding amount and to pay interest thereon, for each day from the
date such amount is made available to the Borrower until the date such amount is
repaid or paid to the Paying Agent at (i) in the case of the Borrower, the
interest rate applicable at such time under Section 2.07 to Advances comprising
such Borrowing and (ii) in the case of such Lender, the Federal Funds Rate. If
such Lender shall pay to the Paying Agent such corresponding amount, such amount
so paid shall constitute such Lender's Advance as part of such Borrowing for all
purposes.

                  (f)      The failure of any Lender to make the Advance to be
made by it as part of any Borrowing shall not relieve any other Lender of its
obligation, if any, hereunder to make its Advance on the date of such Borrowing,
but no Lender shall be responsible for the failure of any other Lender to make
the Advance to be made by such other Lender on the date of any Borrowing.

                  SECTION 2.03. Issuance of and Drawings and Reimbursement Under
Letters of Credit. (a) Request for Issuance. Each Letter of Credit shall be
issued upon notice, given not later than 12:00 noon (New York City time) on the
fifth Business Day prior to the date of the proposed issuance of such Letter of
Credit, by the Borrower to any Issuing Bank, which shall give to the Paying
Agent and each Lender prompt notice thereof by telecopier or electronic
communication. Each such notice of issuance of a Letter of Credit (a "NOTICE OF
ISSUANCE") shall be by telephone, confirmed immediately in writing, or
telecopier or electronic communication, specifying therein the requested (A)
name of the Issuing Bank, (B) date of such issuance (which shall be a Business
Day), (C) Available Amount of such Letter of Credit, (D) expiration date of such
Letter of Credit, (E) name and address of the beneficiary of such Letter of
Credit and (F) form of such Letter of Credit, and shall be accompanied by such
application and agreement for letter of credit as such Issuing Bank may specify
to the Borrower for use in connection with such requested Letter of Credit (a
"LETTER OF CREDIT AGREEMENT"); provided that such Letter of Credit Agreement
shall be subject to the provisions of Section 2.08). If (x) the requested form
of such Letter of Credit is acceptable to such Issuing Bank in its reasonable
sole discretion and (y) it has not received notice of a good faith objection to
such issuance from the Required Lenders, such Issuing Bank will, upon
fulfillment of the applicable conditions set forth in Article III, make such
Letter of Credit available to the Borrower at its office referred to in Section
8.02 or as otherwise agreed with the Borrower in connection with such issuance.
In the event and to the extent that the provisions of any Letter of Credit
Agreement shall conflict with this Agreement, the provisions of this Agreement
shall govern.

                  (b)      Letter of Credit Reports. Each Issuing Bank shall
furnish (A) to the Paying Agent on the first Business Day of each week a written
report summarizing issuance and expiration dates of Letters of Credit issued by
such Issuing Bank during the previous week and drawings during such week under
all Letters of Credit issued by such Issuing Bank, (B) to each Lender on the
first Business Day of each month a written report summarizing issuance and

                                       31

<PAGE>

expiration dates of Letters of Credit issued by such Issuing Bank during the
preceding month and drawings during such month under all Letters of Credit
issued by such Issuing Bank and (C) to the Paying Agent and each Lender on the
first Business Day of each calendar quarter a written report setting forth the
average daily aggregate Available Amount during the preceding calendar quarter
of all Letters of Credit issued by such Issuing Bank. A copy of each such report
delivered pursuant to this clause (b) shall be delivered to the Borrower upon
request by the Borrower.

                  (c)      Participations in Letters of Credit. Upon the
issuance of a Letter of Credit by any Issuing Bank under Section 2.03(a), such
Issuing Bank shall be deemed, without further action by any party hereto, to
have sold to each Lender, and each such Lender shall be deemed, without further
action by any party hereto, to have purchased from such Issuing Bank, a
participation in such Letter of Credit in an amount for each Lender equal to
such Lender's Pro Rata Share of the Available Amount of such Letter of Credit,
effective upon the issuance of such Letter of Credit. In consideration and in
furtherance of the foregoing, each Lender hereby absolutely and unconditionally
agrees to pay such Lender's Pro Rata Share of each L/C Disbursement made by such
Issuing Bank and not reimbursed by the Borrower forthwith on the date due as
provided in Section 2.04(c) on demand by the Paying Agent by making available
for the account of its Applicable Lending Office to the Paying Agent for the
account of such Issuing Bank by deposit to the Paying Agent's Account, in same
day funds, an amount equal to such Lender's Pro Rata Share of such L/C
Disbursement. The Paying Agent will promptly thereafter cause like funds to be
distributed to the applicable Issuing Bank for the account of its Applicable
Lending Office. Each Lender acknowledges and agrees that its obligation to
acquire participations pursuant to this Section 2.03(c) in respect of Letters of
Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a Default
or an Event of Default or the termination of the Commitments, and that each such
payment shall be made without any off-set, abatement, withholding or reduction
whatsoever. If and to the extent that any Lender shall not have so made the
amount of such L/C Disbursement available to the Paying Agent, such Lender
agrees to pay to the Paying Agent forthwith on demand such amount together with
interest thereon, for each day from the date such L/C Disbursement is due
pursuant to Section 2.04(c) until the date such amount is paid to the Paying
Agent, at the Federal Funds Rate for its account or the account of such Issuing
Bank, as applicable. If such Lender shall pay to the Paying Agent such amount
for the account of such Issuing Bank on any Business Day, such amount so paid in
respect of principal shall constitute a Letter of Credit Advance made by such
Lender on such Business Day for purposes of this Agreement, and the outstanding
principal amount of the Letter of Credit Advance made by such Issuing Bank shall
be reduced by such amount on such Business Day.

                  (d)      Drawing and Reimbursement. The payment by any Issuing
Bank of a draft drawn under any Letter of Credit shall constitute for all
purposes of this Agreement the making by such Issuing Bank of a Letter of Credit
Advance, which shall be a Base Rate Advance, in the amount of such draft. The
Issuing Bank shall promptly notify the Paying Agent of any such payment.

                  (e)      Failure to Make Letter of Credit Advances. The
failure of any Lender to make the Letter of Credit Advance to be made by it on
the date specified in Section 2.03(c) shall not relieve any other Lender of its
obligation hereunder to make its Letter of Credit Advance on

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<PAGE>

such date, but no Lender shall be responsible for the failure of any other
Lender to make the Letter of Credit Advance to be made by such other Lender on
such date.

                  (f)      Existing Letters of Credit. As of the Effective Date,
(i) the "Letters of Credit" issued by the Existing Issuing Bank, for the account
of the MLP pursuant to the Letter of Credit Facility Agreement, dated as of June
29, 2001, between the MLP and Bank of Oklahoma, N.A., as amended (the "EXISTING
L/C AGREEMENT") (such "Letters of Credit" as are outstanding thereunder on the
date hereof and set forth on Schedule III hereto being the "EXISTING LETTERS OF
CREDIT"), will be deemed to be Letters of Credit issued hereunder for the
account of the Borrower, (ii) the Existing Letters of Credit will no longer be
Obligations outstanding under such Existing L/C Agreement and (iii) the Existing
Issuing Bank will be deemed to have sold and transferred an undivided interest
and participation in respect of the Existing Letters of Credit issued by it and
each Appropriate Lender hereunder will be deemed to have purchased and received,
without further action on the part of any party, an undivided interest and
participation in such Existing Letters of Credit, based on such Lender's Pro
Rata Share of the aggregate Available Amount of all Letters of Credit
outstanding at such time.

                  SECTION 2.04. Repayment of Advances. (a) Revolving Credit
Advances. The Borrower shall repay to the Paying Agent for the ratable account
of the Lenders on the Termination Date the aggregate principal amount of the
Revolving Credit Advances then outstanding.

                  (b)      Swing Line Advances. The Borrower shall repay to the
Paying Agent for the account of the Swing Line Bank and each other Lender that
has made a Swing Line Advance the outstanding principal amount of each Swing
Line Advance made by each of them on the earlier of the maturity date specified
in the applicable Notice of Swing Line Borrowing (which maturity shall be no
later than the thirtieth day after the requested date of such Borrowing) and the
Termination Date.

                  (c)      Letter of Credit Advances. (i) The Borrower shall
repay to the Paying Agent for the account of each Issuing Bank and each other
Lender that has made a Letter of Credit Advance on the earlier of demand and the
Termination Date the outstanding principal amount of each Letter of Credit
Advance made by each of them (it being understood and agreed that, subject to
the satisfaction of the other provisions of this Agreement, a Letter of Credit
Advance may be repaid prior to the Termination Date with the proceeds of a new
Borrowing).

                  (ii)     The Obligations of the Borrower under this Agreement,
any Letter of Credit Agreement and any other agreement or instrument relating to
any Letter of Credit shall be unconditional and irrevocable, and shall be paid
strictly in accordance with the terms of this Agreement, such Letter of Credit
Agreement and such other agreement or instrument under all circumstances,
including, without limitation, the following circumstances:

                  (A)      any lack of validity or enforceability of any Loan
         Document, any Letter of Credit Agreement, any Letter of Credit or any
         other agreement or instrument relating thereto (all of the foregoing
         being, collectively, the "L/C RELATED DOCUMENTS");

                                       33

<PAGE>

                  (B)      any change in the time, manner or place of payment
         of, or in any other term of, all or any of the Obligations of any Loan
         Party in respect of any L/C Related Document or any other amendment or
         waiver of or any consent to departure from all or any of the L/C
         Related Documents;

                  (C)      the existence of any claim, set-off, defense or other
         right that any Loan Party may have at any time against any beneficiary
         or any transferee of a Letter of Credit (or any Persons for which any
         such beneficiary or any such transferee may be acting), any Issuing
         Bank or any other Person, whether in connection with the transactions
         contemplated by the L/C Related Documents or any unrelated transaction;

                  (D)      any statement or any other document presented under a
         Letter of Credit proving to be forged, fraudulent, invalid or
         insufficient in any respect or any statement therein being untrue or
         inaccurate in any respect;

                  (E)      payment by any Issuing Bank under a Letter of Credit
         against presentation of a draft, certificate or other document that
         does not strictly comply with the terms of such Letter of Credit;

                  (F)      any exchange, release or non-perfection of any
         collateral, or any release or amendment or waiver of or consent to
         departure from the Guaranties or any other guarantee, for all or any of
         the Obligations of any Loan Party in respect of the L/C Related
         Documents; or

                  (G)      any other circumstance or happening whatsoever,
         whether or not similar to any of the foregoing, including, without
         limitation, any other circumstance that might otherwise constitute a
         defense available to, or a discharge of, the Borrower or a guarantor.

                  SECTION 2.05. Termination or Reduction of the Commitments. (a)
Optional. The Borrower may, upon at least three Business Days' notice to the
Paying Agent, terminate in whole or reduce in part the unused portion of the
Swing Line Facility and the Letter of Credit Facility and the Unused Revolving
Credit Commitments; provided, however, that each partial reduction of a Facility
(i) shall be in an aggregate amount of $5,000,000 (or in the case of the Swing
Line Facility, $2,000,000) or an integral multiple of $1,000,000 (or in the case
of the Swing Line Facility, $500,000) in excess thereof and (ii) shall be made
ratably among the Appropriate Lenders in accordance with their Commitments with
respect to such Facility.

         (b) Mandatory. (i) The Letter of Credit Facility shall be permanently
reduced from time to time on the date of each reduction in the Revolving Credit
Facility by the amount, if any, by which the amount of the Letter of Credit
Facility exceeds the Revolving Credit Facility after giving effect to such
reduction of the Revolving Credit Facility.

         (ii)     The Swing Line Facility shall be permanently reduced from time
to time on the date of each reduction in the Revolving Credit Facility by the
amount, if any, by which the amount of the Swing Line Facility exceeds the
Revolving Credit Facility after giving effect to such reduction of the Revolving
Credit Facility.

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<PAGE>

                  SECTION 2.06. Prepayments. (a) Optional. The Borrower may,
upon at least one Business Day's notice in the case of Base Rate Advances and
three Business Days' notice in the case of Eurodollar Rate Advances, in each
case to the Paying Agent stating the proposed prepayment date, aggregate
principal amount of the prepayment and the amount of such prepayment, if any, to
be allocated to prepayment of Cash Distribution Advances then outstanding, and
if such notice is given the Borrower shall, prepay the outstanding aggregate
principal amount of the Advances comprising part of the same Borrowing in whole
or ratably in part, together with accrued interest to the date of such
prepayment on the aggregate principal amount prepaid; provided, however, that
(x) each partial prepayment shall be in an aggregate principal amount of
$1,000,000 or an integral multiple of $100,000 in excess thereof in the case of
Base Rate Advances and $5,000,000 or an integral multiple of $1,000,000 in
excess thereof in the case of Eurodollar Rate Advances and if any prepayment of
a Eurodollar Rate Advance is made on a date other than the last day of an
Interest Period for such Advance, the Borrower shall also pay any amounts owing
pursuant to Section 8.04(c).

                  (b)      Mandatory. (i) The Borrower shall, on each Business
Day, prepay an aggregate principal amount of the Revolving Credit Advances
comprising part of the same Borrowings, the Letter of Credit Advances and the
Swing Line Advances in an amount equal to the amount by which (A) the sum of the
aggregate principal amount of (x) the Revolving Credit Advances, (y) the Letter
of Credit Advances and (z) the Swing Line Advances then outstanding plus the
aggregate Available Amount of all Letters of Credit then outstanding exceeds (B)
the Revolving Credit Facility on such Business Day.

                  (ii)     Prepayments of the Revolving Credit Facility made
pursuant to clause (i) shall be first applied to prepay Letter of Credit
Advances then outstanding until such Advances are paid in full, second applied
to prepay Swing Line Advances then outstanding until such Advances are paid in
full and third applied to prepay Revolving Credit Advances then outstanding
comprising part of the same Borrowings until such Advances are paid in full.

                  (iii)    The Borrower shall, on the last day of each of the
first three fiscal quarters and the last day of each fiscal year of the
Borrower, prepay the principal amount of each Swing Line Borrowing in excess of
$2,500,000 outstanding on such day.

                  (iv)     All prepayments under this subsection (b) shall be
made together with accrued interest to the date of such prepayment on the
principal amount prepaid, together with any amounts owing pursuant to Section
8.04(c).

                  SECTION 2.07. Interest. (a) Scheduled Interest. The Borrower
shall pay interest on the unpaid principal amount of each Advance owing to each
Lender from the date of such Advance until such principal amount shall be paid
in full, at the following rates per annum:

                  (i)      Base Rate Advances. During such periods as such
         Advance is a Base Rate Advance, a rate per annum equal at all times to
         the sum of (A) the Base Rate in effect from time to time plus (B) the
         Applicable Margin in effect from time to time, which ratio shall be
         determined in accordance with the definition of that term, payable in
         arrears quarterly on the last day of each fiscal quarter during such
         periods and on the date such Base Rate Advance shall be Converted or
         paid in full.

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<PAGE>

                  (ii)     Eurodollar Rate Advances. During such periods as such
         Advance is a Eurodollar Rate Advance, a rate per annum equal at all
         times during each Interest Period for such Advance to the sum of (A)
         the Eurodollar Rate for such Interest Period for such Advance plus (B)
         the Applicable Margin in effect prior to the first day of such Interest
         Period, which ratio shall be determined in accordance with the
         definition of that term, payable in arrears on the last day of such
         Interest Period and, if such Interest Period has a duration of more
         than three months, on each day that occurs during such Interest Period
         every three months from the first day of such Interest Period and on
         the date such Eurodollar Rate Advance shall be Converted or paid in
         full.

                  (b)      Default Interest. Upon the occurrence and during the
continuance of an Event of Default, the Borrower shall pay interest ("DEFAULT
INTEREST") on (i) the unpaid principal amount of each Advance owing to each
Lender Party, payable in arrears on the dates referred to in clause (a)(i) or
(a)(ii) above and on demand, at a rate per annum equal at all times to 2% per
annum above the rate per annum required to be paid on such Advance pursuant to
clause (a)(i) or (a)(ii) above and (ii) to the fullest extent permitted by law,
the amount of any interest, fee or other amount payable under the Loan Documents
that is not paid when due, from the date such amount shall be due until such
amount shall be paid in full, payable in arrears on the date such amount shall
be paid in full and on demand, at a rate per annum equal at all times to 2% per
annum above the rate per annum required to be paid, in the case of interest, on
the Type of Advance on which such interest has accrued pursuant to clause (a)(i)
or (a)(ii) above and, in all other cases, on Base Rate Advances pursuant to
clause (a)(i) above; provided, however, that following the acceleration of the
Advances, or the giving of notice by the Paying Agent to accelerate the
Advances, pursuant to Section 6.01, Default Interest shall accrue and be payable
hereunder.

                  (c)      Notice of Interest Period and Interest Rate. Promptly
after receipt of a Notice of Borrowing pursuant to Section 2.02(a), a notice of
Conversion pursuant to Section 2.09 or a notice of selection of an Interest
Period pursuant to the terms of the definition of "Interest Period", the Paying
Agent shall give notice to the Borrower and each Appropriate Lender of the
applicable Interest Period and the applicable interest rate determined by the
Paying Agent for purposes of clause (a)(i) or (a)(ii) above, and the applicable
rate, if any, furnished by each Reference Bank at the Borrower s request for the
purpose of determining the applicable interest rate under clause (a)(ii) above.

                  (d)      Interest Rate Determination. (i) In the event that
the Borrower requests, in accordance with the definition of "Eurodollar Rate",
that the Eurodollar Rate be based on interest rate quotes received from the
Reference Banks, each Reference Bank agrees to furnish to the Paying Agent
timely information for the purpose of determining each Eurodollar Rate. If any
one or more of the Reference Banks shall not furnish such timely information to
the Paying Agent for the purpose of determining any such interest rate, the
Paying Agent shall determine such interest rate on the basis of timely
information furnished by the remaining Reference Banks.

                  (ii)     If fewer than two Reference Banks are able to furnish
timely information to the Paying Agent for determining the Eurodollar Rate for
any Eurodollar Rate Advances and the Eurodollar Rate cannot otherwise be
determined in accordance with clause (b) of the definition of "Eurodollar Rate",
the Paying Agent shall forthwith notify the Borrower and the

                                       36

<PAGE>

Lenders that the interest rate cannot be determined pursuant to said clause (b)
for such Eurodollar Rate Advances, and, unless the Eurodollar Rate cannot be
determined by reference to clause (a) of the definition of Eurodollar Rate, then

                  (A)      each such Advance will automatically, on the last day
         of the then existing Interest Period therefor, Convert into a Base Rate
         Advance (or if such Advance is then a Base Rate Advance, will continue
         as a Base Rate Advance), and

                  (B)      the obligation of the Lenders to make, or to Convert
         Advances into, Eurodollar Rate Advances shall be suspended until the
         Paying Agent shall notify the Borrower and the Lenders that the
         circumstances causing such suspension no longer exist.

                  SECTION 2.08. Fees. (a) Commitment Fee. The Borrower shall pay
to the Paying Agent for the account of the Lenders a commitment fee, from the
date hereof in the case of each Initial Lender and from the effective date
specified in the Assignment and Acceptance pursuant to which it became a Lender
in the case of each other Lender until the Termination Date, payable in arrears
on the date of the initial Borrowing hereunder, thereafter quarterly on the last
day of each fiscal quarter, commencing with the fiscal quarter ending at
September 30, 2003, and on the Termination Date, at a percentage per annum equal
to the Applicable Percentage at such time on the sum of the average daily Unused
Revolving Credit Commitment of such Lender plus its Pro Rata Share of the
average daily outstanding Swing Line Advances during such quarter; provided,
however, that no commitment fee shall accrue on any of the Commitments of a
Defaulting Lender so long as such Lender shall be a Defaulting Lender.

                  (b)      Letter of Credit Fees, Etc. (i) The Borrower shall
pay to the Agent for the account of each Lender a commission, payable in arrears
quarterly, within 15 days after each March 31, June 30, September 30 and
December 31, commencing September 30, 2003 and on the earliest to occur of the
full drawing, expiration, termination or cancellation of any Letter of Credit
and on the Termination Date, on such Lender's Pro Rata Share of the average
daily aggregate Available Amount during such quarter of all Letters of Credit
outstanding from time to time at a percentage per annum equal to the Applicable
Margin for Eurodollar Rate Advances at such time. Upon the occurrence and during
the continuance of a Default under Section 6.01(a) or 6.01(f) or an Event of
Default, the amount of commission payable by the Borrower under this clause
(b)(i) shall be increased by 2% per annum.

                  (ii)     The Borrower shall pay to each Issuing Bank, for its
own account, a fronting fee, payable in arrears quarterly, within 15 days after
each March 31, June 30, September 30 and December 31, commencing September 30,
2003 and on the earliest to occur of the full drawing, expiration, termination
or cancellation of any Letter of Credit and on the Termination Date, on the
average daily aggregate Available Amount during such quarter of all Letters of
Credit outstanding from time to time at a percentage per annum equal to 0.125%.

                  (iii)    The Borrower shall pay to each Issuing Bank, for its
own account, such other commissions and issuance fees, and such customary
transfer fees, amendment fees and other fees and charges in connection with the
issuance or administration of each Letter of Credit issued by such Issuing Bank,
including the administration of each Letter of Credit Agreement, as

                                       37

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the Borrower and such Issuing Bank shall agree; provided that the fees of the
type contemplated by clause (i) and (ii) of this Section 2.08(b) shall be
exclusive of any similar fee that would otherwise be required to be paid under
any such Letter of Credit Agreement.

                  (c)      Agents' Fees. The Borrower shall pay to each Agent
for its own account such fees as may from time to time be agreed between the
Borrower and such Agent.

                  SECTION 2.09. Conversion of Advances. (a) Optional. The
Borrower may on any Business Day, upon notice given to the Paying Agent not
later than 12:00 noon (New York City time) on the third Business Day prior to
the date of the proposed Conversion or continuation, in the case of the
Conversion or continuation of any Advances into or as Eurodollar Rate Advances,
and on the same Business Day, in the case of the Conversion of any Advances into
Base Rate Advances, and subject, in each case, to the provisions of Sections
2.07 and 2.10, Convert (or in the case of Eurodollar Rate Advances, continue)
all or any portion of the Advances of one Type comprising the same Borrowing
into Advances of the other Type; provided, however, that any Conversion of
Eurodollar Rate Advances into Base Rate Advances or continuation of Eurodollar
Rate Advances shall be made only on the last day of an Interest Period for such
Eurodollar Rate Advances, any Conversion of Base Rate Advances into Eurodollar
Rate Advances shall be in an amount not less than the minimum amount specified
in Section 2.02(c), no Conversion of any Advances shall result in more separate
Borrowings than permitted under Section 2.02(c) and each Conversion of Advances
comprising part of the same Borrowing under any Facility shall be made ratably
among the Appropriate Lenders in accordance with their Commitments under such
Facility. Each such notice of Conversion or continuation shall, within the
restrictions specified above, specify (i) the date of such Conversion or
continuation, (ii) the Advances to be Converted or continued and (iii) if such
Conversion or continuation is into Eurodollar Rate Advances, the duration of the
initial Interest Period for such Advances. Each notice of Conversion shall be
irrevocable and binding on the Borrower.

                  (b)      Mandatory. (i) On the date on which the aggregate
unpaid principal amount of Eurodollar Rate Advances comprising any Borrowing
shall be reduced, by payment or prepayment or otherwise, to less than
$5,000,000, such Advances shall automatically Convert into Base Rate Advances.

                  (ii)     If the Borrower shall provide a notice of Conversion
or continuation and fail to select the duration of any Interest Period for any
Eurodollar Rate Advances in accordance with the provisions contained in the
definition of "Interest Period" in Section 1.01, the Paying Agent will forthwith
so notify the Borrower and the Appropriate Lenders, whereupon each such
Eurodollar Rate Advance will automatically, on the last day of the then existing
Interest Period therefor, Convert into or continue as a Eurodollar Rate Advance
with an interest period of one month. In addition, if the Borrower shall fail to
provide a timely notice of Conversion or continuation for any Eurodollar Rate
Advance, such Eurodollar Rate Advance will automatically Convert into a Base
Rate Advance.

                  (iii)    Upon the occurrence and during the continuance of any
Event of Default, (x) each Eurodollar Rate Advance will automatically, on the
last day of the then existing Interest Period therefor, Convert into a Base Rate
Advance and (y) the obligation of the Lenders to make,

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<PAGE>

or to Convert Advances into or to continue Eurodollar Rate Advances as,
Eurodollar Rate Advances shall be suspended during such continuance.

                  SECTION 2.10. Increased Costs, Etc. (a) If, due to either (i)
the introduction of or any change in or in the interpretation of any law or
regulation after the date hereof or (ii) the compliance with any guideline or
request from any central bank or other governmental authority (whether or not
having the force of law), there shall be any increase in the cost to any Lender
Party of agreeing to make or of making, funding or maintaining Eurodollar Rate
Advances or of agreeing to issue or of issuing or maintaining or participating
in Letters of Credit or of agreeing to make or of making or maintaining Letter
of Credit Advances (excluding, for purposes of this Section 2.10, any such
increased costs resulting from (x) Taxes or Other Taxes (as to which Section
2.12 shall govern) and (y) changes in the basis of taxation of overall net
income or overall gross income by the United States or by the foreign
jurisdiction or state under the laws of which such Lender Party is organized or
has its Applicable Lending Office or any political subdivision thereof), then
the Borrower shall from time to time, upon demand by such Lender Party (with a
copy of such demand to the Paying Agent), pay to the Paying Agent for the
account of such Lender Party additional amounts sufficient to compensate such
Lender Party for such increased cost. A certificate as to the amount of such
increased cost, submitted to the Borrower by such Lender Party, shall be
conclusive and binding for all purposes, absent manifest error.

                  (b)      If any Lender Party determines that compliance with
any law or regulation or any guideline or request from any central bank or other
governmental authority enacted, promulgated, issued or made after the date
hereof (whether or not having the force of law) affects or would affect the
amount of capital required or expected to be maintained by such Lender Party or
any corporation controlling such Lender Party and that the amount of such
capital is increased by or based upon the existence of such Lender Party's
commitment to lend or to issue or participate in Letters of Credit hereunder and
other commitments of such type or the issuance or maintenance of or
participation in any Letters of Credit (or similar contingent obligations),
then, upon demand by such Lender Party or such corporation (with a copy of such
demand to the Paying Agent), the Borrower shall pay to the Paying Agent for the
account of such Lender Party, from time to time as specified by such Lender
Party, additional amounts sufficient to compensate such Lender Party in the
light of such circumstances, to the extent that such Lender Party reasonably
determines such increase in capital to be allocable to the existence of such
Lender Party's commitment to lend or to issue or participate in Letters of
Credit hereunder or to the issuance or maintenance of or participation in any
Letters of Credit. A certificate as to such amounts submitted to the Borrower by
such Lender Party shall be conclusive and binding for all purposes, absent
manifest error.

                  (c)      If, with respect to any Eurodollar Rate Advances
under any Facility, Lenders owed at least 50% of the then aggregate unpaid
principal thereof notify the Paying Agent that the Eurodollar Rate for any
Interest Period for such Advances will not adequately reflect the cost to such
Lenders of making, funding or maintaining their Eurodollar Rate Advances for
such Interest Period, the Paying Agent shall forthwith so notify the Borrower
and the Appropriate Lenders, whereupon (i) each such Eurodollar Rate Advance
under such Facility will automatically, on the last day of the then existing
Interest Period therefor, Convert into a Base Rate Advance and (ii) the
obligation of the Appropriate Lenders to make, or to Convert Advances into,
Eurodollar Rate Advances shall be suspended until the Paying Agent shall notify

                                       39

<PAGE>

the Borrower that such Lenders have determined that the circumstances causing
such suspension no longer exist.

                  (d)      Notwithstanding any other provision of this
Agreement, if the introduction of or any change in or in the interpretation of
any law or regulation after the date hereof shall make it unlawful, or any
central bank or other governmental authority shall assert that it is unlawful,
for any Lender or its Eurodollar Lending Office to perform its obligations
hereunder to make Eurodollar Rate Advances or to continue to fund or maintain
Eurodollar Rate Advances hereunder, then, on notice thereof and demand therefor
by such Lender to the Borrower through the Paying Agent, (i) each Eurodollar
Rate Advance under each Facility under which such Lender has a Commitment will
automatically, upon such demand, Convert into a Base Rate Advance and (ii) the
obligation of the Appropriate Lenders to make, or to Convert Advances into,
Eurodollar Rate Advances shall be suspended until the Paying Agent shall notify
the Borrower that such Lender has determined that the circumstances causing such
suspension no longer exist.

                  (e)      All amounts paid hereunder shall be without
duplication of any amounts included within the definition of the term
"Eurodollar Rate".

                  SECTION 2.11. Payments and Computations. (a) The Borrower
shall make each payment hereunder and under the Notes, irrespective of any right
of counterclaim or set-off (except as otherwise provided in Section 2.15), not
later than 12:00 noon (New York City time) on the day when due in U.S. dollars
to the Paying Agent at the Paying Agent's Account in same day funds, with
payments being received by the Paying Agent after such time being deemed to have
been received on the next succeeding Business Day. The Paying Agent will
promptly thereafter cause like funds to be distributed (i) if such payment by
the Borrower is in respect of principal, interest, commitment fees or any other
obligation then payable hereunder and under the Notes to more than one Lender
Party, to such Lender Parties for the account of their respective Applicable
Lending Offices ratably in accordance with the amounts of such respective
obligations then payable to such Lender Parties and (ii) if such payment by the
Borrower is in respect of any obligation then payable hereunder to one Lender
Party, to such Lender Party for the account of its Applicable Lending Office, in
each case to be applied in accordance with the terms of this Agreement. Upon its
acceptance of an Assignment and Acceptance and recording of the information
contained therein in the Register pursuant to Section 8.07(d) or upon the
purchase by any Lender of any Swing Line Advance pursuant to Section 2.02(b),
from and after the effective date of such Assignment and Acceptance or purchase,
as the case may be, the Paying Agent shall make all payments hereunder and under
the Notes in respect of the interest assigned or purchased thereby to the Lender
Party assignee or purchaser thereunder, and, in the case of an Assignment and
Acceptance, the parties to any such Assignment and Acceptance shall make all
appropriate adjustments in such payments for periods prior to such effective
date directly between themselves.

                  (b)      The Borrower hereby authorizes each Lender Party and
each of its Affiliates, if and to the extent payment owed to such Lender Party
is not made when due hereunder (after giving effect to any period of grace) or,
in the case of a Lender, under the Note held by such Lender, to charge from time
to time, to the fullest extent permitted by law, against

                                       40

<PAGE>

any or all of the Borrower's accounts with such Lender Party or such Affiliate
any amount so due.

                  (c)      All computations of interest based on the Base Rate
shall be made by the Paying Agent on the basis of a year of 365 or 366 days, as
the case may be, and all computations of interest based on the Eurodollar Rate
or the Federal Funds Rate and of fees and Letters of Credit commissions shall be
made by the Paying Agent on the basis of a year of 360 days, in each case for
the actual number of days (including the first day but excluding the last day)
occurring in the period for which such interest, fees or commissions are
payable. Each determination by the Paying Agent of an interest rate, fee or
commission hereunder shall be conclusive and binding for all purposes, absent
manifest error.

                  (d)      Whenever any payment hereunder or under the Notes
shall be stated to be due on a day other than a Business Day, such payment shall
be made on the next succeeding Business Day, and such extension of time shall in
such case be included in the computation of payment of interest or commitment or
letter of credit fee or commission, as the case may be; provided, however, that,
if such extension would cause payment of interest on or principal of Eurodollar
Rate Advances to be made in the next following calendar month, such payment
shall be made on the next preceding Business Day.

                  (e)      Unless the Paying Agent shall have received notice
from the Borrower prior to the date on which any payment is due to any Lender
Party hereunder that the Borrower will not make such payment in full, the Paying
Agent may assume that the Borrower has made such payment in full to the Paying
Agent on such date and the Paying Agent may, in reliance upon such assumption,
cause to be distributed to each such Lender Party on such due date an amount
equal to the amount then due such Lender Party. If and to the extent the
Borrower shall not have so made such payment in full to the Paying Agent, each
such Lender Party shall repay to the Paying Agent forthwith on demand such
amount distributed to such Lender Party together with interest thereon, for each
day from the date such amount is distributed to such Lender Party until the date
such Lender Party repays such amount to the Paying Agent, at the Federal Funds
Rate.

                  (f)      If the Paying Agent receives funds for application to
the Obligations of the Loan Parties under the Loan Documents under circumstances
for which the Loan Documents do not specify the Advances or the Facility to
which, or the manner in which, such funds are to be applied, the Paying Agent
shall distribute such funds to each Lender Party ratably in accordance with such
Lender Party's Pro Rata Share of the sum of (i) the aggregate principal amount
of all Advances outstanding at such time and (ii) the aggregate Available Amount
of all Letters of Credit then due and payable at such time, in repayment or
prepayment of such of the outstanding Advances or other Obligations then owing
to such Lender Party and shall return any unused funds to the Borrower.

                  SECTION 2.12. Taxes. (a) Any and all payments by the Borrower
to or for the account of any Lender Party or any Agent hereunder or under the
Notes or any other Loan Document shall be made, in accordance with Section 2.11
or the applicable provisions of such other Loan Document, if any, free and clear
of and without deduction for any and all present or future taxes, levies,
imposts, deductions, charges or withholdings, and all liabilities with respect

                                       41

<PAGE>

thereto, excluding, in the case of each Lender Party and each Agent, taxes that
are imposed on its overall net income by the United States and taxes that are
imposed on its overall net income (and franchise taxes imposed in lieu thereof)
by the state or foreign jurisdiction under the laws of which such Lender Party
or such Agent, as the case may be, is organized or any political subdivision
thereof and, in the case of each Lender Party, taxes that are imposed on its
overall net income (and franchise taxes imposed in lieu thereof) by the state or
foreign jurisdiction of such Lender Party's Applicable Lending Office or any
political subdivision thereof (all such non-excluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities in respect of payments
hereunder or under the Notes being hereinafter referred to as "TAXES"). If the
Borrower shall be required by law to deduct any Taxes from or in respect of any
sum payable hereunder or under any Note or any other Loan Document to any Lender
Party or any Agent, (i) the sum payable by the Borrower shall be increased as
may be necessary so that after the Borrower and the Paying Agent have made all
required deductions (including deductions applicable to additional sums payable
under this Section 2.12) such Lender Party or such Agent, as the case may be,
receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make all such deductions and (iii)
the Borrower shall pay the full amount deducted to the relevant taxation
authority or other authority in accordance with applicable law.

                  (b)      In addition, the Borrower shall pay any present or
future stamp, documentary, excise, property or similar taxes, charges or levies
that arise from any payment made by the Borrower hereunder or under any Notes or
any other Loan Document or from the execution, delivery or registration of,
performance under, or otherwise with respect to, this Agreement, the Notes or
other Loan Documents (hereinafter referred to as "OTHER TAXES").

                  (c)      The Borrower shall indemnify each Lender Party and
each Agent for and hold them harmless against the full amount of Taxes and Other
Taxes, and for the full amount of taxes of any kind imposed by any jurisdiction
on amounts payable under this Section 2.12, imposed on or paid by such Lender
Party or such Agent (as the case may be) and any liability (including penalties,
additions to tax, interest and expenses) arising therefrom or with respect
thereto. This indemnification shall be made within 30 days from the date such
Lender Party or such Agent (as the case may be) makes written demand therefor.

                  (d)      Within 30 days after the date of any payment of
Taxes, the Borrower shall furnish to the Paying Agent, at its address referred
to in Section 8.02, the original or a certified copy of a receipt evidencing
such payment, to the extent such a receipt is issued therefor, or other written
proof of payment thereof that is reasonably satisfactory to the Paying Agent. In
the case of any payment hereunder or under the Notes or the other Loan Documents
by or on behalf of the Borrower through an account or branch outside the United
States or by or on behalf of a the Borrower by a payor that is not a United
States person, if the Borrower determines that no Taxes are payable in respect
thereof, the Borrower shall furnish, or shall cause such payor to furnish, to
the Paying Agent, at such address, an opinion of counsel acceptable to the
Paying Agent stating that such payment is exempt from Taxes. For purposes of
subsections (d) and (e) of this Section 2.12, the terms "UNITED STATES" and
"UNITED STATES PERSON" shall have the meanings specified in Section 7701 of the
Internal Revenue Code.

                                       42

<PAGE>

                  (e)      Each Lender Party organized under the laws of a
jurisdiction outside the United States shall, on or prior to the date of its
execution and delivery of this Agreement in the case of each Initial Lender
Party and on the date of the Assignment and Acceptance pursuant to which it
becomes a Lender Party in the case of each other Lender Party, and from time to
time thereafter as reasonably requested in writing by the Borrower or promptly
upon a change in any material fact disclosed on the applicable form or
certificate (but, in either case, only so long thereafter as such Lender Party
remains lawfully able to do so), provide each of the Paying Agent and the
Borrower with two original signed and complete Internal Revenue Service Forms
W-8BEN or W-8ECI (or in the case of a Lender Party entitled to claim exemption
from withholding of United States federal income tax under Section 871(h) or
881(c) of the Internal Revenue Code (A) a certificate stating that it is not (i)
a "bank" as defined in Section 881(c)(3)(A) of the Internal Revenue Code, (ii) a
10-percent shareholder (within the meaning of Section 871(h)(3)(B) of the
Internal Revenue Code) of the Borrower or (iii) a controlled foreign corporation
related to the Borrower (within the meaning of Section 864(d)(4) of the Internal
Revenue Code), and (B) a signed and complete Internal Revenue Service Form
W-8BEN), as appropriate, or any successor or other form prescribed by the
Internal Revenue Service, certifying that such Lender Party is exempt from or
entitled to a reduced rate of United States withholding tax on payments pursuant
to this Agreement or the Notes or any other Loan Document or, in the case of a
Lender Party that has certified that it is not a "bank", as described above,
certifying that such Lender Party is a foreign corporation, partnership, estate
or trust. If the forms provided by a Lender Party at the time such Lender Party
first becomes a party to this Agreement indicate a United States interest
withholding tax rate in excess of zero, withholding tax at such rate shall be
considered excluded from Taxes unless and until such Lender Party provides the
appropriate forms certifying that a lesser rate applies, whereupon withholding
tax at such lesser rate only shall be considered excluded from Taxes for periods
governed by such forms; provided, however, that if, at the effective date of the
Assignment and Acceptance pursuant to which a Lender Party becomes a party to
this Agreement, the Lender Party assignor was entitled to payments under
subsection (a) of this Section 2.12 in respect of United States withholding tax
with respect to interest paid at such date, then the term Taxes shall include
(in addition to withholding taxes that may be imposed in the future or other
amounts otherwise includable in Taxes) United States withholding tax, if any,
applicable with respect to the Lender Party assignee on such date to the extent
that payment would have been required under Section 2.12(a) in respect of such
United States withholding tax if the interest were paid to such Lender Party
assignor on such date. If any form or document referred to in this subsection
(e) requires the disclosure of information, other than information necessary to
compute the tax payable and information required on the date hereof by Internal
Revenue Service Form W-8BEN or W-8ECI or the related certificate described
above, that the applicable Lender Party reasonably considers to be confidential,
such Lender Party shall give notice thereof to the Borrower and shall not be
obligated to include in such form or document such confidential information.

                  (f)      For any period with respect to which a Lender Party
has failed to provide the Borrower with the appropriate form, certificate or
other document described in subsection (e) above (other than if such failure is
due to a change in law, or in the interpretation or application thereof,
occurring after the date on which a form, certificate or other document
originally was required to be provided or if such form, certificate or other
document otherwise is not required under subsection (e) above), such Lender
Party shall not be entitled to indemnification under subsection (a) or (c) of
this Section 2.12 with respect to Taxes imposed by the United States by

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<PAGE>

reason of such failure; provided, however, that should a Lender Party become
subject to Taxes because of its failure to deliver a form, certificate or other
document required hereunder, the Borrower shall take such steps as such Lender
Party shall reasonably request to assist such Lender Party to recover such
Taxes.

                  (g)      If the Borrower pays any amounts under this Section
2.12 to a Lender Party and such Lender Party determines in its reasonable
discretion that it has actually received or realized in connection therewith any
refund or any reduction of, or credit against, its tax liabilities in or with
respect to the taxable year in which the amount is paid (a "TAX BENEFIT"), such
Lender Party shall pay to the Borrower an amount that the Lender Party shall
reasonably determine is equal to the net benefit, after tax, which was obtained
by the Lender Party in such year as a consequence of such Tax Benefit; provided,
however, that (i) nothing in this Section 2.12(g) shall require the Lender Party
to disclose any confidential information to such Loan Party (including, without
limitation, its tax returns); and (ii) no Lender Party shall be required to pay
any amounts pursuant to this Section 2.12(g) at any time which a Default exists.

                  SECTION 2.13. Sharing of Payments, Etc. If any Lender Party
shall obtain at any time any payment (whether voluntary, involuntary, through
the exercise of any right of set-off, or otherwise, other than as a result of an
assignment pursuant to Section 8.07) (a) on account of Obligations due and
payable to such Lender Party hereunder and under the Notes and the other Loan
Documents at such time in excess of its ratable share (according to the
proportion of (i) the amount of such Obligations due and payable to such Lender
Party at such time to (ii) the aggregate amount of the Obligations due and
payable to all Lender Parties hereunder and under the Notes and the other Loan
Documents at such time) of payments on account of the Obligations due and
payable to all Lender Parties hereunder and under the Notes at such time
obtained by all the Lender Parties at such time or (b) on account of Obligations
owing (but not due and payable) to such Lender Party hereunder and under the
Notes and the other Loan Documents at such time in excess of its ratable share
(according to the proportion of (i) the amount of such Obligations owing to such
Lender Party at such time to (ii) the aggregate amount of the Obligations owing
(but not due and payable) to all Lender Parties hereunder and under the Notes
and the other Loan Documents at such time) of payments on account of the
Obligations owing (but not due and payable) to all Lender Parties hereunder and
under the Notes at such time obtained by all of the Lender Parties at such time,
such Lender Party shall forthwith purchase from the other Lender Parties such
interests or participating interests in the obligations due and payable or owing
to them, as the case may be, as shall be necessary to cause such purchasing
Lender Party to share the excess payment ratably with each of them; provided,
however, that if all or any portion of such excess payment is thereafter
recovered from such purchasing Lender Party, such purchase from each other
Lender Party shall be rescinded and such other Lender Party shall repay to the
purchasing Lender Party the purchase price to the extent of such Lender Party's
ratable share (according to the proportion of (i) the purchase price paid to
such Lender Party to (ii) the aggregate purchase price paid to all Lender
Parties) of such recovery together with an amount equal to such Lender Party's
ratable share (according to the proportion of (i) the amount of such other
Lender Party's required repayment to (ii) the total amount so recovered from the
purchasing Lender Party) of any interest or other amount paid or payable by the
purchasing Lender Party in respect of the total amount so recovered. The
Borrower agrees that any Lender Party so purchasing an interest or participating
interest from another Lender Party pursuant to this Section 2.13 may, to the
fullest extent permitted by law, exercise all its rights of

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<PAGE>

payment (including the right of set-off) with respect to such interest or
participating interest, as the case may be, as fully as if such Lender Party
were the direct creditor of the Borrower in the amount of such interest or
participating interest, as the case may be.

                  SECTION 2.14. Use of Proceeds. The proceeds of the Advances
and issuances of Letters of Credit shall be available (and the Borrower agrees
that it shall use such proceeds and Letters of Credit) solely (a) on the
Effective Date, to pay transaction fees and expenses incurred in connection
herewith, (b) on the Effective Date, to refinance the Existing Facility, (c)
from time to time, to fund cash distributions to the holders of the MLP Units;
provided that the aggregate amount of all Cash Distribution Advances outstanding
hereunder at any one time shall not exceed $25,000,000 and (d) from time to
time, to provide working capital and Letters of Credit for the Borrower and its
Subsidiaries and for other general business purposes of the Borrower and its
Subsidiaries, including, without limitation, to finance acquisitions and capital
expenditures of the Borrower and its Subsidiaries substantially as set forth in
the Business Plan delivered to the Paying Agent from time to time pursuant to
Section 5.03(d).

                  SECTION 2.15. Defaulting Lenders. (a) In the event that, at
any one time, (i) any Lender Party shall be a Defaulting Lender, (ii) such
Defaulting Lender shall owe a Defaulted Advance to the Borrower except for a
Defaulted Advance that is being contested in good faith by such Defaulting
Lender, and (iii) the Borrower shall be required to make any payment hereunder
or under any other Loan Document to or for the account of such Defaulting
Lender, then the Borrower may, so long as no Default shall occur or be
continuing at such time and to the fullest extent permitted by applicable law,
set off and otherwise apply the obligation of the Borrower to make such payment
to or for the account of such Defaulting Lender against the obligation of such
Defaulting Lender to make such Defaulted Advance. In the event that, on any
date, the Borrower shall so set off and otherwise apply its obligation to make
any such payment against the obligation of such Defaulting Lender to make any
such Defaulted Advance on or prior to such date, the amount so set off and
otherwise applied by the Borrower shall constitute for all purposes of this
Agreement and the other Loan Documents an Advance by such Defaulting Lender made
on the date of such setoff under the Facility pursuant to which such Defaulted
Advance was originally required to have been made pursuant to Section 2.01. Such
Advance shall be considered, for all purposes of this Agreement, to comprise
part of the Borrowing in connection with which such Defaulted Advance was
originally required to have been made pursuant to Section 2.01, even if the
other Advances comprising such Borrowing shall be Eurodollar Rate Advances on
the date such Advance is deemed to be made pursuant to this subsection (a). The
Borrower shall notify the Paying Agent at any time the Borrower exercises its
right of set-off pursuant to this subsection (a) and shall set forth in such
notice (A) the name of the Defaulting Lender and the Defaulted Advance required
to be made by such Defaulting Lender and (B) the amount set off and otherwise
applied in respect of such Defaulted Advance pursuant to this subsection (a).
Any portion of such payment otherwise required to be made by the Borrower to or
for the account of such Defaulting Lender which is paid by the Borrower, after
giving effect to the amount set off and otherwise applied by the Borrower
pursuant to this subsection (a), shall be applied by the Paying Agent as
specified in subsection (b) or (c) of this Section 2.15.

                  (b)      In the event that, at any one time, (i) any Lender
Party shall be a Defaulting Lender, (ii) such Defaulting Lender shall owe a
Defaulted Amount to any Agent or

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<PAGE>

any of the other Lender Parties and (iii) the Borrower shall make any payment
hereunder or under any other Loan Document to the Paying Agent for the account
of such Defaulting Lender, then the Paying Agent may, on its behalf or on behalf
of such other Agents or such other Lender Parties and to the fullest extent
permitted by applicable law, apply at such time the amount so paid by the
Borrower to or for the account of such Defaulting Lender to the payment of each
such Defaulted Amount to the extent required to pay such Defaulted Amount. In
the event that the Paying Agent shall so apply any such amount to the payment of
any such Defaulted Amount on any date, the amount so applied by the Paying Agent
shall constitute for all purposes of this Agreement and the other Loan Documents
payment, to such extent, of such Defaulted Amount on such date. Any such amount
so applied by the Paying Agent shall be retained by the Paying Agent or
distributed by the Paying Agent to such other Agents or such other Lender
Parties, ratably in accordance with the respective portions of such Defaulted
Amounts payable at such time to the Paying Agent, such other Agents and such
other Lender Parties and, if the amount of such payment made by the Borrower
shall at such time be insufficient to pay all Defaulted Amounts owing at such
time to the Paying Agent, such other Agents and such other Lender Parties, in
the following order of priority:

                  (i)      first, to the Agents for any Defaulted Amounts then
         owing to them, in their capacities as such, ratably in accordance with
         such respective Defaulted Amounts then owing to the Agents;

                  (ii)     second, to the Issuing Banks and the Swing Line Bank
         for any Defaulted Amounts then owing to them in their respective
         capacities as such, ratably in accordance with such respective
         Defaulted Amounts then owing to the Issuing Banks and the Swing Line
         Bank; and

                  (iii)    third, to any other Lender Parties for any Defaulted
         Amounts then owing to such other Lender Parties, ratably in accordance
         with such respective Defaulted Amounts then owing to such other Lender
         Parties.

Any portion of such amount paid by the Borrower for the account of such
Defaulting Lender remaining, after giving effect to the amount applied by the
Paying Agent pursuant to this subsection (b), shall be applied by the Paying
Agent as specified in subsection (c) of this Section 2.15.

                  (c)      In the event that, at any one time (i) any Lender
Party shall be a Defaulting Lender, (ii) such Defaulting Lender shall not owe a
Defaulted Advance or a Defaulted Amount and (iii) the Borrower, any Agent or any
other Lender Party shall be required to pay or distribute any amount hereunder
or under any other Loan Document to or for the account of such Defaulting
Lender, then the Borrower or such Agent or such other Lender Party shall pay
such amount to the Paying Agent to be held by the Paying Agent, to the fullest
extent permitted by applicable law, in escrow or the Paying Agent shall, to the
fullest extent permitted by applicable law, hold in escrow such amount otherwise
held by it. Any funds held by the Paying Agent in escrow under this subsection
(c) shall be deposited by the Paying Agent in an interest bearing account at a
bank (the "ESCROW BANK") selected by the Paying Agent at the time, in the name
and under the control of the Paying Agent, but subject to the provisions of this
subsection (c). The terms applicable to such account, including the rate of
interest payable with respect to the

                                       46
<PAGE>

credit balance of such account from time to time, shall be the Escrow Bank's
standard terms applicable to escrow accounts maintained with it. Any interest
credited to such account from time to time shall be held by the Paying Agent in
escrow under, and applied by the Paying Agent from time to time in accordance
with the provisions of, this subsection (c). The Paying Agent shall, to the
fullest extent permitted by applicable law, apply all funds so held in escrow
from time to time to the extent necessary to make any Advances required to be
made by such Defaulting Lender and to pay any amount payable by such Defaulting
Lender hereunder and under the other Loan Documents to the Paying Agent or any
other Lender Party, as and when such Advances or amounts are required to be made
or paid and, if the amount so held in escrow shall at any time be insufficient
to make and pay all such Advances and amounts required to be made or paid at
such time, in the following order of priority:

                  (i)      first, to the Agents for any amounts then due and
         payable by such Defaulting Lender to them hereunder, in their
         capacities as such, ratably in accordance with such respective amounts
         then due and payable to the Agents;

                  (ii)     second, to the Issuing Banks and the Swing Line Bank
         for any amounts then due and payable to them hereunder in their
         capacities as such, by such Defaulting Lender, ratably in accordance
         with such respective amounts then due and payable to the Issuing Banks
         and the Swing Line Bank;

                  (iii)    third, to any other Lender Parties for any amount
         then due and payable by such Defaulting Lender to such other Lender
         Parties hereunder, ratably in accordance with such respective amounts
         then due and payable to such other Lender Parties; and

                  (iv)     fourth, to the Borrower for any Advance then required
         to be made by such Defaulting Lender pursuant to a Commitment of such
         Defaulting Lender.

In the event that any Lender Party that is a Defaulting Lender shall, at any
time, cease to be a Defaulting Lender, any funds held by the Paying Agent in
escrow at such time with respect to such Lender Party shall be distributed by
the Paying Agent to such Lender Party and applied by such Lender Party to the
obligations owing to such Lender Party at such time under this Agreement and the
other Loan Documents ratably in accordance with the respective amounts of such
obligations outstanding at such time.

                  (d)      The rights and remedies against a Defaulting Lender
under this Section 2.15 are in addition to other rights and remedies that the
Borrower may have against such Defaulting Lender with respect to any Defaulted
Advance and that any Agent or any Lender Party may have against such Defaulting
Lender with respect to any Defaulted Amount.

                  SECTION 2.16. Evidence of Debt. (a) Each Lender Party shall
maintain in accordance with its usual practice an account or accounts evidencing
the indebtedness of the Borrower to such Lender resulting from each Advance
owing to such Lender Party from time to time, including the amounts of principal
and interest payable and paid to such Lender from time to time hereunder. The
Borrower agrees that upon notice by any Lender Party to the Borrower (with a
copy of such notice to the Paying Agent) to the effect that a promissory note or
other evidence of indebtedness is required or appropriate in order for such
Lender Party to evidence

                                       47

<PAGE>

(whether for purposes of pledge, enforcement or otherwise) the Advances owing
to, or to be made by, such Lender Party, the Borrower shall promptly execute and
deliver to such Lender Party, with a copy to the Paying Agent, a Note, in
substantially the form of Exhibit A hereto, payable to the order of such Lender
Party in a principal amount equal to the Revolving Credit Commitment of such
Lender Party. All references to Notes in the Loan Documents shall mean Notes, if
any, to the extent issued hereunder.

                  (b)      The Register maintained by the Paying Agent pursuant
to Section 8.07(d) shall include a control account, and a subsidiary account for
each Lender Party, in which accounts (taken together) shall be recorded (i) the
date and amount of each Borrowing made hereunder, the Type of Advances
comprising such Borrowing and, if appropriate, the Interest Period applicable
thereto, (ii) the terms of each Assignment and Acceptance delivered to and
accepted by it, (iii) the amount of any principal or interest due and payable or
to become due and payable from the Borrower to each Lender Party hereunder, and
(iv) the amount of any sum received by the Paying Agent from the Borrower
hereunder and each Lender Party's share thereof.

                  (c)      Entries made in good faith by the Paying Agent in the
Register pursuant to subsection (b) above, and by each Lender Party in its
account or accounts pursuant to subsection (a) above, shall be prima facie
evidence of the amount of principal and interest due and payable or to become
due and payable from the Borrower to, in the case of the Register, each Lender
Party and, in the case of such account or accounts, such Lender Party, under
this Agreement, absent manifest error; provided, however, that the failure of
the Paying Agent or such Lender Party to make an entry, or any finding that an
entry is incorrect, in the Register or such account or accounts shall not limit
or otherwise affect the obligations of the Borrower under this Agreement.

                  SECTION  2.17. Replacement of Certain Lenders. If any Lender
(a "SUBJECT LENDER") (a) is a Defaulting Lender that owes a Defaulted Advance to
the Borrower, (b) makes demand upon the Borrower for (or if the Borrower is
otherwise required to pay) amounts pursuant to Section 2.10 (a) or (b) or
Section 2.12 or (c) gives notice pursuant to Section 2.10(d) requiring a
Conversion of such Subject Lender's Eurodollar Rate Advances to Base Rate
Advances or suspending such Lender's obligation to make Advances as, or to
Convert or continue Advances into or as, Eurodollar Rate Advances, the Borrower
may, within 90 days after receipt by the Borrower of such demand or notice (or
the occurrence of such other event causing the Borrower to be required to pay
such compensation), as the case may be, give notice (a "REPLACEMENT NOTICE") in
writing to the Paying Agent and such Subject Lender of its intention to replace
such Subject Lender with an Eligible Assignee designated in such Replacement
Notice (a "REPLACEMENT LENDER"). Such Subject Lender shall, subject to the
payment to such Subject Lender of any amounts due pursuant to Sections 2.10(a)
and (b) and Section 2.12 and all other amounts then owing to it under the Loan
Documents assign, in accordance with Section 8.07, all of its Commitments,
Advances, Notes and other rights and obligations under this Agreement and all
other Loan Documents to such proposed Eligible Assignee. Promptly upon the
effective date of an assignment described above, the Borrower shall issue a
replacement Note or Notes, as the case may be, to such Replacement Lender and
such Replacement Lender shall become a "Lender" for all purposes under this
Agreement and the other Loan Documents.

                                       48

<PAGE>

                                   ARTICLE III

                              CONDITIONS OF LENDING

                  SECTION  3.01. Conditions Precedent to Initial Extension of
Credit. The obligation of each Lender to make an Advance or of any Issuing Bank
to issue a Letter of Credit on the occasion of the Initial Extension of Credit
hereunder is subject to the satisfaction of the following conditions precedent
before or concurrently with the Initial Extension of Credit:

                  (a)      The Paying Agent shall have received on or before the
         day of the Initial Extension of Credit the following, each dated such
         day (unless otherwise specified), in form and substance satisfactory to
         the Paying Agent (unless otherwise specified) and (except for the
         Notes) in sufficient copies for each Lender Party:

                           (i)      The Notes payable to the order of the
                  Lenders that have requested Notes prior to the Effective Date.

                           (ii)     A guaranty in substantially the form of
                  Exhibit D hereto (together with each other guaranty and
                  guaranty supplement delivered from time to time pursuant to
                  Section 5.01(i), in each case as amended, the "SUBSIDIARY
                  GUARANTY"), duly executed by each Subsidiary Guarantor.

                           (iii)    Certified copies of the resolutions of or on
                  behalf of each Loan Party approving the Transaction (to the
                  extent applicable to it) and each Transaction Document to
                  which it is or is to be a party and/or authorizing the general
                  partner, managing member or officers, as applicable, to act on
                  behalf of such limited partnership or limited liability
                  company, as the case may be, and of all documents evidencing
                  other necessary action (including, without limitation, all
                  necessary general partner, managing member, board of directors
                  or other similar action) and governmental and other third
                  party approvals and consents, if any, with respect to the
                  Transaction and each Transaction Document to which it is or is
                  to be a party.

                           (iv)     A copy of a certificate of the Secretary of
                  State of the jurisdiction of organization or formation of each
                  Loan Party and (if applicable) each general partner or
                  managing member of each Loan Party dated reasonably near the
                  date of the Initial Extension of Credit, certifying (A) as to
                  a true and correct copy of the charter or similar Constitutive
                  Documents of such Person and each amendment thereto on file in
                  such Secretary's office and (B) that (1) such amendments are
                  the only amendments to such Person's charter or similar
                  Constitutive Documents on file in such Secretary's office, (2)
                  such Person has paid all franchise taxes to the date of such
                  certificate and (C) such Person is duly formed and in good
                  standing or presently subsisting under the laws of the State
                  of the jurisdiction of its organization.

                           (v)      A copy of a certificate of the Secretary of
                  State of each jurisdiction in which any Loan Party or any
                  general partner or managing member, as applicable, of each
                  Loan Party is required to be qualified to do business, dated

                                       49

<PAGE>

                  reasonably near the date of the Initial Extension of Credit,
                  stating that such Person is duly qualified and in good
                  standing as a foreign corporation, limited partnership or
                  limited liability company, as applicable, in such State and
                  has filed all annual reports required to be filed to the date
                  of such certificate.

                           (vi)     A certificate of each Loan Party or on its
                  behalf by the managing general partner or managing member, as
                  applicable, of each Loan Party, signed on behalf of such
                  Person by its President or a Vice President and its Secretary
                  or any Assistant Secretary (or persons performing similar
                  functions), dated the date of the Initial Extension of Credit
                  (the statements made in which certificate shall be true on and
                  as of the date of the Initial Extension of Credit), certifying
                  as to (A) the absence of any amendments to the charter or
                  similar Constitutive Documents of such Person since the date
                  of the Secretary of State's certificate referred to in Section
                  3.01(a)(iv), (B) a true and correct copy of the bylaws or
                  limited liability company agreement (or similar Constitutive
                  Documents) as in effect on the date on which the resolutions
                  referred to in Section 3.01(a)(iii) were adopted and on the
                  date of the Initial Extension of Credit, (C) the due
                  organization or formation and good standing or valid existence
                  of such Person as a corporation, a limited liability company
                  or a limited partnership, as the case may be, organized or
                  formed under the laws of the jurisdiction of its organization
                  or formation, and the absence of any proceeding for the
                  dissolution or liquidation of such Person, (D) the truth of
                  the representations and warranties contained in the Loan
                  Documents as though made on and as of the date of the Initial
                  Extension of Credit and (E) the absence of any event occurring
                  and continuing, or resulting from the Initial Extension of
                  Credit, that constitutes a Default.

                           (vii)    A certificate of the Secretary or an
                  Assistant Secretary of each Loan Party or on its behalf by its
                  managing general partner or managing member, as applicable
                  certifying the names and true signatures of the officers or
                  managers, as applicable, of such Person authorized to sign on
                  its behalf each Transaction Document to which it is or is to
                  be a party and the other documents to be delivered hereunder
                  and thereunder.

                           (viii)   Certified copies of each of the Related
                  Documents, duly executed by or on behalf of the parties
                  thereto and in form and substance satisfactory to the Lender
                  Parties, together with all agreements, instruments and other
                  documents delivered in connection with the Note Purchase
                  Agreement as the Paying Agent shall request.

                           (ix)     A certificate, substantially in the form of
                  Exhibit E hereto (the "SOLVENCY CERTIFICATE"), attesting to
                  the Solvency of the Loan Parties before and after giving
                  effect to the Transaction, from the chief financial officer
                  (or person performing similar functions) of the Borrower.

                           (x)      A five year Business Plan in form and scope
                  satisfactory to the Lenders.

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<PAGE>

                           (xi)     A Notice of Borrowing or Notice of Issuance,
                  as applicable, relating to the Initial Extension of Credit.

                           (xii)    A favorable opinion of Katten Muchin Zavis
                  Rosenman, counsel for the Loan Parties, in substantially the
                  form of Exhibit F-1 hereto.

                           (xiii)   A favorable opinion of Thomas L. Pearson,
                  Senior Vice President-Law and Administration, General Counsel
                  and Secretary of the General Partner, in substantially the
                  form of Exhibit F-2 hereto.

                           (xiv)    A favorable opinion of Shearman & Sterling,
                  counsel for the Agents, in form and substance satisfactory to
                  the Agents.

                           (xv)     An intercreditor agreement in substantially
                  the form of Exhibit G hereto (as amended, the "INTERCREDITOR
                  AGREEMENT"), duly executed by the Paying Agent, the
                  noteholders under the Note Purchase Agreement, the Subsidiary
                  Guarantors and the Borrower.

                  (b)      The Lender Parties shall be satisfied with the
         capitalization of each Loan Party and the partnership or limited
         liability company structure of each Loan Party and its managing general
         partner or managing member, as applicable, including, without
         limitation, the terms and conditions of the Constitutive Documents and
         each class of Capital Stock in such Loan Party and each other agreement
         or instrument relating to such partnership structure, legal structure,
         and capitalization, and the tax status of the Borrower as being treated
         as a partnership for tax purposes.

                  (c)      The Lender Parties shall be satisfied that all
         Existing Debt (including, without limitation, the Existing Facility),
         other than Surviving Debt, has been prepaid, redeemed or defeased in
         full or otherwise satisfied and extinguished, all commitments relating
         thereto terminated and all liens and security interests granted in
         connection therewith released and that all Surviving Debt shall be on
         terms and conditions satisfactory to the Lender Parties.

                  (d)      Before giving effect to the Transaction, there shall
         have occurred no Material Adverse Change since December 31, 2002.

                  (e)      There shall exist no action, suit, investigation,
         litigation or proceeding affecting the General Partner, any Loan Party
         or any of its Subsidiaries pending or, to the best knowledge of the
         Borrower, threatened before any Governmental Authority that (i) would
         be reasonably likely to have a Material Adverse Effect other than the
         matters satisfactory to the Paying Agent and described on Schedule
         4.01(f) hereto (the "DISCLOSED LITIGATION") or (ii) purports to affect
         the legality, validity or enforceability of any Transaction Document or
         the consummation of the Transaction, and there shall have been no
         material adverse change in the status, or financial effect on the
         General Partner, any Loan Party or any of its Subsidiaries, of the
         Disclosed Litigation from that described on Schedule 4.01(f) hereto.

                                       51

<PAGE>

                  (f)      All Governmental Authorizations and third party
         consents and approvals necessary in connection with the Transaction
         shall have been obtained or shall be in the process of being obtained
         so long as it is not anticipated that such consents and approvals may
         not be obtained (in each case without the imposition of any conditions
         that are not acceptable to the Lender Parties) and those obtained shall
         be in effect (other than those the failure to obtain which would
         individually or collectively be reasonably likely not to have a
         Material Adverse Effect); and no law or regulation shall be applicable
         in the judgment of the Lender Parties, in each case that restrains,
         prevents or imposes materially adverse conditions upon the Transaction
         or the rights of the General Partner, the Loan Parties or their
         Subsidiaries freely to transfer or otherwise dispose of, or to create
         any Lien on, the Capital Stock in the Borrower or any properties or
         other assets of any Loan Party or its Subsidiaries.

                  (g)      The Borrower shall have paid all accrued fees of the
         Agents, the Joint Arrangers and the Lender Parties and all reasonable
         expenses of the Agents (including the reasonable fees and expenses of
         Shearman & Sterling, counsel to the Agents) to the extent such fees and
         expenses have been invoiced at least 24 hours prior to the date hereof
         or are specifically set forth in the Fee Letter.

                  (h)      The Senior Notes shall have received long-term senior
         unsecured non-credit enhanced debt ratings of at least BBB- from Fitch
         IBCA, Inc. and such rating shall remain in effect at the time of
         closing.

                  (i)      (i) The Borrower's and its Subsidiaries' employee
         benefit plans shall be, in all material respects, funded in accordance
         with the minimum statutory requirements, (ii) no "reportable event" (as
         defined in ERISA, but excluding events for which reporting has been
         waived) shall have occurred and be continuing as to any such employee
         benefit plan, and (iii) no termination of, or withdrawal from, any such
         employee benefit plan shall have occurred and be continuing or be
         contemplated.

                  SECTION 3.02. Conditions Precedent to Each Borrowing and
Issuance and Renewal. The obligation of each Appropriate Lender to make an
Advance (other than a Letter of Credit Advance made by an Issuing Bank or a
Lender pursuant to Section 2.03(c) and a Swing Line Advance made by a Lender
pursuant to Section 2.02(b)) on the occasion of each Borrowing (including the
initial Borrowing), and the obligation of each Issuing Bank to issue a Letter of
Credit (including the initial issuance) or renew a Letter of Credit and the
right of the Borrower to request a Swing Line Borrowing, shall be subject to the
further conditions precedent that on the date of such Borrowing or issuance or
renewal (a) the following statements shall be true (and each of the giving of
the applicable Notice of Borrowing, Notice of Swing Line Borrowing, Notice of
Issuance or Notice of Renewal and the acceptance by the Borrower of the proceeds
of such Borrowing or of such Letter of Credit or the renewal of such Letter of
Credit shall constitute a representation and warranty by the Borrower that both
on the date of such notice and on the date of such Borrowing or issuance or
renewal such statements are true):

                  (i)      the representations and warranties contained in each
         Loan Document are correct in all material respects on and as of such
         date, before and after giving effect to such Borrowing or issuance or
         renewal and to the application of the proceeds therefrom,

                                       52

<PAGE>

         as though made on and as of such date, other than any such
         representations or warranties that, by their terms, refer to an earlier
         date, in which case as of such earlier date; and

                  (ii)     no Default has occurred and is continuing, or would
         result from such Borrowing or issuance or renewal or from the
         application of the proceeds therefrom,

and (b) the Paying Agent shall have received such other approvals, opinions or
documents as any Appropriate Lender Party through the Paying Agent may
reasonably request.

                  SECTION 3.03. Determinations Under Section 3.01. For purposes
of determining compliance with the conditions specified in Section 3.01, each
Lender Party shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to the Lender Parties unless an
officer of the Paying Agent responsible for the transactions contemplated by the
Loan Documents shall have received notice from such Lender Party prior to the
Initial Extension of Credit specifying its objection thereto and, if the Initial
Extension of Credit consists of a Borrowing, such Lender Party shall not have
made available to the Paying Agent such Lender Party's ratable portion of such
Borrowing.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

                  SECTION  4.01. Representations and Warranties of the Borrower.
The Borrower represents and warrants as follows:

                  (a)      Each Loan Party and each of its Subsidiaries and each
         managing general partner or managing member of each Loan Party and each
         of its Subsidiaries (i) is a corporation, limited partnership or
         limited liability company, as the case may be, duly organized or
         formed, validly existing and in good standing or validly subsisting
         under the laws of the jurisdiction of its organization or formation,
         (ii) is duly qualified and in good standing as a foreign corporation,
         limited partnership or limited liability company in each other
         jurisdiction in which it owns or leases property or in which the
         conduct of its business requires it to so qualify or be licensed and
         (iii) has all requisite corporate, limited liability company or
         partnership power and authority (including, without limitation, all
         material Governmental Authorizations other than such Governmental
         Authorizations that are being obtained in the ordinary course of
         business or, that if not obtained, is not reasonably likely to result
         in a Material Adverse Effect) to own or lease and operate its
         properties and to carry on its business as now conducted and as
         proposed to be conducted. All of the outstanding Capital Stock in the
         Borrower has been validly issued, fully paid (to the extent required
         under the Partnership Agreement ) and non-assessable (except as such
         non-assessability may be affected by section 17-607 of the Delaware
         Revised Uniform Limited Partnership Act) and are owned by the Persons
         in the amounts specified on the applicable portion of Schedule 4.01(a)
         hereto free and clear of all Liens.

                  (b)      Set forth on Schedule 4.01(b) hereto is a complete
         and accurate list of all Subsidiaries of each Loan Party, showing as of
         the date hereof (as to each such

                                       53

<PAGE>

         Subsidiary) the status of each Subsidiary as a Restricted Subsidiary or
         Unrestricted Subsidiary, the jurisdiction of its organization, the
         number of shares of each class of its Capital Stock authorized, and the
         number outstanding, on the date hereof and the percentage of each such
         class of its Capital Stock owned (directly or indirectly) by such Loan
         Party and the number of shares covered by all outstanding options,
         warrants, rights of conversion or purchase and similar rights at the
         date hereof. All of the outstanding Capital Stock in each Loan Party's
         Subsidiaries has been validly issued, is fully paid (to the extent
         required by such Subsidiary's operating agreement, in the case of a
         limited liability company) and non-assessable (except as such
         non-assessability may be affected by section 18-607 of the Delaware
         Limited Liability Company Act, in the case of a limited liability
         company) and are owned by such Loan Party and/or one or more of its
         Subsidiaries free and clear of all Liens.

                  (c)      The execution, delivery and performance by each Loan
         Party of each Transaction Document to which it is or is to be a party,
         the execution, delivery and performance by the General Partner of each
         Transaction Document to which it is a party, and the consummation of
         the Transaction by each Loan Party to the extent applicable to it, are
         within such Loan Party's or such Loan Party's managing general
         partner's or managing member's corporate, partnership or limited
         liability company powers, have been duly authorized by all necessary
         action by or on behalf of the General Partner or such Loan Party
         (including, without limitation, all necessary partner, managing member
         or other similar action), and do not (i) contravene such Loan Party's
         or such Loan Party's managing general partner's or managing member's
         Constitutive Documents, (ii) violate any law, rule, regulation
         (including, without limitation, Regulations T, U and X of the Board of
         Governors of the Federal Reserve System), order, writ, judgment,
         injunction, decree, determination or award, (iii) conflict with or
         result in the breach of, or constitute a default or require any payment
         to be made under, any contract, loan agreement, indenture, mortgage,
         deed of trust, lease or other instrument binding on or affecting the
         General Partner, any Loan Party, any of its Subsidiaries or any of
         their properties or (iv) except for the Liens, if any, created under
         the Loan Documents, result in or require the creation or imposition of
         any Lien upon or with respect to any of the properties of any Loan
         Party or any of its Subsidiaries. Neither the General Partner, any Loan
         Party nor any of its Subsidiaries are in violation of any such law,
         rule, regulation, order, writ, judgment, injunction, decree,
         determination or award or in breach of any such contract, loan
         agreement, indenture, mortgage, deed of trust, lease or other
         instrument, the violation or breach of which would be reasonably likely
         to have a Material Adverse Effect.

                  (d)      No Governmental Authorization, and no notice to or
         filing with, any Governmental Authority or any other third party is
         required for (i) the due execution, delivery, recordation, filing or
         performance by or on behalf of any Loan Party or any general partner or
         managing member of any Loan Party of any Transaction Document to which
         it is or is to be a party, or for the consummation of the Transaction
         applicable to it or (ii) the exercise by any Agent or any Lender Party
         of its rights under the Loan Documents, except for the authorizations,
         approvals, actions, notices and filings listed on Schedule 4.01(d)
         hereto, all of which have been duly obtained, taken, given or made and

                                       54

<PAGE>

         are in full force and effect (other than those the failure to obtain
         which would not individually or collectively be reasonably likely to
         have a Material Adverse Effect).

                  (e)      This Agreement has been, and each other Transaction
         Document when delivered hereunder will have been, duly executed and
         delivered by each Loan Party party thereto. This Agreement is, and each
         other Transaction Document when delivered hereunder will be, the legal,
         valid and binding obligation of each Loan Party party thereto,
         enforceable against such Loan Party in accordance with its terms. The
         Transaction Documents to which the General Partner is a party have been
         duly executed and delivered by the General Partner. Each Transaction
         Document to which the General Partner is a party is the legal, valid
         and binding obligation of the General Partner, enforceable against the
         General Partner in accordance with its terms.

                  (f)      There is no action, suit, investigation, litigation
         or proceeding affecting the General Partner, any Loan Party or any of
         its Subsidiaries, including any Environmental Action, pending or, to
         the best knowledge of the Borrower, threatened before any Governmental
         Authority or arbitrator that (i) would be reasonably expected to be
         adversely determined, and if so determined would be reasonably expected
         to have a Material Adverse Effect except as set forth on Schedule
         4.01(f) hereto, or (ii) purports to affect the legality, validity or
         enforceability of any Transaction Document or the consummation of the
         Transaction applicable to the General Partner or such Loan Party, and
         there has been no material adverse change in the status, or financial
         effect on the General Partner, any Loan Party or any of its
         Subsidiaries, of the Disclosed Litigation from that described on
         Schedule 4.01(f) hereto.

                  (g)      The Consolidated balance sheet of the Borrower and
         its Subsidiaries and of the MLP and its Subsidiaries, in each case, as
         at December 31, 2002 and the related Consolidated statement of income
         and Consolidated statement of cash flows of the Borrower and its
         Subsidiaries and of the MLP and its Subsidiaries, in each case, for the
         fiscal year then ended, accompanied by an unqualified opinion of
         Deloitte & Touche LLP, independent public accountants, and the
         Consolidated balance sheet of the Borrower and its Subsidiaries and of
         the MLP and its Subsidiaries, in each case, as at June 30, 2003, and
         the related Consolidated statement of income and Consolidated statement
         of cash flows of the Borrower and its Subsidiaries and of the MLP and
         its Subsidiaries, in each case, for the six months then ended, duly
         certified by the chief financial officer (or person performing similar
         functions) of the managing general partner of the Borrower or of the
         MLP, as applicable, copies of which have been furnished to each Lender
         Party, fairly present, subject, in the case of said balance sheet as at
         June 30, 2003, and said statements of income and cash flows for the six
         months then ended, to year-end audit adjustments, the Consolidated
         financial condition of the Borrower and its Subsidiaries and of the MLP
         and its Subsidiaries, in each case, as at such dates and the
         Consolidated results of operations of the Borrower and its Subsidiaries
         and of the MLP and its Subsidiaries, in each case, for the periods
         ended on such dates, all in accordance with generally accepted
         accounting principles applied on a consistent basis, and since December
         31, 2002, there has been no Material Adverse Change.

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                  (h)      The Consolidated and consolidating forecasted balance
         sheets, statements of income and statements of cash flows of the
         Borrower and its Subsidiaries delivered to the Lender Parties in the
         Information Memorandum prior to the Effective Date and pursuant to
         Section 5.03 were prepared in good faith on the basis of the
         assumptions stated therein, which assumptions were fair in light of the
         conditions existing at the time of delivery of such forecasts, and
         represented, at the time of delivery, the Borrower's best estimate of
         its future financial performance.

                  (i)      Neither the Information Memorandum nor any other
         written information, exhibit or report furnished by or on behalf of any
         Loan Party to any Agent or any Lender Party in connection with the
         negotiation and syndication of the Loan Documents or pursuant to the
         terms of the Loan Documents, when taken as a whole, contained any
         untrue statement of a material fact or omitted to state a material fact
         necessary to make the statements made therein not misleading in light
         of the circumstances under which the same were made.

                  (j)      The Borrower is not engaged in the business of
         extending credit for the purpose of purchasing or carrying Margin
         Stock, and no proceeds of any Advance or drawings under any Letter of
         Credit will be used to purchase or carry any Margin Stock or to extend
         credit to others for the purpose of purchasing or carrying any Margin
         Stock.

                  (k)      Neither the Borrower nor any of its Subsidiaries is
         an "investment company", or an "affiliated person" of, or "promoter" or
         "principal underwriter" for, an "investment company", as such terms are
         defined in the Investment Company Act of 1940, as amended. Neither any
         Loan Party nor any of its Subsidiaries is a "holding company", or a
         "subsidiary company" of a "holding company", or an "affiliate" of a
         "holding company" or of a "subsidiary company" of a "holding company",
         as such terms are defined in the Public Utility Holding Company Act of
         1935, as amended. Neither the making of any Advances, nor the issuance
         of any Letters of Credit, nor the application of the proceeds or
         repayment thereof by the Borrower, nor the consummation of the other
         transactions contemplated by the Transaction Documents, will violate
         any provision of any such Act or any rule, regulation or order of the
         Securities and Exchange Commission thereunder.

                  (l)      Neither the Borrower nor any of its Subsidiaries is a
         party to any indenture, loan or credit agreement or any lease or other
         agreement or instrument or subject to any charter or corporate
         restriction that would be reasonably likely to have a Material Adverse
         Effect.

                  (m)      Each Loan Party is, individually and together with
         its Subsidiaries, Solvent.

                  (n)      (i) Set forth on Schedule 4.01(n) hereto is a
         complete and accurate list of all Plans and Multiemployer Plans.

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<PAGE>

                  (ii)     No ERISA Event has occurred or is reasonably expected
         to occur with respect to any Plan which could reasonably be expected to
         result in a Material Adverse Effect.

                  (iii)    Schedule B (Actuarial Information) to the most recent
         annual report (Form 5500 Series) for each Plan, copies of which have
         been filed with the Internal Revenue Service and furnished to the
         Paying Agent, is complete and accurate and fairly presents the funding
         status of such Plan, and since the date of such Schedule B there has
         been no change in such funding status which could reasonably be
         expected to result in a Material Adverse Effect.

                  (iv)     Neither any Loan Party nor any ERISA Affiliate has
         incurred or is reasonably expected to incur any Withdrawal Liability to
         any Multiemployer Plan which could reasonably be expected to result in
         a Material Adverse Effect.

                  (v)      Neither any Loan Party nor any ERISA Affiliate has
         been notified by the sponsor of a Multiemployer Plan that such
         Multiemployer Plan is in reorganization or has been terminated, within
         the meaning of Title IV of ERISA, and no such Multiemployer Plan is
         reasonably expected to be in reorganization or to be terminated, within
         the meaning of Title IV of ERISA which could reasonably be expected to
         result in a Material Adverse Effect.

                  (o)      (i)      Except as set forth on Part I of Schedule
         4.01(o) hereto, the operations and properties of each Loan Party and
         each of its Subsidiaries comply in all material respects with all
         applicable Environmental Laws and Environmental Permits, all past
         non-compliance with such Environmental Laws and Environmental Permits
         has been resolved without ongoing obligations or costs, and no
         circumstances exist that would be reasonably likely to (A) form the
         basis of an Environmental Action against any Loan Party or any of its
         Subsidiaries or any of their properties that could have a Material
         Adverse Effect or (B) cause any such property to be subject to any
         restrictions on ownership, occupancy, use or transferability under any
         Environmental Law.

                           (ii)     Except as set forth on Part II of Schedule
         4.01(o) hereto, none of the properties currently or formerly owned or
         operated by any Loan Party or any of its Subsidiaries is listed or
         proposed for listing on the NPL or on the CERCLIS or any analogous
         foreign, state or local list or is adjacent to any such property; there
         are no and never have been any underground or aboveground storage tanks
         or any surface impoundments, septic tanks, pits, sumps or lagoons in
         which Hazardous Materials are being or have been treated, stored or
         disposed on any property currently owned or operated by any Loan Party
         or any of its Subsidiaries or, to the best of its knowledge, on any
         property formerly owned or operated by any Loan Party or any of its
         Subsidiaries; there is no asbestos or asbestos-containing material on
         any property currently owned or operated by any Loan Party or any of
         its Subsidiaries; and Hazardous Materials have not been released,
         discharged or disposed of on any property currently or formerly owned
         or operated by any Loan Party or any of its Subsidiaries.

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<PAGE>

                           (iii)    Except as set forth on Part III of Schedule
         4.01(o) hereto, neither any Loan Party nor any of its Subsidiaries is
         undertaking (or has had undertaken on its behalf), and has not
         completed, either individually or together with other potentially
         responsible parties, any investigation or assessment or remedial or
         response action relating to any actual or threatened release, discharge
         or disposal of Hazardous Materials at any site, location or operation,
         either voluntarily or pursuant to the order of any governmental or
         regulatory authority or the requirements of any Environmental Law; and
         all Hazardous Materials generated, used, treated, handled or stored at,
         or transported to or from, any property currently or formerly owned or
         operated by any Loan Party or any of its Subsidiaries have been
         disposed of in a manner not reasonably expected to result in material
         liability to any Loan Party or any of its Subsidiaries.

                  (p)      (i) Each Loan Party and each of its Subsidiaries and
         Affiliates has filed, has caused to be filed or has been included in
         all tax returns (Federal, state, local and foreign) required to be
         filed and has paid all taxes shown thereon to be due, together with
         applicable interest and penalties.

                           (ii)     Set forth on Schedule 4.01(p) hereto is a
         complete and accurate list, as of the date hereof, of each taxable year
         of each Loan Party and each of its Subsidiaries and Affiliates for
         which Federal income tax returns have been filed and for which the
         expiration of the applicable statute of limitations for assessment or
         collection has not occurred by reason of extension or otherwise (an
         "OPEN YEAR").

                           (iii)    The aggregate unpaid amount, as of the date
         hereof, of adjustments to the Federal income tax liability of each Loan
         Party and each of its Subsidiaries and Affiliates proposed by the
         Internal Revenue Service with respect to Open Years does not exceed $0.
         No issues have been raised by the Internal Revenue Service in respect
         of Open Years that, in the aggregate, would be reasonably likely to
         have a Material Adverse Effect.

                           (iv)     The aggregate unpaid amount, as of the date
         hereof, of adjustments to the state, local and foreign tax liability of
         each Loan Party and its Subsidiaries and Affiliates proposed by all
         state, local and foreign taxing authorities (other than amounts arising
         from adjustments to Federal income tax returns) does not exceed $0. No
         issues have been raised by such taxing authorities that, in the
         aggregate, would be reasonably likely to have a Material Adverse
         Effect.

                           (v)      Each of the Borrower and the MLP will be
         treated as a partnership for Federal income tax purposes.

                  (q)      Neither the business nor the properties of the
         Borrower or any of its Subsidiaries are affected by any fire,
         explosion, accident, strike, lockout or other labor dispute, drought,
         storm, hail, earthquake, embargo, act of God or of the public enemy or
         other casualty (whether or not covered by insurance) that would be
         reasonably likely to have a Material Adverse Effect.

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                  (r)      Set forth on Schedule 4.01(r) hereto is a complete
         and accurate list of all Existing Debt (other than Surviving Debt),
         showing as of the date hereof the obligor and the principal amount
         outstanding thereunder.

                  (s)      Set forth on Schedule 4.01(s) hereto is a complete
         and accurate list of all Surviving Debt, showing as of the date hereof
         the obligor and the principal amount outstanding thereunder, the
         maturity date thereof and the amortization schedule (if any) therefor.

                  (t)      Set forth on Schedule 4.01(t) hereto is a complete
         and accurate list of all Liens on the property or assets of the
         Borrower or any of its Subsidiaries, showing as of the date hereof the
         lienholder thereof, the principal amount of the obligations secured
         thereby and the property or assets of the Borrower or such Subsidiary
         subject thereto.

                  (u)      Set forth on Schedule 4.01(u) hereto is a complete
         and accurate list of all Investments consisting of Debt or equity held
         by the Borrower or any of its Subsidiaries on the date hereof, showing
         as of the date hereof the amount, obligor or issuer and maturity, if
         any, thereof.

                  (v)      (i)      The Borrower and its Subsidiaries own or
         possess all licenses, permits, franchises, authorizations, patents,
         copyrights, service marks, trademarks and trade names, or rights
         thereto, for which the failure so to do, individually or in the
         aggregate, would reasonably be likely to have a Material Adverse
         Effect, without known conflict with the rights of others, (ii) to the
         best knowledge of the Borrower, no product or practice of the Borrower
         or any of its Subsidiaries infringes in any material respect on any
         license, permit, franchise, authorization, patent, copyright, service
         mark, trademark, trade name or other right owned by any other Person,
         and (iii) to the best knowledge of the Borrower, there is no material
         violation by any Person of any right of the Borrower of any of its
         Subsidiaries with respect to any patent, copyright, service mark,
         trademark, trade name or other right owned or used by the Borrower or
         any of its Subsidiaries.

                  (w)      To the best knowledge of the Borrower, the Borrower
         and its Subsidiaries maintain adequate reserves for future costs
         associated with any lung disease claim alleging pneumoconiosis or
         silicosis or arising out of exposure or alleged exposure to coal dust
         or the coal mining environment, and such reserves are not less than
         those required by GAAP.

                  (x)      The Borrower's obligations under this Agreement and
         the Notes and each Subsidiary Guarantor's obligations under the
         Subsidiary Guaranty, will, upon the execution and delivery of the Notes
         and the execution and delivery of such Subsidiary Guaranty,
         respectively, rank pari passu, without preference or priority, with all
         of the other outstanding unsecured and unsubordinated Debt of the
         Borrower or of such Subsidiary Guarantor, as the case may be.

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<PAGE>

                                    ARTICLE V

                            COVENANTS OF THE BORROWER

                  SECTION 5.01. Affirmative Covenants. So long as any Advance or
any other monetary obligation of any Loan Party under any Loan Document shall
remain unpaid, any Letter of Credit shall be outstanding or any Lender Party
shall have any Commitment hereunder, the Borrower will:

                  (a)      Compliance with Laws, Etc. Comply, and cause each of
         its Subsidiaries to comply, in all material respects, with all
         applicable laws, rules, regulations and orders, such compliance to
         include, without limitation, compliance with ERISA, except to the
         extent failure so to comply, individually or in the aggregate, would
         not reasonably be expected to have a Material Adverse Effect.

                  (b)      Payment of Taxes, Etc. Pay and discharge, and cause
         each of its Subsidiaries to pay and discharge, before the same shall
         become delinquent, (i) all taxes, assessments and governmental charges
         or levies imposed upon it or upon its property and (ii) all lawful
         claims that, if unpaid, might by law become a Lien upon its property,
         except to the extent failure to so pay or discharge, individually or in
         the aggregate, would not reasonably be expected to have a Material
         Adverse Effect; provided, however, that neither the Borrower nor any of
         its Subsidiaries shall be required to pay or discharge any such tax,
         assessment, charge or claim that is being contested in good faith and
         by proper proceedings and as to which appropriate reserves are being
         maintained, unless and until any Lien resulting therefrom attaches to
         its property and becomes enforceable against its other creditors.

                  (c)      Compliance with Environmental Laws. Comply, and cause
         each of its Subsidiaries and all lessees and other Persons operating or
         occupying its properties to comply, in all material respects, with all
         applicable Environmental Laws and Environmental Permits; obtain and
         renew and cause each of its Subsidiaries to obtain and renew all
         material Environmental Permits necessary for its operations and
         properties; and conduct, and cause each of its Subsidiaries to conduct,
         any investigation, study, sampling and testing, and undertake any
         cleanup, removal, remedial or other action necessary to remove and
         clean up all Hazardous Materials from any of its properties, in
         accordance in all material respects, with the requirements of all
         Environmental Laws; provided, however, that neither the Borrower nor
         any of its Subsidiaries shall be required to undertake any such
         cleanup, removal, remedial or other action to the extent that its
         obligation to do so is being contested in good faith and by proper
         proceedings and appropriate reserves are being maintained with respect
         to such circumstances.

                  (d)      Maintenance of Insurance. Maintain, and cause each of
         its Subsidiaries to maintain, insurance with responsible and reputable
         insurance companies or associations in such amounts and covering such
         risks as is usually carried by companies engaged in similar businesses
         and owning similar properties in the same general areas in which the
         Borrower or such Subsidiary operates, except to the extent failure to
         maintain such insurance, individually or in the aggregate, would not
         reasonably be expected to have a

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<PAGE>

         Material Adverse Effect or except to the extent such risks are
         self-insured in a manner and in an amount consistent with sound
         business practices and customary industry standards.

                  (e)      Preservation of Partnership or Limited Liability
         Company Existence, Etc. Preserve and maintain, and cause each of its
         Subsidiaries to preserve and maintain, its existence, legal structure,
         legal name (in the case of the Borrower), rights (charter and
         statutory), permits, licenses, approvals, privileges, franchises and
         intellectual property; provided, however, that the Borrower and its
         Subsidiaries may consummate any merger or consolidation permitted under
         Section 5.02(d) and; provided further that neither the Borrower nor any
         of its Subsidiaries shall be required to preserve any right, permit,
         license, approval, privilege, franchise or intellectual property if the
         board of directors (or persons performing similar functions) of or on
         behalf of the Borrower or such Subsidiary shall determine that the
         preservation thereof is no longer desirable in the conduct of the
         business of the Borrower or such Subsidiary, as the case may be, and
         that the loss thereof, individually or in the aggregate, would not
         reasonably be expected to have a Material Adverse Effect.

                  (f)      Visitation Rights. At any reasonable time and from
         time to time upon reasonable notice, permit any of the Agents or any of
         the Lender Parties, or any agents or representatives thereof, to
         examine and make copies of and abstracts from the records and books of
         account of, and visit the properties of, the Borrower and any of its
         Subsidiaries, and to discuss the affairs, finances and accounts of the
         Borrower and any of its Subsidiaries with any of their officers or
         directors and with their independent certified public accountants.

                  (g)      Keeping of Books. Keep, and cause each of its
         Subsidiaries to keep, proper books of record and account, in which full
         and correct entries shall be made of all financial transactions and the
         assets and business of the Borrower and each such Subsidiary in
         accordance with GAAP.

                  (h)      Maintenance of Properties, Etc. Maintain and
         preserve, and cause each of its Subsidiaries to maintain and preserve,
         all of its properties that are used or useful in the conduct of its
         business in good working order and condition, ordinary wear and tear
         excepted, except to the extent the failure to so maintain or preserve
         such properties, individually or in the aggregate, would not reasonably
         be expected to have a Material Adverse Effect.

                  (i)      Covenant to Guarantee Obligations. Upon the formation
         or acquisition by the Borrower of any new direct or indirect Restricted
         Subsidiary that is a Domestic Subsidiary, the Borrower shall, in each
         case at the Borrower's expense (i) within 10 days after such formation
         or acquisition, cause each such Restricted Subsidiary, and cause each
         direct and indirect parent of such Restricted Subsidiary (if it has not
         already done so), to duly execute and deliver to the Paying Agent a
         guaranty or guaranty supplement, in the form of Exhibit D hereto in the
         case of a guaranty, and otherwise in form and substance reasonably
         satisfactory to the Paying Agent in the case of a supplement,
         guaranteeing the other Loan Parties' obligations under the Loan
         Documents and (ii) at

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         any time and from time to time, promptly execute and deliver any and
         all further instruments and documents and take all such other action as
         the Paying Agent may deem necessary or desirable in obtaining the full
         benefits of such guaranties.

                  (j)      Further Assurances. (i) Promptly upon request by the
         Paying Agent, or any Lender Party through the Paying Agent, correct,
         and cause each of its Subsidiaries promptly to correct, any material
         defect or error (as to which both the Borrower and the Paying Agent
         agree in good faith constitutes a defect or error) that may be
         discovered in any Loan Document or in the execution, acknowledgment,
         filing or recordation thereof, and

                  (ii)     Promptly upon request by the Paying Agent, or any
         Lender Party through the Paying Agent, take such action as the Paying
         Agent, or any Lender Party through the Paying Agent, may reasonably
         require from time to time in order to carry out more effectively the
         purposes of the Loan Documents.

                  (k)      Performance of Related Documents. Perform and
         observe, and cause each of its Subsidiaries to perform and observe, all
         of the terms and provisions of each Related Document to be performed or
         observed by it, maintain each such Related Document in full force and
         effect, enforce such Related Document in accordance with its terms,
         take all such action to such end as may be from time to time requested
         by the Paying Agent and, upon request of the Paying Agent, make to each
         other party to each such Related Document such demands and requests for
         information and reports or for action as any Loan Party or any of its
         Subsidiaries is entitled to make under such Related Document, except,
         in any case, where the failure to do so, either individually or in the
         aggregate, would not be reasonably likely to have a Material Adverse
         Effect.

                  (l)      Preparation of Environmental Reports. At the request
         of the Paying Agent from time to time and upon the occurrence and
         during the continuance of an Event of Default, provide to the Lender
         Parties within 60 days after such request, at the expense of the
         Borrower, an environmental site assessment report for any of its or its
         Subsidiaries' properties described in such request, prepared by an
         environmental consulting firm reasonably acceptable to the Paying
         Agent, indicating the presence or absence of Hazardous Materials and
         the estimated cost of any compliance, removal or remedial action in
         connection with any Hazardous Materials on such properties; without
         limiting the generality of the foregoing, if the Paying Agent
         determines in its good faith and reasonable judgment at any time that a
         material risk exists that any such report will not be provided within
         the time referred to above, the Paying Agent may, after written notice
         to the Borrower, retain an environmental consulting firm to prepare
         such report at the expense of the Borrower, unless the Borrower shall
         have given adequate assurances reasonably acceptable to the Paying
         Agent within three Business Days of such notice that such a report will
         be delivered within such 60-day period, and the Borrower hereby grants
         and agrees to cause any Subsidiary that owns any property described in
         such request to grant at the time of such request to the Paying Agent,
         the Lender Parties, such firm and any agents or representatives thereof
         an irrevocable non-exclusive license, subject to the rights of tenants,
         to enter onto their respective properties to undertake such an
         assessment.

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<PAGE>

                  (m)      Compliance with Terms of Leaseholds. Make all
         payments and otherwise perform all obligations in respect of all leases
         of real property to which the Borrower or any of its Restricted
         Subsidiaries is a party, keep such leases in full force and effect and
         not allow such leases to lapse or be terminated or any rights to renew
         such leases to be forfeited or canceled, notify the Paying Agent of any
         default by any party with respect to such leases and cooperate with the
         Paying Agent in all respects to cure any such default, and cause each
         of its Subsidiaries to do so, except, in any case, where the failure to
         do so, either individually or in the aggregate, would not be reasonably
         likely to have a Material Adverse Effect.

                  (n)      Maintenance of Controlled Reserve Base . Maintain a
         controlled reserve base of sufficient mineable tonnage of coal such
         that the ratio of aggregate controlled mineable tons of coal over
         current annual production levels of tons of coal per year is greater
         than 125% of the remaining duration of the Senior Notes issued pursuant
         to the Note Purchase Agreement. For purposes of this Section 5.01(n), a
         "controlled reserve base" of coal denotes the aggregate of coal
         reserves which may be economically and legally mined by the Borrower or
         a Restricted Subsidiary at the time of the reserve determination. In
         making any determination of reserves for the purpose of this Section
         5.01(n), the Borrower may include properties ("OPTION PROPERTIES")
         which may be acquired by the Borrower or a Restricted Subsidiary under
         a valid and enforceable option or purchase contract which is subject to
         no conditions other than the payment of the purchase price provided for
         under such option or contract (the "CONTRACT PRICE"); provided that to
         the extent and for so long as the Borrower shall elect to include
         Option Properties in any such determination, (x) the amount equal to
         the Contract Price could then be incurred as Debt under the provisions
         of Section 10.1(a) of the Note Purchase Agreement (the "NOTIONAL DEBT")
         and (y) assuming for all purposes of Sections 10.1(a) and 10.4(a)(ii)
         of the Note Purchase Agreement that an amount equal to all such
         Notional Debt was considered to be outstanding.

                  SECTION 5.02. Negative Covenants. So long as any Advance or
any other monetary obligation of any Loan Party under any Loan Document shall
remain unpaid, any Letter of Credit shall be outstanding or any Lender Party
shall have any Commitment hereunder, the Borrower will not, at any time:

                  (a)      Liens, Etc. Create, incur, assume or suffer to exist,
         or permit any of its Restricted Subsidiaries to create, incur, assume
         or suffer to exist, any Lien on or with respect to any of its
         properties of any character (including, without limitation, accounts)
         whether now owned or hereafter acquired, or sign or file or suffer to
         exist, or permit any of its Restricted Subsidiaries to sign or file or
         suffer to exist, under the Uniform Commercial Code of any jurisdiction,
         a financing statement that names the Borrower or any of its Restricted
         Subsidiaries as debtor, or sign or suffer to exist, or permit any of
         its Restricted Subsidiaries to sign or suffer to exist, any security
         agreement authorizing any secured party thereunder to file such
         financing statement, or assign, or permit any of its Restricted
         Subsidiaries to assign, any accounts or other right to receive income,
         except:

                           (i)      Permitted Liens;

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                           (ii)     other Liens incurred in the ordinary course
                  of business securing obligations in an amount not to exceed
                  $10,000,000;

                           (iii)    Liens existing on the date hereof and
                  described on Schedule 4.01(t) hereto;

                           (iv)     non-recourse Liens upon or in real property
                  or equipment acquired or held by the Borrower or any of its
                  Restricted Subsidiaries in the ordinary course of business to
                  secure the purchase price of such property or equipment or to
                  secure non-recourse, tax-exempt Debt incurred solely for the
                  purpose of financing the acquisition, construction or
                  improvement of any such property or equipment to be subject to
                  such Liens, or Liens existing on any such property or
                  equipment at the time of acquisition (other than any such
                  Liens created in contemplation of such acquisition that do not
                  secure the purchase price), or extensions, renewals or
                  replacements of any of the foregoing for the same or a lesser
                  amount; provided, however, that no such Lien shall extend to
                  or cover any property other than the property or equipment
                  being acquired, constructed or improved, and no such
                  extension, renewal or replacement shall extend to or cover any
                  property not theretofore subject to the Lien being extended,
                  renewed or replaced;

                           (v)      Liens arising in connection with Capital
                  Leases permitted under Section 5.02(b)(iii)(G); provided that
                  no such Lien shall extend to or cover any assets other than
                  the assets subject to such Capital Leases;

                           (vi)     the replacement, extension or renewal of any
                  Lien permitted by clauses (iii) through (v) above upon or in
                  the same property theretofore subject thereto or the
                  replacement, extension or renewal (without increase in the
                  amount or change in any direct or contingent obligor) of the
                  Debt secured thereby;

                           (vii)    Liens on personal property leased under
                  leases (including synthetic leases) entered into by the
                  Borrower which are accounted for as operating leases in
                  accordance with GAAP to the extent not prohibited under
                  Section 5.02(h);

                           (viii)   easements, exceptions or reservations in any
                  property of the Borrower or any Restricted Subsidiary granted
                  or reserved for the purpose of pipelines, roads, the removal
                  of oil, gas, coal or other minerals, and other like purposes,
                  or for the joint or common use of real property, facilities
                  and equipment, which are incidental to, and do not materially
                  interfere with, the ordinary conduct of the business of the
                  Borrower or any of its Restricted Subsidiaries;

                           (ix)     Liens on documents of title and the property
                  covered thereby securing obligations in respect of letters of
                  credit to the extent not prohibited under Section 5.02(b); and

                           (x)      Liens on property or assets of the Borrower
                  or any of its Restricted Subsidiaries securing Debt owing to
                  the Borrower or to a Wholly Owned

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<PAGE>

                  Restricted Subsidiary in an aggregate principal amount not to
                  exceed $10,000,000; provided that no promissory note
                  evidencing such intercompany Debt shall be pledged to any
                  other Person as security for any Debt or any other obligation
                  of the Borrower or such Restricted Subsidiary.

                  (b)      Debt. Create, incur, assume or suffer to exist, or
         permit any of its Restricted Subsidiaries to create, incur, assume or
         suffer to exist, any Debt, except:

                           (i)      in the case of the Borrower,

                                    (A)      Debt owed to a Wholly Owned
                           Restricted Subsidiary of the Borrower, and

                                    (B)      other unsecured Debt incurred in
                           the ordinary course of business aggregating not more
                           than $35,000,000 at any time outstanding other than
                           Guaranties or other contingent obligations of the
                           Borrower with respect to any Debt or other obligation
                           of any Unrestricted Subsidiary; provided that (w) the
                           Borrower shall be in pro forma compliance with the
                           covenants contained in Section 5.04, calculated based
                           on the financial statements most recently delivered
                           to the Lender Parties pursuant to Section 5.03 and as
                           though such Debt had been incurred at the beginning
                           of the four-quarter period covered thereby, as
                           evidenced by a certificate of the chief financial
                           officer (or person performing similar functions) of
                           the Borrower delivered to the Paying Agent
                           demonstrating such compliance, (x) such unsecured
                           Debt ranks junior to or pari passu with the
                           Facilities, (y) such unsecured Debt matures, and does
                           not begin to amortize until, more than six months
                           after the Termination Date and does not amortize and
                           (z) the covenants and other material terms of such
                           unsecured Debt are no more restrictive than those set
                           forth in the Loan Documents;

                           (ii)     in the case of any Restricted Subsidiary of
                  the Borrower, Debt owed to the Borrower or to a Wholly Owned
                  Restricted Subsidiary of the Borrower; and

                           (iii)    in the case of the Borrower and its
                  Restricted Subsidiaries,

                                    (A)     Debt under the Loan Documents,

                                    (B)      the Surviving Debt set forth on
                           Schedule 4.01(s) hereto,

                                    (C)      non-recourse Debt of the Borrower
                           and Restricted Subsidiaries incurred solely to
                           finance Capital Expenditures for the development of
                           Greenfield Projects,

                                    (D)      non-recourse Debt secured by Liens
                           permitted by Section 5.02(a)(iv),

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                                    (E)      Debt in respect of Swaps incurred
                           in the ordinary course of business and consistent
                           with prudent business practice with the aggregate
                           value thereof not to exceed $10,000,000 at any time
                           outstanding,

                                    (F)      any Debt extending the maturity of,
                           or refunding or refinancing, in whole or in part, any
                           Surviving Debt or other Debt permitted under this
                           Section 5.02(b); provided that the principal amount
                           of such Debt shall not be increased above the
                           principal amount thereof outstanding immediately
                           prior to such extension, refunding or refinancing,
                           and the direct and contingent obligors therefor shall
                           not be changed, as a result of or in connection with
                           such extension, refunding or refinancing; provided
                           further that the terms relating to principal amount,
                           amortization, maturity, collateral (if any) and
                           subordination (if any), and other material terms
                           taken as a whole, of any such extending, refunding or
                           refinancing Debt, and of any agreement entered into
                           and of any instrument issued in connection therewith,
                           are consistent with prudent business practice and
                           incurred in the ordinary course of business and, in
                           the case of the Senior Notes, the terms relating to
                           principal amount, amortization, maturity, collateral
                           (if any) and subordination (if any) and other
                           material terms, taken as a whole, of any such
                           extension, refunding or refinancing are on terms no
                           less favorable in any material respect to the Loan
                           Parties or the Lender Parties than the terms of the
                           Senior Notes being extended, refunded or refinanced
                           and the interest rate applicable to any such
                           extension, refunding or refinancing does not exceed
                           the then applicable market rate; provided further
                           that the repayment in whole or in part of the
                           Advances pursuant to Section 2.04 or Section 2.06
                           with the proceeds of Debt incurred pursuant to
                           Section 5.02(b)(i)(B) or Section 5.02(b)(iii)(G)
                           shall not constitute an extension, refunding or
                           refinancing under this subclause (F), and

                                    (G)      other unsecured Debt incurred in
                           the ordinary course of business and Capital Lease
                           Obligations aggregating not more than $10,000,000 at
                           any time outstanding; provided, in each case, that
                           the Borrower shall be in pro forma compliance with
                           the covenants contained in Section 5.04, calculated
                           based on the financial statements most recently
                           delivered to the Lender Parties pursuant to Section
                           5.03 and as though such Debt or Capital Lease
                           Obligations had been incurred at the beginning of the
                           four-quarter period covered thereby, as evidenced by
                           a certificate of the chief financial officer (or
                           person performing similar functions) of the Borrower
                           delivered to the Paying Agent demonstrating such
                           compliance.

                  (c)      Change in Nature of Business. Make, or permit any of
         its Restricted Subsidiaries to make, any material change in the nature
         of their businesses, taken as a whole, as carried on at the date
         hereof.

                  (d)      Mergers, Etc. Merge into or consolidate with any
         Person or permit any Person to merge into it or convey, transfer or
         lease substantially all of its assets in a single

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<PAGE>

         transaction or series of transactions to any Person, or permit any of
         its Restricted Subsidiaries to do so, except that:

                           (i)      any Restricted Subsidiary of the Borrower
                  may merge into or consolidate with any other Wholly Owned
                  Restricted Subsidiary of the Borrower; provided that, in the
                  case of any such merger or consolidation, the Person formed by
                  such merger or consolidation shall be a Wholly Owned
                  Restricted Subsidiary of the Borrower; provided further that,
                  in the case of any such merger or consolidation to which a
                  Subsidiary Guarantor is a party, the Person formed by such
                  merger or consolidation shall be a Subsidiary Guarantor;

                           (ii)     any of the Borrower's Subsidiaries may
                  consolidate with or merge into the Borrower; provided that the
                  Borrower is the surviving entity; and

                           (iii)    any of the Restricted Subsidiaries of the
                  Borrower may (A) merge into or consolidate with, any other
                  Person, or (B) convey, transfer or lease substantially all of
                  its assets in compliance with Section 5.02(e) (other than
                  clause (v) thereof) in a single transaction or series of
                  related transactions to any other Person or (C) permit any
                  other Person to merge into or consolidate with it; provided,
                  in each case with respect to any merger or consolidation or
                  conveyance, transfer or lease of substantially all of its
                  assets, (1) the Person formed by such consolidation or into
                  which the Restricted Subsidiary shall be merged or assets
                  shall be conveyed, transferred or leased shall, at the
                  effective time of such merger or consolidation or transfer or
                  lease be Solvent and shall have assumed all obligations of
                  such Restricted Subsidiary under any Subsidiary Guaranty to
                  which such Restricted Subsidiary is a party in a writing
                  satisfactory in form and substance to the Required Lenders and
                  (2) the Borrower shall have caused to be delivered to the
                  Paying Agent an opinion of independent counsel satisfactory to
                  the Paying Agent to the effect that all agreements or
                  instruments effecting such assumption are enforceable in
                  accordance with the terms thereof;

         provided, however, that in each case, immediately after giving effect
         thereto, (i) no event shall occur and be continuing that constitutes a
         Default and (ii) the Borrower shall be in pro forma compliance with the
         covenants contained in Section 5.04, as evidenced by a certificate of
         the chief financial officer (or persons performing similar functions)
         of the Borrower delivered to the Paying Agent demonstrating such
         compliance.

                  (e)      Sales, Etc., of Assets. Sell, lease, transfer or
         otherwise dispose of, or permit any of its Restricted Subsidiaries to
         sell, lease, transfer or otherwise dispose of, any assets, or grant any
         option or other right to purchase, lease or otherwise acquire any
         assets other than Inventory to be sold in the ordinary course of its
         business, except:

                           (i)      sales of Inventory in the ordinary course of
                  its business;

                           (iii)    sales of assets that are obsolete or no
                  longer used or useful for fair value in an aggregate amount
                  not to exceed $5,000,000 over the term of the Facilities;

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<PAGE>

                           (iv)     sale-leasebacks of used equipment in an
                  aggregate amount not to exceed $10,000,000 over the term of
                  the Facilities;

                           (v)      sales of assets (x) by the Borrower to a
                  Wholly Owned Restricted Subsidiary, or (y) by a Restricted
                  Subsidiary to the Borrower or to another Restricted Subsidiary
                  with respect to which the Borrower shall have at least the
                  same degree of ownership and control as it had with respect to
                  the Restricted Subsidiary responsible for the asset sale,
                  transfer or disposition;

                           (vi)     in a transaction authorized by Section
                  5.02(d); and

                           (vii)    sales of other assets with a fair value in
                  an amount not to exceed $10,000,000 individually or
                  $25,000,000 in the aggregate over the term of the Facilities;
                  provided, however, that the purchase price paid to the
                  Borrower or such Restricted Subsidiary for such asset shall be
                  no less than the fair market value of such asset at the time
                  of such sale and such sale shall be in the best interest of
                  the Borrower or such Restricted Subsidiary, as determined in
                  good faith by the board of directors (or other person
                  performing such functions) of the Borrower or such Restricted
                  Subsidiary, as the case may be, and (ii) immediately after
                  giving effect to such sales of assets, no Default shall exist.

                  (f)      Investments in Other Persons. Make or hold, or permit
         any of its Restricted Subsidiaries to make or hold, any Investment in
         any Person, except:

                           (i)      Investments consisting of property to be
                  used in the ordinary course of business;

                           (ii)     Investments in accounts receivable arising
                  from the sales of goods and services in the ordinary course of
                  business;

                           (iii)    equity Investments by the Borrower and its
                  Restricted Subsidiaries in Wholly Owned Restricted
                  Subsidiaries;

                           (iv)     Investments by the Borrower and its
                  Restricted Subsidiaries in Cash Equivalents;

                           (v)      Investments existing on the date hereof and
                  described on Schedule 4.01(u) hereto;

                           (vi)     Investments by the Borrower in Swaps
                  permitted under Section 5.02(b)(iii)(F); and

                           (vii)    other Investments in any other Person;
                  provided that with respect to Investments made under this
                  clause (vii): (1) any newly acquired or organized Subsidiary
                  of the Borrower or any of its Restricted Subsidiaries shall be
                  a Wholly-Owned Restricted Subsidiary thereof; (2) immediately
                  before and after giving effect thereto, no Default shall have
                  occurred and be continuing or would result therefrom; (3) any
                  company or business acquired or invested in pursuant to

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<PAGE>

                  this clause (vii) shall be in the same line of business as the
                  business of the Borrower or any of its Restricted
                  Subsidiaries; and (4) immediately after giving effect to the
                  acquisition of a company or business pursuant to this clause
                  (vii), the Borrower shall be in pro forma compliance with the
                  covenants contained in Section 5.04, calculated based on the
                  financial statements most recently delivered to the Lender
                  Parties pursuant to Section 5.03 and as though such
                  acquisition had occurred at the beginning of the four-quarter
                  period covered thereby, as evidenced by a certificate of the
                  chief financial officer (or person performing similar
                  functions) of the Borrower delivered to the Lender Parties
                  demonstrating such compliance;

                           (viii)   Investments by the Borrower and its
                  Restricted Subsidiaries in Unrestricted Subsidiaries and in
                  Restricted Subsidiaries that are not Wholly Owned Subsidiaries
                  in an amount not to exceed $10,000,000 at any time
                  outstanding; provided, however, that so long as the Borrower
                  and its Restricted Subsidiaries shall not have made
                  Investments in Unrestricted Subsidiaries in excess of
                  $10,000,000 as provided in this clause (viii), the Borrower
                  shall not be in violation of this clause (viii) in the event
                  that the Investments held (as opposed to made) by the Borrower
                  and its Restricted Subsidiaries in Unrestricted Subsidiaries
                  shall at any time exceed $10,000,000; and

                           (ix)     Investments consisting of intercompany Debt
                  permitted under Section 5.02(b)(i) and (ii).

                  (g)      Restricted Payments. Declare or pay any dividends,
         purchase, redeem, retire, defease or otherwise acquire for value any of
         its Capital Stock now or hereafter outstanding, return any capital to
         its stockholders, partners or members (or the equivalent Persons
         thereof) as such, make any distribution of assets, Capital Stock,
         obligations or securities to its stockholders, partners or members (or
         the equivalent Persons thereof) as such, or permit any of its
         Restricted Subsidiaries to do any of the foregoing (each of the
         foregoing being a "RESTRICTED PAYMENT"), or permit any of its
         Restricted Subsidiaries to purchase, redeem, retire, defease or
         otherwise acquire for value any Capital Stock in the Borrower or to
         issue or sell any Capital Stock therein, except that, so long as no
         Default or Event of Default shall have occurred and be continuing at
         the time of any action described in clause (i) or (ii) below or would
         result therefrom:

                           (i)      the Borrower may declare, make or incur a
                  liability to make any such Restricted Payment; provided that
                  immediately after giving effect thereto the aggregate amount
                  of Restricted Payments made in any fiscal quarter of the
                  Borrower shall not exceed Available Cash (as defined in the
                  MLP Agreement as in effect on the date hereof) for the
                  immediately preceding fiscal quarter of the Borrower; and

                           (ii)     (A) any Wholly Owned Subsidiary of the
                  Borrower may declare, make or incur a liability to make
                  any Restricted Payment to the Borrower or any other Wholly
                  Owned Subsidiary of the Borrower of which it is a Subsidiary,
                  (B) any non-Wholly Owned Subsidiary may declare, make or incur
                  a liability to make

                                       69

<PAGE>

                  any Restricted Payment to its equity holders; provided that
                  the general partner of such Subsidiary does not own greater
                  than 2% of the issued and outstanding Capital Stock in such
                  Subsidiary, and (C) any Subsidiary of the Borrower may accept
                  capital contributions from its parent to the extent permitted
                  under Section 5.02(f)(iii).

                  (h) Lease Obligations. Create, incur, assume or suffer to
         exist, or permit any of its Restricted Subsidiaries to create, incur,
         assume or suffer to exist, any obligations as lessee (excluding for
         this purpose obligations as lessee under Capital Leases) (i) for the
         rental or hire of real or personal property in connection with any sale
         and leaseback transaction (except to the extent and not exceeding the
         amounts permitted by Section 5.02(e)(iv)), or (ii) for the rental or
         hire of other real or personal property of any kind under leases or
         agreements to lease having an original term of one year or more that
         would cause the direct and contingent liabilities of the Borrower and
         its Subsidiaries, on a Consolidated basis, in respect of all such
         obligations to exceed $15,000,000 payable in any period of 12
         consecutive months.

                  (i)      Amendments of Constitutive Documents. Amend, or
         permit any of its Restricted Subsidiaries to amend, its Constitutive
         Documents (other than the Partnership Agreement) in any manner that has
         a Material Adverse Effect.

                  (j)      Accounting Changes. Make or permit, or permit any of
         its Restricted Subsidiaries to make or permit, any change in (i)
         accounting policies or reporting practices, except as required by
         generally accepted accounting principles, and except that the Borrower
         and its Subsidiaries may account for the compensation expense of the
         non-vested common units granted under the MLP's Long-Term Incentive
         Plan using the "fair value" method, or (ii) Fiscal Year.

                  (k)      Prepayments, Etc., of Debt. (i) Prepay, redeem,
         purchase, defease or otherwise satisfy prior to the scheduled maturity
         thereof in any manner the Senior Notes prior to the Termination Date,
         except (A) mandatory prepayments of principal, and payments of
         interest, required under the Note Purchase Agreement and (B)
         redemptions of the Senior Notes made concurrently with the refinancing
         thereof permitted under Section 5.02(b)(iii)(F) or (ii) permit any
         Subsidiary Guarantor (as defined in the Note Purchase Agreement) to
         make any payment to or on account of any noteholder under the Note
         Purchase Agreement other than a payment made following a demand
         therefor by such noteholder pursuant to the Subsidiary Guaranty
         Agreement (as defined in the Note Purchase Agreement).

                  (l)      Amendment, Etc., of the Note Purchase Agreement.
         Amend, modify or change in any manner any term or provision of the Note
         Purchase Agreement that would allow for any scheduled amortization
         payments to be made on the Senior Notes prior to the date the
         Facilities are paid in full.

                  (m)      Partnerships, Etc. Become a general partner in any
         general or limited partnership or joint venture, or permit any of its
         Restricted Subsidiaries to do so, except that the Borrower and/or any
         of its Restricted Subsidiaries may be a general partner in

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<PAGE>

         any partnership or joint venture provided such partnership or such
         joint venture incurs no Debt or other liability for which the Borrower
         or such Restricted Subsidiary is liable as guarantor or a provider of
         any other credit support, or by virtue of its status as such general
         partner or joint venturer.

                  (n)      Speculative Transactions. Enter into any foreign
         currency exchange contracts, interest rate swap arrangements or other
         derivative contracts or transactions, other than such contracts,
         arrangements or transactions entered into in the ordinary course of
         business for the purpose of hedging (i) the interest rate exposure of
         the Borrower or any of its Restricted Subsidiaries, (ii) the purchase
         requirements of the Borrower or any of its Restricted Subsidiaries with
         respect to raw materials and inventory and (iii) the fluctuations in
         the prices of commodities affecting the Borrower or any of its
         Restricted Subsidiaries.

                  (o)      Formation of Subsidiaries. Organize or invest, or
         permit any Restricted Subsidiary to organize or invest, in any new
         Subsidiary except as permitted under Section 5.02(f)(vii) or (viii).

                  (p)      Payment Restrictions Affecting Restricted
         Subsidiaries. Directly or indirectly, enter into or suffer to exist, or
         permit any of its Restricted Subsidiaries to enter into or suffer to
         exist, any agreement or arrangement limiting the ability of any of its
         Subsidiaries to declare or pay dividends or other distributions in
         respect of its Capital Stock or repay or prepay any Debt owed to, make
         loans or advances to, or otherwise transfer assets to or invest in, the
         Borrower or any Subsidiary of the Borrower (whether through a covenant
         restricting dividends, loans, asset transfers or investments, a
         financial covenant or otherwise), except the Loan Documents and the
         Note Purchase Agreement.

                  (q)      Transactions with Affiliates. Except as set forth on
         Schedule 5.02(q) hereto, enter into, or permit any of its Restricted
         Subsidiaries to enter into, directly or indirectly, any transaction or
         group of related transactions (including without limitation the
         purchase, lease, sale or exchange of properties of any kind or the
         rendering of any service) with any Affiliate, except in the ordinary
         course or pursuant to the reasonable requirements of the Borrower's or
         such Restricted Subsidiary's business, in each case upon fair and
         reasonable terms no less favorable (taken as a whole, as determined in
         good faith by the board of directors of the General Partner or its
         Conflicts Committee) to the Borrower or such Restricted Subsidiary than
         would be obtainable in a comparable arm's-length transaction with a
         Person not an Affiliate.

                  (r)      Change in Status of Subsidiaries. Change the
         designation of any Subsidiary as a Restricted Subsidiary or an
         Unrestricted Subsidiary except, so long as no Default or Event of
         Default shall have occurred and be continuing, the Borrower may at any
         time and from time to time, upon not less than 30 days' prior written
         notice given to each Lender Party, designate a previously Restricted
         Subsidiary as an Unrestricted Subsidiary or a previously Unrestricted
         Subsidiary (including a new Subsidiary designated on the date of its
         formation or acquisition) which satisfies the requirements of clauses
         (i), (ii) and (iii) of the definition of "Restricted Subsidiary" as a
         Restricted Subsidiary; provided that immediately after such designation
         and after giving effect

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<PAGE>

         thereto no Default or Event of Default shall have occurred and be
         continuing, and the Borrower would be permitted, pursuant to the
         provisions of Section 10.1(a) of the Note Purchase Agreement to incur
         at least $1 of additional Debt (as defined in the Note Purchase
         Agreement) owing to a Person other than a Restricted Subsidiary, and
         provided further that after such designation the status of such
         Subsidiary had not been changed more than twice.

                  SECTION 5.03. Reporting Requirements. So long as any Advance
or any other monetary obligation of any Loan Party under any Loan Document shall
remain unpaid, any Letter of Credit shall be outstanding or any Lender Party
shall have any Commitment hereunder, the Borrower will furnish to the Paying
Agent:

                  (a)      Default Notice. As soon as possible and in any event
         within five Business Days after the occurrence of each Default or any
         event, development or occurrence reasonably likely to have a Material
         Adverse Effect continuing on the date of such statement, a statement of
         the chief financial officer (or person performing similar functions) of
         the Borrower (or its managing general partner) setting forth details of
         such Default and the action that the Borrower has taken and proposes to
         take with respect thereto.

                  (b)      Annual Financials. As soon as available and in any
         event within 100 days after the end of each Fiscal Year, a copy of the
         annual audit report for such year for the Borrower and its
         Subsidiaries, including therein a Consolidated balance sheet of the
         Borrower and its Subsidiaries as of the end of such Fiscal Year and a
         Consolidated statement of income and a Consolidated statement of cash
         flows of the Borrower and its Subsidiaries for such Fiscal Year, in
         each case accompanied by an opinion acceptable to the Required Lenders
         of Deloitte & Touche LLP or other independent public accountants of
         recognized standing acceptable to the Required Lenders, together with
         (i) a certificate of such accounting firm to the Lender Parties stating
         that in the course of the regular audit of the business of the Borrower
         and its Subsidiaries, which audit was conducted by such accounting firm
         in accordance with generally accepted auditing standards, such
         accounting firm has obtained no knowledge that a Default has occurred
         and is continuing, or if, in the opinion of such accounting firm, a
         Default has occurred and is continuing, a statement as to the nature
         thereof, (ii) a schedule in form satisfactory to the Paying Agent of
         the computations used by such accountants in determining, as of the end
         of such Fiscal Year, compliance with the covenants contained in Section
         5.04; provided that in the event of any change in GAAP used in the
         preparation of such financial statements, the Borrower shall also
         provide, if necessary for the determination of compliance with Section
         5.04, a statement of reconciliation conforming such financial
         statements to GAAP and (iii) a certificate of the chief financial
         officer (or person performing similar functions) of the Borrower (or
         its managing general partner) stating that no Default has occurred and
         is continuing or, if a default has occurred and is continuing, a
         statement as to the nature thereof and the action that the Borrower has
         taken and proposes to take with respect thereto.

                  (c)      Quarterly Financials. As soon as available and in any
         event within 55 days after the end of each of the first three quarters
         of each Fiscal Year, a Consolidated

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<PAGE>

         balance sheet of the Borrower and its Subsidiaries as of the end of
         such quarter and a Consolidated statement of income and a Consolidated
         statement of cash flows of the Borrower and its Subsidiaries for the
         period commencing at the end of the previous fiscal quarter and ending
         with the end of such fiscal quarter and a Consolidated statement of
         income and a Consolidated statement of cash flows of the Borrower and
         its Subsidiaries for the period commencing at the end of the previous
         Fiscal Year and ending with the end of such quarter, setting forth in
         each case in comparative form the corresponding figures for the
         corresponding date or period of the preceding Fiscal Year, all in
         reasonable detail and duly certified (subject to normal year-end audit
         adjustments) by the chief financial officer (or person performing
         similar functions) of the Borrower (or its managing general partner) as
         having been prepared in accordance with GAAP, together with (i) a
         certificate of said officer stating that no Default has occurred and is
         continuing or, if a Default has occurred and is continuing, a statement
         as to the nature thereof and the action that the Borrower has taken and
         proposes to take with respect thereto and (ii) a schedule in a form
         reasonably satisfactory to the Paying Agent of the computations used by
         the Borrower in determining compliance with the covenants contained in
         Section 5.04; provided that in the event of any change in GAAP used in
         the preparation of such financial statements, the Borrower shall also
         provide, if necessary for the determination of compliance with Section
         5.04, a statement of reconciliation conforming such financial
         statements to GAAP.

                  (d)      Annual Business Plan. As soon as available and in any
         event no later than 100 days after the end of each Fiscal Year, a
         Business Plan.

                  (e)      Litigation. Promptly after the commencement thereof,
         notice of all actions, suits, investigations, litigation and
         proceedings before any Governmental Authority affecting the General
         Partner, any Loan Party or any of its Subsidiaries, including any
         Environmental Action, that (i) would be reasonably expected to have a
         Material Adverse Effect or (ii) purports to effect the legality,
         validity or enforceability of any Transaction Document or the
         consummation of the Transaction, and promptly after the occurrence
         thereof, notice of any material adverse change in the status or the
         financial effect on the General Partner, any Loan Party or any of its
         Subsidiaries of the Disclosed Litigation from that described on
         Schedule 4.01(f) hereto.

                  (f)      Securities Reports. Promptly after the sending or
         filing thereof, copies of all proxy statements, financial statements
         and reports that the MLP or any Loan Party or any of its Subsidiaries
         sends to its stockholders, partners or members, and copies of all
         regular, periodic and special reports, and all registration statements,
         that the MLP or any Loan Party or any of its Subsidiaries files with
         the Securities and Exchange Commission or any governmental authority
         that may be substituted therefor, or with any national securities
         exchange.

                  (g)      ERISA. (i) ERISA Events and ERISA Reports. (A)
         Promptly and in any event within 10 days after any Loan Party or any
         ERISA Affiliate knows or has reason to know that any ERISA Event has
         occurred, a statement of the chief financial officer (or person
         performing similar functions) of the Borrower (or its managing general
         partner) describing such ERISA Event and the action, if any, that such
         Loan Party or such ERISA

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<PAGE>

         Affiliate has taken and proposes to take with respect thereto and (B)
         on the date any records, documents or other information must be
         furnished to the PBGC with respect to any Plan pursuant to Section 4010
         of ERISA, a copy of such records, documents and information.

                  (ii)     Plan Terminations. Promptly and in any event within
         two Business Days after receipt thereof by any Loan Party or any ERISA
         Affiliate, copies of each notice from the PBGC stating its intention to
         terminate any Plan or to have a trustee appointed to administer any
         Plan.

                  (iii)    Plan Annual Reports. Promptly and in any event within
         30 days after the filing thereof with the Internal Revenue Service,
         copies of each Schedule B (Actuarial Information) to the annual report
         (Form 5500 Series) with respect to each Plan.

                  (iv)     Multiemployer Plan Notices. Promptly and in any event
         within five Business Days after receipt thereof by any Loan Party or
         any ERISA Affiliate from the sponsor of a Multiemployer Plan, copies of
         each notice concerning (A) the imposition of Withdrawal Liability by
         any such Multiemployer Plan, (B) the reorganization or termination,
         within the meaning of Title IV of ERISA, of any such Multiemployer Plan
         or (C) the amount of liability incurred, or that may be incurred, by
         such Loan Party or any ERISA Affiliate in connection with any event
         described in clause (A) or (B).

                  (h)      Environmental Conditions. Promptly after the
         assertion or occurrence thereof, notice of any material Environmental
         Action against or of any noncompliance by any Loan Party or any of its
         Subsidiaries with any Environmental Law or Environmental Permit.

                  (i)      Available Cash, Etc. Within 55 days (or in the case
         of the fourth fiscal quarter, 100 days) following the end of each
         fiscal quarter of the Borrower, a report of Available Cash (as defined
         in the MLP Agreement), cash reserves (including, in the case of any
         such cash distribution the cash reserve withheld from distribution that
         is necessary for the proper conduct of business (including reserves for
         future capital expenditures) as set forth in the most recent Business
         Plan delivered to the Paying Agent pursuant to Section 5.03(d)), the
         aggregate amount of Cash Distribution Advances outstanding at the end
         of such fiscal quarter and other related items of the Borrower and its
         Subsidiaries in form and substance satisfactory to the Paying Agent.

                  (j)      Coal and Mining Agreements. Promptly after the
         occurrence thereof, notice of any material change to any material coal
         sales agreement or material contract, contract mining agreement or coal
         purchase agreements to which the Borrower or any of its Subsidiaries is
         a party.

                  (k)      Rating Agency Reports. Promptly upon receipt thereof,
         copies of any statement or report furnished by any rating agency to any
         Loan Party or any of its Subsidiaries in connection with the Senior
         Notes.

                  (l)      Other Information. Such other information respecting
         the business, condition (financial or otherwise), operations,
         performance, properties or prospects of

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<PAGE>

         any Loan Party or any of its Subsidiaries as any Agent, or any Lender
         Party through the Paying Agent, may from time to time reasonably
         request.

                  SECTION 5.04. Financial Covenants. So long as any Advance or
any other obligation of any Loan Party under any Loan Document shall remain
unpaid, any Letter of Credit shall be outstanding or any Lender Party shall have
any Commitment hereunder, the Borrower will:

                  (a)      Consolidated Debt to Consolidated Cash Flow Ratio.
         Maintain at all times, a Consolidated Debt to Consolidated Cash Flow
         Ratio of not more than 3.0:1.0.

                  (b)      Maximum Asset Impairments and Incremental Long-term
         Liabilities. Maintain at all times the sum of: (i) cumulative asset
         writedowns and impairments plus (ii) the increase in the sum of accrued
         pneumoconiosis benefits, workers compensation and reclamation and mine
         closing liabilities associated with properties and assets that are
         owned by the Borrower and its Restricted Subsidiaries as of the
         Effective Date of not more than $35,000,000.

                  (c)      Interest Coverage Ratio. Maintain at all times, an
         Interest Coverage Ratio of not less than 4.0:1.0.

                  (d)      Maximum Capital Expenditures. Not make, or permit any
         of its Subsidiaries to make, any Capital Expenditures that would cause
         the aggregate of all Capital Expenditures made by the Borrower and its
         Subsidiaries in any period set forth below to exceed the amount set
         forth below for such period:

<TABLE>
<CAPTION>
---------------------------------------------
Amount per annum     Fiscal Year Ending
---------------------------------------------
<S>                  <C>
  $48,800,000        December 31, 2003
---------------------------------------------
  $53,300,000        December 31, 2004
---------------------------------------------
  $50,600,000        December 31, 2005
---------------------------------------------
  $50,200,000        December 31, 2006
---------------------------------------------
</TABLE>

         ; provided, however, that if, for any Fiscal Year set forth above, the
         amount specified above for such Fiscal Year exceeds the aggregate
         amount of Capital Expenditures made by the Borrower and its
         Subsidiaries during such Fiscal Year (the amount of such excess being
         the "EXCESS AMOUNT"), the Borrower and its Subsidiaries shall be
         entitled to make additional Capital Expenditures in the immediately
         succeeding Fiscal Year in an amount equal to such Excess Amount, in
         which case the Capital Expenditures made by the Borrower and its
         Subsidiaries in such immediately succeeding year shall first be applied
         to such Excess Amount before such Capital Expenditures shall reduce and
         be applied

                                       75

<PAGE>

         against the amount of Capital Expenditures otherwise permitted during
         such immediately succeeding year.

                                   ARTICLE VI

                                EVENTS OF DEFAULT

                  SECTION 6.01. Events of Default. If any of the following
events ("EVENTS OF DEFAULT") shall occur and be continuing:

                  (a)      (i) the Borrower shall fail to pay any principal of
         any Advance when the same shall become due and payable or (ii) the
         Borrower shall fail to pay any interest on any Advance, or any Loan
         Party shall fail to make any other payment under any Loan Document, in
         each case under this clause (ii) within five Business Days after the
         same becomes due and payable; or

                  (b)      any representation or warranty made in writing by any
         Loan Party (or any of its officers (or persons performing similar
         functions)_ under or in connection with any Loan Document (including,
         without limitation, in any certificate or financial information
         delivered pursuant thereto) shall prove to have been incorrect in any
         material respect when made or any financial projections prepared by or
         on behalf of any Loan Party and made available in writing to the Agents
         or any Lender Party shall prove not to have been prepared in good faith
         based upon assumptions that were reasonable at the time made and at the
         time made available to the Agents; or

                  (c)      the Borrower shall fail to perform or observe any
         term, covenant or agreement contained in Sections 2.14, 5.01(d) or (e),
         5.02, 5.03(a) or 5.04; or

                  (d)      any Loan Party shall fail to perform or observe any
         other term, covenant or agreement contained in any Loan Document on its
         part to be performed or observed if such failure shall remain
         unremedied for 30 days after the earlier of the date on which (i) a
         Responsible Officer becomes aware of such failure or (ii) written
         notice thereof shall have been given to the Borrower by any Agent or
         any Lender Party; or

                  (e)      any Loan Party shall fail to pay any principal of,
         premium or interest on or any other amount payable in respect of any
         Debt of such Loan Party or such Subsidiary (as the case may be) that is
         outstanding in a principal amount (or, in the case of any Swap, the
         value of obligations under such Swap) of at least $10,000,000 either
         individually or in the aggregate (but excluding Debt outstanding
         hereunder), when the same becomes due and payable (whether by scheduled
         maturity, required prepayment, acceleration, demand or otherwise), and
         such failure shall continue after the applicable grace period, if any,
         specified in the agreement or instrument relating to such Debt; or any
         other event shall occur or condition shall exist under any agreement or
         instrument relating to any such Debt, if the effect of such event or
         condition is to accelerate, or to permit the acceleration of, the
         maturity of such Debt or otherwise to cause, or to permit the holder
         thereof to cause, such Debt to mature; or any such Debt shall be
         declared to be

                                       76
<PAGE>

         due and payable or required to be prepaid or redeemed (other than by a
         regularly scheduled required prepayment or redemption), purchased or
         defeased, or an offer to prepay, redeem, purchase or defease such Debt
         shall be required to be made, in each case prior to the stated maturity
         thereof; or

                  (f)      any Loan Party or the General Partner shall generally
         not pay its debts as such debts become due, or shall admit in writing
         its inability to pay its debts generally, or shall make a general
         assignment for the benefit of creditors; or any proceeding shall be
         instituted by or against any Loan Party or the General Partner seeking
         to adjudicate it a bankrupt or insolvent, or seeking liquidation,
         winding up, reorganization, arrangement, adjustment, protection,
         relief, or composition of it or its debts under any law relating to
         bankruptcy, insolvency or reorganization or relief of debtors, or
         seeking the entry of an order for relief or the appointment of a
         receiver, trustee or other similar official for it or for any
         substantial part of its property and, in the case of any such
         proceeding instituted against it (but not instituted by it) that is
         being diligently contested by it in good faith, either such proceeding
         shall remain undismissed or unstayed for a period of 60 days or any of
         the actions sought in such proceeding (including, without limitation,
         the entry of an order for relief against, or the appointment of a
         receiver, trustee, custodian or other similar official for, it or any
         substantial part of its property) shall occur; or any Loan Party, any
         of its Restricted Subsidiaries or the General Partner shall take any
         corporate action to authorize any of the actions set forth above in
         this subsection (f); or

                  (g)      any judgments or orders, either individually or in
         the aggregate, for the payment of money in excess of $10,000,000 shall
         be rendered against any Loan Party and either (i) enforcement
         proceedings shall have been commenced by any creditor upon such
         judgment or order or (ii) there shall be any period of 60 consecutive
         days during which a stay of enforcement of such judgment or order, by
         reason of a pending appeal or otherwise, shall not be in effect;
         provided, however, that any such judgment or order shall not be an
         Event of Default under this Section 6.01(g) if and for so long as (i)
         the amount of such judgment or order is covered by a valid and binding
         policy of insurance between the defendant and the insurer covering
         payment thereof and (ii) such insurer, which shall be rated at least
         "A" by A.M. Best Company at the time such insurance policy is issued to
         such Loan Party, has been notified of, and has not disputed the claim
         made for payment of, the amount of such judgment or order; or

                  (h)      any non-monetary judgment or order shall be rendered
         against any Loan Party that would reasonably be likely to have a
         Material Adverse Effect, and there shall be any period of 60
         consecutive days during which a stay of enforcement of such judgment or
         order, by reason of a pending appeal or otherwise, shall not be in
         effect; or

                  (i)      any provision of any Loan Document after delivery
         thereof pursuant to Section 3.01 or 5.01(i) shall for any reason cease
         to be valid and binding on or enforceable against any Loan Party party
         to it in any material respect, or any such Loan Party shall so state in
         writing; or

                  (j)      a Change of Control shall occur; or

                                       77

<PAGE>

                  (k)      any ERISA Event shall have occurred with respect to a
         Plan and the sum (determined as of the date of occurrence of such ERISA
         Event) of the Insufficiency of such Plan and the Insufficiency of any
         and all other Plans with respect to which an ERISA Event shall have
         occurred and then exist (or the liability of the Loan Parties and the
         ERISA Affiliates related to such ERISA Event) exceeds $10,000,000; or

                  (l)      any Loan Party or any ERISA Affiliate shall have been
         notified by the sponsor of a Multiemployer Plan that it has incurred
         Withdrawal Liability to such Multiemployer Plan in an amount that, when
         aggregated with all other amounts required to be paid to Multiemployer
         Plans by the Loan Parties and the ERISA Affiliates as Withdrawal
         Liability (determined as of the date of such notification), exceeds
         $10,000,000 or requires payments exceeding $2,500,000 per annum; or

                  (m)      any Loan Party or any ERISA Affiliate shall have been
         notified by the sponsor of a Multiemployer Plan that such Multiemployer
         Plan is in reorganization or is being terminated, within the meaning of
         Title IV of ERISA, and as a result of such reorganization or
         termination the aggregate annual contributions of the Loan Parties and
         the ERISA Affiliates to all Multiemployer Plans that are then in
         reorganization or being terminated have been or will be increased over
         the amounts contributed to such Multiemployer Plans for the plan years
         of such Multiemployer Plans immediately preceding the plan year in
         which such reorganization or termination occurs by an amount exceeding
         $2,500,000; or

                  (n)      the Borrower, the General Partner or the Special
         General Partner shall cancel or terminate or amend or consent to or
         accept any cancellation or termination or amendment of the Partnership
         Agreement or there shall be a cancellation, termination of, or any
         amendment to, the MLP Agreement in any manner that has a material
         adverse effect on (i) the business, operations, affairs, financial
         condition, assets or properties of the Borrower and its Subsidiaries
         taken as a whole, (ii) the rights and remedies of the Agents or the
         Lender Parties under the Loan Documents, or (iii) the ability of the
         Loan Parties to perform their respective payment and other material
         obligations under the Loan Documents; or

                  (o)      an assertion shall be made by any Person in any court
         proceeding or by any governmental authority or agency against any Loan
         Party or any of its Subsidiaries, of any claims or liabilities, whether
         accrued, absolute or contingent, based on or arising under any
         Environmental Law that is reasonably likely to be determined adversely
         to such Loan Party or any of its Subsidiaries, and the amount thereof
         (either individually or in the aggregate) is reasonably likely to have
         a Material Adverse Effect (insofar as such amount is payable by such
         Loan Party or any of its Subsidiaries but after deducting any portion
         thereof that is reasonably expected to be paid by other creditworthy
         Persons jointly and severally liable therefor); or

                  (p)      the Borrower shall fail to maintain a period of 30
         consecutive days in any Fiscal Year during which the average principal
         amount of Cash Distribution Advances outstanding during such 30 day
         period does not exceed $5,000,000;

                                       78

<PAGE>

         then, and in any such event, the Paying Agent (i) shall at the request,
         or may with the consent, of the Required Lenders, by notice to the
         Borrower, declare the Commitments of each Lender Party and the
         obligation of each Lender Party to make Advances (other than Letter of
         Credit Advances by an Issuing Bank or a Lender pursuant to Section
         2.03(c) and Swing Line Advances by a Lender pursuant to Section
         2.02(b)) and of each Issuing Bank to issue Letters of Credit to be
         terminated, whereupon the same shall forthwith terminate, and (ii)
         shall at the request, or may with the consent, of the Required Lenders,
         (A) by notice to the Borrower, declare the Notes, all interest thereon
         and all other amounts payable under this Agreement and the other Loan
         Documents to be forthwith due and payable, whereupon the Notes, all
         such interest and all such amounts shall become and be forthwith due
         and payable, without presentment, demand, protest or further notice of
         any kind, all of which are hereby expressly waived by the Borrower and
         (B) by notice to each party required under the terms of any agreement
         in support of which a Standby Letter of Credit is issued, request that
         all Obligations under such agreement be declared to be due and payable;
         provided, however, that in the event of an actual or deemed entry of an
         order for relief with respect to the Borrower under the Federal
         Bankruptcy Code, (x) the Commitments of each Lender Party and the
         obligation of each Lender Party to make Advances (other than Letter of
         Credit Advances by an Issuing Bank or Lender pursuant to Section
         2.03(c) and Swing Line Advances by a Lender pursuant to Section
         2.02(b)) and of each Issuing Bank to issue Letters of Credit shall
         automatically be terminated and (y) the Notes, all such interest and
         all such amounts shall automatically become and be due and payable,
         without presentment, demand, protest or any notice of any kind, all of
         which are hereby expressly waived by the Borrower.

                  SECTION 6.02. Actions in Respect of the Letters of Credit upon
Default. If any Event of Default shall have occurred and be continuing, the
Paying Agent may, or shall at the request of the Required Lenders, irrespective
of whether it is taking any of the actions described in Section 6.01 or
otherwise, make demand upon the Borrower to, and forthwith upon such demand the
Borrower will, pay to the Paying Agent on behalf of the Lender Parties in same
day funds at the Paying Agent's office designated in such demand, for deposit
into an account specified by the Paying Agent, an amount equal to the aggregate
Available Amount of all Letters of Credit then outstanding. If at any time the
Paying Agent determines that any funds held in such account are subject to any
right or claim of any Person other than the Agents and the Lender Parties or
that the total amount of such funds is less than the aggregate Available Amount
of all Letters of Credit, the Borrower will, forthwith upon demand by the Paying
Agent, pay to the Paying Agent, as additional funds to be deposited and held in
such account, an amount equal to the excess of (a) such aggregate Available
Amount over (b) the total amount of funds, if any, then held in such account
that the Paying Agent determines to be free and clear of any such right and
claim. Upon the drawing of any Letter of Credit for which funds are on deposit
in such account, such funds shall be applied to reimburse the relevant Issuing
Bank or Lenders, as applicable, to the extent permitted by applicable law. If
(i)(A) all Letters of Credit for which funds are on deposit in such account have
expired or been terminated and (B) no Default shall then be continuing or
(ii)(A) if the Commitments of each Lender Party and the obligation of each
Lender Party to make Advances and of the Issuing Banks to issue Letters of
Credit shall have been terminated and (B) all other Obligations shall have been
satisfied in full in cash, then the Paying Agent shall, within 14 days, return
to the Borrower all such monies then remaining in such account.

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<PAGE>

                                   ARTICLE VII

                                   THE AGENTS

                  SECTION 7.01. Authorization and Action. Each Lender Party (in
its capacities as a Lender, a Swing Line Bank (if applicable) or an Issuing Bank
(if applicable)) hereby appoints and authorizes each Agent to take such action
as agent on its behalf and to exercise such powers and discretion under this
Agreement and the other Loan Documents as are delegated to such Agent by the
terms hereof and thereof, together with such powers and discretion as are
reasonably incidental thereto. As to any matters not expressly provided for by
the Loan Documents (including, without limitation, enforcement or collection of
the Notes), no Agent shall be required to exercise any discretion or take any
action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of
the Required Lenders, and such instructions shall be binding upon all Lender
Parties and all other holders of Notes; provided, however, that no Agent shall
be required to take any action that exposes such Agent to personal liability or
that is contrary to this Agreement or applicable law. Each Agent agrees to give
to each Lender Party prompt notice of each notice given to it by the Borrower
pursuant to the terms of this Agreement.

                  SECTION 7.02. Agents' Reliance, Etc. Neither any Agent nor any
of its directors, officers, agents or employees shall be liable for any action
taken or omitted to be taken by it or them under or in connection with the Loan
Documents, except for its or their own gross negligence or willful misconduct.
Without limitation of the generality of the foregoing, each Agent: (a) may treat
the payee of any Note as the holder thereof until, in the case of the Paying
Agent, the Paying Agent receives and accepts an Assignment and Acceptance
entered into by the Lender Party that is the payee of such Note, as assignor,
and an Eligible Assignee, as assignee, or, in the case of any other Agent, such
Agent has received notice from the Paying Agent that it has received and
accepted such Assignment and Acceptance, in each case as provided in Section
8.07; (b) may consult with legal counsel (including counsel for any Loan Party),
independent public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (c) makes no
warranty or representation to any Lender Party and shall not be responsible to
any Lender Party for any statements, warranties or representations (whether
written or oral) made in or in connection with the Loan Documents; (d) shall not
have any duty to ascertain or to inquire as to the performance or observance of
any of the terms, covenants or conditions of any Loan Document on the part of
any Loan Party or to inspect the property (including the books and records) of
any Loan Party; (e) shall not be responsible to any Lender Party for the due
execution, legality, validity, enforceability, genuineness, sufficiency or value
of, or the perfection or priority of any lien or security interest created or
purported to be created under or in connection with, any Loan Document or any
other instrument or document furnished pursuant thereto; and (f) shall incur no
liability under or in respect of any Loan Document by acting upon any notice,
consent, certificate or other instrument or writing (which may be by telecopier)
reasonably believed by it to be genuine and signed or sent by the proper party
or parties.

                  SECTION 7.03. JPMorgan, Citicorp and Affiliates. With respect
to its Commitments, the Advances made by it and the Notes issued to it, JPMorgan
and Citicorp shall

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<PAGE>

have the same rights and powers under the Loan Documents as any other Lender
Party and may exercise the same as though it were not an Agent; and the term
"Lender Party" or "Lender Parties" shall, unless otherwise expressly indicated,
include JPMorgan and Citicorp in their respective individual capacities.
JPMorgan and Citicorp and their respective affiliates may accept deposits from,
lend money to, act as trustee under indentures of, accept investment banking
engagements from and generally engage in any kind of business with, any Loan
Party, any of its Subsidiaries and any Person that may do business with or own
securities of any Loan Party or any such Subsidiary, all as if JPMorgan and
Citicorp were not Agents and without any duty to account therefor to the Lender
Parties.

                  SECTION 7.04. Lender Party Credit Decision. Each Lender Party
acknowledges that it has, independently and without reliance upon any Agent or
any other Lender Party and based on the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender Party also acknowledges that it will, independently and
without reliance upon any Agent or any other Lender Party and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under this
Agreement.

                  SECTION 7.05. Indemnification. (a) Each Lender Party severally
agrees to indemnify each Agent (to the extent not promptly reimbursed by the
Borrower) from and against such Lender Party's ratable share (determined as
provided below) of any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever that may be imposed on, incurred by, or asserted
against such Agent in any way relating to or arising out of the Loan Documents
or any action taken or omitted by such Agent under the Loan Documents
(collectively, the "INDEMNIFIED COSTS"); provided, however, that no Lender Party
shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from such Agent's gross negligence, willful misconduct or unlawful
acts as found in a final, non-appealable judgment by a court of competent
jurisdiction. Without limitation of the foregoing, each Lender Party agrees to
reimburse each Agent promptly upon demand for its ratable share of any costs and
expenses (including, without limitation, fees and expenses of counsel) payable
by the Borrower under Section 8.04, to the extent that such Agent is not
promptly reimbursed for such costs and expenses by the Borrower. In the case of
any investigation, litigation or proceeding giving rise to any Indemnified
Costs, this Section 7.05 applies whether any such investigation, litigation or
proceeding is brought by any Lender Party or any other Person.

                  (b)      Each Lender Party severally agrees to indemnify each
Issuing Bank (to the extent not promptly reimbursed by the Borrower) from and
against such Lender Party's ratable share (determined as provided below) of any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever that may be imposed on, incurred by, or asserted against such Issuing
Bank in any way relating to or arising out of the Loan Documents or any action
taken or omitted by such Issuing Bank under the Loan Documents; provided,
however, that no Lender Party shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting from such Issuing Bank's gross
negligence,

                                       81

<PAGE>

willful misconduct or unlawful acts as found in a final, non-appealable judgment
by a court of competent jurisdiction. Without limitation of the foregoing, each
Lender Party agrees to reimburse such Issuing Bank promptly upon demand for its
ratable share of any costs and expenses (including, without limitation, fees and
expenses of counsel) payable by the Borrower under Section 8.04, to the extent
that such Issuing Bank is not promptly reimbursed for such costs and expenses by
the Borrower.

                  (c)      For purposes of this Section 7.05, the Lender
Parties' respective ratable shares of any amount shall be determined, at any
time, according to the sum of (i) the aggregate principal amount of the Advances
outstanding at such time and owing to the respective Lender Parties, (ii) their
respective Pro Rata Shares of the aggregate Available Amount of all Letters of
Credit outstanding at such time and (iii) their respective Unused Revolving
Credit Commitments at such time; provided that the aggregate principal amount of
Swing Line Advances owing to the Swing Line Bank and of Letter of Credit
Advances owing to any Issuing Bank shall be considered to be owed to the Lenders
ratably in accordance with their respective Revolving Credit Commitments. The
failure of any Lender Party to reimburse any Agent or any Issuing Bank, as the
case may be, promptly upon demand for its ratable share of any amount required
to be paid by the Lender Parties to such Agent or such Issuing Bank, as the case
may be, as provided herein shall not relieve any other Lender Party of its
obligation hereunder to reimburse such Agent or such Issuing Bank, as the case
may be, for its ratable share of such amount, but no Lender Party shall be
responsible for the failure of any other Lender Party to reimburse such Agent or
such Issuing Bank, as the case may be, for such other Lender Party's ratable
share of such amount. Without prejudice to the survival of any other agreement
of any Lender Party hereunder, the agreement and obligations of each Lender
Party contained in this Section 7.05 shall survive the payment in full of
principal, interest and all other amounts payable hereunder and under the other
Loan Documents.

                  SECTION 7.06. Successor Agents. Any Agent may resign as to any
or all of the Facilities at any time by giving not less than 30 days' prior
written notice thereof to the Lender Parties and the Borrower and may be removed
as to all of the Facilities at any time with or without cause by the Required
Lenders. Upon any such resignation or removal, the Required Lenders shall have
the right to appoint a successor Agent as to such of the Facilities as to which
such Agent has resigned or been removed. If no successor Agent with, so long as
no Default shall have occurred and be continuing, the approval of the Borrower
(which approval shall not be unreasonably withheld or delayed) shall have been
so appointed by the Required Lenders, and shall have accepted such appointment,
within 30 days after the retiring Agent's giving of notice of resignation or the
Required Lenders' removal of the retiring Agent, then the retiring Agent may, on
behalf of the Lender Parties, appoint a successor Agent with, so long as no
Default shall have occurred and be continuing, the approval of the Borrower
(which approval shall not be unreasonably withheld or delayed), which successor
Agent shall be a commercial bank organized under the laws of the United States
or of any State thereof and having a combined capital and surplus of at least
$250,000,000. If within 45 days after written notice is given of the retiring
Agent's resignation or removal under this Section 7.06 no successor Agent shall
have been appointed and shall have accepted such appointment, then on such 45th
day (a) the retiring Agent's resignation or removal shall become effective, (b)
the retiring Agent shall thereupon be discharged from its duties and obligations
under the Loan Documents and (c) provided no Default has occurred and is
continuing, the Borrower may appoint a successor Agent or if no

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<PAGE>

successor Agent is appointed by the Borrower at such time, the Required Lenders
shall thereafter perform all duties of the retiring Agent under the Loan
Documents until such time, if any, as the Required Lenders appoint a successor
Agent as provided above. After any retiring Agent's resignation or removal
hereunder as Agent as to any or all of the Facilities shall have become
effective, the provisions of this Article VII shall inure to its benefit as to
any actions taken or omitted to be taken by it while it was Agent as to such
Facilities under this Agreement.

                  SECTION 7.07. Intercreditor Agreement. Each Lender and each
Agent hereby authorizes the Paying Agent to execute and deliver the
Intercreditor Agreement on its behalf and consents and agrees to be bound by the
terms and provisions of the Intercreditor Agreement to the same extent and with
the same effect as if such Lender or such Agent had executed and delivered the
same as one of the original parties thereto as a Lender or Agent, as the case
may be, in respect of this Agreement.

                                  ARTICLE VIII

                                  MISCELLANEOUS

                  SECTION 8.01. Amendments, Etc. Except as otherwise
contemplated by Section 8.07 and the Subsidiary Guaranty, no amendment or waiver
of any provision of this Agreement or the Notes or any other Loan Document, nor
consent to any departure by any Loan Party therefrom, shall in any event be
effective unless the same shall be in writing and signed (or, in the case of the
Subsidiary Guaranty, consented to) by the Required Lenders, and then such waiver
or consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that (a) no amendment, waiver or
consent shall, unless in writing and signed by all of the Lender Parties (other
than any Lender Party that is, at such time, a Defaulting Lender, except for
clause (v) hereof), do any of the following at any time: (i) waive any of the
conditions specified in Section 3.01 or, in the case of the Initial Extension of
Credit, Section 3.02, (ii) change the number of Lenders or the percentage of (x)
the Commitments, (y) the aggregate unpaid principal amount of the Advances or
(z) the aggregate Available Amount of outstanding Letters of Credit that, in
each case, shall be required for the Lenders of any of them to take any action
hereunder, (iii) reduce or limit the obligations of any Subsidiary Guarantor
under Section 1 of the Subsidiary Guaranty issued by it or release such
Subsidiary Guarantor or otherwise limit such Subsidiary Guarantor's liability
with respect to the Obligations owing to the Agents and the Lender Parties, (iv)
amend Section 2.13, or (v) amend this Section 8.01, and (b) no amendment, waiver
or consent shall, unless in writing and signed by the Required Lenders and each
Lender that has a Commitment under the Revolving Credit Facility if such Lender
is directly affected by such amendment, waiver or consent, (i) increase the
Commitments of such Lender, (ii) reduce the principal of, or interest on, the
Notes held by such Lender or any fees or other amounts payable hereunder to such
Lender, (iii) postpone any date fixed for any payment of principal of, or
interest on, the Notes held by such Lender or any fees or other amounts payable
hereunder to such Lender, (iv) change the order of application of any prepayment
set forth in Section 2.06 in any manner that materially affects such Lender;
provided further that no amendment, waiver or consent shall, unless in writing
and signed by the Swing Line Bank or each Issuing Bank, as the case may be, in
addition to the Lenders required above to take such action, affect the rights or
obligations of the Swing Line Bank or of the Issuing Banks, as the case may be,
under this Agreement; and provided further that no amendment, waiver or consent

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shall, unless in writing and signed by an Agent in addition to the Lenders
required above to take such action, affect the rights or duties of such Agent
under this Agreement or the other Loan Documents.

                  SECTION 8.02. Notices, Etc. Except as otherwise provided in
Section 2.02, all notices and other communications provided for hereunder shall
be in writing (including telecopy communication confirmed by mail or delivery)
and mailed, telecopied, e-mailed or delivered, if to the Borrower, at its
address at 1717 South Boulder Avenue, Tulsa, Oklahoma 74119, Attention: Cary P.
Marshall, telephone (918) 295-7624, telecopier (918) 295-7357, e-mail address:
cary.marshall@arlp.com, with a copy to Thomas Pearson, Esq. at the same address,
telephone (918) 295-7606, telecopier (918) 295-7361, email address:
tom.pearson@arlp.com; if to any Initial Lender Party, at its Domestic Lending
Office specified opposite its name on Schedule I hereto; if to any other Lender
Party at its Domestic Lending Office specified in the Assignment and Acceptance
pursuant to which it became a Lender Party; if to JPMorgan as Paying Agent or
Co-Administrative Agent, at its address at 1111 Fannin, 10th Floor, Houston,
Texas 77002, Attention: Omar Musule, telephone (713) 750-3512, telecopier (713)
750-2223, E-mail address: omar.p.musule@jpmorgan.com), with a copy to 270 Park
Avenue, 4th Floor, New York, New York 10017, Attention: Peter S. Predun,
telephone (212) 270-7005, telecopier (212) 270-5100, e-mail Address:
peter.predun@jpmorgan.com); and if to Citicorp as Co-Administrative Agent, at
its address at 388 Greenwich Street, 21st Floor, New York, New York, 10013,
Attention: Dan Miller, telephone (212) 816-8283, telecopier (212) 816-8051,
e-mail address: daniel.j.miller@citigroup.com; or, as to any party, at such
other telecopy number or address as shall be designated by such party in a
written notice to the other parties. All such notices and other communications
shall, when mailed, telecopied, e-mailed or delivered, be effective when
deposited in the mails, e-mailed or transmitted by telecopier, respectively,
except that notices and communications to any Agent pursuant to Article II, III
or VII shall not be effective until received by such Agent. Delivery by
telecopier of an executed counterpart of any amendment or waiver of any
provision of this Agreement or the Notes or of any Exhibit hereto to be executed
and delivered hereunder shall be effective as delivery of an original executed
counterpart thereof.

                  SECTION 8.03. No Waiver; Remedies. No failure on the part of
any Lender Party or any Agent to exercise, and no delay in exercising, any right
hereunder or under any Note or any other Loan Document shall operate as a waiver
thereof; nor shall any single or partial exercise of any such right preclude any
other or further exercise thereof or the exercise of any other right. The
remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

                  SECTION 8.04. Costs and Expenses. (a) The Borrower agrees to
pay on demand (i) all reasonable costs and expenses of each Agent, the Joint
Arrangers and their Affiliates in connection with the preparation, execution,
delivery, administration, modification and amendment of the Loan Documents
(including, without limitation, (A) all reasonable due diligence, collateral
review, syndication, transportation, computer, duplication, appraisal, audit,
insurance, consultant, search, filing and recording fees and expenses and (B)
the reasonable fees and expenses of one firm of counsel to the Agents with
respect thereto, with respect to advising such Agents as to their rights and
responsibilities, or the perfection, protection or preservation of rights or
interests, under the Loan Documents, with respect to negotiations with any Loan
Party

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or with other creditors of any Loan Party or any of its Subsidiaries arising out
of any Default or any events or circumstances that may give rise to a Default
and with respect to presenting claims in or otherwise participating in or
monitoring any bankruptcy, insolvency or other similar proceeding involving
creditors' rights generally and any proceeding ancillary thereto) and (ii) all
costs and expenses of each Agent and each Lender Party in connection with the
enforcement of the Loan Documents after an Event of Default, whether in any
action, suit or litigation, or any bankruptcy, insolvency or other similar
proceeding affecting creditors' rights generally (including, without limitation,
the reasonable fees and expenses of counsel for the Paying Agent and each Lender
Party with respect thereto). Notwithstanding anything to the contrary in the
foregoing, the Borrower will not be obligated to pay any allocated overhead
costs of the Agents, the Joint Arrangers or any of their Affiliates.

                  (b)      The Borrower agrees to indemnify, defend and save and
hold harmless each Agent, each Joint Arranger, each Lender Party and each of
their Affiliates and their respective officers, directors, employees, agents and
advisors (each, an "INDEMNIFIED PARTY") from and against, and shall pay on
demand, any and all claims, damages, losses, liabilities and expenses
(including, without limitation, reasonable fees and expenses of counsel, but
excluding allocated overhead cost of the Agents, the Joint Arrangers and the
Lender Parties and their Affiliates) that may be incurred by or asserted or
awarded against any Indemnified Party, in each case arising out of or in
connection with or by reason of (including, without limitation, in connection
with any investigation, litigation or proceeding or preparation of a defense in
connection therewith) (i) the Facilities, the actual or proposed use of the
proceeds of the Advances or the Letters of Credit, the Transaction Documents or
any of the transactions contemplated thereby, or (ii) the actual or alleged
presence of Hazardous Materials on any property of any Loan Party or any of its
Subsidiaries or any Environmental Action relating in any way to any Loan Party
or any of its Subsidiaries, except in each case to the extent such claim,
damage, loss, liability or expense is found in a final, non-appealable judgment
by a court of competent jurisdiction to have resulted from such Indemnified
Party's gross negligence, willful misconduct or unlawful acts. In the case of an
investigation, litigation or other proceeding to which the indemnity in this
Section 8.04(b) applies, such indemnity shall be effective whether or not such
investigation, litigation or proceeding is brought by any Loan Party, its
directors, shareholders or creditors or an Indemnified Party, whether or not any
Indemnified Party is otherwise a party thereto and whether or not the
Transaction is consummated. The Borrower also agrees not to assert any claim
against any Agent, any Joint Arranger, any Lender Party or any of their
Affiliates, or any of their respective officers, directors, employees, agents
and advisors, on any theory of liability, for special, indirect, consequential
or punitive damages arising out of or otherwise relating to the Facilities, the
actual or proposed use of the proceeds of the Advances or the Letters of Credit,
the Transaction Documents or any of the transactions contemplated by the
Transaction Documents.

                  (c)      (i) If any payment of principal of, or Conversion of,
any Eurodollar Rate Advance is made by the Borrower to or for the account of a
Lender Party other than on the last day of the Interest Period for such Advance,
as a result of (x) a payment or Conversion pursuant to Section 2.06, 2.09(b)(i)
or 2.10(d), (y) acceleration of the maturity of the Notes pursuant to Section
6.01 or for any other reason, or by an Eligible Assignee to a Lender Party other
than on the last day of the Interest Period for such Advance upon an assignment
of rights and obligations under this Agreement pursuant to Section 8.07 as a
result of a demand by the Borrower pursuant

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to Section 8.07(a), (z) if the Borrower fails to make any payment or prepayment
of an Advance for which a notice of prepayment has been given or that is
otherwise required to be made, whether pursuant to Section 2.04, 2.06 or 6.01 or
otherwise, or (ii) the Borrower fails to fulfill the applicable conditions set
forth in Article III on or before the date specified in any Notice of Borrowing
for such Borrowing delivered pursuant to Section 2.02, the Borrower shall, upon
demand by such Lender Party (with a copy of such demand to the Paying Agent),
pay to the Paying Agent for the account of such Lender Party any amounts
required to compensate such Lender Party for any additional losses, costs or
expenses that it may reasonably incur as a result of such payment or Conversion
or such failure to pay or prepay or borrow, as the case may be, including,
without limitation, any loss (including loss of anticipated profits), cost or
expense incurred by reason of the liquidation or reemployment of deposits or
other funds acquired by any Lender Party to fund or maintain such Advance, all
of which losses, costs and expenses shall be an amount equal to the excess, if
any, of (A) the amount of interest that would have accrued on the principal
amount of such Advance had such event not occurred at the Eurodollar Rate that
would have been applicable to such Advance 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 or Convert, for the period that would have been the
Interest Period for such Loan), over (B) the amount of interest that would
accrue on such principal amount for such period at the interest rate which 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 8.04, and the basis
therefor, shall be delivered to the Borrower and shall be conclusive and binding
for all purposes, absent manifest error.

                  (d)      If any Loan Party fails to pay when due any costs,
expenses or other amounts payable by it under any Loan Document, including,
without limitation, reasonable fees and expenses of counsel and indemnities,
such amount may be paid on behalf of such Loan Party by the Paying Agent or any
Lender Party, in its sole discretion.

                  (e)      Without prejudice to the survival of any other
agreement of any Loan Party hereunder or under any other Loan Document, the
agreements and obligations of the Borrower contained in Sections 2.10 and 2.12
and this Section 8.04 shall survive the payment in full of principal, interest
and all other amounts payable hereunder and under any of the other Loan
Documents.

                  SECTION 8.05. Right of Set-off. Upon (a) the occurrence and
during the continuance of any Event of Default and (b) the making of the request
or the granting of the consent specified by Section 6.01 to authorize the Paying
Agent to declare the Notes due and payable pursuant to the provisions of Section
6.01, each Agent and each Lender Party and each of their respective Affiliates
is hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and otherwise apply any and all deposits (general
or special, time or demand, provisional or final) at any time held and other
indebtedness at any time owing by such Agent, such Lender Party or such
Affiliate to or for the credit or the account of the Borrower against any and
all of the Obligations of the Borrower now or hereafter existing under the Loan
Documents, irrespective of whether such Agent or such Lender Party shall have
made any demand under this Agreement or such Note or Notes and although such
Obligations may be unmatured. Each Agent and each Lender Party agrees promptly
to notify the Borrower after any

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such set-off and application; provided, however, that the failure to give such
notice shall not affect the validity of such set-off and application. The rights
of each Agent and each Lender Party and their respective Affiliates under this
Section 8.05 are in addition to other rights and remedies (including, without
limitation, other rights of set-off) that such Agent, such Lender Party and
their respective Affiliates may have.

                  SECTION 8.06. Binding Effect. This Agreement shall become
effective when it shall have been executed by the Borrower and each Agent and
the Paying Agent shall have been notified by each Initial Lender Party that such
Initial Lender Party has executed it and thereafter shall be binding upon and
inure to the benefit of the Borrower, each Agent and each Lender Party and their
respective successors and assigns, except that the Borrower shall not have the
right to assign its rights hereunder or any interest herein without the prior
written consent of the Lender Parties.

                  SECTION 8.07. Assignments and Participations. (a) Any Lender
(i) may (and in the case of clause (B) below, shall) assign to one or more
Eligible Assignees or an Affiliate of a Lender that is not an Eligible Assignee
all or a portion of its rights and obligations under this Agreement (including,
without limitation, all or a portion of its Commitment or Commitments, the
Advances owing to it and the Note or Notes held by it); provided, however, that
(A) except in the case of an assignment to an Eligible Assignee that is a Lender
or an Affiliate of a Lender, each of the Paying Agent and, unless a Default
shall have occurred and be continuing at the time such assignment is effected,
the Borrower must give their prior consent to such assignment (which consent
shall not be unreasonably withheld or delayed) and (B) if the assignment is
demanded by the Borrower pursuant to Section 2.17, no Default shall have
occurred and be continuing at the time of such demand and such assignment and
the Borrower shall have given at least five Business Days' notice of such demand
to the applicable Lender and the Paying Agent; provided, however, that (i) each
such assignment shall be of a uniform, and not a varying, percentage of all
rights and obligations under and in respect of one or more of the Facilities,
(ii) except in the case of an assignment to a Person that, immediately prior to
such assignment, was a Lender, an Affiliate of any Lender or an assignment of
all of a Lender's rights and obligations under this Agreement, the aggregate
amount of the Commitments being assigned to such Eligible Assignee pursuant to
such assignment (determined as of the date of the Assignment and Acceptance with
respect to such assignment) shall in no event be less than the lesser of
$5,000,000 and 5% of the aggregate amount (or such lesser amount as shall be
approved by the Paying Agent and, so long as no Default shall have occurred and
be continuing at the time of effectiveness of such assignment, the Borrower) of
the Commitment being assigned, (iii) each such assignment shall be to an
Eligible Assignee or an Affiliate of a Lender, (iv) each such assignment made as
a result of a demand by the Borrower pursuant to Section 2.17 shall be arranged
by the Borrower after consultation with the Paying Agent and shall be either an
assignment of all of the rights and obligations of the assigning Lender under
this Agreement or an assignment of a portion of such rights and obligations made
concurrently with another such assignment or other such assignments that
together cover all of the rights and obligations of the assigning Lender under
this Agreement, (v) no Lender shall be obligated to make any such assignment
(whether as a result of a demand by the Borrower pursuant to Section 2.17 or
otherwise) unless and until such Lender shall have received one or more payments
from either the Borrower or one or more Eligible Assignees in an aggregate
amount at least equal to the aggregate outstanding principal amount of the
Advances owing to such Lender, together with

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accrued interest thereon to the date of payment of such principal amount and all
other amounts payable to such Lender under this Agreement, and (vi) the parties
to each such assignment shall execute and deliver to the Paying Agent, for its
acceptance and recording in the Register, an Assignment and Acceptance, together
with any Note or Notes subject to such assignment and a processing and
recordation fee of $3,500; provided, however, the Borrower shall have no
liability for the payment of such fee except that for each such assignment made
as a result of a demand by the Borrower pursuant to Section 2.17, the Borrower
shall pay to the Paying Agent the applicable processing and recordation fee.

                  (b)      Upon such execution, delivery, acceptance and
recording, from and after the effective date specified in such Assignment and
Acceptance, (i) the assignee thereunder shall be a party hereto and, to the
extent that rights and obligations hereunder have been assigned to it pursuant
to such Assignment and Acceptance, have the rights and obligations of a Lender
or Issuing Bank, as the case may be, hereunder and (ii) the Lender or Issuing
Bank assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance,
relinquish its rights (other than its rights under Sections 2.10, 2.12 and 8.04
to the extent any claim thereunder relates to an event arising prior to such
assignment) and be released from its obligations under this Agreement (and, in
the case of an Assignment and Acceptance covering all of the remaining portion
of an assigning Lender's or Issuing Bank's rights and obligations under this
Agreement, such Lender or Issuing Bank shall cease to be a party hereto).

                  (c)      By executing and delivering an Assignment and
Acceptance, each Lender Party assignor thereunder and each assignee thereunder
confirm to and agree with each other and the other parties thereto and hereto as
follows: (i) other than as provided in such Assignment and Acceptance, such
assigning Lender Party makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with any Loan Document or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of, or the
perfection or priority of any Lien created or purported to be created under or
in connection with, any Loan Document or any other instrument or document
furnished pursuant thereto; (ii) such assigning Lender Party makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the General Partner, any Loan Party or the performance or
observance by any Loan Party of any of its obligations under any Loan Document
or any other instrument or document furnished pursuant thereto; (iii) such
assignee confirms that it has received a copy of this Agreement, together with
copies of the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Acceptance; (iv) such
assignee will, independently and without reliance upon any Agent, such assigning
Lender Party or any other Lender Party and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement; (v) such
assignee confirms that it is an Eligible Assignee; (vi) such assignee appoints
and authorizes each Agent to take such action as agent on its behalf and to
exercise such powers and discretion under the Loan Documents as are delegated to
such Agent by the terms hereof and thereof, together with such powers and
discretion as are reasonably incidental thereto; and (vii) such assignee agrees
that it will perform in accordance with their terms all of the obligations that
by the terms

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of this Agreement are required to be performed by it as a Lender or Issuing
Bank, as the case may be.

                  (d)      The Paying Agent shall maintain at its address
referred to in Section 8.02 a copy of each Assignment and Acceptance delivered
to and accepted by it and a register for the recordation of the names and
addresses of the Lender Parties and the Commitment under each Facility of, and
principal amount of the Advances owing under each Facility to, each Lender Party
from time to time (the "REGISTER"). The entries in the Register shall be
conclusive and binding for all purposes, absent manifest error, and the
Borrower, the Agents and the Lender Parties may treat each Person whose name is
recorded in the Register as a Lender Party hereunder for all purposes of this
Agreement. The Register shall be available for inspection by the Borrower or any
Agent or any Lender Party at any reasonable time and from time to time upon
reasonable prior notice.

                  (e)      Upon its receipt of an Assignment and Acceptance
executed by an assigning Lender Party and an assignee, together with any Note or
Notes subject to such assignment, the Paying Agent shall, if such Assignment and
Acceptance has been completed and is in substantially the form of Exhibit C
hereto, (i) accept such Assignment and Acceptance, (ii) record the information
contained therein in the Register and (iii) give prompt notice thereof to the
Borrower and each other Agent. In the case of any assignment by a Lender, within
five Business Days after its receipt of such notice, the Borrower, at its own
expense, shall, if new Notes are requested by the applicable assignee and/or
assignor, execute and deliver to the Paying Agent in exchange for the
surrendered Note or Notes a new Note to the order of such Eligible Assignee in
an amount equal to the Commitment assumed by it under each Facility pursuant to
such Assignment and Acceptance and, if any assigning Lender has retained a
Commitment hereunder under such Facility, a new Note to the order of such
assigning Lender in an amount equal to the Commitment retained by it hereunder.
Such new Note or Notes shall be in an aggregate principal amount equal to the
aggregate principal amount of such surrendered Note or Notes, shall be dated the
effective date of such Assignment and Acceptance and shall otherwise be in
substantially the form of Exhibit A hereto.

                  (f)      Each Issuing Bank may assign to one or more Eligible
Assignees all or a portion of its rights and obligations under the undrawn
portion of its Letter of Credit Commitment at any time; provided, however, that
(i) except in the case of an assignment to a Person that immediately prior to
such assignment was an Issuing Bank or an assignment of all of an Issuing Bank's
rights and obligations under this Agreement, the amount of the Letter of Credit
Commitment of the assigning Issuing Bank being assigned pursuant to each such
assignment (determined as of the date of the Assignment and Acceptance with
respect to such assignment) shall in no event be less than $5,000,000 or an
integral multiple of $1,000,000 in excess thereof, (ii) each such assignment
shall be to an Eligible Assignee and (iii) the parties to each such assignment
shall execute and deliver to the Paying Agent, for its acceptance and recording
in the Register, an Assignment and Acceptance, together with a processing and
recordation fee of $3,500.

                  (g)      Each Lender Party may sell participations to one or
more Persons (other than any Loan Party or any of its Affiliates) in or to all
or a portion of its rights and obligations under this Agreement (including,
without limitation, all or a portion of its Commitments, the

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Advances owing to it and the Note or Notes (if any) held by it); provided,
however, that (i) such Lender Party's obligations under this Agreement
(including, without limitation, its Commitments) shall remain unchanged, (ii)
such Lender Party shall remain solely responsible to the other parties hereto
for the performance of such obligations, (iii) such Lender Party shall remain
the holder of any such Note for all purposes of this Agreement, (iv) the
Borrower, the Agents and the other Lender Parties shall continue to deal solely
and directly with such Lender Party in connection with such Lender Party's
rights and obligations under this Agreement and (v) no participant under any
such participation shall have any right to approve any amendment or waiver of
any provision of any Loan Document, or any consent to any departure by or on
behalf of any Loan Party therefrom, except to the extent that such amendment,
waiver or consent would reduce the principal of, or interest on, the Notes or
any fees or other amounts payable hereunder, in each case to the extent subject
to such participation, postpone any date fixed for any payment of principal of,
or interest on, the Notes or any fees or other amounts payable hereunder, in
each case to the extent subject to such participation, or release any Subsidiary
Guarantor.

                  (h)      Any Lender Party may, in connection with any
assignment or participation or proposed assignment or participation pursuant to
this Section 8.07, disclose to the assignee or participant or proposed assignee
or participant any information relating to the Borrower furnished to such Lender
Party by or on behalf of the Borrower; provided, however, that, prior to any
such disclosure, the assignee or participant or proposed assignee or participant
shall agree to preserve the confidentiality of any Confidential Information
received by it from such Lender Party in accordance with Section 8.10.

                  (i)      Notwithstanding any other provision set forth in this
Agreement, any Lender Party may at any time pledge or assign all or any portion
of its rights under this Agreement (including, without limitation, the Advances
owing to it and the Note or Notes held by it) in favor of any Federal Reserve
Bank in accordance with Regulation A of the Board of Governors of the Federal
Reserve System; provided that no such pledge or assignment shall release a
Lender Party from any of its obligations hereunder or substitute any such
pledgee or assignee for such Lender Party as a party hereto.

                  SECTION 8.08. Execution in Counterparts. This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Agreement by telecopier shall be effective as delivery of an original executed
counterpart of this Agreement.

                  SECTION 8.09. No Liability of the Issuing Banks. The Borrower
assumes all risks of the acts or omissions of any beneficiary or transferee of
any Letter of Credit with respect to its use of such Letter of Credit. Neither
any Issuing Bank nor any of its officers or directors shall be liable or
responsible for: (a) the use that may be made of any Letter of Credit or any
acts or omissions of any beneficiary or transferee in connection therewith; (b)
the validity, sufficiency or genuineness of documents, or of any endorsement
thereon, even if such documents should prove to be in any or all respects
invalid, insufficient, fraudulent or forged; (c) payment by such Issuing Bank
against presentation of documents that do not comply with the terms of a Letter
of Credit, including failure of any documents to bear any reference or adequate
reference to the

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Letter of Credit; or (d) any other circumstances whatsoever in making or failing
to make payment under any Letter of Credit, except that the Borrower shall have
a claim against such Issuing Bank, and such Issuing Bank shall be liable to the
Borrower, to the extent of any direct, but not consequential, damages suffered
by the Borrower or any of its Subsidiaries that the Borrower proves were caused
by (i) such Issuing Bank's willful misconduct or gross negligence as determined
in a final, non-appealable judgment by a court of competent jurisdiction in
determining whether documents presented under any Letter of Credit comply with
the terms of the Letter of Credit or (ii) such Issuing Bank's willful failure to
make lawful payment under a Letter of Credit after the presentation to it of a
draft and certificates strictly complying with the terms and conditions of the
Letter of Credit. In furtherance and not in limitation of the foregoing, such
Issuing Bank may accept documents that appear on their face to be in order,
without responsibility for further investigation, regardless of any notice or
information to the contrary.

                  SECTION 8.10. Confidentiality. Neither any Agent nor any
Lender Party shall disclose any Confidential Information to any Person without
the consent of the Borrower, other than (a) to such Agent's or such Lender
Party's Affiliates and their officers, directors, employees, agents and advisors
and to actual or prospective Eligible Assignees, participants and swap or
securitization counterparties, and then only on a confidential basis, (b) as
required by any law, rule or regulation or judicial process, (c) as requested or
required by any state, Federal or foreign authority or examiner regulating such
Lender Party, (d) to any rating agency when required by it; provided that, prior
to any such disclosure, such rating agency shall undertake to preserve the
confidentiality of any Confidential Information relating to the Loan Parties
received by it from such Lender Party on the same basis as applicable to a
Lender Party under this Section 8.10, and (e) as may be reasonably necessary in
enforcing its rights hereunder and under the other Loan Documents.
Notwithstanding anything herein to the contrary, the Borrower, the Agents and
the Lender Parties agree that each of the Borrower, the Agents and the Lender
Parties (and each of their respective officers, directors, employees,
accountants, attorneys and other advisors, agents and representatives) may
disclose to any and all persons, without limitation of any kind, the U.S. tax
treatment and U.S. tax structure of the Transaction and all materials of any
kind (including opinions and other tax analyses) that are provided to any of
them relating to such U.S. tax treatment and U.S. tax structure.

                  SECTION 8.11. Jurisdiction, Etc. (a) Each of the parties
hereto 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 County, and
any appellate court from any thereof, in any action or proceeding arising out of
or relating to this Agreement or any of the other Loan Documents to which it is
a party, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in any such
New York State court or, to the fullest extent permitted by law, in such Federal
court. Each of the parties hereto agrees that a final judgment in any such
action or proceeding, to the extent permitted by law, 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
any party may otherwise have to bring any action or proceeding relating to this
Agreement or any of the other Loan Documents in the courts of any jurisdiction.

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                  (b)      Each of the parties hereto 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
any of the other Loan Documents to which it is a party in any New York State or
Federal court. Each of the parties hereto hereby irrevocably waives, to the
fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

                  SECTION 8.12. Governing Law. This Agreement and the Notes
shall be governed by, and construed in accordance with, the laws of the State of
New York.

                  SECTION 8.13. Non-Recourse to the General Partner and
Associated Persons. Each Agent and each Lender Party agrees on behalf of itself
and its successors, assigns and legal representatives, that neither the General
Partner, the Special General Partner nor any Person (other than the Loan
Parties) which is a partner, shareholder, member, owner, officer, director,
supervisor, trustee or other principal (collectively, "ASSOCIATED PERSONS") of
the Borrower, the General Partner, the Special General Partner or a Subsidiary
Guarantor, or any of their respective successors or assigns, shall have any
personal liability for the payment or performance of any of the Borrower s
obligations hereunder or under any of the Notes and no monetary or other
judgment shall be sought or enforced against the General Partner, the Special
General Partner or any of such Associated Persons or any of their respective
successors or assigns. Notwithstanding the foregoing, neither any Agent nor any
Lender Party shall be deemed barred by this Section 8.13 from asserting any
claim against any Person based upon an allegation of fraud or misrepresentation.

                                       92

<PAGE>

                  SECTION 8.14. WAIVER OF JURY TRIAL. EACH OF THE BORROWER, THE
AGENTS AND THE LENDER PARTIES IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN
ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS, THE
ADVANCES, THE LETTERS OF CREDIT OR THE ACTIONS OF ANY AGENT OR ANY LENDER PARTY
IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF.

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

                                    ALLIANCE RESOURCE OPERATING PARTNERS, L.P.

                                    By: ALLIANCE RESOURCE MANAGEMENT GP, LLC,
                                        Its Managing General Partner

                                    By: /s/ Cary P. Marshall
                                    ------------------------
                                        Name:  Cary P. Marshall
                                        Title: Vice President-Corporate Finance
                                               and Treasurer

                                       93

<PAGE>

                           JPMORGAN CHASE BANK,
                              as Paying Agent and Co-Administrative Agent

                           By: /s/ Peter S. Predun
                           -----------------------
                               Name:  Peter S. Predun
                               Title: Vice President

                                      94

<PAGE>

                           CITICORP USA,INC.,
                              as Co-Administrative Agent

                           By: /s/ Daniel J. Miller
                           ------------------------
                               Name:  Daniel J. Miller
                               Title: Vice President

                                       95

<PAGE>

                           Initial Lender Parties

                           CITICORP USA,INC., as an Initial Lender

                           By: /s/ Daniel J. Miller
                           ------------------------
                               Name:  Daniel J. Miller
                               Title: Vice President

                                       96

<PAGE>

                           BNP PARIBAS, as and Initial Lender,

                           By: /s/ Evans R. Swann
                           ----------------------
                               Name:  Evans R. Swann
                               Title: Director

                           By: /s/ Greg Smothers
                           ---------------------
                               Name:  Greg Smothers
                               Title: Vice President

                                       97

<PAGE>

                           FIRST COMMERCIAL BANK, LOS ANGELES BRANCH,
                                as an Initial Lender

                           By: /s/ Shang-Shing Chiang
                           --------------------------
                               Name:  Shang-Shing Chiang
                               Title: FAVP & Deputy General Manager

                                       98

<PAGE>

                           US BANK NATIONAL ASSOCIATION, as an Initial Lender

                           By: /s/ Eric Hartman
                           --------------------
                               Name: Eric Hartman
                               Title: Vice President

                                       99

<PAGE>

                          BRANCH BANKING AND TRUST COMPANY, as an Initial Lender

                          By: /s/ Stephen J. Wood
                          -----------------------
                              Name: Stephen J. Wood
                              Title: Vice President

                                      100

<PAGE>

                           LASALLE BANK NATIONAL ASSOCIATION, as an Initial
                              Lender

                           By: /s/ Margaret C. Dierkes
                           ---------------------------
                               Name: Margaret C. Dierkes
                               Title: Assistant Vice President

                                      101

<PAGE>

                           BANK OF OKLAHOMA, N.A, as an Initial Lender and an
                               initial Issuing Bank

                           By: /s/ Jamey C. Golla
                           ----------------------
                               Name:  Jamey C. Golla
                               Title: Assistant Vice President

                                      102

<PAGE>

                           FIFTH THIRD BANK, as an Initial Lender

                           By: /s/ Michael R. Mendenhall
                           -----------------------------
                               Name:  Michael R. Mendenhall
                               Title: Corporate Banking Officer

                                      103

<PAGE>

Alliance Credit Agreement

                                      104

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