Document:

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                                                                     EXHIBIT 4.2

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                               CLECO CORPORATION

                                       To

                                BANK ONE, N.A.,

                                    Trustee

                                _______________

                             SUBORDINATED INDENTURE

                        Dated as of _____________, 2000

                                _______________

       =================================================================
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                 CERTAIN SECTIONS OF THIS INDENTURE RELATING TO
                           SECTIONS 310 THROUGH 318,
                 INCLUSIVE, OF THE TRUST INDENTURE ACT OF 1939:
<TABLE>
<CAPTION>
TRUST INDENTURE
 ACT SECTION                                                                                 INDENTURE SECTION(S)
<S>                                                                                         <C>
 Section 310(a)(1)     ..............................................................              609
      (a)(2)           ..............................................................              609
      (a)(3)           ..............................................................              Not Applicable
      (a)(4)           ..............................................................              Not Applicable
        (b)            ..............................................................              608, 610
 Section 311(a)        ..............................................................              613
         (b)           ..............................................................              613
 Section 312(a)        ..............................................................              701, 702
        (b)            ..............................................................              702
        (c)            ..............................................................              702
 Section 313(a)        ..............................................................              703
        (b)            ..............................................................              703
        (c)            ..............................................................              703
        (d)            ..............................................................              703
 Section 314(a)        ..............................................................              704
      (a)(4)           ..............................................................              101, 1004
        (b)            ..............................................................              Not Applicable
      (c)(1)           ..............................................................              102
      (c)(2)           ..............................................................              102
      (c)(3)           ..............................................................              Not Applicable
        (d)            ..............................................................              Not Applicable
        (e)            ..............................................................              102
 Section 315(a)        ..............................................................              601
        (b)            ..............................................................              602
        (c)            ..............................................................              601
        (d)            ..............................................................              601
        (e)            ..............................................................              514
 Section 316(a)        ..............................................................              101
   (a)(1)(A)           ..............................................................              502, 512
   (a)(1)(B)           ..............................................................              513
      (a)(2)           ..............................................................              Not Applicable
        (b)            ..............................................................              508
        (c)            ..............................................................              104
 Section 317(a)(1)     ..............................................................              503
      (a)(2)           ..............................................................              504
        (b)            ..............................................................              1003
 Section 318(a)        ..............................................................              107
_______________
</TABLE>
NOTE:  This reconciliation and tie shall not, for any purpose, be deemed to be a
part of the Indenture.
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                               TABLE OF CONTENTS
                                                                            PAGE

ARTICLE ONE     DEFINITIONS AND OTHER PROVISIONS OF GENERAL
                APPLICATION.................................................  1

 SECTION 101. Definitions...................................................  1
 SECTION 102. Compliance Certificates and Opinions..........................  8
 SECTION 103. Form of Documents Delivered to Trustee........................  9
 SECTION 104. Acts of Holders; Record Dates.................................  9
 SECTION 105. Notices, Etc., to Trustee and Company......................... 11
 SECTION 106. Notice to Holders; Waiver..................................... 12
 SECTION 107. Conflict with Trust Indenture Act............................. 12
 SECTION 108. Effect of Headings and Table of Contents...................... 12
 SECTION 109. Successors and Assigns........................................ 12
 SECTION 110. Separability Clause........................................... 12
 SECTION 111. Benefits of Indenture......................................... 13
 SECTION 112. Governing Law................................................. 13
 SECTION 113. Legal Holidays................................................ 13

ARTICLE TWO     SECURITY FORMS.............................................. 13

 SECTION 201. Forms Generally............................................... 13
 SECTION 202. Form of Face of Security...................................... 14
 SECTION 203. Form of Reverse of Security................................... 16
 SECTION 204. Form of Legend for Global Securities.......................... 21
 SECTION 205. Form of Trustee's Certificate of Authentication............... 21

ARTICLE THREE   THE SECURITIES.............................................. 22

 SECTION 301. Amount Unlimited; Issuable in Series.......................... 22
 SECTION 302. Denominations................................................. 25
 SECTION 303. Execution, Authentication, Delivery and Dating................ 25
 SECTION 304. Temporary Securities.......................................... 27
 SECTION 305. Registration, Registration of Transfer and Exchange........... 27
 SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities.............. 29
 SECTION 307. Payment of Interest; Interest Rights Preserved; Optional
              Interest Reset................................................ 30
 SECTION 308. Optional Extension of Maturity................................ 32
 SECTION 309. Persons Deemed Owners......................................... 33
 SECTION 310. Cancellation.................................................. 33
 SECTION 311. Computation of Interest....................................... 34
 SECTION 312. CUSIP Numbers................................................. 34

ARTICLE FOUR    SATISFACTION AND DISCHARGE.................................. 34

 SECTION 401. Satisfaction and Discharge of Indenture....................... 34
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 SECTION 402. Application of Trust Money.................................... 35

ARTICLE FIVE    REMEDIES.................................................... 36

 SECTION 501. Events of Default............................................. 36
 SECTION 502. Acceleration of Maturity; Rescission and Annulment............ 37
 SECTION 503. Collection of Indebtedness and Suits for Enforcement by
              Trustee....................................................... 38
 SECTION 504. Trustee May File Proofs of Claim.............................. 39
 SECTION 505. Trustee May Enforce Claims Without Possession of Securities... 39
 SECTION 506. Application of Money Collected................................ 40
 SECTION 507. Limitation on Suits........................................... 40
 SECTION 508. Unconditional Right of Holders to Receive Principal,
              Premium and Interest.......................................... 41
 SECTION 509. Restoration of Rights and Remedies............................ 41
 SECTION 510. Rights and Remedies Cumulative................................ 41
 SECTION 511. Delay or Omission Not Waiver.................................. 41
 SECTION 512. Control by Holders............................................ 42
 SECTION 513. Waiver of Past Defaults....................................... 42
 SECTION 514. Undertaking for Costs......................................... 42
 SECTION 515. Waiver of Usury, Stay or Extension Laws....................... 43

ARTICLE SIX     THE TRUSTEE................................................. 43

 SECTION 601. Certain Duties and Responsibilities........................... 43
 SECTION 602. Notice of Defaults............................................ 43
 SECTION 603. Certain Rights of Trustee..................................... 43
 SECTION 604. Not Responsible for Recitals or Issuance of Securities........ 45
 SECTION 605. May Hold Securities........................................... 45
 SECTION 606. Money Held in Trust........................................... 45
 SECTION 607. Compensation and Reimbursement................................ 45
 SECTION 608. Conflicting Interests......................................... 46
 SECTION 609. Corporate Trustee Required; Eligibility....................... 46
 SECTION 610. Resignation and Removal; Appointment of Successor............. 46
 SECTION 611. Acceptance of Appointment by Successor........................ 48
 SECTION 612. Merger, Conversion, Consolidation or Succession to Business... 49
 SECTION 613. Preferential Collection of Claims Against Company............. 49
 SECTION 614. Appointment of Authenticating Agent........................... 49

ARTICLE SEVEN   HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY........... 51

 SECTION 701. Company to Furnish Trustee Names and Addresses of Holders..... 51
 SECTION 702. Preservation of Information; Communications to Holders........ 51
 SECTION 703. Reports by Trustee............................................ 52
 SECTION 704. Reports by Company............................................ 52

                                      ii
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ARTICLE EIGHT   CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE........ 52

 SECTION 801. Company May Consolidate, Etc., Only on Certain Terms.......... 52
 SECTION 802. Successor Substituted......................................... 53

ARTICLE NINE    SUPPLEMENTAL INDENTURES..................................... 54

 SECTION 901. Supplemental Indentures Without Consent of Holders............ 54
 SECTION 902. Supplemental Indentures With Consent of Holders............... 55
 SECTION 903. Execution of Supplemental Indentures.......................... 57
 SECTION 904. Effect of Supplemental Indentures............................. 57
 SECTION 905. Conformity with Trust Indenture Act........................... 57
 SECTION 906. Reference in Securities to Supplemental Indentures............ 57

ARTICLE TEN     COVENANTS................................................... 57

 SECTION 1001. Payment of Principal, Premium and Interest................... 57
 SECTION 1002. Maintenance of Office or Agency.............................. 58
 SECTION 1003. Money for Securities Payments to Be Held in Trust............ 58
 SECTION 1004. Statement by Officers as to Default.......................... 59
 SECTION 1005. Existence.................................................... 59
 SECTION 1006. Waiver of Certain Covenants.................................. 59

ARTICLE ELEVEN  REDEMPTION OF SECURITIES.................................... 60

 SECTION 1101. Applicability of Article..................................... 60
 SECTION 1102. Election to Redeem; Notice to Trustee........................ 60
 SECTION 1103. Selection by Trustee of Securities to Be Redeemed............ 60
 SECTION 1104. Notice of Redemption......................................... 61
 SECTION 1105. Deposit of Redemption Price.................................. 62
 SECTION 1106. Securities Payable on Redemption Date........................ 62
 SECTION 1107. Securities Redeemed in Part.................................. 62

ARTICLE TWELVE  SINKING FUNDS............................................... 63

 SECTION 1201. Applicability of Article..................................... 63
 SECTION 1202. Satisfaction of Sinking Fund Payments with Securities........ 63
 SECTION 1203. Redemption of Securities for Sinking Fund.................... 63

ARTICLE THIRTEEN REPAYMENT AT THE OPTION OF THE HOLDERS..................... 64

 SECTION 1301. Applicability of Article..................................... 64
 SECTION 1302. Repayment of Securities...................................... 64
 SECTION 1303. Exercise of Option........................................... 64
 SECTION 1304. When Securities Presented for Repayment Become Due and
               Payable...................................................... 65
 SECTION 1305. Securities Repaid in Part.................................... 65

                                      iii
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ARTICLE FOURTEEN DEFEASANCE AND COVENANT DEFEASANCE......................... 65

 SECTION 1401. Company's Option to Effect Defeasance or Covenant
               Defeasance................................................... 65
 SECTION 1402. Defeasance and Discharge..................................... 66
 SECTION 1403. Covenant Defeasance.......................................... 66
 SECTION 1404. Conditions to Defeasance or Covenant Defeasance.............. 66
 SECTION 1405. Acknowledgment of Discharge By Trustee....................... 68
 SECTION 1406. Deposited Money and U.S. Government Obligations to Be
               Held in Trust; Miscellaneous Provisions...................... 68
 SECTION 1407. Reinstatement................................................ 69

ARTICLE FIFTEEN IMMUNITY OF INCORPORATORS, SHAREHOLDERS, OFFICERS,
                DIRECTORS AND EMPLOYEES..................................... 69

 SECTION 1501. Exemption from Individual Liability.......................... 69

ARTICLE SIXTEEN SUBORDINATION............................................... 70

 SECTION 1601. Agreement to Subordinate..................................... 70
 SECTION 1602. Default on Senior Debt....................................... 70
 SECTION 1603. Liquidation; Dissolution; Bankruptcy......................... 71
 SECTION 1604. Subrogation of Securities.................................... 72
 SECTION 1605. Authorization by Holders..................................... 73
 SECTION 1606. Notice to Trustee............................................ 73
 SECTION 1607. Trustee's Relation to Senior Debt............................ 74
 SECTION 1608. No Impairment to Subordination............................... 74
 SECTION 1609. Article Applicable to Paying Agents.......................... 75
 SECTION 1610. Trust Moneys Not Subordinated................................ 75

                                      iv
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          SUBORDINATED INDENTURE (herein called this "Indenture"), dated as of
___________, 2000, between Cleco Corporation, a corporation duly organized and
existing under the laws of the State of Louisiana (herein called the "Company"),
having its principal office at 2030 Donahue Ferry Road, Pineville, Louisiana
71360-5226, and Bank One, N.A., a national banking association duly organized
and existing under the laws of the United States of America, as Trustee (herein
called the "Trustee").

                            RECITALS OF THE COMPANY

          The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its subordinated
debentures, notes or other evidences of indebtedness (herein called the
"Securities"), to be issued in one or more series as in this Indenture provided.

          All things necessary to make this Indenture a valid agreement of the
Company, in accordance with its terms, have been done.

          NOW, THEREFORE, THIS INDENTURE WITNESSETH:

          For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all Holders of the Securities or of any
series thereof, as follows:

                                  ARTICLE ONE

                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

SECTION 101. Definitions.

          For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires:

          (1) the terms defined in this Article have the meanings assigned to
     them in this Article and include the plural as well as the singular;

          (2) all other terms used herein which are defined in the Trust
     Indenture Act, either directly or by reference therein, have the meanings
     assigned to them therein;

          (3) all accounting terms not otherwise defined herein have the
     meanings assigned to them in accordance with generally accepted accounting
     principles in the United States of America, and, except as otherwise herein
     expressly provided, the term "generally accepted accounting principles"
     with respect to any computation required or permitted hereunder shall mean
     such accounting principles as are generally accepted in the United States
     of America at the date of such computation, provided that when two or more
     principles are so generally accepted, it shall mean that set of principles
     consistent with those in use by the Company;

                                       1
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          (4) unless the context otherwise requires, any reference to an
     "Article" or a "Section" refers to an Article or a Section, as the case may
     be, of this Indenture; and

          (5) the words "herein", "hereof" and "hereunder" and other words of
     similar import refer to this Indenture as a whole and not to any particular
     Article, Section or other subdivision.

          "Act", when used with respect to any Holder, has the meaning
specified in Section 104.

          "Affiliate" of any specified Person means any other Person directly
or indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

          "Authenticating Agent" means any Person authorized by the Trustee
pursuant to Section 614 to act on behalf of the Trustee to authenticate
Securities of one or more series.

          "Board of Directors" means either the board of directors of the
Company or any duly authorized committee of that board.

          "Board Resolution" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted by
the Board of Directors, or such committee of the Board of Directors or officers
of the Company to which authority to act on behalf of the Board of Directors has
been delegated, and to be in full force and effect on the date of such
certification, and delivered to the Trustee.

          "Business Day", when used with respect to any Place of Payment,
means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on
which banking institutions in that Place of Payment are authorized or obligated
by law or executive order to close.

          "Commission" means the Securities and Exchange Commission, from time
to time constituted, created under the Exchange Act, or, if at any time after
the execution of this instrument such Commission is not existing and performing
the duties now assigned to it under the Trust Indenture Act, then the body
performing such duties at such time.

          "Company" means the Person named as the "Company" in the first
paragraph of this instrument until a successor Person shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Company" shall mean such successor Person.

          "Company Request" or "Company Order" mean, respectively,  a written
request or order signed in the name of the Company by its Chairman of the Board,
its Chief Financial Officer, its President or a Vice President, and by its
Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and
delivered to the Trustee.

                                       2
<PAGE>

          "Corporate Trust Office" means the principal office of the Trustee
at which at any particular time its corporate trust business shall be
administered, as follows: (a) for payment, registration, transfer and exchange
of the Securities: Bank One, N.A., 235 West Schrock Road, Corporate Trust
Operations - OH1-0184, Westerville, Ohio 43801, telephone: (641) 248-5805;
telecopier: (614) 248-4640; and (b) for all other communications relating to the
Securities: Bank One, N.A., 100 East Broad Street, Corporate Trust
Administration - OH1-0181, Columbus, Ohio 43215; telephone: (614) 248-6229;
telecopier: (614) 248-5195.

          "corporation" means a corporation, association, company, limited
liability company, joint-stock company or business trust.

          "Covenant Defeasance" has the meaning specified in Section 1403.

          "Debt" means, with respect to any Person at any date of determination
(without duplication), (i) all indebtedness of such Person for borrowed money,
(ii) all obligations of such Person evidenced by bonds, debentures, notes or
other similar instruments, including obligations incurred in connection with the
acquisition of property, assets or businesses, (iii) all obligations of such
Person in respect of letters of credit or bankers' acceptances or other similar
instruments (or reimbursement obligations thereto) issued on the account of such
Person, (iv) all obligations of such Person to pay the deferred purchase price
of property or services, except Trade Payables, (v) all obligations of such
Person as lessee under capitalized leases, (vi) all Debt of others secured by a
Lien on any asset of such Person, whether or not such Debt is assumed by such
Person; provided that, for purposes of determining the amount of any Debt of the
type described in this clause (vi), if recourse with respect to such Debt is
limited to such asset, the amount of such Debt shall be limited to the lesser of
the fair market value of such asset or the amount of such Debt, (vii) all Debt
of others Guaranteed by such Person to the extent such Debt is Guaranteed by
such Person, and (viii) to the extent not otherwise included in this definition,
all obligations of such Person for claims in respect of derivative products,
including interest rate, foreign exchange rate and commodity prices, forward
contracts, options, swaps, collars and similar arrangements.

          "Defaulted Interest" has the meaning specified in Section 307(a).

          "Defeasance" has the meaning specified in Section 1402.

          "Depositary" means, with respect to Securities of any series
issuable in whole or in part in the form of one or more Global Securities, a
clearing agency registered under the Exchange Act that is designated to act as
Depositary for such Securities as contemplated by Section 301.

          "Event of Default" has the meaning specified in Section 501.

          "Exchange Act" means the Securities Exchange Act of 1934 and any
statute successor thereto, in each case as amended from time to time.

          "Exchange Rate" has the meaning specified in Section 501.

          "Expiration Date" has the meaning specified in Section 104.

                                       3
<PAGE>

          "Extension Notice" has the meaning specified in Section 308.

          "Extension Period" has the meaning specified in Section 308.

          "Final Maturity" has the meaning specified in Section 308.

          "Global Security" means a Security that evidences all or part of
the Securities of any series and bears the legend set forth in Section 204 (or
such legend as may be specified as contemplated by Section 301 for such
Securities).

          "Guarantee" means any obligation, contingent or otherwise, of any
Person directly or indirectly guaranteeing any Debt or other obligation of any
other Person and, without limiting the generality of the foregoing, any
obligation, direct or indirect, contingent or otherwise, of such Person (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such
Debt or other obligation of such other Person (whether arising by virtue of
partnership arrangements, or by agreement to keep well, to purchase assets,
goods, securities or services, to take-or-pay, or to maintain financial
statement conditions or otherwise) or (ii) entered into for purposes of assuring
in any other manner the obligee of such Debt or other obligation of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or
in part); provided that the term "Guarantee" shall not include endorsements for
collection or deposit in the ordinary course of business. The term "Guarantee"
used as a verb has a corresponding meaning.

          "Holder" means a Person in whose name a Security is registered in the
Security Register.

          "Indenture" means this instrument as originally executed and as it
may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof,
including, for all purposes of this instrument and any such supplemental
indenture, the provisions of the Trust Indenture Act that are deemed to be a
part of and govern this instrument and any such supplemental indenture,
respectively. The term "Indenture" shall also include the terms of particular
series of Securities established as contemplated by Section 301.

          "interest", when used with respect to an Original Issue Discount
Security which by its terms bears interest only after Maturity, means interest
payable after Maturity.

          "Interest Payment Date", when used with respect to any Security,
means the Stated Maturity of an installment of interest on such Security.

          "Investment Company Act" means the Investment Company Act of 1940 and
any statute successor thereto, in each case as amended from time to time.

          "Lien" means, with respect to any property, any mortgage, lien,
pledge, charge, security interest or encumbrance of any kind in respect of such
property. For purposes of this Indenture, the Company shall be deemed to own
subject to a Lien any property which it has acquired or holds subject to the
interest of a vendor or lessor under any conditional sale agreement, capital
lease or other title retention agreement relating to such property.

                                       4
<PAGE>

          "Maturity", when used with respect to any Security, means the date
on which the principal of such Security or an installment of principal or
premium, if any, becomes due and payable as therein or herein provided, whether
at the Stated Maturity or by declaration of acceleration, call for redemption or
otherwise.

          "Maximum Interest Rate" has the meaning specified in Section 311.

          "Notice of Default" means a written notice of the kind specified in
Section 501(4).

          "Officers' Certificate" means a certificate signed by the Chairman of
the Board, the Chief Executive Officer, the Chief Financial Officer, the
President or a Vice President, and by the Treasurer, an Assistant Treasurer, the
Secretary or an Assistant Secretary, of the Company, and delivered to the
Trustee.

          "Opinion of Counsel" means a written opinion of counsel, who may be
counsel for the Company (and who may be an employee of the Company), and who
shall be acceptable to the Trustee.

          "Optional Reset Date" has the meaning specified in Section 307(b).

          "Original Issue Discount Security" means any Security which provides
for an amount less than the principal amount thereof to be due and payable upon
a declaration of acceleration of the Maturity thereof pursuant to Section 502.

          "Original Stated Maturity" has the meaning specified in Section 308.

          "Outstanding", when used with respect to Securities, means, as of
the date of determination, all Securities theretofore authenticated and
delivered under this Indenture, except:

          (1) Securities theretofore canceled by the Trustee or delivered to the
     Trustee for cancellation;

          (2) Securities for whose payment or redemption money in the necessary
     amount has been theretofore deposited with the Trustee or any Paying Agent
     (other than the Company) in trust or set aside and irrevocably segregated
     in trust by the Company (if the Company shall act as its own Paying Agent)
     for the Holders of such Securities; provided that, if such Securities are
     to be redeemed, notice of such redemption has been duly given pursuant to
     this Indenture or provision therefor satisfactory to the Trustee has been
     made;

          (3) Securities as to which Defeasance has been effected pursuant to
     Section 1402; and

          (4) Securities which have been paid pursuant to Section 306 or in
     exchange for or in lieu of which other Securities have been authenticated
     and delivered pursuant to this Indenture, other than any such Securities in
     respect of which there shall have been presented to the Trustee proof
     satisfactory to it that such Securities are held by a bona fide purchaser
     in whose hands such Securities are valid obligations of the Company;

                                       5
<PAGE>

     provided, however, that in determining whether the Holders of the requisite
     principal amount of the Outstanding Securities have given, made or taken
     any request, demand, authorization, direction, notice, consent, waiver or
     other action hereunder as of any date, (A) the principal amount of an
     Original Issue Discount Security which shall be deemed to be Outstanding
     shall be the amount of the principal thereof which would be due and payable
     as of such date upon acceleration of the Maturity thereof to such date
     pursuant to Section 502, (B) if, as of such date, the principal amount
     payable at the Stated Maturity of a Security is not determinable, the
     principal amount of such Security which shall be deemed to be Outstanding
     shall be the amount as specified or determined as contemplated by Section
     301, (C) the principal amount of a Security denominated in one or more
     foreign currencies or currency units which shall be deemed to be
     Outstanding shall be the U.S. dollar equivalent, determined as of such date
     in the manner provided as contemplated by Section 301, of the principal
     amount of such Security (or, in the case of a Security described in Clause
     (A) or (B) above, of the amount determined as provided in such Clause), and
     (D) Securities owned by the Company or any other obligor upon the
     Securities or any Affiliate of the Company or of such other obligor shall
     be disregarded and deemed not to be Outstanding, except that, in
     determining whether the Trustee shall be protected in relying upon any such
     request, demand, authorization, direction, notice, consent, waiver or other
     action, only Securities which the Trustee knows to be so owned shall be so
     disregarded.  Securities so owned which have been pledged in good faith may
     be regarded as Outstanding if the pledgee establishes to the satisfaction
     of the Trustee the pledgee's right so to act with respect to such
     Securities and that the pledgee is not the Company or any other obligor
     upon the Securities or any Affiliate of the Company or of such other
     obligor.

          "Paying Agent" means any Person authorized by the Company to pay the
principal of or any premium or interest on any Securities on behalf of the
Company. The Company initially authorizes and appoints the Trustee as the Paying
Agent for the Securities.

          "Person" means any individual, corporation, partnership, joint
venture, trust, unincorporated organization or government or any agency or
political subdivision thereof.

          "Place of Payment", when used with respect to the Securities of any
series, means the place or places where the principal of and any premium and
interest on the Securities of that series are payable as specified as
contemplated by Section 301.

          "Predecessor Security" of any particular Security means every
previous Security evidencing all or a portion of the same debt as that evidenced
by such particular Security; and, for the purposes of this definition, any
Security authenticated and delivered under Section 306 in exchange for or in
lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security.

          "Redemption Date", when used with respect to any Security to be
redeemed, means the date fixed for such redemption by or pursuant to this
Indenture.

          "Redemption Price", when used with respect to any Security to be
redeemed, means the price at which it is to be redeemed pursuant to this
Indenture.

                                       6
<PAGE>

          "Regular Record Date" for the interest payable on any Interest
Payment Date on the Securities of any series means the date specified for that
purpose as contemplated by Section 301.

          "Repayment Date" means, when used with respect to any Security to be
repaid at the option of the Holder, the date fixed for such repayment by or
pursuant to this Indenture.

          "Reset Notice" has the meaning specified in Section 307(b).

          "Responsible Officer", when used with respect to the Trustee, means
the chairman or any vice-chairman of the board of directors, the chairman or any
vice-chairman of the executive committee of the board of directors, the chairman
of the trust committee, the president, any vice president, the secretary, any
assistant secretary, the treasurer, any assistant treasurer, the cashier, any
assistant cashier, any trust officer or assistant trust officer, the controller
or any assistant controller or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his knowledge of
and familiarity with the particular subject.

          "Securities" has the meaning stated in the first recital of this
Indenture and more particularly means any Securities authenticated and delivered
under this Indenture.

          "Securities Act" means the Securities Act of 1933 and any statute
successor thereto, in each case as amended from time to time.

          "Security Register" and "Security Registrar" have the respective
meanings specified in Section 305.

          "Senior Debt" means the principal of (and premium, if any) and
interest on and all other amounts due in connection with all Debt of the Company
whether created, incurred or assumed before, on or after the date of this
Indenture; provided that such Senior Debt shall not include (i) Debt of the
Company to any Subsidiary, (ii) any series of Securities, (iii) Trade Payables
of the Company, (iv) Debt of the Company that, when incurred and without respect
to any election under Section 1111(b) of Title 11, U.S. Code, was without
recourse to the Company, and (v) any other Debt of the Company which by the
terms of the instrument creating or evidencing the same is specifically
designated as being subordinated to or pari passu with the Securities.

          "Special Record Date" for the payment of any Defaulted Interest means
a date fixed by the Trustee pursuant to Section 307(a).

          "Stated Maturity", when used with respect to any Security or any
installment of principal thereof or premium, if any, or interest thereon, means
the date specified in such Security as the fixed date on which the principal of
or premium, if any, on such Security or such installment of principal or
interest is due and payable.

          "Subsequent Interest Period" has the meaning specified in
Section 307(b).

                                       7
<PAGE>

          "Subsidiary" means a corporation more than 50% of the outstanding
voting stock of which is owned, directly or indirectly, by the Company or by one
or more other Subsidiaries, or by the Company and one or more other
Subsidiaries. For the purposes of this definition, "voting stock" means stock
which ordinarily has voting power for the election of directors, whether at all
times or only so long as no senior class of stock has such voting power by
reason of any contingency.

          "Trade Payables" means, with respect to any Person, any accounts
payable or any other indebtedness or monetary obligation to trade creditors
created, assumed or Guaranteed by such Person or any of its Subsidiaries arising
in the ordinary course of business in connection with the acquisition of goods
or services.

          "Trust Indenture Act" means the Trust Indenture Act of 1939 as in
force at the date as of which this instrument was executed; provided, however,
that in the event the Trust Indenture Act of 1939 is amended after such date,
"Trust Indenture Act" means, to the extent required by any such amendment, the
Trust Indenture Act of 1939 as so amended.

          "Trustee" means the Person named as the "Trustee" in the first
paragraph of this instrument until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Trustee" shall mean or include each Person who is then a Trustee hereunder, and
if at any time there is more than one such Person, "Trustee" as used with
respect to the Securities of any series shall mean the Trustee with respect to
Securities of that series.

          "U.S. Government Obligation" has the meaning specified in
Section 1404.

          "Vice President", when used with respect to the Company or the
Trustee, means any vice president, whether or not designated by a number or a
word or words added before or after the title "vice president."

          "Yield to Maturity" means the yield to maturity, computed at the time
of issuance of a Security (or, if applicable, at the most recent redetermination
of interest on such Security) and as set forth in such Security in accordance
with generally accepted United States bond yield computation principles.

SECTION 102. Compliance Certificates and Opinions.

          Upon any application or request by the Company to the Trustee to take
any action under any provision of this Indenture, the Company shall furnish to
the Trustee such certificates and opinions as may be required under the Trust
Indenture Act.  Each such certificate or opinion shall be given in the form of
an Officers' Certificate, if to be given by an officer of the Company, or an
Opinion of Counsel, if to be given by counsel, and shall comply with the
requirements of the Trust Indenture Act and any other requirements set forth in
this Indenture.

          Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

                                       8
<PAGE>

          (1) a statement that each individual signing such certificate or
     opinion has read such covenant or condition and the definitions herein
     relating thereto;

          (2) a brief statement as to the nature and scope of the examination or
     investigation upon which the statements or opinions contained in such
     certificate or opinion are based;

          (3) a statement that, in the opinion of each such individual, the
     individual has made or caused to be made such examination or investigation
     as is necessary to enable such individual to express an informed opinion as
     to whether or not such covenant or condition has been complied with; and

          (4) a statement as to whether, in the opinion of each such individual,
     such condition or covenant has been complied with.

SECTION 103. Form of Documents Delivered to Trustee.

          In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons may certify or give an opinion as to other matters,
and any such Person may certify or give an opinion as to such matters in one or
several documents.

          Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which such officer's certificate or opinion is
based are erroneous.  Any such certificate or Opinion of Counsel may be based,
insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.

          Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

SECTION 104. Acts of Holders; Record Dates.

          Any request, demand, authorization, direction, notice, consent, waiver
or other action provided or permitted by this Indenture to be given, made or
taken by Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by an agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein

                                       9
<PAGE>

sometimes referred to as the "Act" of the Holders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture
and (subject to Section 601) conclusive in favor of the Trustee and the Company,
if made in the manner provided in this Section.

          The fact and date of the execution by any Person of any such
instrument or writing may be proved in any reasonable manner which the Trustee
deems sufficient.  Where such execution is by a signer acting in a capacity
other than his individual capacity, such certificate or affidavit shall also
constitute sufficient proof of his authority.  The fact and date of the
execution of any such instrument or writing, or the authority of the Person
executing the same, may also be proved in any other manner which the Trustee
deems sufficient.

          The ownership of Securities shall be proved by the Security Register.

          Any request, demand, authorization, direction, notice, consent, waiver
or other Act of the Holder of any Security shall bind every future Holder of the
same Security and the Holder of every Security issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof in respect of
anything done, omitted or suffered to be done by the Trustee or the Company in
reliance thereon, whether or not notation of such action is made upon such
Security.

          The Company may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to
give, make or take any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made or taken by Holders of Securities of such series, provided that the
Company may not set a record date for, and the provisions of this paragraph
shall not apply with respect to, the giving or making of any notice,
declaration, request or direction referred to in the next paragraph.  If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of the relevant series on such record date, and no other Holders,
shall be entitled to take the relevant action, whether or not such Holders
remain Holders after such record date; provided that no such action shall be
effective hereunder unless taken on or prior to the applicable Expiration Date
by Holders of the requisite principal amount of Outstanding Securities of such
series on such record date.  Nothing in this paragraph shall be construed to
prevent the Company from setting a new record date for any action for which a
record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person
be canceled and of no effect), and nothing in this paragraph shall be construed
to render ineffective any action taken by Holders of the requisite principal
amount of Outstanding Securities of the relevant series on the date such action
is taken.  Promptly after any record date is set pursuant to this paragraph, the
Company, at its own expense, shall cause notice of such record date, the
proposed action by Holders and the applicable Expiration Date to be given to the
Trustee in writing and to each Holder of Securities of the relevant series in
the manner set forth in Section 106.

          The Trustee may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to join
in the giving or making of (i) any Notice of Default, (ii) any declaration of
acceleration referred to in Section 502, (iii) any request to institute
proceedings referred to in Section 507(2) or (iv) any direction referred to in
Section 512, in each case with respect to Securities of such series.  If any
record date is set pursuant to

                                       10
<PAGE>

this paragraph, the Holders of Outstanding Securities of such series on such
record date, and no other Holders, shall be entitled to join in such notice,
declaration, request or direction, whether or not such Holders remain Holders
after such record date; provided that no such action shall be effective
hereunder unless taken on or prior to the applicable Expiration Date by Holders
of the requisite principal amount of Outstanding Securities of such series on
such record date. Nothing in this paragraph shall be construed to prevent the
Trustee from setting a new record date for any action for which a record date
has previously been set pursuant to this paragraph (whereupon the record date
previously set shall automatically and with no action by any Person be canceled
and of no effect), and nothing in this paragraph shall be construed to render
ineffective any action taken by Holders of the requisite principal amount of
Outstanding Securities of the relevant series on the date such action is taken.
Promptly after any record date is set pursuant to this paragraph, the Trustee,
at the Company's expense, shall cause notice of such record date, the proposed
action by Holders and the applicable Expiration Date to be given to the Company
in writing and to each Holder of Securities of the relevant series in the manner
set forth in Section 106.

          With respect to any record date set pursuant to this Section, the
party hereto which sets such record dates may designate any day as the
"Expiration Date" and from time to time may change the Expiration Date to any
earlier or later day; provided that no such change shall be effective unless
notice of the proposed new Expiration Date is given to the other party hereto in
writing, and to each Holder of Securities of the relevant series in the manner
set forth in Section 106, on or prior to the existing Expiration Date.  If an
Expiration Date is not designated with respect to any record date set pursuant
to this Section, the party hereto which set such record date shall be deemed to
have initially designated the 180th day after such record date as the Expiration
Date with respect thereto, subject to its right to change the Expiration Date as
provided in this paragraph.  Notwithstanding the foregoing, no Expiration Date
shall be later than the 180th day after the applicable record date.

          Without limiting the foregoing, a Holder entitled hereunder to take
any action hereunder with regard to any particular Security may do so with
regard to all or any part of the principal amount of such Security or by one or
more duly appointed agents, each of which may do so pursuant to such appointment
with regard to all or any part of such principal amount.

SECTION 105. Notices, Etc., to Trustee and Company.

          Any request, demand, authorization, direction, notice, consent, waiver
or Act of Holders or other document provided or permitted by this Indenture to
be made upon, given or furnished to, or filed with

          (1) the Trustee by any Holder or by the Company shall be sufficient
     for every purpose hereunder if made, given, furnished or filed in writing
     to or with the Trustee at its Corporate Trust Office, Attention:  Corporate
     Trust Administration, or

          (2) the Company by the Trustee or by any Holder shall be sufficient
     for every purpose hereunder (unless otherwise herein expressly provided) if
     in writing and mailed, first-class postage prepaid, to the Company
     addressed to it at the address of its principal

                                       11
<PAGE>

     office specified in the first paragraph of this instrument or at any other
     address previously furnished in writing to the Trustee by the Company.

SECTION 106. Notice to Holders; Waiver.

          Where this Indenture provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder affected
by such event, at his address as it appears in the Security Register, not later
than the latest date (if any), and not earlier than the earliest date (if any),
prescribed for the giving of such notice.  In any case where notice to Holders
is given by mail, neither the failure to mail such notice, nor any defect in any
notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders.  Where this Indenture provides for notice
in any manner, such notice may be waived in writing by the Person entitled to
receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice.  Waivers of notice by Holders shall be filed with
the Trustee, but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver.

          In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to give such notice by mail,
then such notification as shall be made with the approval of the Trustee shall
constitute a sufficient notification for every purpose hereunder.

SECTION 107. Conflict with Trust Indenture Act.

          If any provision of this Indenture limits, qualifies or conflicts with
a provision of the Trust Indenture Act which is required under such Act to be a
part of and govern this Indenture, the latter provision shall control.  If any
provision of this Indenture modifies or excludes any provision of the Trust
Indenture Act which may be so modified or excluded, the latter provision shall
be deemed to apply to this Indenture as so modified or to be excluded, as the
case may be.

SECTION 108. Effect of Headings and Table of Contents.

          The Article and Section headings herein and the Table of Contents are
for convenience only and shall not affect the construction hereof.

SECTION 109. Successors and Assigns.

          All covenants and agreements in this Indenture by the Company shall
bind its successors and assigns, whether so expressed or not.

SECTION 110. Separability Clause.

          In case any provision in this Indenture or in the Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

                                       12
<PAGE>

SECTION 111. Benefits of Indenture.

          Nothing in this Indenture or in the Securities, express or implied,
shall give to any Person, other than the parties hereto and their successors
hereunder and the Holders, any benefit or any legal or equitable right, remedy
or claim under this Indenture.

SECTION 112. Governing Law.

          THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS
OF LAWS PRINCIPLES THEREOF.

SECTION 113. Legal Holidays.

          In any case where any Interest Payment Date, Redemption Date or Stated
Maturity of any Security shall not be a Business Day at any Place of Payment,
then (notwithstanding any other provision of this Indenture or of the Securities
(other than a provision of any Security which specifically states that such
provision shall apply in lieu of this Section)) payment of interest or principal
(and premium, if any) need not be made at such Place of Payment on such date,
but may be made on the next succeeding Business Day at such Place of Payment
with the same force and effect as if made on the Interest Payment Date or
Redemption Date, or at the Stated Maturity, and no additional interest shall
accrue as the result of such delayed payment.

                                  ARTICLE TWO

                                 SECURITY FORMS

SECTION 201. Forms Generally.

          The Securities of each series and the Trustee's certificate of
authentication shall be in substantially the form set forth in this Article, or
in such other form as shall be established by or pursuant to a Board Resolution
or in one or more indentures supplemental hereto, in each case with such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Indenture, and may have such letters, numbers or
other marks of identification and such legends or endorsements placed thereon as
may be required to comply with applicable tax laws or the rules of any
securities exchange or automated quotation system on which the Securities of
such series may be listed or traded or Depositary therefor or as may,
consistently herewith, be determined by the officers executing such Securities,
as evidenced by their execution thereof.  If the form of Securities of any
series is established by action taken pursuant to a Board Resolution, a copy of
an appropriate record of such action shall be certified by the Secretary or an
Assistant Secretary of the Company and delivered to the Trustee at or prior to
the delivery of the Company Order contemplated by Section 303 for the
authentication and delivery of such Securities.

          The definitive Securities of each series shall be typewritten,
printed, lithographed or engraved or produced by any combination of these
methods, if required by any securities exchange or automated quotation system on
which the Securities of such series may be listed or

                                       13
<PAGE>

traded, on steel engraved borders or may be produced in any other manner
permitted by the rules of any securities exchange or automated quotation system
on which the Securities of such series may be listed or traded, all as
determined by the officers executing such Securities, as evidenced by their
execution of such Securities.

SECTION 202. Form of Face of Security.

[INSERT ANY LEGEND REQUIRED BY THE INTERNAL REVENUE CODE AND THE REGULATIONS
THEREUNDER.]

                               CLECO CORPORATION

                              (Title of Security)

No. __________                                                   $  __________
                                                            CUSIP No. ________

          Cleco Corporation, a corporation duly organized and existing under the
laws of the State of Louisiana (herein called the "Company", which term includes
any successor Person under the Subordinated Indenture hereinafter referred to),
for value received, hereby promises to pay to _______________, or registered
assigns, the principal sum of ____________________ Dollars on
____________________ [if the Security is to bear interest prior to Maturity,
insert -- , and to pay interest thereon from _______________ or from the most
recent Interest Payment Date to which interest has been paid or duly provided
for, semi-annually on __________ and __________ in each year, commencing
__________, at the rate of _____% per annum, until the principal hereof is paid
or made available for payment [if applicable, insert -- , provided that any
principal and premium, and any such installment of interest, which is overdue
shall bear interest at the rate of _____% per annum (to the extent permitted by
applicable law), from the dates such amounts are due until they are paid or made
available for payment, and such interest shall be payable on demand].  [If
applicable, insert -- The amount of interest payable for any period shall be
computed on the basis of twelve 30-day months and a 360-day year. The amount of
interest payable for any partial period shall be computed on the basis of a 360-
day year of twelve 30-day months and the days elapsed in any partial month. In
the event that any date on which interest is payable on this Security is not a
Business Day, then a payment of the interest payable on such date will be made
on the next succeeding day which is a Business Day (and without any interest or
other payment in respect of any such delay) with the same force and effect as if
made on the date the payment was originally payable. A "Business Day" shall
mean, when used with respect to any Place of Payment, each Monday, Tuesday,
Wednesday, Thursday and Friday which is not a day on which banking institutions
in that Place of Payment are authorized or obligated by law or executive order
to close.]  The interest so payable, and punctually paid or duly provided for,
on any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the __________ or __________ (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date.  Any such
interest not so punctually paid or duly provided for shall forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a

                                       14
<PAGE>

Special Record Date for the payment of such Defaulted Interest to be fixed by
the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at
any time in any other lawful manner not inconsistent with the requirements of
any securities exchange or automated quotation system on which the Securities of
this series may be listed or traded, and upon such notice as may be required by
such exchange or automated quotation system, all as more fully provided in said
Indenture.

          [If the Security is not to bear interest prior to Maturity, insert --
The principal of this Security shall not bear interest except in the case of a
default in payment of principal upon acceleration, upon redemption or at Stated
Maturity and in such case the overdue principal and any overdue premium shall
bear interest at the rate of _____% per annum (to the extent that the payment of
such interest shall be legally enforceable), from the dates such amounts are due
until they are paid or made available for payment.  Interest on any overdue
principal or premium shall be payable on demand.]

          Payment of the principal of (and premium, if any) and [if applicable,
insert -- any such] interest on this Security will be made at the office or
agency of the Company maintained for that purpose in __________, in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts [if applicable, insert -- ;
provided, however, that at the option of the Company payment of interest may be
made (i) by check mailed to the address of the Person entitled thereto as such
address shall appear in the Security Register or (ii) by wire transfer in
immediately available funds at such place and to such account as may be
designated in writing by the Person entitled thereto as specified in the
Security Register].

          Reference is hereby made to the further provisions of this Security
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

          Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:                                     CLECO CORPORATION
        ---------------
                                           By:
                                              ----------------------------
Attest:

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

                                       15
<PAGE>

SECTION 203. Form of Reverse of Security.

          This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under a Subordinated Indenture, dated as of _______________, 2000 (herein
called the "Indenture", which term shall have the meaning assigned to it in such
instrument), between the Company and Bank One, N.A., as Trustee (herein called
the "Trustee", which term includes any successor trustee under the Indenture),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered.  This Security is one of the series designated on
the face hereof [if applicable, insert --, limited in aggregate principal amount
to $__________; provided, however, that the authorized aggregate principal
amount of the Securities may be increased above such amount by a Board
Resolution to such effect].

          [If applicable, insert-- The interest rate (or the spread or spread
multiplier used to calculate such interest rate, if applicable) on this Security
may be reset by the Company on ____________ (each an "Optional Reset Date").
The Company may exercise such option with respect to this Security by notifying
the Trustee of such exercise at least 50 but not more than 60 days prior to an
Optional Reset Date for this Security.  Not later than 40 days prior to each
Optional Reset Date, the Trustee shall transmit, in the manner provided for in
Section 106 of the Indenture, to the Holder of this Security a notice (the
"Reset Notice") indicating whether the Company has elected to reset the interest
rate (or the spread or spread multiplier used to calculate such interest rate,
if applicable), and if so (i) such new interest rate (or such new spread or
spread multiplier, if applicable) and (ii) the provisions, if any, for
redemption during the period from such Optional Reset Date to the next Optional
Reset Date or if there is no such next Optional Reset Date, to the Stated
Maturity of this Security (each such period a "Subsequent Interest Period"),
including the date or dates on which or the period or periods during which and
the price or prices at which such redemption may occur during the Subsequent
Interest Period.

          Notwithstanding the foregoing, not later than 20 days prior to the
Optional Reset Date, the Company may, at its option, revoke the interest rate
(or the spread or spread multiplier used to calculate such interest rate, if
applicable) provided for in the Reset Notice and establish an interest rate (or
a spread or spread multiplier used to calculate such interest rate, if
applicable) that is higher than the interest rate (or the spread or spread
multiplier, if applicable) provided for in the Reset Notice, for the Subsequent
Interest Period by causing the Trustee to transmit, in the manner provided for
in Section 106 of the Indenture, notice of such higher interest rate (or such
higher spread or spread multiplier, if applicable) to the Holder of this
Security.  Such notice shall be irrevocable.  All Securities of this series with
respect to which the interest rate (or the spread or spread multiplier used to
calculate such interest rate, if applicable) is reset on an Optional Reset Date,
and with respect to which the Holders of such Securities have not tendered such
Securities for repayment (or have validly revoked any such tender) pursuant to
the next succeeding paragraph, will bear such higher interest rate (or such
higher spread or spread multiplier, if applicable).

                                       16
<PAGE>

          The Holder of this Security will have the option to elect repayment by
the Company of the principal of this Security on each Optional Reset Date at a
price equal to the principal amount hereof plus interest accrued to such
Optional Reset Date.  In order to obtain repayment on an Optional Reset Date,
the Holder must follow the procedures set forth in Article Thirteen of the
Indenture for repayment at the option of Holders except that the period for
delivery or notification to the Trustee shall be at least 25 but not more than
35 days prior to such Optional Reset Date and except that, if the Holder has
tendered this Security for repayment pursuant to the Reset Notice, the Holder
may, by written notice to the Trustee, revoke such tender or repayment until the
close of business on the tenth day before such Optional Reset Date.]

          [If applicable, insert --  The Stated Maturity of this Security may be
extended at the option of the Company for _______________ (each an "Extension
Period") up to but not beyond ____________ (the "Final Maturity").  The Company
may exercise such option with respect to this Security by notifying the Trustee
of such exercise at least 50 but not more than 60 days prior to the Stated
Maturity of this Security in effect prior to the exercise of such option (the
"Original Stated Maturity").  If the Company exercises such option, the Trustee
shall transmit, in the manner provided for in Section 106 of the Indenture, to
the Holder of this Security not later than 40 days prior to the Original Stated
Maturity a notice (the "Extension Notice") indicating (i) the election of the
Company to extend the Maturity, (ii) the new Stated Maturity, (iii) the interest
rate applicable to the Extension Period and (iv) the provisions, if any, for
redemption during such Extension Period.  Upon the Trustee's transmittal of the
Extension Notice, the Stated Maturity of this Security shall be extended
automatically and, except as modified by the Extension Notice and as described
in the next paragraph, this Security will have the same terms as prior to the
transmittal of such Extension Notice.

          Notwithstanding the foregoing, not later than 20 days before the
Original Stated Maturity of this Security, the Company may, at its option,
revoke the interest rate provided for in the Extension Notice and establish a
higher interest rate for the Extension Period by causing the Trustee to
transmit, in the manner provided for in Section 106, notice of such higher
interest rate to the Holder of this Security.  Such notice shall be irrevocable.
All Securities of this series with respect to which the Stated Maturity is
extended will bear such higher interest rate.

          If the Company extends the Maturity of this Security, the Holder will
have the option to elect repayment of this Security by the Company on the
Original Stated Maturity at a price equal to the principal amount hereof, plus
interest accrued to such date.  In order to obtain repayment on the Original
Stated Maturity once the Company has extended the Maturity hereof, the Holder
hereof must follow the procedures set forth in Article Thirteen of the Indenture
for repayment at the option of Holders, except that the period for delivery or
notification to the Trustee shall be at least 25 but not more than 35 days prior
to the Original Stated Maturity and except that, if the Holder has tendered this
Security for repayment pursuant to an Extension Notice, the Holder may, by
written notice to the Trustee, revoke such tender for repayment until the close
of business on the tenth day before the Original Stated Maturity.]

          [If applicable, insert -- The Securities of this series are subject to
redemption upon not less than 30 days' notice by mail, [if applicable, insert --
(1) on __________ in any year commencing with the year _____ and ending with the
year _____ through operation of the

                                       17
<PAGE>

sinking fund for this series at a Redemption Price equal to 100% of the
principal amount, and (2)] at any time [if applicable, insert -- on or after
__________, 20__], as a whole or in part, at the election of the Company, at the
following Redemption Prices (expressed as percentages of the principal amount):
If redeemed [if applicable, insert -- on or before __________, _____%, and if
redeemed] during the 12-month period beginning __________ of the years
indicated,

                          Redemption                          Redemption
         Year               Price                Year            Price
         ----               -----                ----            -----

and thereafter at a Redemption Price equal to _____% of the principal amount,
together in the case of any such redemption [if applicable, insert -- (whether
through operation of the sinking fund or otherwise)] with accrued interest to
the Redemption Date, but interest installments whose Stated Maturity is on or
prior to such Redemption Date will be payable to the Holders of such Securities,
or one or more Predecessor Securities, of record at the close of business on the
relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.]

          [If applicable, insert -- The Securities of this series are subject to
redemption upon not less than 30 days' notice by mail, (1) on __________ in any
year commencing with the year _____ and ending with the year _____ through
operation of the sinking fund for this series at the Redemption Prices for
redemption through operation of the sinking fund (expressed as percentages of
the principal amount) set forth in the table below, and (2) at any time [if
applicable, insert -- on or after __________], as a whole or in part, at the
election of the Company, at the Redemption Prices for redemption otherwise than
through operation of the sinking fund (expressed as percentages of the principal
amount) set forth in the table below:  If redeemed during the 12-month period
beginning __________ of the years indicated,

                           Redemption Price For           Redemption Price For
                            Redemption Through            Redemption Otherwise
                             Operation of the            Than Through Operation
          Year                 Sinking Fund                of the Sinking Fund
          ----                 ------------                -------------------

and thereafter at a Redemption Price equal to _____% of the principal amount,
together in the case of any such redemption (whether through operation of the
sinking fund or otherwise) with accrued interest to the Redemption Date, but
interest installments whose Stated Maturity is on or prior to such Redemption
Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant
Record Dates referred to on the face hereof, all as provided in the Indenture.]

                                       18
<PAGE>

          [If applicable, insert -- Notwithstanding the foregoing, the Company
may not, prior to __________, redeem any Securities of this series as
contemplated by [if applicable, insert -- Clause (2) of] the preceding paragraph
as a part of, or in anticipation of, any refunding operation by the application,
directly or indirectly, of moneys borrowed having an interest cost to the
Company (calculated in accordance with generally accepted financial practice) of
less than _____% per annum.]

          [If applicable, insert -- The sinking fund for this series provides
for the redemption on __________ in each year beginning with the year _____ and
ending with the year _____ of [if applicable, insert -- not less than
$__________ ("mandatory sinking fund") and not more than] $__________ aggregate
principal amount of Securities of this series.  Securities of this series
acquired or redeemed by the Company otherwise than through [if applicable,
insert --  mandatory] sinking fund payments may be credited against subsequent
[if applicable, insert -- mandatory] sinking fund payments otherwise required to
be made [if applicable, insert --, in the inverse order in which they become
due].]

          [If the Security is subject to redemption of any kind, insert -- In
the event of redemption of this Security in part only, a new Security or
Securities of this series and of like tenor for the unredeemed portion hereof
will be issued in the name of the Holder hereof upon the cancellation hereof.]

          [If applicable, insert -- The Securities of this series are not
subject to redemption by the Company prior to their Stated Maturity and will not
be entitled to the benefit of any sinking fund.]

          The Indenture contains provisions for satisfaction and discharge of
the entire indebtedness of this Security upon compliance by the Company with
certain conditions set forth in the Indenture.

          [If applicable, insert -- The Indenture contains provisions for
defeasance at any time of [the entire indebtedness of this Security] [or]
[certain restrictive covenants and Events of Default with respect to this
Security] [, in each case] upon compliance with certain conditions set forth in
the Indenture.]

          [If the Security is not an Original Issue Discount Security, insert --
If an Event of Default with respect to Securities of this series shall occur and
be continuing, the principal of the Securities of this series may be declared
due and payable in the manner and with the effect provided in the Indenture.]

          [If the Security is an Original Issue Discount Security, insert -- If
an Event of Default with respect to Securities of this series shall occur and be
continuing, an amount of principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.  Such amount shall be equal to -- insert formula for determining the
amount.  Upon payment (i) of the amount of principal so declared due and payable
and (ii) of interest on any overdue principal, premium and interest (in each
case to the extent that the payment of such interest shall be legally
enforceable), all of the Company's

                                       19
<PAGE>

obligations in respect of the payment of the principal of and premium and
interest, if any, on the Securities of this series shall terminate.]

          The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding of each series to be affected.  The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences.  Any such consent or waiver by the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

          As provided in and subject to the provisions of the Indenture, the
Holder of this Security shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee or
for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 33% in principal amount
of the Securities of this series at the time Outstanding shall have made written
request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee
shall not have received from the Holders of a majority in principal amount of
Securities of this series at the time Outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60
days after receipt of such notice, request and offer of indemnity.  The
foregoing shall not apply to any suit instituted by the Holder of this Security
for the enforcement of any payment of principal hereof or any premium or
interest hereon on or after the respective due dates expressed herein.

          No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of and any premium and
interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.

          As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of and any
premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities of
this series and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.  No service charge shall be made for any such registration of
transfer or exchange, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.

                                       20
<PAGE>

          Prior to due presentment of this Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the owner
hereof for all purposes, whether or not this Security be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

          The Securities of this series are issuable only in registered form
without coupons in denominations of $__________ and any integral multiple
thereof.  As provided in the Indenture and subject to certain limitations
therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor of a
different authorized denomination, as requested by the Holder surrendering the
same.

          The Securities of this series are subordinated in right of payment to
Senior Debt as provided in Article Sixteen of the Indenture.

          All terms used in this Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

          THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF
LAWS PRINCIPLES THEREOF.

SECTION 204. Form of Legend for Global Securities.

          Unless otherwise specified as contemplated by Section 301 for the
Securities evidenced thereby, every Global Security authenticated and delivered
hereunder shall, in addition to the provisions contained in Sections 202 and
203, bear a legend in substantially the following form:

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED
IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE
DEPOSITARY.

SECTION 205. Form of Trustee's Certificate of Authentication.

          The Trustee's certificates of authentication shall be in substantially
the following form:

          This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.

Dated:  ____________

                                       21
<PAGE>

                                                                 Bank One, N.A.,
                                                                      As Trustee

                                                    By: ________________________
                                                            Authorized Signatory

                                 ARTICLE THREE

                                 THE SECURITIES

SECTION 301. Amount Unlimited; Issuable in Series.

          The aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture is unlimited.

          The Securities may be issued in one or more series.  There shall be
established in or pursuant to a Board Resolution and, subject to Section 303,
set forth, or determined in the manner provided, in an Officers' Certificate or
in a Company Order, or established in one or more indentures supplemental
hereto, prior to the issuance of Securities of any series:

          (1) the title of the Securities of the series (which shall distinguish
     the Securities of the series from Securities of any other series);

          (2) any limit upon the aggregate principal amount of the Securities of
     the series which may be authenticated and delivered under this Indenture
     (except for Securities authenticated and delivered upon registration of
     transfer of, or in exchange for, or in lieu of, other Securities of the
     series pursuant to Section 304, 305, 306, 906 or 1107 and except for any
     Securities which, pursuant to Section 303, are deemed never to have been
     authenticated and delivered hereunder); provided, however, that the
     authorized aggregate principal amount of such series may be increased above
     such amount by a Board Resolution to such effect;

          (3) the date or dates on which the principal of any Securities of the
     series is payable, or the method by which such date or dates shall be
     determined or extended;

          (4) the rate or rates at which the Securities of the series shall bear
     interest, if any, or the method by which such rate or rates shall be
     determined, the date or dates from which such interest shall accrue, or the
     method by which such date or dates shall be determined,  the Interest
     Payment Dates on which such interest shall be payable and the Regular
     Record Date, if any, for the interest payable on any Interest Payment Date,
     or the method by which such date or dates shall be determined, the basis
     upon which interest shall be calculated if other than that of a 360-day
     year of twelve 30-day months, and the right, if any, to extend or defer
     interest payments and the duration of such extension or deferral;

          (5) the place or places where the principal of and any premium and
     interest on any Securities of the series shall be payable, the place or
     places where the Securities of such series may be presented for
     registration of transfer or exchange, and the place or

                                       22
<PAGE>

     places where notices and demands to or upon the Company in respect of the
     Securities of such series may be made;

          (6) the period or periods within or the date or dates on which, the
     price or prices at which and the term and conditions upon which any
     Securities of the series may be redeemed, in whole or in part, at the
     option of the Company and, if other than by a Board Resolution, the manner
     in which any election by the Company to redeem the Securities shall be
     evidenced;

          (7) the obligation or the right, if any, of the Company to redeem or
     purchase any Securities of the series pursuant to any sinking fund,
     amortization or analogous provisions or at the option of the Holder thereof
     and the period or periods within which, the price or prices at which, the
     currency or currencies (including currency unit or units) in which and the
     other terms and conditions upon which any Securities of the series shall be
     redeemed or purchased, in whole or in part, pursuant to such obligation;

          (8) if other than denominations of $1,000 and any integral multiple
     thereof, the denominations in which any Securities of the series shall be
     issuable;

          (9) if the amount of principal of or any premium or interest on any
     Securities of the series may be determined with reference to an index or
     pursuant to a formula, the manner in which such amounts shall be
     determined;

          (10) if other than the currency of the United States of America, the
     currency, currencies or currency units, including composite currencies, in
     which the principal of or any premium or interest on any Securities of the
     series shall be payable and the manner of determining the equivalent
     thereof in the currency of the United States of America for any purpose,
     including for purposes of the definition of "Outstanding" in Section 101;

          (11) if the principal of or any premium or interest on any Securities
     of the series is to be payable, at the election of the Company or the
     Holder thereof, in one or more currencies or currency units other than that
     or those in which such Securities are stated to  be payable, the currency,
     currencies or currency units in which the principal of or any premium or
     interest on such Securities as to which such election is made shall be
     payable, the period or periods within or the date or dates on which and the
     terms and conditions upon which such election is to be made and the amount
     so payable (or the manner in which such amount shall be determined);

          (12) the percentage of the principal amount at which such Securities
     will be issued and, if other than the principal amount thereof, the portion
     of the principal amount of Securities of the series that shall be payable
     upon declaration of acceleration of the Maturity thereof pursuant to
     Section 502 or the method by which such portion shall be determined;

          (13) if the principal amount payable at the Stated Maturity of any
     Securities of the series will not be determinable as of any one or more
     dates prior to the Stated Maturity, the amount which shall be deemed to be
     the principal amount of such Securities as of any such date for any purpose
     thereunder or hereunder, including the principal

                                       23
<PAGE>

     amount thereof which shall be due and payable upon any Maturity other than
     the Stated Maturity or which shall be deemed to be Outstanding as of any
     date prior to the Stated Maturity (or, in any such case, the manner in
     which such amount deemed to be the principal amount shall be determined);

          (14) if applicable, that the Securities of the series, in whole or any
     specified part, shall not be defeasible or shall be defeasible in a manner
     varying from Section 1402 and Section 1403 and, if other than by a Board
     Resolution, the manner in which any election by the Company to defease such
     Securities shall be evidenced;

          (15) whether the Securities of the series, or any portion thereof,
     shall initially be issuable in the form of a temporary Global Security
     representing all or such portion of the Securities of such series and
     provisions for the exchange of such temporary Global Security for
     definitive Securities of such series;

          (16) if applicable, that any Securities of the series, or any portion
     thereof, shall be issuable in whole or in part in the form of one or more
     Global Securities and, in such case, the respective Depositaries for such
     Global Securities, the form of any legend or legends which shall be borne
     by any such Global Security in addition to or in lieu of that set forth in
     Section 204 and any circumstances in addition to or in lieu of those set
     forth in Clause (2) of the last paragraph of Section 305 in which any such
     Global Security may be exchanged in whole or in part for Securities
     registered, and any transfer of such Global Security in whole or in part
     may be registered, in the name or names of Persons other than the
     Depositary for such Global Security or a nominee thereof;

          (17) if applicable, that the Securities of the series, in whole or any
     specified part, shall be subject to the optional interest reset provisions
     of Section 307(b);

          (18) if applicable, that the Securities of the series, in whole or any
     specified part, shall be subject to the optional extension of maturity
     provisions of Section 308;

          (19) any addition to or change in the Events of Default which applies
     to any Securities of the series and any change in the right of  the Trustee
     or the requisite Holders of such Securities to declare the principal amount
     thereof due and payable pursuant to Section 502;

          (20) any addition to or change in the covenants set forth in Article
     Ten which applies to Securities of the series;

          (21) the additions or changes, if any, to this Indenture with respect
     to the Securities of such series as shall be necessary to permit or
     facilitate the issuance of the Securities of such series in bearer form,
     registrable or not registrable as to principal, and with or without
     interest coupons;

          (22) the appointment of any Paying Agent or Agents for the Securities
     of such series, if other than the Trustee;

                                       24
<PAGE>

          (23) the terms of any right to convert or exchange Securities of such
     series into any other securities or property of the Company, and the
     additions or changes, if any, to this Indenture with respect to the
     Securities of such series to permit or facilitate such conversion or
     exchange;

          (24) the terms and conditions, if any, pursuant to which the
     Securities of the series are secured;

          (25) any restriction or condition on the transferability of the
     Securities of such series; and

          (26) any other terms of the Securities of such series (which terms
     shall not be inconsistent with the provisions of this Indenture, except as
     permitted by Section 901(5)).

          All Securities of any one series shall be substantially identical
except as to denomination and except as may otherwise be provided herein or in
or pursuant to the Board Resolution referred to above and (subject to Section
303) set forth, or determined in the manner provided, in the Officers'
Certificate referred to above or in any such indenture supplemental hereto.

          If any of the terms of the Securities of any series are established by
action taken pursuant to a Board Resolution, a copy of an appropriate record of
such action shall be certified by the Secretary or an Assistant Secretary of the
Company and delivered to the Trustee at or prior to the delivery of the
Officers' Certificate or Company Order setting forth the terms of the series.

          The Securities shall be subordinated in right of payment to Senior
Debt as provided in Article Sixteen.

SECTION 302. Denominations.

          The Securities of each series shall be issuable only in registered
form without coupons and only in such denominations as shall be specified as
contemplated by Section 301.  In the absence of any such specified denomination
with respect to the Securities of any series, the Securities of such series
shall be issuable in denominations of $1,000 and any integral multiple thereof.

SECTION 303. Execution, Authentication, Delivery and Dating.

          The Securities shall be executed on behalf of the Company by its
Chairman of the Board, its Chief Executive Officer, its Chief Financial Officer,
its President or one of its Vice Presidents, under its corporate seal reproduced
or impressed thereon and attested by its Secretary or one of its Assistant
Secretaries.  The signature of any of these officers on the Securities may be
manual or facsimile.

          Securities bearing the manual or facsimile signatures of individuals
who were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such

                                       25
<PAGE>

individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Securities or did not hold such offices at
the date of such Securities.

          At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, and the Trustee in accordance
with the Company Order shall authenticate and deliver such Securities.  If the
form or terms of the Securities of the series have been established by or
pursuant to one or more Board Resolutions as permitted by Sections 201 and 301,
in authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to Section 601) shall be fully protected in
relying upon, an Opinion of Counsel stating,

          (1)  if the form of such Securities has been established by or
     pursuant to Board Resolution as permitted by Section 201, that such form
     has been established in conformity with the provisions of this Indenture;

          (2)  if the terms of such Securities have been established by or
     pursuant to Board Resolution as permitted by Section 301, that such terms
     have been established in conformity with the provisions of this Indenture;
     and

          (3)  that such Securities, when authenticated and delivered by the
     Trustee and issued by the Company in the manner and subject to any
     conditions specified in such Opinion of Counsel, will constitute valid and
     legally binding obligations of the Company enforceable in accordance with
     their terms, subject to bankruptcy, insolvency, fraudulent transfer,
     reorganization, moratorium and similar laws of general applicability
     relating to or affecting creditors' rights and to general equity
     principles.

If such form or terms have been so established, the Trustee shall not be
required to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will affect the Trustee's own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner
which is not reasonably acceptable to the Trustee.

          Notwithstanding the provisions of Section 301 and of the preceding
paragraph, if all Securities of a series are not to be originally issued at one
time, it shall not be necessary to deliver the Officers' Certificate or Company
Order otherwise required pursuant to Section 301 or the Company Order and
Opinion of Counsel otherwise required pursuant to such preceding paragraph at or
prior to the authentication of each Security of such series if such documents
are delivered at or prior to the authentication upon original issuance of the
first Security of such series to be issued.

          Each Security shall be dated the date of its authentication.

          No Security shall be entitled to any benefit under this Indenture or
be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by the manual signature of one of its authorized
signatories, and such certificate upon any Security shall be conclusive
evidence, and the only evidence, that such Security has been duly authenticated
and delivered

                                       26
<PAGE>

hereunder. Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the Company,
and the Company shall deliver such Security to the Trustee for cancellation as
provided in Section 310, for all purposes of this Indenture such Security shall
be deemed never to have been authenticated and delivered hereunder and shall
never be entitled to the benefits of this Indenture.

SECTION 304. Temporary Securities.

          Pending the preparation of definitive Securities of any series, the
Company may execute, and upon Company Order the Trustee shall authenticate and
deliver, temporary Securities which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities of such series in lieu
of which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Securities may
determine, as evidenced by their execution of such Securities.

          If temporary Securities of any series are issued, the Company will
cause definitive Securities of that series to be prepared without unreasonable
delay.  After the preparation of definitive Securities of such series, the
temporary Securities of such series shall be exchangeable for definitive
Securities of such series upon surrender of the temporary Securities of such
series at the office or agency of the Company in a Place of Payment for that
series, without charge to the Holder.  Upon surrender for cancellation of any
one or more temporary Securities of any series, the Company shall execute and
the Trustee shall authenticate and deliver in exchange therefor one or more
definitive Securities of the same series, of any authorized denominations and of
like tenor and aggregate principal amount.  Until so exchanged, the temporary
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of such series and tenor.

SECTION 305. Registration, Registration of Transfer and Exchange.

          The Company shall cause to be kept at the Corporate Trust Office of
the Trustee a register (the register maintained in such office and in any other
office or agency of the Company in a Place of Payment being herein sometimes
collectively referred to as the "Security Register") in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of transfers of Securities.  The Trustee is
hereby appointed "Security Registrar" for the purpose of registering Securities
and transfers of Securities as herein provided.  If any indenture supplemental
hereto refers to any transfer agents (in addition to the Security Registrar)
initially designated by the Company with respect to any series of Securities,
the Company may at any time rescind the designation of any such transfer agent
or approve a change in the location through which any such transfer agent acts,
provided that the Company maintains a transfer agent in each Place of Payment
for such series. The Company may at any time designate additional transfer
agents with respect to any series of Securities.

          Upon surrender for registration of transfer of any Security of a
series at the office or agency of the Company in a Place of Payment for that
series, the Company shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees,

                                       27
<PAGE>

one or more new Securities of the same series, of any authorized denominations
and of like tenor and aggregate principal amount.

          At the option of the Holder, Securities of any series may be exchanged
for other Securities of the same series, of any authorized denominations and of
like tenor and aggregate principal amount, upon surrender of the Securities to
be exchanged at such office or agency.  Whenever any Securities are so
surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange is
entitled to receive.

          All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Securities
surrendered upon such registration of transfer or exchange.

          Every Security presented or surrendered for registration of transfer
or for exchange shall (if so required by the Company or the Trustee) be duly
endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed, by the
Holder thereof or his attorney duly authorized in writing.

          No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities.

          Neither the Trustee nor the Company shall be required, pursuant to the
provisions of this Section, (A) to issue, register the transfer of or exchange
any Securities of any series (or of any series and specified tenor, as the case
may be) during a period beginning at the opening of business 15 days before the
day of the mailing of a notice of redemption of any such Securities selected for
redemption under Section 1103 and ending at the close of business on the day of
such mailing, or (B) to register the transfer of or exchange any Security so
selected for redemption, in whole or in part, except, in the case of any
Security to be redeemed in part, any portion not to be redeemed.

          The provisions of Clauses (1), (2), (3) and (4) below shall apply only
to Global Securities:

          (1) Each Global Security authenticated under this Indenture shall be
     registered in the name of the Depositary designated for such Global
     Security or a nominee thereof and delivered to such Depositary or a nominee
     thereof or custodian therefor, and each such Global Security shall
     constitute a single Security for all purposes of this Indenture.

          (2) Notwithstanding any other provision in this Indenture, no Global
     Security may be exchanged in whole or in part for Securities registered,
     and no transfer of a Global Security in whole or in part may be registered,
     in the name of any Person other than the Depositary for such Global
     Security or a nominee thereof unless (A) such Depositary (i) has notified
     the Company that it is unwilling or unable to continue as

                                       28
<PAGE>

     Depositary for such Global Security or (ii) has ceased to be a clearing
     agency registered under the Exchange Act at a time when the Depositary is
     required to be so registered to act as depositary, in each case, unless the
     Company has approved a successor Depositary within 90 days, (B) there shall
     have occurred and be continuing an Event of Default with respect to such
     Global Security, (C) the Company in its sole discretion determines that
     such Global Security will be so exchangeable or transferable or (D) there
     shall exist such circumstances, if any, in addition to or in lieu of the
     foregoing as have been specified for this purpose as contemplated by
     Section 301.

          (3) Subject to Clause (2) above, any exchange of a Global Security for
     other Securities may be made in whole or in part, and all Securities issued
     in exchange for a Global Security or any portion thereof shall be
     registered in such names as the Depositary for such Global Security shall
     direct.

          (4)  Every Security authenticated and delivered upon registration of
     transfer of, or in exchange for or in lieu of, a Global Security or any
     portion thereof, whether pursuant to this Section, Section 304, 306, 906 or
     1107 or otherwise, shall be authenticated and delivered in the form of, and
     shall be, a Global Security, unless such Security is registered in the name
     of a Person other than the Depositary for such Global Security or a nominee
     thereof.

SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities.

          If any mutilated Security is surrendered to the Trustee together with
such security or indemnity as may be required by the Company or the Trustee to
save each of them harmless, the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a new Security of the same series
and of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

          If there shall be delivered to the Company and the Trustee (i)
evidence to their satisfaction of the destruction, loss or theft of any Security
and (ii) such security or indemnity as may be required by them to save each of
them and any agent of either of them harmless, then, in the absence of notice to
the Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security
of the same series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding.  If, after the delivery of such new Security,
a bona fide purchaser of the original Security in lieu of which such new
Security was issued presents for payment or registration such original Security,
the Trustee shall be entitled to recover such new Security from the party to
whom it was delivered or any party taking therefrom, except a bona fide
purchaser, and shall be entitled to recover upon the security or indemnity
provided therefor to the extent of any loss, damage, cost or expense incurred by
the Company and the Trustee in connection therewith.

          In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Security, pay such Security.

                                       29
<PAGE>

          Upon the issuance of any new Security under this Section, the Company
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of counsel to the Company and the fees
and expenses of the Trustee, its agents and counsel) connected therewith.

          Every new Security of any series issued pursuant to this Section in
lieu of any destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the destroyed,
lost or stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities of that series duly issued hereunder.

          The provisions of this Section are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities.

SECTION 307. Payment of Interest; Interest Rights Preserved; Optional
             Interest Reset.

          (a) Except as otherwise provided as contemplated by Section 301 with
respect to any series of Securities, interest on any Security of any series
which is payable, and is punctually paid or duly provided for, on any Interest
Payment Date shall be paid to the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest in respect of Securities of such series,
except that, unless otherwise provided in the Securities of such series,
interest payable on the Stated Maturity of the principal of a Security shall be
paid to the Person to whom principal is paid. The initial payment of interest on
any Security of any series which is issued between a Regular Record Date and the
related Interest Payment Date shall be payable as provided in such Security or
in the Board Resolution pursuant to Section 301 with respect to the related
series of Securities. Except in the case of a Global Security, at the option of
the Company, interest on any series of Securities may be paid (i) by check
mailed to the address of the Person entitled thereto as it shall appear on the
Security Register of such series or (ii) by wire transfer in immediately
available funds at such place and to such account as designated in writing by
the Person entitled thereto as specified in the Security Register of such
series.

          Any Paying Agents will be identified in a supplemental indenture
hereto. The Company may at any time designate additional Paying Agents or
rescind the designation of any Paying Agent; however, the Company at all times
will be required to maintain a Paying Agent in each Place of Payment for each
series of Securities.

          Unless otherwise provided as contemplated by Section 301 with respect
to any series of Securities, any interest on any Security of any series which is
payable, but is not timely paid or duly provided for, on any Interest Payment
Date for Securities of such series (herein called "Defaulted Interest") shall
forthwith cease to be payable to the registered Holder on the relevant Regular
Record Date by virtue of having been such Holder, and such Defaulted Interest
may be paid by the Company, at its election in each case, as provided in Clause
(1) or (2) below:

                                       30
<PAGE>

          (1) The Company may elect to make payment of any Defaulted Interest to
     the Persons in whose names the Securities of such series in respect of
     which interest is in default (or their respective Predecessor Securities)
     are registered at the close of business on a Special Record Date for the
     payment of such Defaulted Interest, which shall be fixed in the following
     manner.  The Company shall notify the Trustee in writing of the amount of
     Defaulted Interest proposed to be paid on each Security of such series and
     the date of the proposed payment, and at the same time the Company shall
     deposit with the Trustee an amount of money equal to the aggregate amount
     proposed to be paid in respect of such Defaulted Interest or shall make
     arrangements satisfactory to the Trustee for such deposit prior to the date
     of the proposed payment, such money when deposited to be held in trust for
     the benefit of the Persons entitled to such Defaulted Interest as in this
     Clause provided.  Thereupon the Trustee shall fix a Special Record Date for
     the payment of such Defaulted Interest which shall be not more than 15 days
     and not less than 10 days prior to the date of the proposed payment and not
     less than 10 days after the receipt by the Trustee of the notice of the
     proposed payment.  The Trustee shall promptly notify the Company of such
     Special Record Date and, in the name and at the expense of the Company,
     shall cause notice of the proposed payment of such Defaulted  Interest and
     the Special Record Date therefor to be given to each Holder of Securities
     of such series in the manner set forth in Section 106, not less than 10
     days prior to such Special Record Date.  Notice of the proposed payment of
     such Defaulted Interest and the Special Record Date therefor having been so
     mailed, such Defaulted Interest shall be paid to the Persons in whose names
     the Securities of such series (or their respective Predecessor Securities)
     are registered at the close of business on such Special Record Date and
     shall no longer be payable pursuant to the following Clause (2).

          (2) The Company may make payment of any Defaulted Interest on the
     Securities of any series in any other lawful manner not inconsistent with
     the requirements of any securities exchange or automated quotation system
     on which such Securities may be listed or traded, and upon such notice as
     may be required by such exchange or automated quotation system, if, after
     notice given by the Company to the Trustee of the proposed payment pursuant
     to this Clause, such manner of payment shall be deemed practicable by the
     Trustee.

          Subject to the foregoing provisions of this Section, each Security
delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued
and unpaid, and to accrue, which were carried by such other Security.

          (b) The provisions of this Section 307(b) may be made applicable to
any series of Securities pursuant to Section 301 (with such modifications,
additions or substitutions as may be specified pursuant to such Section 301).
The interest rate (or the spread or spread multiplier used to calculate such
interest rate, if applicable) on any Security of such series may be reset by the
Company on the date or dates specified on the face of such Security (each an
"Optional Reset Date").  The Company may exercise such option with respect to
such Security by notifying the Trustee of such exercise at least 50 but not more
than 60 days prior to an Optional Reset Date for such Security.  Not later than
40 days prior to each Optional Reset Date, the Trustee shall transmit, in the
manner provided for in Section 106, to the Holder of any such

                                       31
<PAGE>

Security a notice (the "Reset Notice") indicating whether the Company has
elected to reset the interest rate (or the spread or spread multiplier used to
calculate such interest rate, if applicable), and if so (i) such new interest
rate (or such new spread or spread multiplier, if applicable) and (ii) the
provisions, if any, for redemption during the period from such Optional Reset
Date to the next Optional Reset Date or if there is no such next Optional Reset
Date, to the Stated Maturity of such Security (each such period a "Subsequent
Interest Period"), including the date or dates on which or the period or periods
during which and the price or prices at which such redemption may occur during
the Subsequent Interest Period.

          Notwithstanding the foregoing, not later than 20 days prior to the
Optional Reset Date, the Company may, at its option, revoke the interest rate
(or the spread or spread multiplier used to calculate such interest rate, if
applicable) provided for in the Reset Notice and establish an interest rate (or
a spread or spread multiplier used to calculate such interest rate, if
applicable) that is higher than the interest rate (or the spread or spread
multiplier, if applicable) provided for in the Reset Notice, for the Subsequent
Interest Period by causing the Trustee to transmit, in the manner provided for
in Section 106, notice of such higher interest rate (or such higher spread or
spread multiplier, if applicable) to the Holder of such Security.  Such notice
shall be irrevocable.  All Securities with respect to which the interest rate
(or the spread or spread multiplier used to calculate such interest rate, if
applicable) is reset on an Optional Reset Date, and with respect to which the
Holders of such Securities have not tendered such Securities for repayment (or
have validly revoked any such tender) pursuant to the next succeeding paragraph,
will bear such higher interest rate (or such higher spread or spread multiplier,
if applicable).

          The Holder of any such Security will have the option to elect
repayment by the Company of the principal of such Security on each Optional
Reset Date at a price equal to the principal amount thereof plus interest
accrued to such Optional Reset Date.  In order to obtain repayment on an
Optional Reset Date, the Holder must follow the procedures set forth in Article
Thirteen for repayment at the option of Holders except that the period for
delivery or notification to the Trustee shall be at least 25 but not more than
35 days prior to such Optional Reset Date and except that, if the Holder has
tendered any Security for repayment pursuant to the Reset Notice, the Holder
may, by written notice to the Trustee, revoke such tender or repayment until the
close of business on the tenth day before such Optional Reset Date.

          Subject to the foregoing provisions of this Section and Section 305,
each Security delivered under this Indenture upon registration of transfer of or
in exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other
Security.

SECTION 308. Optional Extension of Maturity.

          The provisions of this Section 308 may be made applicable to any
series of Securities pursuant to Section 301 (with such modifications, additions
or substitutions as may be specified pursuant to such Section 301). The Stated
Maturity of any Security of such series may be extended at the option of the
Company for the period or periods specified on the face of such Security (each
an "Extension Period") up to but not beyond the date (the "Final Maturity") set
forth on the face of such Security.  The Company may exercise such option with
respect to any Security by notifying the Trustee of such exercise at least 50
but not more than 60 days prior to

                                       32
<PAGE>

the Stated Maturity of such Security in effect prior to the exercise of such
option (the "Original Stated Maturity"). If the Company exercises such option,
the Trustee shall transmit, in the manner provided for in Section 106, to the
Holder of such Security not later than 40 days prior to the Original Stated
Maturity a notice (the "Extension Notice") indicating (i) the election of the
Company to extend the Maturity, (ii) the new Stated Maturity, (iii) the interest
rate applicable to the Extension Period and (iv) the provisions, if any, for
redemption during such Extension Period. Upon the Trustee's transmittal of the
Extension Notice, the Stated Maturity of such Security shall be extended
automatically and, except as modified by the Extension Notice and as described
in the next paragraph, such Security will have the same terms as prior to the
transmittal of such Extension Notice.

          Notwithstanding the foregoing, not later than 20 days before the
Original Stated Maturity of such Security, the Company may, at its option,
revoke the interest rate provided for in the Extension Notice and establish a
higher interest rate for the Extension Period by causing the Trustee to
transmit, in the manner provided for in Section 106, notice of such higher
interest rate to the Holder of such Security.  Such notice shall be irrevocable.
All Securities with respect to which the Stated Maturity is extended will bear
such higher interest rate.

          If the Company extends the Maturity of any Security, the Holder will
have the option to elect repayment of such Security by the Company on the
Original Stated Maturity at a price equal to the principal amount thereof, plus
interest accrued to such date.  In order to obtain repayment on the Original
Stated Maturity once the Company has extended the Maturity thereof, the Holder
must follow the procedures set forth in Article Thirteen for repayment at the
option of Holders, except that the period for delivery or notification to the
Trustee shall be at least 25 but not more than 35 days prior to the Original
Stated Maturity and except that, if the Holder has tendered any Security for
repayment pursuant to an Extension Notice, the Holder may, by written notice to
the Trustee, revoke such tender for repayment until the close of business on the
tenth day before the Original Stated Maturity.

SECTION 309. Persons Deemed Owners.

          Prior to due presentment of a Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name such Security is registered on the applicable record
date as the owner of such Security for the purpose of receiving payment of
principal of and any premium and (subject to Section 307) any interest on such
Security and for all other purposes whatsoever, whether or not such Security be
overdue, and neither the Company, the Trustee nor any agent of the Company or
the Trustee shall be affected by notice to the contrary.

SECTION 310. Cancellation.

          All Securities surrendered for payment, redemption, registration of
transfer or exchange or for credit against any sinking fund payment shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee
and shall be promptly canceled by it.  The Company may at any time deliver to
the Trustee for cancellation any Securities previously authenticated and
delivered hereunder which the Company may have acquired in any manner
whatsoever, and may deliver to the Trustee (or to any other Person for delivery
to the Trustee) for cancellation

                                       33
<PAGE>

any Securities previously authenticated hereunder which the Company has not
issued and sold, and all Securities so delivered shall be promptly canceled by
the Trustee. No Securities shall be authenticated in lieu of or in exchange for
any Securities canceled as provided in this Section, except as expressly
permitted by this Indenture. All canceled Securities held by the Trustee shall
be disposed of as directed by a Company Order.

SECTION 311. Computation of Interest.

          Except as otherwise specified as contemplated by Section 301 for
Securities of any series, interest on the Securities of each series shall be
computed on the basis of a 360-day year of twelve 30-day months and interest on
the Securities of each series for any partial period shall be computed on the
basis of a 360-day year of twelve 30-day months and the number of days elapsed
in any partial month.

SECTION 312. CUSIP Numbers.

          The Company in issuing the Securities may use "CUSIP" numbers (if then
generally in use), and, if so, the Trustee shall use "CUSIP" numbers in notices
of redemption as a convenience to Holders; provided that any such notice may
state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be affected
by any defect in or omission of such numbers.  The Company shall promptly notify
the Trustee in writing of any change in "CUSIP" numbers.

                                 ARTICLE FOUR

                           SATISFACTION AND DISCHARGE

SECTION 401. Satisfaction and Discharge of Indenture.

          This Indenture shall upon Company Request cease to be of further
effect (except as to any surviving rights of registration of transfer or
exchange of Securities herein expressly provided for and as otherwise provided
in this Section 401), and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

          (1)  either

          (A) all Securities theretofore authenticated and delivered (other than
     (i) Securities which have been destroyed, lost or stolen and which have
     been replaced or paid as provided in Section 306 and (ii) Securities for
     whose payment money has theretofore been deposited in trust or segregated
     and held in trust by the Company and thereafter repaid to the Company or
     discharged from such trust, as provided in Section 1003) have been
     delivered to the Trustee for cancellation; or

          (B) all such Securities not theretofore delivered to the Trustee for
     cancellation

                                       34
<PAGE>

               (i)   have become due and payable, or

               (ii)  will become due and payable at their Stated Maturity within
          one year of the date of deposit, or

               (iii) are to be called for redemption within one year under
          arrangements satisfactory to the Trustee for the giving of notice of
          redemption by the Trustee in the name, and at the expense, of the
          Company,

          and the Company, in the case of (i), (ii) or (iii) above, has
          deposited or caused to be deposited with the Trustee as trust funds in
          trust for such purpose money in an amount sufficient to pay and
          discharge the entire indebtedness on such Securities not theretofore
          delivered to the Trustee for cancellation, for principal and any
          premium and interest to the date of such deposit (in the case of
          Securities which have become due and payable) or to the Stated
          Maturity or Redemption Date, as the case may be;

          (2) the Company has paid or caused to be paid all other sums payable
     hereunder by the Company;

          (3) the Company has delivered to the Trustee an Officers' Certificate
     and an Opinion of Counsel, each stating that all conditions precedent
     herein provided for relating to the satisfaction and discharge of this
     Indenture have been complied with; and

          (4) no event or condition shall exist that, pursuant to the provisions
of Section 1602 or 1603, would prevent the Company from making payments of the
principal of, premium, if any, or interest on the Securities of such series on
the date of such deposit.

          Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 607, the obligations of
the Trustee to any Authenticating Agent under Section 614 and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of Clause (1) of
this Section, the obligations of the Trustee under Section 402 and the last
paragraph of Section 1003 shall survive.

SECTION 402. Application of Trust Money.

          Subject to the provisions of the last paragraph of Section 1003, all
money deposited with the Trustee pursuant to Section 401 shall be held in trust
and applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and any premium and
interest for whose payment such money has been deposited with the Trustee.
Money and securities held in trust are not subject to Article Sixteen.

                                       35
<PAGE>

                                 ARTICLE FIVE

                                    REMEDIES

SECTION 501. Events of Default.

          "Event of Default", wherever used herein with respect to the
Securities of any series, means any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

          (1) default in the payment of any interest upon any Security of that
     series when it becomes due and payable, and continuance of such default for
     a period of 30 days; or

          (2) default in the payment of the principal of or any premium on any
     Security of that series at its Maturity; or

          (3) default in the deposit of any sinking fund payment, when and as
     due by the terms of a Security of that series; or

          (4) default in the performance, or breach, in any material respect, of
     any covenant or warranty of the Company in this Indenture with respect to a
     Security of that series (other than a covenant or warranty a default in the
     performance of which or the breach of which is elsewhere in this Section
     specifically dealt with or which has expressly been included in this
     Indenture solely for the benefit of series of Securities other than that
     series), and continuance of such default or breach for a period of 90 days
     after there has been given, by registered or certified mail, to the Company
     by the Trustee or to the Company and the Trustee by the Holders of at least
     33% in principal amount of the Outstanding Securities of that series a
     written notice specifying such default or breach and requiring it to be
     remedied and stating that such notice is a "Notice of Default" under this
     Indenture; or

          (5) the entry by a court having jurisdiction in the premises of (A) a
     decree or order for relief in respect of the Company in an involuntary case
     or proceeding under any applicable federal or state bankruptcy, insolvency,
     reorganization or other similar law or (B) a decree or order adjudging the
     Company a bankrupt or insolvent, or approving as properly filed a petition
     seeking reorganization, arrangement, adjustment or composition of or in
     respect of the Company under any applicable federal or state law, or
     appointing a custodian, receiver, liquidator, assignee, trustee,
     sequestrator or other similar official of the Company or of any substantial
     part of its property, or ordering the winding up or liquidation of its
     affairs, and the continuance of any such decree or order for relief or any
     such other decree or order unstayed and in effect for a period of 90
     consecutive days; or

          (6) the commencement by the Company of a voluntary case or proceeding
     under any applicable federal or state bankruptcy, insolvency,
     reorganization or other similar law or of any other case or proceeding to
     be adjudicated a bankrupt or insolvent,

                                       36
<PAGE>

     or the consent by it to the entry of a decree or order for relief in
     respect of the Company in an involuntary case or proceeding under any
     applicable federal or state bankruptcy, insolvency, reorganization or other
     similar law or to the commencement of any bankruptcy or insolvency case or
     proceeding against it, or the filing by it of a petition or answer or
     consent seeking reorganization or relief under any applicable federal or
     state law, or the consent by it to the filing of such petition or to the
     appointment of or taking possession by a custodian, receiver, liquidator,
     assignee, trustee, sequestrator or other similar official of the Company or
     of any substantial part of its property, or the making by it of an
     assignment for the benefit of creditors, or the admission by it in writing
     of its inability to pay its debts generally as they become due, or the
     taking of corporate action by the Company in furtherance of any such
     action; or

          (7) any other Event of Default provided with respect to Securities of
     that series;

provided, however, that no event described in clause (4) or (7) above shall
constitute an Event of Default hereunder until a Responsible Officer assigned to
and working in the Trustee's corporate trust department has actual knowledge
thereof or until a written notice of any such event is received by the Trustee
at the Corporate Trust Office, and such notice refers to the Securities
generally, the Company or the Indenture.

          Notwithstanding the foregoing provisions of this Section 501, if the
principal or any  premium or interest on any Security is payable in a currency
other than the currency of the United States of America and such currency is not
available to the Company for making payment thereof due to the imposition of
exchange controls or other circumstances beyond the control of the Company, the
Company will be entitled to satisfy its obligations to Holders of the Securities
by making such payment in the currency of the United States of America in an
amount equal to the currency of the United States of America equivalent of the
amount payable in such other currency, as determined by the Trustee by reference
to the noon buying rate in The City of New York for cable transfers for such
currency ("Exchange Rate"), as such Exchange Rate is reported or otherwise made
available by the Federal Reserve Bank of New York on the date of such payment,
or, if such rate is not then available, on the basis of the most recently
available Exchange Rate.  Notwithstanding the foregoing provisions of this
Section 501, any payment made under such circumstances in the currency of the
United States of America where the required payment is in a currency other than
the currency of the United States of America will not constitute an Event of
Default under this Indenture.

SECTION 502. Acceleration of Maturity; Rescission and Annulment.

          If an Event of Default (other than an Event of Default specified in
Section 501(4) or another Event of Default specified in Section 501(7) which is
common to all Outstanding series of Securities) with respect to Securities of
any series at the time Outstanding occurs and is continuing, then in every such
case the Trustee or the Holders of not less than 33% in principal amount of the
Outstanding Securities of that series may declare the principal amount of all
the Securities of that series (or, if any Securities of that series are Original
Issue Discount Securities, such portion of the principal amount of such
Securities as may be specified by the terms thereof) to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if

                                       37
<PAGE>

given by Holders), and upon any such declaration such principal amount (or
specified amount) shall become immediately due and payable. If an Event of
Default specified in Section 501(4) or another Event of Default under Section
501(7) which is common to all Outstanding series of Securities occurs and is
continuing, then in every such case, the Trustee or the Holders of not less than
33% in aggregate principal amount of all the Securities then Outstanding
hereunder (treated as one class), by a notice in writing to the Company (and to
the Trustee if given by Holders) may declare the principal amount (or, if any
Securities are Original Issue Discount Securities, such portion of the principal
amount as may be specified in the terms thereof) of all the Securities then
Outstanding to be due and payable immediately, and upon any such declaration
such principal amount (or specified amount) shall become immediately due and
payable. Payment of principal, premium, if any, and interest on such Securities
shall remain subordinated to the extent provided in Article Sixteen
notwithstanding that such amount shall become immediately due and payable as
herein provided.

          At any time after such a declaration of acceleration with respect to
Securities of any series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this
Article provided, the Holders of a majority in principal amount of the
Outstanding Securities of that series, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if

          (1) the Company has paid or deposited with the Trustee a sum
     sufficient to pay

               (A) all overdue installments of interest on all Securities of
     that series,

               (B) the principal of (and premium, if any, on) any  Securities of
     that series which have become due otherwise than by such declaration of
     acceleration and any interest thereon at the rate or rates prescribed
     therefor in such Securities,

               (C) to the extent that payment of such interest is lawful,
     interest upon overdue interest at the rate or rates prescribed therefor in
     such Securities, and

               (D) all sums paid or advanced by the Trustee hereunder and the
     reasonable compensation, expenses, disbursements and advances of the
     Trustee, its agents and  counsel;

and

          (2) all Events of Default with respect to Securities of that series,
     other than the non-payment of the principal of Securities of that series
     which have become due solely by such declaration of  acceleration, have
     been cured or waived as provided in Section 513.

No such rescission shall affect any subsequent default or impair any right
consequent thereon.

SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee.

          The Company covenants that if

                                       38
<PAGE>

          (1) default is made in the payment of any interest on any Security
     when such interest becomes due and payable and such default continues for a
     period of 30 days, or

          (2) default is made in the payment of the principal of (or premium, if
     any, on) any Security at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to the Trustee, for the
benefit of the Holders of such Securities, the whole amount then due and payable
on such Securities for principal and any premium and interest and, to the extent
that payment of such interest shall be legally enforceable, interest on any
overdue principal and premium and on any overdue interest, at the rate or rates
prescribed therefor in such Securities, and, in addition thereto, all amounts
owing the Trustee, its agents and counsel under Section 607.

          If an Event of Default with respect to Securities of any series occurs
and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of Securities of such series by
such appropriate judicial proceedings as the Trustee shall deem most effectual
to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy.

SECTION 504. Trustee May File Proofs of Claim.

          In case of any judicial proceeding relative to the Company (or any
other obligor upon the Securities), its property or its creditors, the Trustee
shall be entitled and empowered, by intervention in such proceeding or
otherwise, to take any and all actions authorized under the Trust Indenture Act
in order to have claims of the Holders and the Trustee allowed in any such
proceeding.  In particular, the Trustee shall be authorized to collect and
receive any moneys or other property payable or deliverable on any such claims
and to distribute the same; and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it and
any predecessor Trustee under Section 607.

          No provision of this Indenture shall be deemed to authorize the
Trustee to authorize or consent to or accept or adopt on behalf of any Holder
any plan of reorganization, arrangement, adjustment or composition affecting the
Securities or the rights of any Holder thereof or to authorize the Trustee to
vote in respect of the claim of any Holder in any such proceeding; provided,
however, that the Trustee may, on behalf of the Holders, vote for the election
of a trustee in bankruptcy or similar official and be a member of a creditors'
or other similar committee.

SECTION 505. Trustee May Enforce Claims Without Possession of Securities.

          All rights of action and claims under this Indenture or the Securities
may be prosecuted and enforced by the Trustee without the possession of any of
the Securities or the production thereof in any proceeding relating thereto, and
any such proceeding instituted by the Trustee shall be brought in its own name
as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of all amounts owing the Trustee and any

                                       39
<PAGE>

predecessor Trustee under Section 607, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.

SECTION 506. Application of Money Collected.

          Any money or property collected or to be applied by the Trustee with
respect to a series of Securities pursuant to this Article shall be applied in
the following order, at the date or dates fixed by the Trustee and, in case of
the distribution of such money or property on account of principal or any
premium or interest, upon presentation of the Securities and the notation
thereon of the payment if only partially paid and upon surrender thereof if
fully paid:

          FIRST:  To the payment of all amounts due the Trustee under Section
     607;

          SECOND:  To the payment of all Senior Debt if and to the extent
     required by Article Sixteen;

          THIRD:   To the payment of the amounts then due and unpaid for
     principal of and any premium and interest on such series of Securities in
     respect of which or for the benefit of which such money has been collected,
     ratably, without preference or priority of any kind, according to the
     amounts due and payable on such series of Securities for principal and any
     premium and interest, respectively; and

          FOURTH:  To the payment of the remainder, if any, to the Company or
     any other Person or Persons entitled thereto.

SECTION 507. Limitation on Suits.

          No Holder of any Security of any series shall have any right to
institute any proceeding, judicial or otherwise, with respect to this Indenture,
or for the appointment of a receiver, assignee, trustee, liquidator or
sequestrator (or other similar official), or for any other remedy hereunder,
unless

          (1) such Holder has previously given written notice to the Trustee of
     a continuing Event of Default with respect to the Securities of that
     series;

          (2) the Holders of not less than 33% in principal amount of the
     Outstanding Securities of that series shall have made written request to
     the Trustee to institute proceedings in respect of such Event of Default in
     its own name as Trustee hereunder;

          (3) such Holder or Holders have offered to the Trustee reasonable
     security or indemnity against the costs, expenses and liabilities to be
     incurred in compliance with such request;

          (4) the Trustee for 60 days after its receipt of such notice, request
     and offer of security or indemnity has failed to institute any such
     proceeding; and

                                       40
<PAGE>

          (5) no direction inconsistent with such written request has been given
     to the Trustee during such 60-day period by the Holders of a majority in
     principal amount of the Outstanding Securities of that series;

it being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing itself of, any
provision of this Indenture to affect, disturb or prejudice the rights of any
other Holders of Securities, or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and ratable
benefit of all such Holders.

SECTION 508. Unconditional Right of Holders to Receive Principal, Premium
             and Interest.

          Notwithstanding any other provision in this Indenture, the Holder of
any Security shall have the right, which is absolute and unconditional, to
receive payment of the principal of and any premium and (subject to Section 307)
interest on such Security on the respective Stated Maturities expressed in such
Security (or, in the case of redemption, on the Redemption Date) and to
institute suit for the enforcement of any such payment, and such rights shall
not be impaired without the consent of such Holder.

SECTION 509. Restoration of Rights and Remedies.

          If the Trustee or any Holder has instituted any proceeding to enforce
any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company, the Trustee and the Holders shall
be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall continue
as though no such proceeding had been instituted.

SECTION 510. Rights and Remedies Cumulative.

          Except as otherwise provided with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities in the last paragraph
of Section 306, no right or remedy herein conferred upon or reserved to the
Trustee or to the Holders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise.  The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

SECTION 511. Delay or Omission Not Waiver.

          No delay or omission of the Trustee or of any Holder of any Securities
to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or
an acquiescence therein.  Every right and remedy given by this Article or by law
to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case
may be.

                                       41
<PAGE>

SECTION 512. Control by Holders.

          The Holders of not less than a majority in principal amount of the
Outstanding Securities of any series shall have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred on the Trustee, with respect
to the Securities of such series, provided that

          (1) such direction shall not be in conflict with any rule of law or
     with this Indenture,

          (2) the Trustee may take any other action deemed proper by the Trustee
     which is not inconsistent with such direction, and

          (3) subject to the provisions of Section 601, the Trustee shall have
     the right to decline to follow such direction if a Responsible Officer or
     Officers of the Trustee shall, in good faith, determine that the proceeding
     so directed would involve the Trustee in personal liability or would
     otherwise be contrary to applicable law.

SECTION 513. Waiver of Past Defaults.

          The Holders of not less than a majority in principal amount of the
Outstanding Securities of any series may on behalf of the Holders of all the
Securities of such series waive any past default hereunder with respect to such
series and its consequences, except a default

          (1) in the payment of the principal of or any premium or interest on
     any Security of such series or

          (2) in respect of a covenant or provision hereof which under Article
     Nine cannot be modified or amended without the consent of the Holder of
     each Outstanding Security of such series affected.

          Upon any such waiver, such default shall cease to exist, and any Event
of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other default or impair any right consequent thereon.

SECTION 514. Undertaking for Costs.

          All parties to this Indenture agree, and each Holder of any Security
by his acceptance thereof shall be deemed to have agreed, that any court may in
its discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken or
omitted by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and such court may in its discretion
assess reasonable costs including reasonable attorneys' fees and expenses,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; provided that
the provisions of this Section 514 shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Holder or group of Holders holding in the
aggregate more than 10 per centum in principal amount of the Outstanding

                                       42
<PAGE>

Securities, or to any suit instituted by any Holder for the enforcement of the
payment of the principal of or interest on any Security, on or after the
respective due dates expressed in such Security.  Neither this Section 514 nor
the Trust Indenture Act shall be deemed to authorize any court to require such
an undertaking or such an assessment in any proceeding instituted by the
Company.

SECTION 515. Waiver of Usury, Stay or Extension Laws.

          The Company covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any usury, stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such law
and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.

                                  ARTICLE SIX

                                  THE TRUSTEE

SECTION 601. Certain Duties and Responsibilities.

          The duties and responsibilities of the Trustee shall be as provided by
the Trust Indenture Act.

SECTION 602.   Notice of Defaults.

          If a default occurs hereunder with respect to Securities of any
series, the Trustee shall give the Holders of Securities of such series notice
of such default as and to the extent provided by the Trust Indenture Act;
provided, however, that in the case of any default of the character specified in
Section 501(4) with respect to Securities of such series, no such notice to
Holders shall be given until at least 30 days after the occurrence thereof. For
the purpose of this Section, the term "default" means any event which is, or
after notice or lapse of time or both would become, an Event of Default with
respect to Securities of such series.

          The Trustee is not required to take notice or deemed to have notice of
any Event of Default with respect to the Securities, except an Event of Default
under Section 501(1), Section 501(2) or Section 501(3) hereof, unless a
Responsible Officer shall have received written notice of such Event of Default
from the Company, any Subsidiary or the Holder of any Security.

SECTION 603. Certain Rights of Trustee.

          Subject to the provisions of Section 601:

          (1) the Trustee may rely and shall be protected in acting or
     refraining from acting upon any resolution, certificate, statement,
     instrument, opinion, report, notice, request, direction, consent, order,
     bond, debenture, note, other evidence of indebtedness

                                       43
<PAGE>

     or other paper or document believed by it to be genuine and to have been
     signed or presented by the proper party or parties;

          (2) any request or direction of the Company mentioned herein shall be
     sufficiently evidenced by a Company Request or Company Order, and any
     resolution of the Board of Directors shall be sufficiently evidenced by a
     Board Resolution;

          (3) whenever in the administration of this Indenture the Trustee shall
     deem it desirable that a matter be proved or established prior to taking,
     suffering or omitting any action hereunder, the Trustee (unless other
     evidence be herein specifically prescribed) may, in the absence of bad
     faith on its part, rely upon an Officers' Certificate;

          (4) the Trustee may consult with counsel and the written advice of
     such counsel or any Opinion of Counsel shall be full and complete
     authorization and protection in respect of any action taken, suffered or
     omitted by it hereunder in good faith and in reliance thereon;

          (5) the Trustee shall be under no obligation to exercise any of the
     rights or powers vested in it by this Indenture at the request or direction
     of any of the Holders pursuant to this Indenture, unless such Holders shall
     have offered to the Trustee reasonable security or indemnity against the
     costs, expenses and liabilities which might be incurred by it in compliance
     with such request or direction;

          (6) the Trustee shall not be bound to make any investigation into the
     facts or matters stated in any resolution, certificate, statement,
     instrument, opinion, report, notice, request, direction, consent, order,
     bond, debenture, note, other evidence of indebtedness or other paper or
     document, but the Trustee, in its discretion, may make such further inquiry
     or investigation into such facts or matters as it may see fit, and, if the
     Trustee shall determine to make such further inquiry or investigation, it
     shall be entitled to examine the books, records and premises of the
     Company, personally or by agent or attorney;

          (7) the Trustee may execute any of the trusts or powers hereunder or
     perform any duties hereunder either directly or by or  through agents or
     attorneys and the Trustee shall not be responsible for any misconduct or
     negligence on the part of any agent or attorney appointed with due care by
     it hereunder;

          (8) the Trustee is not required to give any bond or surety with
     respect to the performance of its duties or the exercise of its powers
     under this Indenture;

          (9) in the event the Trustee receives inconsistent or conflicting
     requests and indemnity from two or more groups of Holders of Securities,
     each representing less than a majority in aggregate principal amount of the
     Securities Outstanding, the Trustee, in its sole discretion, may determine
     what action, if any, shall be taken;

          (10) the Trustee's immunities and protections from liability and its
     right to indemnification in connection with the performance of its duties
     under this Indenture shall extend to the Trustee's officers, directors,
     agents and employees.  Such immunities

                                       44
<PAGE>

     and protections and right to indemnification, together with the Trustee's
     right to compensation, shall survive the Trustee's resignation or removal
     and final payment of the Securities; and

          (11) except for information provided by the Trustee concerning the
     Trustee, the Trustee shall have no responsibility for any information in
     any offering memorandum or other disclosure material distributed with
     respect to the Securities, and the Trustee shall have no responsibility for
     compliance with any state or federal securities laws in connection with the
     Securities.

SECTION 604. Not Responsible for Recitals or Issuance of Securities.

          The recitals contained herein and in the Securities, except the
Trustee's certificates of authentication, shall be taken as the statements of
the Company, and neither the Trustee nor any Authenticating Agent assumes any
responsibility for their correctness.  The Trustee makes no representations as
to the validity or sufficiency of this Indenture or of the Securities.  Neither
the Trustee nor any Authenticating Agent shall be accountable for the use or
application by the Company of Securities or the proceeds thereof.

SECTION 605. May Hold Securities.

          The Trustee, any Authenticating Agent, any Paying Agent, any Security
Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to Sections
608 and 613, may otherwise deal with the Company with the same rights it would
have if it were not Trustee, Authenticating Agent, Paying Agent, Security
Registrar or such other agent.

SECTION 606. Money Held in Trust.

          Money held by the Trustee in trust hereunder need not be segregated
from other funds except to the extent required by law.  The Trustee shall be
under no liability for interest on any money received by it hereunder except as
otherwise agreed with the Company.

SECTION 607. Compensation and Reimbursement.

          The Company agrees

          (1) to pay to the Trustee from time to time such compensation for all
     services rendered by it hereunder in such amounts as the Company and the
     Trustee shall agree from time to time (which compensation shall not be
     limited by any provision of law in regard to the compensation of a trustee
     of an express trust);

          (2) except as otherwise expressly provided herein, to reimburse the
     Trustee upon its request for all reasonable expenses, disbursements and
     advances incurred or made by the Trustee in accordance with any provision
     of this Indenture (including the  reasonable compensation and the expenses
     and disbursements of its agents and counsel), except any such expense,
     disbursement or advance as may be attributable to its negligence or bad
     faith; and

                                       45
<PAGE>

          (3) to indemnify the Trustee for, and to hold it harmless against, any
     loss, liability or expense incurred without negligence or bad faith on its
     part, arising out of or in connection with the acceptance or administration
     of the trust or trusts hereunder, including the costs and expenses of
     defending itself against any claim or liability in connection with the
     exercise or performance of any of its powers or duties hereunder.

          In the event the Trustee incurs expenses or renders services in any
proceedings which result from an Event of Default under Section 501, subsection
(5) or (6) of this Indenture, or from any default which, with the passage of
time, would become such Event of Default, the expenses so incurred and
compensation for services so rendered are intended to constitute expenses of
administration under the United States Bankruptcy Code or equivalent law.

SECTION 608. Conflicting Interests.

          If the Trustee has or shall acquire a conflicting interest within the
meaning of the Trust Indenture Act, the Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of, the Trust Indenture Act and this Indenture.  To the extent
permitted by such Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being a trustee under this Indenture with respect to
Securities of more than one series.

SECTION 609. Corporate Trustee Required; Eligibility.

          There shall at all times be one (and only one) Trustee hereunder with
respect to the Securities of each series, which may be Trustee hereunder for
Securities of one or more other series.  Each Trustee shall be a Person that is
eligible pursuant to the Trust Indenture Act to act as such and has a combined
capital and surplus of at least $50,000,000.  If any such Person publishes
reports of condition at least annually, pursuant to law or to the requirements
of its supervising or examining authority, then for the purposes of this Section
and to the extent permitted by the Trust Indenture Act, the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time
the Trustee with respect to the Securities of any series shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.

SECTION 610. Resignation and Removal; Appointment of Successor.

          No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of Section 611.

          The Trustee may resign at any time with respect to the Securities of
one or more series by giving written notice thereof to the Company.  If the
instrument of acceptance by a successor Trustee required by Section 611 shall
not have been delivered to the Trustee within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.

                                       46
<PAGE>

          The Trustee may be removed at any time with respect to the Securities
of any series by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series, delivered to the Trustee and to the
Company.

          If at any time:

          (1) the Trustee shall fail to comply with Section 608  after written
     request therefor by the Company or by any Holder who has been a bona fide
     Holder of a Security for at least six months, or

          (2) the Trustee shall cease to be eligible under Section 609 and shall
     fail to resign after written request therefor by the Company or by any such
     Holder, or

          (3)  the Trustee shall become incapable of acting or shall be adjudged
     a bankrupt or insolvent or a receiver of the Trustee or of its property
     shall be appointed or any public officer shall take charge or control of
     the Trustee or of its property or affairs for the purpose of
     rehabilitation, conservation or liquidation,

then, in any such case, (A) the Company, acting pursuant to the authority of a
Board Resolution, may remove the Trustee with respect to all Securities, or (B)
subject to Section 514, any Holder who has been a bona fide Holder of a Security
for at least six months may, on behalf of himself and all others similarly
situated, petition any court of competent jurisdiction for the removal of the
Trustee with respect to all Securities and the appointment of a successor
Trustee or Trustees.

          If the Trustee shall resign, be removed or become incapable of acting,
or if a vacancy shall occur in the office of Trustee for any cause, with respect
to the Securities of one or more series, the Company, by a Board Resolution,
shall promptly appoint a successor Trustee or Trustees with respect to the
Securities of that or those series (it being understood that any such successor
Trustee may be appointed with respect to the Securities of one or more or all of
such series and that at any time there shall be only one Trustee with respect to
the Securities of any particular series) and shall comply with the applicable
requirements of Section 611.  If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Company and the retiring Trustee, the successor Trustee
so appointed shall, forthwith upon its acceptance of such appointment in
accordance with the applicable requirements of Section 611, become the successor
Trustee with respect to the Securities of such series and to that extent
supersede the successor Trustee appointed by the Company.  If no successor
Trustee with respect to the Securities of any series shall have been so
appointed by the Company or the Holders and accepted appointment in the manner
required by Section 611, any Holder who has been a bona fide Holder of a
Security of such series for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such
series.

          The Company shall give notice of each resignation and each removal of
the Trustee with respect to the Securities of any series and each appointment of
a successor Trustee with respect to the Securities of any series to all Holders
of Securities of such series in the

                                       47
<PAGE>

manner provided in Section 106. Each notice shall include the name of the
successor Trustee with respect to the Securities of such series and the address
of its Corporate Trust Office.

SECTION 611. Acceptance of Appointment by Successor.

          In case of the appointment hereunder of a successor Trustee with
respect to all Securities, every such successor Trustee so appointed shall
execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder.

          In case of the appointment hereunder of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor Trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor Trustee relates,
(2) if the retiring Trustee is not retiring with respect to all Securities,
shall contain such provisions as shall be deemed necessary or desirable to
confirm that all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee, and
(3) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, it being understood that nothing herein or
in such supplemental indenture shall constitute such Trustee's co-trustees of
the same trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such supplemental
indenture the resignation or removal of the retiring Trustee shall become
effective to the extent provided therein and each such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates; but, on request of the Company or any successor Trustee, such
retiring Trustee shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder with
respect to the Securities of that or those series to which the appointment of
such successor Trustee relates, provided that the retiring Trustee shall have
the right to first deduct any amounts due to the retiring Trustee under
Section 607.

          Upon request of any such successor Trustee, the Company shall execute
any and all instruments for more fully and certainly vesting in and confirming
to such successor Trustee all such rights, powers and trusts referred to in the
first or second preceding paragraph, as the case may be.

                                       48
<PAGE>

          No successor Trustee shall accept its appointment unless at the time
of such acceptance such successor Trustee shall be qualified and eligible under
this Article.

SECTION 612. Merger, Conversion, Consolidation or Succession to Business.

          Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all the corporate trust business
of the Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of
any, of the parties hereto.  In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Securities so authenticated, and in case any
Securities shall not have been authenticated, any successor to the Trustee may
authenticate such Securities either in the name of any predecessor Trustee or in
the name of such successor Trustee, and in all cases the certificate of
authentication shall have the full force which it is provided anywhere in the
Securities or in this Indenture that the certificate of the Trustee shall have.

SECTION 613. Preferential Collection of Claims Against Company.

          If and when the Trustee shall be or become a creditor of the Company
(or any other obligor upon the Securities), the Trustee shall be subject to the
provisions of the Trust Indenture Act regarding the collection of claims against
the Company (or any such other obligor).  For purposes of Section 311(b)(4) and
(6) of the Trust Indenture Act:

     (a) "cash transaction" means any transaction in which full payment for
goods or securities sold is made within seven days after delivery of the goods
or securities in currency or in checks or other orders drawn upon banks and
payable upon demand; and

     (b) "self-liquidating paper" means any draft, bill of exchange, acceptance
or obligation which is made, drawn, negotiated or incurred by the Company (or
any such obligor) for the purpose of financing the purchase, processing,
manufacturing, shipment, storage or sale of goods, wares or merchandise and
which is secured by documents evidencing title to, possession of, or a lien
upon, the goods, wares or merchandise or the receivables or proceeds arising
from the sale of the goods, wares or merchandise previously constituting the
security; provided the security is received by the Trustee simultaneously with
the creation of the creditor relationship with the Company (or any such obligor)
arising from the making, drawing, negotiating or incurring of the draft, bill of
exchange, acceptance or obligation.

SECTION 614. Appointment of Authenticating Agent.

          The Trustee may appoint an Authenticating Agent or Agents with respect
to one or more series of Securities which shall be authorized to act on behalf
of the Trustee to authenticate Securities of such series issued upon original
issue and upon exchange, registration of transfer or partial redemption thereof
or pursuant to Section 306, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory

                                       49
<PAGE>

for all purposes as if authenticated by the Trustee hereunder. Wherever
reference is made in this Indenture to the authentication and delivery of
Securities by the Trustee or the Trustee's certificate of authentication, such
reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Company and shall at all times
be a corporation organized and doing business under the laws of the United
States of America, any state thereof or the District of Columbia, authorized
under such laws to act as Authenticating Agent, having a combined capital and
surplus of not less than $50,000,000 and subject to supervision or examination
by federal or state authority. If such Authenticating Agent publishes reports of
condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Authenticating Agent shall be deemed to be
its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to be
eligible in accordance with the provisions of this Section, such Authenticating
Agent shall resign immediately in the manner and with the effect specified in
this Section.

          Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to all or substantially all of
the corporate agency or corporate trust business of an Authenticating Agent
shall be the successor Authenticating Agent hereunder, provided such corporation
shall be otherwise eligible under this Section, without the execution or filing
of any paper or any further act on the part of the Trustee or the Authenticating
Agent.

          An Authenticating Agent may resign at any time by giving written
notice thereof to the Trustee and to the Company.  The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice thereof
to such Authenticating Agent and to the Company.  Upon receiving such a notice
of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall give notice of such
appointment in the manner provided in Section 106 to all Holders of Securities
of the series with respect to which such Authenticating Agent will serve.  Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

          The Trustee agrees to pay to each Authenticating Agent from time to
time reasonable compensation for its services under this Section, and the
Trustee shall be entitled to be reimbursed for such payments, subject to the
provisions of Section 607.

          If an appointment with respect to one or more series is made pursuant
to this Section, the Securities of such series may have endorsed thereon, in
addition to the Trustee's certificate of authentication, an alternative
certificate of authentication in the following form:

                                       50
<PAGE>

          This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.

Dated:  ____________
                                                 Bank One, N.A.,
                                                 as Trustee

                                                 By: __________________________,
                                                         as Authenticating Agent

                                                 By: ___________________________
                                                              Authorized Officer

                                 ARTICLE SEVEN

               HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

SECTION 701. Company to Furnish Trustee Names and Addresses of Holders.

          The Company will furnish or cause to be furnished to the Trustee

          (1) semi-annually, not later than March 15 and September 15 in each
     year, a list, in such form as the Trustee may reasonably require, of the
     names and addresses of the Holders of Securities of each series as of the
     preceding March 1 or September 1 as the case may be, and

          (2) at such other times as the Trustee may request in writing, within
     30 days after the receipt by the Company of any such request, a list of
     similar form and content as of a date not more than 15 days prior to the
     time such list is furnished;

excluding from any such list names and addresses received by the Trustee in its
capacity as Security Registrar.

SECTION 702. Preservation of Information; Communications to Holders.

          The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders contained in the most recent
list furnished to the Trustee as provided in Section 701 and the names and
addresses of Holders received by the Trustee in its capacity as Security
Registrar.  The Trustee may destroy any list furnished to it as provided in
Section 701 upon receipt of a new list so furnished.

          The rights of Holders to communicate with other Holders with respect
to their rights under this Indenture or under the Securities, and the
corresponding rights and privileges of the Trustee, shall be as provided in the
Trust Indenture Act.

                                       51
<PAGE>

          Every Holder of Securities, by receiving and holding the same, agrees
with the Company and the Trustee that neither the Company nor the Trustee nor
any agent of either of them shall be held accountable by reason of any
disclosure of information as to names and addresses of Holders made pursuant to
the Trust Indenture Act.

SECTION 703. Reports by Trustee.

          The Trustee shall transmit to Holders such reports concerning the
Trustee and its actions under this Indenture as may be required pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant thereto.

          Reports so required to be transmitted at stated intervals of not more
than 12 months shall be transmitted no later than July 15 in each calendar year,
commencing with the first July 15 after the first issuance of Securities under
this Indenture.

          A copy of each such report shall, at the time of such transmission to
Holders, be filed by the Trustee with each stock exchange upon which any
Securities are listed, with the Commission and with the Company.  The Company
will notify the Trustee when any Securities are listed on any stock exchange.

SECTION 704. Reports by Company.

          The Company shall file with the Trustee and the Commission, and
transmit to Holders, such information, documents and other reports, and such
summaries thereof, as may be required pursuant to the Trust Indenture Act at the
times and in the manner provided in the Trust Indenture Act; provided that any
such information, documents or reports required to be filed with the Commission
pursuant to Section 13 or 15(d) of the Exchange Act shall be filed with the
Trustee within 15 days after the same is so required to be filed with the
Commission.

                                 ARTICLE EIGHT

              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

SECTION 801. Company May Consolidate, Etc., Only on Certain Terms.

          The Company shall not consolidate with or merge into any other Person
or convey, transfer or lease its properties and assets substantially as an
entirety to any Person, and the Company shall not permit any Person to
consolidate with or merge into the Company or convey, transfer or lease its
properties and assets substantially as an entirety to the Company, unless:

          (1)  in case the Company shall consolidate with or merge into another
     Person or convey, transfer or lease its properties and assets substantially
     as an entirety to any Person, the Person formed by such consolidation or
     into which the Company is merged or the Person which acquires by conveyance
     or transfer, or which leases, the properties and  assets of the Company
     substantially as an entirety shall be a corporation, partnership, trust or
     other entity, shall be organized and validly existing under the laws of the
     United States of America, any state thereof or the District of Columbia and
     shall expressly

                                       52
<PAGE>

     assume, by an indenture supplemental hereto, executed and delivered to the
     Trustee, in form satisfactory to the Trustee, the due and punctual payment
     of the principal of and any premium and interest on all the Securities and
     the performance or observance of every covenant of this Indenture on the
     part of the Company to be performed or observed;

          (2) immediately after giving effect to such transaction, no Event of
     Default, and no event which, after notice or lapse of time or both, would
     become an Event of Default, shall have happened and be continuing; and

          (3) the Company has delivered to the Trustee an Officers' Certificate
     and an Opinion of Counsel stating that such consolidation, merger,
     conveyance, transfer or lease and, if a supplemental indenture is required
     in connection with such transaction, such supplemental indenture comply
     with this Article and that all conditions precedent herein provided for
     relating to such transaction have been complied with; provided, however,
     that the delivery of an Officers' Certificate or an Opinion of Counsel is
     not required with respect to any consolidation, merger, conveyance,
     transfer or lease involving the Company and any wholly owned subsidiary of
     the Company.

SECTION 802. Successor Substituted.

          Upon any consolidation of the Company with, or merger of the Company
into, any other Person or any conveyance, transfer or lease of the properties
and assets of the Company substantially as an entirety in accordance with
Section 801, the successor Person formed by such consolidation or into which the
Company is merged or to which such conveyance, transfer or lease is made shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor
Person had been named as the Company herein; and in the event of any such
conveyance, transfer or lease the Company shall be discharged from all
obligations and covenants under the Indenture and the Securities and may be
dissolved and liquidated.

          Such successor Person may cause to be signed, and may issue either in
its own name or in the name of the Company, any or all of the Securities
issuable hereunder which theretofore shall not have been signed by the Company
and delivered to the Trustee; and, upon the order of such successor Person
instead of the Company and subject to all the terms, conditions and limitations
in this Indenture prescribed, the Trustee shall authenticate and shall deliver
any Securities which previously shall have been signed and delivered by the
officers of the Company to the Trustee for authentication pursuant to such
provisions and any Securities which such successor Person thereafter shall cause
to be signed and delivered to the Trustee on its behalf for the purpose pursuant
to such provisions.  All the Securities so issued shall in all respects have the
same legal rank and benefit under this Indenture as the Securities theretofore
or thereafter issued in accordance with the terms of this Indenture as though
all of such Securities had been issued at the date of the execution hereof.

          In case of any such consolidation, merger, sale, conveyance or lease,
such changes in phraseology and form may be made in the Securities thereafter to
be issued as may be appropriate.

                                       53
<PAGE>

                                 ARTICLE NINE

                            SUPPLEMENTAL INDENTURES

SECTION 901. Supplemental Indentures Without Consent of Holders.

          Without the consent of any Holders, the Company, when authorized by a
Board Resolution, and the Trustee, at any time and from time to time, may enter
into one or more indentures supplemental hereto, in form satisfactory to the
Trustee, for any of the following purposes:

          (1) to evidence the succession of another corporation to the Company,
     or successive successions, and the assumption by the successor corporation
     of the covenants, agreements and obligations of the Company pursuant to
     Article Eight; or

          (2) to add to the covenants of the Company for the benefit of the
     Holders of all or any series of Securities (and if such covenants are to be
     for the benefit of less than all series of Securities, stating that such
     covenants are expressly being included solely for the benefit of such
     series) or to surrender any right or power herein conferred upon the
     Company; or

          (3) to add any additional Events of Default for the benefit of the
     Holders of all or any series of Securities (and if such additional Events
     of Default are to be for the benefit of less than all series of Securities,
     stating that such additional Events of Default are expressly being included
     solely for the benefit of such series), provided, however, that in respect
     of any such additional Events of Default such supplemental indenture may
     provide for a particular period of grace after default (which period may be
     shorter or longer than that allowed in the case of other defaults) or may
     provide for an immediate enforcement upon such default or may limit the
     remedies available to the Trustee upon such default or may limit the right
     of the Holders of a majority in aggregate principal amount of that or those
     series of Securities to which such additional Events of Default apply to
     waive such default; or

          (4) to add to or change any of the provisions of this Indenture to
     such extent as shall be necessary to permit or facilitate the issuance of
     Securities in bearer form, registrable or not registrable as to principal,
     and with or without interest coupons, or to permit or facilitate the
     issuance of Securities in uncertificated form; or

          (5) to add to, change or eliminate any of the provisions of this
     Indenture in respect of one or more series of Securities; provided,
     however, that if such addition, change or elimination shall adversely
     affect the interests of Holders of Securities of any series, such addition,
     change or elimination shall become effective with respect to such series
     only when no such Security of such series remains Outstanding; or

          (6) to convey, transfer, assign, mortgage or pledge any property to or
     with the Trustee or to surrender any right or power herein conferred upon
     the Company; or

                                       54
<PAGE>

          (7)  to establish the form or terms of Securities of any series as
     permitted by Sections 201 and 301; or

          (8)  to provide for uncertificated securities in addition to
     certificated securities; or

          (9)  to evidence and provide for the acceptance of appointment
     hereunder by a successor Trustee with respect to the Securities of one or
     more series and to add to or change any of the provisions of this Indenture
     as shall be necessary to provide for or facilitate the administration of
     the trusts hereunder by more than one Trustee, pursuant to the requirements
     of Section 611; or

          (10) to cure any ambiguity, to correct or supplement any provision
     herein which may be defective or inconsistent with any other provision
     herein, or to make any other provisions with respect to matters or
     questions arising under this Indenture, provided that such action pursuant
     to this Clause (10) shall not adversely affect the interests of the Holders
     of Securities of any series; or

          (11) to supplement any of the provisions of this Indenture to such
     extent as shall be necessary to permit or facilitate the defeasance and
     discharge of any series of Securities pursuant to Sections 401, 1402 and
     1403; provided that any such action shall not adversely affect the
     interests of the holders of Securities of such series or any other series
     of Securities; or

          (12) to comply with the rules or regulations of any securities
     exchange or automated quotation system on which any of the Securities may
     be listed or traded; or

          (13) to add to, change or eliminate any of the provisions of this
     Indenture as shall be necessary or desirable in accordance with any
     amendments to the Trust Indenture Act, provided that such action does not
     adversely affect the rights or interests of any Holder of Securities.

SECTION 902. Supplemental Indentures With Consent of Holders.

          With the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities of each series affected by such
supplemental indenture (treated as one class), by Act of said Holders delivered
to the Company and the Trustee, the Company, when authorized by a Board
Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders of Securities of such series
under this Indenture; provided, however, that no such supplemental indenture
shall, without the consent of the Holder of each Outstanding Security affected
thereby,

          (1)  except to the extent permitted by Section 307(b) or Section 308
     or otherwise specified in the form or terms of the Securities of any series
     as permitted by Sections 201 and 301 with respect to extending the Stated
     Maturity of any Security of such series, change the Stated Maturity of the
     principal of, or any installment of principal

                                       55
<PAGE>

     of or interest on, any Security, or reduce the principal amount thereof or
     the rate of interest thereon or any premium payable upon the redemption
     thereof, or reduce the amount of the principal of an Original Issue
     Discount Security or any other Security which would be due and payable upon
     a declaration of acceleration of the Maturity thereof pursuant to Section
     502, or change any Place of Payment where, or the coin or currency in
     which, any Security or any premium or interest thereon is payable, or
     impair the right to institute suit for the enforcement of any such payment
     on or after the Stated Maturity thereof (or, in the case of redemption, on
     or after the Redemption Date), or

          (2) reduce the percentage in principal amount of the Outstanding
     Securities of any series, the consent of whose Holders is required for any
     such supplemental indenture, or the consent of whose Holders is required
     for any waiver (of compliance with certain provisions of this Indenture or
     certain defaults hereunder and their consequences) provided for in this
     Indenture, or

          (3) modify any of the provisions of this Section, Section 513 or
     Section 1006, except to increase any such percentage or to provide that
     certain other provisions of this Indenture cannot be modified or waived
     without the consent of the Holder of each Outstanding Security affected
     thereby; provided, however, that this clause shall not be deemed to require
     the consent of any Holder with respect to changes in the references to "the
     Trustee" and concomitant changes in this Section and Section 1006, or the
     deletion of this proviso, in accordance with the requirements of Sections
     611 and 901(9), or

          (4) if the Securities of any series are convertible or exchangeable
     into any other securities or property of the Company, make any change that
     adversely affects the right to convert or exchange any Security of such
     series (except as permitted by Section 901) or decrease the conversion or
     exchange rate or increase the conversion price of any such Security of such
     series,

          (5) modify the provisions of this Indenture with respect to the
     subordination of any Security in a manner adverse to the Holder thereof, or

          (6) if the Securities of any series are secured, change the terms and
     conditions pursuant to which the Securities of such series are secured in a
     manner adverse to the Holders of the secured Securities of such series.

          An amendment under this Section may not make any change that adversely
affects the rights under Article XVI of any holder of an issue of Senior Debt
unless the holders of the issue of Senior Debt pursuant to its terms consent to
the change.

          A supplemental indenture which changes or eliminates any covenant or
other provision of this Indenture which has expressly been included solely for
the benefit of one or more particular series of Securities, or which modifies
the rights of the Holders of Securities of such series with respect to such
covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

                                       56
<PAGE>

          It shall not be necessary for any Act of Holders under this Section to
approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such Act shall approve the substance thereof.

SECTION 903. Execution of Supplemental Indentures.

          In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture, the Trustee shall be entitled to receive,
and (subject to Section 601) shall be fully protected in relying upon, an
Officer's Certificate and an Opinion of Counsel stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture.  The
Trustee may, but shall not be obligated to, enter into any such supplemental
indenture which affects the Trustee's own rights, duties or immunities under
this Indenture or otherwise.

SECTION 904. Effect of Supplemental Indentures.

          Upon the execution of any supplemental indenture under this Article,
this Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every Holder
of Securities theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.

SECTION 905. Conformity with Trust Indenture Act.

          Every supplemental indenture executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act.

SECTION 906. Reference in Securities to Supplemental Indentures.

          Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article may, and shall
if required by the Trustee, bear a notation in form approved by the Trustee as
to any matter provided for in such supplemental indenture.  If the Company shall
so determine, new Securities of any series so modified as to conform, in the
opinion of the Trustee and the Company, to any such supplemental indenture may
be prepared and executed by the Company and authenticated and delivered by the
Trustee in exchange for Outstanding Securities of such series.

                                  ARTICLE TEN

                                   COVENANTS

SECTION 1001. Payment of Principal, Premium and Interest.

          The Company covenants and agrees for the benefit of each series of
Securities that it will duly and punctually pay the principal of and any premium
and interest on the Securities of that series in accordance with the terms of
the Securities and this Indenture.

                                       57
<PAGE>

SECTION 1002. Maintenance of Office or Agency.

          The Company will maintain in each Place of Payment for any series of
Securities an office or agency where Securities of that series may be presented
or surrendered for payment, where Securities of that series may be surrendered
for registration of transfer or exchange and where notices and demands to or
upon the Company in respect of the Securities of that series and this Indenture
may be served.  The Company initially appoints the Trustee, acting through its
Corporate Trust Office, as its agent for said purpose.  The Company will give
prompt written notice to the Trustee of the location, and any change in the
location, of such office or agency.  If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee
with the address thereof, such presentations, surrenders, notices and demands
may be made or served at the Corporate Trust Office of the Trustee, and the
Company hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands.

          The Company may also from time to time designate one or more other
offices or agencies where the Securities of one or more series may be presented
or surrendered for any or all such purposes and may from time to time rescind
such designations; provided, however, that no such designation or rescission
shall in any manner relieve the Company of its obligation to maintain an office
or agency in each Place of Payment for Securities of any series for such
purposes.  The Company will give prompt written notice to the Trustee of any
such designation or rescission and of any change in the location of any such
other office or agency.

SECTION 1003. Money for Securities Payments to Be Held in Trust.

          If the Company shall at any time act as its own Paying Agent with
respect to any series of Securities, it will, on or before each due date of the
principal of or any premium or interest on any of the Securities of that series,
segregate to the extent required by law and hold in trust for the benefit of the
Persons entitled thereto a sum sufficient to pay the principal and any premium
and interest so becoming due until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and will promptly notify the Trustee of
its action or failure so to act.

          Whenever the Company shall have one or more Paying Agents for any
series of Securities, it will provide to a Paying Agent a sum sufficient to pay
the principal of or any premium or interest on any Securities of that series,
such sum to be held as provided by the Trust Indenture Act, and (unless such
Paying Agent is the Trustee) the Company will promptly notify the Trustee of its
action or failure so to act.

          The Company will cause each Paying Agent for any series of Securities
other than the Trustee to execute and deliver to the Trustee an instrument in
which such Paying Agent shall agree with the Trustee, subject to the provisions
of this Section, that such Paying Agent will (1) comply with the provisions of
the Trust Indenture Act applicable to it as a Paying Agent and (2) during the
continuance of any default by the Company (or any other obligor upon the
Securities of that series) in the making of any payment in respect of the
Securities of that series, upon the written request of the Trustee, forthwith
pay to the Trustee all sums held in trust by such Paying Agent for payment in
respect of the Securities of that series.

                                       58
<PAGE>

          The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust by the Company or such Paying Agent, such sums to be held by the Trustee
upon the same trusts as those upon which such sums were held by the Company or
such Paying Agent; and, upon such payment by any Paying Agent to the Trustee,
such Paying Agent shall be released from all further liability with respect to
such money.

          Any money deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of the principal of or any premium or
interest on any Security of any series and remaining unclaimed for two years
after such principal, premium or interest has become due and payable may be paid
to the Company on Company Request, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter, as
an unsecured general creditor, look only to the Company for payment thereof, and
all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to
be published once, in a newspaper published in the English language, customarily
published on each Business Day and of general circulation in The City of New
York, notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such publication,
any unclaimed balance of such money then remaining will be repaid to the
Company.

SECTION 1004. Statement by Officers as to Default.

          The Company will deliver to the Trustee, within 120 days after the end
of each fiscal year of the Company ending after the date hereof, an Officers'
Certificate, one of the signers of which shall be the principal executive,
principal accounting or principal financial officer of the Company, stating
whether or not to the best knowledge of the signers thereof the Company, is in
default in the performance and observance of any of the terms, provisions,
covenants and conditions of this Indenture (without regard to any period of
grace or requirement of notice provided hereunder) and, if the Company shall be
in default, specifying all such defaults and the nature and status thereof of
which they may have knowledge.

SECTION 1005. Existence.

          Subject to Article Eight, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence.

SECTION 1006. Waiver of Certain Covenants.

          Except as otherwise specified as contemplated by Section 301 for
Securities of such series, the Company may, with respect to the Securities of
any series, omit in any particular instance to comply with any term, provision
or condition set forth in any covenant provided pursuant to Section 301(20),
901(2) or 901(7) for the benefit of the Holders of such series or in Article
Eight or Section 1005, if the Holders of at least a majority in principal amount
of the Outstanding Securities of such series shall, by Act of such Holders,
either waive such

                                       59
<PAGE>

compliance in such instance or generally waive compliance with such term,
provision or condition, but no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until such
waiver shall become effective, the obligations of the Company and the duties of
the Trustee in respect of any such term, provision or condition shall remain in
full force and effect.

                                ARTICLE ELEVEN

                            REDEMPTION OF SECURITIES

SECTION 1101. Applicability of Article.

          Securities of any series which are redeemable before their Stated
Maturity shall be redeemable in accordance with their terms and (except as
otherwise specified as contemplated by Section 301 for such Securities) in
accordance with this Article.

SECTION 1102. Election to Redeem; Notice to Trustee.

          The election of the Company to redeem any Securities shall be
evidenced by a Board Resolution or in another manner specified as contemplated
by Section 301 for such Securities.  In case of any redemption at the election
of the Company of less than all the Securities of any series (including any such
redemption affecting only a single Security), the Company shall, not less than
45 nor more than 60 days prior to the Redemption Date fixed by the Company
(unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee of such Redemption Date, of the principal amount of Securities of such
series to be redeemed and, if applicable, of the tenor of the Securities to be
redeemed.  In the case of any redemption of Securities prior to the expiration
of any restriction on such redemption provided in the terms of such Securities
or elsewhere in this Indenture, the Company shall furnish the Trustee with an
Officers' Certificate and an Opinion of Counsel evidencing compliance with such
restriction.

SECTION 1103. Selection by Trustee of Securities to Be Redeemed.

          If less than all the Securities of any series are to be redeemed
(unless all the Securities of such series and of a specified tenor are to be
redeemed or unless such redemption affects only a single Security), the
particular Securities to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities of
such series not previously called for redemption, by such method as the Trustee
shall deem fair and appropriate and which may provide for the selection for
redemption of a portion of the principal amount of any Security of such series,
provided that the unredeemed portion of the principal amount of any Security
shall be in an authorized denomination (which shall not be less than the minimum
authorized denomination) for such Security.  If less than all the Securities of
such series and of a specified tenor are to be redeemed (unless such redemption
affects only a single Security), the particular Securities to be redeemed shall
be selected not more than 60 days prior to the Redemption Date by the Trustee,
from the Outstanding Securities of such series and specified tenor not
previously called for redemption in accordance with the preceding sentence.

                                       60
<PAGE>

          The Trustee shall promptly notify the Company in writing of the
Securities selected for redemption as aforesaid and, in case of any Securities
selected for partial redemption as aforesaid, the principal amount thereof to be
redeemed.

          The provisions of the two preceding paragraphs shall not apply with
respect to any redemption affecting only a single Security, whether such
Security is to be redeemed in whole or in part.  In the case of any such
redemption in part, the unredeemed portion of the principal amount of the
Security shall be in an authorized denomination (which shall not be less than
the minimum authorized denomination) for such Security.

          For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Securities shall relate,
in the case of any Securities redeemed or to be redeemed only in part, to the
portion of the principal amount of such Securities which has been or is to be
redeemed.  If the Company shall so direct, Securities registered in the name of
the Company, any Affiliate or any Subsidiary thereof shall not be included in
the Securities selected for redemption.

SECTION 1104. Notice of Redemption.

          Notice of redemption shall be given by first-class mail, postage
prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption
Date, to each Holder of Securities to be redeemed, at his address appearing in
the Security Register.

          With respect to Securities of each series to be redeemed, each notice
of redemption shall identify the Securities to be redeemed (including CUSIP
numbers) and shall state:

          (1) the Redemption Date,

          (2) the Redemption Price,

          (3) if less than all the Outstanding Securities of any series
     consisting of more than a single Security are to be redeemed, the
     identification (and, in the case of partial redemption of any such
     Securities, the principal amounts) of the particular Securities to be
     redeemed and, if less than all the Outstanding Securities of any series
     consisting of a single Security are to be redeemed, the principal amount of
     the particular Security to be redeemed,

          (4) that on the Redemption Date the Redemption Price will become due
     and payable upon each such Security to be redeemed and, if applicable, that
     interest thereon will cease to accrue on and after said date,

          (5) the place or places where each such Security is to be surrendered
     for payment of the Redemption Price, and

          (6) that the redemption is for a sinking fund, if such is the case.

                                       61
<PAGE>

          Notice of redemption of Securities to be redeemed at the election of
     the Company shall be given by the Company or, at the Company's request, by
     the Trustee in the name and at the expense of the Company and shall be
     irrevocable.  The notice if mailed in the manner herein provided shall be
     conclusively presumed to have been duly given, whether or not the Holder
     receives such notice. In any case, a failure to give such notice by mail or
     any defect in the notice to the Holder of any Security designated for
     redemption as a whole or in part shall not affect the validity of the
     proceedings for the redemption of any other Security.

SECTION 1105. Deposit of Redemption Price.

          On or before the Redemption Date specified in the notice of redemption
given as provided in Section 1104, the Company shall deposit with the Trustee or
with a Paying Agent (or, if the Company is acting as its own Paying Agent,
segregate and hold in trust as provided in Section 1003) an amount of money
sufficient to pay the Redemption Price of, and (except if the Redemption Date
shall be an Interest Payment Date) accrued interest on, all the Securities which
are to be redeemed on that date.

SECTION 1106. Securities Payable on Redemption Date.

          Notice of redemption having been given as aforesaid, the Securities so
to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest.  Upon surrender of any
such Security for redemption in accordance with said notice, such Security shall
be paid by the Company at the Redemption Price, together with accrued interest
to the Redemption Date; provided, however, that, unless otherwise specified as
contemplated by Section 301, installments of interest whose Stated Maturity is
on or prior to the Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 307.

          If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal and any premium shall, until
paid, bear interest from the Redemption Date at the rate prescribed therefor in
the Security.

SECTION 1107. Securities Redeemed in Part.

          Any Security which is to be redeemed only in part shall be surrendered
at a Place of Payment therefor (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to
the Company and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing), and the Company shall execute, and the Trustee
shall authenticate and deliver to the Holder of such Security without service
charge, a new Security or Securities of the same series and of like tenor, of
any authorized denomination as requested by such Holder, in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered.

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                                ARTICLE TWELVE

                                 SINKING FUNDS

SECTION 1201. Applicability of Article.

          The provisions of this Article shall be applicable to any sinking fund
for the retirement of Securities of any series except as otherwise specified as
contemplated by Section 301 for such Securities.

          The minimum amount of any sinking fund payment provided for by the
terms of any Securities of any series is herein referred to as a "mandatory
sinking fund payment", and any sinking fund payment in excess of such minimum
amount which is permitted to be made by the terms of such Securities is herein
referred to as an "optional sinking fund payment".  If provided for by the terms
of any Securities of any series, the cash amount of any sinking fund payment may
be subject to reduction as provided in Section 1202.  Each sinking fund payment
shall be applied to the redemption of Securities of any series as provided for
by the terms of such Securities.

SECTION 1202. Satisfaction of Sinking Fund Payments with Securities.

          The Company (1) may deliver Outstanding Securities of a series (other
than any previously called for redemption) and (2) may apply as a credit
Securities of a series which have been redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to any Securities of such series required to be made
pursuant to the terms of such Securities as and to the extent provided for by
the terms of such Securities; provided that the Securities to be so credited
have not been previously so credited.  The Securities to be so credited shall be
received and credited for such purpose by the Trustee at the Redemption Price,
as specified in the Securities so to be redeemed, for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly.

SECTION 1203. Redemption of Securities for Sinking Fund.

          Not less than 60 days prior to each sinking fund payment date for any
series of Securities, the Company will deliver to the Trustee an Officers'
Certificate specifying the amount of the next ensuing sinking fund payment for
such Securities pursuant to the terms of such Securities, the portion thereof,
if any, which is to be satisfied by payment of cash and the portion thereof, if
any, which is to be satisfied by delivering and crediting Securities pursuant to
Section 1202 and will also deliver to the Trustee any Securities to be so
delivered.  Not less than 45 days prior to each such sinking fund payment date,
the Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 1103 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 1104.  Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 1106 and 1107.

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                               ARTICLE THIRTEEN

                     REPAYMENT AT THE OPTION OF THE HOLDERS

SECTION 1301. Applicability of Article.

          Repayment of securities of any series before their Stated Maturity at
the option of Holders thereof shall be made in accordance with the terms of such
Securities and (except as otherwise specified as contemplated by Section 301 for
Securities of any series) in accordance with this Article.

SECTION 1302. Repayment of Securities.

          Securities of any series subject to repayment in whole or in part at
the option of the Holders thereof will, unless otherwise provided in the terms
of such Securities, be repaid at a price equal to the principal amount thereof,
together with interest and/or premium, if any, thereon accrued to the Repayment
Date specified in or pursuant to the terms of such Securities.  The Company
covenants that on or before the Repayment Date it will deposit with the Trustee
or with a Paying Agent (or, if the Company is acting as its own Paying Agent,
segregate and hold in trust as provided in Section 1003) an amount of money
sufficient to pay the principal (or, if so provided by the terms of the
Securities of any series, a percentage of the principal) of, the premium, if
any, and (except if the Repayment Date shall be an Interest Payment Date)
accrued interest on, all the Securities or portions thereof, as the case may be,
to be repaid on such date.

SECTION 1303. Exercise of Option.

          Securities of any series subject to repayment at the option of the
Holders thereof will contain an "Option to Elect Repayment" form on the reverse
of such Securities.  To be repaid at the option of the Holder, any Security so
providing for such repayment, with the "Option to Elect Repayment" form on the
reverse of such Security duly completed by the Holder (or by the Holder's
attorney duly authorized in writing), must be received by the Company at the
Place of Payment therefor specified in the terms of such Security (or at such
other place or places of which the Company shall from time to time notify the
Holders of such Securities) not earlier than 45 days nor later than 30 days
prior to the Repayment Date.  If less than the entire principal amount of such
Security is to be repaid in accordance with the terms of such Security, the
principal amount of such Security to be repaid, in increments of the minimum
denomination for Securities of such series, the premium, if any, to be paid, and
the denomination or denominations of the Security or Securities to be issued to
the Holder for the portion of the principal amount of such Security surrendered
that is not to be repaid, must be specified.  The principal amount of any
Security providing for repayment at the option of the Holder thereof may not be
repaid in part if, following such repayment, the unpaid principal amount of such
Security would be less than the minimum authorized denomination of Securities of
the series of which such Security to be repaid is a part.  Except as otherwise
may be provided by the terms of any Security providing for repayment at the
option of the Holder thereof and as provided in Sections 307(b) and 308,
exercise of the repayment option by the Holder shall be irrevocable unless
waived by the Company.

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<PAGE>

SECTION 1304. When Securities Presented for Repayment Become Due and Payable.

          If Securities of any series providing for repayment at the option of
the Holders thereof shall have been surrendered as provided in this Article and
as provided by or pursuant to the terms of such Securities, such Securities or
the portions thereof, as the case may be, to be repaid shall become due and
payable and shall be paid by the Company on the Repayment Date therein
specified, and on and after such Repayment Date (unless the Company shall
default in the payment of such Securities on such Repayment Date) such
Securities shall, if the same were interest-bearing, cease to bear interest.
Upon surrender of any such Security for repayment in accordance with such
provisions, the principal amount of such Security so to be repaid shall be paid
by the Company, together with accrued interest and/or premium, if any, to the
Repayment Date; provided, however, that installments of interest, if any, whose
Stated Maturity is on or prior to the Repayment Date shall be payable (but
without interest thereon, unless the Company shall default in the payment
thereof) to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the relevant Record
Dates according to their terms and the provisions of Section 307.

          If the principal amount of any Security surrendered for repayment
shall not be so repaid upon surrender thereof, such principal amount (together
with interest, if any, thereon accrued to such Repayment Date) shall, until
paid, bear interest from the Repayment Date at the rate of interest or Yield to
Maturity (in the case of Original Issue Discount Securities) set forth in such
Security.

SECTION 1305. Securities Repaid in Part.

          Upon surrender of any Security which is to be repaid in part only, the
Company shall execute and the Trustee shall authenticate and deliver to the
Holder of such Security, without service charge and at the expense of the
Company, a new Security or Securities of the same series, of any authorized
denomination specified by the Holder, in an aggregate principal amount equal to
and in exchange for the portion of the principal of such Security so surrendered
which is not to be repaid.

                               ARTICLE FOURTEEN

                       DEFEASANCE AND COVENANT DEFEASANCE

SECTION 1401. Company's Option to Effect Defeasance or Covenant Defeasance.

          The Company may elect, at its option at any time, to have Section 1402
or Section 1403 applied to any Securities or any series of Securities, as the
case may be, (unless designated pursuant to Section 301 as not being defeasible
pursuant to such Section 1402 or 1403), in accordance with any applicable
requirements provided pursuant to Section 301 and upon compliance with the
conditions set forth below in this Article.  Any such election shall be
evidenced by a Board Resolution or in another manner specified as contemplated
by Section 301 for such Securities.

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<PAGE>

SECTION 1402. Defeasance and Discharge.

          Upon the Company's exercise of its option (if any) to have this
Section applied to any Securities or any series of Securities, as the case may
be, the Company shall be deemed to have been discharged from its obligations
with respect to such Securities as provided in this Section on and after the
date the conditions set forth in Section 1404 are satisfied (hereinafter called
"Defeasance").  For this purpose, such Defeasance means that the Company shall
be deemed to have paid and discharged the entire indebtedness represented by
such Securities and to have satisfied all its other obligations under such
Securities and this Indenture insofar as such Securities are concerned (and the
Trustee, at the expense of the Company, shall execute proper instruments
acknowledging the same), subject to the following which shall survive until
otherwise terminated or discharged hereunder: (1) the rights of Holders of such
Securities to receive, solely from the trust fund described in Section 1404 and
as more fully set forth in such Section, payments in respect of the principal of
and any premium and interest on such Securities when payments are due, (2) the
Company's obligations with respect to such Securities under Sections 304, 305,
306, 1002 and 1003, (3) the rights, powers, trusts, duties and immunities of the
Trustee hereunder and (4) this Article.  Subject to compliance with this
Article, the Company may exercise its option (if any) to have this Section
applied to any Securities notwithstanding the prior exercise of its option (if
any) to have Section 1403 applied to such Securities.

SECTION 1403. Covenant Defeasance.

          Upon the Company's exercise of its option (if any) to have this
Section applied to any Securities or any series of Securities, as the case may
be, (1) the Company shall be released from its obligations under Article Eight
and under any covenants provided pursuant to Section 301(20), 901(2) or 901(7)
for the benefit of the Holders of such Securities and (2) the occurrence of any
event specified in Sections 501(4) (with respect to Article Eight and to any
such covenants provided pursuant to Section 301(20), 901(2) or 901(7)), and
501(7) shall be deemed not to be or result in an Event of Default, in each case
with respect to such Securities as provided in this Section on and after the
date the conditions set forth in Section 1404 are satisfied (hereinafter called
"Covenant Defeasance").  For this purpose, such Covenant Defeasance means that,
with respect to such Securities, the Company may omit to comply with and shall
have no liability in respect of any term, condition or limitation set forth in
any such specified Section (to the extent so specified in the case of Section
501(4)), whether directly or indirectly by reason of any reference elsewhere
herein to any such Section or by reason of any reference in any such Section to
any other provision herein or in any other document, but the remainder of this
Indenture and such Securities shall be unaffected thereby.

SECTION 1404. Conditions to Defeasance or Covenant Defeasance.

          The following shall be the conditions to the application of Section
1402 or Section 1403 to any Securities or any series of Securities, as the case
may be:

          (1) The Company shall irrevocably have deposited or caused to be
     deposited with the Trustee (or another trustee which satisfies the
     requirements contemplated by Section 609 and agrees to comply with the
     provisions of this Article applicable to it) as trust funds in trust for
     the purpose of making the following payments, specifically

                                       66
<PAGE>

     pledged as security for, and dedicated solely to, the benefits of the
     Holders of such Securities, (A) money in an amount, or (B) U.S. Government
     Obligations which through the scheduled payment of principal and interest
     in respect thereof in accordance with their terms will provide, not later
     than one day before the due date of any payment, money in an amount, or
     (C) a combination thereof, in each case sufficient, in the opinion of a
     nationally recognized firm of independent public accountants expressed in a
     written certification thereof delivered to the Trustee, to pay and
     discharge, and which shall be applied by the Trustee (or any such other
     qualifying trustee) to pay and discharge, the principal of and any premium
     and interest on such Securities on the respective Stated Maturities, in
     accordance with the terms of this Indenture and such Securities. As used
     herein, "U.S. Government Obligation" means (x) any security which is (i) a
     direct obligation of the United States of America for the payment of which
     the full faith and credit of the United States of America is pledged or
     (ii) an obligation of a Person controlled or supervised by and acting as an
     agency or instrumentality of the United States of America the payment of
     which is unconditionally guaranteed as a full faith and credit obligation
     by the United States of America, which, in either case (i) or (ii), is not
     callable or redeemable at the option of the issuer thereof, and (y) any
     depositary receipt issued by a bank (as defined in Section 3(a)(2) of the
     Securities Act) as custodian with respect to any U.S. Government Obligation
     which is specified in Clause (x) above and held by such bank for the
     account of the holder of such depositary receipt, or with respect to any
     specific payment of principal of or interest on any U.S. Government
     Obligation which is so specified and held, provided that (except as
     required by law) such custodian is not authorized to make any deduction
     from the amount payable to the holder of such depositary receipt from any
     amount received by the custodian in respect of the U.S. Government
     Obligation or the specific payment of principal or interest evidenced by
     such depositary receipt.

          (2) In the event of an election to have Section 1402 apply to any
     Securities or any series of Securities, as the case may be, the Company
     shall have delivered to the Trustee an Opinion of Counsel stating that
     (A) the Company has received from, or there has been published by, the
     Internal Revenue Service a ruling or (B) since the date of this instrument,
     there has been a change in the applicable federal income tax law, in either
     case (A) or (B) to the effect that, and based thereon such opinion shall
     confirm that, the Holders of such Securities will not recognize gain or
     loss for federal income tax purposes as a result of the deposit, Defeasance
     and discharge to be effected with respect to such Securities and will be
     subject to federal income tax on the same amount, in the same manner and at
     the same times as would be the case if such deposit, Defeasance and
     discharge were not to occur.

          (3) In the event of an election to have Section 1403 apply to any
     Securities or any series of Securities, as the case may be, the Company
     shall have delivered to the Trustee an Opinion of Counsel to the effect
     that the Holders of such Securities will not recognize gain or loss for
     federal income tax purposes as a result of the deposit and Covenant
     Defeasance to be effected with respect to such Securities and will be
     subject to federal income tax on the same amount, in the same manner and at
     the same times as would be the case if such deposit and Covenant Defeasance
     were not to occur.

                                       67
<PAGE>

          (4)  The Company shall have delivered to the Trustee an Officer's
     Certificate to the effect that neither such Securities nor any other
     Securities of the same series, if then listed on any securities exchange,
     will be delisted as a result of such deposit.

          (5)  No event which is, or after notice or lapse of time or both would
     become, an Event of Default with respect to such Securities or any other
     Securities shall have occurred and be continuing at the time of such
     deposit or, with regard to any such event specified in Sections 501(5) and
     (6), at any time on or prior to the 90th day after the date of such deposit
     (it being understood that this condition shall not be deemed satisfied
     until after such 90th day).

          (6)  Such Defeasance or Covenant Defeasance shall not cause the
     Trustee to have a conflicting interest within the meaning of the Trust
     Indenture Act (assuming all Securities are in default within the meaning of
     such Act).

          (7)  Such Defeasance or Covenant Defeasance shall not result in a
     breach or violation of, or constitute a default under, any other agreement
     or instrument to which the Company is a party or by which it is bound.

          (8)  Such Defeasance or Covenant Defeasance shall not result in the
     trust arising from such deposit constituting an investment company within
     the meaning of the Investment Company Act unless such trust shall be
     registered under such Act or exempt from registration thereunder.

          (9)  The Company shall have delivered to the Trustee an agreement
     whereby the Company irrevocably agrees to forfeit its right, if any, (A) to
     reset the interest rate of such Securities pursuant to Section 307(b) and
     (B) to extend the Stated Maturity of such Securities pursuant to Section
     308.

          (10) The Company shall have delivered to the Trustee an Officer's
     Certificate and an Opinion of Counsel, each stating that all conditions
     precedent with respect to such Defeasance or Covenant Defeasance have been
     complied with.

SECTION 1405. Acknowledgment of Discharge By Trustee.

          Subject to Section 1407 below and after the Company has delivered to
the Trustee an Officer's Certificate and an Opinion of Counsel, each stating
that all conditions precedent referred to in Section 1404, as the case may be,
relating to the defeasance or satisfaction and discharge of this Indenture have
been complied with, the Trustee upon request of the Company shall acknowledge in
writing the defeasance or the satisfaction and discharge, as the case may be, of
this Indenture and the discharge of the Company's obligations under this
Indenture.

SECTION 1406. Deposited Money and U.S. Government Obligations to Be Held in
Trust; Miscellaneous Provisions.

          Subject to the provisions of the last paragraph of Section 1003, all
money and U.S. Government Obligations (including the proceeds thereof) deposited
with the Trustee or other qualifying trustee (solely for purposes of this
Section and Section 1406, the Trustee

                                       68
<PAGE>

and any such other trustee are referred to collectively as the "Trustee")
pursuant to Section 1404 in respect of any Securities shall be held in trust and
applied by the Trustee, in accordance with the provisions of such Securities and
this Indenture, to the payment, either directly or through any such Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of such Securities, of all sums due and to become due
thereon in respect of principal and any premium and interest, but money so held
in trust need not be segregated from other funds except to the extent required
by law.

          The Company shall pay and indemnify the Trustee against any tax, fee
or other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to Section 1404 or the principal and interest received in
respect thereof other than any such tax, fee or other charge which by law is for
the account of the Holders of Outstanding Securities.

          Anything in this Article to the contrary notwithstanding, the Trustee
shall deliver or pay to the Company from time to time upon Company Request any
money or U.S. Government Obligations held by it as provided in Section 1404 with
respect to any Securities which, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then
be required to be deposited to effect the Defeasance or Covenant Defeasance, as
the case may be, with respect to such Securities.

SECTION 1407. Reinstatement.

          If the Trustee or the Paying Agent is unable to apply any money in
accordance with this Article with respect to any Securities by reason of any
order or judgment of any court or governmental authority enjoining, restraining
or otherwise prohibiting such application, then the obligations under this
Indenture and such Securities from which the Company has been discharged or
released pursuant to Section 1402 or 1403 shall be revived and reinstated as
though no deposit had occurred pursuant to this Article with respect to such
Securities, until such time as the Trustee or Paying Agent is permitted to apply
all money held in trust pursuant to Section 1405 with respect to such Securities
in accordance with this Article; provided, however, that if the Company makes
any payment of principal of or any premium or interest on any such Security
following such reinstatement of its obligations, the Company shall be subrogated
to the rights (if any) of the Holders of such Securities to receive such payment
from the money so held in trust.

                                ARTICLE FIFTEEN

                    IMMUNITY OF INCORPORATORS, SHAREHOLDERS,

                       OFFICERS, DIRECTORS AND EMPLOYEES

SECTION 1501. Exemption from Individual Liability.

          No recourse under or upon any obligation, covenant or agreement of
this Indenture, or of any Security, or for any claim based thereon or otherwise
in respect thereof, shall be had against any incorporator, shareholder, officer,
director or employee, as such, past, present or future, of the Company or of any
successor corporation, either directly or through the

                                       69
<PAGE>

Company, whether by virtue of any constitution, statute or rule of law, or by
the enforcement of any assessment or penalty or otherwise; it being expressly
understood that this Indenture and the obligations issued hereunder are solely
corporate obligations of the Company, and that no such personal liability
whatever shall attach to, or is or shall be incurred by, the incorporators,
shareholders, officers, directors, or employees, as such, of the Company or of
any successor corporation, or any of them, because of the creation of the
indebtedness hereby authorized, or under or by reason of the obligations,
covenants or agreements contained in this Indenture or in any of the Securities
or implied therefrom; and that any and all such personal liability, either at
common law or in equity or by constitution or statute, of, and any and all such
rights and claims against, every such incorporator, shareholder, officer,
director or employee, as such, because of the creation of the indebtedness
hereby authorized, or under or by reason of the obligations, covenants or
agreements contained in this Indenture or in any of the Securities or implied
therefrom, are hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issue of such
Securities.

          This instrument may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.

                                ARTICLE SIXTEEN

                                 SUBORDINATION

SECTION 1601. Agreement to Subordinate.

          The Company covenants and agrees, and each Holder hereunder by his
acceptance thereof likewise covenants and agrees, that all Securities shall be
issued subject to the provisions of this Article Sixteen; and each person
holding any Security, whether upon original issue or upon transfer, assignment
or exchange thereof accepts and agrees to be bound by such provisions.

          The payment by the Company of the principal of, premium, if any, and
interest on all Securities issued hereunder shall, to the extent and in the
manner hereinafter set forth, be subordinated and junior in right of payment to
all Senior Debt, whether outstanding at the date of this Indenture or thereafter
incurred.

          No provision of this Article Sixteen shall prevent the occurrence of
any default or Event of Default hereunder.

SECTION 1602. Default on Senior Debt.

          In the event and during the continuation of any default by the Company
in the payment of principal, premium, interest or any other payment due on any
Senior Debt, or in the event that the maturity of any Senior Debt has been
accelerated because of a default, then, in either case, no payment shall be made
by the Company with respect to the principal (including redemption payments) of
or premium, if any, or interest on the Securities until such default shall have
been cured or waived in writing or shall have ceased to exist or such Senior
Debt shall have been discharged or paid in full.

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<PAGE>

          In the event of the acceleration of the maturity of the Securities,
then no payment shall be made by the Company with respect to the principal
(including redemption payments) of or premium, if any, or interest on the
Securities until the holders of all Senior Debt outstanding at the time of such
acceleration shall receive payment in full of such Senior Debt (including any
amounts due upon acceleration).

          In the event that, notwithstanding the foregoing, any payment shall be
received by the Trustee or any Holder when such payment is prohibited by the
preceding paragraphs of this Section 1602, such payment shall be held in trust
for the benefit of, and shall be paid over or delivered to, the holders of
Senior Debt or their respective representatives, or to the trustee or trustees
under any indenture pursuant to which any of such Senior Debt may have been
issued, as their respective interests may appear.

SECTION 1603. Liquidation; Dissolution; Bankruptcy.

          Upon any payment by the Company or distribution of assets of the
Company of any kind or character, whether in cash, property or securities, to
creditors upon any liquidation, dissolution, winding up, receivership,
reorganization, assignment for the benefit of creditors, marshaling of assets
and liabilities or any bankruptcy, insolvency or similar proceedings of the
Company, all amounts due or to become due upon all Senior Debt shall first be
paid in full, in cash or cash equivalents, or payment thereof provided for in
accordance with its terms, before any payment is made on account of the
principal of, premium, if any, or interest on the indebtedness evidenced by the
Securities, and upon any such liquidation, dissolution, winding up,
receivership, reorganization, assignment, marshaling or proceeding, any payment
or distribution of assets of the Company of any kind or character, whether in
cash, property or securities, to which the Holders or the Trustee under this
Indenture would be entitled, except for the provisions of this Article Sixteen,
shall be paid by the Company or by any receiver, trustee in bankruptcy,
liquidating trustee, agent or other Person making such payment or distribution,
or by the Holders or by the Trustee under this Indenture if received by them or
it, directly to the holders of Senior Debt (pro rata to such holders on the
basis of the respective amounts of Senior Debt held by such holders) or their
respective representatives, or to the trustee or trustees under any indenture
pursuant to which any instruments evidencing any of such Senior Debt may have
been issued, as their respective interests may appear, to the extent necessary
to pay all Senior Debt in full (including, without limitation, except to the
extent, if any, prohibited by mandatory provisions of law, post-petition
interest, in any such proceedings), after giving effect to any concurrent
payment or distribution to or for the holders of Senior Debt, before any payment
or distribution is made to the Holders of the indebtedness evidenced by the
Securities or to the Trustee under this Indenture.

          In the event that, notwithstanding the foregoing, any payment or
distribution of assets of the Company of any kind or character, whether in cash,
property or securities, prohibited by the foregoing, shall be received by the
Trustee under this Indenture or the Holders of the Securities before all Senior
Debt is paid in full or provision is made for such payment in accordance with
its terms, such payment or distribution shall be held in trust for the benefit
of and shall be paid over or delivered to the holders of such Senior Debt or
their respective representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing any of such Senior Debt
may have been issued, as their respective

                                       71
<PAGE>

interests may appear, for application to the payment of all Senior Debt
remaining unpaid until all such Senior Debt shall have been paid in full in
accordance with its terms, after giving effect to any concurrent payment or
distribution to or for the holders of such Senior Debt.

          For purposes of this Article Sixteen, the words "cash, property or
securities" shall not be deemed to include shares of stock of the Company as
reorganized or readjusted, or securities of the Company or any other corporation
provided for by a plan of arrangement, reorganization or readjustment, the
payment of which is subordinated (at least to the extent provided in this
Article Sixteen with respect to the Securities) to the payment of all Senior
Debt which may at the time be outstanding; provided, that (i) the Senior Debt is
assumed by the new corporation, if any, resulting from any such arrangement,
reorganization or readjustment, and (ii) the rights of the holders of the Senior
Debt are not, without the consent of such holders, altered by such arrangement,
reorganization or readjustment.  The consolidation of the Company with, or the
merger of the Company into, another corporation or the liquidation or
dissolution of the Company following the conveyance or transfer of its property
as an entirety, or substantially as an entirety, to another corporation upon the
terms and conditions provided in Article Eight shall not be deemed a
dissolution, winding-up, liquidation or reorganization for the purposes of this
Section if such other Person shall, as a part of such consolidation, merger,
conveyance or transfer, comply with the conditions stated in Article Eight.
Nothing in Section 1602 or this Section 1603 shall apply to claims of, or
payments to, the Trustee under or pursuant to Article Six, except as provided
therein. This Section shall be subject to the further provisions of Section
1606.

SECTION 1604. Subrogation of Securities.

          Subject to the payment in full of all Senior Debt, the rights of the
Holders of the Securities shall be subrogated to the rights of the holders of
Senior Debt to receive payments or distributions of cash, property or securities
of the Company applicable to the Senior Debt until the principal of, premium, if
any, and interest on the Securities shall be paid in full; and, for the purposes
of such subrogation, no payments or distributions to the holders of the Senior
Debt of any cash, property or securities to which the Holders of the Securities
or the Trustee on their behalf would be entitled except for the provisions of
this Article Sixteen and no payment over pursuant to the provisions of this
Article Sixteen to the holders of Senior Debt by Holders of the Securities or
the Trustee on their behalf shall, as between the Company, its creditors other
than Holders of Senior Debt and the Holders of the Securities, be deemed to be a
payment by the Company to or on account of the Senior Debt; and no payments or
distributions of cash, property or securities to or for the benefit of the
Holders pursuant to the subrogation provisions of this Article Sixteen, which
would otherwise have been paid to the holders of Senior Debt shall be deemed to
be a payment by the Company to or for the account of the Securities.  It is
understood that the provisions of this Article Sixteen are and are intended
solely for the purpose of defining the relative rights of the Holders of the
Securities, on the one hand, and the holders of the Senior Debt, on the other
hand.

          Nothing contained in this Article Sixteen or elsewhere in this
Indenture or in the Securities is intended to or shall impair, as between the
Company, its creditors other than the holders of Senior Debt, and the Holders of
the Securities, the obligation of the Company, which is absolute and
unconditional, to pay to the Holders of the Securities the principal of,
premium, if

                                       72
<PAGE>

any, and interest on the Securities as and when the same shall become due and
payable in accordance with their terms, or is intended to or shall affect the
relative rights of the Holders of the Securities and creditors of the Company
other than the holders of the Senior Debt, nor shall anything herein or therein
prevent the Holder of any Security or the Trustee on his behalf from exercising
all remedies otherwise permitted by applicable law upon default under this
Indenture, subject to the rights, if any, under this Article Sixteen of the
holders of Senior Debt in respect of cash, property or securities of the Company
received upon the exercise of any such remedy.

          Upon any payment or distribution of assets of the Company referred to
in this Article Sixteen, the Trustee, subject to the provisions of Article Six,
and the Holders of the Securities shall be entitled to rely upon any order or
decree made by any court of competent jurisdiction in which such liquidation,
dissolution, winding up, receivership, reorganization, assignment or marshaling
proceedings are pending, or a certificate of the receiver, trustee in
bankruptcy, liquidating trustee, agent or other person making such payment or
distribution, delivered to the Trustee or to the Holders of the Securities, for
the purpose of ascertaining the Persons entitled to participate in such
distribution, the holders of the Senior Debt and other indebtedness of the
Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article
Sixteen.

SECTION 1605. Authorization by Holders.

          Each Holder of a Security by his acceptance thereof authorizes and
directs the Trustee in his behalf to take such action as may be necessary or
appropriate to effectuate the subordination provided in this Article Sixteen and
appoints the Trustee his attorney-in-fact for any and all such purposes.

SECTION 1606. Notice to Trustee.

          The Company shall give prompt written notice to the Trustee and to any
Paying Agent of any fact known to the Company which would prohibit the making of
any payment of moneys to or by the Trustee or any Paying Agent in respect of the
Securities pursuant to the provisions of this Article Sixteen.  Regardless of
anything to the contrary contained in this Article Sixteen or elsewhere in this
Indenture, the Trustee shall not be charged with knowledge of the existence of
any Senior Debt or of any default or event of default with respect to any Senior
Debt or of any other facts which would prohibit the making of any payment of
moneys to or by the Trustee, unless and until the Trustee shall have received
notice in writing at its principal Corporate Trust Office to that effect signed
by an officer of the Company, or by a holder or agent of a holder of Senior Debt
who shall have been certified by the Company or otherwise established to the
reasonable satisfaction of the Trustee to be such holder or agent, or by the
trustee under any indenture pursuant to which Senior Debt shall be outstanding,
and, prior to the receipt of any such written notice, the Trustee shall, subject
to the provisions of Article Six, be entitled to assume that no such facts
exist; provided, however, that if on a date at least three Business Days prior
to the date upon which by the terms hereof any such moneys shall become payable
for any purpose (including, without limitation, the payment of the principal of,
or interest on any Security) the Trustee shall not have received with respect to
such moneys the notice provided for in this Section 1606, then, regardless of
anything herein to the contrary, the Trustee shall have full power and authority
to receive such moneys and to apply the same to the

                                       73
<PAGE>

purpose for which they were received, and shall not be affected by any notice to
the contrary which may be received by it on or after such prior date.

          The Trustee shall be entitled to conclusively rely on the delivery to
it of a written notice by a Person representing himself to be a holder of Senior
Debt (or a trustee on behalf of such holder) to establish that such notice has
been given by a holder of Senior Debt or a trustee on behalf of any such holder.
In the event that the Trustee determines in good faith that further evidence is
required with respect to the right of any Person as a holder of Senior Debt to
participate in any payment or distribution pursuant to this Article Sixteen, the
Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of Senior Debt held by such Person,
the extent to which such Person is entitled to participate in such payment or
distribution and any other facts pertinent to the rights of such Person under
this Article Sixteen, and if such evidence is not furnished the Trustee may
defer any payment to such Person pending judicial determination as to the right
of such Person to receive such payment.

SECTION 1607. Trustee's Relation to Senior Debt.

          The Trustee and any agent of the Company or the Trustee shall be
entitled to all the rights set forth in this Article Sixteen with respect to any
Senior Debt which may at any time be held by it in its individual or any other
capacity to the same extent as any other holder of Senior Debt and nothing in
this Indenture shall deprive the Trustee or any such agent, of any of its rights
as such holder.  Nothing in this Article Sixteen shall apply to claims of, or
payments to, the Trustee under or pursuant to Article Six.

          With respect to the holders of Senior Debt, the Trustee undertakes to
perform or to observe only such of its covenants and obligations as are
specifically set forth in this Article Sixteen, and no implied covenants or
obligations with respect to the holders of Senior Debt shall be read into this
Indenture against the Trustee.  The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Debt and, subject to the provisions of
Article Six, the Trustee shall not be liable to any holder of Senior Debt if it
shall pay over or deliver to Holders of Securities, the Company or any other
person moneys or assets to which any holder of Senior Debt shall be entitled by
virtue of this Article Sixteen or otherwise.

SECTION 1608. No Impairment to Subordination.

          No right of any present or future holder of any Senior Debt to enforce
subordination as herein provided shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of the Company or by any act
or failure to act, in good faith, by any such holder, or by any noncompliance by
the Company with the terms, provisions and covenants of this Indenture,
regardless of any knowledge thereof which any such holder may have or otherwise
be charged with.

          Without in any way limiting the generality of the foregoing paragraph,
the holders of Senior Debt may, at any time and from time to time, without the
consent of or notice to the Trustee or the Holders, without incurring
responsibility to the Holders and without impairing or releasing the
subordination provided in this Article Sixteen or the obligations hereunder of
the

                                       74
<PAGE>

Holders of the Securities to the holders of such Senior Debt, do any one or more
of the following: (i) change the manner, place or terms of payment or extend the
time of payment of, or renew or alter, such Senior Debt, or otherwise amend or
supplement in any manner such Senior Debt or any instrument evidencing the same
or any agreement under which such Senior Debt is outstanding; (ii) sell,
exchange, release or otherwise deal with any property pledged, mortgaged or
otherwise securing such Senior Debt; (iii) release any Person liable in any
manner for the collection of such Senior Debt; and (iv) exercise or refrain from
exercising any rights against the Company, as the case may be, and any other
Person.

SECTION 1609. Article Applicable to Paying Agents.

          In case at any time any Paying Agent other than the Trustee shall have
been appointed by the Company and be then acting hereunder, the term "Trustee"
as used in this Article Sixteen shall in such case (unless the context otherwise
requires) be construed as extending to and including such Paying Agent within
its meaning as fully for all intents and purposes as if such Paying Agent were
named in this Article Sixteen in addition to or in place of the Trustee.

SECTION 1610. Trust Moneys Not Subordinated.

          Notwithstanding anything contained herein to the contrary, payments
from money or the proceeds of U.S. Government Obligations held in trust under
Section 402 of this Indenture by the Trustee for the payment of principal of and
interest on the Securities shall not be subordinated to the prior payment of any
Senior Debt or subject to the restrictions set forth in this Article Sixteen,
and none of the Holders shall be obligated to pay over any such amount to the
Company or any holder of Senior Debt or any other creditor of the Company.

          Bank One, N.A., a national banking association duly organized and
existing under the laws of the United States of America, as Trustee, hereby
accepts the trust in this Indenture declared and provided, upon the terms and
conditions herein above set forth.

                                       75
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed, and their respective corporate seals to be hereunto affixed
and attested, all as of the day and year first above written.

                                    CLECO CORPORATION

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

Attest:

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

(SEAL)

                                    BANK ONE, N.A., as Trustee

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

(SEAL)

                                       76<PAGE>

                                                                    EXHIBIT 10.1
================================================================================

                                CREDIT AGREEMENT

                         dated as of February 28, 2000

                                  by and among

                            LUFKIN INDUSTRIES, INC.,
                                as the Borrower,

                     BANK OF AMERICA, NATIONAL ASSOCIATION,
                                 as the Agent,

                                      and

                            THE LENDERS NAMED HEREIN

                     $20,000,000 REVOLVING LOAN A FACILITY

                      $5,000,000 REVOLVING LOAN B FACILITY

================================================================================
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                   Page
                                                                                   ----
<S>              <C>                                                               <C>
ARTICLE 1 - Definitions...........................................................    1
 Section 1.1     Definitions......................................................    1
 Section 1.2     Other Definitional Provisions....................................   18
 Section 1.3     Accounting Terms and Determinations..............................   19
 Section 1.4     Financial Covenants and Reporting................................   19

ARTICLE 2 - Loans.................................................................   20
 Section 2.1     Commitments......................................................   20
 Section 2.2     Notes............................................................   21
 Section 2.3     Repayment of Loans...............................................   21
 Section 2.4     Interest.........................................................   22
 Section 2.5     Borrowing Procedure..............................................   23
 Section 2.6     Optional Prepayments, Conversions, and Continuations of Loans....   23
 Section 2.7     Mandatory Prepayments............................................   23
 Section 2.8     Minimum Amounts..................................................   23
 Section 2.9     Certain Notices..................................................   24
 Section 2.10    Use of Proceeds..................................................   25
 Section 2.11    Fees.............................................................   25
 Section 2.12    Computations.....................................................   26
 Section 2.13    Termination or Reduction of Commitments..........................   26
 Section 2.14    Letters of Credit................................................   26

ARTICLE 3 - Payments..............................................................   30
 Section 3.1     Method of Payment and Application of Payments....................   30
 Section 3.2     Pro Rata Treatment...............................................   31
 Section 3.3     Sharing of Payments, Etc.........................................   31
 Section 3.4     Non-receipt of Funds by the Agent................................   32
 Section 3.5     Taxes............................................................   32
 Section 3.6     Withholding Tax Exemption........................................   33
 Section 3.7     Reinstatement of Obligations.....................................   34
 Section 3.8     No Force Majeure, Disputes.......................................   34
 Section 3.9     Participation Obligations Absolute; Failure to Fund Participation   35

ARTICLE 4 - Yield Protection and Illegality.......................................   35
 Section 4.1     Additional Costs.................................................   35
 Section 4.2     Limitation on Types of Loans.....................................   37
 Section 4.3     Illegality.......................................................   37
 Section 4.4     Treatment of Affected Loans......................................   37
 Section 4.5     Compensation.....................................................   38
 Section 4.6     Capital Adequacy.................................................   38
 Section 4.7     Replacement of Lenders...........................................   39
</TABLE>

                                       i
<PAGE>

<TABLE>
<CAPTION>
<S>              <C>                                                               <C>
ARTICLE 5 - Conditions Precedent..................................................   39
 Section 5.1     Initial Extension of Credit......................................   39
 Section 5.2     All Extensions of Credit.........................................   42
 Section 5.3     Closing Certificates.............................................   42

ARTICLE 6 - Representations and Warranties........................................   42
 Section 6.1     Existence........................................................   42
 Section 6.2     Financial Statements.............................................   43
 Section 6.3     Corporate Action; No Breach......................................   43
 Section 6.4     Operation of Business; Licenses..................................   43
 Section 6.5     Intellectual Property............................................   44
 Section 6.6     Litigation and Judgments.........................................   44
 Section 6.7     Rights in Properties; Liens......................................   44
 Section 6.8     Enforceability...................................................   44
 Section 6.9     Approvals........................................................   44
 Section 6.10    Debt.............................................................   45
 Section 6.11    Taxes............................................................   45
 Section 6.12    Margin Securities................................................   45
 Section 6.13    ERISA............................................................   45
 Section 6.14    Disclosure.......................................................   46
 Section 6.15    Subsidiaries; Capitalization.....................................   46
 Section 6.16    Compliance With Laws.............................................   46
 Section 6.17    Investment Company Act...........................................   46
 Section 6.18    Public Utility Holding Company Act...............................   46
 Section 6.19    Environmental Matters............................................   46
 Section 6.20    Year 2000 Compliance.............................................   48
 Section 6.21    Labor Disputes and Acts of God...................................   48
 Section 6.22    Outstanding Securities...........................................   48
 Section 6.23    Solvency.........................................................   48
 Section 6.24    Employee Matters.................................................   49
 Section 6.25    Insurance........................................................   49
 Section 6.26    Principal Place of Business......................................   49
 Section 6.27    Burdensome Agreements............................................   49
 Section 6.28    Survival of Representations and Warranties, Etc..................   49

ARTICLE 7 - Affirmative Covenants.................................................   49
 Section 7.1     Reporting Requirements...........................................   50
 Section 7.2     Maintenance of Existence; Conduct of Business....................   52
 Section 7.3     Maintenance of Properties and Licenses...........................   52
 Section 7.4     Taxes and Claims.................................................   53
 Section 7.5     Insurance........................................................   53
 Section 7.6     Inspection Rights................................................   54
 Section 7.7     Keeping Books and Records........................................   54
</TABLE>

                                       ii
<PAGE>

<TABLE>
<CAPTION>
<S>              <C>                                                               <C>
 Section 7.8     Compliance With Laws.............................................   54
 Section 7.9     Compliance With Agreements.......................................   54
 Section 7.10    Further Assurances...............................................   54
 Section 7.11    ERISA............................................................   55
 Section 7.12    Non-Consolidation................................................   55
 Section 7.13    Year 2000 Compliance.............................................   55
 Section 7.14    Delivery of Certain Amendments and Funded Debt Documents.........   55

ARTICLE 8 - Negative Covenants....................................................   55
 Section 8.1     Debt.............................................................   55
 Section 8.2     Limitation on Liens..............................................   56
 Section 8.3     Mergers, Etc.....................................................   56
 Section 8.4     Restricted Payments..............................................   56
 Section 8.5     Limitation on Issuance of Capital Stock..........................   57
 Section 8.6     Transactions with Affiliates.....................................   57
 Section 8.7     Sale and Leaseback...............................................   57
 Section 8.8     Lines of Business................................................   57
 Section 8.9     Environmental Protection.........................................   57
 Section 8.10    Intercompany Transactions........................................   58
 Section 8.11    ERISA............................................................   58
 Section 8.12    Disposition of Assets............................................   58

ARTICLE 9 - Financial Covenants...................................................   58
 Section 9.1     Minimum Tangible Net Worth.......................................   58
 Section 9.2     Leverage Ratio...................................................   59
 Section 9.3     Interest Coverage................................................   59
 Section 9.4     Net Income.......................................................   59

ARTICLE 10 - Default..............................................................   59
 Section 10.1    Events of Default................................................   59
 Section 10.2    Remedies.........................................................   61
 Section 10.3    Performance by the Agent, Etc....................................   62

ARTICLE 11 - The Agent............................................................   62
 Section 11.1    Appointment, Powers, and Immunities..............................   62
 Section 11.2    Rights of Agent as a Lender......................................   64
 Section 11.3    Defaults.........................................................   64
 Section 11.4    Indemnification..................................................   64
 Section 11.5    Independent Credit Decisions.....................................   65
 Section 11.6    Several Commitments..............................................   65
 Section 11.7    Successor Agent..................................................   66

ARTICLE 12 - Miscellaneous........................................................   66
 Section 12.1    Expenses.........................................................   66
</TABLE>

                                      iii
<PAGE>

<TABLE>
<CAPTION>
<S>              <C>                                                               <C>
 Section 12.2    Indemnification..................................................   67
 Section 12.3    Limitation of Liability..........................................   68
 Section 12.4    No Duty..........................................................   68
 Section 12.5    No Fiduciary Relationship........................................   68
 Section 12.6    Equitable Relief.................................................   68
 Section 12.7    No Waiver; Cumulative Remedies...................................   68
 Section 12.8    Successors and Assigns...........................................   69
 Section 12.9    Survival.........................................................   72
 Section 12.10   Entire Agreement.................................................   72
 Section 12.11   Amendments.......................................................   72
 Section 12.12   Maximum Interest Rate............................................   73
 Section 12.13   Notices..........................................................   73
 Section 12.14   Governing Law; Venue; Service of Process.........................   74
 Section 12.15   Waiver of Jury Trial.............................................   75
 Section 12.16   Counterparts.....................................................   75
 Section 12.17   Severability.....................................................   75
 Section 12.18   Headings.........................................................   75
 Section 12.19   Construction.....................................................   75
 Section 12.20   Independence of Covenants........................................   75
 Section 12.21   Approvals and Consent............................................   75
</TABLE>

                                       iv
<PAGE>

                                   EXHIBITS

Exhibit A   - Form of Assignment and Acceptance
Exhibit B-1 - Form of Revolving Note A
Exhibit B-2 - Form of Revolving Note B
Exhibit C   - Form of Notice of Borrowing
Exhibit D   - Form of Compliance Certificate

                                   SCHEDULES

Schedule 1.1  - Permitted Liens
Schedule 6.6  - Litigation and Judgments
Schedule 6.10 - Existing Debt
Schedule 6.13 - ERISA Matters
Schedule 6.15 - Subsidiaries; Capitalization
Schedule 6.25 - Employee Matters
Schedule 6.26 - Insurance

                                       v
<PAGE>

                               CREDIT AGREEMENT

     THIS CREDIT AGREEMENT, dated as of February 28, 2000, is by and among
LUFKIN INDUSTRIES, INC., a Texas corporation (the "Borrower"), each of the
lending entities which is a party hereto (as evidenced by the signature pages of
this Agreement) or which may from time to time become a party hereto as a lender
or any successor thereof or assignee thereof pursuant to Section 12.8
(individually, a "Lender" and, collectively, the "Lenders"), and BANK OF
AMERICA, NATIONAL ASSOCIATION, a national banking association, as agent for the
Lenders (in such capacity, together with its successors in such capacity, the
"Agent").

                                 RECITALS:

     A.  The Borrower desires to obtain revolving loan facilities to finance
certain of its general corporate expenses and provide working capital in the
ordinary course of the Borrower's business.

     B.  The Lenders desire to provide such loan facilities with the assistance
of the Agent upon and subject to the terms and provisions contained in this
Agreement.

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

                                   ARTICLE 1

                                  Definitions

     Section 1.1  Definitions.  As used in this Agreement, the following terms
shall have the following meanings:

     "Additional Costs" has the meaning specified in Section 4.1(a).

     "Adjusted Federal Funds Rate" means, for any Fed Funds Rate Loan, the rate
per annum (rounded upwards, if necessary, to the nearest 1/16 of one percent
(1.00%)) determined by the Agent to be equal to the quotient obtained by
dividing (a) the Federal Funds Rate for such Fed Funds Rate Loan by (b) one (1)
minus the Reserve Requirement for such Fed Funds Rate Loan.

     "Adjusted Libor Rate" means, for any Libor Rate Loan for any Interest
Period therefor, the rate per annum (rounded upwards, if necessary, to the
nearest 1/16 of one percent (1.00%)) determined by the Agent to be equal to the
quotient obtained by dividing (a) the Libor Rate for such Libor Rate Loan for
such Interest Period by (b) one (1) minus the Reserve Requirement for such Libor
Rate Loan for such Interest Period.

     "Adjusted Net Income" means, as to any Person (the "subject Person") and
its Consolidated Subsidiaries and for any period, Net Income less the following
(without duplication)

                                       1
<PAGE>

to the extent that any of the following shall have been included in Net Income
for such period: (a) any net gain (or plus any loss) arising from the sale of
any property, plant, or equipment; (b) any net gain (or plus any loss) arising
from any write-up or write-down of assets; excluding, however, the effect of any
adjustment to the LIFO Reserve; (c) earnings or losses of any other Person,
substantially all of the assets of which have been acquired by the subject
Person or a Consolidated Subsidiary of the subject Person in any manner, to the
extent that such earnings or losses were realized by such other Person prior to
the date of such acquisition; (d) earnings or losses of any Person (other than a
Consolidated Subsidiary of the subject Person) in which the subject Person or a
Consolidated Subsidiary of the subject Person has an ownership interest, unless
such earnings have actually been received by the subject Person or such
Consolidated Subsidiary in the form of cash distributions; and (e) any net gain
or loss arising from the acquisition of any securities of the subject Person or
a Consolidated Subsidiary of the subject Person.

     "Affiliate" means, as to any Person (the "subject Person"), any other
Person (a) that directly or indirectly, through one or more intermediaries,
controls or is controlled by, or is under direct or indirect common control
with, the subject Person, (b) that directly or indirectly beneficially owns or
holds ten percent (10.0%) or more of any class of Capital Stock of the subject
Person, or (c) ten percent (10.0%) or more of the Capital Stock of which is
directly or indirectly beneficially owned or held by the subject Person.  For
the purposes of this definition, "control" when used with respect to any Person
means the possession, directly or indirectly, of the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of Capital Stock, by contract or otherwise; and the terms
"controlling" and "controlled" have meanings correlative to the foregoing.  For
purposes of the Loan Documents, neither the Agent, the Issuing Bank, nor any
Lender shall be deemed to be an Affiliate of the Borrower or any Affiliate of
the Borrower.

     "Agent" has the meaning specified in the introductory paragraph of this
Agreement.

     "Aggregate Commitments" means, as to all Lenders, the Revolving Loans A
Commitments and the Revolving Loans B Commitments.

     "Agreement" means this Credit Agreement and any and all amendments,
restatements, or other modifications hereto.

     "Applicable Lending Office" means, for each Lender and each Type of Loan,
the lending office of such Lender (or an Affiliate of such Lender) designated
for such Type of Loan below its name on the signature pages hereof (or, with
respect to a Lender that becomes a party to this Agreement pursuant to an
assignment made in accordance with Section 12.8, in the Assignment and
Acceptance executed by it) or such other office of such Lender (or an Affiliate
of such Lender) as such Lender may from time to time specify to the Borrower and
the Agent by written notice in accordance with the terms hereof as the office by
which such Lender's Loans of such Type are to be made and maintained.

                                       2
<PAGE>

     "Applicable Margin" means (a) with respect to the Revolving Loans A, as of
the Closing Date, one and one-half percent (1.50%) per annum with respect to
Libor Rate Loans and zero percent (0.00%) per annum with respect to Prime Rate
Loans, subject to adjustment in the case of Libor Rate Loans from time to time
as set forth in the next succeeding sentence to the percentage specified
corresponding to the Debt Ratio as set forth in the table below, respectively,
and (b) with respect to the Revolving Loans B, as of the Closing Date and
thereafter, one percent (1.00%) per annum with respect to Fed Funds Rate Loans
and zero percent (0.00%) per annum with respect to Prime Rate Loans.

<TABLE>
<CAPTION>
                                                             Applicable Margin on
                     Debt Ratio                                Libor Rate Loans
--------------------------------------------------------------------------------------
<S>                                                     <C>
Greater than 3.00 to 1.00                                                         1.75%
--------------------------------------------------------------------------------------
Less than or equal to 3.00 to 1.00 but greater than                               1.50%
 2.00 to 1.00
--------------------------------------------------------------------------------------
Less than or equal to 2.00 to 1.00 but greater than                               1.25%
 1.00 to 1.00
--------------------------------------------------------------------------------------
Less than or equal to 1.00 to 1.00                                                1.00%
--------------------------------------------------------------------------------------
</TABLE>

For the purpose of determining the Applicable Margin, the Debt Ratio shall be
determined based upon the Borrower's financial statements for each respective
fiscal quarter end, commencing with the fiscal quarter ending December 31, 1999,
delivered to the Agent as required by Section 7.l(a) (with respect to the
Borrower's fiscal quarter ending December 31 of each year) and Section 7.1(b)
(with respect to the Borrower's fiscal quarters ending March 31, June 30, and
September 30 of each fiscal year), and any resulting change, if any, in the
Applicable Margin shall become effective on the first day of the calendar month
following the calendar month in which such financial statements and the required
Compliance Certificate are delivered to the Agent, and, with respect to any
Libor Loans outstanding on the effective date of such change, on the date any
Libor Rate Loan is made, Continued, or Converted, as the case may be.

     "Asset Disposition" means, with respect to any Person, the disposition,
whether a sale (including, without limitation, any sale/lease-back arrangement),
lease, assignment, transfer, or other voluntary disposition of any asset of such
Person (including, without limitation, the sale or other disposition of any
Capital Stock of any Subsidiary of such Person but excludes any such transaction
among any of the Related Parties) other than (a) sales of inventory in the
ordinary course of business, (b) sales of equipment that is obsolete or no
longer useful in the business of such Person, (c) dispositions of equipment if
and to the extent that the equipment disposed of is, concurrently therewith,
exchanged or replaced by equipment of equal or greater value, and (d) any
involuntary disposition resulting from casualty damage to Property.

     "Assignee" has the meaning specified in Section 12.8(b).

                                       3
<PAGE>

     "Assigning Lender" has the meaning specified in Section 12.8(b).

     "Assignment and Acceptance" means an assignment and acceptance entered into
by a Lender and its Assignee, in substantially the form of Exhibit A.

     "Bank of America" means Bank of America, National Association, and its
successors and assigns (other than Assignees pursuant to Section 12.8), acting
in its individual capacity; provided that, when used in any context with respect
to the Revolving Loans B, "Bank of America" means Bank of America, National
Association, and its successors and assigns (including, without limitation, any
such assigns pursuant to Section 12.8(h).

     "Bankruptcy Code" has the meaning specified in Section 10.1(e).

     "Board of Directors" means (a) with respect to any Person which is a
corporation, the board of directors of such Person and (b) with respect to any
Person which is not a corporation, an analogous body, officer or representative
of such Person which is the functional equivalent of the board of directors of a
corporation and which has the power and authority to authorize and effectuate
the execution, delivery, and performance of agreements, documents, and
instruments on behalf of such Person and to take other actions to on behalf of
such Person.

     "Borrower" has the meaning specified in the introductory paragraph of this
Agreement.

     "Business Day" means (a) any day excluding Saturday, Sunday, and any day
which either is a legal holiday under the laws of the State of Texas or the
State of North Carolina or is a day on which banking institutions located in
Texas or North Carolina are closed, and (b) with respect to all borrowings,
payments, Conversions, Continuations, Interest Periods, and notices in
connection with Libor Rate Loans, any day which is a Business Day described in
clause (a) preceding and which is also a day on which dealings in Dollar
deposits are carried out in the London interbank market.

     "Capital Expenditures" means, for any period, all expenditures of the
Borrower and its Consolidated Subsidiaries which are classified as capital
expenditures in accordance with GAAP, including, without limitation, the
aggregate amount of all such expenditures incurred during such period which
constitute Capital Lease Obligations.

     "Capital Lease" means any lease of property which, in accordance with GAAP,
should be reflected as a capital lease on a balance sheet.

     "Capital Lease Obligations" means, as to any Person, the obligations of
such Person to pay rent or other amounts under a lease of (or other agreement
conveying the right to use) real and/or personal Property, which obligations are
or would be classified as a capital lease on a balance sheet of such Person
under GAAP.  For purposes of this Agreement, the amount of such Capital Lease
Obligations shall be the capitalized amount thereof, determined in accordance
with GAAP.

                                       4
<PAGE>

     "Capital Stock" means corporate stock and any and all securities, shares,
partnership interests (whether general, limited, special, or other partnership
interests), limited liability company interests, membership interests, equity
interests, participations, rights, or other equivalents (however designated) of
corporate stock or any of the foregoing issued by any entity (whether a
corporation, a partnership, a limited liability company, or another entity) and
includes, without limitation, securities convertible into Capital Stock and
rights, warrants, or options to acquire Capital Stock.

     "Change in Control" means the occurrence of any event where any Person, or
two or more Persons acting as a group (as defined in Section 13d-3 of the
Exchange Act), shall have acquired beneficial ownership (within the meaning of
Rule 13d-3 of the Securities and Exchange Commission under the Exchange Act) of
fifty-one percent (51.0%) or more of the outstanding shares of Voting Stock of
the Borrower.

     "Closing Date" means February 28, 2000, the date of this Agreement.

     "Code" means the Internal Revenue Code of 1986, as amended, and the
regulations promulgated and rulings issued thereunder.

     "Commitment" means, as to any Lender other than Bank of America, such
Lender's Revolving Loans A Commitment, and means, as to Bank of America, Bank of
America's Revolving Loans A Commitment or Revolving Loans B Commitment (as
applicable based upon the context in which such term is used), and "Commitments"
means, as to any one or more of the Lenders, such Lender's or Lenders' (as
applicable based upon the context in which such term is used) Revolving Loans A
Commitment(s) and Revolving Loans B Commitment, collectively.

     "Commitment Percentage" means, as to any Lender and as to the Revolving
Loans A Commitments, the Revolving Loans B Commitment, or the Aggregate
Commitments (as applicable based upon the context in which such term is used),
the percentage equivalent of a fraction, the numerator of which is the amount of
the outstanding Revolving Loans A Commitment, Revolving Loans B Commitment, or
Aggregate Commitments (as applicable) of such Lender (or if such applicable
Commitment has terminated or expired, the outstanding principal amount of the
Revolving Loans A plus the Letter of Credit Liabilities, the Revolving Loans B,
or the Loans plus the Letter of Credit Liabilities, respectively, of such
Lender) and the denominator of which is the aggregate amount of the outstanding
Revolving Loans A Commitments, Revolving Loans B Commitment, or Aggregate
Commitments (as applicable) of all Lenders (or if such applicable Commitments
have terminated or expired, the aggregate outstanding principal amount of the
Revolving Loans A plus the Letter of Credit Liabilities, the Revolving Loans B,
or the Loans plus the Letter of Credit Liabilities, respectively, of all
Lenders), as adjusted from time to time in accordance with Section 12.8.

     "Compliance Certificate" has the meaning specified in Section 7.1(c).

                                       5
<PAGE>

     "Consolidated Subsidiary" means, with respect to any Person, any Subsidiary
of such Person the financial attributes of which are or would be consolidated
with those of such Person in the consolidated financial statements of such
Person in accordance with GAAP.

     "Continue", "Continuation", and "Continued" shall refer to the continuation
pursuant to Section 2.6 of a Libor Rate Loan as a Libor Rate Loan from one
Interest Period to the next Interest Period.

     "Contract Rate" has the meaning specified in Section 12.12(a).

     "Convert", "Conversion" and "Converted" shall refer to a conversion
pursuant to Section 2.6 or Article 4 of one Type of Loan into the other Type of
Loan.

     "Current Date" means (a) a date occurring no more than thirty (30) days
prior to the Closing Date or other relevant date as may be specified herein (as
applicable) or (b) such earlier date which is acceptable to the Agent.

     "Debt" means as to any Person at any time (without duplication): (a) all
indebtedness, liabilities, and obligations of such Person for borrowed money;
(b) all indebtedness, liabilities, and obligations of such Person evidenced by
bonds, notes, debentures, or other similar instruments; (c) all Capital Lease
Obligations of such Person; (d) all indebtedness, liabilities, and obligations
of such Person to pay the deferred purchase price of Property or services,
except trade accounts payable of such Person arising in the ordinary course of
business that are not past due by more than ninety (90) days; (e) all Debt of
others Guaranteed by such Person; (f) all indebtedness, liabilities, and
obligations secured by a Lien (other than a Lien of the type specified in any of
clause (c), (d), (e), (f), or (g) of the definition of Permitted Liens) existing
on Property owned by such Person, whether or not the indebtedness, liabilities,
or obligations secured thereby have been assumed by such Person or are non-
recourse to such Person; (g) all reimbursement obligations of such Person
(whether contingent or otherwise) in respect of letters of credit, bankers'
acceptances, surety or other bonds, and similar instruments; (h) all
indebtedness, liabilities, and obligations of such Person to redeem or retire
shares of Capital Stock of such Person; provided that the holder(s) of such
shares of Capital Stock shall currently hold the right to redeem or retire such
shares of Capital Stock in cash; (i) all indebtedness, liabilities, and
obligations of such Person under Interest Rate Protection Agreements; and (j)
all indebtedness, liabilities, and obligations of such Person in respect of
unfunded vested benefits under any pension plans, including, without limitation
of the Borrower under any Pension Plan.

     "Debt Ratio" means, as of any period end and determined on a consolidated
basis for the Borrower and its Subsidiaries, the ratio of (a) Funded Debt to (b)
EBITDA for the preceding four fiscal quarters; provided that for the fiscal
quarters ending December 31, 1999, March 31, 2000, and June 30, 2000, such
calculation shall be annualized for the number of months elapsed since
September 30, 1999.

                                       6
<PAGE>

     "Default" means an event or condition which with notice or lapse of time or
both would become an Event of Default.

     "Default Rate" means, in respect of any principal of any Loan or
Reimbursement Obligation, or any other amount payable by the Borrower under any
Loan Document, a rate per annum equal to the lesser of (a) the sum of two
percent (2.00%) plus the Prime Rate as in effect from time to time plus the
Applicable Margin for Prime Rate Loans or (b) the Maximum Rate; provided,
however, that if such amount in default is principal of a Libor Rate Loan and
the due date is a day other than the last day of an Interest Period therefor,
the "Default Rate" for such principal shall be, for the period from and
including the due date and to but excluding the last day of the Interest Period
therefor, the lesser of the rate per annum equal to (i) the sum of two percent
(2.00%) plus the interest rate for such Libor Rate Loan for such Interest Period
as provided in clause (ii) of Section 2.4(a) hereof or (ii) the Maximum Rate
and, thereafter, the rate provided for above in this definition.

     "Dollars" and "$" mean lawful money of the U.S.

     "EBITDA" means, as to any Person and its Consolidated Subsidiaries and for
any period, without duplication, the sum of the following for such Persons for
such period determined on a consolidated basis in accordance with GAAP without
taking into effect any change or other adjustment to the amount of the LIFO
Reserve: (a) Adjusted Net Income, plus (b) Interest Expense, plus (c) income and
franchise taxes to the extent deducted in determining Adjusted Net Income, plus
(d) depreciation and amortization expense to the extent deducted in determining
Adjusted Net Income.

     "Eligible Assignee" means (a) a Lender, (b) an Affiliate of a Lender or,
with respect to any Lender that is a fund that invests in bank loans, any other
fund that invests in bank loans and is managed by the same investment advisor as
such Lender (herein a "Related Fund"), and (c) any other Person approved by the
Agent and, unless an Event of Default has occurred and is continuing at the time
any assignment is effected in accordance with Section 12.8, the Borrower, such
approval not to be unreasonably withheld, conditioned, or delayed by the
Borrower and such approval to be deemed given by the Borrower if no objection is
received by the assigning Lender and the Agent from the Borrower within thirty
(30) Business Days after notice of such proposed assignment has been provided by
the assigning Lender to the Agent and the Borrower; provided, however, that no
Affiliate of the Borrower shall qualify as an Eligible Assignee).

     "Environmental Law" means any federal, state, provincial, local, or foreign
law, statute, code, or ordinance, principle of common law, rule, or regulation,
as well as any License, order, decree, judgment, or injunction issued,
promulgated, approved, or entered thereunder, relating to pollution or the
protection, cleanup, or restoration of the environment or natural resources, or
to the public health or safety, or otherwise governing the generation, use,
handling, collection, treatment, storage, transportation, recovery, recycling,
discharge, or disposal of Hazardous Materials, including, without limitation as
to U.S. laws, the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, 42 U.S.C. *(S)9601 et seq., the Superfund Amendment and
Reauthorization Act of 1986, 99-499, 100 Stat. 1613, the Resource Conservation
and Recovery Act of 1976, 42 U. S. C. *(S)6901 et seq., the Occupational Safety
and Health Act, 29 U S.C. *(S)651 et seq., the Clean Air Act,

                                       7
<PAGE>

42 U.S.C. *(S)7401 et seq., the Clean Water Act, 33 U. S. C. *(S)1251 et seq.,
the Emergency Planning and Community Right to Know Act, 42 U. S. C. *(S)11001
et seq., the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C.
*(S)136 et seq., and the Toxic Substances Control Act, 15 U.S.C. *(S)2601
et seq., and any state or local counterparts.

     "Environmental Liabilities" means, as to any Person, all liabilities,
obligations, responsibilities, Remedial Actions, losses, damages, punitive
damages, consequential damages, treble damages, costs and expenses (including,
without limitation, all reasonable fees, disbursements, and expenses of counsel,
expert and consulting fees, and costs of investigation and feasibility studies),
fines, penalties, sanctions, and interest incurred as a result of any claim or
demand, by any Person, whether based in contract, tort, implied or express
warranty, strict liability, or criminal, penal or civil statute, including,
without limitation, any Environmental Law, License, order, or agreement with any
Governmental Authority or other Person, arising from environmental, health, or
safety conditions or the Release or threatened Release of a Hazardous Material
into the environment.

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

     "ERISA Affiliate" means any corporation or trade or business which is a
member of a group of entities, organizations, or employers of which the Borrower
is also a member and which is treated as a single employer within the meaning of
Sections 414(b), (c), (m), or (o) of the Code.

     "Event of Default" has the meaning specified in Section 10.1.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended (or
any successor act), and the rules and regulations thereunder (or respective
successors thereto).

     "Fed Funds Rate Loans" means Loans made by Bank of America pursuant to
Section 2.1(b) that bear interest at rates based upon the Adjusted Federal Funds
Rate.

     "Federal Funds Rate" means, for any day, the rate per annum (rounded
upwards, if necessary, to the nearest one-sixteenth of one percent (1/16 of 1%))
equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published by the Federal Reserve Bank of New York
on the Business Day next succeeding such day; provided that (a) if the day for
which such rate is to be determined is not a Business Day, the Federal Funds
Rate for such day shall be such rate on such transactions on the next preceding
Business Day as so published on the next succeeding Business Day, and (b) if
such rate is not so published on such next succeeding Business Day, the Federal
Funds Rate for day shall be the average rate which would be charged to Bank of
America (in its individual capacity) on such day on such transactions as
determined by Bank of America.

     "Funded Debt" means Debt described in clauses (a) through (c) of the
definition of Debt; provided that Funded Debt shall not include the Debt
evidenced by the Wilson Notes, such Debt having been incurred by the Borrower in
connection with the acquisition of all of the issued and

                                       8
<PAGE>

outstanding common stock of Fannie Lee Mitchell of Texas, Inc. and being secured
by escrowed cash or cash equivalents with Chase Bank of Texas, N.A., as escrow
agent.

     "GAAP" means generally accepted accounting principles, as in effect from
time to time, applied on a consistent basis, as set forth in Opinions of the
Accounting Principles Board of the American Institute of Certified Public
Accountants and/or in statements of the Financial Accounting Standards Board
and/or their respective successors and which are applicable in the circumstances
as of the date in question.  Accounting principles are applied on a "consistent
basis" when the accounting principles applied in a current period are comparable
in all material respects to those accounting principles applied in a preceding
period (subject to changes in GAAP as determined from time to time by the
Accounting Principles Board of the American Institute of Certified Public
Accountants and/or the Financial Accounting Standards Board).

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

     "Governmental Requirement" means any law, statute, code, ordinance, order,
rule, regulation, judgment, decree, injunction, franchise, License, or other
directive or requirement of any Governmental Authority.

     "Guarantee" by any Person means any obligation, contingent or otherwise, of
such Person directly or indirectly guaranteeing any Debt or other obligation of
any other Person and, without limiting the generality of the foregoing, any
indebtedness, liability, or obligation, direct or indirect, contingent or
otherwise, of such Person (a) to purchase or pay (or advance or supply funds for
the purchase or payment of) such Debt or other obligation (whether arising by
virtue of partnership arrangements, by agreement to keep-well, to purchase
assets, goods, securities, or services, to take-or-pay or to maintain financial
statement conditions, or otherwise) or (b) entered into for the purpose of
assuring in any other manner the obligee of such Debt or other indebtedness,
liability, or obligation as to the payment thereof or to protect the obligee
against loss in respect thereof (in whole or in part), provided that the term
"Guarantee" shall not include endorsements for collection or deposit in the
ordinary course of business.  The term "Guarantee" used as a verb has a
corresponding meaning.  The amount of any Guarantee shall be deemed to be an
amount equal to the stated or determinable amount of the primary obligation in
respect of which such Guarantee is made or, if not stated or determinable, the
maximum anticipated liability in respect thereof (assuming such Person is
required to perform thereunder).

     "Hazardous Material" means any substance, product, liquid, waste,
pollutant, chemical, contaminant, insecticide, pesticide, gaseous or solid
matter, organic or inorganic matter, fuel, micro-organisms, ray, odor,
radiation, energy, vector, plasma, constituent, or material which (a) is or
becomes listed, regulated or addressed under any Environmental Law or (b) is, or
is deemed to be, alone or in any combination, hazardous, hazardous waste, toxic,
a pollutant, a deleterious substance, a contaminant, or a source of pollution or
contamination under any Environmental Law, including, without limitation,
asbestos, petroleum, underground storage tanks (whether empty or containing any
substance), and polychlorinated biphenyls.

                                       9
<PAGE>

     "Intellectual Property" means any U.S. or foreign patents, patent
applications, trademarks, trade names, service marks, brand names, logos and
other trade designations (including, without limitation, unregistered names and
marks), trademark and service mark registrations and applications, copyrights
and copyright registrations and applications, inventions, invention disclosures,
protected formulae, formulations, processes, methods, trade secrets, computer
software, computer programs and source codes, manufacturing research and similar
technical information, engineering know-how, customer and supplier information,
assembly and test data drawings, or royalty rights.

     "Interest Coverage Ratio" means, for any period, the ratio of the
Borrower's and its Consolidated Subsidiaries' (a) (i) Adjusted Net Income, plus
(ii) Interest Expense, plus (iii) income and franchise taxes to the extent
deducted in determining Adjusted Net Income to (b) Interest Expense; each such
component to be determined on a consolidated basis in accordance with GAAP;
provided that for the fiscal quarters ending March 31, 2000, June 30, 2000, and
September 30, 2000, such calculation shall be annualized for the number of
months elapsed since December 31, 1999, and thereafter shall be calculated as of
the end of each fiscal quarter for the preceding four (4) consecutive fiscal
quarters.

     "Interest Expense" means, as to any Person and its Consolidated
Subsidiaries and for any period, and without duplication, all interest on Debt
of such Persons determined in accordance with GAAP, including, without
limitation, the interest portion of payments in respect of Capital Lease
Obligations.

     "Interest Period" means, with respect to any Libor Rate Loan, each period
commencing on the date such Loan is made or Converted from a Prime Rate Loan or
(if Continued) the last day of the next preceding Interest Period with respect
to such Loan, and ending on the numerically corresponding day in the first,
second, third, or sixth calendar month thereafter, as the Borrower may select as
provided in Section 2.9, except that each such Interest Period which commences
on the last Business Day of a calendar month (or on any day for which there is
no numerically corresponding day in the appropriate subsequent calendar month)
shall end on the last Business Day of the appropriate subsequent calendar month.
Notwithstanding the foregoing: (a) each Interest Period which would otherwise
end on a day which is not a Business Day shall end on the next succeeding
Business Day (or, if such succeeding Business Day falls in the next succeeding
calendar month, on the next preceding Business Day); (b) any Interest Period
which would otherwise extend beyond the Maturity Date shall end on the Maturity
Date; (c) no more than six (6) Interest Periods for Libor Rate Loans shall be in
effect at the same time; and (d) no Interest Period shall have a duration of
less than one month and, if the Interest Period for any Libor Rate Loans would
otherwise be a shorter period, such Libor Rate Loans shall not be available
hereunder.

     "Interest Rate Protection Agreement" means, with respect to the Borrower,
an interest rate swap, cap, collar agreement, or other similar arrangement
between the Borrower and one or more counterparties providing for the transfer
or mitigation of interest rate risks either generally or under specified
contingencies.

                                       10
<PAGE>

     "Issuing Bank" means Bank of America or such other Lender which is a
commercial bank as the Borrower and Bank of America may mutually designate from
time to time which agrees to be the issuer of a Letter of Credit.

     "Lender" and "Lenders" have the meanings specified in the introductory
paragraph of this Agreement.

     "Letter of Credit" has the meaning specified in Section 2.14.

     "Letter or Credit Agreement" means, with respect to each Letter of Credit
to be issued by the Issuing Bank, the letter of credit application and
reimbursement agreement which such Issuing Bank requires to be executed by the
Borrower in connection with the issuance of such Letter of Credit.

     "Letter of Credit Liabilities" means, at any time, the sum of (a) the
aggregate undrawn face amount of all outstanding Letters of Credit, plus (b) all
unreimbursed drawings under Letters of Credit.

     "Leverage Ratio" means, as of any period end for the Borrower and its
Consolidated Subsidiaries determined according to GAAP, the ratio of (a) total
liabilities to (b) Tangible Net Worth.

     "Libor Rate" means, for any Libor Account for any Interest Period therefor,
the rate per annum (rounded upwards, if necessary, to the nearest 1/16 of one
percent (1.00%)) appearing on Telerate (formerly known as Dow Jones Markets)
Page 3750 (or any successor page) as the London interbank offered rate for
deposits in Dollars at approximately 11:00 a.m. (London time) two (2) Business
Days prior to the first day of such Interest Period for a term comparable to
such Interest Period.  If the Agent is unable to obtain any quotation as
provided above, the term "Libor Rate" shall mean, for any Libor Account for any
Interest Period therefor, the rate of interest per annum determined by Agent to
be the rate at which Dollar deposits in the approximate amount of the applicable
borrowing, Conversion, or Continuation of such Libor Account and having a
maturity comparable to such Interest Period would be offered by Bank of America
to major banks in the London interbank market at their request at approximately
11:00 a.m. (London time) two (2) Business Days prior to the commencement of such
Interest Period.

     "Libor Rate Loans" means Loans that bear interest at rates based upon the
Libor Rate or the Adjusted Libor Rate.

     "License" means any consent, permit, franchise, certificate, approval,
order, license, right-of-way (whether an easement, contract, or agreement in any
form), or other authorization.

     "Lien" means, with respect to any Property, any mortgage or deed of trust,
pledge, hypothecation, assignment, deposit arrangement, security interest, tax
lien, financing statement, pledge, charge, hypothecation, or other lien, charge,
easement (other than any easement not

                                       11
<PAGE>

materially impairing usefulness), encumbrance, or other security agreement or
preferential arrangement of any kind or nature whatsoever on or with respect to
such Property (including, without limitation, any conditional sale or other
title retention agreement having substantially the same economic effect as any
of the foregoing). Notwithstanding the foregoing, a negative pledge shall not
constitute a Lien.

     "LIFO Reserve" means, at any time, the cumulative reserve which appears on
the Borrower's consolidated financial statements resulting from adjustments to
state inventory at an amount determined on a last-in, first-out basis or at fair
market value, in accordance with GAAP.

     "Loan Documents" means this Agreement, the Notes, the Letter of Credit
Agreements, and all other agreements, documents, instruments, and certificates
now or hereafter executed and/or delivered pursuant to or in connection with any
of the foregoing (excluding any commitment letter, term sheet, or other
agreement entered into prior to the Closing Date), and any and all amendments,
restatements, or other modifications thereof.

     "Loans" means the Revolving Loans A and the Revolving Loans B, and "Loan"
means any of such Loans.

     "Material Adverse Effect" means any event, development, or circumstance
that has had or could reasonably be expected to have a material adverse effect
on (a) the business, assets, financial condition, results of operations, or
prospects of the Borrower individually or of the Borrower and its Subsidiaries
taken as a whole, (b) the validity or enforceability of any of the Loan
Documents or the rights and/or remedies of the Agent and/or the Lenders
thereunder, or (c) the ability of the Borrower to pay and perform its
indebtedness, liabilities, and/or obligations under any of the Loan Documents.

     "Maturity Date" means (a) with respect to the Revolving Loans A, September
1, 2002, and (b) with respect to the Revolving Loans B, the earlier to occur of
(i) September 1, 2002, or (ii) the date on which Bank of America makes demand
for payment in full of the outstanding balance of the Revolving Loans B.

     "Maximum Rate" means, at any time and with respect to any Lender, the
maximum non-usurious interest rate or an amount computed in reference to such
rate (as applicable), if any, that any time or from time to time may be
contracted for, taken, reserved, charged, or received with respect to the
particular Obligations as to which such rate is to be determined, payable to
such Lender pursuant to this Agreement or any other Loan Document, under laws
applicable to such Lender which are presently in effect or, to the extent
allowed by law, under such applicable laws which may hereafter be in effect and
which allow a higher maximum non-usurious interest rate than applicable laws now
allow.  The Maximum Rate shall be calculated in a manner that takes into account
any and all fees, payments and other charges in respect of the Loan Documents
that constitute interest under applicable law.  Each change in any interest rate
provided for herein based upon the Maximum Rate resulting from a change in the
Maximum Rate shall take effect without notice to the Borrower at the time of
such change in the Maximum Rate.  For purposes of determining the Maximum Rate
under

                                       12
<PAGE>

Texas law, the applicable rate ceiling shall be (a) the "weekly ceiling"
described in and computed in accordance with the provisions of Section 303.003
of the Texas Finance Code, as amended or (b) if the parties subsequently
contract as allowed by Texas law, the quarterly ceiling or the annualized
ceiling computed pursuant to Section 303.008 of the Texas Finance Code, as
amended; provided, however, that at any time the "weekly ceiling", the quarterly
ceiling or the annualized ceiling shall be less than 18% per annum or more than
24% per annum, the provisions of Section 303.009(a) and Section 303.009(b) of
the Texas Finance Code, as amended, shall control for purposes of such
determination, as applicable.

     "Monthly Date" means the first day of each calendar month, the first of
which shall be January 1, 2000.

     "Multiemployer Plan" means a multiemployer plan defined as such in
Section 3(37) of ERISA to which contributions have been made by or are required
from the Borrower or any ERISA Affiliate since 1974 and which is covered by
Title IV of ERISA.

     "Net Income" means, as to any Person and its Consolidated Subsidiaries and
for any period, the net income (or loss) of such Persons for such period,
determined on a consolidated basis in accordance with GAAP.

     "Notes" means the Revolving Notes A and the Revolving Note B, and "Note"
means any of such promissory notes.

     "Notice of Borrowing" has the meaning specified in Section 2.9.

     "Obligations" means any and all (a) indebtedness, liabilities, and
obligations of the Borrower to the Agent and the Lenders, or any of them,
evidenced by and/or arising pursuant to any of the Loan Documents (including,
without limitation, this Agreement and the Notes), now existing or hereafter
arising, whether direct, indirect, related, unrelated, fixed, contingent,
liquidated, unliquidated, joint, several, or joint and several, including,
without limitation, (i) the obligations of the Borrower to repay the Loans, the
Reimbursement Obligations, to pay interest on the Loans and the Reimbursement
Obligations (including, without limitation, interest accruing after any, if any,
bankruptcy, insolvency, reorganization, or other similar filing) and to pay all
fees, indemnities, costs, and expenses (including, without limitation,
reasonable attorneys' fees) provided for in the Loan Documents and (ii) the
indebtedness constituting the Loans and such interest, fees, indemnities, costs,
and expenses, and (b) indebtedness, liabilities, and obligations of the Borrower
under any and all Interest Rate Protection Agreements that it may enter into
with any Lender with the written consent of the Agent and the Required Lenders.

     "Payor" has the meaning specified in Section 3.4.

     "PBGC" means the Pension Benefit Guaranty Corporation or any entity
succeeding to all or any of its functions under ERISA.

                                       13
<PAGE>

     "Pension Plan" means an employee pension benefit plan as defined in
Section 3(2) of ERISA (including a Multiemployer Plan) which is subject to the
funding requirements under Section 302 of ERISA or Section 412 of the Code, in
whole or in part, and which is maintained or contributed to currently or at any
time within the six (6) years immediately preceding the Closing Date or, in the
case of a Multiemployer Plan, at any time since September 2, 1974, by the
Borrower or any ERISA Affiliate for employees of the Borrower or any ERISA
Affiliate.

     "Permitted Liens" mean:

          (a) Liens disclosed on Schedule 1.1;

          (b) Liens (if any) securing the Obligations in favor of the Agent (for
     the benefit of the Agent and the Lenders) pursuant to the Loan Documents;

          (c) encumbrances consisting of easements, rights-of-way, zoning
     restrictions, or other restrictions on the use of real Property or
     imperfections to title that do not (individually or in the aggregate)
     materially affect the value of the Property encumbered thereby or
     materially impair the ability of the owner thereof to use such Property in
     its business, and none of which is violated in any material respect by
     existing or proposed structures or land use;

          (d) Liens for taxes, assessments, or other governmental charges that
     are not delinquent or which are being contested in good faith by
     appropriate proceedings, which proceedings have the effect of preventing
     the forfeiture or sale of the Property subject to such Liens, and for which
     adequate reserves (as determined in accordance with GAAP) have been
     established;

          (e) Liens of mechanics, materialmen, warehousemen, carriers,
     landlords, or other similar statutory Liens securing obligations that are
     not yet due and are incurred in the ordinary course of business or which
     are being contested in good faith by appropriate proceedings, which
     proceedings have the effect of preventing the forfeiture or sale of the
     Property subject to such Liens, and for which adequate reserves (as
     determined in accordance with GAAP) have been established;

          (f) rights of set-off and similar rights of parties to which Debt is
     owed or to which other obligations otherwise permitted under this Agreement
     are outstanding;

          (g) Liens resulting from good faith deposits to secure payment of
     worker's compensation or other social security programs or to secure the
     performance of tenders, statutory obligations, surety and appeal bonds,
     bids, contracts (other than for payment of Debt), or leases, all in the
     ordinary course of business;

          (h) Liens for purchase money obligations and Liens for Capital Lease
     Obligations; provided that (i) the Debt secured by any such Lien is
     permitted under

                                       14
<PAGE>

     Section 8.1(e) and (ii) any such Lien encumbers only the Property so
     purchased or leased; and

          (i) any extension, renewal, or replacement of any of the foregoing
     Permitted Liens, provided that Liens permitted under this clause (i) shall
     not be extended or spread to cover any additional indebtedness or Property.

     "Person" means any individual, corporation, trust, association, company,
partnership, joint venture, limited liability company, joint stock company,
Governmental Authority, or other entity.

     "Plan" means any employee benefit plan as defined in Section 3(3) of ERISA
established or maintained or contributed to by the Borrower or any ERISA
Affiliate, including any Pension Plan.

     "Prime Rate" means, for any day, the per annum rate of interest established
from time to time by Bank of America as its prime rate or reference rate, which
rate may not be the lowest rate of interest charged by Bank of America to its
customers.  Any change in the Prime Rate shall be effective on the effective
date of such change.

     "Prime Rate Loans" means Loans that bear interest at rates based upon the
Prime Rate.

     "Principal Office" means the office of the Agent in Tyler, Texas, presently
located at 110 North College Avenue, Tyler, Texas 75702.

     "Prohibited Transaction" means any transaction set forth in Section 406 of
ERISA or Section 4975 of the Code.

     "Property" means property and/or assets of all kinds, whether real,
personal, or mixed, tangible or intangible (including, without limitation, all
rights relating thereto), whether owned or acquired on or after the Closing
Date.

     "Quarterly Date" means the first day of each March, June, September, and
December of each year, the first of which shall be March 1, 2000.

     "Register" has the meaning specified in Section 12.8(d).

     "Regulation D" means Regulation D of the Board of Governors of the Federal
Reserve System as the same may be amended, modified, or supplemented from time
to time or any successor regulation therefor.

     "Regulatory Change" means, with respect to any Lender, any change after the
Closing Date in any U.S. federal or state or foreign laws or regulations
(including, without limitation, Regulation D) or the adoption or making after
such date of any interpretations, directives, guidelines, or requests applying
to a class of lenders including such Lender of or under any U.S. federal or
state

                                       15
<PAGE>

or foreign laws or regulations (whether or not having the force of law) by any
Governmental Authority charged with the interpretation or administration
thereof.

     "Reimbursement Obligations" means all indebtedness, liabilities, and
obligations of the Borrower to reimburse the Agent or the Issuing Bank in
accordance with Section 2.14(e) for any demand for payment or drawing under a
Letter of Credit.

     "Related Party" means the Borrower or any Consolidated Subsidiary of the
Borrower, individually, and "Related Parties" means all of such Persons,
collectively.

     "Release" means, as to any Person, any release, spill, emission, leaking,
pumping, injection, deposit, discharge, disposal, dispersement, leaching, or
migration of Hazardous Materials into the indoor or outdoor environment or into
or out of Property owned by such Person, including, without limitation, the
movement of Hazardous Materials through or in the air, soil, surface water, or
ground water.

     "Remedial Action" means all actions required to (a) cleanup, remove,
respond to, treat, or otherwise address Hazardous Materials in the indoor or
outdoor environment, (b) prevent the Release or threat of Release or minimize
the further Release of Hazardous Materials so that they do not migrate or
endanger or threaten to endanger public health or welfare or the indoor or
outdoor environment, (c) perform studies and investigations on the extent and
nature of any actual or suspected contamination, the remedy or remedies to be
used or health effects or risks of such contamination, or (d) perform post-
remedial monitoring, care, or remedy of a contaminated site.

     "Reportable Event" means any of the events set forth in Section 4043(b) of
ERISA other than any such event for which the thirty (30) day notice requirement
has been waived in regulations issued by the PBGC.

     "Required Lenders" means any combination of the Lenders having more than
sixty-six percent (66.0%) of the Commitments or, if the Commitments have
terminated or have otherwise been fulfilled, the outstanding principal amount of
the Loans and the Letter of Credit Liabilities.

     "Required Payment" has the meaning specified in Section 3.4.

     "Reserve Requirement" means, at any time, the maximum rate at which
reserves (including, without limitation, any marginal, special, supplemental, or
emergency reserves) are required to be maintained under regulations issued from
time to time by the Board of Governors of the Federal Reserve System (or any
successor) by member banks of the Federal Reserve System against, in the case of
Libor Rate Loans, "Eurocurrency Liabilities" (as such term is used in Regulation
D) or as may be required in connection with any Fed Funds Rate Loan.  Without
limiting the effect of the foregoing, the Reserve Requirement shall reflect any
other reserves required to be maintained by such member banks with respect to
(a) any category of extensions of credit or other assets which include Libor
Rate Loans and Fed Funds Rate Loans.  The Adjusted Libor Rate and the Adjusted

                                       16
<PAGE>

Federal Funds Rate each shall be adjusted automatically on and as of the
effective date of any change in the Reserve Requirement.

     "Responsible Officer" means, with respect to any Related Party,  the chief
executive officer, the president, any vice president, the chief financial
officer, the chief operating officer, or the treasurer of such Person.

     "Restricted Payment" means (a) any dividend or other distribution (whether
in cash, Property, or obligations), direct or indirect, on account of (or the
setting apart of money for a sinking or other analogous fund for) any shares of
any class of Capital Stock of the Borrower or any of its Subsidiaries now or
hereafter outstanding, except a dividend payable solely in shares of that class
of stock to the holders of that class, (b) any redemption, conversion, exchange,
retirement, sinking fund or similar payment, purchase, or other acquisition for
value, direct or indirect, of any shares of any class of Capital Stock of the
Borrower or any of its Subsidiaries now or hereafter outstanding, (c) any
payment made to retire, or to obtain the surrender of, any outstanding warrants,
options, or other rights to acquire shares of any class of Capital Stock of the
Borrower or any of its Subsidiaries now or hereafter outstanding.

     "Revolving Loans A" has the meaning specified in Section 2.1(a).

     "Revolving Loans B" has the meaning specified in Section 2.1(b).

     "Revolving Loans A Commitment" means, as to any Lender, the obligation (if
any) of such Lender to make or continue Revolving Loans A and purchase
participation interests in (or with respect to the Issuing Bank as a Lender,
hold other interests in) Letters of Credit hereunder in an aggregate principal
amount up to but not exceeding the amount set forth opposite the name of such
Lender on the signature pages hereto under the heading "Revolving Loans A
Commitment" or, if such Lender is a party to an Assignment and Acceptance, the
amount of the "Revolving Loans A Commitment" set forth in the most recent
Assignment and Acceptance of such Lender, as the same may be reduced or
terminated pursuant to Section 2.13 or Section 10.2, and "Revolving Loans A
Commitments" means such obligations of all Lenders.  As of the Closing Date, the
aggregate principal amount of the Revolving Loans A Commitments is $20,000,000.

     "Revolving Loans B Commitment" means the obligation (if any) of Bank of
America to make or continue Revolving Loans B hereunder in an aggregate
principal amount up to but not exceeding $5,000,000 or such amount as to which
such commitment may be reduced or terminated pursuant to Section 2.13 or
Section 10.2.

     "Revolving Note B" means the promissory note in the form of Exhibit B-2
hereto made by the Borrower evidencing the Revolving Loans B and any and all
amendments, restatements, or other modifications thereto and all substitutions
thereto.

                                       17
<PAGE>

     "Revolving Notes A" means the promissory notes in the form of Exhibit B-1
hereto made by the Borrower evidencing the Revolving Loans A and any and all
amendments, restatements, or other modifications thereof and all substitutions
therefor.

     "Solvent" means, with respect to any Person as of the date of any
determination, that on such date (a) the fair value of the Property of such
Person (both at fair valuation and at present fair saleable value) is greater
than the total liabilities, including, without limitation, contingent
liabilities, of such Person, (b) the present fair saleable 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 is able to realize upon its assets and pay its debts
and other liabilities, contingent obligations, and other commitments as they
mature in the normal course of business, (d) such Person does not intend to, and
does not believe that it will, incur debts or liabilities beyond such Person's
ability to pay as such debts and liabilities mature, and (e) 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 unreasonably
small capital after giving due consideration to current and anticipated future
capital requirements and current and anticipated future business conduct and the
prevailing practice in the industry in which such Person is engaged.  In
computing the amount of contingent liabilities at any time, such liabilities
shall be computed at the amount which, in light of the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability.

     "Subsidiary" means, with respect to any Person, any corporation or other
entity of which at least a majority of the outstanding shares of stock or other
ownership interests having by the terms thereof ordinary voting power to elect a
majority of the board of directors (or Persons performing similar functions) of
such corporation or entity (irrespective of whether or not at the time, in the
case of a corporation, stock of any other class or classes of such corporation
shall have or might have voting power by reason of the happening of any
contingency) is at the time directly or indirectly owned or controlled by such
Person or one or more of its Subsidiaries or by such Person and one or more of
its Subsidiaries.

     "Tangible Net Worth" means the Borrower's and its Consolidated
Subsidiaries' total shareholders' equity (including, without limitation, capital
stock, additional paid-in-capital, and retained earnings, after deducting any
treasury stock) which would appear on a balance sheet of the Borrower prepared
in accordance with GAAP, minus goodwill and other intangible assets.

     "Type" means any type of Loan (i.e., a Prime Rate Loan, a Fed Funds Rate
Loan, or a Libor Rate Loan).

     "UCC" means the Uniform Commercial Code as in effect in the State of Texas.

     "U.S." means the United States of America.

     "Voting Stock" means Capital Stock of a Person having by the terms thereof
ordinary voting power to elect a majority of the board of directors, managers,
or general partners (or persons performing similar functions) of such Person
(irrespective of whether or not at the time Capital Stock

                                       18
<PAGE>

of any other class or classes of such Person shall have or might have voting
power by reason of the happening of any contingency).

     "Wholly-Owned Subsidiary" means, with respect to any Person, a Subsidiary
of such Person all of whose outstanding Capital Stock (other than directors'
qualifying shares, if any) shall at the time be owned by such Person and/or one
or more of its Wholly-Owned Subsidiaries.

     "Wilson Notes" means, collectively, the promissory notes dated July 21,
1997, executed and delivered by the Borrower as follows: (a) $2,519,845 payable
to the order of Clyde R. Wilson, Trustee; (b) $1,161,329 payable to the order of
Don H. Wilson; and (c) $2,168,826 payable to the order of Loretta Wilson.

     "Year 2000 Compliant" has the meaning specified in Section 6.20.

     "Year 2000 Problem" has the meaning specified in Section 6.20.

     Section 1.2  Other Definitional Provisions.  All definitions contained in
this Agreement are equally applicable to the singular and plural forms of the
terms defined.  The words "hereof", "herein", and "hereunder" and words of
similar import referring to this Agreement refer to this Agreement as a whole
and not to any particular provision of this Agreement.  The term "continuing",
"continuation", or "continuance" means, in reference to any Default or Event of
Default that has occurred, that such Default or Event of Default has not been
either cured to the reasonable satisfaction of the Agent within the applicable
grace period (if any) specified in this Agreement or the other Loan Documents
(as applicable) or waived in writing by the requisite Lenders in accordance with
Section 12.11.  The term "pro rata" as it relates to the application of payments
to the Revolving Loans A means pro rata based upon the relative outstanding
principal amounts of such Loans.  Unless otherwise specified, all Article and
Section references pertain to this Agreement.  Terms used herein that are
defined in the UCC, unless otherwise defined herein, shall have the meanings
specified in the UCC.  All references in this Agreement to any agreement shall
be deemed to mean and refer to such agreement as it may be amended, restated, or
otherwise modified from time to time if (but only if) such amendment,
restatement, or other modification has been approved by the Agent and the
requisite Lenders, is expressly referred to in such reference or is otherwise
expressly permitted by the terms of this Agreement.

     Section 1.3  Accounting Terms and Determinations.

          (a) Except as may be expressly provided herein to the contrary, (i)
     all accounting terms (whether or not specifically defined herein) shall be
     construed in accordance with GAAP (subject to year end adjustments, if
     applicable) consistent with such accounting principles applied in the
     preparation of the audited financial statements delivered from time to time
     pursuant to Section 7.1(a), (ii) all financial statements delivered to the
     Agent pursuant to Section 7.1(b) shall be prepared in accordance with GAAP
     (subject to year end adjustments, if applicable), and (iii) with respect to
     accounting terms or financial information defined or described in reference
     to a Person and its Consolidated Subsidiaries, all such

                                       19
<PAGE>

     terms and financial information shall be construed as applying to such
     Person and its Consolidated Subsidiaries on a consolidated basis in
     accordance with GAAP.

          (b) The Borrower shall deliver to the Agent and the Lenders, at the
     same time as the delivery of any annual or quarterly financial statement
     under Section 7.1, (i) a description, in reasonable detail, of any material
     variation between the application of GAAP employed in the preparation of
     the next preceding annual or quarterly financial statements prepared in
     accordance with Section 1.3(a) preceding as to which no objection has been
     made by the Agent and (ii) reasonable estimates of the difference between
     such statements arising as a consequence thereof.

          (c) To enable the ready and consistent determination of compliance
     with the covenants set forth in this Agreement, the Borrower will not
     change the last day of its fiscal year from December 31 or the last days of
     the first three fiscal quarters of the Borrower in each of its fiscal years
     from March 31, June 30, and September 30, respectively.

     Section 1.4  Financial Covenants and Reporting.  All financial statements
and reports required to be delivered pursuant to this Agreement and the other
Loan Documents, and all financial covenants contained in this Agreement, shall
be prepared or determined (as applicable) in accordance with GAAP (except as may
be expressly provided to the contrary herein) and, if and to the extent that
such statements, reports, or covenants are to be prepared or determined on a
consolidated basis, shall be prepared or determined on a consolidated basis for
the Borrower and its Consolidated Subsidiaries except as may be expressly
provided to the contrary herein.

                                   ARTICLE 2

                                     Loans

     Section 2.1  Commitments.

          (a) Revolving Loans A.  Subject to the terms and conditions of this
     Agreement (including, without limitation, Section 2.13(a)), each Lender
     severally agrees to make one or more advances to the Borrower, from time to
     time from and including the Closing Date to but excluding the applicable
     Maturity Date of the Revolving Loans A, up to but not exceeding the amount
     (if any) of such Lender's Revolving Loans A Commitment as then in effect
     (such advances referred to in this Section 2.1(a) now or hereafter made by
     the Lenders to the Borrower are hereinafter collectively called the
     "Revolving Loans A"); provided, however, (i) with respect to any Lender at
     any time, the aggregate amount of Revolving Loans A outstanding, plus the
     aggregate amount of Letter of Credit Liabilities, each as applicable to
     such Lender, shall not exceed such Lender's Revolving Loans A Commitment,
     and (ii) with respect to all of the Lenders at any time, the aggregate
     amount of Revolving Loans A outstanding, plus the aggregate amount of
     Letter of Credit Liabilities shall not exceed the Revolving Loans A
     Commitments.

                                       20
<PAGE>

          (b) Revolving Loans B.  Subject to the terms and conditions of this
     Agreement (including, without limitation, Section 2.3(b) and Section
     2.13(a)), Bank of America agrees to make one or more advances to the
     Borrower, from time to time from and including the Closing Date to but
     excluding the applicable Maturity Date of the Revolving Loans B, up to but
     not exceeding the amount (if any) of the Revolving Loans B Commitment as
     then in effect (such advances referred to in this Section 2.1(b) now or
     hereafter made by Bank of America to the Borrower are hereinafter
     collectively called the "Revolving Loans B"); provided, however, the
     aggregate amount of Revolving Loans B outstanding at any time shall not
     exceed the Revolving Loans B Commitment.

          (c) Continuation and Conversion of Loans.  Subject to the terms and
     conditions of this Agreement, the Borrower may (i) borrow, prepay, and
     reborrow  the Revolving Loans A as Prime Rate Loans or Libor Rate Loans
     and, until the applicable Maturity Date with respect to the Revolving Loans
     A, the Borrower may Continue Libor Rate Loans or Convert Revolving Loans A
     which are Libor Rate Loans into Prime Rate Loans or Convert Revolving Loans
     A which are Prime Rate Loans into Libor Rate Loans and (ii) borrow, prepay,
     and reborrow the Revolving Loans B as Prime Rate Loans or Fed Funds Rate
     Loans and, until the applicable Maturity Date with respect to the Revolving
     Loans B, the Borrower may Convert Revolving Loans B which are Fed Funds
     Rate Loans into Prime Rate Loans or Convert Revolving Loans B which are
     Prime Rate Loans into Fed Funds Rate Loans.

          (d) Lending Offices.  Loans of each Type made by each Lender shall be
     made and maintained at such Lender's Applicable Lending Office for Loans of
     such Type.

     Section 2.2  Notes.

          (a) Notes.  Each of the Revolving Loans A made by each Lender and the
     Revolving Loans B made by Bank of America shall be evidenced by a single
     promissory note of the Borrower in substantially the form of Exhibit B-1
     and Exhibit B-2, respectively, dated the Closing Date (or such appropriate
     later date if such Lender is a party to an Assignment and Acceptance),
     payable to the order of such Lender in a principal amount equal to (i) with
     respect to the Revolving Loans A, the amount of the Revolving Loans A
     Commitment of such Lender and (ii) with respect to the Revolving Loans B,
     the amount of the Revolving Loans B Commitment, respectively, as originally
     in effect and otherwise duly completed.  Each Lender is hereby authorized
     by the Borrower to endorse on the schedule (or a continuation thereof)
     attached to the Note of such Lender, to the extent applicable, the date,
     amount and Type of, and the Interest Period (as applicable) for each
     applicable Loan made by such Lender to the Borrower and the amount of each
     payment or prepayment of principal of such Loan received by such Lender;
     provided that any failure by such Lender to make any such endorsement shall
     not affect the obligations of the Borrower under any such Note or this
     Agreement in respect of any such Loan.

     Section 2.3  Repayment of Loans.

                                       21
<PAGE>

          (a) Repayment of Revolving Loans A.  The Borrower shall pay to the
     Agent for the account of each Revolving Loans A Lender all outstanding
     principal of the Revolving Loans A (and all outstanding principal of the
     Revolving Loans A shall be due and payable in full) on the Maturity Date
     with respect to the Revolving Loans A.

          (b) Repayment of Revolving Loans B.  The Borrower shall pay to the
     Agent for the account of Bank of America all outstanding principal of the
     Revolving Loans B (and all outstanding principal of the Revolving Loans B
     shall be due and payable in full) on the Maturity Date with respect to the
     Revolving Loans B.  Notwithstanding anything in this Agreement to the
     contrary, the Borrower acknowledges and agrees that the Revolving Loans B
     are payable, and the Revolving Loans B Commitment shall be terminated,
     immediately on demand by either the Agent (on behalf of and at the
     direction of Bank of America) or Bank of America and that the recitation of
     the Events of Default herein is intended merely to provide examples of
     events which may result in the Agent and/or Bank of America making demand
     for payment of the Revolving Loans B and terminating the Revolving Loans B
     Commitment.  In no event shall a demand for payment or termination of the
     Revolving Loans B be conditioned upon the existence or nonexistence of any
     Default or Event of Default or upon any other circumstance, including the
     imposition of any condition or duty such as a duty of good faith or a duty
     to demand payment only upon the occurrence of a Default or Event of
     Default.  The Agent (on behalf of Bank of America) and/or Bank of America
     shall be entitled to demand payment of all or any portion of the Revolving
     Loans B, and/or terminate all or any portion of the Revolving Loans B
     Commitment at any time and from time to time in their absolute discretion
     and without prior notice to or consent of the Borrower.

     Section 2.4  Interest.

          (a) Interest Rate.  The Borrower shall pay to the Agent, for the
     account of each Lender, interest on the unpaid principal amount of each
     Loan made by such Lender (or deemed made by such Lender with respect to a
     Loan assigned to such Lender after the making of such Loan) to the Borrower
     for the period commencing on the date of such Loan to, but excluding, the
     date such Loan shall be paid in full, at the following rates per annum:

               (i) during the periods such Loan is a Prime Rate Loan, the lesser
          of (A) the Prime Rate plus the Applicable Margin or (B) the Maximum
          Rate;

               (ii) during the periods such Loan is a Libor Rate Loan, the
          lesser of (A) the Adjusted Libor Rate plus the Applicable Margin or
          (B) the Maximum Rate; and

               (iii)  during the periods such Loan is a Fed Funds Rate Loan, the
          lesser of (A) the Adjusted Federal Funds Rate plus the Applicable
          Margin or (B) the Maximum Rate.

                                       22
<PAGE>

          (b) Payment Dates.  Accrued interest on the Loans shall be due and
     payable as follows:

               (i) in the case of Prime Rate Loans and Fed Funds Rate Loans, on
          each Monthly Date;

               (ii) in the case of each Libor Rate Loan, on the last day of the
          Interest Period with respect thereto and, in the case of an Interest
          Period greater than three (3) months, at three (3) month intervals
          after the first day of such Interest Period;

               (iii)  upon the payment or prepayment (whether mandatory or
          optional) of any Libor Rate Loan or the Conversion of any Libor Rate
          Loan to a Loan of another Type (but only on the principal amount so
          paid, prepaid, or Converted); and

               (iv) with respect to all Loans, on the Maturity Date with respect
          to such Loans.

          (c) Default Interest.  Notwithstanding the foregoing, if the Required
     Lenders in their discretion elect, after notice to the Borrower and during
     the existence of an Event of Default, (i) the Borrower shall pay to the
     Agent, for the account of each Lender, interest at the applicable Default
     Rate on any principal of any Loan made by such Lender and any Reimbursement
     Obligation outstanding, and (ii) to the fullest extent permitted by law,
     the Borrower shall pay to the Agent, for the account of the Agent and each
     Lender, as applicable, interest at the applicable Default Rate on any other
     amount payable by the Borrower under any Loan Document which is not paid in
     full when due (whether at stated maturity, by acceleration, or otherwise)
     for the period from and including the due date thereof to but excluding the
     date the same is paid in full.  Interest accrued and payable at the Default
     Rate shall be payable from time to time on demand by the Agent.

     Section 2.5  Borrowing Procedure.  The Borrower shall give the Agent
notice of each borrowing hereunder in accordance with Section 2.9.  Not later
than 12:00 noon (Tyler, Texas time) on the date specified for each borrowing
hereunder, each Lender will make available the amount of the Loan to be made by
it on such date to the Agent, at the Principal Office, in immediately available
funds, for the account of the Borrower.  The amount of each borrowing hereunder
so received by the Agent shall, subject to the terms and conditions of this
Agreement, be made available, for and on behalf of the Borrower, in immediately
available funds by no later than 12:00 noon (Tyler, Texas time); provided,
however, that the Agent may cause such amount to be made available directly to
or for the benefit of the Person who is to receive the proceeds of such Loan as
instructed by the Borrower.

     Section 2.6  Optional Prepayments, Conversions, and Continuations of Loans.
Subject to Section 2.8, the Borrower shall have the right from time to time to
prepay the Loans in whole or in part, to Convert all or part of a Loan of one
Type into a Loan of another Type or to Continue Libor Rate Loans; provided,
however, that (a) the Borrower shall give the Agent notice of each such

                                       23
<PAGE>

prepayment, Conversion, or Continuation as provided in Section 2.9, (b) Libor
Rate Loans may only be Converted on the last day of the Interest Period and any
prepayment of Libor Rate Loans on any day other than the last day of the
Interest Period shall be subject to payment of the additional compensation
specified in Section 4.5, and (c) except for Conversions of Libor Rate Loans or
Fed Funds Rate Loans into Prime Rate Loans, no Conversions or Continuations
shall be made while an Event Default has occurred and is continuing.

     Section 2.7  Mandatory Prepayments.

          (a   Revolving Loans A.  If at any time, the aggregate amount of the
     outstanding Revolving Loans A plus the Letter of Credit Liabilities exceeds
     the Revolving Loans A Commitments, the Borrower shall, within one (1)
     Business Day after the occurrence thereof, prepay the outstanding Revolving
     Loans A by the amount of such excess.

          (b   Revolving Loans B.  If at any time, the aggregate amount of the
     outstanding Revolving Loans B exceeds the Revolving Loans B Commitment, the
     Borrower shall, within one (1) Business Day after the occurrence thereof,
     prepay the outstanding Revolving Loans B by the amount of such excess.

     Section 2.8  Minimum Amounts.  Except for Conversions pursuant to Article
4 and prepayments pursuant to Section 2.7, each borrowing, Conversion, and
optional prepayment of principal of the Loans shall be in an amount at least
equal to $100,000 or an integral multiple of $50,000 in excess thereof
(borrowings, prepayments, or Conversions of or into Loans of different Types or,
in the case of Libor Rate Loans, having different Interest Periods at the same
time hereunder shall be deemed separate borrowings, prepayments, and Conversions
for purposes of the foregoing, one for each Type or Interest Period).

     Section 2.9  Certain Notices.

          (a   Notices by the Borrower to the Agent of terminations or
     reductions of Commitments, of borrowings, Conversions, Continuations, and
     prepayments of Loans and of the duration of Interest Periods shall be
     irrevocable and shall be effective only if received by the Agent not later
     than 10:00 a.m. (Tyler, Texas, time) on the applicable Business Day prior
     to the date of the relevant termination, reduction, borrowing, Conversion,
     Continuation, or prepayment or the first day of such Interest Period as
     specified below:

<TABLE>
<CAPTION>

                                                                       Number of
Notice                                                            Business Days Prior
------------------------------------------------------------------------------------------
<S>                                                           <C>
Conversions or Continuations of Loans and termination or                                 3
 reduction of Commitments
------------------------------------------------------------------------------------------
Borrowings of Revolving Loans A which are Prime Rate Loans                               1
------------------------------------------------------------------------------------------
</TABLE>

                                       24
<PAGE>

<TABLE>
<CAPTION>
<S>                                                           <C>
Borrowings of Revolving Loans A which are Libor Rate Loans                               3
------------------------------------------------------------------------------------------
Borrowings of Revolving Loans B                                                          0
------------------------------------------------------------------------------------------
Prepayments of Loans which are Prime Rate Loans or Fed                                   0
 Funds Rate Loans
------------------------------------------------------------------------------------------
Prepayments of Loans which are Libor Rate Loans                                          3
------------------------------------------------------------------------------------------
</TABLE>

     Notwithstanding the foregoing, (i) the Borrower may give an effective
     notice of borrowing of Revolving Loans A as a Prime Rate Loan in accordance
     with Section 2.14(e) not later than 10:00 a.m. (Tyler, Texas time) on the
     Business Day of the proposed borrowing if the proceeds of such borrowing
     will be used to satisfy Reimbursement Obligations and (ii) the Borrower may
     give an effective notice of borrowing of Revolving Loans A as a Prime Rate
     Loan not later than 10:00 a.m. (Tyler, Texas time) on the Business Day of
     the proposed borrowing if Bank of America is the sole Lender hereunder or,
     at any time Bank of America is not the sole Lender hereunder, if the Agent
     and the Lenders consent.  Any notices of the type described in this Section
     which are received by the Agent after the applicable time set forth above
     on a Business Day shall be deemed to be received and shall be effective on
     the next Business Day.  Each such notice of termination or reduction shall
     specify the applicable Commitments to be affected and the amount of the
     Commitments to be terminated or reduced.  Each such notice of borrowing,
     Conversion, Continuation, prepayment, reduction, or termination shall be in
     the form of Exhibit C (a "Notice of Borrowing"), appropriately completed by
     an authorized representative of the Borrower, and shall specify (1) the
     Loans to be borrowed or prepaid or the Loans to be Converted or Continued;
     (2) the amount (subject to Section 2.8) to be borrowed, Converted,
     Continued, or prepaid; (3) in the case of a Conversion, the Type of Loans
     to result from such Conversion; (4) in the case of a borrowing, the Type of
     Loans to be applicable to such borrowing and the amounts thereof; (5) in
     the event Libor Loans are selected, the duration of the Interest Period
     therefor; and (6) the date of borrowing, Conversion, Continuation, or
     prepayment (which shall be a Business Day).

          (b   Any notices by the Borrower of the type described in this Section
     may be made orally or in writing and, if made orally and the Agent
     requests, must be confirmed immediately in writing (which may be by
     telecopy, provided that such telecopy is promptly followed by delivery of
     an original signed notice) on the same Business Day on which such oral
     notice is given; provided that any such oral notice shall be deemed to be
     controlling and proper notice in the event of a discrepancy with or failure
     to receive a confirming written notice.  The Agent shall notify the
     applicable Lenders of the contents of each such notice on the date of its
     receipt of the same or, if received after the applicable time set forth
     above on a Business Day, on the next Business Day.  The Borrower and the
     Lenders authorize the Agent to rely upon any Person whom the Agent believes
     to be an authorized officer of the

                                       25
<PAGE>

     Borrower, and for purposes of this Agreement, any such officer shall be
     deemed to be authorized to deliver any notice described in this Section and
     to request any such Loan on behalf of the Borrower. In the event the
     Borrower fails to select the Type of Loan requested in any Notice of
     Borrowing, or the duration of any Interest Period for any Libor Rate Loan
     within the time period and otherwise as provided in this Section, such
     Loan, (i) if outstanding as a Libor Rate Loan will be automatically
     Converted into a Prime Rate Loan on the last day of the Interest Period for
     such Libor Rate Loan, (ii) if outstanding as a Prime Rate Loan will remain
     as a Prime Rate Loan, or (iii) if not presently outstanding will be made as
     a Prime Rate Loan. The Borrower may not borrow any Loans as a Libor Rate
     Loan or a Fed Funds Rate Loan, Convert any Prime Rate Loans or Fed Funds
     Rate Loans into Libor Rate Loans or Fed Funds Rate Loans (as applicable) or
     Continue any Libor Rate Loans as Libor Rate Loans if the applicable
     interest rate for such Libor Rate Loans or Fed Funds Rate Loans (as
     applicable) would exceed the Maximum Rate.

     Section 2.10  Use of Proceeds.

          (a   Revolving Loans.  The Borrower agrees that all proceeds of the
     Loans shall be used for general corporate purposes of the Borrower and its
     Subsidiaries in the ordinary course of business, including, without
     limitation, payment of the Reimbursement Obligations.

          (b   Margin Stock.  None of the proceeds of any Loan may be used to
     acquire any security in any transaction that is subject to Section 13 or 14
     of the Exchange Act or to buy or carry any margin stock (within the meaning
     of Regulation T, U, or X of the Board of Governors of the Federal Reserve
     System).

     Section 2.11  Fees.

          (a   Subject to Section 12.12, the Borrower shall pay to the Agent,
     for the account of each applicable Lender, a commitment fee on the daily
     average unused or unfunded amount of each such Lender's Revolving Loans A
     Commitment (as the same may be terminated or reduced pursuant to
     Section 2.13), for the period from and including the Closing Date or the
     date on which such Lender (or its predecessor in interest with respect to a
     Revolving Loans A Commitment assigned to such Lender as to which a
     commitment fee has not previously been paid during the applicable period)
     initially became a Lender to but excluding the Maturity Date, at the per
     annum rate of one-quarter percent (0.25%) based upon the daily average
     unused or unfunded amount of such Lender's Revolving Loans A Commitment,
     which accrued commitment fees shall be payable in arrears on each Quarterly
     Date and on the Maturity Date; provided that for purposes of calculating
     such fee the amount of outstanding Letters of Credit shall constitute use
     of the Revolving Loans A Commitments.

          (b   Subject to Section 12.12, the Borrower agrees to pay to the Agent
     such additional fees as are specified in that certain letter agreement
     between the Borrower and the

                                       26
<PAGE>

     Agent dated concurrently herewith, which fees shall be payable in such
     amounts and on such dates as are specified therein.

     Section 2.12  Computations.    Interest and fees payable by the Borrower
hereunder and under the other Loan Documents shall be computed as follows: (a)
with respect to Libor Rate Loans and Fed Funds Rate Loans on the basis of a year
of 360 days and the actual number of days elapsed (including the first day but
excluding the last day) occurring in the period for which payable unless such
calculation would result in a usurious rate, in which case interest shall be
calculated on the basis of a year of 365 or 366 days, as the case may be, and
(b) with respect to Prime Rate Loans and all fees payable hereunder, on the
basis of a year of 365 or 366 days, as the case may be, and the actual number of
days elapsed (including the first day but excluding the last day) occurring in
the period for which payable.

     Section 2.13  Termination or Reduction of Commitments.

          (a   The Borrower shall have the right to terminate or reduce in part
     the unused portion of the Commitments at any time and from time to time
     prior to the Maturity Date; provided, however, that (i) no such termination
     or reduction shall be effective unless the Borrower shall have given notice
     of each such termination or reduction as provided in Section 2.9, and (ii)
     each partial reduction of any Commitment shall be in an aggregate amount at
     least equal to $100,000 or an integral multiple of $50,000 in excess
     thereof, and (iii) the Borrower shall not have the right to terminate or
     reduce in part any unfunded portion of the Revolving Loans A Commitments
     that could or may be required to be advanced by the Lenders to repay
     Reimbursement Obligations then outstanding.

          (b   The Commitments may not be reinstated after they have been
     terminated or increased after they have been reduced.

     Section 2.14  Letters of Credit.

                                       27
<PAGE>

          (a) Commitment to Issue.  The Borrower may utilize the Revolving Loans
     A Commitments by requesting that the Agent cause the Issuing Bank to issue,
     and the Agent, subject to the terms and conditions of this Agreement, shall
     cause the Issuing Bank to issue, standby letters of credit for the
     Borrower's account (such letters of credit being referred to herein as the
     "Letters of Credit", which may be for the account of the Borrower or any
     other Related Party) provided, however (i) the aggregate amount of
     outstanding Letter of Credit Liabilities shall not at any time exceed
     $5,000,000 (ii) the aggregate amount of the outstanding Revolving Loans A
     plus the outstanding Letter of Credit Liabilities shall not any time exceed
     the Revolving Loans A Commitments. Upon the date of issue of a Letter of
     Credit, the Issuing Bank shall be deemed, without further action by any
     party hereto, to have sold to each Lender who holds a Revolving Loans A
     Commitment, and each such Lender shall be deemed, without further action by
     any party hereto, to have purchased from the Issuing Bank, a participation
     to the extent of such Lender's Commitment Percentage (calculated with
     respect to the Revolving Loans A Commitments) in such Letter of Credit and
     the related Letter of Credit Liabilities.  Upon termination of the
     Revolving Loans A Commitments, any Letter of Credit then outstanding which
     has been fully cash collateralized to the satisfaction of the Agent and the
     Issuing Bank shall no longer be considered a "Letter of Credit" covered by
     the terms of this Agreement and any participating interest heretofore
     granted by the Issuing Bank to the Lenders holding Revolving Loans A
     Commitments in such Letter of Credit shall be deemed terminated but the
     letter of credit fees payable hereunder shall continue to accrue to the
     Issuing Bank with respect to such Letter of Credit until the expiry
     thereof.

          (b) Letter of Credit Request Procedure.  The Borrower shall give the
     Agent not less than five (5) Business Days prior notice (effective upon
     receipt) specifying the date of each Letter of Credit and the nature of the
     transactions to be supported thereby.  Upon receipt of such notice, the
     Agent shall notify the Issuing Bank and each Lender who holds a Revolving
     Loans A Commitment of the contents thereof and of such Lender's Commitment
     Percentage of the amount of the proposed Letter of Credit.  Each Letter of
     Credit (i) shall have an expiration date that does not extend beyond a date
     which is the lesser of (A) one (1) year from the date of issuance or (B)
     thirty (30) days prior to the Maturity Date, (ii) shall be payable in
     Dollars, (iii) must support a transaction entered into or obligation
     arising in the ordinary course of business, (iv) must be satisfactory in
     form and substance to the Agent and the Issuing Bank, and (v) shall be
     issued pursuant to such documentation as the Agent and the Issuing Bank may
     require, including, without limitation, the Issuing Bank's standard form
     Letter of Credit Agreement; provided, that, in the event of any direct
     conflict, variation, or inconsistency between the terms of such agreement
     and this Agreement, the terms of this Agreement shall control.

          (c   Letter of Credit Fees.  The Borrower will pay to the Agent, for
     the account of each Lender holding a Revolving Loans A Commitment, a fee on
     such Lender's Commitment Percentage (calculated with respect to the
     Revolving Loans A Commitments only) of the daily average amount available
     for drawings under the Letters of Credit, such fee (i) to be paid in
     arrears on the first Quarterly Date occurring after the date of the
     issuance

                                       28
<PAGE>

     of the first Letter of Credit and on each Quarterly Date thereafter until
     the date of expiration or termination of all Letters of Credit and (ii) to
     be calculated at a rate per annum equal to the Applicable Margin for Libor
     Rate Loans on the basis of a year of 360 days and the actual number of days
     elapsed (including the first day but excluding the last day). After
     receiving any payment of any fees under this clause (c), the Agent will
     promptly pay to each Lender that holds a Revolving Loans A Commitment the
     fees then due such Lender. The Borrower will also pay to the Issuing Bank,
     for its account only, a fee equal to the lesser of $1,000 or one and one-
     half percent (1.50%) of the amount of each Letter of Credit issued pursuant
     to this Section 2.14. The Borrower will also pay to the Issuing Bank, for
     its account only, all customary fees for issuance, negotiation, amendment,
     or processing of the Letters of Credit.

          (d   Funding of Drawings.  Upon receipt from the beneficiary of any
     Letter of Credit of any demand for payment or other drawing under such
     Letter of Credit, the Issuing Bank shall so notify the Agent and the Agent
     shall so notify the Borrower and each Lender that holds a Revolving Loans A
     Commitment as to the amount to be paid as a result of such demand or
     drawing and the respective payment date.  Not later than 1:00 p.m. (Tyler,
     Texas time) on the applicable payment date if the Borrower has not
     reimbursed the Issuing Bank for the amount paid as a result of such demand
     or drawing, each Lender will make available to the Agent, at the Principal
     Office, in immediately available funds, an amount equal to such Lender's
     Commitment Percentage (calculated based only on the Revolving Loans A
     Commitments) of the amount to be paid as a result of such demand or drawing
     which has not been reimbursed even if the conditions to a Loan under
     Article 5 have not been satisfied, and the Agent shall promptly pay such
     amounts to the Issuing Bank.

          (e   Reimbursements.  The Borrower shall be irrevocably and
     unconditionally obligated to immediately reimburse the Issuing Bank
     (through the Agent) for any amounts paid by the Issuing Bank upon any
     demand for payment or drawing under any Letter of Credit, without
     presentment, demand, protest, or other formalities of any kind.  All
     payments on the Reimbursement Obligations shall be made to the Agent not
     later than 1:00 p.m. (Tyler, Texas time) on the date of the corresponding
     payment under the Letter of Credit by the Issuing Bank; provided that the
     Agent has provided notice to the Borrower prior to 10:00 a.m. (Tyler, Texas
     time) on such day that such payment is due.  In the event such notice is
     received after 10:00 a.m. (Tyler, Texas time) on a Business Day, such
     payment shall be due not later than 1:00 p.m. (Tyler, Texas time) on the
     next succeeding Business Day.  Subject to the other terms and conditions of
     this Agreement, such reimbursement may be made by the Borrower requesting a
     Revolving Loan A in accordance with Section 2.5, the proceeds of which
     shall be credited against the Borrower's Reimbursement Obligations.  The
     Agent will pay to each Lender participating in a Letter of Credit such
     Lender's Commitment Percentage (calculated based only on the Revolving
     Loans A Commitments) of all amounts received from the Borrower for
     application in payment, in whole or in part, to the Reimbursement
     Obligation in respect of any Letter of Credit, but only to the extent such
     Lender has made payment to the Agent in respect of such Letter of Credit
     pursuant to clause (d) of this Section 2.14.

                                       29
<PAGE>

          (f   Reimbursement Obligations Absolute.  The Reimbursement
     Obligations of the Borrower under this Agreement shall be absolute,
     unconditional, and irrevocable, and shall be performed strictly in
     accordance with the terms of the Loan Documents under all circumstances
     whatsoever and the Borrower hereby waives any defense to the payment of the
     Reimbursement Obligations based on any circumstance whatsoever, including,
     without limitation, in either case, the following circumstances: (i) any
     lack of validity or enforceability of any Letter of Credit or any other
     Loan Document; (ii) the existence of any claim, set-off, counterclaim,
     defense, or other rights which any Related Party or any other Person may
     have at any time against any beneficiary of any Letter of Credit, the
     Issuing Bank, the Agent, any Lender, or any other Person, whether in
     connection with any Loan Document or any unrelated transaction; (iii) any
     statement, draft, or other documentation presented under any 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
     whatsoever; (iv) payment by the Issuing Bank under any Letter of Credit
     against presentation of a draft or other document that does not comply with
     the terms of such Letter of Credit; or (v) any other circumstance
     whatsoever, whether or not similar to any of the foregoing.

          (g   Assumption of Risk by Borrower.  As among the Borrower and the
     Lenders, the Borrower assumes all risks of the acts and omissions of, or
     misuse of any of the Letters of Credit by, the respective beneficiaries of
     such Letters of Credit.  In furtherance and not in limitation of the
     foregoing, subject to the provisions of the applications for the issuance
     of Letters of Credit, the Lenders, the Issuing Bank, and the Agent shall
     not be responsible for:

               (i   the form, validity, sufficiency, accuracy, genuineness, or
          legal effect of any document submitted by any Person in connection
          with the application for and issuance of and presentation of drafts
          with respect to any of the Letters of Credit, even if it should prove
          to be in any or all respects invalid, insufficient, inaccurate,
          fraudulent, or forged;

               (ii   the validity or sufficiency of any instrument transferring
          or assigning, or purporting to transfer or assign, any Letter of
          Credit or the rights or benefits thereunder or proceeds thereof, in
          whole or in part, which may prove to be invalid or ineffective for any
          reason;

               (iii   the failure of the beneficiary of any Letter of Credit to
          comply duly with conditions required in order to draw upon such Letter
          of Credit;

               (iv   errors, omissions, interruptions, or delays in transmission
          or delivery of any messages, by mail, cable, telegraph, telex, or
          otherwise, whether or not they be in cipher;

               (v   errors in interpretation of technical terms;

                                       30
<PAGE>

               (vi   any loss or delay in the transmission or otherwise of any
          document required in order to make a drawing under any Letter of
          Credit or of the proceeds thereof;

               (vii   the misapplication by the beneficiary of any Letter of
          Credit of the proceeds of any drawing under such Letter of Credit; or

               (viii   any consequences arising from causes beyond the control
          of any Lender or the Issuing Bank, including, without limitation, any
          act of any Governmental Authority.

None of the foregoing shall affect, impair, or prevent the vesting of any of the
Lenders', the Issuing Bank's, or the Agent's rights or powers under this Section
2.14.  The Borrower shall have a claim against the Issuing Bank, and the Issuing
Bank shall be liable to the Borrower, to the extent of any direct (but not
indirect, consequential, or punitive) damages suffered by the Borrower which the
Borrower proves in a final nonappealable judgment were caused by (A) the Issuing
Bank's willful misconduct or gross negligence in determining whether documents
presented under any Letter of Credit complied with the terms thereof or (B) the
Issuing Bank's willful failure to pay under any Letter of Credit after
presentation to it of documentation strictly complying with the terms and
conditions of such Letter of Credit.  The 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.

                                   ARTICLE 3

                                   Payments

     Section 3.1  Method of Payment and Application of Payments.  All payments
of principal, interest, fees, and other amounts to be made by the Borrower under
this Agreement and the other Loan Documents shall be made to the Agent at the
Principal Office, for the account of the Agent and each Lender, as applicable,
in Dollars and in immediately available funds, without set-off, deduction, or
counterclaim, not later than 12:00 noon (Tyler, Texas time) on the date on which
such payment shall become due (each such payment made after such time on such
due date to be deemed to have been made on the next succeeding Business Day).
The Borrower shall, at the time of making each such payment, specify to the
Agent the sums payable by the Borrower under this Agreement and the other Loan
Documents to which such payment is to be applied (and in the event that the
Borrower fails to so specify, or if an Event of Default has occurred and is
continuing, the Agent may apply such payment to the Obligations in such order
and manner as the Agent may elect, subject to this Section 3.1 and Section 3.2).
Upon the occurrence and during the continuation of an Event of Default, all
funds of the Borrower in the possession of the Agent or any Lender may be
applied by the Agent to the Obligations in such order and manner as the Agent
may elect, subject to Section 3.2; provided, however, that, in the event of any
collection occurring in connection with the occurrence of an Event of Default,
or in the event of any bankruptcy or similar proceedings involving the Borrower,
and receipt by the Agent of any payments with respect to the Obligations in
connection therewith, all proceeds thereof shall be applied by the Agent as
follows unless otherwise agreed by

                                       31
<PAGE>

the Agent and the Lenders: (a) first, to reimburse the Agent for all fees,
costs, and expenses relating to actions taken by the Agent in connection with
such Event of Default or bankruptcy or similar proceedings, (b) second, to the
accrued and unpaid interest with respect to the Revolving Loans B, (c) third,
pro rata to the accrued and unpaid interest with respect to the Revolving Loans
A, (d) fourth, to the principal of the Revolving Loans B (until such Loans are
paid in full), (e) fifth, pro rata to the principal of the Revolving Loans A
(until such Loans are paid in full), and (f) sixth, to the then remaining
outstanding Obligations in such order as the Agent may determine. Each payment
received by the Agent under this Agreement or any other Loan Document for the
account of a Lender shall be paid promptly to such Lender, in immediately
available funds, for the account of such Lender's Applicable Lending Office.
Whenever any payment under this Agreement or any other Loan Document shall be
stated to be due on a day that is not a Business Day, such payment may be made
on the next succeeding Business Day, and such extension of time shall in such
case be included in the computation of the payment of interest and commitment
fee, as the case may be.

     Section 3.2  Pro Rata Treatment.  Except to the extent otherwise provided
in this Agreement: (a) each Loan shall be made by the applicable Lenders under
Section 2.1, each payment of commitment fees under Section 2.11(a) and letter of
credit fees under Section 2.14(c) shall be made for the account of the
applicable Lenders, and each termination or reduction of the Revolving Loans A
Commitments under Section 2.13 shall be applied to the Revolving Loans A
Commitments of the applicable Lenders, pro rata according to the respective
unused Revolving Loans A Commitments; (b) the making, Conversion, and
Continuation of Revolving Loans A of a particular Type (other than Conversions
provided for by Section 4.4) shall be made pro rata among the Lenders holding
Revolving Loans A of such Type according to the amounts of their respective
Revolving Loans A Commitments, as the case may be; (c) each payment and
prepayment by the Borrower of principal of or interest on Revolving Loans A of a
particular Type or of Reimbursement Obligations shall be made to the Agent for
the account of the Lenders holding Revolving Loans A of such Type or
Reimbursement Obligations pro rata in accordance with the respective unpaid
principal amounts of such Revolving Loans A or Reimbursement Obligations held by
such Lenders; (d) Interest Periods for Revolving Loans A of a particular Type
shall be allocated among the Lenders holding Revolving Loans A of such Type pro
rata according to the respective principal amounts held by such Lenders; and (e)
the Lenders holding Revolving Loans A Commitments shall purchase from the
Issuing Bank participations in the Letters of Credit to the extent of their
respective Commitment Percentages (calculated only with respect to the Revolving
Loans A Commitments), and (f) each payment of principal or interest on
Reimbursement Obligations by the Borrower shall be made to the Agent for the
account of the Lenders holding Reimbursement Obligations (or participation
interests therein) pro rata in accordance with the unpaid principal amount of
such Reimbursement Obligations (or participation interests therein) held by such
Lenders.

     Section 3.3  Sharing of Payments, Etc.  If a Lender shall obtain payment
of any principal of or interest on any of the Obligations due to such Lender
hereunder through the exercise of any right of set-off, banker's lien,
counterclaim, or similar right, or otherwise, it shall promptly purchase from
the other Lenders participations in the Obligations held by the other Lenders in
such amounts, and make such adjustments from time to time, as shall be equitable
to the end that all the Lenders shall share pro rata, subject to the provisions
of Section 3.1, in accordance with the unpaid principal

                                       32
<PAGE>

and interest on the Obligations then due to each of them. To such end, all of
the Lenders shall make appropriate adjustments among themselves (by the resale
of participations sold or otherwise) if all or any portion of such excess
payment is thereafter rescinded or must otherwise be restored. The Borrower
agrees, to the fullest extent it may effectively do so under applicable law,
that any Lender so purchasing a participation in the Obligations by the other
Lenders may exercise all rights of set-off, banker's lien, counterclaim, or
similar rights with respect to such participation as fully as if such Lender
were a direct holder of Obligations in the amount of such participation. Nothing
contained herein shall require any Lender to exercise any such right or shall
affect the right of any Lender to exercise, and retain the benefits of
exercising, any such right with respect to any other indebtedness, liability, or
obligation of the Borrower.

     Section 3.4  Non-receipt of Funds by the Agent.

          (a   Unless the Agent shall have been notified by a Lender or the
     Borrower (the "Payor") prior to the date on which such Lender is to make
     payment to the Agent of the proceeds of a Loan to be made by it hereunder
     or the Borrower is to make a payment to the Agent for the account of one or
     more of the Lenders, as the case may be (such payment being herein called
     the "Required Payment"), which notice shall be effective upon receipt, that
     the Payor does not intend to make the Required Payment to the Agent, the
     Agent may assume that the Required Payment has been made and may, in
     reliance upon such assumption (but shall not be required to), make the
     amount thereof available to the intended recipient on such date and, if the
     Payor has not in fact made the Required Payment to the Agent, the recipient
     of such payment shall, on demand, pay to the Agent the amount made
     available to it together with interest thereon in respect of the period
     commencing on the date such amount was so made available by the Agent until
     the date the Agent recovers such amount at a rate per annum equal to the
     Federal Funds Rate for such period.

          (b   The Commitments and other obligations of the Lenders under the
     Loan Documents are several.  The default by any Lender in making a Loan in
     accordance with its Commitment shall not relieve the other Lenders of their
     obligations under the Loan Documents.  In the event of any default by any
     Lender in making any Loan, each nondefaulting Lender shall be obligated to
     make its Loan but shall not be obligated to advance the amount which the
     defaulting Lender was required to advance hereunder.  Each Lender shall be
     solely responsible for its own acts or omissions as provided by this
     Agreement.

     Section 3.5  Taxes.

          (a   All payments by the Borrower of principal of and interest on the
     Loans and of all fees and other amounts payable under the Loan Documents
     shall be made free and clear of, and without withholding or deduction by
     reason of, any present or future taxes, levies, duties, imposts,
     assessments, or other charges levied or imposed by any Governmental
     Authority (other than franchise taxes and taxes on the overall net income
     of the Issuing Bank, any Lender, or the Agent).  If any such taxes, levies,
     duties, imposts, assessments, or other

                                       33
<PAGE>

     charges are so levied or imposed, the Borrower will (i) make additional
     payments in such amounts so that every net payment of principal of and
     interest on the Loans, the Reimbursement Obligations, and of all other
     amounts payable by it under the Loan Documents, after withholding or
     deduction for or on account of any such present or future taxes, levies,
     duties, imposts, assessments, or other charges (including any tax imposed
     on or measured by net income of the Issuing Bank, a Lender, or the Agent
     attributable to payments made to or on behalf of the Issuing Bank, a
     Lender, or the Agent pursuant to this Section 3.5 and any penalties or
     interest attributable to such payments), will not be less than the amount
     provided for herein or therein absent such withholding or deduction
     (provided that the Borrower shall not have any obligation to pay such
     additional amounts to the Issuing Bank, a Lender, or the Agent to the
     extent that such taxes, levies, duties, imposts, assessments, or other
     charges are levied or imposed by reason of the failure of the Issuing Bank,
     a Lender, or the Agent to comply with the provisions of Section 3.6), (ii)
     make such withholding or deduction, and (iii) remit the full amount
     deducted or withheld to the relevant Governmental Authority in accordance
     with applicable law. Without limiting the generality of the foregoing, the
     Borrower will, upon written request of the Issuing Bank or any Lender,
     reimburse the Issuing Bank or each such Lender (as applicable) for the
     amount of (A) such taxes, levies, duties, imports, assessments, or other
     charges so levied or imposed by any Governmental Authority and paid by the
     Issuing Bank or such Lender as a result of payments made by the Borrower
     under or with respect to the Loans and the Reimbursement Obligations other
     than such taxes, levies, duties, imports, assessments, and other charges
     previously withheld or deducted by the Borrower which have previously
     resulted in the payment of the required additional amount to the Issuing
     Bank or such Lender, and (B) such taxes, levies, duties, assessments, and
     other charges so levied or imposed with respect to the Issuing Bank or any
     Lender reimbursement under the foregoing clause (A), so that the net amount
     received by the Issuing Bank or such Lender (net of payments made under or
     with respect to the Loans and the Reimbursement Obligations) after such
     reimbursement will not be less than the net amount the Issuing Bank or such
     Lender would have received if such taxes, levies, duties, assessments, and
     other charges on such reimbursement had not been levied or imposed. The
     Borrower shall furnish promptly to the Agent for distribution to the
     Issuing Bank or any affected Lender, as the case may be, upon request of
     the Issuing Bank or such Lender, official receipts evidencing any such
     payment, withholding or reduction.

          (b   The Borrower will indemnify the Agent, the Issuing Bank, and each
     Lender (without duplication) against, and reimburse the Agent, the Issuing
     Bank, and each Lender for, all present and future taxes, levies, duties,
     imposts, assessments, or other charges (including, without limitation,
     interest and penalties) levied or collected (whether or not legally or
     correctly imposed, assessed, levied, or collected), excluding, however, any
     taxes imposed on the overall net income of the Agent, the Issuing Bank, or
     such Lender or any lending office of the Agent, the Issuing Bank, or such
     Lender by any jurisdiction in which the Agent, the Issuing Bank, or such
     Lender or any such lending office is located, on or in respect of this
     Agreement, any of the Loan Documents, the Obligations, or any portion
     thereof (the "reimbursable taxes").  Any such indemnification shall be on
     an after-tax basis, taking into account any such reimbursable taxes imposed
     on the amounts paid as indemnity.

                                       34
<PAGE>

          (c   Without prejudice to the survival of any other term or provision
     of this Agreement, the obligations of the Borrower under this Section 3.5
     shall survive the payment of the Loans and the other Obligations and
     termination of the Revolving Loans A Commitments.

     Section 3.6  Withholding Tax Exemption.  Each Lender that is not
incorporated or otherwise formed under the laws of the U.S. or a state thereof
agrees that it will, prior to or on or about the Closing Date or the date upon
which it initially becomes a party to this Agreement and if it is legally able
to do so, deliver to the Borrower and the Agent, two duly completed copies of
U.S. Internal Revenue Service Form W-8ECI or W-8BEN or other equivalent
successor form, as appropriate, certifying in any case that such Lender is
entitled to receive payments from the Borrower under any Loan Document without
deduction or withholding of any U.S. federal income taxes.  Each Lender which so
delivers a Form W-8ECI or W-8BEN or other equivalent successor form, as
appropriate, further undertakes to deliver to the Borrower and the Agent, two
additional copies of such form (or a successor form) on or before the date such
form expires or becomes obsolete or after the occurrence of any event requiring
a change in the most recent form so delivered by it, and such amendments thereto
or extensions or renewals thereof as may be reasonably requested by the Borrower
or the Agent, in each case certifying that such Lender is entitled to receive
payments from the Borrower under any Loan Document without deduction or
withholding of any U.S. federal income taxes, unless an event (including without
limitation any change in treaty, law, or regulation) has occurred prior to the
date on which any such delivery would otherwise be required which renders all
such forms inapplicable or which would prevent such Lender from duly completing
and delivering any such form with respect to it and such Lender advises the
Borrower and the Agent that it is not capable of receiving such payments without
any deduction or withholding of U.S. federal income tax.

     Section 3.7  Reinstatement of Obligations.  Notwithstanding anything to
the contrary contained in this Agreement or any other Loan Document, if the
payment of any amount of principal of or interest with respect to the Loans or
any other amount of the Obligations, or any portion thereof, is rescinded,
voided, or must otherwise be refunded by the Agent or any Lender upon the
insolvency, bankruptcy, or reorganization of the Borrower or otherwise for any
reason whatsoever, then each of (a) the Obligations, (b) the Loan Documents
(including, without limitation, this Agreement and the Notes), (c) the
indebtedness, liabilities, and obligations of the Borrower, and (d) all Liens
(if any) for the benefit of the Agent and the Lenders created under or evidenced
by the Loan Documents, will be automatically reinstated and become automatically
effective and in full force and effect, all to the extent that and as though
such payment so rescinded, voided, or otherwise refunded had never been made.

     Section 3.8  No Force Majeure, Disputes.  The Borrower's obligation to
pay all amounts due under the Loans and the other Obligations shall not be
affected by (a) any insolvency, bankruptcy, reorganization, or similar
proceedings by or against the Borrower or affecting any of its Properties, (b)
any action of any Governmental Authority or any damage to or destruction of or
any taking of the Borrower's Property or any part thereof, (c) any change,
waiver, extension,

                                       35
<PAGE>

indulgence, or failure to perform or comply with, or other action or omission
herein or in the other Loan Documents (except for express written modifications
to this Agreement or other Loan Documents as and in the manner permitted under
this Agreement or the other Loan Documents), (d) any dissolution of the
Borrower, (e) any inability or illegality with respect to the use or ownership
of the Borrower's Property, (f) any failure to obtain, or expiration,
suspension, or other termination of, or interruption to, any required licenses,
permits, consents, authorizations, approvals, or other legal requirements, (g)
the invalidity or unenforceability of any of the Loan Documents or any other
infirmity therein or any lack of power or authority of the Agent or any Lender
or the Borrower, or (h) any other event or circumstance whatsoever, whether or
not similar to any of the foregoing and whether or not the Borrower shall have
notice or knowledge of any of the foregoing, it being the intention of the Agent
and the Lenders and the Borrower that the Obligations of the Borrower shall be
absolute and unconditional and shall be separate and independent covenants and
agreements and shall continue unaffected unless the requirements to pay or
perform the same shall have been terminated pursuant to an express provision
thereof or of any of the other Loan Documents.

     Section 3.9  Participation Obligations Absolute; Failure to Fund
Participation.  The obligations of a Lender holding a Revolving Loans A
Commitment to fund its participation in the Letters of Credit in accordance with
the terms hereof shall be absolute, unconditional, and irrevocable and shall be
performed strictly in accordance with the terms of the Loan Documents under all
circumstances whatsoever, including, without limitation, the following
circumstances: (a) any lack of validity of any Loan Document; (b) the occurrence
of any Default or Event of Default; (c) the existence of any claim, set-off,
counterclaim, defense, or other right which such Lender, any Related Party, or
any other Person may have; (d) the occurrence of any event that has or could be
expected to have a Material Adverse Effect; (e) the failure of any condition to
a Loan under Article 5 to be satisfied; (f) the fact that after giving effect to
the funding of the participation the aggregate outstanding Revolving Loans A
plus the aggregate amount of Letter of Credit Liabilities may exceed the
aggregate Revolving Loans A Commitments; or (g) any other circumstance
whatsoever, whether or not similar to any of the foregoing.  If a Lender fails
to fund its participation in a Letter of Credit as required hereby, such Lender
shall, subject to the foregoing proviso, remain obligated to pay to the Agent
the amount it failed to fund on demand together with interest thereon in respect
of the period commencing on the date such amount should have been funded until
the date the amount was actually funded to the Agent at a rate per annum equal
to the Federal Funds Rate for such period and the Agent shall be entitled to
offset against any and all sums to be paid to such Lender hereunder the amount
due the Agent under this sentence.

                                   ARTICLE 4

                        Yield Protection and Illegality

     Section 4.1  Additional Costs.

          (a   The Borrower shall pay directly to each Lender from time to time,
     promptly upon the request of such Lender, the costs incurred by such Lender
     which such Lender

                                       36
<PAGE>

     determines are attributable to its making or maintaining of any Libor Rate
     Loans or its obligation to make any of such Loans, or any reduction in any
     amount receivable by such Lender hereunder in respect of any such Loans or
     obligations (such increases in costs and reductions in amounts receivable
     being herein called "Additional Costs"), resulting from any Regulatory
     Change which:

               (i   changes the basis of taxation of any amounts payable to such
          Lender under this Agreement or its Revolving Note A in respect of any
          of such Libor Rate Loans (other than taxes imposed on the overall net
          income of such Lender or its Applicable Lending Office for any of such
          Libor Rate Loans by the jurisdiction in which such Lender has its
          principal office or such Applicable Lending Office);

               (ii   imposes or modifies any reserve, special deposit, minimum
          capital, capital ratio, or similar requirement relating to any
          extensions of credit or other assets of, or any deposits with or other
          liabilities or commitments of, such Lender (including any of such
          Libor Rate Loans or any deposits referred to in the definition of
          "Libor Rate" in Section 1.1, but excluding the Reserve Requirement to
          the extent it is included in the calculation of the Adjusted Libor
          Rate); or

               (iii   imposes on such Lender (or its Applicable Lending Office)
          or the London interbank market any other condition affecting this
          Agreement or such Lender's Revolving Note A or any extensions of
          credit or liabilities or commitments contemplated hereunder or
          thereunder.

     Each Lender will notify the Borrower (with a copy to the Agent) of any
     event occurring after the Closing Date which will entitle such Lender to
     compensation pursuant to this Section 4.1(a) as promptly as practicable
     after it obtains knowledge thereof and determines to request such
     compensation, and (if so requested by the Borrower) will designate a
     different Applicable Lending Office for the Libor Rate Loans of such Lender
     if such designation will avoid the need for, or reduce the amount of, such
     compensation and will not, in the sole opinion of such Lender, violate any
     law, rule, or regulation or be in any way disadvantageous to such Lender,
     provided that such Lender shall have no obligation to so designate an
     Applicable Lending Office located in the U.S.  Each Lender will furnish the
     Borrower with a certificate setting forth the basis and the amount of each
     request of such Lender for compensation under this Section 4.1(a).  If any
     Lender requests compensation from the Borrower under this Section 4.1(a),
     the Borrower may, by notice to such Lender (with a copy to the Agent),
     suspend the obligation of such Lender to make or Continue making, or
     Convert Prime Rate Loans into, Libor Rate Loans until the Regulatory Change
     giving rise to such request ceases to be in effect (in which case the
     provisions of Section 4.4 shall be applicable).

          (b   Without limiting the effect of the foregoing provisions of this
     Section 4.1, in the event that, by reason of any Regulatory Change, any
     Lender either (i) incurs Additional Costs based on or measured by the
     excess above a specified level of the amount of a category

                                       37
<PAGE>

     of deposits or other liabilities of such Lender which includes deposits by
     reference to which the interest rate on Libor Rate Loans is determined as
     provided in this Agreement or a category of extensions of credit or other
     assets of such Lender which includes Libor Rate Loans or (ii) becomes
     subject to restrictions on the amount of such a category of liabilities or
     assets which it may hold, then, if such Lender so elects by notice to the
     Borrower (with a copy to the Agent), the obligation of such Lender to make
     or Continue making, or Convert Prime Rate Loans into, Libor Rate Loans
     hereunder shall be suspended until such Regulatory Change ceases to be in
     effect (in which case the provisions of Section 4.4 shall be applicable).

          (c   Determinations and allocations by any Lender for purposes of this
     Section 4.1 of the effect of any Regulatory Change on its costs of
     maintaining its obligation to make Loans or of making or maintaining Loans
     or on amounts receivable by it in respect of Loans and of the additional
     amounts required to compensate such Lender in respect of any Additional
     Costs, shall be conclusive in the absence of manifest error, provided that
     such determinations and allocations are made on a reasonable basis.

          (d   The Borrower shall not be required to compensate a Lender or the
     Issuing Bank pursuant to this Section 4.1 for any increased costs or
     reductions incurred more than one (1) year prior to the date that such
     Lender or the Issuing Bank, as the case may be, notifies the Borrower of
     the Regulatory Change giving rise to such increased costs or reductions and
     of such Lender's or the Issuing Bank's intention to claim compensation
     therefor; provided, however, if the Regulatory Change giving rise to such
     increased costs or reductions is retroactive, then the one (1) year period
     referred to in this Section 4.1(d) shall be extended to include the period
     of retroactive effect thereof.

     Section 4.2  Limitation on Types of Loans.  Anything herein to the
contrary notwithstanding, if with respect to any Libor Rate Loans for any
Interest Period therefor:

          (a   the Agent determines (which determination shall be conclusive
     absent manifest error) that quotations of interest rates for the relevant
     deposits referred to in the definition of "Libor Rate" in Section 1.1 are

                                       38
<PAGE>

     not being provided in the relative amounts or for the relative maturities
     for purposes of determining the rate of interest for such Loans as provided
     in this Agreement; or

          (b   the Required Lenders determine (which determination shall be
     conclusive absent manifest error) and notify the Agent that the relevant
     rates of interest referred to in the definition of "Libor Rate" or
     "Adjusted Libor Rate" in Section 1.1 on the basis of which the rate of
     interest for such Loans for such Interest Period is to be determined do
     not accurately reflect the cost to the Lenders of making or maintaining
     such Loans for such Interest Period;

then the Agent shall give the Borrower prompt notice thereof and, so long as
such condition remains in effect, the Lenders shall be under no obligation to
make Libor Rate Loans or to Convert Prime Rate Loans into Libor Rate Loans, and
the Borrower shall, on the last day(s) of the then current Interest Period(s)
for the outstanding Libor Rate Loans, either prepay such Loans or Convert such
Loans into Prime Rate Loans in accordance with the terms of this Agreement.

     Section 4.3  Illegality.  Notwithstanding any other provision of this
Agreement, in the event that it becomes unlawful for any Lender or its
Applicable Lending Office to (a) honor its obligation to make Libor Rate Loans
or (b) maintain Libor Rate Loans, then such Lender shall promptly notify the
Borrower (with a copy to the Agent) thereof and such Lender's obligation to make
or maintain Libor Rate Loans and to Convert Prime Rate Loans into Libor Rate
Loans hereunder shall be suspended until such time as such Lender may again make
and maintain Libor Rate Loans (in which case the provisions of Section 4.4 shall
be applicable).

     Section 4.4  Treatment of Affected Loans.  If the obligation of any
Lender to make or Continue, or to Convert Prime Rate Loans into, Libor Rate
Loans is suspended pursuant to Section 4.1 or Section 4.3, such Lender's Libor
Rate Loans shall be automatically Converted into Prime Rate Loans on the last
day(s) of the then current Interest Period(s) for the Libor Rate Loans (or, in
the case of a Conversion required by Section 4.1(b) or Section 4.3, on such
earlier date as such Lender may specify to the Borrower with a copy to the
Agent) and, unless and until such Lender gives notice as provided below that the
circumstances specified in Section 4.1 or Section 4.3 which gave rise to such
Conversion no longer exist:

          (a   to the extent that such Lender's Libor Rate Loans have been so
     Converted, all payments and prepayments of principal which would otherwise
     be applied to such Lender's Libor Rate Loans shall be applied instead to
     its Prime Rate Loans; and

          (b   all Loans which would otherwise be made or Continued by such
     Lender as Libor Rate Loans shall be made as or Converted into Prime Rate
     Loans and all Loans of such Lender which would otherwise be Converted into
     Libor Rate Loans shall remain as Prime Rate Loans.

If such Lender gives notice to the Borrower that the circumstances specified in
Section 4.1 or Section 4.3 which gave rise to the Conversion of such Lender's
Libor Rate Loans pursuant to this Section 4.4 no longer exist (which such Lender
agrees to do promptly upon such circumstances ceasing to exist) at a time when
Libor Rate Loans are outstanding, such Lender's Prime Rate Loans that are
Revolving Loans A shall be automatically Converted, on the first day(s) of the
next succeeding Interest Period(s) for such outstanding Libor Rate Loans, to the
extent necessary so that, after giving effect thereto, all Loans held by the
Lenders holding Libor Rate Loans and by such Lender are held pro rata (as to
principal amounts, Types, and Interest Periods) in accordance with their
respective Revolving Loans A Commitments.

     Section 4.5  Compensation.  The Borrower shall pay to the Agent for the
account of each Lender, promptly upon the request of such Lender through the
Agent, such amount or amounts as shall be sufficient (in the reasonable opinion
of such Lender) to compensate it for any loss, cost, or expense incurred by it
as a result of:

          (a) Any payment, prepayment, or Conversion of a Libor Rate Loan for
     any reason (including, without limitation, the acceleration of the
     outstanding Revolving Loans A pursuant to Section 10.2) on a date other
     than the last day of an Interest Period for such Loan; or

          (b) Any failure by the Borrower for any reason (including, without
     limitation, the failure of any conditions precedent specified in Article 5
     to be satisfied) to borrow, Convert, or prepay a Libor Rate Loan on the
     date for such borrowing, Conversion, or prepayment specified in the
     relevant notice of borrowing, prepayment, or Conversion under this
     Agreement.
<PAGE>

     Section 4.6  Capital Adequacy.  If, after the Closing Date, any Lender
shall determine that the adoption or implementation after the Closing Date of
any applicable law, rule, or regulation regarding capital adequacy, or any
change after the Closing Date therein, or any change after the Closing Date in
the interpretation or administration thereof by any central bank or other
Governmental Authority charged with the interpretation or administration
thereof, or compliance by such Lender (or its parent) with any guideline,
request, or directive regarding capital adequacy (whether or not having the
force of law) of any central bank or other Governmental Authority after the
Closing Date, has or would have the effect of reducing the rate of return on
such Lender's (or its parent's) capital as a consequence of its obligations
hereunder or the transactions contemplated hereby to a level below that which
such Lender (or its parent) could have achieved but for such adoption,
implementation, change, or compliance (taking into consideration such Lender's
policies with respect to capital adequacy) by an amount deemed by such Lender to
be material, then from time to time, within ten (10) Business Days after demand
by such Lender (with a copy to the Agent), the Borrower shall pay to such Lender
such additional amount or amounts as will compensate such Lender (or its parent)
for such reduction.  A certificate of such Lender claiming compensation under
this Section 4.6 and setting forth the additional amount or amounts to be paid
to it hereunder shall be conclusive absent manifest error, provided that the
determination thereof is made on a reasonable basis.  In determining such amount
or amounts, such Lender may use any reasonable averaging and attribution
methods.

     Section 4.7  Replacement of Lenders.  If at any time a Lender becomes a
Gross Up Lender (as defined below), the Borrower shall have the right to replace
such Lender with another Person; provided that (a) such new Person shall be an
Eligible Assignee and such new Person shall execute an Assignment and
Acceptance, (b) neither the Agent nor any Lender shall have any obligation to
the Borrower to find such other Person, (c) in the event of a replacement of a
Gross Up Lender, in order for the Borrower to be entitled to replace such
Lender, such replacement must take place no later than ninety (90) days after
the date such Gross Up Lender shall notify the Borrower and the Agent of its
desire to be paid any sums pursuant to Section 4.1 or Section 4.5, and (d) if
the Borrower replaces one Gross Up Lender, it must replace all Gross Up Lenders,
each such replacement to occur within a reasonable period of time not to exceed
ninety (90) days from the date such Gross Up Lender requested a payment under
this Article 4.  Each Lender agrees to its replacement at the option of the
Borrower pursuant to this Section 4.7 and in accordance with Section 12.8;
provided that the successor Lender shall purchase without recourse such other
Lender's interest in the Obligations of the Borrower to such other Lender for
cash in an aggregate amount equal to the aggregate unpaid principal thereof, all
unpaid interest accrued thereon, all unpaid commitment fees accrued for the
account of such Lender hereunder or under any other Loan Document, and the
Borrower shall pay to the Gross Up Lender any breakage costs incurred by the
Gross Up Lender because of the prepayment of any Libor Rate Loans, all other
fees (if any) applicable thereto, and all other amounts (including, without
limitation, any amounts under this Article 4) then owing to such Lender
hereunder or under any other Loan Document and the Related Parties shall execute
a release addressed to such Lender releasing such Lender from all claims arising
in connection with the Loan Documents.  In the event that the Borrower selects
an Eligible Assignee as a replacement Lender for any Gross Up Lender, the
Agent's approval of such Lender as required by Section 12.8 shall not be
unreasonably withheld.  Any Lender who requests a payment pursuant to this
Article 4 shall be deemed a "Gross Up Lender".

                                 ARTICLE 5

                             Conditions Precedent
                             --------------------

     Section 5.1  Initial Extension of Credit.  The obligation of each Lender
to make its initial Loan, or of the Issuing Bank to issue the initial Letter of
Credit, under this Agreement is subject to the receipt by the Agent, on or
before the  Closing Date, of all of the following in form and substance
satisfactory to the Agent and the Lenders and, in the case of actions to be
taken, the taking of the following required actions and evidence that such
actions have been taken to the satisfaction of the Agent:

          (a) Resolutions.  Resolutions of the Board of Directors certified by
     the secretary or an assistant secretary of the Borrower which authorize the
     execution, delivery, and performance by the Borrower of the Loan Documents
     to which it is or is to be a party;

          (b) Incumbency Certificate.  A certificate of incumbency certified by
     the secretary or an assistant secretary of the Borrower certifying as to
     the name of each officer or other representative of the Borrower (i) who is
     authorized to sign the Loan Documents to which the Borrower is or is to be
     a party (including any certificates contemplated therein), together with
     specimen signatures of each such officer or other representative, and (ii)
     who will, until replaced by other officers or representatives duly
     authorized for
<PAGE>

     that purpose, act as the Borrower's representative for the purposes of
     signing documents and giving notices and other communications in connection
     with the Loan Documents and the transactions contemplated thereby;

          (c) Articles of Incorporation, Etc.  The articles of incorporation of
     the Borrower certified by the Secretary of State or other applicable
     Governmental Authority of the state of incorporation of the Borrower and
     dated as of a Current Date;

          (d) Bylaws, etc.  The bylaws of the Borrower certified by its
     secretary or an assistant secretary;

          (e) Governmental Certificates.  Certificates of appropriate
     Governmental Officials as to the existence and good standing of the
     Borrower in its jurisdiction of incorporation and in all other
     jurisdictions in which the Borrower is qualified to do business as a
     foreign business enterprise, each such certificate to be dated as of a
     Current Date;

          (f) Notes.  The Notes duly completed and executed by the Borrower (one
     payable to the order of each Lender with respect to its Revolving Loans A
     Commitment and one payable to Bank of America with respect to the Revolving
     Loans B Commitment).

          (g) Payment of Fees and Expenses.  The Borrower shall have paid all
     fees due on or before the Closing Date as specified in this Agreement or
     any other Loan Document and all reasonable fees, costs, and expenses of or
     incurred by the Agent and its outside legal counsel to the extent billed on
     or before the Closing Date and payable pursuant to this Agreement;

          (h) Compliance with Laws.  The Borrower shall have complied in all
     material respects with all Governmental Requirements necessary to execute
     and deliver the Loan Documents and to perform and consummate the
     transactions contemplated by the Loan Documents;

          (i) No Prohibitions.  No Governmental Requirement shall prohibit the
     execution or delivery of any Loan Document or the performance or
     consummation of the transactions contemplated by any Loan Document, and no
     order, judgment, or decree of any Governmental Authority or arbitrator
     shall, and no litigation or other proceeding shall be pending or to the
     Borrower's knowledge, threatened which would, enjoin, prohibit, restrain,
     or otherwise adversely affect in any material manner the execution or
     delivery of any Loan Document or the performance or consummation of the
     transactions contemplated by any Loan Document or otherwise have a Material
     Adverse Effect;

          (j) Financial Statements.  Copies of each of the financial statements
     referred to in Section 6.2, in each case as certified by a Responsible
     Officer of the Borrower as having been prepared in accordance with GAAP and
     as fairly presenting the financial position as of the respective dates
     indicated therein and the results of operations for the respective periods
     indicated therein of the Borrower and its Consolidated Subsidiaries;

          (k) Opinions of Counsel.  A favorable legal opinion of counsel for the
     Borrower, in form and substance satisfactory to the Agent and issued by
     Andrews & Kurth L.L.P., with respect to the Borrower and with respect to
     the Loan Documents;

          (l) Legal Matters and Loan Documents.  All matters of a legal nature
     relating to the Borrower and the Loan Documents shall be reasonably
     satisfactory to the Agent and its counsel, and the Agent shall have
     received the Loan Documents required to be executed and delivered by the
     Borrower or any other Person and all such other agreements, documents, and
     instruments, each in form and substance and executed and delivered by all
     parties, as the Agent may have reasonably requested;

          (m) Waivers and Consents.  Copies of all material waivers and
     consents, if any, necessary for the execution, delivery, and performance by
     the Borrower of the Loan Documents as the Agent may require, which waivers
     and consents shall be certified by a Responsible Officer of the Borrower as
     true and correct copies of such consents as of the Closing Date; and
<PAGE>

          (n) No Material Adverse Change.  As of the Closing Date, (i) no
     material adverse change shall have occurred with respect to the businesses,
     assets, financial condition, results of operations, operations,
     capitalization, indebtedness, liabilities, obligations, profitability, or
     Properties, or of the general affairs or management of the Borrower
     individually or of the Borrower and its Consolidated Subsidiaries taken as
     a whole, in each case since September 30, 1999, and (ii) no disruption or
     adverse change in the capital markets generally or in the market for loan
     syndications in particular shall have occurred since September 30, 1999,
     which disruption or adverse change is deemed material in the judgment of
     the Agent.

The Borrower shall deliver, or cause to be delivered, to the Agent sufficient
counterparts of each agreement, document, or instrument to be received by the
Agent under this Section 5.1 to permit the Agent to distribute a copy of the
same to each of the Lenders.  After the request of the Borrower, the Agent shall
inform the Borrower in writing as to the status of satisfaction of the
conditions precedent set forth in this Section 5.1.

     Section 5.2  All Extensions of Credit.  The obligation of each Lender to
make any Loan  (including the initial Loan) and of the Agent to cause the
Issuing Bank to issue any Letter of Credit under this Agreement is subject to
the continued satisfaction of each of the conditions precedent set forth in
Section 5.1 and each of the following additional conditions precedent:

          (a) No Default or Event of Default.  No Default or Event of Default
     shall have occurred and be continuing, or would result from such Loan or
     the issuance of such Letter of Credit;

          (b) Representations and Warranties.  All of the representations and
     warranties of the Borrower contained in this Agreement and in the other
     Loan Documents shall be true and correct on and as of the date of such Loan
     or Letter of Credit with the same force and effect as if such
     representations and warranties had been made on and as of such date unless
     they relate solely to an earlier date; and

          (c) Additional Documentation.  The Agent shall have received such
     additional approvals, agreements, documents, and instruments as the Agent
     may reasonably request.

Each notice of borrowing by the Borrower hereunder, and each request for the
issuance of a Letter of Credit, shall constitute a representation and warranty
by the Borrower that the conditions precedent set forth in this Section 5.2 have
been satisfied (both as of the date of such notice and, unless the Borrower
otherwise notifies the Agent prior to the date of such borrowing or Letter of
Credit, as of the date of such borrowing or Letter of Credit).

     Section 5.3  Closing Certificates.  The Borrower shall, concurrently with
the Closing Date (with respect to the conditions precedent set forth in Section
5.1) and concurrently with the date of the making of each other Loan or issuing
of any Letter of Credit if requested by the Agent, execute and deliver to the
Agent a certificate in form and substance satisfactory to the Agent certifying
as to the satisfaction of each of the conditions precedent set forth in this
Article 5 which are required to be satisfied on or before such date (without
regard to whether such matters are, in fact, satisfactory to the Agent to the
extent that such satisfaction is required hereunder).

                                   ARTICLE 6

                        Representations and Warranties
                        ------------------------------

     The Borrower represents and warrants to the Agent and the Lenders that the
following statements are on the Closing Date, and after giving effect to the
funding of the initial Loans, if any, on the Closing Date will be, true,
correct, and complete:

     Section 6.1  Existence.  The Borrower (a) is a corporation duly
organized, validly existing, and in good standing under the laws of the State of
Texas, (b) has all requisite corporate power and authority to own its Properties
and carry on its business as now conducted, and (c) is qualified to do business
in all jurisdictions in which the nature of its business makes such
qualification necessary and where failure to so qualify could have a Material
Adverse Effect.  The Borrower has the power and authority and legal right to
execute, deliver, and perform its obligations under the Loan Documents to which
it is or may become a party.

     Section 6.2  Financial Statements.  The Borrower has delivered to the
Agent and the Lenders (i) the audited consolidated financial statements
(including balance sheet and statements of income or operations, shareholders'
equity, and cash flow) of the Borrower and its Consolidated Subsidiaries as of
and for the fiscal year
<PAGE>

ended December 31, 1998, and (ii) the unaudited financial statements (including
balance sheet and statements of income or operations, shareholders' equity, and
cash flow) of the Borrower and its Consolidated Subsidiaries as of and for the
fiscal quarter ended September 30, 1999. All financial statements required to be
delivered to the Agent in accordance with this Agreement (including, without
limitation, those referred to in the immediately preceding sentence) are or will
be when delivered (as applicable) true and correct, have been or will be (as
applicable) prepared in accordance with GAAP (except for year-end adjustments
and the absence of financial statement footnotes required by GAAP) and fairly
and accurately present or will fairly and accurately present (as applicable),
the financial position of the Borrower and its Consolidated Subsidiaries as of
such dates and the results of operations for the respective periods indicated
therein. There has not been, as of the Closing Date, any material adverse change
in the financial condition, results of operations, businesses, operations,
Properties, capitalization, assets, or liabilities of the Borrower and its
Consolidated Subsidiaries taken as a whole, or of the Borrower on an individual
basis, since September 30, 1999.

     Section 6.3  Corporate Action; No Breach.  The execution, delivery, and
performance by the Borrower of the Loan Documents and compliance with the terms
and provisions hereof and thereof have been duly authorized by all requisite
corporate action and do not and will not (a) violate or conflict with, or result
in a breach of, or require any consent under (i) the certificate of
incorporation or bylaws of the Borrower, (ii) any Governmental Requirement or
any order, writ, injunction, or decree of any Governmental Authority or
arbitrator, or (iii) any material agreement, document, or instrument to which
the Borrower is a party or, in the case of this clause (iii), by which the
Borrower or any of its Property is bound or subject, or (b) constitute a default
under any  material agreement, document, or instrument to which the Borrower is
a party or, in the case of this clause (b), by which the Borrower or any of its
Property is bound or subject, or result in the creation or imposition of any
Lien upon any of the revenues or Property of the Borrower.

     Section 6.4  Operation of Business; Licenses.  Each Related Party  (a)
possesses all material Licenses necessary or appropriate to conduct its
businesses substantially as now conducted and as proposed to be conducted or for
the ownership or use of any of its Properties and (b) has complied with all
initial and on-going conditions to the issuance and use of all such Licenses
except where failure to comply could not reasonably be expected to have a
Material Adverse Effect.  No Related Party is in violation of any such material
Licenses which could be expected to result in any termination or cessation
thereof.  All of such Licenses are in full force and effect, and all provisions
of such Licenses have been complied with in all material respects.  To the
knowledge of any Related Party, as of the Closing Date, no such License is
subject to any pending or threatened revocation or termination proceeding or
action.

     Section 6.5  Intellectual Property.  Each Related Party owns or possesses
(or will be licensed or have the full right to use) all material Intellectual
Property which is necessary or appropriate for the operation of its businesses
as now conducted and proposed to be conducted, without any known conflict with
the rights of others.  The consummation of the transactions contemplated by this
Agreement and the other Loan Documents will not materially alter or impair,
individually or in the aggregate, any of such rights of any Related Party.  No
product or service of any Related Party infringes upon any Intellectual Property
of any other Person, and no claim or litigation is, to the knowledge of any
Related Party, pending or threatened against any Related Party contesting the
right of a Related Party to sell or otherwise use any product or material or
service which could be expected to have a Material Adverse Effect.  There is no
violation by any Related Party of any right of a Related Party with respect to
any material Intellectual Property owned or used by a Related Party.

     Section 6.6  Litigation and Judgments.  To the knowledge of any Related
Party, each material action, suit, investigation, or proceeding in any court or
before any arbitrator or mediator or before or by any Governmental Authority
(whether or not any Governmental Authority is a party thereto) pending or
threatened against or affecting any Related Party, or that relates to any of the
Loan Documents as of the Closing Date, is disclosed on Schedule 6.6.  None of
such actions, suits, investigations, or proceedings could, if adversely
determined, reasonably be expected to have a Material Adverse Effect.  Except as
may be disclosed on Schedule 6.6, as of the Closing Date, there are no
outstanding judgments against any Related Party.

     Section 6.7  Rights in Properties; Liens.  Each Related Party has good
and indefeasible title to or, with respect to leasehold interests, valid
leasehold interests in all of its material Properties and assets, real and
personal, except where failure to have good and indefeasible title or valid
leasehold interests could not be expected to have a Material Adverse Effect, and
none of the Properties or leasehold interests of any Related Party is subject to
any Lien, except Permitted Liens.  Other than as set forth on Schedule 1.1, no
Related Party has granted or voluntarily
<PAGE>

allowed or permitted to exist any Lien to or in favor of any Person which
attaches or relates to any Property of any Related Party.

     Section 6.8  Enforceability.  The Loan Documents have been duly and
validly executed and delivered by the Borrower, and such Loan Documents
constitute the legal, valid, and binding obligations of the Borrower,
enforceable against the Borrower in accordance with their respective terms,
except as limited by bankruptcy, insolvency, reorganization, moratorium, or
other laws of general application relating to the enforcement of creditors'
rights and general principles of equity.

     Section 6.9  Approvals.  No authorization, approval, or consent of, and
no filing or registration with or notice to, any Governmental Authority or third
party is or will be necessary for the execution, delivery, or performance by the
Borrower of any of the Loan Documents, or for the validity or enforceability
thereof, except for such consents, approvals, and filings as have been validly
obtained or made and are in full force and effect.  The consummation of the
transactions contemplated by the Loan Documents does not require the consent or
approval of any other Person, except such consents and approvals (a) as have
been validly obtained and are in full force and effect or (b) as to which the
failure to obtain is not, individually or in the aggregate, material.

     Section 6.10  Debt.  As of the Closing Date, no Related Party has any
Debt other than (a) the Obligations of the Borrower under this Agreement, and
(b) the Debt disclosed on Schedule 6.10.

     Section 6.11  Taxes.  Each Related Party has filed (a) all tax returns
(federal, state, and local) and reports required to be filed, including, without
limitation, all income, franchise, employment, Property, and sales tax returns,
and (b) all other material tax returns and reports required to be filed except
where failure to file any such return or report could not be expected to have a
Material Adverse Effect, and has paid all federal and other material taxes
(shown on such returns or reports to be due and payable), assessments, fees, and
other governmental charges levied or imposed upon it or its Properties, income,
or assets otherwise due and payable before they become delinquent, except those
which are being contested in good faith by appropriate proceedings and for which
adequate reserves have been established in accordance with GAAP and no notice of
Lien has been received by any Related Party.  There is no proposed tax
assessment against any Related Party which could, if the assessment were made,
be expected to have a Material Adverse Effect.

     Section 6.12  Margin Securities.  Neither the Borrower nor any Subsidiary
of the Borrower is engaged principally, or as one of its important activities,
in the business of extending credit for the purpose of buying or carrying margin
stock (within the meaning of Regulations T, U, or X of the Board of Governors of
the Federal Reserve System), and no part of the proceeds of any Loan will be
used to buy or carry any margin stock or to extend credit to others for the
purpose of buying or carrying margin stock.

     Section 6.13  ERISA.  No Related Party nor any ERISA Affiliate maintains
or contributes to, or has any obligation under, any Pension Plan other than the
Pension Plans identified on Schedule 6.13.  Each Plan of each Related Party is
in compliance in all material respects with all applicable provisions of ERISA
and the Code.  Neither a Reportable Event nor a Prohibited Transaction has
occurred within the last sixty (60) months with respect to any Plan that could
be expected have a Material Adverse Effect.  No notice of intent to terminate a
Pension Plan has been filed, nor has any Pension Plan been terminated.  No
circumstances exist which constitute grounds entitling the PBGC to institute
proceedings to terminate, or appoint a trustee to administer, a Pension Plan,
nor has the PBGC instituted any such proceedings.  Neither any Related Party nor
any ERISA Affiliate has completely or partially withdrawn from a Multiemployer
Plan.  Each Related Party and each ERISA Affiliate has met its minimum funding
requirements under ERISA and the Code or with respect to all of their respective
Pension Plans subject to such requirements, and, as of the Closing Date except
as specified on Schedule 6.13, the present value of all vested benefits under
each funded Plan (exclusive of any Multiemployer Plan) does not and will not
exceed the fair market value of all such Plan assets allocable to such benefits,
as determined on the most recent valuation date of such Plan and in accordance
with ERISA.  Neither any Related Party nor any ERISA Affiliate has incurred any
liability to the PBGC under ERISA.  No litigation is pending or, to any Related
Party's knowledge, threatened concerning or involving any Plan that could be
expected to have a Material Adverse Effect.  There are no unfunded or unreserved
liabilities (on either a going-concern basis or a wind-up basis) relating to any
Plan that could, individually or in the aggregate, have a Material Adverse
Effect if any Related Party was required to fund or reserve such liability in
full.  As of the Closing Date, no funding waivers have been or will have been
requested or granted under Section 412 of the Code with respect to any Plan.  No
unfunded or unreserved liability for benefits under any Plan or Plans (exclusive
of any Multiemployer Plans) exceeds $250,000 with respect to any such Plan, or
$1,000,000 with respect to all such Plans, in the aggregate as of the Closing
Date, on either a going-concern basis or a wind-up basis.
<PAGE>

     Section 6.14  Disclosure.  No written statement, information, report,
representation, or warranty made by the Borrower in any Loan Document or
furnished to the Agent or any Lender by any Related Party in connection with the
Loan Documents or any transaction contemplated hereby or thereby contains any
untrue statement of a material fact or omits to state any material fact
necessary to make the statements herein or therein, in light of the
circumstances in which made, not misleading.  There is no fact known to any
Related Party which has had a Material Adverse Effect, and there is no fact
known to any Related Party which might in the future have a Material Adverse
Effect except as may have been disclosed in writing to the Agent.

     Section 6.15  Subsidiaries; Capitalization.  Schedule 6.15 attached
hereto contains, as of the Closing Date, complete and accurate information
regarding (a) the identities of each of the Subsidiaries of the Borrower, (b)
the number of issued and outstanding shares of each class of Capital Stock
issued by each of the Borrower's Subsidiaries and the identities of, and  number
and percentage of each of such shares held by, the owner(s) (both of record and
beneficially) of such Capital Stock, and (c) the jurisdiction of incorporation
or other organization of each such Subsidiary.

     Section 6.16  Compliance With Laws.  No Related Party is in violation of
any Governmental Requirement, except for instances of non-compliance that could
not, individually or in the aggregate, be reasonably expected to have a Material
Adverse Effect.

     Section 6.17  Investment Company Act.  Neither the Borrower nor any of
its Subsidiaries is an "investment company" within the meaning of the Investment
Company Act of 1940, as amended.

     Section 6.18  Public Utility Holding Company Act.  Neither the Borrower
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 a "public
utility" within the meaning of the Public Utility Holding Company Act of 1935,
as amended.

     Section 6.19  Environmental Matters.

          (a) Except for instances of noncompliance with or exceptions to any of
     the following representations and warranties that could not have,
     individually or in the aggregate, a Material Adverse Effect:

               (i)    each Related Party, and all of their respective Properties
          and operations are in full compliance with all Environmental Laws;

               (ii)   no Related Party has received written notice of, any past,
          present, or future conditions, events, activities, practices, or
          incidents which may interfere with or prevent the compliance or
          continued compliance by such Person with all Environmental Laws;

               (iii)  each Related Party has obtained all Licenses that are
          required under applicable Environmental Laws, and all such Licenses
          are in good standing and all such Persons are in compliance with all
          of the terms and conditions thereof;

               (iv)   No Hazardous Materials exist on, about or within or have
          been (to the knowledge of any Related Party) or are being used,
          generated, stored, transported, disposed of on, or Released from any
          of the Properties of any Related Party except in compliance with
          applicable Environmental Laws;

               (v)    the use which each Related Party makes and intends to make
          of its respective Properties will not result in the use, generation,
          storage, transportation, accumulation, disposal, or Release of any
          Hazardous Material on, in or from any of their currently owned
          Properties except in compliance with applicable Environmental Laws;

               (vi)   there are no conditions or circumstances associated with
          the currently owned or leased Properties or operations of any Related
          Party that could be expected to give rise to any Environmental
          Liabilities or claims resulting in any Environmental Liabilities;
<PAGE>

               (vii)  no Related Party, and none of their respective currently
          or previously owned or leased Properties or operations, is subject to
          any outstanding or, to the knowledge of any Related Party, threatened
          order from or agreement with any Governmental Authority or other
          Person or subject to any judicial or administrative proceeding with
          respect to (A) any failure to comply with Environmental Laws, (B) any
          Remedial Action, or (C) any Environmental Liabilities;

               (viii) no Related Party is subject to, or has received written
          notice of any claim from any Person alleging that it is or will be
          subject to, any Environmental Liabilities;

               (ix)   none of the Properties of any Related Party is a treatment
          facility (except for the recycling of Hazardous Materials generated
          on-site and the treatment of liquid wastes subject to the Clean Water
          Act or other applicable Environmental Law for temporary storage of
          Hazardous Materials generated on-site prior to their disposal off-
          site) or disposal facility requiring a permit under the Resource
          Conservation and Recovery Act, 42 U.S.C. S 6901 et seq., regulations
          thereunder or any comparable provision of state law;

               (x)    each Related Party is in compliance with all applicable
          financial responsibility requirements of all Environmental Laws; and

               (xi)   no Related Party has failed to file any notice required
          under applicable Environmental Law reporting a Release.

          (b)      No Lien arising under any Environmental Law that could have,
     individually or in the aggregate, a Material Adverse Effect has attached to
     any Property or revenues of any Related Party.

     Section 6.20  Year 2000 Compliance

          (a)      The Borrower has (i) undertaken a detailed review and
     assessment of all areas within the respective business and operations of
     the Related Parties that could be adversely affected by the "Year 2000
     Problem" (that is, the risk that computer applications used by any Related
     Party may be unable to recognize and perform properly date-sensitive
     functions involving certain dates prior to and any date after December 31,
     1999), (ii) developed a detailed plan for addressing the Year 2000 Problem
     on a timely basis, and (iii) implemented that plan in all material
     respects. The Borrower represents that all the Related Parties' computer
     applications that are material to their respective businesses and
     operations are able to perform properly date-sensitive functions for all
     dates before and after January 1, 2000 (that is, be "Year 2000 Compliant")
     except where any such non-performance could not be expected to have a
     Material Adverse Effect.

          (b)      The Borrower has made inquiry of the Related Parties' key
     suppliers, vendors, and customers as to whether such Persons will on a
     timely basis be Year 2000 Compliant and, on the basis of that inquiry,
     believes that all such Persons are so compliant except where non-compliance
     could not be expected to result in a Material Adverse Effect.  For purposes
     hereof, "key suppliers, vendors, and customers" refers to those suppliers,
     vendors, and customers of a Related Party the business failure of which
     would with reasonable probability be expected to have a Material Adverse
     Effect.

     Section 6.21  Labor Disputes and Acts of God.  Neither the business nor
the Properties of any Related Party 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 is having or could be expected to
have a Material Adverse Effect.

     Section 6.22  Outstanding Securities.  All outstanding securities (as
defined in the Securities Act of 1933, as amended, or any successor thereto, and
the rules and regulations of the Securities and Exchange Commission thereunder)
of each Related Party have been offered, issued, sold, and delivered in
compliance with all applicable Governmental Requirements.

     Section 6.23  Solvency.  The Borrower is Solvent, both before and after
giving effect to the Loans.

     Section 6.24  Employee Matters.  Except as set forth on Schedule 6.25, as
of the Closing Date (a) neither any Related Party nor any of their respective
employees is subject to any collective bargaining agreement, and (b) no petition
for certification or union election is pending with respect to the employees of
any
<PAGE>

Related Party, and no union or collective bargaining unit has sought such
certification or recognition with respect to the employees of any Related Party.
There are no strikes, slowdowns, work stoppages, or controversies pending or, to
the knowledge of any Related Party, threatened against, any Related Party or
their respective employees which could have, either individually or in the
aggregate, a Material Adverse Effect.

     Section 6.25  Insurance.  Schedule 6.26 sets forth a complete and
accurate description of all material policies of insurance that are in effect as
of the Closing Date for the Related Parties and their respective Properties.  No
notice of cancellation has been received for any of such policies and each owner
and holder of each such policy is in compliance with all of the terms and
conditions of such policies.

     Section 6.26  Principal Place of Business.  The location of the
Borrower's principal place of business and where it keeps its books and records
is located at the address of the Borrower set forth as the address for notices
for the Borrower on the signature pages hereof.

     Section 6.27  Burdensome Agreements.  No Related Party is a party to any
indenture, loan agreement, credit agreement, stock purchase agreement, or any
lease or other agreement, document, or instrument, or subject to any charter or
corporate restriction, that is unduly and materially burdensome or that could be
expected to have a Material Adverse Effect.  No Related Party is in default in
any respect in the performance, observance, or fulfillment of any of the
obligations, covenants, or conditions contained in any agreement, document, or
instrument binding on it or its Properties, except for instances of
noncompliance that, individually or in the aggregate, could not have a Material
Adverse Effect.

     Section 6.28  Survival of Representations and Warranties, Etc.  All
representations and warranties set forth in this Article 6 and all statements
contained in any certificate, financial statement (other than projections), or
other instrument, delivered by the Borrower pursuant to or in connection with
this Agreement or any of the other Loan Documents (including, but not limited
to, any such representation, warranty, or statement made in or in connection
with any amendment thereto) shall constitute representations and warranties made
under this Agreement.  All representations and warranties made or deemed to be
made under this Agreement shall survive and not be waived by the execution and
delivery of this Agreement, any investigation made by or on behalf of the Agent
or any Lender, or any borrowing hereunder.

                                   ARTICLE 7

                             Affirmative Covenants
                             ---------------------

     The Borrower covenants and agrees that, as long as the Obligations or any
part thereof are outstanding, any Lender has any Commitment hereunder, or any
Letter of Credit remains outstanding, it will perform and observe, or cause to
be performed and observed, the following covenants:

     Section 7.1  Reporting Requirements.  The Borrower will furnish to the
Agent and each Lender:

          (a)     Annual Financial Statements. As soon as available, and in any
     event within one hundred twenty (120) days after the end of each fiscal
     year of the Borrower, beginning with the fiscal year ending December 31,
     1999 (i) a copy of the Borrower's annual report on Form 10-K (such annual
     report to include, without limitation, the annual audit report and other
     financial information referenced in clause (ii) of this Section 7.1(a))
     filed by the Borrower as of the end of and for such fiscal year then ended,
     or (ii) a copy of the annual audit report of the Borrower and its
     Consolidated Subsidiaries as of the end of such fiscal year (including the
     balance sheet and the related statements of income or operations,
     shareholders' equity, and cash flows for such fiscal year), in each case
     setting forth in comparative form the figures for the previous fiscal year,
     and accompanied by the opinion of independent certified public accountants
     of recognized standing acceptable to the Agent, which opinion shall state
     that such consolidated financial statements present fairly the financial
     position and results of operations of the Borrower and its Consolidated
     Subsidiaries for the periods indicated in conformity with GAAP and which
     opinion shall not be qualified or limited because of a restricted or
     limited examination by such accountant of any material portion of the
     records of the Borrower and its Consolidated Subsidiaries;

          (b)     Monthly Financial Statements. As soon as available, and in any
     event within forty-five (45) days after the end of each month, beginning
     with the month ended December 31, 1999 (i) a copy of the unaudited
     consolidated balance sheet and the related consolidated statements of
     income or operations, shareholders' equity, and cash flow of the Borrower
     and its Consolidated Subsidiaries as of the end of and
<PAGE>

     for such month in each case setting forth in comparative form the
     information or figures for the corresponding period of the preceding fiscal
     year, and certified by an appropriate Responsible Officer of the Borrower
     as fairly presenting, in accordance with GAAP, the financial position and
     the results of operations of the Borrower and its Consolidated
     Subsidiaries, except for year-end adjustments and financial statement
     footnotes required by GAAP and (ii) a current "backlog report" of the
     Borrower and its Consolidated Subsidiaries as of the end of such month;

          (c)   Compliance Certificate. Concurrently with the delivery of each
     of the financial statements for any fiscal year end referred to in Section
     7.1(a) and for any fiscal quarter end referred to Section 7.1(b), a
     certificate of a Responsible Officer of the Borrower substantially in the
     form of Exhibit D ("Compliance Certificate"), appropriately completed (i)
     stating that, to the best of such officer's knowledge, no Default or Event
     of Default has occurred and is continuing or, if one or more Defaults or
     Events of Default have occurred and are continuing, stating the nature
     thereof, when such Default(s) or Event(s) of Default occurred, and the
     steps, if any, being taken and proposed to be taken with respect thereto,
     (ii) setting forth the calculations necessary to establish the status of
     compliance with the covenants of Article 9 as of the date of the financial
     statements delivered concurrently therewith, (iii) setting forth the
     calculation of the Debt Ratio necessary to determine the Applicable Margin
     with respect to Libor Rate Loans, and (iv) setting forth the amount and
     date of any Restricted Payments made by any Related Party during the period
     covered by such Compliance Certificate;
          (d)   Notice of Actions, Suits, Investigations, or Proceedings.
     Promptly after a Responsible Officer of the Borrower or any Consolidated
     Subsidiary obtains knowledge thereof, notice of all actions, suits,
     investigations, and proceedings in any court or before any arbitrator or
     mediator or before or by any Governmental Authority (whether or not any
     Governmental Authority is a party thereto) affecting the Borrower or any of
     its Subsidiaries or any License of the Borrower or any of its Subsidiaries,
     which, if determined adversely to such Person, could reasonably be expected
     to have a Material Adverse Effect;

          (e)   Notice of Default, Etc.  As soon as possible and in any event
     immediately upon the Borrower's knowledge of the occurrence of any Default
     or Event of Default, a written notice setting forth the details of such
     Default or Event of Default and the action that the Borrower has taken and
     proposes to take with respect thereto;

          (f) ERISA Plan Reports.  Promptly after the filing or receipt thereof,
     copies of all reports, including, without limitation, annual reports, and
     notices which any Related Party or any ERISA Affiliate files with or
     receives from the PBGC or the U.S. Department of Labor under ERISA with
     respect to a Pension Plan or for which any Related Party has any potential
     liability, and, as soon as possible and in any event within five (5) days
     after any Related Party knows or has reason to know that any Pension Plan
     is insolvent, or that any Reportable Event or Prohibited Transaction has
     occurred with respect to any Plan or Multiemployer Plan, or that the PBGC,
     any Related Party, or any ERISA Affiliate has instituted or will institute
     proceedings under ERISA to terminate or withdraw from or reorganize any
     Pension Plan, a certificate of a Responsible Officer the Borrower setting
     forth the details as to such insolvency, withdrawal, Reportable Event,
     Prohibited Transaction, or termination and the action that the Borrower
     and/or any other Related Party has taken and proposes to take with respect
     thereto;

          (g) Proxy Statements, Etc.  As soon as available, one copy of each (if
     any) financial statement, report, notice, or proxy statement sent by the
     Borrower to its stockholders or other security holders generally and one
     copy of each (if any) regular, periodic, or special report (including,
     without limitation, reports on forms 10-Q and 8-K), registration statement,
     or prospectus filed by the Borrower with any securities exchange or the
     Securities and Exchange Commission or any successor agency;

          (h) Plan Information.  From time to time, as requested by the Agent or
     any Lender, such books, records, and other documents relating to any
     Pension Plan as the Agent or any Lender may reasonably specify; prior to
     any termination, partial termination, or merger of a Pension Plan covering
     employees of any Related Party or any ERISA Affiliate, or a transfer of
     assets of a Pension Plan covering employees of any Related Party or any
     ERISA Affiliate, written notification thereof; promptly upon such Related
     Party's receipt thereof, a copy of any determination letter or advisory
     opinion regarding any Pension Plan received from any Governmental Authority
     and any amendment or modification thereto as may be necessary as a
     condition to obtaining a favorable determination letter or advisory
     opinion, and promptly upon the occurrence thereof, written notification of
     any action requested by any Governmental Authority to be taken as a
     condition to any such determination letter or advisory opinion;
<PAGE>

          (i)     Projections. No sooner than thirty (30) days prior to the
     beginning of each fiscal year and no later than the final day of each
     fiscal year, annual forecasts prepared by the Borrower during such time
     period (to include forecasted consolidated balance sheets, statements of
     income, and expenses) for the Related Parties as at the end of and for each
     month of such succeeding fiscal year and consolidated statements of cash
     flow for the Related Parties as at the end of and for each month of such
     succeeding fiscal year.

          (j)     Management Letters.  Promptly upon each receipt thereof by any
     Related Party, a copy of any management letter or other written report
     submitted to such Related Party by independent certified public accountants
     with respect to the business, condition (financial or otherwise),
     operations, or Properties of any Related Party;

          (k)     Reports to Other Creditors. Promptly after the furnishing
     thereof, a copy of any financial or other material statement or report
     furnished by any Related Party to any other party pursuant to the terms of
     any indenture, loan, stock purchase, or credit or similar agreement and not
     otherwise required to be furnished to the Agent and the Lenders pursuant to
     any other clause of this Section 7.1;

          (l)     Notice of Material Adverse Effect. Within two (2) Business
     Days after any Responsible Officer of any Related Party becomes aware
     thereof, written notice of any matter that could reasonably be expected to
     have a Material Adverse Effect;

          (m)     Environmental Assessments and Notices. Promptly after the
     receipt thereof, a copy of each environmental assessment (including any
     analysis relating thereto) prepared with respect to any Property of any
     Related Party and each notice sent by any Governmental Authority to any
     Related Party relating to any failure or alleged failure to comply with any
     Environmental Law or any liability with respect thereto; and

          (n)     General Information. Promptly, such other business, financial,
     corporate affairs, and other similar information concerning the Related
     Parties as the Agent or any Lender may from time to time reasonably
     request.

     Section 7.2  Maintenance of Existence; Conduct of Business.  The Borrower
will, and will cause each of the other Related Parties to, preserve and maintain
its existence and all of its leases, privileges, Licenses, qualifications,
Intellectual Property, intangible Property, and contract and other rights that
are necessary or appropriate in the ordinary conduct of its business.  The
Borrower will, and will cause each of the other Related Parties to, conduct its
business in an orderly and efficient manner in accordance with good business
practices.

     Section 7.3  Maintenance of Properties and Licenses.  The Borrower will,
and will cause each of the other Related Parties to, maintain, keep, and
preserve all of its Properties and Licenses necessary in the proper conduct of
its business in good repair, working order, and condition (ordinary wear and
tear excepted) and make all necessary repairs, renewals, and replacements and
improvements thereof.

     Section 7.4  Taxes and Claims.  The Borrower will, and will cause each of
the other Related Parties to, pay or discharge before becoming delinquent (a)
all material taxes, levies, assessments, and governmental charges imposed on it
or its income or profits or any of its Property and (b) all lawful claims for
labor, material, and supplies, which, if unpaid, might become a Lien upon any of
its Property; provided, however, that none of the Related Parties shall be
required to pay or discharge any tax, levy, assessment, or governmental charge,
or claim for labor, material, or supplies, whose amount, applicability, or
validity is being contested in good faith by appropriate proceedings being
diligently pursued and for which adequate reserves have been established under
GAAP.

     Section 7.5  Insurance.   The Borrower will, and will cause each of the
other Related Parties to, keep insured by financially sound and reputable
insurers all Property of a character usually insured by responsible entities
engaged in the same or a similar business similarly situated against loss or
damage of the kinds and in the amounts customarily insured against by such
corporations or entities and carry such other insurance as is usually carried by
such corporations or entities (which may to the extent such corporations or
entities are in whole or in part self-insured against certain risks, include
self-insurance), provided that in any event the Related Parties will maintain
(subject to the preceding self-insurance provisions):
<PAGE>

          (a)     Property Insurance.  Insurance against loss or damage covering
     substantially all of the tangible real and personal Property of such Person
     by reason of any Peril (as defined below) in such amounts as shall be
     reasonable and customary and sufficient to avoid the insured named therein
     from becoming a co-insurer of any loss under such policy, but in any event
     in such amounts as are reasonably available as determined by the Borrower's
     independent insurance broker.

          (b)     Automobile Liability Insurance for Bodily Injury and Property
     Damage.  Insurance in respect of all vehicles (whether owned, hired or
     rented by such Person) at any time located at, or used in connection with,
     its Properties or operations against liabilities for bodily injury and
     Property damage in such amounts as are then customary for vehicles used in
     connection with similar Properties and businesses, but in any event to the
     extent required by applicable law.

          (c)     Comprehensive General Liability Insurance.  Insurance against
     claims for bodily injury, death, or Property damage occurring on, in or
     about the real Property of such Person, in such amounts as are then
     customary for Property similar in use in the jurisdictions where such
     Properties are located.

          (d)     Workers' Compensation Insurance. Workers' compensation
     insurance (including employers' liability insurance) to the extent required
     by applicable law, which may be self-insurance to the extent permitted by
     applicable law.

All insurance shall be written by financially responsible companies selected by
the applicable Related Party and having an A.M. Best Rating of "A-" or better
and being in a financial size category of "VI" or larger, or by other companies
reasonably acceptable to the Agent.  For purposes hereof, the term "Peril" shall
mean, collectively, fire, lightning, flood, windstorm, hail, explosion, riot and
civil commotion, vandalism and malicious mischief, damage from aircraft,
vehicles, and smoke, and other perils covered by the "all-risk" endorsement then
in use in the jurisdictions where the Properties of the Related Parties are
located.

     Section 7.6  Inspection Rights.  The Borrower will, and will cause each
other Related Party to, permit representatives and agents of the Agent and the
Lenders, during normal business hours, to examine, copy, and make extracts from
its books and records, to visit and inspect its Properties and to discuss its
business, operations, and financial condition with its officers and independent
certified public accountants.  The Borrower will authorize, and will cause each
other Related Party to authorize, its accountants in writing (with a copy to the
Agent) to comply with this Section 7.6.  The costs and expenses of the Agent and
the Lenders incurred pursuant to this Section shall be paid for by each such
inspecting Person unless an Event of Default shall have occurred and be
continuing in which case such costs and expenses shall be paid for by the
Borrower pursuant to Section 12.1.

     Section 7.7  Keeping Books and Records.  The Borrower will, and will
cause each other Related Party to, maintain appropriate books of record and
account in accordance with GAAP consistently applied in which true, full, and
correct entries will be made of all their respective dealings and business
affairs.  If any changes in accounting principles from those used in the
preparation of the financial statements referenced in Section 7.1 are hereafter
required or permitted by GAAP and are adopted by the Borrower with the
concurrence of its independent certified public accountants and such changes in
GAAP result in a change in the method of calculation or the interpretation of
any of the covenants, standards, or terms contained in this Agreement, the
Borrower and the Required Lenders agree to amend any such affected terms and
provisions so as to reflect such changes in GAAP with the result that the
criteria for evaluating the financial condition or performance of the Borrower
and its Subsidiaries shall be the same after such changes in GAAP as if such
changes in GAAP had not been made.

     Section 7.8  Compliance With Laws.  The Borrower will, and will cause
each other Related Party to, comply with all Governmental Requirements
applicable to the operation of its business, except for instances of
noncompliance that could not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect.

     Section 7.9  Compliance With Agreements.  The Borrower will, and will
cause each other Related Party to, comply with all agreements, documents, and
instruments binding on it or affecting its Properties or business, except for
instances of noncompliance that could not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

     Section 7.10  Further Assurances.  The Borrower will execute and deliver,
and will cause each other Related Party to execute and deliver, such further
agreements, documents, and instruments and take such further
<PAGE>

actions as may be requested by the Agent to carry out the terms and provisions
and purposes of this Agreement and the other Loan Documents and to evidence the
Obligations. Without limiting the generality of the foregoing, the Borrower will
take all necessary actions to and otherwise ensure that, at all times, the
Obligations will rank at least pari passu in respect of priority of treatment
with all other present and future Debt of the Borrower (excluding rights of
secured parties with respect to Permitted Liens).

     Section 7.11  ERISA.  The Borrower will, and will cause each other
Related Party and each ERISA Affiliate to, comply with all minimum funding
requirements and all other material requirements of ERISA so as not to give rise
to any liability thereunder in excess of $1,000,000.

     Section 7.12  Non-Consolidation.  The Borrower will, and will cause each
other Related Party to: (a) maintain books and records of account separate from
those of any other entity which is an Affiliate of such Related Party; (b) not
commingle its funds or assets with those of any other entity which is an
Affiliate of such Related Party; and (c) provide that its Board of Directors or
other analogous governing body will hold all appropriate meetings to authorize
and approve such Person's actions, which meetings will be separate from those of
any other Related Party.

     Section 7.13  Year 2000 Compliance.  The Borrower will, and will cause
each other Related Party, promptly notify Agent in the event any Related Party
discovers or determines that any computer application (including those of its
suppliers and vendors) that is material to it or any of its business and
operations will not be Year 2000 Compliant on a timely basis, except to the
extent that such failure could not reasonably be expected to have a Material
Adverse Effect.

     Section 7.14  Delivery of Certain Amendments and Funded Debt Documents.
The Borrower will, and will cause each other Related Party to, promptly deliver
to the Agent any amendment, modification, or supplement to (a) the certificate
or articles of incorporation, articles of organization, bylaws, regulations, or
other constitutional documents of any Related Party and (b) any agreement,
document, or instrument entered into by a Related Party evidencing any Funded
Debt.  The Borrower will, and will cause each other Related Party to, deliver to
the Agent, promptly after any agreement, document, or instrument entered into by
a Related Party evidencing any Funded Debt comes into existence, a true and
correct copy of each such agreement, document, or instrument.

                                   ARTICLE 8

                              Negative Covenants
                              ------------------

     The Borrower covenants and agrees that, as long as the Obligations or any
part thereof are outstanding, any Lender has any Commitment hereunder, or any
Letter of Credit remains outstanding, it will perform and observe, or cause to
be performed and observed, the following covenants:

     Section 8.1  Debt.  The Borrower will not, nor will it permit any other
Related Party to, incur, create, assume, or permit to exist any Debt, except:

             (a)  Debt to the Lenders pursuant to the Loan Documents;

             (b)  existing Debt in the principal amounts and as otherwise
     described on Schedule 6.10 (including, without limitation, the Borrower's
     present $5,000,000 unsecured revolving line of credit with Chase Bank of
     Texas, N.A.) and renewals, extensions, or refinancings of such Debt which
     do not increase the outstanding principal amount of such Debt, which do not
     shorten the maturity of any principal of such Debt and the terms and
     provisions of which are not materially more onerous than the terms and
     conditions of such Debt on the Closing Date;

             (c)  liabilities of the Borrower in respect of unfunded vested
     benefits under any Plan if and to the extent that the existence of such
     liabilities will not constitute, cause or result in a Default or Event of
     Default;

             (d)  intercompany Debt between or among the Borrower and any of its
     Consolidated Subsidiaries;
<PAGE>

          (e)     other unsecured Debt and Debt secured by Liens of the type
     described in clause (h) of the definition of Permitted Liens; provided that
     the aggregate amount of all such Debt shall not at any time exceed
     $6,000,000; and

          (f)     Debt evidenced by promissory notes with a term of not more
     than five (5) years payable to creditors of "Comelor"; provided that the
     aggregate amount of Debt evidenced thereby shall not at any time exceed
     $3,000,000.

     Section 8.2  Limitation on Liens.  The Borrower will not, nor will it
permit any other Related Party to, incur, create, assume, or permit to exist any
Lien upon any of its Property or revenues, whether now owned or hereafter
acquired, except Permitted Liens.

     Section 8.3  Mergers, Etc.  The Borrower will not, nor will it permit any
other Related Party to, (a) become a party to a merger or consolidation, (b)
wind-up, dissolve, or liquidate itself, or (c) purchase or acquire all or a
material or substantial part of the business or Properties of any Person;
provided, however, that any Consolidated Subsidiary of the Borrower may merge
with and into the Borrower or a Wholly-Owned Subsidiary of the Borrower if the
Borrower or such Wholly-Owned Subsidiary of the Borrower is the surviving entity
in such merger, provided that no consideration is given by the surviving entity
in such merger other than Capital Stock of the surviving entity.

     Section 8.4  Restricted Payments.  The Borrower will not, nor will it
permit any other Related Party to, make any Restricted Payments, except:

             (a)  beginning with the fiscal year ending December 31, 1999, and
     continuing for each fiscal year thereafter, the Borrower may declare and
     pay dividends on, or make other Restricted Payments in respect of, any or
     all classes of its Capital Stock in an aggregate amount not in excess of
     the greater of (i) $12,000,000 or (ii) fifty percent (50.0%) of Net Income
     for such fiscal year; provided that any such Restricted Payment to be made
     pursuant to clause (i) preceding shall be made within 120 days of the end
     of the applicable fiscal year;

             (b)  the Borrower may declare and pay dividends on any class of its
     Capital Stock payable solely in shares of Capital Stock of the Borrower;

             (c)  any Related Party may make Restricted Payments to any other
     Related Party; and

             (d)  the Borrower each other Related Party may make loans or
     advances to employees, officers, and directors of the Related Parties in
     the ordinary course of business that do not exceed $1,000,000 in aggregate
     amount at any time outstanding;

provided, however, that no Restricted Payments may be made pursuant to clause
(a) preceding if any  Default or Event of Default exists at the time of the
declaration of such Restricted Payment or if the making of such Restricted
Payment on the date of declaration would result in a Default or Event of Default
on such date.

     Section 8.5  Limitation on Issuance of Capital Stock.  The Borrower will
not permit any other Related Party to, at any time issue, sell, assign, or
otherwise dispose of (a) any of its Capital Stock, (b) any securities
exchangeable for or convertible into or carrying any rights to acquire any of
its Capital Stock, or (c) any option, warrant, or other right to acquire any of
its Capital Stock, in each case to any Person other than another Related Party.

     Section 8.6  Transactions with Affiliates.  The Borrower will not, nor
will it permit any other Related Party to, enter into any transaction,
including, without limitation, the purchase, sale, or exchange of Property or
the rendering of any service, with any Affiliate of the Borrower, other than a
Related Party, except upon fair and reasonable terms no less favorable to such
Related Party, than would be obtained in a comparable arms-length transaction
with a Person not an Affiliate of the Borrower.

     Section 8.7  Sale and Leaseback.  The Borrower will not, nor will it
permit any other Related Party to, enter into any arrangement with any Person
pursuant to which it leases from such Person real or personal Property that has
been or is to be sold or transferred, directly or indirectly, by it to such
Person; provided that the Related Parties may enter into any such arrangement
for which the Capital Lease Obligations incurred are permitted under Section
8.1.
<PAGE>

     Section 8.8  Lines of Business.  The Borrower will not, and will not
permit any other Related Party to, (a) engage in any business other than the
lines of business in which it is engaged on the Closing Date and matters
incidental thereto or (b) discontinue any line or lines of business which
provide material revenues to such Related Party in which it is engaged on the
Closing Date.

     Section 8.9  Environmental Protection.  The Borrower will not, nor will
it permit any other Related Party to, (a) use (or permit any tenant to use) any
of its Properties for the handling, processing, storage, transportation, or
disposal of any Hazardous Material except in compliance with applicable
Environmental Laws, (b) generate any Hazardous Material except in compliance
with applicable Environmental Laws, (c) conduct any activity that is likely to
cause a Release or threatened Release of any Hazardous Material in violation of
any Environmental Law, or (d) otherwise conduct any activity or use any of its
Properties in any manner, that violates or is likely to violate any
Environmental Law or create any Environmental Liabilities for which any Related
Party would be responsible, except for circumstances or events described in
clauses (a) through (d) preceding that could not, individually or in the
aggregate, be expected to have a Material Adverse Effect.

     Section 8.10  Intercompany Transactions.  Except as may be expressly
permitted or required by the Loan Documents, the Borrower will not, nor will it
permit any other Related Party to, create or otherwise cause or permit to exist
or become effective any consensual encumbrance or restriction of any kind on the
ability of any Related Party to (a) pay dividends or make any other distribution
to the Borrower or any other Related Party in respect of the Capital Stock of
such Related Party or with respect to any other interest or participation in, or
measured by, its profits, (b) pay any indebtedness owed to any Related Party,
(c) make any loan or advance or capital contribution to any Related Party, or
(d) sell, lease, or transfer any of its Property to any Related Party.

     Section 8.11 ERISA.  The Borrower will not, nor will it permit any other
Related Party to:

             (a)  allow, or take (or permit any ERISA Affiliate to take) any
     action which would cause, any unfunded or unreserved liability for benefits
     under any Plan (exclusive of any Multiemployer Plan) to exist or to be
     created that exceeds $250,000 with respect to any such Plan or $1,000,000
     with respect to all such Plans in the aggregate on either a going concern
     or a wind-up basis; or

             (b)  with respect to any Multiemployer Plan, allow, or take (or
     permit any ERISA Affiliate to take) any action which would cause, any
     unfunded or unreserved liability for benefits under any Multiemployer Plan
     to exist or to be created, either individually as to any such Plan or in
     the aggregate as to all such Plans, that could, upon any partial or
     complete withdrawal from or termination of any such Multiemployer Plan or
     Plans, have a Material Adverse Effect.

     Section 8.12  Disposition of Assets.  The Borrower will not permit the
aggregate of all Asset Dispositions of the Related Parties to exceed $15,000,000
after the Closing Date.

                                   ARTICLE 9

                              Financial Covenants
                              -------------------

     The Borrower covenants and agrees that, as long as the Obligations or any
part thereof are outstanding, any Lender has any Commitment hereunder, or any
Letter of Credit remains outstanding, it will perform and observe, or cause to
be performed and observed, the following covenants:

     Section 9.1  Minimum Tangible Net Worth.  At all times from and after
December 31, 1999, the Borrower will not permit its Tangible Net Worth to be
less than $135,000,000.

     Section 9.2  Leverage Ratio.  As of the end of each of the Borrower's
fiscal quarters, commencing with the fiscal quarter ending on December 31, 1999,
the Borrower shall not permit the Leverage Ratio as of such fiscal quarter end
to exceed 0.75 to 1.00.

     Section 9.3  Interest Coverage.  As of the end of each of the Borrower's
fiscal quarters, commencing with the fiscal quarter ending on March 31, 2000,
the Borrower shall not permit the Interest Coverage Ratio as of such fiscal
quarter end, calculated for the preceding four (4) consecutive fiscal quarter
period to be less than 2.00 to 1.00.
<PAGE>

     Section 9.4  Net Income. For the Borrower's fiscal year ending December 31,
1999, the Borrower will not permit Net Income of the Borrower and its
Consolidated Subsidiaries to be less than a loss of $3,000,000 (i.e. $-
3,000,000).

                                  ARTICLE 10

                                    Default
                                    -------

     Section 10.1  Events of Default.  Each of the following shall be deemed
an "Event of Default":

             (a)   (i) the Borrower shall fail to pay, repay, or prepay when
     due, any amount of principal or interest owing to any Lender pursuant to
     this Agreement or any other Loan Document, or (ii) the Borrower shall fail
     to pay, within two (2) Business Days after the due date thereof, any fee,
     expense, or other amount or other Obligation owing to the Agent or any
     Lender pursuant to this Agreement or any other Loan Document;

             (b)   any representation or warranty made or deemed made by or on
     behalf of the Borrower in any Loan Document or in any certificate, report,
     notice, or financial statement furnished at any time in connection with
     this Agreement or any other Loan Document shall be false, misleading, or
     erroneous in any material respect when made or deemed to have been made;

             (c)   the Borrower or any of its Subsidiaries shall fail to
     perform, observe, or comply with any covenant, agreement or term contained
     in Section 7.1(e), Section 7.2, Section 7.6, Section 7.10, Article 8 or
     Article 9, the Borrower or any of its Subsidiaries shall fail to perform,
     observe, or comply with any covenant, agreement, or term contained in
     Section 7.1 (other than Section 7.1(e)) and such failure is not remedied or
     waived within ten (10) days after such failure commenced, or the Borrower
     or any of its Subsidiaries shall fail to perform, observe, or comply with
     any other covenant, agreement, or term contained in this Agreement or any
     other Loan Document (other than covenants to pay the Obligations) and such
     failure is not remedied or waived within the earlier to occur of thirty
     (30) days after such failure commenced or, if a different grace period is
     expressly made applicable in such other Loan Documents, such applicable
     grace period;

             (d)  the Borrower ceases to be Solvent;
             (e)  any Related Party shall (i) apply for or consent to the
     appointment of, or the taking of possession by, a receiver, custodian,
     trustee, liquidator, or administrator of itself or of all or a substantial
     part of its Property, (ii) admit in writing its inability to, or be
     generally unable to, pay its debts as such debts become due, subject to any
     applicable grace periods, (iii) make a general assignment for the benefit
     of its creditors, (iv) commence a voluntary case under the United States
     Bankruptcy Code (as now or hereafter in effect, the "Bankruptcy Code"), (v)
     file a petition seeking to take advantage of any other law providing for
     the relief of debtors or relating to bankruptcy, insolvency,
     reorganization, liquidation, dissolution, arrangement, or winding up, or
     composition or readjustment of debts, (vi)  fail to controvert in a timely
     or appropriate manner, or acquiesce in writing to, any petition filed
     against it in an involuntary case under the Bankruptcy Code or other
     applicable Governmental Requirement, (vii) dissolve, or (viii) take any
     action for the purpose of effecting any of the foregoing;

             (f)  a proceeding or case shall be commenced, without the
     application or consent of any Related Party, in any court of competent
     jurisdiction, seeking (i) the liquidation, reorganization, dissolution,
     arrangement, winding up, or composition or readjustment of its debts, (ii)
     the appointment of a trustee, receiver, custodian, examiner, liquidator,
     administrator, or the like of it or of all or any substantial part of its
     Property, or (iii) similar relief in respect of it, under any law providing
     for the relief of debtors or relating to bankruptcy, insolvency,
     reorganization, liquidation, dissolution, arrangement, or winding up, or
     composition or readjustment of debts, and such proceeding or case shall
     continue undismissed, or an order, judgment, or decree approving or
     ordering any of the foregoing shall be entered and continue unstayed and in
     effect, for a period of sixty (60) or more days, or an order for relief
     shall be entered in an involuntary case under the Bankruptcy Code against
     any Related Party and shall continue unstayed and in effect for any period
     of sixty (60) consecutive days;
<PAGE>

             (g)  any Related Party shall fail to discharge within a period of
     thirty (30) days after the commencement thereof any attachment,
     sequestration, forfeiture, or similar proceeding or proceedings involving
     an aggregate amount in excess of $3,000,000 against any of its Properties;

             (h)  a final judgment or judgments for the payment of money in
     excess of $3,000,000 in the aggregate shall be rendered by a court or
     courts against any Related Party on claims not covered by insurance and the
     same shall not be discharged, bonded, or a stay of execution thereof shall
     not be procured, within sixty (60) days from the date of entry thereof and
     any Related Party shall not, within said period of sixty (60) days, or such
     longer period during which execution of the same shall have been stayed,
     appeal therefrom and cause the execution thereof to be stayed during such
     appeal;

             (i)  any Related Party shall fail to pay when due any principal of
     or interest on any Debt of such Related Party (other than the Obligations)
     having (either individually or in the aggregate) a principal amount of at
     least $3,000,000 or the maturity of any such Debt shall have been
     accelerated, or any event shall have occurred (and shall not have been
     waived or otherwise cured) that permits any holder or holders of such Debt
     or any Person acting on behalf of such holder or holders to accelerate the
     maturity thereof or require any such prepayment;

             (j)  this Agreement or any other Loan Document shall in any
     material respect cease to be in full force and effect or shall be declared
     null and void or the validity or enforceability thereof shall be contested
     or challenged by the Borrower or the Borrower shall deny that it has
     further liability or obligation under any of the Loan Documents;

             (k)  any of the following events shall occur or exist with respect
     to any Related Party or any ERISA Affiliate: (i) any Prohibited Transaction
     involving any Plan; (ii) any Reportable Event with respect to any Pension
     Plan; (iii) the filing under Section 4041 of ERISA of a notice of intent to
     terminate any Pension Plan or the termination of any Pension Plan; (iv) any
     event or circumstance that could reasonably be expected to constitute
     grounds entitling the PBGC to institute proceedings under Section 4042 of
     ERISA for the termination of, or for the appointment of a trustee to
     administer, any Pension Plan, or the institution by the PBGC of any such
     proceedings; (v) any "accumulated funding deficiency" (as defined in
     Section 302 of ERISA or Section 412 of the Code) in excess of $1,000,000,
     whether or not waived, shall exist with respect to any Pension Plan; or
     (vi) complete or partial withdrawal under Section 4201 or 4204 of ERISA
     from a Multiemployer Plan or the reorganization, insolvency or termination
     of any Pension Plan; and in each case above, such event or condition,
     together with all other events or conditions, if any, have subjected or
     could in the reasonable opinion of the Required Lenders subject any Related
     Party or any ERISA Affiliate to any tax, penalty, or other liability to a
     Plan, a Multiemployer Plan, the PBGC or otherwise (or any combination
     thereof) which in the aggregate exceed or could reasonably be expected to
     exceed $1,000,000; or

          (l) the occurrence of any Change in Control;

provided that the enumeration of Events of Default in this Section 10.1 shall
not impair the nature of the Revolving Loans B as being payable ON DEMAND
pursuant to Section 2.3(b).

     Section 10.2  Remedies.  If any Event of Default shall occur and be
continuing, the Agent may and, if directed by the Required Lenders, the Agent
shall do any one or more of the following:

             (a)   Acceleration. Declare all outstanding principal of and
     accrued and unpaid interest on the Revolving Loans A and all other amounts
     payable by the Borrower under the Loan Documents immediately due and
     payable, and the same shall thereupon become immediately due and payable,
     without notice, demand, presentment, notice of dishonor, notice of
     acceleration, notice of intent to accelerate, protest, or other formalities
     of any kind, all of which are hereby expressly waived by the Borrower;

             (b)   Termination of Commitments. Terminate each of the Commitments
     (including, without limitation, any obligation of the Agent to cause the
     Issuing Bank to issue any Letter of Credit) without notice to the Borrower;
             (c)   Judgment.  Reduce any claim to judgment; or

<PAGE>

             (d)   Rights. Exercise any and all rights and remedies afforded by
     the applicable laws of the State of Texas or any other jurisdiction, by any
     of the Loan Documents, by equity, or otherwise;

provided, however, that upon the occurrence of an Event of Default under Section
10.1(e) or Section 10.1(f), the Commitments of all of the Lenders (including,
without limitation, any obligation of the Agent to cause the Issuing Bank to
issue any Letter of Credit) shall immediately and automatically terminate, and
the outstanding principal of and accrued and unpaid interest on the Loans and
all other amounts payable by the Borrower under the Loan Documents shall
thereupon become immediately and automatically due and payable, without notice,
demand, presentment, notice of dishonor, notice of acceleration, notice of
intent to accelerate, protest, or other formalities of any kind, all of which
are hereby expressly waived by the Borrower.  The remedies of the Agent and the
Lenders set forth herein are in addition to any additional rights and remedies
that Bank of America may have with respect to the Revolving Loans B as set forth
in Section 2.3(b).  Notwithstanding any other provision of this Section 10.2,
with respect to the Revolving Loans B, the foregoing enumeration of remedies
available to the Agent and/or Bank of America shall not impair the nature of the
Revolving Loans B as being payable on DEMAND pursuant to Section 2.3(b).

     Section 10.3  Performance by the Agent, Etc.  If the Borrower shall fail
to perform any covenant or agreement in accordance with the terms of the Loan
Documents, the Agent may perform or attempt to perform, or may cause any Lender
(with the consent of such Lender) to perform or attempt to perform, such
covenant or agreement on behalf of the Borrower.  In such event, the Borrower
shall, at the request of the Agent, promptly pay any amount expended by the
Agent or the Lenders in connection with such performance or attempted
performance to the Agent at its Principal Office, together with interest thereon
at the applicable Default Rate from and including the date of such expenditure
to but excluding the date such expenditure is paid in full.  Notwithstanding the
foregoing, it is expressly agreed that neither the Agent nor any Lender shall
have any liability or responsibility for the performance of any obligation of
the Borrower or any other Person under this Agreement or any of the other Loan
Documents.

                                  ARTICLE 11

                                   The Agent
                                   ---------

     Section 11.1  Appointment, Powers, and Immunities.

             (a)   Each Lender hereby irrevocably appoints and authorizes the
     Agent to act as its agent hereunder and under the other Loan Documents with
     such powers as are specifically delegated to the Agent by the terms of this
     Agreement and the other Loan Documents, together with such other powers as
     are reasonably incidental thereto. Neither the Agent nor any of its
     Affiliates, officers, directors, employees, attorneys, or agents shall be
     liable for any action taken or omitted to be taken by any of them hereunder
     or otherwise in connection with this Agreement or any of the other Loan
     Documents except for its or their own gross negligence or willful
     misconduct. Without limiting the generality of the preceding sentence, the
     Agent (a) may treat the payee of any Note as the holder thereof until the
     Agent receives written notice of the assignment or transfer thereof signed
     by such payee and in form satisfactory to the Agent, (b) shall have no
     duties or responsibilities except those expressly set forth in this
     Agreement and the other Loan Documents, and shall not by reason of this
     Agreement or any other Loan Document be a trustee or fiduciary for any
     Lender, (c) shall not be required to initiate any litigation or collection
     proceedings hereunder or under any other Loan Document except to the extent
     requested by the Required Lenders, (d) shall not be responsible to the
     Lenders for any recitals, statements, representations, or warranties
     contained in this Agreement or any other Loan Document, or any certificate
     or other document referred to or provided for in, or received by any of
     them under, this Agreement or any other Loan Document, or for the value,
     validity, effectiveness, enforceability, or sufficiency of this Agreement
     or any other Loan Document or any other document referred to or provided
     for herein or therein or for any failure by any Person to perform any of
     its obligations hereunder or thereunder, (e) may consult with legal counsel
     (including, without limitation, counsel for the Borrower), 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, 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
     reasonably believed by it to be genuine and signed or sent by the proper
     party or parties. As to any matters not expressly provided for by this
     Agreement, the Agent shall in all cases be fully protected in acting, or in
     refraining from acting, hereunder in accordance with instructions signed by
     the Required
<PAGE>

     Lenders, and such instructions of the Required Lenders and any action taken
     or failure to act pursuant thereto shall be binding on all of the Lenders;
     provided, however, that the Agent shall not be required to take any action
     which exposes the Agent to liability or which is contrary to this Agreement
     or any other Loan Document or applicable law. The Agent shall not be deemed
     to have any fiduciary relationship with any Lender, and no implied
     covenants, functions, responsibilities, duties, obligations, or liabilities
     shall be read into this Agreement or otherwise exist against the Agent for
     the benefit of any Lender. Without limiting the generality of the
     foregoing, the use of the term "agent" in this Agreement with respect to
     the Agent is not intended to connote any fiduciary or other express or
     implied obligation arising under agency doctrine of any applicable law;
     instead, such term is used merely as a matter of market custom and is
     intended to create or reflect only an administrative relationship among
     independent contracting parties.

             (b)   The Issuing Bank shall act on behalf of the Lenders with
     respect to any Letters of Credit issued by the Issuing Bank and the
     documents associated therewith until such time and except for so long as
     the Agent may agree at the request of the Required Lenders to act for such
     Issuing Bank with respect thereto; provided, however, that the Issuing Bank
     shall have all of the benefits and immunities (i) provided to the Agent in
     this Article 11 with respect to any acts taken or omissions suffered by the
     Issuing Bank in connection with Letters of Credit issued by it or proposed
     to be issued by it and the Letters of Credit Agreements pertaining to the
     Letters of Credit as fully as if the term "Agent", as used in this Article
     11, included the Issuing Bank with respect to such acts or omissions, and
     (ii) as additionally provided in this Agreement with respect to the Issuing
     Bank.

             (c)   Except for the provisions of Section 11.6 and Section 11.7,
     the provisions of this Article 11 are solely for the benefit of the Agent
     and the Lenders, and the Borrower shall have no rights as a third party
     beneficiary to any of the provisions contained in this Article 11.

     Section 11.2  Rights of Agent as a Lender.  With respect to its
Commitments, the Loans made by it and the Note(s) issued to it, Bank of America
(and any successor acting as the Agent) in its capacity as a Lender hereunder
shall have the same rights and powers hereunder as any other Lender and may
exercise the same as though it were not acting as the Agent, and the term
"Lender" or "Lenders" shall, unless the context otherwise indicates, include the
Agent in its individual capacity.  The Agent and its Affiliates may (without
having to account therefor to any Lender) accept deposits from, lend money to,
act as trustee under indentures of, provide merchant banking services to, own
securities of, and generally engage in any kind of banking, trust, or other
business with, the Borrower or any of its Affiliates and any other Person who
may do business with or own securities of the Borrower or any of its Affiliates,
all as if it were not acting as the Agent or the Issuing Bank and without any
duty to account therefor to the Lenders.

     Section 11.3  Defaults.  The Agent shall not be deemed to have knowledge
or notice of the occurrence of a Default or Event of Default (other than the
non-payment of principal of or interest on the Loans or of commitment fees)
unless the Agent has received notice from a Lender or the Borrower specifying
such Default or Event of Default and stating that such notice is a "notice of
default".  In the event that the Agent receives such a notice of the occurrence
of a Default or Event of Default the Agent shall give notice thereof to the
Lenders (and shall give each Lender notice of each such non-payment).  The Agent
shall (subject to Section 11.1) take such action with respect to such Default or
Event of Default as shall be directed by the Required Lenders, provided that
unless and until the Agent shall have received such directions, the Agent may
(but shall not be obligated to) take such action, or refrain from taking such
action, with respect to such Default or Event of Default as it shall seem
advisable and in the best interest of the Lenders.

     Section 11.4  Indemnification.  EACH LENDER HEREBY AGREES TO INDEMNIFY
THE AGENT FROM AND HOLD THE AGENT HARMLESS AGAINST (TO THE EXTENT NOT REIMBURSED
UNDER SECTION 12.1 AND SECTION 12.2, BUT WITHOUT LIMITING THE OBLIGATIONS OF THE
BORROWER UNDER SECTION 12.1 AND SECTION 12.2), RATABLY IN ACCORDANCE WITH ITS
PRO RATA SHARE (CALCULATED ON THE BASIS OF ITS COMMITMENT PERCENTAGE OF THE
AGGREGATE COMMITMENTS), ANY AND ALL LIABILITIES (INCLUDING, WITHOUT LIMITATION,
ENVIRONMENTAL LIABILITIES), OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS,
JUDGMENTS, DEFICIENCIES, SUITS, COSTS, EXPENSES (INCLUDING, WITHOUT LIMITATION,
ATTORNEYS' FEES) AND DISBURSEMENTS OF ANY KIND OR NATURE WHATSOEVER WHICH MAY BE
IMPOSED ON, INCURRED BY OR ASSERTED AGAINST THE AGENT IN ANY WAY RELATING TO OR
ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY ACTION TAKEN OR OMITTED TO BE
TAKEN BY THE AGENT UNDER OR IN RESPECT OF ANY OF THE LOAN DOCUMENTS; PROVIDED,
<PAGE>

HOWEVER, THAT NO LENDER SHALL BE LIABLE FOR ANY PORTION OF THE FOREGOING TO THE
EXTENT CAUSED BY THE AGENT'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.  WITHOUT
LIMITATION OF THE FOREGOING, IT IS THE EXPRESS INTENTION OF THE LENDERS THAT THE
AGENT SHALL BE INDEMNIFIED HEREUNDER FROM AND HELD HARMLESS AGAINST ALL OF SUCH
LIABILITIES (INCLUDING, WITHOUT LIMITATION, ENVIRONMENTAL LIABILITIES),
OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, DEFICIENCIES,
SUITS, COSTS, EXPENSES (INCLUDING, WITHOUT LIMITATION, ATTORNEYS' FEES) AND
DISBURSEMENTS OF ANY KIND OR NATURE DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RESULTING FROM THE SOLE OR CONTRIBUTORY NEGLIGENCE OF THE AGENT (EXCEPT TO THE
EXTENT THE SAME ARE CAUSED BY THE AGENT'S GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT).  WITHOUT LIMITING ANY OTHER PROVISION OF THIS SECTION 11.4, EACH
LENDER AGREES TO REIMBURSE THE AGENT PROMPTLY UPON DEMAND FOR ITS PRO RATA SHARE
(CALCULATED ON THE BASIS OF ITS COMMITMENT PERCENTAGE OF THE AGGREGATE
COMMITMENTS) OF ANY AND ALL OUT-OF-POCKET EXPENSES (INCLUDING, WITHOUT
LIMITATION, ATTORNEYS' FEES) INCURRED BY THE AGENT IN CONNECTION WITH THE
PREPARATION, EXECUTION, DELIVERY, ADMINISTRATION, MODIFICATION, AMENDMENT, OR
ENFORCEMENT (WHETHER THROUGH NEGOTIATIONS, LEGAL PROCEEDINGS, OR OTHERWISE) OF,
OR LEGAL ADVICE IN RESPECT OF RIGHTS OR RESPONSIBILITIES UNDER, THE LOAN
DOCUMENTS, TO THE EXTENT THAT THE AGENT IS NOT PROMPTLY REIMBURSED FOR SUCH
EXPENSES BY THE BORROWER.

     Section 11.5  Independent Credit Decisions.  Each Lender agrees that it
has independently and without reliance on the Agent or any other Lender, and
based on such documents and information as it has deemed appropriate, made its
own credit analysis of the Borrower and the other Related Parties and its own
decision to enter into this Agreement and that it will, independently and
without reliance upon the Agent or any other Lender, and based upon such
documents and information as it shall deem appropriate at the time, continue to
make its own analysis and decisions in taking or not taking action under this
Agreement or any of the other Loan Documents.  The Agent shall not be required
to keep itself informed as to the performance or observance by the Borrower of
this Agreement or any other Loan Document or to inspect the Properties or books
of the Borrower (or any other Person).  Except for notices, reports, and other
documents and information expressly required to be furnished to the Lenders by
the Agent hereunder or under the other Loan Documents, the Agent shall not have
any duty or responsibility to provide any Lender with any credit or other
financial information concerning the affairs, financial condition, or business
of the Borrower which may come into the possession of the Agent or any of its
Affiliates.

     Section 11.6  Several Commitments.  The Commitments and other obligations
of the Lenders under this Agreement are several.  The default by any Lender in
making a Loan in accordance with any of its Commitments shall not relieve the
other Lenders of their obligations under this Agreement.  In the event of any
default by any Lender in making any Loan, each nondefaulting Lender shall be
obligated to make its Loan but shall not be obligated to advance the amount
which the defaulting Lender was required to advance hereunder.  In no event
shall any Lender be required to advance an amount or amounts with respect to any
of the Loans which would in the aggregate exceed such Lender's Commitment with
respect to such Loans.  No Lender shall be responsible for any act or omission
of any other Lender.

     Section 11.7  Successor Agent.  Subject to the appointment and acceptance
of a successor Agent as provided below, the Agent may resign at any time by
giving notice thereof to the Lenders and the Borrower.  Upon any such
resignation, the Required Lenders will have the right to appoint another Lender
as a successor Agent.  If no successor Agent shall have been so appointed by the
Required Lenders and shall have accepted such appointment within thirty (30)
days after the retiring Agent's giving of notice of resignation, then the
retiring Agent may, on behalf of the Lenders, appoint a successor Agent, which
shall be a commercial bank organized under the laws of the U.S. or any state
thereof or of a foreign country if acting through its U.S. branch and having
combined capital and surplus of at least $500,000,000.  Upon the acceptance of
its appointment as successor Agent, such successor Agent shall thereupon succeed
to and become vested with all rights, powers, privileges, immunities, and duties
of the resigning Agent, and the resigning Agent shall be discharged from its
duties and obligations under this Agreement and the other Loan Documents.  After
any Agent's resignation as Agent, the provisions of this Article 11 shall
continue in effect for its benefit in respect of any actions taken or omitted to
be taken by it while it was the Agent.  Notwithstanding the foregoing, if the
Agent is also acting as the Issuing Bank, simultaneously with appointment of a
successor Agent as provided herein such successor Agent shall assume all of the
duties and obligations of the resigning Agent as the Issuing Bank pursuant to
documentation in form and substance satisfactory to the resigning Agent.
<PAGE>

                                  ARTICLE 12

                                 Miscellaneous
                                 -------------

     Section 12.1  Expenses.  The Borrower hereby agrees, on demand, to pay or
reimburse the Agent and each of the Lenders for paying: (a) all reasonable out-
of-pocket costs and expenses of the Agent accrued in connection with the
arranging, drafting, preparation, negotiation, execution, and/or delivery of the
Loan Documents and in connection with any and all waivers, amendments,
modifications, renewals, extensions, and supplements of or to the Loan
Documents, and the syndication of the Commitments and the Loans, including,
without limitation, the reasonable fees and expenses of outside legal counsel
(including all local counsel) for the Agent, (b) all out-of-pocket costs and
expenses of the Agent and the Lenders in connection with any Default or Event of
Default, the exercise of any right or remedy and the enforcement of this
Agreement or any other Loan Document or any term or provision hereof or thereof,
including, without limitation, the fees and expenses of all legal counsel for
the Agent and/or any Lender, (c) all transfer, stamp, documentary, or other
similar taxes, assessments or charges levied by any Governmental Authority in
respect of this Agreement or any of the other Loan Documents, (d) all reasonable
out-of-pocket costs and expenses incurred by the Agent in connection with due
diligence, computer services, copying, appraisals, environmental audits,
collateral audits, field exams, insurance, consultants, and search reports, and
(e) all reasonable fees, costs, and expenses of the Agent or the Issuing Bank
arising in connection with any Letter of Credit, including, without limitation,
the Issuing Bank's customary fees for amendments, transfers, and drawings on
Letters of Credit.

     Section 12.2  Indemnification.  THE BORROWER HEREBY AGREES TO INDEMNIFY
THE AGENT AND EACH LENDER AND EACH AFFILIATE THEREOF AND THEIR RESPECTIVE
OFFICERS, DIRECTORS, EMPLOYEES, ATTORNEYS, AND AGENTS FROM, AND HOLD EACH OF
THEM HARMLESS AGAINST, ANY AND ALL LOSSES, LIABILITIES (INCLUDING, WITHOUT
LIMITATION, ENVIRONMENTAL LIABILITIES), CLAIMS, DAMAGES, PENALTIES, JUDGMENTS,
DISBURSEMENTS, COSTS, AND EXPENSES (INCLUDING, WITHOUT LIMITATION, REASONABLE
ATTORNEYS' AND CONSULTANTS' FEES) TO WHICH ANY OF THEM MAY BECOME SUBJECT WHICH
DIRECTLY OR INDIRECTLY ARISE FROM OR RELATE TO (a) THE DRAFTING, PREPARATION,
NEGOTIATION, EXECUTION, DELIVERY, PERFORMANCE, ADMINISTRATION, OR ENFORCEMENT OF
ANY OF THE LOAN DOCUMENTS, INCLUDING, WITHOUT LIMITATION, THE EXERCISE OF ANY
RIGHT OR REMEDY WHETHER OR NOT SUCH EXERCISE IS IN COMPLIANCE WITH LAWS
AFFECTING OTHER PERSONS OR RESULTS IN DAMAGES PAYABLE TO OTHER PERSONS, (b) ANY
OF THE TRANSACTIONS CONTEMPLATED BY THE LOAN DOCUMENTS, (c) THE USE OR PROPOSED
USE OF ANY LETTER OF CREDIT OR ANY PAYMENT OR FAILURE TO PAY WITH RESPECT TO ANY
LETTER OF CREDIT, (d) ANY BREACH BY THE BORROWER OF ANY MATERIAL REPRESENTATION,
WARRANTY, COVENANT, OR OTHER AGREEMENT CONTAINED IN ANY OF THE LOAN DOCUMENTS,
(e) THE USE OR PROPOSED USE OF ANY LOAN, (f) THE PRESENCE, RELEASE, THREATENED
RELEASE, DISPOSAL, REMOVAL, OR CLEANUP OF ANY HAZARDOUS MATERIAL LOCATED ON,
ABOUT, WITHIN OR AFFECTING ANY OF THE PROPERTIES OF THE BORROWER OR ANY OF ITS
AFFILIATES, EXCEPT TO THE EXTENT THAT THE LOSS, DAMAGE, OR CLAIM IS THE DIRECT
RESULT OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE PERSON TO BE
INDEMNIFIED, OR (g) ANY INVESTIGATION, LITIGATION, OR OTHER PROCEEDING,
INCLUDING, WITHOUT LIMITATION, ANY THREATENED INVESTIGATION, LITIGATION, OR
OTHER PROCEEDING RELATING TO ANY OF THE FOREGOING, WHETHER BROUGHT BY ANY
RELATED PARTY, ANY CREDITOR OR ANY OTHER PERSON; BUT EXCLUDING ANY OF THE
FOREGOING TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF
THE PERSON TO BE INDEMNIFIED OR TO THE EXTENT THE AMOUNT OTHERWISE INDEMNIFIED
AGAINST IS PAYABLE TO THE BORROWER OR ANY OF ITS SUBSIDIARIES.  WITHOUT LIMITING
ANY PROVISION OF THIS AGREEMENT OR OF ANY OTHER LOAN DOCUMENT, IT IS THE EXPRESS
INTENTION OF THE PARTIES HERETO THAT EACH PERSON TO BE INDEMNIFIED UNDER THIS
SECTION 12.2 SHALL BE INDEMNIFIED FROM AND HELD HARMLESS AGAINST ANY AND ALL
LOSSES, LIABILITIES (INCLUDING, WITHOUT LIMITATION, ENVIRONMENTAL LIABILITIES),
CLAIMS, DAMAGES, PENALTIES, JUDGMENTS, DISBURSEMENTS, COSTS, AND EXPENSES
(INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEYS' FEES) ARISING OUT OF OR
RESULTING FROM THE SOLE OR CONTRIBUTORY NEGLIGENCE OF SUCH PERSON.  WITHOUT
PREJUDICE TO THE SURVIVAL OF ANY OTHER TERM OR PROVISION OF THIS AGREEMENT, THE
OBLIGATIONS OF THE BORROWER UNDER THIS SECTION 12.2 SHALL SURVIVE THE REPAYMENT
OF THE LOANS AND OTHER OBLIGATIONS AND TERMINATION OF THE COMMITMENTS.
<PAGE>

     Section 12.3  Limitation of Liability.  None of the Agent, any Lender, or
any Affiliate, officer, director, employee, attorney, or agent thereof shall be
liable for any error of judgment or act done in good faith, or be otherwise
liable or responsible under any circumstances whatsoever (including such
Person's negligence), except for such Person's gross negligence or willful
misconduct.  None of the Agent, any Lender, or any Affiliate, officer, director,
employee, attorney, or agent thereof shall have any liability with respect to,
and the Borrower hereby waives, releases, and agrees not to sue any of them
upon, any claim for any special, indirect, incidental, or consequential damages
suffered or incurred by any Related Party or any Affiliate any Related Party in
connection with, arising out of or in any way related to this Agreement or any
of the other Loan Documents, or any of the transactions contemplated by this
Agreement or any of the other Loan Documents.  The Borrower hereby waives,
releases, and agrees not to sue the Agent, any Lender, or any of their
respective Affiliates, officers, directors, employees, attorneys, or agents for
exemplary or punitive damages in respect of any claim in connection with,
arising out of or in any way related to this Agreement or any of the other Loan
Documents, or any of the transactions contemplated by this Agreement or any of
the other Loan Documents.

     Section 12.4  No Duty.  All attorneys, accountants, appraisers, and other
professional Persons and consultants retained by the Agent and the Lenders shall
have the right to act exclusively in the interest of the Agent and the Lenders
and shall have no duty of disclosure, duty of loyalty, duty of care, or other
duty or obligation of any type or nature whatsoever to any Related Party or any
of their respective Affiliates or any other Person.

     Section 12.5  No Fiduciary Relationship.  The relationship between the
Borrower and each Lender is solely that of debtor and creditor, and neither the
Agent nor any Lender has any fiduciary or other special relationship the
Borrower or any other Related Party or any of their respective Affiliates, and
no term, provision, or condition of any of the Loan Documents shall be construed
so as to deem the relationship between the Borrower and any Lender, between any
other Related Party and any Lender, or between any such Affiliate and any Lender
to be other than that of debtor and creditor.  No joint venture or partnership
is created by this Agreement among the Lenders or among the Borrower, any other
Related Party, or any of their respective Affiliates and the Lenders.

     Section 12.6  Equitable Relief.  The Borrower recognizes that, in the
event it fails to pay, perform, observe, or discharge any or all of the
Obligations, any remedy at law may prove to be inadequate relief to the Agent
and the Lenders.  The Borrower therefore agrees that the Agent and the Lenders,
if the Agent or the Lenders so request, shall be entitled to temporary and
permanent injunctive relief in any such case without the necessity of proving
actual damages.

     Section 12.7  No Waiver; Cumulative Remedies.  No failure on the part of
the Agent or any Lender to exercise and no delay in exercising, and no course of
dealing with respect to, any right, power, or privilege under this Agreement or
any other Loan Document shall operate as a waiver thereof, nor shall any single
or partial exercise of any right, power, or privilege under this Agreement or
any other Loan Document preclude any other or further exercise thereof or the
exercise of any other right, power, or privilege.  The rights and remedies
provided for in this Agreement and the other Loan Documents are cumulative and
not exclusive of any rights and remedies provided by law.
<PAGE>

     Section 12.8  Successors and Assigns.

             (a)   This Agreement shall be binding upon and inure to the benefit
     of the parties hereto and their respective successors and assigns. The
     Borrower may not assign or transfer any of its rights or obligations under
     this Agreement or any other Loan Document without the prior written consent
     of the Agent and the Lenders. Any Lender may sell participations in all or
     a portion of its rights and obligations under this Agreement and the other
     Loan Documents (including, without limitation, all or a portion of its
     Commitments and the Loans owing to it); provided, however, that (i) such
     Lender's obligations under this Agreement and the other Loan Documents
     (including, without limitation, its Commitments) shall remain unchanged,
     (ii) such Lender shall remain solely responsible to the Borrower for the
     performance of such obligations, (iii) such Lender shall remain the holder
     of its Notes for all purposes of this Agreement, (iv) the Borrower shall
     continue to deal solely and directly with such Lender in connection with
     such Lender's rights and obligations under this Agreement and the other
     Loan Documents, and (v) the Lenders shall not grant any participation under
     which the participant shall have the right to approve (or under which the
     consent of the participant must be obtained prior to the Lenders' being
     able to approve) any amendment or waiver of this Agreement or the other
     Loan Documents, except to the extent that such amendment or waiver (A)
     increases any Commitment, (B) reduces the interest rate or the amount of
     principal or fees applicable to the Loans or Commitments in which such
     participant is participating, (C) extends any Maturity Date, or (E)
     releases any Related Party from its monetary Obligations (if any) under any
     of the Loan Documents.

             (b)   The Borrower and each of the Lenders agree that any Lender
     (the "Assigning Lender") may at any time assign to one or more Eligible
     Assignees (each an "Assignee") all or any part of its rights and/or
     obligations under this Agreement and the other Loan Documents (including,
     without limitation, its Commitments and/or Loans); provided, however, that
     (i) each such assignment may be of a varying percentage of the Assigning
     Lender's rights and/or obligations under this Agreement and the other Loan
     Documents and may relate to some but not all of such rights and/or
     obligations, (ii) except in the case of (A) an assignment of all of a
     Lender's rights and obligations under this Agreement and the other Loan
     Documents or (B) an assignment by a Lender to an Affiliate of such Lender,
     to another Lender, the amount of the Commitment(s) and/or Loans of the
     Assigning Lender being assigned pursuant to each 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 calculated based upon
     the aggregate amount of the Commitment(s) and/or Loans assigned, and (iii)
     the parties to each such assignment shall execute and deliver to the Agent
     for its acceptance and recording in the Register (as defined below), an
     Assignment and Acceptance, together with the Note subject to such
     assignment, and a processing and recordation fee of $3,500. Upon such
     execution, delivery, acceptance, and recording, from and after the
     effective date specified in each Assignment and Acceptance, which effective
     date shall be at least five (5) Business Days after the execution thereof
     or such other date as may be approved by the Agent, (1) the Assignee
     thereunder shall be a party hereto as a "Lender" 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
     hereunder and under the other Loan Documents, and (2) the Assigning Lender
     thereunder shall, to the extent that rights and obligations hereunder have
     been assigned by it pursuant to such Assignment and Acceptance, relinquish
     its rights and be released from its obligations under this Agreement and
     the other Loan Documents (and, in the case of an Assignment and Acceptance
     covering all or the remaining portion of a Lender's rights and obligations
     under the Loan Documents, such Lender shall cease to be a party thereto,
     provided that such Lender's rights under Article 4, Section 12.1 and
     Section 12.2 accrued through the date of assignment shall continue).  At
     the Agent's request, the Borrower will use all commercially reasonable
     means to assist the Agent in connection with the Agent's efforts to assign
     Commitments and/or Loans under this Agreement.  Such assistance shall
     include, without limitation, making senior officers of the Borrower
     available for meetings with prospective Lenders and participants and
     providing (in a timely manner) such other assistance as may be reasonably
     requested by the Agent and/or its advisors, including, without limitation,
     providing information to and responding to inquiries from such prospective
     Lenders and participants with respect to the businesses, operations,
     business plan, financial condition, and results of operations of the
     Borrower.

             (c)   By executing and delivering an Assignment and Acceptance, the
     Assigning Lender thereunder and the Assignee thereunder confirm to and
     agree with each other and the other parties hereto as follows: (i) other
     than as provided in such Assignment and Acceptance, such Assigning Lender
     makes no representation or warranty and assumes no responsibility with
     respect to any statements, warranties, or representations made in or in
     connection with the Loan Documents or the execution, legality, validity,

<PAGE>

     enforceability, genuineness, sufficiency, or value of the Loan Documents or
     any other instrument or document furnished pursuant thereto; (ii) such
     Assigning Lender makes no representation or warranty and assumes no
     responsibility with respect to the financial condition or results of
     operations of the Borrower, any other Related Party or any of their
     respective Affiliates or the performance or observance by the Borrower, any
     other Related Party, or any of their respective Affiliates of any of their
     respective obligations under the Loan Documents; (iii) such Assignee
     confirms that it has received a copy of the Loan Documents, together with
     copies of the most recent financial statements delivered by the Borrower
     pursuant to Section 7.1 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 the Agent or such Assigning Lender and based on
     such documents and information as it shall deem appropriate at the time,
     continue to make its own credit decisions in taking or not taking action
     under this Agreement and the other Loan Documents; (v) such Assignee
     confirms that it is an Eligible Assignee; (vi) such Assignee appoints and
     authorizes the Agent to take such action as agent on its behalf and
     exercise such powers under the Loan Documents as are delegated to the Agent
     by the terms thereof, together with such powers as are reasonably
     incidental thereto; and (vii) such Assignee agrees that it will perform in
     accordance with their terms all of the obligations which by the terms of
     the Loan Documents are required to be performed by it as a Lender.

             (d)   The Agent shall maintain at its Principal Office 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 Lenders and
     the Commitments of, and principal amount of the Loans owing to, each Lender
     from time to time (the "Register"). The entries in the Register shall be
     conclusive and binding for all purposes, absent manifest error, the
     Borrower, the Agent, and the Lenders may treat each Person whose name is
     recorded in the Register as a Lender hereunder for all purposes under the
     Loan Documents. The Register shall be available for inspection by the
     Borrower or any Lender at any reasonable time and from time to time upon
     reasonable prior notice.

             (e)   Upon its receipt of an Assignment and Acceptance executed by
     an Assigning Lender and Assignee representing that it is an Eligible
     Assignee, together with the Note(s) subject to such assignment, the Agent
     shall, if such Assignment and Acceptance has been completed, (i) accept
     such Assignment and Acceptance, (ii) record the information contained
     therein in the Register, and (iii) give prompt written notice thereof to
     the Borrower. Within five (5) Business Days after its receipt of such
     notice, the Borrower, at the Borrower's expense, shall execute and deliver
     to the Agent in exchange for each surrendered Note evidencing the Loans
     assigned, a new Note evidencing such Loans payable to the order of such
     Eligible Assignee in an amount equal to such Loans assigned to it and, if
     the Assigning Lender has retained any Loans, a new Note evidencing each
     such Loans payable to the order of the Assigning Lender in the amount of
     such Loans retained by it (each such promissory note shall constitute a
     "Note" for purposes of the Loan Documents). Such new Notes shall be dated
     the effective date of such Assignment and Acceptance and shall otherwise be
     in substantially the form of Exhibit B-1 or Exhibit B-2, as applicable.

             (f)   Any Lender may, in connection with any assignment or
     participation or proposed assignment or participation pursuant to this
     Section 12.8, disclose to the Assignee or participant or proposed Assignee
     or participant any information relating to the Borrower, any other Related
     Party, or any of their respective Affiliates furnished to such Lender by
     the Borrower, any other Related Party or any of their respective
     Affiliates; provided that each such actual or proposed Assignee or
     participant shall agree to maintain the confidentiality of any information
     provided in connection with such proposed assignment.

             (g)   Any Lender may assign and pledge any Note held by it to any
     Federal Reserve Bank or the U.S. Treasury as collateral security pursuant
     to Regulation A of the Board of Governors of the Federal Reserve System and
     any operating circular issued by such Federal Reserve System and/or Federal
     Reserve Bank; provided, however, that any payment made by the Borrower for
     the benefit of such assigning and/or pledging Lender in accordance with the
     terms of the Loan Documents shall satisfy the Borrower's obligations under
     the Loan Documents in respect thereof to the extent of such payment. No
     such assignment and/or pledge shall release the assigning and/or pledging
     Lender from its obligations hereunder.

             (h)   Notwithstanding any other provision of this Agreement (other
     than Section 12.8(g)), Bank of America agrees that it will at all times
     during the term of this Agreement hold, free and clear of any participation
     or other interest therein, the entire Revolving Loans B Commitment and the
     Revolving
<PAGE>

     Loans B outstanding thereunder; provided that in the event that
     any Event of Default occurs hereunder, the provisions of this Section
     12.8(h) shall no longer be of any force or effect.

     Section 12.9  Survival.  All representations and warranties made or
deemed made in this Agreement or any other Loan Document or in any document,
statement, or certificate furnished in connection with this Agreement shall
survive the execution and delivery of this Agreement and the other Loan
Documents and the making of the Loans, and no investigation by the Agent or any
Lender or any closing shall affect the representations and warranties or the
right of the Agent or any Lender to rely upon them.  Without prejudice to the
survival of any other obligation of the Borrower hereunder, the obligations of
the Borrower under Article 4, Section 12.1, and Section 12.2 shall survive
repayment of the Loans and the Reimbursement Obligations, termination of the
Commitments, and payment of the other Obligations.

     Section 12.10  Entire Agreement.  THIS WRITTEN AGREEMENT SUPERSEDES ANY
AND ALL PRIOR COMMITMENTS (INCLUDING, WITHOUT LIMITATION, ANY COMMITMENT
LETTER), TERM SHEETS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER
WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF.  THIS WRITTEN AGREEMENT
(INCLUDING, WITHOUT LIMITATION, THE NOTES, AND THE OTHER LOAN DOCUMENTS REFERRED
TO HEREIN) REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE
PARTIES.

     Section 12.11  Amendments.  No amendment or waiver of any provision of
this Agreement, the Notes or any other Loan Document to which the Borrower is a
party, nor any consent to any departure by the Borrower therefrom, shall in any
event be effective unless the same shall be agreed or consented to by the
Required Lenders and the Borrower in writing, and each such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given; provided, however, that no amendment, waiver, or consent shall,
unless in writing and signed by all affected Lenders and the Borrower, do any of
the following: (a) increase the Commitments of the Lenders (or any Lender) or
subject the Lenders to any additional obligations; (b) reduce the principal of,
or interest on, the Loans and the Reimbursement Obligations or any fees or other
amounts payable hereunder; (c) postpone any date fixed for any payment
(including, without limitation, any mandatory prepayment) of principal of, or
interest on, the Loans and the Reimbursement Obligations or any fees or other
amounts payable hereunder; (d) change the Commitment Percentages or the
aggregate unpaid principal amount of the Loans or the number or interests of the
Lenders which shall be required for the Lenders or any of them to take any
action under this Agreement; or (e) change any provision contained in Section
3.2, Section 3.3, or this Section 12.11 or modify the definition of "Required
Lenders" contained in Section 1.1; and provided further, however, that no
amendment, waiver, or consent relating to Sections 11.1, 11.2, 11.3, 11.4, or
11.5 shall require the agreement of the Borrower.  Notwithstanding anything to
the contrary contained in this Section 12.11, no amendment, waiver, or consent
shall be made with respect to (i) Article 11 without the prior written consent
of the Agent, (ii) any condition precedent set forth in Article 5 with respect
to the making of any Loans without the prior written consent of the Lenders that
hold, at the time of such amendment, waiver, or consent (A) with respect to any
condition precedent to the making of any Loan under the Revolving Loans A
Commitments, at least a majority (in Dollar amount) of the outstanding Revolving
Loans A Commitments and (B) with respect to any condition precedent to the
making of any Loan under the Revolving Loans B Commitment, Bank of America,
(iii) the interest rate applicable to the Revolving Loans A or the Maturity Date
of the Revolving Loans A, in each case without the prior written consent of the
Lenders that hold, at the time of such amendment, waiver, or consent, at least a
majority (in Dollar amount) of the outstanding Revolving Loans A Commitments, or
(iv) the interest rate applicable to the Revolving Loans B or the Maturity Date
of the Revolving Loans B, in each case without the prior written consent of Bank
of America.

     Section 12.12  Maximum Interest Rate.

             (a)    No interest rate specified in any Loan Document (the
     "Contract Rate") shall at any time exceed the Maximum Rate. If at any time
     the Contract Rate for any Obligation shall exceed the Maximum Rate, thereby
     causing the interest accruing on such Obligation to be limited to the
     Maximum Rate, then any subsequent reduction in the Contract Rate for such
     Obligation shall not reduce the rate of interest on such Obligation below
     the Maximum Rate until the aggregate amount of interest accrued on such
     Obligation equals the aggregate amount of interest which would have accrued
     on such Obligation if the Contract Rate for such Obligation had at all
     times been in effect.
<PAGE>

             (b)   No provision of any Loan Document shall require the payment
     or the collection of interest in excess of the Maximum Rate. If any excess
     of interest in such respect is hereby provided for, or shall be adjudicated
     to be so provided, in any Loan Document or otherwise in connection with
     this loan transaction, the provisions of this Section shall govern and
     prevail and neither the Borrower nor the sureties, guarantors, successors,
     or assigns of the Borrower (if any) shall be obligated to pay the excess
     amount of such interest or any other excess sum paid for the use,
     forbearance, or detention of sums loaned pursuant hereto. In the event any
     Lender ever receives, collects, or applies as interest any such sum, such
     amount which would be in excess of the Maximum Rate shall be applied as a
     payment and reduction of the principal of the Obligations, and, if the
     principal of the Obligations has been paid in full, any remaining excess
     shall forthwith be paid to the Borrower. In determining whether or not the
     interest paid or payable exceeds the Maximum Rate, the Borrower and each
     Lender shall, to the extent permitted by applicable law, (a) characterize
     any non-principal payment as an expense, fee, or premium rather than as
     interest, (b) exclude voluntary prepayments and the effects thereof, and
     (c) amortize, prorate, allocate, and spread in equal or unequal parts the
     total amount of interest throughout the entire contemplated term of the
     Obligations so that interest for the entire term does not exceed the
     Maximum Rate.

             (c)   The provisions of Chapter 346 of the Texas Finance Code are
     specifically declared by the parties hereto not to be applicable to any
     Loan Documents or to the transactions contemplated thereby.

     Section 12.13  Notices.  All notices and other communications provided
for in any Loan Document shall be given or made in writing and telecopied,
mailed by certified mail return receipt requested, or delivered to the intended
recipient at the "Address for Notices" specified below its name on the signature
pages hereof, or with respect to a Lender not a party to this Agreement on the
Closing Date, in its Assignment and Acceptance, or, as to any party at such
other address as shall be designated by such party in a notice to each other
party given in accordance with this Section.  Except as otherwise provided in
any Loan Document, all such communications shall be deemed to have been duly
given when transmitted by telecopy, subject to telephone confirmation of
receipt, or when personally delivered or, in the case of a mailed notice, five
(5) Business Days after being duly deposited in the mails, in each case given or
addressed as aforesaid; provided, however, notices to the Agent pursuant to
Section 2.9 or Section 2.14 shall not be effective until received by the Agent.
Any agreement of the Agent and the Lenders herein to receive certain notices by
telephone or telecopy is solely for the convenience and at the request of the
Borrower.  The Agent, the Lenders, and the Issuing Bank shall be entitled to
rely on the authority of any Person purporting to be a Person authorized by the
Borrower to give such notice and neither the Agent, any Lender, nor the Issuing
Bank shall have any liability to the Borrower or any other Person on account of
any action taken or not taken by the Agent, any Lender, or the Issuing Bank in
reliance upon such telephonic or telecopy notice.  The obligation of the
Borrower to repay the Loans and pay the Reimbursement Obligations shall not be
affected in any way or to any extent by any failure of the Agent, any Lender, or
the Issuing Bank to receive written confirmation of any telephonic or telecopy
notice or the receipt by the Agent, any Lender, or the Issuing Bank of a
confirmation which is at variance with the terms understood by the Agent, such
Lender, or the Issuing Bank to be contained in such telephonic or telecopy
notice.

     Section 12.14  Governing Law; Venue; Service of Process.  THIS AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
TEXAS AND THE APPLICABLE LAWS OF THE U.S.  ANY ACTION OR PROCEEDING AGAINST THE
BORROWER UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
MAY BE BROUGHT IN ANY TEXAS STATE COURT LOCATED IN SMITH COUNTY, TEXAS OR
FEDERAL COURT IN THE NORTHERN DISTRICT OF TEXAS.  THE BORROWER IRREVOCABLY (a)
SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURTS, AND (b) WAIVES ANY
OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH ACTION OR
PROCEEDING BROUGHT IN SUCH COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM.
THE BORROWER AGREES THAT SERVICE OF PROCESS UPON IT MAY BE MADE BY CERTIFIED OR
REGISTERED MAIL, RETURN RECEIPT REQUESTED, AT ITS ADDRESS SPECIFIED OR
DETERMINED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 12.13.  NOTHING IN THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL AFFECT THE RIGHT OF THE AGENT OR ANY
LENDER TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE
RIGHT OF THE AGENT OR ANY LENDER TO BRING ANY ACTION OR PROCEEDING AGAINST THE
BORROWER OR WITH RESPECT TO ANY OF ITS PROPERTY IN COURTS IN OTHER
JURISDICTIONS.  ANY ACTION OR PROCEEDING BY THE BORROWER OR ANY OTHER RELATED
PARTY AGAINST THE AGENT OR ANY LENDER SHALL BE BROUGHT ONLY IN A COURT LOCATED
IN SMITH COUNTY, TEXAS.
<PAGE>

     Section 12.15  Waiver of Jury Trial.  TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND EXPRESSLY
WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM
(WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO
ANY OF THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY OR THE
ACTIONS OF THE AGENT OR ANY LENDER IN THE NEGOTIATION, ADMINISTRATION, OR
ENFORCEMENT THEREOF.

     Section 12.16  Counterparts.  This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     Section 12.17  Severability.  Any provision of this Agreement held by a
court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Agreement and the effect thereof shall be
confined to the provision held to be invalid or illegal.

     Section 12.18  Headings.  The headings, captions and arrangements used in
this Agreement are for convenience only and shall not affect the interpretation
of this Agreement.

     Section 12.19  Construction.  The Borrower, the Agent, and each Lender
acknowledges that it has had the benefit of legal counsel of its own choice and
has been afforded an opportunity to review this Agreement and the other Loan
Documents with its legal counsel and that this Agreement and the other Loan
Documents shall be construed as if jointly drafted by the parties hereto.

     Section 12.20  Independence of Covenants.  All covenants hereunder shall
be given independent effect so that if a particular action or condition is not
permitted by any of such covenants, the fact that it would be permitted by an
exception to, or be otherwise within the limitations of, another covenant shall
not avoid the occurrence of a Default if such action is taken or such condition
exists.

     Section 12.21  Approvals and Consent.  Except as may be expressly
provided to the contrary in this Agreement or in the other Loan Documents (as
applicable), in any instance under this Agreement or the other Loan Documents
where the approval, consent, or exercise of judgment of the Agent or any Lender
is requested or required, (a) the granting or denial of such approval or consent
and the exercise of such judgment shall be within the sole discretion of the
Agent or such Lender, respectively, and the Agent and such Lender shall not, for
any reason or to any extent, be required to grant such approval or consent or to
exercise such judgment in any particular manner, regardless of the
reasonableness of the request or the action or judgment of the Agent or such
Lender, and (b) no approval or consent of the Agent or any Lender shall in any
event be effective unless the same shall be in writing and the same shall be
effective only in the specific instance and for the specific purpose for which
given.
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as
of the day and year first above written.

                              BORROWER:
                              --------

                              LUFKIN INDUSTRIES, INC.

                              By:        /s/ R. D. Leslie
                                 -----------------------
                              Name:      R. D. Leslie
                                    ---------------------
                              Title: Treasurer/Director of Financial Operations
                                     ------------------------------------------

                              Address for Notices:
                              -------------------

                              601 South Raguet
                              Lufkin, Texas 75901
                              Attn:  Brad Brenneman
                              Telecopy No.:  409-637-5565
<PAGE>

                                    AGENT:
                                    -----

                                    BANK OF AMERICA, NATIONAL ASSOCIATION

                                    By:      /s/ Roger Harrison
                                        -----------------------
                                    Name:        Roger Harrison
                                          ---------------------
                                    Title:       Vice President
                                           --------------------

                                    Address for Notices:
                                    --------------------
                                    110 North  College  Street
                                    Tyler, Texas 75702
                                    Attn:           Roger D. Harrison
                                    Telecopy No.:   903-535-5690
<PAGE>

                                    LENDERS:
                                    --------
Commitments:                        BANK OF AMERICA, NATIONAL
------------                        ASSOCIATION

Revolving Loans A Commitment
      $20,000,000

Revolving Loans B Commitment        By:     /s/ Roger Harrison
      $5,000,000                        -----------------------
                                    Name:       Roger Harrison
                                          ---------------------
                                    Title:      Vice President
                                           --------------------

<TABLE>
<CAPTION>

                                    Address for Notices:
                                    -------------------
<S>                                 <C>
                                    110 North College
                                    Tyler, Texas 75710
                                    Attn:  Roger D. Harrison
                                    Telecopy No.:  903-535-5690

                                    Applicable Lending Office for Prime Rate Loans,
                                    -----------------------------------------------
                                    Fed Funds Rate Loans, and Libor Rate Loans:
                                    -------------------------------------------

                                    110 North College
                                    Tyler, Texas 75710
                                    Attn:  Roger D. Harrison
                                    Telecopy No.:  903-535-5690
</TABLE>

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