Document:

<PAGE>   1
                                                                   EXHIBIT 10.12

                            364-DAY CREDIT AGREEMENT

                                      among

                         DUKE ENERGY FIELD SERVICES, LLC
                                       and
                     DUKE ENERGY FIELD SERVICES CORPORATION
                                  as Borrowers,

                          THE LENDERS IDENTIFIED HEREIN

                                       AND

                             BANK OF AMERICA, N.A.,
                                    as Agent,

                      MORGAN STANLEY SENIOR FUNDING, INC.,
                              as Syndication Agent

                                       AND

                        MERRILL LYNCH CAPITAL CORPORATION
                                       and
                   MORGAN GUARANTY TRUST COMPANY OF NEW YORK,
                           as Co-Documentation Agents

                           DATED AS OF MARCH 31, 2000

                                  Arranged by:

                         BANC OF AMERICA SECURITIES LLC,
                   as Sole Lead Arranger and Sole Book Manager

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<S>               <C>                                                                                            <C>
SECTION 1.  DEFINITIONS AND ACCOUNTING TERMS......................................................................1
         1.1      Definitions.....................................................................................1
         1.2      Computation of Time Periods....................................................................11
         1.3      Accounting Terms...............................................................................11
         1.4      Time...........................................................................................11

SECTION 2.  LOANS................................................................................................12
         2.1      Revolving-A Loan Commitment....................................................................12
         2.2      Revolving-B Loan Commitment....................................................................12
         2.3      Method of Borrowing for Loans..................................................................12
         2.4      Funding of Loans...............................................................................13
         2.5      Continuations and Conversions..................................................................13
         2.6      Minimum Amounts................................................................................14
         2.7      Reductions of Revolving Loan Commitments.......................................................14
         2.8      Notes..........................................................................................15
         2.9      Joint and Several Liability of the Borrowers...................................................15
         2.10     Limitation of Liability of Borrowers...........................................................16

SECTION 3.  PAYMENTS.............................................................................................17
         3.1      Interest.......................................................................................17
         3.2      Prepayments....................................................................................18
         3.3      Payment in full at Maturity....................................................................19
         3.4      Facility Fees..................................................................................19
         3.5      Place and Manner of Payments...................................................................19
         3.6      Pro Rata Treatment.............................................................................20
         3.7      Computations of Interest and Fees..............................................................20
         3.8      Sharing of Payments............................................................................21
         3.9      Evidence of Debt...............................................................................22

SECTION 4.  ADDITIONAL PROVISIONS REGARDING LOANS................................................................22
         4.1      Eurodollar Loan Provisions.....................................................................22
         4.2      Capital Adequacy...............................................................................25
         4.3      Compensation...................................................................................25
         4.4      Taxes..........................................................................................26

SECTION 5.  CONDITIONS PRECEDENT.................................................................................29
         5.1      Closing Conditions.............................................................................29
         5.2      Conditions to Loans............................................................................31

SECTION 6.  REPRESENTATIONS AND WARRANTIES.......................................................................32
         6.1      Organization and Good Standing.................................................................32
         6.2      Due Authorization..............................................................................32
         6.3      No Conflicts...................................................................................32
         6.4      Consents.......................................................................................32
</TABLE>

                                        i

<PAGE>   3

<TABLE>
<S>               <C>                                                                                            <C>
         6.5      Enforceable Obligations........................................................................33
         6.6      Financial Condition............................................................................33
         6.7      Taxes..........................................................................................33
         6.8      Compliance with Law............................................................................33
         6.9      Use of Proceeds; Margin Stock..................................................................33
         6.10     Government Regulation..........................................................................34
         6.11     Solvency.......................................................................................34
         6.12     Environmental Matters..........................................................................34
         6.13     Material Subsidiaries..........................................................................34

SECTION 7.  AFFIRMATIVE COVENANTS................................................................................34
         7.1      Information Covenants..........................................................................34
         7.2      Preservation of Existence and Franchises.......................................................37
         7.3      Books and Records..............................................................................37
         7.4      Compliance with Law............................................................................37
         7.5      Payment of Taxes and Other Indebtedness........................................................37
         7.6      Maintenance of Property; Insurance.............................................................37
         7.7      Use of Proceeds................................................................................38
         7.8      Audits/Inspections.............................................................................38
         7.9      Maintenance of Ownership.......................................................................38

SECTION 8.  NEGATIVE COVENANTS...................................................................................38
         8.1      Nature of Business.............................................................................39
         8.2      Liens..........................................................................................39
         8.3      Consolidation and Merger.......................................................................41
         8.4      Sale or Lease of Assets........................................................................41
         8.5      Transactions with Affiliates...................................................................41

SECTION 9.  EVENTS OF DEFAULT....................................................................................42
         9.1      Events of Default..............................................................................42
         9.2      Acceleration; Remedies.........................................................................44
         9.3      Allocation of Payments After Event of Default..................................................45

SECTION 10  AGENCY PROVISIONS....................................................................................45
         10.1     Appointment....................................................................................45
         10.2     Delegation of Duties...........................................................................46
         10.3     Exculpatory Provisions.........................................................................46
         10.4     Reliance on Communications.....................................................................47
         10.5     Notice of Default..............................................................................47
         10.6     Non-Reliance on Agent and Other Lenders........................................................47
         10.7     Indemnification................................................................................48
         10.8     Agent in Its Individual Capacity...............................................................48
         10.9     Successor Agent................................................................................48

SECTION 11.  MISCELLANEOUS.......................................................................................49
         11.1     Notices........................................................................................49
         11.2     Right of Set-Off...............................................................................49
</TABLE>

                                       ii

<PAGE>   4

<TABLE>
<S>               <C>                                                                                            <C>
         11.3     Benefit of Agreement...........................................................................50
         11.4     No Waiver; Remedies Cumulative.................................................................52
         11.5     Payment of Expenses, etc. .....................................................................53
         11.6     Amendments, Waivers and Consents...............................................................53
         11.7     Counterparts/Telecopy..........................................................................54
         11.8     Headings.......................................................................................54
         11.9     Defaulting Lender..............................................................................55
         11.10    Survival of Indemnification and Representations and Warranties.................................55
         11.11    Governing Law; Venue...........................................................................55
         11.12    Waiver of Jury Trial; Waiver of Consequential Damages..........................................55
         11.13    Severability...................................................................................56
         11.14    Further Assurances.............................................................................56
         11.15    Entirety.......................................................................................56
         11.16    Binding Effect; Continuing Agreement...........................................................56
</TABLE>

SCHEDULES

Schedule 1.1               Commitment Percentages
Schedule 6.13              Material Subsidiaries
Schedule 8.2               Liens
Schedule 8.4               Scheduled Asset Sales
Schedule 11.1              Notices

EXHIBITS

Exhibit 2.3                Form of Notice of Borrowing
Exhibit 2.5                Form of Notice of Continuation/Conversion
Exhibit 2.8(a)             Form of Revolving-A Loan Note
Exhibit 2.8(b)             Form of Revolving-B Loan Note
Exhibit 11.3(b)            Form of Assignment Agreement

                                      iii

<PAGE>   5

                            364-DAY CREDIT AGREEMENT

         THIS 364-DAY CREDIT AGREEMENT (this "Credit Agreement"), dated as of
March 31, 2000, is entered into among DUKE ENERGY FIELD SERVICES, LLC, a
Delaware limited liability company and DUKE ENERGY FIELD SERVICES CORPORATION, a
Delaware corporation (individually, a "Borrower" and collectively, the
"Borrowers"), the Lenders (as defined herein) and BANK OF AMERICA, N.A., as
administrative agent for the Lenders (in such capacity, the "Agent").

                                    RECITALS

         WHEREAS, the Borrowers have requested that the Lenders make available
to them a revolving credit facility in the aggregate amount of $2.8 billion for
the purposes set forth herein; and

         WHEREAS, the Lenders have agreed to provide the requested revolving
credit facility to the Borrowers on the terms, and subject to the conditions,
set forth herein.

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

                                   SECTION 1.

                        DEFINITIONS AND ACCOUNTING TERMS

         1.1 DEFINITIONS.

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

                  "Adjusted Eurodollar Rate" means the Eurodollar Rate plus (a)
         from the Closing Date until 90 days subsequent to the Closing Date,
         .50% per annum and (b) from the date 91 days subsequent to the Closing
         Date and thereafter, .625% per annum.

                  "Affiliate" means, with respect to any Person, any other
         Person directly or indirectly controlling, controlled by or under
         direct or indirect common control with such Person. A Person shall be
         deemed to control a corporation if such Person possesses, directly or
         indirectly, the power to direct or cause direction of the management
         and policies of such corporation, whether through the ownership of
         voting securities, by contract or otherwise.

                  "Agency Services Address" means Bank of America, N.A., 901
         Main Street, 14th Floor, Dallas, Texas 75202, or such other address as
         may be identified by written notice from the Agent to the Borrowers and
         the Lenders.

<PAGE>   6

                  "Agent" means Bank of America, N.A. and any successors and
         assigns in such capacity.

                  "Approved Officer" means the president, a vice president, the
         treasurer or the assistant treasurer of the Borrowers or such other
         representative of the Borrowers as may be designated by any one of the
         foregoing with consent of the Agent.

                  "Bankruptcy Code" means the Bankruptcy Code in Title 11 of the
         United States Code, as amended, modified, succeeded or replaced from
         time to time.

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

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

                  "Borrowers" means, subject to Section 2.10, Duke Energy Field
         Services, LLC, a Delaware limited liability company and Duke Energy
         Field Services Corporation, a Delaware corporation and "Borrower" means
         either of them.

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

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

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

                                       2
<PAGE>   7

                  "Change of Control" means the acquisition, directly or
         indirectly, beneficially or of record by any person or group (within
         the meaning of the Exchange Act), other than Duke Energy Corporation or
         Phillips Petroleum, of more than 50% of the Voting Stock of either
         Borrower.

                  "Closing Date" means the date hereof.

                  "Code" means the Internal Revenue Code of 1986, as amended
         from time to time.

                  "Commitment Percentages" means the Revolving-A Loan Commitment
         Percentage and the Revolving-B Loan Commitment Percentage, individually
         or collectively, as appropriate.

                  "Commitments" means, collectively, the Revolving-A Loan
         Commitment and the Revolving-B Loan Commitment of each Lender.

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

                  "Credit Exposure" means, as applied to each Lender (a) at any
         time prior to the termination of the Commitments, the Revolving-A Loan
         Commitment Percentage of such Lender multiplied by the Revolving-A Loan
         Commitment plus the Revolving-B Loan Commitment Percentage of such
         Lender multiplied by the Revolving-B Loan Commitment and (b) at any
         time after the termination of the Commitments, the sum of the principal
         balance of the outstanding Loans of such Lender.

                  "Debt Issuance" means the issuance of any Indebtedness for
         borrowed money by a Borrower, other than the issuance of commercial
         paper.

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

                  "Defaulting Lender" means, at any time, any Lender that, at
         such time (a) has failed to make a Loan required pursuant to the term
         of this Credit Agreement, (b) has failed to pay to the Agent or any
         Lender an amount owed by such Lender pursuant to the terms of this
         Credit Agreement or (c) has been deemed insolvent by a court of
         competent jurisdiction or has become subject to a bankruptcy or
         insolvency proceeding or to a receiver, trustee or similar official.

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

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

                                       3
<PAGE>   8

                  "Eligible Assignee" means (a) a Lender and (b) any other
         Person approved by (i) the Borrowers in their sole discretion (or if
         subsequent to August 1, 2000, there remains any outstanding Revolving-B
         Loans or the Revolving-B Loan Commitment has not been terminated,
         approved by the Borrowers, such approval not to be unreasonably
         withheld or delayed) and (ii) the Agent (such approval not to be
         unreasonably withheld or delayed); provided that (A) the Borrowers'
         consent is not required during the existence and continuation of an
         Event of Default and (B) neither a Borrower nor an Affiliate of a
         Borrower shall qualify as an Eligible Assignee.

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

                  "Equity Issuance" means any issuance by a Borrower of Capital
         Stock, including, without limitation, pursuant to the exercise of
         options (other than employee stock options in the ordinary course of
         business) or warrants or pursuant to the conversion of debt securities
         to equity but excluding, if any, any issuance of Capital Stock to a
         Subsidiary of Phillips Petroleum Company as a result of and at the time
         of the merger of a Subsidiary of Phillips Petroleum into Duke Energy
         Field Services Corporation.

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

                  "ERISA Affiliate" means an entity, whether or not
         incorporated, which is under common control with a Borrower or any of
         its Subsidiaries within the meaning of

                                       4
<PAGE>   9

         Section 4001(a)(14) of ERISA, or is a member of a group which includes
         a Borrower or any of its Subsidiaries and which is treated as a single
         employer under Sections 414(b), (c), (m), or (o) of the Code.

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

                  "Eurodollar Rate" means with respect to any Eurodollar Loan,
         for the Interest Period applicable thereto, a rate per annum equal to
         the London Interbank Offered Rate.

                  "Eurodollar Reserve Percentage" means, for any day, that
         percentage (expressed as a decimal) which is in effect from time to
         time under Regulation D of the Board of Governors of the Federal
         Reserve System (or any successor), as such regulation may be amended
         from time to time or any successor regulation, as the maximum reserve
         requirement (including, without limitation, any basic, supplemental,
         emergency, special, or marginal reserves) applicable with respect to
         Eurocurrency liabilities, as that term is defined in Regulation D (or
         against any other category of liabilities that includes deposits by
         reference to which the interest rate of Eurodollar Loans is
         determined).

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

                  "Exchange Act" means the Securities Exchange Act of 1934, as
         amended, and the rules and regulations promulgated thereunder, as
         amended, modified, succeeded or replaced from time to time.

                  "Extension of Credit" means, as to any Lender, the making of a
         Loan by such Lender (or a participation therein by a Lender).

                  "Facility Fees" has the meaning specified in Section 3.4.

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

                  "Federal Funds Rate" means for any day the rate per annum
         (rounded upward to the nearest 1/100th 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 such
         day 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 and
         (b) if no such rate is so published on such next succeeding Business
         Day, the Federal Funds Rate for such day shall be the average rate
         quoted to the Agent on such day on such transactions as determined by
         the Agent.

                  "Floating Eurodollar Rate" means, on any date of
         determination, the Eurodollar Rate for a one-month period plus .50% per
         annum.

                                       5
<PAGE>   10

                  "Floating Eurodollar Rate Loan" means a Loan accruing interest
         at the Floating Eurodollar Rate.

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

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

                  "Indebtedness" of any Person means, without duplication, (a)
         all obligations of such Person for borrowed money, (b) all obligations
         of such Person for the deferred purchase price of property or services
         purchased, (c) all obligations of such Person created or arising under
         any conditional sale or other title retention agreement with respect to
         the property acquired, (d) all obligations of such Person under lease
         obligations which shall have been, or should be, in accordance with
         GAAP, recorded as capital leases in respect of which such Person is
         liable as lessee, (e) the face amount of all letter of credit
         indebtedness available to be drawn (other than letter of credit
         obligations relating to indebtedness included in Indebtedness pursuant
         to another clause of this definition) and, without duplication, the
         unreimbursed amount of all drafts drawn thereunder, (f) obligations
         secured by a Lien on property or assets of such Person, whether or not
         assumed (but in any event not exceeding the fair market value of the
         property or asset), (g) all guarantees of Indebtedness referred to in
         clauses (a) through (f) above, (h) all amounts payable by such Person
         in connection with mandatory redemptions or repurchases of preferred
         stock, and (i) any obligations of such Person (in the nature of
         principal or interest) in respect of acceptances or similar obligations
         issued or created for the account of such Person.

                  "Interest Payment Date" means (a) as to Base Rate Loans and
         Floating Eurodollar Rate Loans, the first day of each fiscal quarter of
         the Borrowers and the Maturity Date and (b) as to Eurodollar Loans, the
         last day of each applicable Interest Period and the Maturity Date and,
         in addition, where the applicable Interest Period for a Eurodollar Loan
         is greater than three months, then also on the last day of each
         three-month period during such Interest Period. If an Interest Payment
         Date falls on a date which is not a Business Day, such Interest Payment
         Date shall be deemed to be the next succeeding Business Day, except
         that in the case of Eurodollar Loans where the next succeeding Business
         Day falls in the next succeeding calendar month, then on the next
         preceding Business Day.

                  "Interest Period" means, with respect to Eurodollar Loans, a
         period of one, two, three or six months' duration, as the Borrowers may
         elect, commencing, in each case, on the date of the borrowing
         (including continuations and conversions of Eurodollar Loans);
         provided, however, (a) if any Interest Period would end on a day which
         is not a Business Day, such Interest Period shall be extended to the
         next succeeding Business Day (except that where the next succeeding
         Business Day falls in the next succeeding calendar month, then on the
         next preceding Business Day), (b) no Interest Period shall extend
         beyond the

                                       6
<PAGE>   11

         Maturity Date and (c) where an Interest Period begins on a day for
         which there is no numerically corresponding day in the calendar month
         in which the Interest Period is to end, such Interest Period shall end
         on the last Business Day of such calendar month.

                  "Lender" means any of the Revolving-A Lenders or the
         Revolving-B Lenders.

                  "Lien" means any mortgage, pledge, hypothecation, assignment,
         deposit arrangement, security interest, encumbrance, lien (statutory or
         otherwise), preference, priority or charge of any kind (including any
         agreement to give any of the foregoing, any conditional sale or other
         title retention agreement, any financing or similar statement or notice
         filed under the Uniform Commercial Code as adopted and in effect in the
         relevant jurisdiction or other similar recording or notice statute, and
         any lease in the nature thereof).

                  "Loans" means the Revolving-A Loans and the Revolving-B Loans.

                  "London Interbank Offered Rate" means, with respect to any
         Eurodollar Loan for the Interest Period applicable thereto, the rate of
         interest per annum appearing on Telerate 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 Business Days prior to the
         first day of such Interest Period for a term comparable to such
         Interest Period; provided, however, if more than one rate is specified
         on Telerate Page 3750, the applicable rate shall be the arithmetic mean
         of all such rates. If, for any reason, such rate is not available, the
         term "London Interbank Offered Rate" shall mean, with respect to any
         Eurodollar Loan for the Interest Period applicable thereto, the rate of
         interest per annum appearing on such other service as may be nominated
         by the British Bankers' Association as the London interbank offered
         rate for deposits in Dollars at approximately 11:00 A.M. (London time)
         two Business Days prior to the first day of such Interest Period for a
         term comparable to such Interest Period; provided, however, if more
         than one rate is specified, the applicable rate shall be the arithmetic
         mean of all such rates.

                  "Material Adverse Effect" means a material adverse effect on
         the business, financial positions or results of operations of the
         Borrowers and their Subsidiaries taken as a whole.

                  "Material Subsidiary" means any Subsidiary of the Borrowers
         that, together with its Subsidiaries, owns in excess of 10% of the
         consolidated assets of the Borrowers and their Subsidiaries.

                  "Maturity Date" means March 30, 2001.

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

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

                                       7
<PAGE>   12

                  "Net Cash Proceeds" means the gross cash proceeds received
         from a Debt Issuance or an Equity Issuance, net of transaction costs
         payable to third parties (rounded downward to the nearest $1,000,000).

                  "Notes" means the Revolving-A Loan Notes and the Revolving-B
         Loan Notes, individually or collectively, as appropriate.

                  "Notice of Borrowing" means a request by the Borrowers for a
         Loan in the form of Exhibit 2.3.

                  "Notice of Continuation/Conversion" means a request by the
         Borrowers for the continuation or conversion of a Loan in the form of
         Exhibit 2.5.

                  "Off Balance Sheet Indebtedness" means any obligation of a
         Person that would be considered indebtedness for tax purposes but is
         not set forth on the balance sheet of such Person, including, but not
         limited to, (a) any synthetic lease, tax retention operating lease, off
         balance sheet loan or similar off-balance sheet financing product of
         such Person, (b) the aggregate amount of uncollected accounts
         receivables of such Person subject at such time to a sale of
         receivables (or similar transaction) and (c) obligations of any
         partnership or joint venture that is recourse to such Person.

                  "Participation Interest" means the Extension of Credit by a
         Lender by way of a purchase of a participation in any Loans as provided
         in Section 3.8.

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

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

                  "Plan" means any employee pension benefit plan (as defined in
         Section 3(2) of ERISA) which is covered by ERISA and with respect to
         which a Borrower or any ERISA Affiliate is (or, if such plan were
         terminated at such time, would under Section 4069 of ERISA be deemed to
         be) an "employer" within the meaning of Section 3(5) of ERISA.

                  "Prime Rate" means the per annum rate of interest established
         from time to time by the Agent at its principal office in Charlotte,
         North Carolina (or such other principal office as communicated by the
         Agent to the Borrowers and the Lenders) as its Prime Rate. Any change
         in the interest rate resulting from a change in the Prime Rate shall
         become effective as of 12:01 a.m. of the Business Day on which each
         change in the Prime Rate is announced by the Agent. The Prime Rate is a
         reference rate used by the Agent in determining interest

                                       8
<PAGE>   13

         rates on certain loans and is not intended to be the lowest rate of
         interest charged on any extension of credit to any debtor.

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

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

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

                  "Required Lenders" means Lenders whose aggregate Credit
         Exposure (as hereinafter defined) constitutes more than 50% of the
         aggregate Credit Exposure of all Lenders at such time; provided,
         however, that if any Lender shall be a Defaulting Lender at such time
         then there shall be excluded from the determination of Required Lenders
         the aggregate principal amount of Credit Exposure of such Lender at
         such time.

                  "Revolving-A Lender" means any Person who has a Revolving-A
         Loan Commitment Percentage greater than zero, including any Eligible
         Assignee which may become a Revolving-A Lender by way of assignment in
         accordance with the terms hereof, together with their successors and
         permitted assigns.

                  "Revolving-A Loan Commitment" means ONE BILLION Dollars
         ($1,000,000,000) as such amount may be otherwise reduced in accordance
         with Section 2.7.

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

                  "Revolving-A Loan Notes" means the promissory notes of the
         Borrowers in favor of each of the Lenders evidencing the Revolving-A
         Loans provided pursuant to Section 2.1, individually or collectively,
         as appropriate, as such notes may be amended or modified from time to
         time and substantially in the form of Exhibit 2.8(a).

                  "Revolving-A Loans" means the loans made by the Lenders to the
         Borrowers pursuant to Section 2.1

                  "Revolving-B Lender" means any Person who has a Revolving-B
         Loan Commitment Percentage greater than zero, including any Eligible
         Assignee which may become a Revolving-B Lender by way of assignment in
         accordance with the terms hereof, together with their successors and
         permitted assigns.

                                       9
<PAGE>   14

                  "Revolving-B Loan Commitment" means ONE BILLION EIGHT HUNDRED
         MILLION DOLLARS ($1,800,000,000) as such amount may be otherwise
         reduced in accordance with Section 2.7.

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

                  "Revolving-B Loan Notes" means the promissory notes of the
         Borrowers in the favor of each of the Lenders evidencing the
         Revolving-B Loans provided pursuant to Section 2.2, individually or
         collectively, as appropriate, as such notes may be amended or modified
         from time to time and substantially in the form of Exhibit 2.8(b).

                  "Revolving-B Loans" means the loans made by the Lenders to the
         Borrowers pursuant to Section 2.2.

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

                  "Solvent" means, with respect to any Person as of a particular
         date, that on such date (a) such Person is able to pay its debts and
         other liabilities, contingent obligations and other commitments as they
         mature in the normal course of business, (b) 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 in their ordinary course, (c) such Person is not
         engaged in a business or a transaction, and is not about to engage in a
         business or a transaction, for which such Person's assets would
         constitute unreasonably small capital after giving due consideration to
         the prevailing practice in the industry in which such Person is engaged
         or is to engage, (d) the fair value of the assets of such Person is
         greater than the total amount of liabilities, including, without
         limitation, contingent liabilities, of such Person and (e) 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. In computing
         the amount of contingent liabilities at any time, it is intended that
         such liabilities will be computed as the amount which, in light of all
         the facts and circumstances existing at such time, represents the
         amount that can reasonably be expected to become an actual or matured
         liability.

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

                                       10
<PAGE>   15

                  "Super Required Lenders" means Lenders whose aggregate Credit
         Exposure (as hereinafter defined) constitutes more than 66.67% of the
         aggregate Credit Exposure of all Lenders at such time; provided,
         however, that if any Lender shall be a Defaulting Lender at such time
         then there shall be excluded from the determination of Super Required
         Lenders the aggregate principal amount of Credit Exposure of such
         Lender at such time.

                  "Termination Event" means (a) with respect to any Single
         Employer Plan, the occurrence of a Reportable Event or the substantial
         cessation of operations (within the meaning of Section 4062(e) of
         ERISA), (b) the withdrawal of a Borrower or any ERISA Affiliate from a
         Multiple Employer Plan during a plan year in which it was a substantial
         employer (as such term is defined in Section 4001(a)(2) of ERISA), or
         the termination of a Multiple Employer Plan, (c) the distribution of a
         notice of intent to terminate or the actual termination of a Plan
         pursuant to Section 4041(a)(2) or 4041A of ERISA, (d) the institution
         of proceedings to terminate or the actual termination of a Plan by the
         PBGC under Section 4042 of ERISA, (e) any event or condition which
         might reasonably constitute grounds under Section 4042 of ERISA for the
         termination of, or the appointment of a trustee to administer, any
         Plan, or (f) the complete or partial withdrawal of a Borrower or any
         ERISA Affiliate from a Multiemployer Plan.

                  "Voting Stock" means all classes of the Capital Stock (or
         other voting interests) of such Person then outstanding and normally
         entitled to vote in the election of directors or other governing body
         of such Person.

         1.2 COMPUTATION OF TIME PERIODS.

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

         1.3 ACCOUNTING TERMS.

         Except as otherwise expressly provided herein, all accounting terms
used herein shall be interpreted, and all financial statements and certificates
and reports as to financial matters required to be delivered to the Lenders
hereunder shall be prepared, in accordance with GAAP applied on a consistent
basis.

         1.4 TIME.

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

                                       11
<PAGE>   16

                                   SECTION 2.

                                      LOANS

         2.1 REVOLVING-A LOAN COMMITMENT.

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

         2.2 REVOLVING-B LOAN COMMITMENT.

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

         2.3 METHOD OF BORROWING FOR LOANS.

         By no later than 11:00 a.m. (a) on the date of the requested borrowing
of Loans that will be Base Rate Loans or Floating Eurodollar Rate Loans or (b)
three Business Days prior to the date of the requested borrowing of Loans that
will be Eurodollar Loans, the Borrowers shall submit a written Notice of
Borrowing in the form of Exhibit 2.3 to the Agent setting forth (i) the amount
requested, (ii) whether such Loans shall accrue interest at the Base Rate, the
Floating Eurodollar Rate or the Adjusted Eurodollar Rate, (iii) whether such
Loans will be Revolving-A Loans or Revolving-B Loans, (iv) with respect to Loans
that will be Eurodollar Loans, the Interest Period applicable thereto and (v)
certification that the Borrowers have complied in all respects with Section 5.2.
Notwithstanding anything herein to the contrary, the Borrowers shall be able to
choose to have a Loan accrue interest at the Floating Eurodollar Rate only
during the period from the Closing Date to and through sixty (60) days following
the Closing Date.

                                       12
<PAGE>   17

         2.4 FUNDING OF LOANS.

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

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

         2.5 CONTINUATIONS AND CONVERSIONS.

         The Borrowers shall have the option (subject to the limitations set
forth below), on any Business Day, to continue existing Eurodollar Loans for a
subsequent Interest Period, to convert Base Rate Loans or Floating Eurodollar
Rate Loans into Eurodollar Loans or to convert Eurodollar Loans into Base Rate
Loans or Floating Eurodollar Rate Loans or to convert Base Rate Loans into
Floating Eurodollar Rate Loans or to convert Floating Eurodollar Rate Loans into
Base Rate Loans; provided, however, that (a) each such continuation or
conversion must be requested by the Borrowers pursuant to a written Notice of
Continuation/Conversion, in the form of Exhibit 2.5, in compliance with the
terms set forth below, (b) if a Eurodollar Loan is continued or converted into a
Base Rate Loan or a Floating Eurodollar Rate Loan on any day other than the last
day of the Interest Period applicable thereto, then the Borrowers shall be
subject to the provisions set forth in Section 4.3, (c) Eurodollar Loans may not
be continued nor may Base Rate Loans or Floating Eurodollar Rate Loans be
converted into Eurodollar Loans during the existence and continuation of a
Default or Event of Default and (d) any request to

                                       13
<PAGE>   18

extend a Eurodollar Loan that fails to comply with the terms hereof or any
failure to request an extension of a Eurodollar Loan at the end of an Interest
Period shall constitute a conversion to a Base Rate Loan on the last day of the
applicable Interest Period. Each continuation or conversion must be requested by
the Borrowers no later than 11:00 a.m. (i) on the date for a requested
conversion of a Eurodollar Loan to a Base Rate Loan or a Floating Eurodollar
Rate Loan or (ii) three Business Days prior to the date for a requested
continuation of a Eurodollar Loan or conversion of a Base Rate Loan or Floating
Eurodollar Rate Loan to a Eurodollar Loan, in each case pursuant to a written
Notice of Continuation/Conversion submitted to the Agent which shall set forth
(A) whether the Borrowers wish to continue or convert such Loans and (B) if the
request is to continue a Eurodollar Loan or convert a Base Rate Loan or a
Floating Eurodollar Rate Loan to a Eurodollar Loan, the Interest Period
applicable thereto. Notwithstanding anything herein to the contrary, unless a
Notice of Continuation/Conversion to the contrary has been timely received all
Floating Eurodollar Rate Loans outstanding on the date sixty (60) days after the
Closing Date shall automatically be converted into Base Rate Loans in accordance
with the terms hereof. Subsequent to the date sixty (60) days after the Closing
Date, the Borrowers may no longer convert Base Rate Loans or Eurodollar Loans
into Floating Eurodollar Rate Loans.

         2.6 MINIMUM AMOUNTS.

         Each request for a Loan or a conversion or continuation hereunder shall
be subject to the following requirements: (a) each Eurodollar Loan shall be in a
minimum amount of $10,000,000 (and in integral multiples of $1,000,000 in excess
thereof), (b) each Base Rate Loan and each Floating Rate Eurodollar Loan shall
be in a minimum amount of the lesser of $10,000,000 (and in integral multiples
of $1,000,000 in excess thereof) or the remaining amount available to be
borrowed and (c) no more than ten Eurodollar Loans shall be outstanding
hereunder at any one time. For the purposes of this Section, all Eurodollar
Loans with the same Interest Periods that begin and end on the same date shall
be considered as one Eurodollar Loan, but Eurodollar Loans with different
Interest Periods, even if they begin on the same date, shall be considered
separate Eurodollar Loans.

         2.7 REDUCTIONS OF REVOLVING LOAN COMMITMENTS.

                  (a) Upon at least five Business Days' notice, the Borrowers
         shall have the right to permanently terminate or reduce the aggregate
         unused amount of the Revolving-A Loan Commitment or the Revolving-B
         Loan Commitment at any time or from time to time; provided that (a)
         each partial reduction shall be in an aggregate amount at least equal
         to $10,000,000 and in integral multiples of $1,000,000 above such
         amount, (b) no reduction shall be made which would reduce the
         Revolving-A Loan Commitment to an amount less than the sum of the then
         outstanding Revolving-A Loans and (c) no reduction shall be made which
         would reduce the Revolving-B Loan Commitment to an amount less than the
         sum of the then outstanding Revolving-B Loans.

                  (b) The Revolving-B Loan Commitment shall be automatically
         reduced at the time and by the amount of any prepayment of the
         Revolving-B Loans required by

                                       14
<PAGE>   19

         Sections 3.2(b)(ii) and (iii). Any reduction in (or termination of) the
         Revolving-A Loan Commitment or the Revolving-B Loan Commitment shall be
         permanent and may not be reinstated.

         2.8 NOTES.

                  (a) Revolving-A Loan Notes. The Revolving-A Loans made by the
         Lenders shall be evidenced by a duly executed promissory note of the
         Borrowers payable to each Lender in substantially the form of Exhibit
         2.8(a) (the "Revolving-A Loan Notes").

                  (b) Revolving-B Loan Notes. The Revolving-B Loans made by the
         Lenders shall be evidenced by a duly executed promissory note of the
         Borrowers payable to each Lender in substantially the form of Exhibit
         2.8(b) (the "Revolving-B Loan Notes").

         2.9 JOINT AND SEVERAL LIABILITY OF THE BORROWERS.

         Subject to Section 2.10:

                  (a) Each of the Borrowers is accepting joint and several
         liability hereunder in consideration of the financial accommodation to
         be provided by the Lenders under this Credit Agreement, for the mutual
         benefit, directly and indirectly, of each of the Borrowers and in
         consideration of the undertakings of each of the Borrowers to accept
         joint and several liability for the obligations of each of them.

                  (b) Each of the Borrowers jointly and severally hereby
         irrevocably and unconditionally accepts, not merely as a surety but
         also as a co-debtor, joint and several liability with the other
         Borrower with respect to the payment and performance of all of the
         obligations arising under this Credit Agreement and the other Credit
         Documents, it being the intention of the parties hereto that all of the
         Borrowers Obligations shall be the joint and several obligations of
         each of the Borrowers without preferences or distinction between them.

                  (c) If and to the extent that either of the Borrowers shall
         fail to make any payment with respect to any of the obligations
         hereunder as and when due or to perform any of such obligations in
         accordance with the terms thereof, then in each such event, the other
         Borrower will make such payment with respect to, or perform, such
         obligation.

                   (d) The provisions of this Section 2.9 are made for the
         benefit of the Lenders and their successors and assigns, and may be
         enforced by them from time to time against either of the Borrowers as
         often as occasion therefor may arise and without requirement on the
         part of the Lenders first to marshall any of its claims or to exercise
         any of its rights against the other Borrower or to exhaust any remedies
         available to it against the other Borrower or to resort to any other
         source or means of obtaining payment of any of the Borrowers
         Obligations hereunder or to elect any other remedy. The provisions of
         this

                                       15
<PAGE>   20

         Section 2.9 shall remain in effect until all the Borrowers Obligations
         hereunder shall have been paid in full or otherwise fully satisfied. If
         at any time, any payment, or any part thereof, made in respect of any
         of the Borrowers Obligations, is rescinded or must otherwise be
         restored or returned by the Lenders upon the insolvency, bankruptcy or
         reorganization of any of the Borrowers, or otherwise, the provisions of
         this Section 2.9 will forthwith be reinstated and in effect as though
         such payment had not been made.

                  (e) Notwithstanding any provision to the contrary contained
         herein or in any of the other Credit Documents, to the extent the
         obligations of either Borrower shall be adjudicated to be invalid or
         unenforceable for any reason (including, without limitation, because of
         any applicable state or federal law relating to fraudulent conveyances
         or transfers) then the obligations of such Borrower hereunder shall be
         limited to the maximum amount that is permissible under applicable law
         (whether federal or state and including, without limitation, the
         Bankruptcy Code).

                  (f) Each Borrower hereby appoints the other Borrower to act as
         its agent for all purposes under this Credit Agreement (including,
         without limitation, with respect to all matters relating to the
         borrowing and repayment of Loans) and agrees that (i) a Borrower may
         execute such documents on behalf of the other Borrower as it deems
         appropriate and the other Borrower shall be obligated by all of the
         terms of any such document executed on its behalf, (ii) any notice or
         communication delivered by the Agent or a Lender to a Borrower shall be
         deemed delivered to both Borrowers and (iii) the Agent and the Lenders
         may accept, and be permitted to rely on, any document, instrument or
         agreement executed by one Borrower on behalf of the other Borrower.

         2.10 LIMITATION OF LIABILITY OF BORROWERS.

         Notwithstanding anything in this Credit Agreement or in the Notes to
the contrary, including without limitation, Section 2.9:

                  (a) Duke Energy Field Services Corporation shall have no
         rights or obligations as a Borrower, and will not be subject to the
         terms of the Credit Documents, until (i) consummation of the merger of
         Phillips Gas Company Shareholder, Inc., a Subsidiary of Phillips
         Petroleum Company, with and into Duke Energy Field Services Corporation
         and (ii) notification from the Borrowers to the Lenders that such
         merger has occurred and that, going forward, Duke Energy Field Services
         Corporation will irrevocably have all of the rights and obligations of
         a Borrower, jointly and severally with Duke Energy Field Services, LLC,
         under the Credit Documents (including, without limitation, any Loans
         made prior to such notification) and will be subject to the terms of
         the Credit Documents.

                  (b) The agreement by Duke Energy Field Services Corporation to
         become jointly and severally liable with Duke Energy Field Services,
         LLC for the indebtedness under the Credit Documents pursuant to
         subsection (a) above shall be accomplished in two phases: (i)
         initially, Duke Energy Field Services Corporation shall become directly
         liable for 69.7% of such indebtedness and shall become indirectly
         liable for 30.3% of such

                                       16
<PAGE>   21

         indebtedness through Phillips Gas Company ("PGC"), a Delaware
         corporation and a wholly-owned Subsidiary of Duke Energy Field Services
         Corporation (PGC being directly liable for such 30.3%), in each case
         jointly and severally with Duke Energy Field Services, LLC, which shall
         remain jointly and severally liable for 100% of such indebtedness; and
         (ii) immediately thereafter, Duke Energy Field Services Corporation
         shall become directly liable for the 30.3% of such indebtedness
         theretofore attributed to PGC and, thereafter, PGC shall no longer be
         liable, directly or indirectly, for any such indebtedness.

                  (c) On or after the date that, pursuant to subsections (a) and
         (b) above, Duke Energy Field Services Corporation has become directly
         liable for 100% of the indebtedness, rights and obligations of a
         Borrower under the Credit Documents, the Borrowers may, upon written
         notice to the Lenders, release Duke Energy Field Services, LLC from its
         joint and several obligations under the Credit Documents. Thereafter,
         Duke Energy Field Services, LLC will have no rights or obligations
         under the Credit Documents, will no longer be subject to the terms of
         the Credit Documents and all obligations owing pursuant to the Credit
         Documents shall be the sole responsibility of Duke Energy Field
         Services Corporation.

                  (d) Notwithstanding the use of the term "Borrowers" as set
         forth in the Credit Documents: (i) prior to Duke Energy Field Services
         Corporation having any rights or obligations as a Borrower, as set
         forth in clause (a) above, the terms "Borrowers" or "a Borrower" as
         used in the Credit Documents shall only mean a reference to Duke Energy
         Field Services, LLC and (ii) on and after the date that Duke Energy
         Field Services, LLC is released from liability, in accordance with
         clause (c) above, the terms "Borrowers" or "a Borrower" as used in the
         Credit Documents shall only mean a reference to Duke Energy Field
         Services Corporation.

                                   SECTION 3.

                                    PAYMENTS

         3.1 INTEREST.

                  (a) Interest Rate.

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

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

                           (iii) all Floating Eurodollar Rate Loans shall accrue
                  interest at the Floating Eurodollar Rate.

                  (b) Default Rate of Interest. Upon the occurrence, and during
         the continuation, of an Event of Default, all past due principal of
         and, to the extent permitted by law, past due

                                       17
<PAGE>   22

         interest on, the Loans and any other past due amounts owing hereunder
         or under the other Credit Documents shall bear interest, payable on
         demand, at a per annum rate equal to one percent (1%) plus the rate
         which would otherwise be applicable (or if no rate is applicable, then
         the rate for Loans that are Base Rate Loans plus one percent (1%) per
         annum).

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

         3.2 PREPAYMENTS.

                  (a) Voluntary Prepayments. The Borrowers shall have the right
         to prepay Loans in whole or in part from time to time without premium
         or penalty; provided, however, that (i) Eurodollar Loans may only be
         prepaid on three Business Days' prior written notice to the Agent and
         any prepayment of Eurodollar Loans will be subject to Section 4.3; and
         (ii) each such partial prepayment of Loans shall be in the minimum
         principal amount of $10,000,000. Any payments made under this Section
         3.2(a) shall be applied as the Borrowers may elect; provided that if
         the Borrowers fail to specify how a voluntary prepayment should be
         applied then such prepayment shall be applied first to Base Rate Loans,
         second to Floating Eurodollar Rate Loans and third to Eurodollar Loans
         in direct order of Interest Period maturities, in each case, pro rata
         between Revolving-A Loans and Revolving-B Loans.

                  (b) Mandatory Prepayments.

                           (i) Revolving-A Committed Amount; Revolving-B
                  Committed Amount. If at any time the amount of Revolving-A
                  Loans outstanding exceeds the Revolving-A Loan Commitment, the
                  Borrowers shall immediately make a principal payment to the
                  Agent in a manner and in an amount such that the outstanding
                  Revolving-A Loans are less than or equal to the Revolving-A
                  Loan Commitment. If at any time the amount of Revolving-B
                  Loans outstanding exceeds the Revolving-B Loan Commitment, the
                  Borrowers shall immediately make a principal payment to the
                  Agent in a manner and in an amount such that the outstanding
                  Revolving-B Loans are less than or equal to the Revolving-B
                  Loan Commitment.

                           (ii) Debt Issuance. Promptly upon receipt by a
                  Borrower of proceeds from any Debt Issuance, such Borrower
                  shall forward 100% of the Net Cash Proceeds of such Debt
                  Issuance to the Lenders as a prepayment of the Revolving-B
                  Loans (to be applied as set forth in Section 3.2(c) below).

                           (iii) Equity Issuance. Promptly upon receipt by a
                  Borrower of proceeds from an Equity Issuance, such Borrower
                  shall forward 100% of the Net Cash Proceeds of such Equity
                  Issuance to the Lenders as a prepayment of the Revolving-B
                  Loans (to be applied as set forth in Section 3.2(c) below).

                  (c) Applications of Prepayments. All amounts required to be
         paid pursuant to Section 3.2(b)(i) shall be applied to Revolving-A
         Loans or Revolving-B Loans, as

                                       18
<PAGE>   23

         applicable. All amounts required to be paid pursuant to Sections
         3.2(b)(ii) and (iii) shall be applied to Revolving-B Loans (with a
         corresponding permanent reduction in the Revolving-B Loan Commitment).
         All amounts payable pursuant to Section 3.2(b) shall be applied, to the
         extent applicable, first to Base Rate Loans, then to Floating
         Eurodollar Rate Loans and then to Eurodollar Loans in the direct order
         of Interest Period maturities.

         3.3 PAYMENT IN FULL AT MATURITY.

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

         3.4 FACILITY FEES.

                  (a) In consideration of the Revolving-A Loan Commitment being
         made available by the Revolving-A Lenders, the Borrowers agree to pay
         to the Agent, for the pro rata benefit of each Revolving-A Lender, a
         fee equal to .125% multiplied by the daily average Revolving-A Loan
         Commitment during the applicable period of determination (the
         "Revolving-A Facility Fees").

                  (b) In consideration of the Revolving-B Loan Commitment being
         made available by the Revolving-B Lenders, the Borrowers agree to pay
         to the Agent, for the pro rata benefit of each Revolving-B Lender, a
         fee equal to .125% multiplied by the daily average Revolving-B Loan
         Commitment during the applicable period of determination (the
         "Revolving-B Facility Fees").

                  (c) The accrued Revolving-A Facility Fees and the accrued
         Revolving-B Facility Fees (collectively, the "Facility Fees") shall be
         due and payable in arrears on the first Business Day after the end of
         each fiscal quarter of the Borrowers (as well as on the Maturity Date)
         for the immediately preceding fiscal quarter (or portion thereof),
         beginning with the first of such dates to occur after the Closing Date.

         3.5 PLACE AND MANNER OF PAYMENTS.

         All payments of principal, interest, fees, expenses and other amounts
to be made by a Borrower under this Credit Agreement shall be made without
setoff, deduction or counterclaim and received not later than 2:00 p.m. on the
date when due in Dollars and in immediately available funds by the Agent at the
Agency Services Address. A Borrower shall, at the time it makes any payment
under this Credit Agreement, specify to the Agent the Loans, fees or other
amounts payable by a Borrower hereunder to which such payment is to be applied
(and in the event that it fails to specify, or if such application would be
inconsistent with the terms hereof, the Agent shall distribute such payment to
the Lenders in such manner as it reasonably determines in its sole discretion).
The Agent will distribute such payments to the applicable Lenders on the same
Business Day if any such payment is received prior to 2:00 p.m.; otherwise the
Agent will distribute each payment to the applicable Lenders prior to 12:00 noon
on the next succeeding Business Day. Whenever any

                                       19
<PAGE>   24

payment hereunder shall be stated to be due on a day which is not a Business
Day, the due date thereof shall be extended to the next succeeding Business Day
(subject to accrual of interest and fees for the period of such extension),
except that in the case of Eurodollar Loans, if the extension would cause the
payment to be made in the next following calendar month, then such payment shall
be made on the next preceding Business Day.

         3.6 PRO RATA TREATMENT.

         Except to the extent otherwise provided herein, all Loans, each payment
or prepayment of principal of any Loan, each payment of interest on the Loans,
each payment of Facility Fees, each reduction of the Revolving-A Loan
Commitment, each reduction of the Revolving-B Loan Commitment and each
conversion or continuation of any Loans, shall be allocated pro rata among the
applicable Lenders in accordance with their respective Revolving-A Loan
Commitment Percentages or Revolving-B Loan Commitment Percentages; provided
that, if any Lender shall have failed to pay its applicable pro rata share of
any Loan, then any amount to which such Lender would otherwise be entitled
pursuant to this Section 3.6 shall instead be payable to the Agent until the
share of such Loan not funded by such Lender has been repaid and any interest
owed by such Lender as result of such failure to fund has been paid; and
provided further, that in the event any amount paid to any Lender pursuant to
this Section 3.6 is rescinded or must otherwise be returned by the Agent, each
Lender shall, upon the request of the Agent, repay to the Agent the amount so
paid to such Lender, with interest for the period commencing on the date such
payment is returned by the Agent until the date the Agent receives such
repayment at a rate per annum equal to, during the period to but excluding the
date two Business Days after such request, the Federal Funds Rate, and
thereafter, the Base Rate plus one percent (1%) per annum.

         3.7 COMPUTATIONS OF INTEREST AND FEES.

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

                  (b) It is the intent of the Lenders and the Borrowers to
         conform to and contract in strict compliance with applicable usury law
         from time to time in effect. All agreements between the Lenders and the
         Borrowers are hereby limited by the provisions of this paragraph which
         shall override and control all such agreements, whether now existing or
         hereafter arising and whether written or oral. In no way, nor in any
         event or contingency (including but not limited to prepayment or
         acceleration of the maturity of any obligation), shall the interest
         taken, reserved, contracted for, charged, or received under this Credit
         Agreement, under the Notes or otherwise, exceed the maximum nonusurious
         amount permissible under applicable law. If, from any possible
         construction of any of the Credit Documents or any other document,
         interest would otherwise be payable in excess of the maximum
         nonusurious amount, any such construction shall be subject to the
         provisions of this paragraph and interest owing pursuant to such
         documents shall be automatically reduced to the maximum nonusurious
         amount permitted under applicable law, without the

                                       20
<PAGE>   25

         necessity of execution of any amendment or new document. If any Lender
         shall ever receive anything of value which is characterized as interest
         on the Loans under applicable law and which would, apart from this
         provision, be in excess of the maximum lawful amount, an amount equal
         to the amount which would have been excessive interest shall, without
         penalty, be applied to the reduction of the principal amount owing on
         the Loans and not to the payment of interest, or refunded to the
         Borrowers or the other payor thereof if and to the extent such amount
         which would have been excessive exceeds such unpaid principal amount of
         the Loans. The right to demand payment of the Loans or any other
         indebtedness evidenced by any of the Credit Documents does not include
         the right to receive any interest which has not otherwise accrued on
         the date of such demand, and the Lenders do not intend to charge or
         receive any unearned interest in the event of such demand. All interest
         paid or agreed to be paid to the Lenders with respect to the Loans
         shall, to the extent permitted by applicable law, be amortized,
         prorated, allocated, and spread throughout the full stated term
         (including any renewal or extension) of the Loans so that the amount of
         interest on account of such indebtedness does not exceed the maximum
         nonusurious amount permitted by applicable law.

         3.8 SHARING OF PAYMENTS.

                  Each Lender agrees that, in the event that any Lender shall
         obtain payment in respect of any Loan or any other obligation owing to
         such Lender under this Credit Agreement through the exercise of a right
         of set-off, banker's lien, counterclaim or otherwise (including, but
         not limited to, pursuant to the Bankruptcy Code) in excess of its pro
         rata share as provided for in this Credit Agreement, such Lender shall
         promptly purchase from the other Lenders a participation in such Loans
         and other obligations, in such amounts and with such other adjustments
         from time to time, as shall be equitable in order that all Lenders
         share such payment in accordance with their respective ratable shares
         as provided for in this Credit Agreement. Each Lender further agrees
         that if a payment to a Lender (which is obtained by such Lender through
         the exercise of a right of set-off, banker's lien, counterclaim or
         otherwise) shall be rescinded or must otherwise be restored, each
         Lender which shall have shared the benefit of such payment shall, by
         repurchase of a participation theretofore sold, return its share of
         that benefit to each Lender whose payment shall have been rescinded or
         otherwise restored. The Borrowers agree that any Lender so purchasing
         such a participation may, to the fullest extent permitted by law,
         exercise all rights of payment, including set-off, banker's lien or
         counterclaim, with respect to such participation as fully as if such
         Lender were a holder of such Loan or other obligation in the amount of
         such participation. Except as otherwise expressly provided in this
         Credit Agreement, if any Lender shall fail to remit to the Agent or any
         other Lender an amount payable by such Lender to the Agent or such
         other Lender pursuant to this Credit Agreement on the date when such
         amount is due, such payments shall accrue interest thereon, for each
         day from the date such amount is due until the day such amount is paid
         to the Agent or such other Lender, at a rate per annum equal to the
         Federal Funds Rate. If under any applicable bankruptcy, insolvency or
         other similar law, any Lender receives a secured claim in lieu of a
         setoff to which this Section 3.8 applies, such Lender shall, to the
         extent practicable, exercise its rights

                                       21
<PAGE>   26

         in respect of such secured claim in a manner consistent with the rights
         of the Lenders under this Section 3.8 to share in the benefits of any
         recovery on such secured claim.

         3.9 EVIDENCE OF DEBT.

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

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

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

                                   SECTION 4.

                      ADDITIONAL PROVISIONS REGARDING LOANS

         4.1 EURODOLLAR LOAN PROVISIONS.

                  (a) Unavailability. If, on or prior to the first day of any
         Interest Period, (i) the Agent shall have determined in good faith
         (which determination shall be conclusive and binding upon the
         Borrowers) that (A) Dollar deposits are not generally available in the
         London interbank Eurodollar market in the applicable principal amounts
         and Interest Period of a requested Eurodollar Loan or (B) by reason of
         circumstances affecting the relevant market, adequate and reasonable
         means do not exist for ascertaining the Eurodollar Rate for such
         Interest Period or for the Floating Eurodollar Rate, or (ii) the Agent
         shall have received

                                       22
<PAGE>   27

         notice from the Required Lenders that the Eurodollar Rate determined or
         to be determined for such Interest Period or the Floating Eurodollar
         Rate, as the case may be, will not adequately and fairly reflect the
         cost to the Lenders of making or maintaining Eurodollar Loans for such
         Interest Period or Floating Eurodollar Rate Loans, as the case may be,
         (as conclusively certified by such Lenders), the Agent shall give
         notice thereof to the Borrowers and the Lenders as soon as practicable
         thereafter. Upon delivery of such notice, (A) any Eurodollar Loans
         requested to be made on the first day of such Interest Period or any
         requested Floating Rate Eurodollar Loans, as the case may be, shall be
         made as Base Rate Loans, (B) any Loans that were to have been converted
         to or continued as Eurodollar Loans or Floating Eurodollar Rate Loans,
         as the case may be, shall be prepaid by the Borrowers or converted to
         or continued as Base Rate Loans and (C) any outstanding Eurodollar
         Loans shall be converted, on the first day of such Interest Period, to
         Base Rate Loans and any Floating Rate Eurodollar Loans shall be
         converted, on the next succeeding Business Day, to Base Rate Loans.
         Until the Agent has withdrawn such notice, no further Eurodollar Loans
         or Floating Eurodollar Rate Loans, as the case may be, shall be made or
         continued as such, nor shall the Borrowers have the right to convert
         Base Rate Loans to Eurodollar Loans or Floating Eurodollar Rate Loans,
         as the case may be.

                  (b) Change in Legality. Notwithstanding any other provision
         herein, if any change, after the date hereof, in any law, governmental
         rule, regulation, guideline or order (including the introduction of any
         new law or governmental rule, regulation, guideline or order) or in the
         interpretation or administration thereof by any Governmental Authority
         charged with the interpretation or administration thereof shall make it
         unlawful for any Lender to make or maintain any Eurodollar Loan or
         Floating Eurodollar Rate Loan then, by written notice to the Borrowers
         and to the Agent, such Lender may:

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

                           (ii) require that all outstanding Eurodollar Loans
                  and Floating Eurodollar Rate Loans made by it be converted to
                  Base Rate Loans in which event all such Eurodollar Loans and
                  Floating Eurodollar Rate Loans shall be converted to Base Rate
                  Loans either (A) on the last day of the then current Interest
                  Period applicable to such Eurodollar Loan if such Lender can
                  lawfully continue to maintain and fund such Eurodollar Loan or
                  (B) immediately if such Lender shall determine that it may not
                  lawfully continue to maintain and fund such Eurodollar Loan to
                  such day.

                  (c) Requirements of Law. If at any time a Lender shall incur
         increased costs or reductions in the amounts received or receivable
         hereunder with respect to the making, the commitment to make or the
         maintaining of any Eurodollar Loan or Floating Rate Eurodollar

                                       23
<PAGE>   28
         Loan because of (i) any change after the date hereof in any law,
         governmental rule, regulation, guideline or order (including the
         introduction of any new law or governmental rule, regulation, guideline
         or order) or in the interpretation or administration thereof by any
         Governmental Authority charged with the interpretation or
         administration thereof, including, without limitation, the imposition,
         modification or deemed applicability of any reserves, deposits or
         similar requirements (such as, for example, but not limited to, a
         change in official reserve requirements) or (ii) other circumstances
         affecting the London interbank Eurodollar market; then the Borrowers
         shall pay to such Lender promptly upon written demand therefor, such
         additional amounts (in the form of an increased rate of, or a different
         method of calculating, interest or otherwise as such Lender may
         determine in its sole discretion) as may be required to compensate such
         Lender for such increased costs or reductions in amounts receivable
         hereunder. If any Lender becomes entitled to claim any additional
         amounts pursuant to this Section 4.1(c), it shall provide prompt notice
         thereof to the Borrowers, through the Agent, certifying (A) that one of
         the events described in this Section 4.1(c) has occurred and describing
         in reasonable detail the nature of such event, (B) as to the increased
         cost or reduced amount resulting from such event and (C) as to the
         additional amount demanded by such Lender and a reasonably detailed
         explanation of the calculation thereof provided that no such amount
         shall be payable with respect to any period commencing more than 90
         days prior to the date such Lender first notifies the Borrowers of its
         intention to demand compensation therefor under this Section.

                  (d) Regulation D Compensation. In the event that a Lender is
         required to maintain reserves of the type contemplated by the
         definition of "Eurodollar Reserve Percentage", such Lender may require
         the Borrowers to pay, contemporaneously with each payment of interest
         on the Eurodollar Loans, additional interest on the related Eurodollar
         Loan of such Lender at a rate per annum determined by such Lender up to
         but not exceeding the excess of (i)(A) the applicable London Interbank
         Offered Rate divided by (B) one minus the Eurodollar Reserve Percentage
         over (ii) the applicable London Interbank Offered Rate. Any Lender
         wishing to require payment of such additional interest (x) shall so
         notify the Borrowers and the Agent, in which case such additional
         interest on the Eurodollar Loans of such Lender shall be payable to
         such Lender at the place indicated in such notice with respect to each
         Interest Period commencing at least three Business Days after the
         giving of such notice and (y) shall notify the Borrowers at least three
         Business Days prior to each date on which interest is payable on the
         Eurodollar Loans of the amount then due it under this Section. Each
         such notification shall be accompanied by such information as the
         Borrowers may reasonably request.

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

                                       24
<PAGE>   29

         4.2 CAPITAL ADEQUACY.

         If any Lender has determined that the adoption or becoming effective,
after the date hereof, of any applicable law, rule or regulation regarding
capital adequacy, or any change therein (after the date hereof), or any change
in the interpretation or administration thereof by any Governmental Authority,
central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by such Lender (or its parent corporation)
with any request or directive regarding capital adequacy (whether or not having
the force of law) of any such Governmental Authority, central bank or comparable
agency, has or would have the effect of reducing the rate of return on such
Lender's (or parent corporation's) capital or assets as a consequence of its
commitments or obligations hereunder to a level below that which such Lender (or
its parent corporation) could have achieved but for such adoption,
effectiveness, change or compliance (taking into consideration such Lender's (or
parent corporation's) policies with respect to capital adequacy), then, upon
notice from such Lender (which shall include the basis and calculations in
reasonable detail supporting the compensation requested in such notice), and
receipt by the Borrowers of such written notice from such Lender (with a copy to
the Agent) the Borrowers shall be obligated to pay to such Lender such
additional amount or amounts as will compensate such Lender on an after tax
basis (after taking into account applicable deductions and credits in respect of
the amount so indemnified) for such reduction provided that no such amount shall
be payable with respect to any period commencing more than 90 days prior to the
date such Lender first notifies the Borrowers of its intention to demand
compensation therefor under this Section. Each determination by any Lender of
amounts owing under this Section 4.2 shall, absent manifest error, be conclusive
and binding on the parties hereto. The covenants of this Section 4.2 shall
survive termination of this Credit Agreement and the other Credit Documents and
the payment of the Loans and all other amounts payable hereunder.

         4.3 COMPENSATION.

         The Borrowers promise to indemnify each Lender and to hold each Lender
harmless from any loss or expense which such Lender may sustain or incur as a
consequence of (a) default by the Borrowers in making a borrowing of, conversion
into or continuation of Eurodollar Loans after the Borrowers have given a notice
requesting the same in accordance with the provisions of this Credit Agreement,
(b) default by the Borrowers in making any prepayment of a Eurodollar Loan after
the Borrowers have given a notice thereof in accordance with the provisions of
this Credit Agreement, (c) the making of a prepayment of Eurodollar Loans on a
day which is not the last day of an Interest Period with respect thereto and (d)
the payment, continuation or conversion of a Eurodollar Loan on a day which is
not the last day of the Interest Period applicable thereto or the failure to
repay a Eurodollar Loan when required by the terms of this Credit Agreement.
Such indemnification may include an amount equal to (i) an amount of interest
calculated at the Eurodollar Rate which would have accrued on the amount in
question, for the period from the date of such prepayment or of such failure to
borrow, convert, continue or repay to the last day of the applicable Interest
Period (or, in the case of a failure to borrow, convert or continue, the
Interest Period that would have commenced on the date of such failure) in each
case at the applicable rate of interest for such Eurodollar Loans provided for
herein minus (ii) the amount of interest (as reasonably determined by such
Lender) which would have

                                       25
<PAGE>   30

accrued to such Lender on such amount by placing such amount on deposit for a
comparable period with leading banks in the interbank Eurocurrency market. If
any Lender becomes entitled to claim any additional amounts pursuant to this
Section 4.3, it shall provide prompt notice thereof to the Borrower, through the
Agent, as to the additional amount demanded by such Lender and a reasonably
detailed explanation of the calculation thereof. The covenants in this Section
4.3 shall survive the termination of this Credit Agreement and the payment of
the Loans and all other amounts payable hereunder.

         4.4 TAXES.

                  (a) Except as provided below in this Section 4.4, all payments
         made by the Borrowers under this Credit Agreement and any Notes shall
         be made free and clear of, and without deduction or withholding for or
         on account of, any present or future income, stamp or other taxes,
         levies, imposts, duties, charges, fees, deductions or withholdings, now
         or hereafter imposed, levied, collected, withheld or assessed by any
         court, or governmental body, agency or other official, excluding taxes
         measured by or imposed upon the net income of any Lender or its
         applicable lending office, or any branch or affiliate thereof, and all
         franchise taxes, branch taxes, taxes on doing business or taxes on the
         capital or net worth of any Lender or its applicable lending office, or
         any branch or affiliate thereof, in each case imposed in lieu of net
         income taxes: (i) by the jurisdiction under the laws of which such
         Lender, applicable lending office, branch or affiliate is organized or
         is located, or in which its principal executive office is located, or
         any nation within which such jurisdiction is located or any political
         subdivision thereof; or (ii) by reason of any connection between the
         jurisdiction imposing such tax and such Lender, applicable lending
         office, branch or affiliate other than a connection arising solely from
         such Lender having executed, delivered or performed its obligations, or
         received payment under or enforced, this Credit Agreement or any Notes.
         If any such non-excluded taxes, levies, imposts, duties, charges, fees,
         deductions or withholdings ("Non-Excluded Taxes") are required to be
         withheld from any amounts payable to an Agent or any Lender hereunder
         or under any Notes, (A) the amounts so payable to the Agent or such
         Lender shall be increased to the extent necessary to yield to the Agent
         or such Lender (after payment of all Non-Excluded Taxes) interest or
         any such other amounts payable hereunder at the rates or in the amounts
         specified in this Credit Agreement and any Notes, provided, however,
         that the Borrowers shall be entitled to deduct and withhold any Non-
         Excluded Taxes and shall not be required to increase any such amounts
         payable to any Lender that is not organized under the laws of the
         United States of America or a state thereof if such Lender fails to
         comply with the requirements of paragraph (b) of this Section 4.4
         whenever any Non-Excluded Taxes are payable by the Borrowers, and (B)
         as promptly as possible after requested, the Borrowers shall send to
         the Agent for its own account or for the account of such Lender, as the
         case may be, a certified copy of an original official receipt received
         by the Borrowers showing payment thereof. If the Borrowers fail to pay
         any Non-Excluded Taxes when due to the appropriate taxing authority or
         fails to remit to the Agent the required receipts or other required
         documentary evidence, the Borrowers shall indemnify the Agent and any
         Lender for any incremental Non-Excluded Taxes, interest or penalties
         that may become payable by the

                                       26
<PAGE>   31

         Agent or any Lender as a result of any such failure. The agreements in
         this Section 4.4 shall survive the termination of this Credit Agreement
         and the payment of the Loans and all other amounts payable hereunder.

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

                                    (i) (A) on or before the date of any payment
                                    by the Borrowers under this Credit Agreement
                                    or the Notes to such Lender, deliver to the
                                    Borrowers and the Agent (x) two duly
                                    completed copies of United States Internal
                                    Revenue Service Form 1001 or 4224, or
                                    successor applicable form, as the case may
                                    be, certifying that it is entitled to
                                    receive payments under this Credit Agreement
                                    and any Notes without deduction or
                                    withholding of any United States federal
                                    income taxes and (y) an Internal Revenue
                                    Service Form W-8 or W-9, or successor
                                    applicable form, as the case may be,
                                    certifying that it is entitled to an
                                    exemption from United States backup
                                    withholding tax;

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

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

                           (ii) in the case of any such Lender that is not a
                  "bank" within the meaning of Section 881(c)(3)(A) of the
                  Internal Revenue Code, (A) represent to the Borrowers (for the
                  benefit of the Borrowers and the Agent) that it is not a bank
                  within the meaning of Section 881 (c)(3)(A) of the Internal
                  Revenue Code, (B) agree to furnish to the Borrowers, on or
                  before the date of any payment by the Borrowers, with a copy
                  to the Agent, two accurate and complete original signed copies
                  of Internal Revenue Service Form W-8, or successor applicable
                  form, certifying to such Lender's legal entitlement at the
                  date of such certificate to an exemption from U.S. withholding
                  tax under the provisions of Section 881(c) of the Internal
                  Revenue Code with respect to payments to be made under this
                  Credit Agreement and any Notes (and to deliver to the
                  Borrowers and the Agent two further copies of such form on or
                  before the date it expires or becomes obsolete and after the
                  occurrence of any event requiring a change in the most
                  recently provided form and, if necessary, obtain any
                  extensions of time reasonably requested by the Borrowers or
                  the Agent for filing and completing such forms), and (C)
                  agree, to the extent legally entitled to do so, upon
                  reasonable request by

                                       27
<PAGE>   32

                  the Borrowers, to provide to the Borrowers (for the benefit of
                  the Borrowers and the Agent) such other forms as may be
                  reasonably required in order to establish the legal
                  entitlement of such Lender to an exemption from withholding
                  with respect to payments under this Credit Agreement and any
                  Notes.

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

         4.5 REPLACEMENT OF LENDERS.

         The Agent and each Lender shall use reasonable efforts to avoid or
mitigate any increased cost or suspension of the availability of an interest
rate under Sections 4.1 through 4.4 above to the greatest extent practicable
(including transferring the Loans to another lending office or Affiliate of a
Lender) unless, in the opinion of the Agent or such Lender, such efforts would
be likely to have an adverse effect upon it. In the event a Lender makes a
request to the Borrowers for additional payments in accordance with Section 4.1,
4.2 or 4.4, or suspends Eurodollar Loans under Section 4.1, then, provided that
no Default or Event of Default has occurred and is continuing at such time, the
Borrowers may, at their own expense (such expense to include any transfer fee
payable to the Agent under Section 11.3(b) and any expense pursuant to Section
4) and in its sole discretion, require such Lender to transfer and assign in
whole (but not in part), without recourse (in accordance with and subject to the
terms and conditions of Section 11.3(b)), all of its interests, rights and
obligations under this Credit Agreement to an Eligible Assignee which shall
assume such assigned obligations (which assignee may be another Lender, if a
Lender accepts such assignment); provided that (a) such assignment shall not
conflict with any law, rule or regulation or order of any court or other
Governmental Authority and (b) the Borrowers or such assignee shall have paid to
the assigning Lender in immediately available funds the principal of and
interest accrued to the date of such payment on the portion of the Loans
hereunder held by such assigning Lender and all other amounts owed to such
assigning Lender hereunder, including amounts owed pursuant to Sections 4.1
through 4.4.

                                       28
<PAGE>   33

                                   SECTION 5.

                              CONDITIONS PRECEDENT

         5.1      CLOSING CONDITIONS.

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

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

                  (b) Organizational Documents.

                           (i) Receipt by the Agent of the following with
                  respect to Duke Energy Field Services, LLC:

                                    (A) Certificate of Formation. A copy of the
                           certificate of formation of such Borrower certified
                           to be true and complete by the appropriate
                           Governmental Authority of the State of Delaware and
                           certified by an authorized officer of such Borrower
                           to be true and correct as of the Effective Date.

                                    (B) LLC Agreement. A copy of the LLC
                           Agreement of such Borrower certified by an authorized
                           officer of such Borrower to be true and correct as of
                           the Effective Date.

                                    (C) Resolutions. Copies of resolutions of
                           the members of such Borrower approving and adopting
                           the Credit Documents to which such Borrower is a
                           party, the transactions contemplated therein and
                           authorizing execution and delivery thereof and
                           certified by an authorized officer of such Borrower
                           to be in full force and effect as of the Effective
                           Date.

                                    (D) Good Standing. Copies of certificates of
                           good standing, existence or their equivalent with
                           respect to such Borrower certified as of a recent
                           date by the appropriate Governmental Authorities of
                           the State of Delaware.

                                    (E) Incumbency. An incumbency certificate
                           certified by an authorized officer to be true and
                           correct as of the Effective Date.

                           (ii) Receipt by the Agent of the following with
                  respect to Duke Energy Field Services Corporation:

                                       29
<PAGE>   34

                                    (A) Charter Documents. Copies of the
                           articles or certificates of incorporation or other
                           charter documents of such Borrower certified to be
                           true and complete as of a recent date by the
                           appropriate Governmental Authority of the State of
                           Delaware and certified by a secretary or assistant
                           secretary of such Borrower to be true and correct as
                           of the Effective Date.

                                    (B) Bylaws. A copy of the bylaws or other
                           governing documents of such Borrower certified by a
                           secretary or assistant secretary of such Borrower to
                           be true and correct as of the Effective Date.

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

                                    (D) Good Standing. Copies of certificates of
                           good standing, existence or its equivalent with
                           respect to such Borrower certified as of a recent
                           date by the appropriate Governmental Authorities of
                           the State of Delaware.

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

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

                  (d) Financial Statements. Receipt by the Lenders of such
         financial information regarding the Borrowers as the Lenders may
         reasonably request.

                  (e) Fees and Expenses. Payment by the Borrowers of all fees
         and expenses owed by it to the Lenders and the Agent, including,
         without limitation, (i) payment to each Lender of an upfront fee equal
         to 5 bps on its total Commitment and (ii) payment to the Agent of the
         fees set forth in the Fee Letter.

                  (f) Litigation. As of the Closing Date, there shall be no
         material actions, suits, investigations or legal, equitable,
         arbitration or administrative proceedings pending or threatened against
         a Borrower which are likely to be decided adversely to such Borrower
         and if so decided would have a Material Adverse Effect.

                                       30
<PAGE>   35

                  (g) Material Adverse Effect. As of the Closing Date, no event
         or condition shall have occurred since December 31, 1999 that would
         have or would be reasonably expected to have a Material Adverse Effect.

                  (h) Borrowers' Certificate. The Agent shall have received a
         certificate or certificates executed by an Approved Officer of the
         Borrowers, on behalf of the Borrowers, as of the Closing Date stating
         that (i) the Borrowers are in compliance with all existing financial
         obligations, unless such non-compliance would not have a Material
         Adverse Effect, (ii) no action, suit, investigation or proceeding is
         pending or, to such officer's knowledge, threatened in any court or
         before any arbitrator or governmental instrumentality that purports to
         affect a Borrower or any transaction contemplated by the Credit
         Documents, if such action, suit, investigation or proceeding is likely
         to be adversely determined and if adversely determined would have a
         Material Adverse Effect, (iii) the financial statements and information
         delivered to the Agent on or before the Closing Date were prepared in
         good faith and in accordance with GAAP and (iv) immediately after
         giving effect to this Credit Agreement, the other Credit Documents and
         all the transactions contemplated herein and therein to occur on such
         date, (A) no Default or Event of Default exists and (B) all
         representations and warranties contained herein and in the other Credit
         Documents are true and correct in all material respects on and as of
         the date made.

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

         5.2 CONDITIONS TO LOANS.

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

                  (a) Request. The Borrowers shall have timely delivered a duly
         executed and completed Notice of Borrowing in conformance with all the
         terms and conditions of this Credit Agreement.

                  (b) Representations and Warranties. The representations and
         warranties made by the Borrowers in this Credit Agreement are true and
         correct in all material respects at and as if made as of the date of
         the funding of the Loans (except to the extent such representations and
         warranties expressly and exclusively relate to an earlier date).

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

                  (d) Availability. Immediately after giving effect to the
         making of a Revolving-A Loan the Revolving-A Loans outstanding shall
         not exceed the Revolving-A Loan Commitment. Immediately after giving
         effect to the making of a Revolving-B Loan the Revolving-B Loans
         outstanding shall not exceed the Revolving-B Loan Commitment.

                                       31
<PAGE>   36

The delivery of each Notice of Borrowing shall constitute a representation and
warranty by the Borrowers of the correctness of the matters specified in
subsections (b), (c) and (d) above.

                                   SECTION 6.

                         REPRESENTATIONS AND WARRANTIES

         The Borrowers hereby represents and warrants to each Lender that:

         6.1 ORGANIZATION AND GOOD STANDING.

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

         6.2 DUE AUTHORIZATION.

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

         6.3 NO CONFLICTS.

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

         6.4 CONSENTS.

         No consent, approval, authorization or order of, or filing,
registration or qualification with, any court or Governmental Authority or third
party is required in connection with the execution,

                                       32
<PAGE>   37

delivery or performance of this Credit Agreement or any of the other Credit
Documents that has not been obtained.

         6.5 ENFORCEABLE OBLIGATIONS.

         This Credit Agreement and the other Credit Documents have been duly
executed and delivered and constitute legal, valid and binding obligations of
the Borrowers enforceable against the Borrowers in accordance with their
respective terms, except as may be limited by bankruptcy or insolvency laws or
similar laws affecting creditors' rights generally or by general equitable
principles.

         6.6 FINANCIAL CONDITION.

         The financial statements delivered to the Lenders pursuant to Section
5.1(d) and pursuant to Section 7.1(a) and (b): (i) have been prepared in
accordance with GAAP (subject to the provisions of Section 1.3) and (ii) present
fairly the financial condition, results of operations and cash flows of the
Borrowers as of such date and for such periods (subject, in the case of interim
statements, to normal year-end adjustments and the absence of footnotes).

         6.7 TAXES.

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

         6.8 COMPLIANCE WITH LAW.

         Each Borrower and each of its Material Subsidiaries is in compliance
with all laws, rules, regulations, orders, decrees and requirements of
Governmental Authorities applicable to it or to its properties (including,
without limitation, ERISA, the Code and Environmental Laws), except (a) where
the necessity of compliance therewith is being contested in good faith by
appropriate proceedings or (b) such failure to comply would not have or would
not be reasonably expected to have a Material Adverse Effect.

         6.9 USE OF PROCEEDS; MARGIN STOCK.

         The proceeds of the Loans hereunder will be used solely for the
purposes specified in Section 7.7. None of such proceeds will be used for the
purpose of (a) purchasing or carrying any "margin stock" as defined in
Regulation U or Regulation X, (b) for the purpose of reducing or retiring any
Indebtedness which was originally incurred to purchase or carry "margin stock",
(c) for

                                       33
<PAGE>   38

any other purpose which might constitute this transaction a "purpose credit"
within the meaning of Regulation U or Regulation X or (d) for the acquisition of
another Person unless the board of directors (or other comparable governing
body) or stockholders, as appropriate, of such Person has approved such
acquisition.

         6.10 GOVERNMENT REGULATION.

         Each Borrower is exempt from the provisions of the Public Utility
Holding Company Act of 1935, as amended. Neither Borrower is an "investment
company" registered or required to be registered under the Investment Company
Act of 1940, as amended, or controlled by such a company.

         6.11 SOLVENCY.

         Each Borrower is and, after the consummation of the transactions
contemplated by this Credit Agreement, will be Solvent.

         6.12 ENVIRONMENTAL MATTERS.

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

         6.13 MATERIAL SUBSIDIARIES.

         As of the Closing Date, set forth on Schedule 6.13 is a list of all
Material Subsidiaries of the Borrowers.

                                   SECTION 7.

                              AFFIRMATIVE COVENANTS

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

         7.1 INFORMATION COVENANTS.

         The Borrowers will furnish, or cause to be furnished, to the Agent and
each of the Lenders:

                  (a) Annual Financial Statements. As soon as available, and in
         any event within 120 days after the close of each fiscal year of the
         Borrowers, a consolidated balance sheet of

                                       34
<PAGE>   39

         the Borrowers and their Subsidiaries as of the end of such fiscal year,
         together with a related consolidated income statement and related
         statements of cash flows, capitalization and retained earnings for such
         fiscal year, setting forth in comparative form figures for the
         preceding fiscal year, all such financial information described above
         to be audited by independent certified public accountants of recognized
         national standing and whose opinion, which shall be furnished to the
         Agent, shall be to the effect that such financial statements have been
         prepared in accordance with GAAP (except for changes with which such
         accountants concur); provided that the Borrowers' Form 10-K Annual
         Report as filed with the Securities and Exchange Commission, without
         exhibits, will satisfy the requirements of this Section 7.1(a).

                  (b) Quarterly Financial Statements. As soon as available, and
         in any event within 60 days after the close of each fiscal quarter of
         the Borrowers (other than the fourth fiscal quarter) a consolidated
         balance sheet of the Borrowers and their Subsidiaries as of the end of
         such fiscal quarter, together with a related consolidated income
         statement and related statement of cash flows for such fiscal quarter
         in each case setting forth in comparative form figures for the
         corresponding period of the preceding fiscal year, and accompanied by a
         certificate of an Approved Officer of the Borrowers to the effect that
         such quarterly financial statements fairly present in all material
         respects the financial condition of the Borrowers and have been
         prepared in accordance with GAAP, subject to changes resulting from
         audit and normal year-end audit adjustments to same; provided that the
         Borrowers' Form 10-Q Quarterly Report as filed with the Securities and
         Exchange Commission, without exhibits, will satisfy the requirements of
         this Section 7.1(b).

                  (c) Officer's Certificate. At the time of delivery of the
         financial statements provided for in Sections 7.1(a) and 7.1(b) above,
         a certificate of an Approved Officer of the Borrowers (i) stating that
         no Default or Event of Default exists, or if any Default or Event of
         Default does exist, specifying the nature and extent thereof and what
         action the Borrowers propose to take with respect thereto and (ii)
         updating Schedule 6.13, if appropriate.

                  (d) Reports. Promptly upon transmission or receipt thereof,
         copies of any filings and registrations with, and reports to or from,
         the Securities and Exchange Commission, or any successor agency, and
         copies of all financial statements, proxy statements, notices and
         reports as a Borrower shall send to its equityholders.

                  (e) Notices. Within five days after any officer of a Borrower
         with responsibility relating thereto obtaining knowledge thereof, the
         Borrowers will give written notice to the Agent immediately of (i) the
         occurrence of a Default or Event of Default, specifying the nature and
         existence thereof and what action the Borrowers propose to take with
         respect thereto, and (ii) the occurrence of any of the following with
         respect to the Borrowers: (A) the pendency or commencement of any
         litigation, arbitral or governmental proceeding against a Borrower the
         claim of which is likely to be decided adversely to such Borrower and,
         if adversely determined, would have or would be reasonably expected to
         have a Material Adverse Effect or (B) the institution of any
         proceedings against a Borrower with respect to, or the receipt of
         notice by such Person of potential liability or responsibility for

                                       35
<PAGE>   40

         violation or alleged violation of, any federal, state or local law,
         rule or regulation (including, without limitation, any Environmental
         Law) that is likely to be decided adversely to a Borrower and, if
         adversely decided, would have a Material Adverse Effect.

                  (f) ERISA. Upon a Borrower or any ERISA Affiliate obtaining
         knowledge thereof, the Borrowers will give written notice to the Agent
         promptly (and in any event within five Business Days) of: (i) any event
         or condition, including, but not limited to, any Reportable Event, that
         constitutes, or would be reasonably expected to lead to, a Termination
         Event if such Termination Event would have a Material Adverse Effect;
         (ii) with respect to any Multiemployer Plan, the receipt of notice as
         prescribed in ERISA or otherwise of any withdrawal liability assessed
         against a Borrower or any ERISA Affiliate, or of a determination that
         any Multiemployer Plan is in reorganization or insolvent (both within
         the meaning of Title IV of ERISA); (iii) the failure to make full
         payment on or before the due date (including extensions) thereof of all
         amounts which a Borrower or any of its Subsidiaries or ERISA Affiliates
         is required to contribute to each Plan pursuant to its terms and as
         required to meet the minimum funding standard set forth in ERISA and
         the Code with respect thereto; or (iv) any change in the funding status
         of any Plan that would have or would be reasonably expected to have a
         Material Adverse Effect; together, with a description of any such event
         or condition or a copy of any such notice and a statement by an officer
         of a Borrower briefly setting forth the details regarding such event,
         condition, or notice, and the action, if any, which has been or is
         being taken or is proposed to be taken with respect thereto. Promptly
         upon request, each Borrower shall furnish the Agent and each of the
         Lenders with such additional information concerning any Plan as may be
         reasonably requested, including, but not limited to, copies of each
         annual report/return (Form 5500 series), as well as all schedules and
         attachments thereto required to be filed with the Department of Labor
         and/or the Internal Revenue Service pursuant to ERISA and the Code,
         respectively, for each "plan year" (within the meaning of Section 3(39)
         of ERISA).

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

         Information required to be delivered pursuant to this Sections 7.1(a),
7.1(b) and 7.1(d) shall be deemed to have been delivered on the date on which
the Borrowers provide notice to the Lenders that such information has been
posted on the Securities and Exchange Commission website on the Internet at
sec.gov/edaux/searches.htm or at another website identified in such notice and
accessible by the Lenders without charge; provided that (i) such notice may be
included in a certificate delivered pursuant to Section 7.1(c) and (ii) the
Borrowers shall deliver paper copies of the information referred to in Sections
7.1(a), 7.1(b) and 7.1(d), to any Lender that requests such delivery.

                                       36
<PAGE>   41

         7.2 PRESERVATION OF EXISTENCE AND FRANCHISES.

         Each Borrower will, and will cause each Material Subsidiary to, do all
things necessary to preserve and keep in full force and effect its existence and
rights, franchises and authority; provided, however, that, subject to Section
8.3, a Borrower shall not be required to preserve any such existence, right or
franchise if it in good faith determines that preservation thereof is no longer
necessary or desirable in the conduct of its business and that the loss thereof
is not disadvantageous in any material respect to the Lenders.

         7.3 BOOKS AND RECORDS.

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

         7.4 COMPLIANCE WITH LAW.

         Each Borrower will comply, and will cause each Material Subsidiary to
comply, with all laws (including, without limitation, all Environmental Laws and
ERISA laws), rules, regulations and orders, and all applicable restrictions
imposed by all Governmental Authorities, applicable to it and its property, if
(a) the failure to comply would have or would be reasonably expected to have a
Material Adverse Effect or (b) the necessity of compliance therewith is being
contested in good faith by appropriate proceedings.

         7.5 PAYMENT OF TAXES AND OTHER INDEBTEDNESS.

         Each Borrower will, and will cause each Material Subsidiary to, pay,
settle or discharge (a) all taxes, assessments and governmental charges or
levies imposed upon it, or upon its income or profits, or upon any of its
properties, before they shall become delinquent, (b) all lawful claims
(including claims for labor, materials and supplies) which, if unpaid, might
give rise to a Lien upon any of its properties, and (c) all of its other
Indebtedness as it shall become due; provided, however, that no Borrower shall
be required to pay any such tax, assessment, charge, levy, claim or Indebtedness
which (i) is being contested in good faith by appropriate proceedings and as to
which adequate reserves therefor have been established in accordance with GAAP
or (ii) the nonpayment of which would not have a Material Adverse Effect.

         7.6 MAINTENANCE OF PROPERTY; INSURANCE.

                  (a) Each Borrower will keep, and will cause each Material
         Subsidiary to keep, all property useful and necessary in its business
         in good working order and condition, ordinary wear and tear excepted.

                  (b) Each Borrower will, and will cause each of its Material
         Subsidiaries to, maintain (either in the name of such Borrower or in
         such Material Subsidiary's own name) with financially sound and
         responsible insurance companies, insurance on all their

                                       37
<PAGE>   42

         respective properties in at least such amounts and against at least
         such risks (and with such risk retention) as are usually insured
         against in the same general area by companies of established repute
         engaged in the same or a similar business; provided that self-insurance
         by a Borrower or any such Material Subsidiary shall not be deemed a
         violation of this covenant to the extent that companies engaged in
         similar businesses and owning similar properties in the same general
         areas in which the Borrowers or such Material Subsidiary operates
         self-insure.

         7.7 USE OF PROCEEDS.

         The proceeds of the Loans may be used solely (a) to make a special
one-time distribution to Duke Energy Corporation and Phillips Petroleum Company
and for transaction costs in connection therewith, (b) to provide credit support
for each Borrower's commercial paper and (c) for other general corporate
purposes of each Borrower.

         7.8 AUDITS/INSPECTIONS.

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

         7.9 MAINTENANCE OF OWNERSHIP.

         Each Borrower will maintain ownership of all Capital Stock of each
Material Subsidiary, directly or indirectly, free and clear of all Liens except
as permitted by Section 8.3. The Borrowers will take such action as necessary to
ensure that, on and after the date that a Subsidiary of Phillips Petroleum is
merged into Duke Energy Field Services Corporation, Duke Energy Field Services,
LLC will be (and will remain) a wholly owned Subsidiary, direct or indirect, of
Duke Energy Field Services Corporation unless Duke Energy Field Services, LLC is
merged with and into Duke Energy Field Services Corporation.

                                   SECTION 8.

                               NEGATIVE COVENANTS

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

                                       38
<PAGE>   43

         8.1 NATURE OF BUSINESS.

         The Borrowers will not, and will not permit any of their Materials
Subsidiaries to, materially alter the character of their business on a
consolidated basis from that conducted as of the Closing Date.

         8.2. LIENS.

         A Borrower will not create, assume or suffer to exist any Lien on any
asset now owned or hereafter acquired by it or any of its Material Subsidiaries,
except for the following:

                  (a) Liens granted by such Borrower or any Material Subsidiary
         existing on the date of this Credit Agreement securing Indebtedness
         outstanding on the date of this Credit Agreement as set forth on
         Schedule 8.2.

                  (b) any Lien on any asset of any Person existing at the time
         such Person is merged or consolidated with or into a Borrower or any
         Material Subsidiary and not created in contemplation of such event.

                  (c) any Lien existing on any asset prior to the acquisition
         thereof by a Borrower or any Material Subsidiary and not created in
         contemplation of such acquisition.

                  (d) any Lien on any asset securing Indebtedness incurred or
         assumed for the purpose of financing all or any part of the cost of
         acquiring such asset; provided that such Lien attaches to such asset
         concurrently with or within 180 days after the acquisition thereof.

                  (e) any Lien arising out of the refinancing, extension,
         renewal or refunding of any Indebtedness secured by any Lien permitted
         by any of the foregoing clauses of this Section 8.2; provided that such
         Indebtedness is not increased and is not secured by any additional
         assets.

                  (f) Liens for taxes, assessments or other governmental charges
         or levies not yet due or which are being contested in good faith by
         appropriate proceedings and with respect to which adequate reserves or
         other appropriate provisions are being maintained in accordance with
         GAAP.

                  (g) statutory Liens of landlords and Liens of carriers,
         warehousemen, mechanics, materialmen and interest owners of oil and gas
         production and other Liens imposed by law, created in the ordinary
         course of business and for amounts not past due for more than 60 days
         or which are being contested in good faith by appropriate proceedings
         which are sufficient to prevent imminent foreclosure of such Liens, are

                                       39
<PAGE>   44

         promptly instituted and diligently conducted and with respect to which
         adequate reserves or other appropriate provisions are being maintained
         in accordance with GAAP.

                  (h) Liens incurred or deposits made in the ordinary course of
         business (including, without limitation, surety bonds and appeal bonds)
         in connection with workers' compensation, unemployment insurance and
         other types of social security benefits or to secure the performance of
         tenders, bids, leases, contracts (other than for the repayment of
         Indebtedness), statutory obligations and other similar obligations or
         arising as a result of progress payments under government contracts.

                  (i) easements (including, without limitation, reciprocal
         easement agreements and utility agreements), rights-of-way, covenants,
         consents, reservations, encroachments, variations and other
         restrictions, charges or encumbrances (whether or not recorded)
         affecting the use of real property.

                  (j) Liens with respect to judgments and attachments which do
         not result in an Event of Default.

                  (k) Liens, deposits or pledges to secure the performance of
         bids, tenders, contracts (other than contracts for the payment of
         money), leases (permitted under the terms of this Agreement), public or
         statutory obligations, surety, stay, appeal, indemnity, performance or
         other obligations arising in the ordinary course of business.

                  (l) rights of first refusal entered into in the ordinary
         course of business.

                  (m) Liens consisting of any (i) rights reserved to or vested
         in any municipality or governmental, statutory or public authority to
         control or regulate any property of a Borrower or any Material
         Subsidiary or to use such property in any manner which does not
         materially impair the use of such property for the purpose for which it
         is held by a Borrower or any such Material Subsidiary, (ii) obligations
         or duties to any municipality or public authority with respect to any
         franchise, grant, license, lease or permit and the rights reserved or
         vested in any Governmental Authority or public utility to terminate any
         such franchise, grant, license, lease or permit or to condemn or
         expropriate any property, or (iii) zoning laws, ordinances or municipal
         regulations.

                  (n) liens on deposits required by any Person with whom a
         Borrower or any Material Subsidiary enters into forward contracts,
         futures contracts, swap agreements or other commodities contracts in
         the ordinary course of business.

                  (o) other Liens, including Liens imposed by Environmental
         Laws, arising in the ordinary course of its business which (i) do not
         secure Indebtedness, (ii) do not secure any obligation in an amount
         exceeding $100,000,000 at any time, (iii) do not in the aggregate
         materially detract from the value of its assets or materially impair
         the use thereof in the operation of its business or (iv) in addition to
         those Liens described in

                                       40
<PAGE>   45

         clause (ii) above, secure reimbursement obligations under letters of
         credit not exceeding $100,000,000 outstanding at any one time.

         8.3 CONSOLIDATION AND MERGER.

         A Borrower will not, and will not permit any of its Material
Subsidiaries to, (a) enter into any transaction of merger or (b) consolidate,
liquidate, wind up or dissolve itself (or suffer any liquidation or
dissolution); provided that, so long as no Default or Event of Default shall
exist or be caused thereby: (i) a Person (including a Subsidiary of a Borrower)
may be merged or consolidated with or into a Borrower so long as such Borrower
shall be the continuing or surviving corporation and (ii) a Material Subsidiary
may merge with or into another Subsidiary of a Borrower.

         8.4 SALE OR LEASE OF ASSETS.

         During the term of this Credit Agreement, a Borrower will not, directly
or indirectly, convey, sell, lease, transfer or otherwise dispose of assets,
business or operations (other than the assets set forth on Schedule 8.4) with an
aggregate book value in excess of twenty-five percent (25%) of its consolidated
total assets, as determined in accordance with GAAP, as calculated as of the end
of the most recent fiscal quarter.

         8.5. TRANSACTIONS WITH AFFILIATES.

         A Borrower will not, and will not permit any Material Subsidiary to,
directly or indirectly, pay any funds to or for the account of, make any
investment in, lease, sell, transfer or otherwise dispose of any assets,
tangible or intangible, to, or participate in, or effect, any transaction with,
any officer, director, employee or Affiliate unless all such transactions
between such Borrower and its Material Subsidiaries on the one hand and any
officer, director, employee or Affiliate on the other, taken in the aggregate
and not individually, shall be on an arms-length basis and on terms no less
favorable to such Borrower or such Material Subsidiary than could have been
obtained from a third party who was not an officer, director, employee or
Affiliate; provided that the foregoing provisions of this Section shall not
prohibit a Borrower and each Material Subsidiary from declaring or paying any
lawful dividend so long as, after giving effect thereto, no Default or Event of
Default shall have occurred and be continuing.

                                       41
<PAGE>   46

                                   SECTION 9.

                                EVENTS OF DEFAULT

         9.1 EVENTS OF DEFAULT.

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

                  (a) Payment. A Borrower shall: (i) default in the payment when
         due of any principal of any of the Loans; or (ii) default, and such
         default shall continue for five or more Business Days, in the payment
         when due of any interest on the Loans or of any fees or other amounts
         owing hereunder, under any of the other Credit Documents or in
         connection herewith.

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

                  (c) Covenants. A Borrower shall:

                           (i) default in the due performance or observance of
                  any term, covenant or agreement contained in Section 7.1(e),
                  7.8, 8.1, 8.2, 8.3, 8.4 and 8.5.

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

                  (d) Credit Documents. Any Credit Document shall fail to be in
         full force and effect or a Borrower shall so assert or any Credit
         Document shall fail to give the Agent and/or the Lenders the rights,
         powers and privileges purported to be created thereby.

                  (e) Bankruptcy, etc. The occurrence of any of the following
         with respect to a Borrower or a Material Subsidiary (i) a court or
         governmental agency having jurisdiction in the premises shall enter a
         decree or order for relief in respect of a Borrower or a Material
         Subsidiary in an involuntary case under any applicable bankruptcy,
         insolvency or other similar law now or hereafter in effect, or appoint
         a receiver, liquidator, assignee, custodian, trustee, sequestrator or
         similar official of a Borrower or a Material Subsidiary or for any
         substantial part of its property or ordering the winding up or
         liquidation of its affairs; or (ii) an involuntary case under any
         applicable bankruptcy, insolvency or other similar law now or hereafter
         in effect is commenced against a Borrower or a Material Subsidiary and

                                       42
<PAGE>   47

         such petition remains unstayed and in effect for a period of 90
         consecutive days; or (iii) a Borrower or a Material Subsidiary shall
         commence a voluntary case under any applicable bankruptcy, insolvency
         or other similar law now or hereafter in effect, or consent to the
         entry of an order for relief in an involuntary case under any such law,
         or consent to the appointment or taking possession by a receiver,
         liquidator, assignee, custodian, trustee, sequestrator or similar
         official of such Person or any substantial part of its property or make
         any general assignment for the benefit of creditors; or (iv) a Borrower
         or a Material Subsidiary shall admit in writing its inability to pay
         its debts generally as they become due or any action shall be taken by
         such Person in furtherance of any of the aforesaid purposes.

                  (f) Defaults under Other Agreements. With respect to any
         Indebtedness or any Off Balance Sheet Indebtedness in excess of
         $100,000,000 (other than Indebtedness outstanding under this Credit
         Agreement) of a Borrower or any Material Subsidiary, such Borrower or
         such Material Subsidiary shall (A) default in any payment (beyond the
         applicable grace period with respect thereto, if any) with respect to
         any such Indebtedness or fail to timely pay such Indebtedness at
         maturity, or (B) default (after giving effect to any applicable grace
         period) in the observance or performance of any covenant or agreement
         relating to such Indebtedness or contained in any instrument or
         agreement evidencing, securing or relating thereto, or any other event
         or condition shall occur or condition exist, the effect of which
         default or other event or condition is to cause any such Indebtedness
         to become due prior to its stated maturity.

                  (g) Judgments. One or more judgments, orders, or decrees shall
         be entered against a Borrower or a Material Subsidiary involving a
         liability of $50,000,000 or more, in the aggregate, (to the extent not
         paid or covered by insurance provided by a carrier who has acknowledged
         coverage) and such judgments, orders or decrees shall continue
         unsatisfied, undischarged and unstayed for a period ending on the first
         to occur of (i) the last day on which such judgment, order or decree
         becomes final and unappealable and, where applicable, with the status
         of a judicial lien or (ii) 45 days.

                  (h) ERISA. The occurrence of any of the following events or
         conditions which could result in a liability of a Borrower or an ERISA
         Affiliate of $50,000,000 or more in the aggregate: (i) any "accumulated
         funding deficiency," as such term is defined in Section 302 of ERISA
         and Section 412 of the Code, whether or not waived, shall exist with
         respect to any Plan, or any lien shall arise on the assets of a
         Borrower or any ERISA Affiliate in favor of the PBGC or a Plan; (ii) a
         Termination Event shall occur with respect to a Single Employer Plan
         which is, in the reasonable opinion of the Agent, likely to result in
         the termination of such Plan for purposes of Title IV of ERISA; (iii) a
         Termination Event shall occur with respect to a Multiemployer Plan or
         Multiple Employer Plan which is, in the reasonable opinion of the
         Agent, likely to result in (A) the termination of such Plan for
         purposes of Title IV of ERISA, or (B) a Borrower or any ERISA Affiliate
         incurring any liability in connection with a withdrawal from,
         reorganization of (within the meaning of Section 4241 of ERISA), or
         insolvency (within the meaning of Section 4245 of ERISA) of such Plan;
         or (iv) any prohibited transaction (within the meaning of Section 406
         of ERISA or Section 4975 of the Code) or breach of fiduciary
         responsibility shall occur which would

                                       43
<PAGE>   48

         be reasonably expected to subject a Borrower or any ERISA Affiliate to
         any liability under Sections 406, 409, 502(i), or 502(l) of ERISA or
         Section 4975 of the Code, or under any agreement or other instrument
         pursuant to which a Borrower or any ERISA Affiliate has agreed or is
         required to indemnify any person against any such liability.

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

         9.2 ACCELERATION; REMEDIES.

         Upon the occurrence of an Event of Default, and at any time thereafter
unless and until such Event of Default has been waived by the Required Lenders
(or the Lenders as may be required hereunder), the Agent may, with the consent
of the Super Required Lenders, and shall, upon the request and direction of the
Super Required Lenders, by written notice to the Borrowers take any of the
following actions without prejudice to the rights of the Agent or any Lender to
enforce its claims against the Borrowers, except as otherwise specifically
provided for herein:

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

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

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

Notwithstanding the foregoing, if an Event of Default specified in Section
9.1(e) shall occur, then the Commitments shall automatically terminate and all
Loans, all accrued interest in respect thereof, all accrued and unpaid fees and
other indebtedness or obligations owing to the Lenders and the Agent hereunder
shall immediately become due and payable without the giving of any notice or
other action by the Agent or the Lenders.

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

                                       44
<PAGE>   49

         9.3 ALLOCATION OF PAYMENTS AFTER EVENT OF DEFAULT.

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

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

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

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

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

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

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

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

                                   SECTION 10

                                AGENCY PROVISIONS

         10.1 APPOINTMENT.

         Each Lender hereby designates and appoints Bank of America, N.A. as
agent of such Lender to act as specified herein and the other Credit Documents,
and each such Lender hereby authorizes the Agent, as the agent for such Lender,
to take such action on its behalf under the provisions of this Credit Agreement
and the other Credit Documents and to exercise such powers

                                       45
<PAGE>   50

and perform such duties as are expressly delegated by the terms hereof and of
the other Credit Documents, together with such other powers as are reasonably
incidental thereto. Notwithstanding any provision to the contrary elsewhere
herein and in the other Credit Documents, the Agent shall not have any duties or
responsibilities, except those expressly set forth herein and therein, or any
fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Credit Agreement or any of the other Credit Documents, or shall otherwise exist
against the Agent. The provisions of this Section are solely for the benefit of
the Agent and the Lenders and the Borrowers shall not have any rights as a third
party beneficiary of the provisions hereof. In performing its functions and
duties under this Credit Agreement and the other Credit Documents, the Agent
shall act solely as agent of the Lenders and does not assume and shall not be
deemed to have assumed any obligation or relationship of agency or trust with or
for a Borrower.

         10.2 DELEGATION OF DUTIES.

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

         10.3 EXCULPATORY PROVISIONS.

         Neither the Agent nor any of its officers, directors, employees,
agents, attorneys-in-fact or Affiliates shall be liable for any action lawfully
taken or omitted to be taken by it or such Person under or in connection
herewith or in connection with any of the other Credit Documents (except for its
or such Person's own gross negligence or willful misconduct), or responsible in
any manner to any of the Lenders for any recitals, statements, representations
or warranties made by a Borrower contained herein or in any of the other Credit
Documents or in any certificate, report, statement or other document referred to
or provided for in, or received by the Agent under or in connection herewith or
in connection with the other Credit Documents, or enforceability or sufficiency
therefor of any of the other Credit Documents, or for any failure of a Borrower
to perform its obligations hereunder or thereunder. The Agent shall not be
responsible to any Lender for the effectiveness, genuineness, validity,
enforceability, collectibility or sufficiency of this Credit Agreement, or any
of the other Credit Documents or for any representations, warranties, recitals
or statements made herein or therein or made by a Borrower in any written or
oral statement or in any financial or other statements, instruments, reports,
certificates or any other documents in connection herewith or therewith
furnished or made by the Agent to the Lenders or by or on behalf of a Borrower
to the Agent or any Lender or be required to ascertain or inquire as to the
performance or observance of any of the terms, conditions, provisions, covenants
or agreements contained herein or therein or as to the use of the proceeds of
the Loans or of the existence or possible existence of any Default or Event of
Default or to inspect the properties, books or records of a Borrower. The Agent
is not a trustee for the Lenders and owes no fiduciary duty to the Lenders.

                                       46
<PAGE>   51

         10.4 RELIANCE ON COMMUNICATIONS.

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

         10.5 NOTICE OF DEFAULT.

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

         10.6 NON-RELIANCE ON AGENT AND OTHER LENDERS.

         Each Lender expressly acknowledges that neither the Agent nor any of
its officers, directors, employees, agents, attorneys-in-fact or Affiliates has
made any representations or warranties to it and that no act by the Agent or any
Affiliate thereof hereinafter taken, including any review of the affairs of the
Borrowers, shall be deemed to constitute any representation or warranty by the
Agent to any Lender. Each Lender represents to the Agent that it has,
independently and without reliance upon the Agent or any other Lender, and based
on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, assets, operations, property,
financial and other conditions, prospects and creditworthiness of the Borrowers
and made its own decision to make its Extensions of Credit hereunder and enter
into this Credit Agreement. Each Lender also represents that it will,
independently and without reliance upon the Agent or any other Lender, and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or
not taking action under this Credit Agreement, and to make such investigation as
it deems

                                       47
<PAGE>   52

necessary to inform itself as to the business, assets, operations, property,
financial and other conditions, prospects and creditworthiness of the Borrowers.
Except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Agent hereunder, the Agent shall not have any
duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, assets, property, financial or
other conditions, prospects or creditworthiness of the Borrowers which may come
into the possession of the Agent or any of its officers, directors, employees,
agents, attorneys-in-fact or Affiliates.

         10.7 INDEMNIFICATION.

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

         10.8 AGENT IN ITS INDIVIDUAL CAPACITY.

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

         10.9 SUCCESSOR AGENT.

         The Agent may, at any time, resign upon 30 days written notice to the
Lenders and the Borrowers. Upon any such resignation, the Borrowers with the
consent of the Required Lenders (such consent of the Required Lenders not to be
unreasonably withheld or delayed) shall have the right to appoint a successor
Agent. If no successor Agent shall have been so appointed and shall have
accepted such appointment within 30 days after the notice of resignation, then
the retiring Agent shall select a successor Agent provided such successor is a
Lender hereunder or qualifies as

                                       48
<PAGE>   53

an Eligible Assignee (or if no Eligible Assignee shall have been so appointed by
the retiring Agent and shall have accepted such appointment, then the Lenders
shall perform all obligations of the retiring Agent hereunder until such time,
if any, as a successor Agent shall have been appointed and shall have accepted
such appointment as provided for above). Upon the acceptance of any appointment
as Agent hereunder by a successor, such successor Agent shall thereupon succeed
to and become vested with all the rights, powers, privileges and duties of the
retiring Agent, and the retiring Agent shall be discharged from its duties and
obligations as Agent, as appropriate, under this Credit Agreement and the other
Credit Documents and the provisions of this Section 10.9 shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was Agent
under this Credit Agreement.

                                   SECTION 11.

                                  MISCELLANEOUS

         11.1 NOTICES.

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

         11.2 RIGHT OF SET-OFF.

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

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<PAGE>   54

         11.3 BENEFIT OF AGREEMENT.

                  (a) Generally. This Credit Agreement shall be binding upon and
         inure to the benefit of and be enforceable by the respective successors
         and assigns of the parties hereto; provided that, except as set forth
         in Section 2.10, a Borrower may not assign and transfer any of its
         interests without the prior written consent of the Lenders; and
         provided further that the rights of each Lender to transfer, assign or
         grant participations in its rights and/or obligations hereunder shall
         be limited as set forth below in this Section 11.3.

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

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

                           (ii) except in the case of an assignment to another
                  Lender or an assignment of all of a Lender's rights and
                  obligations under this Credit Agreement, any such partial
                  assignment shall be in an amount at least equal to $20,000,000
                  (or, if less, the remaining amount of the Commitment being
                  assigned by such Lender) and an integral multiple of
                  $1,000,000 in excess thereof; and

                           (iii) the parties to such assignment shall execute
                  and deliver to the Agent for its acceptance an Assignment
                  Agreement in substantially the form of Exhibit 11.3(b),
                  together with a processing fee from the assignor of $3,500.

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

                  By executing and delivering an assignment agreement in
         accordance with this Section 11.3(b), the assigning Lender thereunder
         and the assignee thereunder shall be deemed to confirm to and agree
         with each other and the other parties hereto as follows: (A) such
         assigning Lender warrants that it is the legal and beneficial owner of
         the interest being assigned thereby free and clear of any adverse claim
         created by such assigning Lender and the assignee warrants that it is
         an Eligible Assignee; (B) except as set forth in clause (A) above, such
         assigning Lender makes no representation or warranty and assumes no
         responsibility with respect to any statements, warranties or
         representations

                                       50
<PAGE>   55

         made in or in connection with this Credit Agreement, any of the other
         Credit Documents or any other instrument or document furnished pursuant
         hereto or thereto, or the execution, legality, validity,
         enforceability, genuineness, sufficiency or value of this Credit
         Agreement, any of the other Credit Documents or any other instrument or
         document furnished pursuant hereto or thereto or the financial
         condition of the Borrowers or the performance or observance by the
         Borrowers of any of their obligations under this Credit Agreement, any
         of the other Credit Documents or any other instrument or document
         furnished pursuant hereto or thereto; (C) such assignee represents and
         warrants that it is legally authorized to enter into such assignment
         agreement; (D) such assignee confirms that it has received a copy of
         this Credit Agreement, the other Credit Documents and such other
         documents and information as it has deemed appropriate to make its own
         credit analysis and decision to enter into such assignment agreement;
         (E) such assignee will independently and without reliance upon the
         Agent, such assigning Lender or any other Lender, and based on such
         documents and information as it shall deem appropriate at the time,
         continue to make its own credit decisions in taking or not taking
         action under this Credit Agreement and the other Credit Documents; (F)
         such assignee appoints and authorizes the Agent to take such action on
         its behalf and to exercise such powers under this Credit Agreement or
         any other Credit Document as are delegated to the Agent by the terms
         hereof or thereof, together with such powers as are reasonably
         incidental thereto; and (G) such assignee agrees that it will perform
         in accordance with their terms all the obligations which by the terms
         of this Credit Agreement and the other Credit Documents are required to
         be performed by it as a Lender.

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

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

                  (e) Participations. Each Lender may sell participations to one
         or more Persons in all or a portion of its rights, obligations or
         rights and obligations under this Credit Agreement (including all or a
         portion of its Commitment, its Notes and its Loans); provided, however,
         that (i) such Lender's obligations under this Credit Agreement shall

                                       51
<PAGE>   56

         remain unchanged, (ii) such Lender shall remain solely responsible to
         the other parties hereto for the performance of such obligations, (iii)
         the participant shall be entitled to the benefit of the yield
         protection provisions contained in Sections 4.1 through 4.4, inclusive,
         but shall not be entitled to receive any amount greater than such
         Lender would have been able to receive, and (iv) the Borrowers shall
         continue to deal solely and directly with such Lender in connection
         with such Lender's rights and obligations under this Credit Agreement,
         and such Lender shall retain the sole right to enforce the obligations
         of the Borrowers relating to its Loans and its Notes and to approve any
         amendment, modification, or waiver of any provision of this Credit
         Agreement (other than amendments, modifications, or waivers decreasing
         the amount of principal of or the rate at which interest is payable on
         such Loans or Notes, extending any scheduled principal payment date or
         date fixed for the payment of interest on such Loans or Notes, or
         extending its Commitment).

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

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

                  (h) Costs Associated With Assignment. All reasonable
         out-of-pocket costs and expenses of the Agent, the assigning Lender and
         the assignee Lender associated with the preparation, execution and
         delivery of an Assignment Agreement and any documents related thereto
         (including, without limitation, the reasonable fees and disbursements
         of counsel) shall be paid by the assigning Lender (or such other Person
         as agreed to by the assigning Lender, the assignee Lender and the
         Agent).

         11.4 NO WAIVER; REMEDIES CUMULATIVE.

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

                                       52
<PAGE>   57

         11.5 PAYMENT OF EXPENSES, ETC.

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

         11.6 AMENDMENTS, WAIVERS AND CONSENTS.

         Neither this Credit Agreement, nor any other Credit Document nor any of
the terms hereof or thereof may be amended, changed, waived, discharged or
terminated unless such amendment, change, waiver, discharge or termination is in
writing and signed by the Required Lenders and the Borrowers; provided that no
such amendment, change, waiver, discharge or termination shall without the
consent of each Lender affected thereby:

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

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

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

                                       53
<PAGE>   58

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

                  (e) except as permitted by Section 2.10, consent to the
         assignment or transfer by a Borrower of any of its rights and
         obligations under (or in respect of) the Credit Documents or release a
         Borrower from its obligations under the Credit Documents;

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

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

No amendment or change that affects the application of prepayments pursuant to
Section 3.2(c) or the allocation of payments between the Revolving-A Loans and
the Revolving-B Loans shall be effective unless Lenders holding in the aggregate
at least 51% of the Revolving-A Loan Commitment and at least 51% of the
Revolving-B Loan Commitment shall consent to such amendment or change in
allocation of payments.

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

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

         11.7 COUNTERPARTS/TELECOPY.

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

         11.8 HEADINGS.

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

                                       54
<PAGE>   59

         11.9 DEFAULTING LENDER.

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

         11.10 SURVIVAL OF INDEMNIFICATION AND REPRESENTATIONS AND WARRANTIES.

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

         11.11 GOVERNING LAW; VENUE.

                  (a) THIS CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND
         THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER
         SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH
         THE LAWS OF THE STATE OF NEW YORK. Any legal action or proceeding with
         respect to this Credit Agreement or any other Credit Document may be
         brought in the courts of the State of New York, or of the United States
         for the Southern District of New York, and, by execution and delivery
         of this Credit Agreement, each Borrower hereby irrevocably accepts for
         itself and in respect of its property, generally and unconditionally,
         the jurisdiction of such courts. Each Borrower further irrevocably
         consents to the service of process out of any of the aforementioned
         courts in any such action or proceeding by the mailing of copies
         thereof by registered or certified mail, postage prepaid, to it at the
         address for notices pursuant to Section 11.1, such service to become
         effective 30 days after such mailing. Nothing herein shall affect the
         right of a Lender to serve process in any other manner permitted by law
         or to commence legal proceedings or to otherwise proceed against a
         Borrower in any other jurisdiction.

                  (b) Each Borrower hereby irrevocably waives any objection
         which it may now or hereafter have to the laying of venue of any of the
         aforesaid actions or proceedings arising out of or in connection with
         this Credit Agreement or any other Credit Document brought in the
         courts referred to in subsection (a) hereof and hereby further
         irrevocably waives and agrees not to plead or claim in any such court
         that any such action or proceeding brought in any such court has been
         brought in an inconvenient forum.

         11.12 WAIVER OF JURY TRIAL; WAIVER OF CONSEQUENTIAL DAMAGES.

         EACH OF THE PARTIES TO THIS CREDIT AGREEMENT HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR

                                       55
<PAGE>   60

COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS CREDIT AGREEMENT, ANY OF THE
OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY. Each Borrower
agrees not to assert any claim against the Agent, any Lender, any of their
Affiliates, or any of their respective directors, officers, employees, attorneys
or agents, on any theory of liability, for special, indirect, consequential or
punitive damages arising out of or otherwise relating to any of the transactions
contemplated hereby or by the other Credit Documents.

         11.13 SEVERABILITY.

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

         11.14 FURTHER ASSURANCES.

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

         11.15 ENTIRETY.

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

         11.16 BINDING EFFECT; CONTINUING AGREEMENT.

                  (a) This Credit Agreement shall become effective at such time
         when all of the conditions set forth in Section 5.1 have been satisfied
         or waived by the Lenders and it shall have been executed by the
         Borrowers, the Agent and the Lenders, and thereafter this Credit
         Agreement shall be binding upon and inure to the benefit of the
         Borrowers, the Agent and each Lender and their respective successors
         and permitted assigns.

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

                  [Remainder of Page Intentionally Left Blank]

                                       56
<PAGE>   61

      Signature Page to Duke Energy Field Services 364-Day Credit Agreement

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

BORROWERS:             DUKE ENERGY FIELD SERVICES, LLC
                       a Delaware limited liability company

                       By: /s/ DAVID D. FREDERICK
                          -------------------------------------------------
                       Name: David D. Frederick
                            ------------------------------------------------
                       Title: Senior Vice President/Chief Financial Officer
                             -----------------------------------------------

                       DUKE ENERGY FIELD SERVICES CORPORATION,
                       a Delaware corporation

                       By: /s/ DAVID D. FREDERICK
                          -------------------------------------------------
                       Name: David D. Frederick
                            ------------------------------------------------
                       Title: Senior Vice President/Chief Financial Officer
                             -----------------------------------------------

<PAGE>   62

      Signature Page to Duke Energy Field Services 364-Day Credit Agreement

LENDERS:                BANK OF AMERICA, N.A., individually in its
                        capacity as a Lender and in its capacity as Agent

                        By: /s/ GRETCHEN P. BURUD
                           ----------------------------------------------------
                        Name: Gretchen P. Burud
                             --------------------------------------------------
                        Title: Principal
                              -------------------------------------------------

<PAGE>   63

      Signature Page to Duke Energy Field Services 364-Day Credit Agreement

                        LEHMAN COMMERCIAL PAPER INC.

                        By: /s/ MICHELE SWANSON
                           ----------------------------------------------------
                        Name: Michele Swanson
                             --------------------------------------------------
                        Title: Authorized Signatory
                              -------------------------------------------------

<PAGE>   64

      Signature Page to Duke Energy Field Services 364-Day Credit Agreement

                        MERRILL LYNCH CAPITAL CORPORATION

                        By: /s/ CAROL J.E. FEELEY
                           ----------------------------------------------------
                        Name: Carol J.E. Feeley
                             --------------------------------------------------
                        Title: Vice President
                              -------------------------------------------------
                               Merrill Lynch Capital Corp.

<PAGE>   65

      Signature Page to Duke Energy Field Services 364-Day Credit Agreement

                        THE CHASE MANHATTAN BANK

                        By: /s/ STEVEN WOOD
                           ----------------------------------------------------
                        Name: Steven Wood
                             --------------------------------------------------
                        Title: Vice President
                              -------------------------------------------------

<PAGE>   66

      Signature Page to Duke Energy Field Services 364-Day Credit Agreement

                        MORGAN STANLEY SENIOR FUNDING, INC.

                        By: /s/ MICHAEL T. MCLAUGHLIN
                           ----------------------------------------------------
                        Name: Michael T. McLaughlin
                             --------------------------------------------------
                        Title: Principal
                              -------------------------------------------------

<PAGE>   67

      Signature Page to Duke Energy Field Services 364-Day Credit Agreement

                        MORGAN GUARANTY TRUST COMPANY OF NEW YORK

                        By: /s/ ROBERT BOTTAMEDI
                           ----------------------------------------------------
                        Name: Robert Bottamedi
                             --------------------------------------------------
                        Title: Vice President
                              -------------------------------------------------<PAGE>   1
                                                                   EXHIBIT 10.13

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

                           REVOLVING CREDIT AGREEMENT

                                     BETWEEN

                        DUKE ENERGY FIELD SERVICES, LLC,
                                   AS BORROWER

                                       AND

                            DUKE CAPITAL CORPORATION
                                    AS LENDER

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

                            DATED AS OF APRIL 4, 2000

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

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

<PAGE>   2

                                TABLE OF CONTENTS

                                                                       Page

SECTION 1.        DEFINITIONS, CHANGE OF OBLIGOR........................1

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

       1.2    Change of Obligor.........................................3

SECTION 2.        THE LOANS.............................................3

       2.1    Commitment to Lend........................................3

       2.2    Method of Borrowing.......................................4

       2.3    Repayment of the Loans....................................4

       2.4    Evidence of the Loans.....................................4

       2.5    Interest Rate and Payments................................5

       2.6    Reduction and Cancellation of the Commitment..............5

       2.7    General Provisions as to Payments.........................5

       2.8    Computation of Interest and Fees..........................5

       2.9    No Deduction..............................................5

       2.10   Use of Proceeds...........................................5

SECTION 3.        CONDITIONS OF LENDING.................................6

SECTION 4.        REPRESENTATIONS AND WARRANTIES........................6

       4.1    Corporate Existence and Power.............................6

       4.2    Corporate Authorization...................................6

       4.3    Binding Effect............................................7

       4.4    No Contravention..........................................7

       4.5    Financial Statements......................................7

       4.6    Litigation................................................7

       4.7    No Default................................................7

       4.8    No Event of Default.......................................8

       4.9    Adverse Change............................................8

       4.10   Liens.....................................................8

       4.11   Compliance with Laws......................................8

       4.12   Taxes.....................................................8

       4.13   Labor Matters.............................................8

       4.14   Completeness..............................................9

                                     i

<PAGE>   3

SECTION 5.        EVENTS OF DEFAULT.....................................9

SECTION 6.        MISCELLANEOUS........................................10

       6.1    Notices..................................................10

       6.2    Successors and Assigns...................................11

       6.3    Counterparts.............................................11

       6.4    Headings; Table of Contents..............................11

       6.5    Governing Law............................................11

                                   ii
<PAGE>   4

                           REVOLVING CREDIT AGREEMENT

         REVOLVING CREDIT AGREEMENT, dated as of April 4, 2000, between Duke
Energy Field Services, LLC, a Delaware limited liability company (the
"Borrower"), and DUKE CAPITAL CORPORATION, a Delaware corporation (the
"Lender").

                   SECTION 1. DEFINITIONS, CHANGE OF OBLIGOR.
                              ------------------------------

         1.1  Definitions. Capitalized terms used and not defined herein shall
have the meanings given to them in the 364-Day Credit Agreement among the
Borrower, Duke Energy Field Services Corporation ("DEFS Corp."), the Lenders
identified therein, and Bank of America, N.A., as Agent, dated as of March 31,
2000 (the "364-Day Credit Agreement"). The following terms, as used herein,
shall have the following respective meanings:

         "Agreement" means this Revolving Credit Agreement, as amended,
restated, extended or otherwise modified from time to time in accordance with
the terms hereof.

         "Base Rate" means the 30-day London Interbank Offered Rate, as defined
in the 364-Day Credit Agreement, plus .50% per annum.

          "Business Day" means any day except a Saturday, Sunday or other day on
which commercial banks in New York, New York are authorized or directed to
close.

          "Commitment" means $100,000,000, as such amount may be reduced from
time to time pursuant to Section 2.7 hereof.

         "Consolidated" refers to the results obtained by the consolidation of
the accounts of the Borrower and its Subsidiaries in accordance with Generally
Accepted Accounting Principles.

         "Consolidated Subsidiaries" means the Subsidiaries of Borrower which
are consolidated with Borrower for financial reporting purposes.

         "Debt" of any Person means at any date, without duplication, (i) all
obligations of such Person for borrowed money, (ii) all obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments, (iii)
all obligations of such Person to pay the deferred purchase price of property or
services, except trade accounts payable arising in the ordinary course of
business, (iv) all obligations of such Person as lessee under capital leases,
(v) all Debt of others secured by a Lien on any asset of such Person, whether or
not such Debt is assumed by such Person, and (vi) all Debt of others Guaranteed
by such Person.

         "Default" means any event or condition, which constitutes an Event of
Default or which with the giving of notice or lapse of time, or both, would
become an Event of Default.

          "Dollars" and the sign "$" mean lawful money of the United States.

<PAGE>   5

          "Events of Default" shall have the meaning given to that term in
Section 5 hereof.

          "Generally Accepted Accounting Principles" means generally accepted
accounting principles set forth from time to time in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and promulgations of the Financial
Accounting Standards Board (or agencies with similar functions of comparable
stature and authority within the accounting profession), or in such other
statements by such other entity as may be in general use by significant segments
of the U.S. accounting profession, which are applicable to the circumstances as
of the date of determination.

         "Governmental Authority" means any nation or government, any state or
other political subdivision thereof, any central bank (or similar monetary or
regulatory authority) thereof, any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government
and any corporation or entity whose stock or capital ownership is owned or
controlled by any of the foregoing.

         "Guarantee" by any Person means any obligation, contingent or
otherwise, of such Person directly or indirectly guaranteeing any Debt of any
other Person or in any manner providing for the payment of any Debt of any other
Person or otherwise protecting the holder of such Debt against loss (whether by
agreement to keep-well, to purchase assets, goods, securities or services, or to
take-or-pay or otherwise), provided that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of business.

         "Lien" means with respect to any property or asset (or any income or
profits therefrom) of any Person (in each case whether the same is consensual or
nonconsensual or arises by contract, operation of law, legal process or
otherwise) (a) any mortgage, lien, pledge, attachment, levy or other security
interest of any kind thereupon or in respect thereof, but not including the
interest of a third party in receivables sold by such Person to such third party
on a non-recourse basis or (b) any other arrangement, express or implied, under
which the same is subordinated, transferred, sequestered or otherwise identified
so as to subject the same to, or make the same available for, the payment or
performance of any liability in priority to the payment of the ordinary,
unsecured liabilities of such Person. For the purposes of this Agreement, a
Person shall be deemed to own subject to a Lien any asset that 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 asset.

         "Loan" means a loan made by the Lender to Borrower pursuant to Section
2, or all such Loans, as the context may require.

          "Material Adverse Effect" means a material adverse effect on the
business, financial position or results of operations of the Borrower and its
Subsidiaries taken as a whole.

         "Obligation" means as applied to any Person, any law, decree,
regulation or similar enactment, any instrument, agreement or other obligation
or any judgment, injunction or other order or award of any judicial,
administrative or governmental authority or arbitrator by which such Person or
any of its Properties is bound.

                                       2
<PAGE>   6

          "Person" means an individual, a corporation, a partnership, a limited
liability company, an association, a business trust or any other entity or
organization, including a government or political subdivision or an agency or
instrumentality thereof.

          "Property" means any estate or interest in any kind of property or
asset, whether real, personal or mixed, and whether tangible or intangible.

         "Subsidiary" means, as to any Person, any corporation, association,
partnership, joint venture or other business entity of which more than 50% of
the voting capital stock or other voting ownership interests is owned or
controlled directly or indirectly by such Person or by one or more of the
Subsidiaries of such Person or by a combination thereof.

         "Tax" means all taxes, levies, imposts, stamp taxes, sales tax, goods
and services tax, duties, charges to tax, fees, deductions, withholdings and any
restrictions or conditions resulting in a charge to tax, in each case imposed by
or payable to a government or governmental agency, and all penalty, interest and
other payments on or in respect thereof.

         "Term of this Agreement" means the period from the date hereof to and
including the Termination Date.

         "Termination Date" means May 31, 2000.

         1.2  Change of Obligor.

         Coincident with the assumption by DEFS Corp. of any liability under the
364-Day Credit Agreement pursuant to Section 2.10(c) thereof, DEFS Corp. shall
become the Borrower under this Agreement and shall be deemed to be the Borrower
hereunder for all purposes, and DEFS LLC's status as Borrower will terminate.
All references herein to the Borrower as a limited liability company shall
thereafter be deemed amended to reflect the identity and corporate form of DEFS
Corp., mutatis mutandis.

                              SECTION 2. THE LOANS.
                                         ---------

         2.1  Commitment to Lend.

         (a) During the Term of this Agreement the Lender agrees, on the terms
and conditions contained in this Agreement, to make Loans to the Borrower at any
time prior to the Termination Date in an aggregate amount not exceeding at any
one time outstanding the Commitment in effect at the time the Loans are made.
The Borrower shall repay Loans in accordance with Section 2.3 and may reborrow
under this Section 2.1(a) at any time.

         (b) Any other provision of this Agreement to the contrary
notwithstanding, the Lender shall not be obligated to make a Loan to the
Borrower at any time that the Borrower is, or after giving effect to the making
of the Loan the Borrower would be, in violation of any of the

                                       3
<PAGE>   7

terms, conditions, covenants or provisions of this Agreement including, without
limitation, the terms and conditions contained in Section 3 hereof.

         2.2  Method of Borrowing.

         (a) With respect to each Loan made pursuant to Section 2.1 hereof, the
Borrower shall give the Lender a notice of borrowing notifying the Lender of its
request to borrow hereunder, which notice will specify (i) the date of the Loan,
which date shall be a Business Day, and (ii) the principal amount of the Loan,
which shall be $100,000 or a greater integral multiple thereof. The notice of
borrowing shall be written or electronic communication.

         (b) If the Borrower gives the notice required by Section 2.2(a) with
respect to any Loan before 10:00 a.m. (Eastern Time), the Lender will disburse
the proceeds of the Loan to the Borrower in immediately available funds on the
date of such notice, or such other day as indicated on the request. The Lender
will disburse all Loans to the Borrower in such account as shall be designated
by the Borrower in the applicable notice of borrowing.

         2.3  Repayment of the Loans.

         (a) The Borrower agrees that it shall repay all Loans on or before the
Termination Date.

         (b) The Borrower may repay the outstanding principal amount of Loans in
whole or in part on any Business Day upon notice to the Lender given not later
than 10:00 a.m. (Eastern Time) on the Business Day prior to the proposed payment
date. Notice hereunder shall specify the date of the repayment and the principal
amount to be repaid (which amount shall be an integral multiple of $100,000).
Each such repayment shall be made on the dates specified and, subject to
compliance with the foregoing procedures, may be made at any time without cost
or penalty of any kind.

         2.4  Evidence of the Loans.

         (a) The Loans made to the Borrower shall be evidenced by this Agreement
and by a loan account in the Borrower's name to be maintained by the Lender. All
Loans shall be payable by the Borrower to the order of the Lender not later than
the Termination Date.

         (b) The Lender's loan account shall reflect appropriate notations
evidencing the date and the amount of each Loan and the date and amount of each
payment of principal and interest made by the Borrower with respect thereto. The
loan account shall be conclusive evidence, absent manifest error, of the amount
of the Loans, the interest accrued and payable thereon and all interest and
principal payments made thereon. Any failure to record or any error therein
shall in no way limit or otherwise affect the obligations of the Borrower
hereunder to pay any amount owing with respect to the Loans.

                                       4
<PAGE>   8

         2.5  Interest Rate and Payments.

         (a) Loans shall bear interest on the outstanding principal amount
thereof, for each day during which any Loans are outstanding, at a rate per
annum equal to the Base Rate as in effect from time to time. Interest on Loans
shall be payable monthly in arrears and on the Termination Date. The Lender will
notify the Borrower in writing or electronically, not later than three days
after the end of each month, of the amount of interest payable hereunder with
respect to Loans, which notice will set forth in reasonable detail the
calculation of such amount. The Borrower agrees that it shall pay each monthly
installment of interest within five Business Days after the date on which it
receives such notice.

         (b) To the extent permitted by law, overdue interest on the Loans shall
bear interest, payable on demand of the Lender, for each day until paid at a
rate per annum equal to the Base Rate plus 2%.

         2.6  Reduction and Cancellation of the Commitment. The Commitment shall
terminate on the Termination Date, and any Loans then outstanding (together with
accrued but unpaid interest thereon) shall be repaid in full on such date.

         2.7  General Provisions as to Payments. Subject to the provisions of
Section 2.3(b), the Borrower shall make each payment of principal of, and
interest on, the Loans in funds immediately available in the account that the
Lender shall designate. Whenever any payment of principal of, or interest on,
the Loans shall be due on a day which is not a Business Day, the date for
payment thereof shall be extended to the next succeeding Business Day. If the
date for any payment of principal is extended by operation of law or otherwise,
interest shall be payable for such extended time at a rate per annum equal to
the Base Rate.

         2.8  Computation of Interest and Fees.  Interest on Loans  shall be
computed for each day on the basis of a year of 360 days.

         2.9  No Deduction.  All amounts payable by the Borrower under this
Agreement are payable without deduction or set-off unless specifically agreed to
by the Lender in writing.

         2.10  Use of Proceeds. The proceeds of Loans will be employed by the
Borrower for general corporate purposes including, without limitation, as
working capital for the Borrower and its Subsidiaries.

                        SECTION 3. CONDITIONS OF LENDING.
                                   ---------------------

         The obligation of the Lender to make each Loan hereunder is subject to
the performance by the Borrower of all its obligations under this Agreement and
to the satisfaction of the following further conditions:

                                       5
<PAGE>   9

         (a) receipt by the Lender of a notice of borrowing from the Borrower
required by Section 2.2(a) hereof;

         (b) the fact that immediately after the making of the Loan no Default
or Event of Default shall have occurred and be continuing;

         (c) the fact that the representations and warranties contained in this
Agreement are true and correct on and as of the date of the Loan with the same
force and effect as if made on and as of such date; and

         (d) the fact that Borrower continues to be a Consolidated Subsidiary of
the Lender.

Each notice of borrowing and each borrowing by the Borrower hereunder shall be
deemed to be a representation and warranty by the Borrower on the date of such
Loan as to the facts specified in (b) and (c) above. If the Lender reasonably
believes, acting in good faith, that the conditions set forth in (b) and (c)
above cannot or would not be satisfied, the Lender will have no obligation to
make the applicable Loan.

                   SECTION 4. REPRESENTATIONS AND WARRANTIES.
                              ------------------------------

         The Borrower hereby represents and warrants to the Lender that:

         4.1  Corporate Existence and Power. The Borrower is a limited liability
company duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization, has full power and authority to carry on
its business as now being conducted and to own its properties and is duly
licensed or qualified and in good standing as a foreign limited liability
company in each other jurisdiction in which failure to qualify would have a
Material Adverse Effect. The Borrower is in compliance with its Limited
Liability Company Certificate, limited liability company agreement and all other
organizational or governing documents.

         4.2  Corporate Authorization. The execution, delivery and performance
by the Borrower of this Agreement are within the Borrower's corporate power and
have been duly authorized by all necessary corporate, partnership or membership
action.

         4.3  Binding Effect. This Agreement constitutes the valid and binding
obligation of the Borrower enforceable against the Borrower in accordance with
its terms, except as may be limited by bankruptcy or insolvency laws or similar
laws affecting creditors' rights generally, or by general equitable principles.

         4.4  No Contravention.  The Borrower's execution and delivery of, and
performance of its obligations under, this Agreement do not, and consummation of
the transactions contemplated hereby will not, result in:

                                       6
<PAGE>   10

         (a) a violation of or a conflict with any provision of the Limited
Liability Company Certificate, limited liability company agreement or any other
organizational or governing document of the Borrower;

         (b) a material breach or default under any provision of any contract,
agreement, lease, commitment, license, franchise or permit to which the Borrower
is a party or by which any property of the Borrower is bound;

         (c) a material violation of any statute, rule, regulation, ordinance,
order, judgment, writ, injunction, decree or award of any judicial,
administrative, governmental or other authority or of any arbitrator; or

         (d) an imposition on the business of the Borrower or on any of its
properties of any Lien.

         4.5  Financial Statements. The combined financial statements of DEFS
Corp. and affiliates which have previously been delivered to the Lender, fairly
present in conformity with Generally Accepted Accounting Principles, the
combined financial position of DEFS Corp. and affiliates at the dates and the
combined results of operations for the periods ended, as of the dates for which
they are given.

         4.6  Litigation. There is no action, suit, litigation or proceeding at
law or in equity or by or before any Governmental Authority now pending against
or, to the knowledge of the Borrower, threatened against the Borrower or any of
its Subsidiaries or any of their respective Properties, an adverse decision in
which could reasonably be expected to have a Material Adverse Effect, except as
disclosed in the Form S-1 Registration Statement (File No. 333-32502), filed by
DEFS Corp. with the Securities and Exchange Commission.

         4.7  No Default. None of the Borrower or the Borrower's Subsidiaries
(i) is in breach or violation of any of the terms, covenants, conditions or
provisions of any of its Obligations such as reasonably could be expected to
have a Material Adverse Effect; or (ii) has done or omitted to do anything
which, with the giving of notice or lapse of time, or both, would constitute a
material default under any of its obligations or reasonably could be expected to
have a Material Adverse Effect.

         4.8  No Event of Default. No Event of Default or other material event
which, with the giving of notice or lapse of time, or both, would constitute an
Event of Default has occurred and is continuing.

         4.9  Adverse Change.  There have been no material adverse changes in
the financial condition, results of operations or business of the Borrower and
its Subsidiaries taken as a whole since December 31, 1999.

         4.10  Liens. Except with respect to certain title matters currently
being resolved between the Borrower and Phillips Petroleum Company, of which the
Borrower has made the Lender aware, the Borrower and the Borrower's Subsidiaries
have good and marketable title to

                                       7
<PAGE>   11

each of their respective Properties, free and clear of all material Liens,
except for Liens arising in the ordinary course of their businesses and except
for Liens, if any, now existing (i) on any asset of any entity at the time such
entity became a Subsidiary and not created in contemplation of such event; (ii)
on any asset securing Debt incurred or assumed for the purpose of financing all
or any part of the cost of acquiring such asset; (iii) on any asset of any
entity which existed at the time such entity was merged into or consolidated
with the Borrower or a Subsidiary and not created in contemplation of such
event; (iv) on any asset prior to the acquisition thereof by the Borrower or a
Subsidiary and not created in contemplation of such acquisition; (v) which arose
out of the refinancing, extension, renewal or refunding of any Debt secured by
any Lien permitted by any of the foregoing clauses of this section; or (vi)
which arose pursuant to any order of attachment, distraint or similar legal
process in connection with court proceedings so long as the execution or other
enforcement thereof is effectively stayed and the claims secured thereby are
being contested in good faith by appropriate proceedings. The obligations of the
Borrower under this Agreement rank at least pari passu to all other debt of the
Borrower.

         4.11  Compliance with Laws. The Borrower and each Subsidiary is in
compliance in all material respects with all applicable laws, ordinances, rules,
regulations and requirements of governmental authorities (including, without
limitation, ERISA and Environmental Laws) except where (i) non-compliance would
not have a Material Adverse Effect, or (ii) the necessity of compliance
therewith is contested in good faith by appropriate proceedings.

         4.12  Taxes. All federal, state and other income tax returns of the
Borrower and each of the Borrower's Subsidiaries required by law to be filed
have been duly filed, and all federal, state and other taxes, assessments and
other governmental charges or levies upon the Borrower and each of the
Borrower's Subsidiaries and any of their respective Properties, income, profits
and assets, which are due and payable, have been paid, except such as are being
contested in good faith or which, if taken in the aggregate, reasonably would
not be expected to have a Material Adverse Effect.

         4.13  Labor Matters. There are no strikes or other labor disputes,
grievances, charges or complaints with respect to any employee or group of
employees pending or, to the best knowledge of the Borrower, threatened against
the Borrower or any of the Borrower's Subsidiaries which reasonably could be
expected to have a Material Adverse Effect.

         4.14  Completeness. None of the statements of the Borrower contained in
this Agreement or in any certificate or written statement furnished by the
Borrower to the Lender pursuant hereto when made (as limited or qualified in
such documents) contained any untrue statement of a material fact or omitted to
state a material fact necessary to make the statements contained therein not
misleading. There is no fact known to the Borrower which the Borrower has not
disclosed to the Lender which reasonably could be expected to have a Material
Adverse Effect.

                                       8
<PAGE>   12

                          SECTION 5. EVENTS OF DEFAULT.
                                     -----------------

         If any one or more of the following events ("Events of Default") shall
have occurred and be continuing:

         (a) the Borrower shall fail to pay any interest on the Loans or any
commitment fee, in each case, within 30 days of the date when due or the
Borrower shall fail to pay any principal of the Loans when due; or

         (b) any representation and warranty made by the Borrower herein or in
any document or instrument delivered pursuant hereto shall prove to be incorrect
or misleading in any material respect on the date when made or deemed to be
made, and not corrected by Borrower within 10 days after Borrower becomes aware,
or reasonably should have become aware, of such incorrect or misleading
representation or warranty; or

         (c) the Borrower shall fail to pay or otherwise default on any term,
covenant or agreement contained herein (other than those specified in clauses
(a) or (b) above) for 30 days after written notice thereof has been given to
such Borrower by the Lender; or

         (d) the Borrower or any of its Subsidiaries shall (i) fail to pay any
indebtedness (other than under this Agreement) with an aggregate principal
amount in excess of $100,000,000 when due or to pay interest thereon and, with
respect to interest, such failure shall continue for more than any applicable
grace period, or (ii) fail to observe or perform any other term, covenant or
agreement contained in any agreement, instrument, agreements, or instruments
(other than this Agreement) by which it is bound evidencing, securing or
relating to indebtedness in an aggregate principal amount in excess of
$100,000,000, if the effect thereof is to permit (or, with the giving of notice
or lapse of time or both, would permit) the holder or holders thereof or of any
obligations issued thereunder or a trustee or trustees acting on behalf of such
holder or holders to cause acceleration of the maturity thereof or of any such
obligations; or

         (e) the Borrower or any of its Subsidiaries shall commence a voluntary
case or other proceeding seeking liquidation, reorganization or other relief
with respect to itself or its debts under any bankruptcy, insolvency or other
similar law now or hereafter in effect or seeking the appointment of a trustee,
receiver, liquidator, custodian or other similar official of it or any
substantial part of its property, or consent to any such relief or to the
appointment of or taking possession by any such official in an involuntary case
or other proceeding commenced against it, or shall make a general assignment for
the benefit of creditors, or shall fail generally to pay its debts as they
become due, or shall take any corporate action to authorize any of the
foregoing; or

         (f) an involuntary case or other proceeding shall be commenced against
the Borrower or any of its Subsidiaries seeking liquidation, reorganization or
other relief with respect to it or its debts under any bankruptcy, insolvency or
other similar law now or hereafter in effect or seeking the appointment of a
trustee, receiver, liquidator, custodian or other similar official of it or any
substantial part of its property, and such involuntary case or other proceeding
shall remain

                                       9
<PAGE>   13

undismissed and unstayed for a period of 90 days; or an order for relief shall
be entered against the Borrower or any of its Subsidiaries under the federal
bankruptcy laws as now or hereafter in effect;

         (g) one or more judgments involving a liability of $50 million or more
against the Borrower or any of its Subsidiaries, or attachments against the
Property of either the operation or result of which reasonably could be expected
to have a Material Adverse Effect, remain unpaid, unstayed on appeal, not being
appealed in good faith, undischarged, unbonded or undismissed for a period of 60
days; or

         (h) The Borrower or any of its material Subsidiaries shall voluntarily
suspend for more than 30 days the transaction of all or substantially all of its
business (a shutdown due to strikes, labor disputes, government action, or
action arising from acts of God are not to be deemed voluntary);

then, and in every such event, (1) in the case of any of the Events of Default
specified in paragraphs (e) or (f) above, the Commitment shall thereupon
automatically be terminated and the principal of and accrued interest on the
Loans shall automatically become due and payable without presentment, demand,
protest or other notice or formality of any kind, all of which are hereby
expressly waived and (2) in the case of any other Event of Default specified
above, the Lender may, by notice in writing to the Borrower, terminate the
Commitment and declare the Loans and all other sums payable under this Agreement
to be, and the same shall thereupon forthwith become, due and payable.

                            SECTION 6. MISCELLANEOUS.
                                       -------------

         6.1  Notices. Unless otherwise specified herein, all notices, requests,
demands or other communications to or from the parties hereto shall be made by
personal delivery, mail, electronic mail or telecopy and shall be effective upon
receipt by such party. Any such notice, request, demand or communication shall
be delivered or addressed as follows:

                   (i)     if to the Lender, to it at:

                           Duke Capital Corporation
                           422 South Church Street
                           Charlotte, North Carolina  28202-1904
                           Attention: S. L. Love
                           Telephone: (704) 382-7488
                           Telecopy:  (704) 382-9497

                  (ii)     if to the Borrower, to it at:

                           Duke Energy Field Services, LLC
                           Duke Energy Field Services Corporation

                                       10
<PAGE>   14

                           370 17th Street, Suite 900
                           Denver, Colorado  80202
                           Attention:  David Frederick
                           Telephone:  (303) 605-1614
                           Telecopy:    (303) 893-2613

or at such other address or telex number or telecopy number as any party hereto
may designate by written notice to the other party hereto.

         6.2  Successors and Assigns. This Agreement shall be binding upon and
shall inure to the benefit of the Borrower and the Lender and their respective
successors and assigns, provided that the Borrower may not assign its rights and
obligations hereunder to any assignee that is not a Subsidiary of the Lender
without the prior written consent of the Lender. The Lender shall notify the
Borrower in writing promptly upon any assignment by the Lender of its rights and
obligations hereunder, including any such assignment to Duke Energy Corporation
or any other Subsidiary thereof.

         6.3  Counterparts. This Agreement may be signed in any number of
counterparts with the same effect as if the signatures thereto and hereto were
upon the same instrument.

         6.4  Headings; Table of Contents. The section and subsection headings
used herein and the Table of Contents have been inserted for convenience of
reference only and do not constitute matters to be considered in interpreting
this Agreement.

         6.5  Governing Law.  This Agreement shall be construed in accordance
with and governed by the laws of the State of North Carolina, without reference
to the conflict of law provisions of such laws.

                                       11

<PAGE>   15

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

                                    DUKE ENERGY FIELD SERVICES, LLC

                                    By: /s/ DAVID D. FREDERICK
                                       -----------------------------------------
                                        David D. Frederick
                                        Senior Vice President and
                                          Chief Financial Officer

                                    DUKE CAPITAL CORPORATION

                                    By: /s/ DAVID L. HAUSER
                                       -----------------------------------------
                                        David L. Hauser
                                        Vice President and Treasurer

ACCEPTED AND ACKNOWLEDGED:

DUKE ENERGY FIELD SERVICES CORPORATION

By: /s/ DAVID D. FREDERICK
   ---------------------------------------
    David D. Frederick
    Senior Vice President and
      Chief Financial Officer

                                       12

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