Document:

<PAGE>

                                                                   EXHIBIT 10.26

                           THREE YEAR CREDIT AGREEMENT

                         Dated as of September 16, 2002

              CONSOL ENERGY INC., a Delaware corporation (the "Borrower"), the
banks, financial institutions and other institutional lenders (the "Initial
Lenders") and issuers of letters of credit (the "Initial Issuing Banks") listed
on the signature pages hereof, DRESDNER BANK AG, NEW YORK AND GRAND CAYMAN
BRANCHES and PNC BANK, N.A., as syndication agents, SALOMON SMITH BARNEY INC.,
as sole lead arranger and bookrunner, and CITIBANK, N.A. ("Citibank"), as
administrative agent (the "Agent") for the Lenders (as hereinafter defined),
agree as follows:

                                    ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

              SECTION 1.01. Certain Defined Terms. As used in this Agreement,
the following terms shall have the following meanings (such meanings to be
equally applicable to both the singular and plural forms of the terms defined):

              "Advance" means an advance by a Lender to the Borrower as part of
         a Borrowing and refers to a Base Rate Advance or a Eurodollar Rate
         Advance (each of which shall be a "Type" of Advance).

              "Affiliate" of any Person means any other Person which, directly
         or indirectly, controls or is controlled by or under common control
         with such Person (excluding any trustee under, or any committee with
         responsibility for administering, any Pension Plan). A Person shall be
         deemed to be "controlled by" any other Person if such other Person
         possesses, directly or indirectly, power (a) to vote 10% or more of the
         securities (on a fully diluted basis) having ordinary voting power for
         the election of directors or managing general partners of such Person;
         or (b) to direct or cause the direction of the management and policies
         of such Person whether by contract or otherwise.

              "Agent's Account" means the account of the Agent maintained by the
         Agent at Citibank at its office at Two Penns Way, New Castle, Delaware
         19720, Account No. 36852248, Attention: Bank Loan Syndications.

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

              "Applicable Margin" means, as of any date, a percentage per annum
         determined by reference to the Borrower's Public Debt Rating in effect
         on such date as set forth below:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
    Public Debt Rating            Applicable Margin for            Applicable Margin for
                                Eurodollar Rate Advances             Base Rate Advances
-------------------------------------------------------------------------------------------
<S>                            <C>                                <C>
Level 1
-------
A- or A3 or above                        0.775%                           0.000%
-------------------------------------------------------------------------------------------
Level 2
-------
BBB+ or Baa1                             1.100%                           0.250%
-------------------------------------------------------------------------------------------
Level 3
-------
BBB or Baa2                              1.175%                           0.375%
-------------------------------------------------------------------------------------------
Level 4
-------
BBB- or Baa3                             1.350%                           0.500%
-------------------------------------------------------------------------------------------
Level 5
-------
Lower than Level 4                       1.550%                           1.000%
-------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

              "Applicable Percentage" means, as of any date a percentage per
annum determined by reference to the Borrower's Public Debt Rating in effect on
such date as set forth below:

                         ------------------------------------------------------
                             Public Debt Rating                 Applicable
                                                                Percentage
                         ------------------------------------------------------
                         Level 1
                         -------
                         A- or A3 or above                        0.225%
                         ------------------------------------------------------
                         Level 2
                         -------
                         BBB+ or Baa1                             0.275%
                         ------------------------------------------------------
                         Level 3
                         -------
                         BBB or Baa2                              0.325%
                         ------------------------------------------------------
                         Level 4
                         -------
                         BBB- or Baa3                             0.400%
                         ------------------------------------------------------
                         Level 5
                         -------
                         Lower than Level 4                       0.450%
                         ------------------------------------------------------

              "Approval" means each and every approval, consent, filing and
registration by or with any Federal, state or other regulatory authority or any
third party necessary to authorize or permit the execution, delivery or
performance of this Agreement, the Notes or any other Loan Document or for the
validity or enforceability hereof or thereof.

              "Assignment and Acceptance" means an assignment and acceptance
entered into by a Lender and an Eligible Assignee, and accepted by the Agent, in
substantially the form of Exhibit C hereto.

              "Assuming Lender" has the meaning specified in Section 2.18(d).

              "Assumption Agreement" has the meaning specified in Section
2.18(d)(ii).

              "Authorized Officer" means, relative to any Loan Party, those of
its officers whose signatures and incumbency shall have been certified to the
Agent.

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

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

                         (a) the rate of interest announced publicly by Citibank
              in New York, New York, from time to time, as Citibank's base rate;
              and

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

              "Base Rate Advance" means an Advance that bears interest as
provided in Section 2.07(a)(i).

              "Borrowing" means a borrowing consisting of simultaneous Advances
of the same Type made by each of the Lenders pursuant to Section 2.01.

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

                                       2

<PAGE>

              "Capital Lease" means any lease required to be accounted for as a
capital lease under GAAP.

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

              "CERCLIS" means the Comprehensive Environmental Response
Compensation Liability Information System List.

              "Change in Control" means with respect to the Borrower, the
failure of RWE AG to own, directly or indirectly, a cumulative total of at least
fifty-one percent (51%) of the outstanding shares of capital stock of the
Borrower, on a fully diluted basis, in each case, free and clear of all Liens
and other encumbrances.

              "Commercial Paper Indebtedness" means commercial paper issued by
the Borrower with an original maturity of not more than 270 days from the date
of issuance, incurrence or other creation thereof and, at the time any
determination thereof is to be made, means the then aggregate outstanding face
amount (if issued, incurred or created on a discount basis) or principal amount
together with interest thereon to stated maturity (if issued, incurred or
created on an interest-bearing basis) of such commercial paper.

              "Commitment" means a Revolving Credit Commitment or a Letter of
Credit Commitment.

              "Commitment Date" has the meaning specified in Section 2.18(b).

              "Commitment Increase" has the meaning specified in Section
2.18(a).

              "Confidential Information" means information that the Borrower
furnishes to the Agent or any Lender in a writing designated as confidential,
but does not include any such information that is or becomes generally available
to the public or that is or becomes available to the Agent or such Lender from a
source other than the Borrower.

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

              "Consolidated Subsidiary" of any Person means, at any time, every
Subsidiary which would be included as a consolidated subsidiary of such Person
in its consolidated financial statements as of such time; unless otherwise
specified, "Consolidated Subsidiary" means a Consolidated Subsidiary of the
Borrower.

              "Contractual Obligation" means, relative to any Person, any
provision of any security issued by such Person or of any Instrument or
undertaking to which such Person is a party or by which it or any of its
property is bound.

              "Controlled Group" means all members of a controlled group of
corporations and all members of a controlled group of trades or businesses
(whether or not incorporated) under common control which, together with the
Borrower or any Subsidiary, as applicable, are treated as a single employer
under Section 414 of the Code or Section 4001 of ERISA.

              "Convert", "Conversion" and "Converted" each refers to a
conversion of Advances of one Type into Advances of the other Type pursuant to
Section 2.08 or 2.09.

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

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

                                        3

<PAGE>

              "Effective Date" has the meaning specified in Section 3.01.

              "Eligible Assignee" means (i) a Lender; (ii) an Affiliate of a
Lender and (iii) any other Person approved by the Agent and, unless an Event of
Default has occurred and is continuing at the time any assignment is effected in
accordance with Section 8.07, the Borrower, such approval not to be unreasonably
withheld or delayed; provided, however, that neither the Borrower nor an
Affiliate of the Borrower shall qualify as an Eligible Assignee.

              "Environmental Laws" means all applicable federal, state or local
statutes, laws, ordinances, codes, rules, regulations and guidelines (including
consent decrees and administrative orders) relating to public health and safety
and protection of the environment, including CERCLA and SMCRA.

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

              "Eurocurrency Liabilities" has the meaning assigned to that term
in Regulation D of the Board of Governors of the Federal Reserve System, as in
effect from time to time.

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

              "Eurodollar Rate" means, for any Interest Period for each
Eurodollar Rate Advance comprising part of the same Borrowing, an interest rate
per annum equal to the rate per annum obtained by dividing (a) the rate per
annum (rounded upward to the nearest whole multiple of 1/16 of 1% per annum)
appearing on Telerate Markets Page 3750 (or any successor page) as the London
interbank offered rate for deposits in U.S. 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 or, if for any reason such rate is
not available, the average (rounded upward to the nearest whole multiple of 1/16
of 1% per annum, if such average is not such a multiple) of the rate per annum
at which deposits in U.S. dollars are offered by the principal office of each of
the Reference Banks in London, England to prime banks in the London interbank
market at 11:00 A.M. (London time) two Business Days before the first day of
such Interest Period in an amount substantially equal to such Reference Bank's
Eurodollar Rate Advance comprising part of such Borrowing to be outstanding
during such Interest Period and for a period equal to such Interest Period by
(b) a percentage equal to 100% minus the Eurodollar Rate Reserve Percentage for
such Interest Period. If the Telerate Markets Page 3750 (or any successor page)
is unavailable, the Eurodollar Rate for any Interest Period for each Eurodollar
Rate Advance comprising part of the same Borrowing shall be determined by the
Agent on the basis of applicable rates furnished to and received by the Agent
from the Reference Banks two Business Days before the first day of such Interest
Period, subject, however, to the provisions of Section 2.08.

              "Eurodollar Rate Advance" means an Advance that bears interest as
provided in Section 2.07(a)(ii).

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

                                        4

<PAGE>

              "Events of Default" has the meaning specified in Section 6.01.

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

              "Fiscal Quarter" means any quarter of a Fiscal Year.

              "Fiscal Year" means any period of twelve consecutive calendar
months ending on December 31.

              "F.R.S. Board" means the Board of Governors of the Federal Reserve
System (or any successor).

              "GAAP" means generally accepted United States accounting
principles.

              "Guarantor" means, at any time, each Subsidiary that is a party to
the Subsidiary Guaranty at such time.

              "Guaranty" means any agreement, undertaking or arrangement by
which any Person guarantees, endorses or otherwise becomes or is contingently
liable upon (by direct or indirect agreement, contingent or otherwise, to
provide funds for payment, to supply funds to, or otherwise to invest in, a
debtor, or otherwise to assure a creditor against loss) the debt, obligation or
other liability of any other Person (other than by endorsements of instruments
in the course of collection), or guarantees the payment of dividends or other
distributions upon the shares of any other Person. The amount of the obligor's
obligation under any guaranty shall (subject to any limitation set forth
therein) be deemed to be the outstanding principal amount (or maximum
outstanding principal amount, if larger) of the debt, obligation or other
liability thereby guaranteed.

              "Hazardous Material" means (a) any "hazardous substance", as
defined by CERCLA; (b) any "hazardous waste", as defined by RCRA; (c) any
petroleum product; or (d) any pollutant or contaminant or hazardous, dangerous
or toxic chemical, material or substance within the meaning of any other
Environmental Law.

              "Impermissible Qualification" means, relative to the opinion by
independent public accountants as to any financial statement of the Borrower,
any qualification or exception to such opinion: (a) which is of a "going
concern" or similar nature; or (b) which relates to the limited scope of
examination of matters relevant to such financial information.

              "Increase Date" has the meaning specified in Section 2.18(a).

              "Increasing Lender" has the meaning specified in Section 2.18(b).

              "Indebtedness" of any Person means, without duplication:

              (a) Indebtedness for Borrowed Money;

              (b) all items other than as described in clause (a) which, in
         accordance with GAAP, would be included as liabilities on the liability
         side of a balance sheet of such Person as of the date at which
         Indebtedness is to be determined; and

              (c) whether or not so included as liabilities in accordance with
         GAAP,

                                        5

<PAGE>

                  (i)  all indebtedness (excluding prepaid interest thereon)
              secured by a Lien on property owned or being purchased by such
              Person (including indebtedness arising under conditional sales or
              other title retention agreements) whether or not such indebtedness
              shall have been assumed by such Person, and

                  (ii) all Guaranties issued by such Person.

              "Indebtedness for Borrowed Money" of any Person means, without
duplication, all obligations of such Person, and all Guaranties issued by such
Person, for borrowed money (including all notes payable and drafts accepted
representing extensions of credit and all obligations evidenced by bonds,
debentures, notes, unpaid reimbursement obligations under drawn letters of
credit or other similar instruments) on which interest charges are customarily
paid.

              "Information Memorandum" means the information memorandum dated
August 2, 2002 used by the Agent in connection with the syndication of the
Commitments.

              "Instrument" means any document or writing (whether by formal
agreement, letter or otherwise) under which any obligation is evidenced, assumed
or undertaken, or any right to any Lien is granted or perfected.

              "Interest Period" means, for each Eurodollar Rate Advance
comprising part of the same Borrowing, the period commencing on the date of such
Eurodollar Rate Advance or the date of the Conversion of any Base Rate Advance
into such Eurodollar Rate Advance and ending on the last day of the period
selected by the Borrower pursuant to the provisions below and, thereafter each
subsequent period commencing on the last day of the immediately preceding
Interest Period and ending on the last day of the period selected by the
Borrower pursuant to the provisions below. The duration of each such Interest
Period shall be one, two, three or six months, as the Borrower may, upon notice
received by the Agent not later than 11:00 A.M. (New York City time) on the
third Business Day prior to the first day of such Interest Period, select;
provided, however, that:

                  (a)  the Borrower may not select any Interest Period that ends
              after the Termination Date;

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

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

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

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

              "Issuing Bank" means each Initial Issuing Bank or any Eligible
Assignee to which a portion of the Letter of Credit Commitment hereunder have
been assigned pursuant to Section 8.07 so long as such Eligible Assignee
expressly agrees to perform in accordance with their terms all of the
obligations that by the terms of this Agreement are required to be performed by
it as an Issuing Bank and notifies the Agent of

                                       6

<PAGE>

its Applicable Lending Office (which information shall be recorded by the Agent
in the Register), for so long as such Initial Issuing Bank or Eligible Assignee,
as the case may be, shall have a Letter of Credit Commitment.

              "L/C Cash Collateral Account" means an interest bearing cash
collateral account to be established and maintained by the Agent, over which the
Agent shall have sole dominion and control, upon terms as may be satisfactory to
the Agent.

              "L/C Related Documents" has the meaning specified in Section
2.07(b)(i).

              "Lenders" means the Initial Lenders, the Issuing Banks, each
Assuming Lender that shall become a party hereto pursuant to Section 2.18 and
each Person that shall become a party hereto pursuant to Section 8.07.

              "Letter of Credit Agreement" has the meaning specified in Section
2.03(a).

              "Letter of Credit Commitment" means, with respect to each Initial
Issuing Bank, the amount set forth opposite such Initial Issuing Bank's name on
Schedule I hereto under the caption "Letter of Credit Commitment" or, if such
Initial Issuing Bank has entered into one or more Assignment and Acceptances,
the amount set forth for such Issuing Bank in the Register maintained by the
Agent pursuant to Section 8.07(d) as such Issuing Bank's "Letter of Credit
Commitment", as such amount may be reduced at or prior to such time pursuant to
Section 2.06.

              "Letter of Credit Facility" means, at any time, an amount, not to
exceed the aggregate amount of the Revolving Credit Commitments, equal to the
Issuing Banks' Letter of Credit Commitments at such time, as such amount may be
reduced at or prior to such time pursuant to Section 2.06.

              "Letters of Credit" has the meaning specified in Section 2.01(b).

              "Liabilities" means all obligations (monetary or otherwise) of the
Borrower under this Agreement, the Notes and each other Loan Document.

              "Lien" means any mortgage, pledge, hypothecation, charge,
assignment, deposit arrangement, encumbrance, lien (statutory or other), or
preference, priority or other security agreement or preferential arrangement of
any kind or nature whatsoever (including any conditional sale or other title
retention agreement, any financing lease involving substantially the same
economic effect as any of the foregoing, accompanied by the filing of any
financing statement under the Uniform Commercial Code or comparable law of any
jurisdiction).

              "Loan Document" means this Agreement and each Instrument and any
other document from time to time executed and delivered hereunder, whether or
not mentioned herein, including the Notes, each Letter of Credit Agreement, the
Subsidiary Guaranty and the Subordination Agreement.

              "Loan Party" means the Borrower, each Guarantor and any other
party (other than the Agent and any Lender) that executes and delivers a Loan
Document.

              "Material Adverse Change" means any material adverse change in the
business, financial condition,, operations or properties of the Borrower and its
Subsidiaries taken as a whole.

              "Materially Adverse Effect" means a materially adverse effect on
(a) the business, financial condition, operations or properties of the Borrower
and its Subsidiaries taken as a whole, (b) the rights and remedies of the Agent
or any Lender under this Agreement or any other Loan Document or (c) the ability
of the Borrower or any other Loan Party to perform its payment or other material
obligations under this Agreement or any other Loan Document.

                                       7

<PAGE>

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

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

              "Note" means a promissory note of the Borrower payable to the
order of any Lender, delivered pursuant to a request made under Section 2.16 in
substantially the form of Exhibit A hereto, evidencing the aggregate
indebtedness of the Borrower to such Lender resulting from the Advances made by
such Lender.

              "Notice of Borrowing" has the meaning specified in Section
2.02(a).

              "Organic Document" means, relative to any corporation, its
certificate of incorporation, its by-laws and all shareholder agreements, voting
trusts and similar arrangements applicable to any of its authorized shares of
capital stock.

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

              "Pension Plan" means a "pension plan", as such term is defined in
section 3(2) of ERISA, which is subject to Title IV of ERISA (other than a
multi-employer plan as defined in section 4001(a)(3) of ERISA), and to which the
Borrower, any Subsidiary or any member of the Controlled Group of any of them,
may have any liability, including any liability under section 4063 or section
4069 of ERISA.

              "Permitted Investment" means, at any time, each of the investments
listed on Schedule III hereto.

              "Person" means an individual, partnership, corporation (including
a business trust), joint stock company, trust, unincorporated association, joint
venture, limited liability company or other entity, or a government or any
political subdivision or agency thereof.

              "Pro Rata Share" of any amount means, with respect to any Lender
at any time, the product of such amount times a fraction the numerator of which
is the amount of such Lender's Revolving Credit Commitment at such time (or, if
the Revolving Credit Commitments shall have been terminated pursuant to Section
2.06 or 6.01, such Lender's Revolving Credit Commitment as in effect immediately
prior to such termination) and the denominator of which is the aggregate amount
of all Revolving Credit Commitments at such time (or, if the Revolving Credit
Commitments shall have been terminated pursuant to Section 2.06 or 6.01, the
aggregate amount of all Revolving Credit Commitments as in effect immediately
prior to such termination).

              "Public Debt Rating" means, as of any date, the rating that has
been most recently announced by either S&P or Moody's, as the case may be, for
any class of non-credit enhanced long-term senior unsecured debt issued by the
Borrower or, if any such rating agency shall have issued more than one such
rating, the lowest such rating issued by such rating agency. For purposes of the
foregoing, (a) if only one of S&P or Moody's shall have in effect a Public Debt
Rating, the Applicable Margin and the Applicable Percentage shall be determined
by reference to the available rating; (b) if none of S&P or Moody's shall have
in effect a Public Debt Rating, the Applicable Margin and the Applicable
Percentage will be set in accordance with Level 5 under the definition of
"Applicable Margin" or "Applicable Percentage", as the case may be; (c) if the
ratings established by S&P and Moody's shall fall within different levels, the
Applicable Margin and the Applicable Percentage shall be based upon the higher
rating unless (x) the lower rating is more than one level below the higher of
such ratings, in which case the Applicable Margin and the Applicable Percentage
shall be based on the rating that is one level above the lower rating or (y) the
rating agency that has in effect the lower rating has announced a negative
outlook, in which case the Applicable Margin and the Applicable Percentage shall
be based upon the lower rating; (d) if any rating established by S&P or Moody's
shall be changed, such change shall be effective as of the date on which such
change is first announced publicly by the rating agency making such change; and
(e) if S&P or Moody's shall change the basis on which ratings are established,
each reference to the Public Debt Rating announced by S&P or

                                       8

<PAGE>

         Moody's, as the case may be, shall refer to the then equivalent rating
         by S&P or Moody's, as the case may be.

                  "RCRA" means the Resource Conservation and Recovery Act, 42
         U.S.C. Section 6901, et seq., as in effect from time to time.

                  "Reference Banks" means Citibank, Dresdner Bank AG, New York
         and Grand Cayman Branches and PNC Bank, N.A.

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

                  "Release" means a "release", as such term is defined in
         CERCLA.

                  "Reportable Event" means a "reportable event" described in
         Section 4043(c) of ERISA and the regulations thereunder for which the
         30-day notice requirement has not been waived.

                  "Required Lenders" means at any time Lenders owed at least a
         majority in interest of the then aggregate unpaid principal amount of
         the Advances owing to Lenders, or, if no such principal amount is then
         outstanding, Lenders having at least a majority in interest of the
         Commitments.

                  "Revolving Credit Commitment" means, with respect to any
         Lender at any time, the amount set forth opposite such Lender's name on
         the Schedule I hereto under the caption "Revolving Credit Commitment",
         (b) if such Lender has become a Lender hereunder pursuant to an
         Assumption Agreement, the amount of such Lender's "Revolving Credit
         Commitment" set forth in such Assumption Agreement or (c) if such
         Lender has entered into one or more Assignment and Acceptances, set
         forth for such Lender in the Register maintained by the Agent pursuant
         to Section 8.07(d) as such Lender's "Revolving Credit Commitment", as
         such amount may be reduced at or prior to such time pursuant to Section
         2.06 or increased pursuant to Section 2.18.

                  "RWE AG" means, RWE AG, a corporation existing under the laws
         of The Federal Republic of Germany.

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

                  "SEC" means the Securities and Exchange Commission (or any
         government body or agency succeeding to the functions of such
         Commission).

                  "Significant Subsidiary" means each Subsidiary listed on
         Schedule II hereto (as such Schedule may be amended from time to time
         in accordance with Section 5.01(a)(i)(E)) and any other direct or
         indirect Subsidiary of the Borrower whose assets exceed 5% of the
         consolidated assets of the Borrower and the Consolidated Subsidiaries
         or whose revenues exceed 5% of the consolidated revenues of the
         Borrower and the Consolidated Subsidiaries (in each case determined by
         reference to the most recently available audited Consolidated financial
         statements of the Borrower) or any other direct or indirect Subsidiary
         of the Borrower so designated by the Borrower after the Effective Date.

                  "SMCRA" means the Federal Surface Mining Control and
         Reclamation Act of 1977, as in effect from time to time.

                  "Subordination Agreement" means that certain subordination
         agreement, substantially in the form of Exhibit E attached hereto (as
         such may be amended, supplemented, restated or otherwise modified and
         in effect from time to time).

                  "Subsidiary" of any Person means any other corporation,
         partnership, joint venture, limited liability company, trust or estate
         of which (or in which) more than 50% of (a) the outstanding shares of
         capital stock of which having ordinary voting power for the election of
         directors such corporation, (b) the

                                       9

<PAGE>

         interest in the capital or profits of such limited liability company,
         partnership or joint venture or (c) the beneficial interest in such
         trust or estate is at the time directly or indirectly owned or
         controlled by such Person, by such Person and one or more of its other
         Subsidiaries or by one or more of such Person's other Subsidiaries and,
         except as otherwise indicated herein, references to Subsidiaries shall
         refer to Subsidiaries of the Borrower.

                  "Subsidiary Guaranty" means that certain guaranty,
         substantially in the form of Exhibit F attached hereto (as such may be
         amended, supplemented, restated or otherwise modified and in effect
         from time to time).

                  "Termination Date" means the earlier of (a) September 16, 2005
         and (b) the date of termination in whole of the Commitments pursuant to
         Section 2.05 or 6.01.

                  "Unused Commitment" means, with respect to each Lender at any
         time, (a) such Lender's Revolving Credit Commitment at such time minus
         (b) the sum of (i) the aggregate principal amount of all Advances made
         by such Lender (in its capacity as a Lender) and outstanding at such
         time, plus (ii) such Lender's Pro Rata Share of (A) the aggregate
         Available Amount of all the Letters of Credit outstanding at such time
         and (B) the aggregate principal amount of all Advances made by each
         Issuing Bank pursuant to Section 2.03(c) that have not been ratably
         funded by such Lender and outstanding at such time.

                  "Welfare Plan" means a "welfare plan", as such term is defined
         in section 3(1) of ERISA (other than a multiemployer plan as defined in
         section 3(37) of ERISA), under which the Borrower or any Subsidiary may
         have any liability, including any obligation to contribute.

                  "Withdrawal Liability" has the meaning specified in Part I of
         Subtitle I of Title IV of ERISA.

                  SECTION 1.02. Computation of Time Periods. In this Agreement
in the computation of periods of time from a specified date to a later specified
date, the word "from" means "from and including" and the words "to" and "until"
each mean "to but excluding".

                  SECTION 1.03. Accounting Terms. All accounting terms not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles consistent with those applied in the preparation
of the financial statements referred to in Section 4.01(e) ("GAAP").

                                   ARTICLE II

                        AMOUNTS AND TERMS OF THE ADVANCES

                  SECTION 2.01. The Advances and Letters of Credit. (a)
Advances. Each Lender severally agrees, on the terms and conditions hereinafter
set forth, to make Advances to the Borrower from time to time on any Business
Day during the period from the Effective Date until the Termination Date in an
aggregate amount not to exceed at any time such Lender's Unused Commitment at
such time. Each Borrowing shall be in an aggregate amount of $5,000,000 or an
integral multiple of $1,000,000 in excess thereof and shall consist of Advances
of the same Type made on the same day by the Lenders ratably according to their
respective Revolving Credit Commitments. Within the limits of each Lender's
Revolving Credit Commitment, the Borrower may borrow under this Section 2.01,
prepay pursuant to Section 2.10 and reborrow under this Section 2.01.

                  (b)    Letters of Credit. Each Issuing Bank agrees, on the
terms and conditions hereinafter set forth, to issue letters of credit (each, a
"Letter of Credit") for the account of the Borrower from time to time on any
Business Day during the period from the Effective Date until 30 days before the
Termination Date in an aggregate Available Amount (i) for all Letters of Credit
issued by each Issuing Bank not to exceed at any time the lesser of (x) the
Letter of Credit Facility at such time and (y) such Issuing Bank's Letter of
Credit Commitment at such time and (ii) for each such Letter of Credit not to
exceed an amount equal to the Unused Commitments of the Lenders at such time. No
Letter of Credit shall have an expiration date (including all rights of the
Borrower or the beneficiary to require renewal) later than 10 Business Days
before the Termination Date. Within the limits referred to above,

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<PAGE>

the Borrower may request the issuance of Letters of Credit under this Section
2.01(b), repay any Advances resulting from drawings thereunder pursuant to
Section 2.03(c) and request the issuance of additional Letters of Credit under
this Section 2.01(b).

                  SECTION 2.02. Making the Advances. (a) Each Borrowing shall be
made on notice, given not later than (x) 11:00 A.M. (New York City time) on the
third Business Day prior to the date of the proposed Borrowing in the case of a
Borrowing consisting of Eurodollar Rate Advances or (y) 11:00 A.M. (New York
City time) on the date of the proposed Borrowing in the case of a Borrowing
consisting of Base Rate Advances, by the Borrower to the Agent, which shall give
to each Lender prompt notice thereof by telecopier or telex. Each such notice of
a Borrowing (a "Notice of Borrowing") shall be by telephone, confirmed promptly
in writing, or telecopier or telex in substantially the form of Exhibit B
hereto, specifying therein the requested (i) date of such Borrowing, (ii) Type
of Advances comprising such Borrowing, (iii) aggregate amount of such Borrowing,
and (iv) in the case of a Borrowing consisting of Eurodollar Rate Advances,
initial Interest Period for each such Advance. Each Lender shall, before 1:00
P.M. (New York City time) on the date of such Borrowing make available for the
account of its Applicable Lending Office to the Agent at the Agent's Account, in
same day funds, such Lender's ratable portion of such Borrowing. After the
Agent's receipt of such funds and upon fulfillment of the applicable conditions
set forth in Article III, the Agent will make such funds available to the
Borrower at the Agent's address referred to in Section 8.02.

                  (b)    Anything in subsection (a) above to the contrary
notwithstanding, (i) the Borrower may not select Eurodollar Rate Advances for
any Borrowing if the aggregate amount of such Borrowing is less than $5,000,000
or if the obligation of the Lenders to make Eurodollar Rate Advances shall then
be suspended pursuant to Section 2.08 or 2.12 and (ii) the Eurodollar Rate
Advances may not be outstanding as part of more than eight separate Borrowings.

                  (c)    Each Notice of Borrowing shall be irrevocable and
binding on the Borrower. In the case of any Borrowing that the related Notice of
Borrowing specifies is to be comprised of Eurodollar Rate Advances, the Borrower
shall indemnify each Lender against any loss, cost or expense incurred by such
Lender as a result of any failure to fulfill on or before the date specified in
such Notice of Borrowing for such Borrowing the applicable conditions set forth
in Article III, including, without limitation, any loss (including loss of
anticipated profits), cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by such Lender to fund the
Advance to be made by such Lender as part of such Borrowing when such Advance,
as a result of such failure, is not made on such date.

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

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

                  SECTION 2.03. Issuance of and Drawings and Reimbursement Under
Letters of Credit. (a) Request for Issuance. (i) Each Letter of Credit shall be
issued upon notice, given not later than 11:00 A.M. (New York City time) on the
third Business Day prior to the date of the proposed issuance of such Letter of
Credit (or such shorter period as may be agreed to by the applicable Issuing
Bank), by the Borrower to any Issuing Bank, and such Issuing Bank shall give the
Agent, prompt notice thereof by telex, telecopier or cable. Each such notice of

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<PAGE>

issuance of a Letter of Credit (a "Notice of Issuance") shall be by telex,
telecopier or cable, confirmed promptly in writing, specifying therein the
requested (A) date of such issuance (which shall be a Business Day), (B)
Available Amount of such Letter of Credit, (C) expiration date of such Letter of
Credit, (D) name and address of the beneficiary of such Letter of Credit and (E)
form of such Letter of Credit, and shall be accompanied by such application and
agreement for letter of credit as such Issuing Bank may reasonably specify to
the Borrower for use in connection with such requested Letter of Credit (a
"Letter of Credit Agreement"). If the requested form of such Letter of Credit is
acceptable to such Issuing Bank in its sole discretion, such Issuing Bank will,
upon fulfillment of the applicable conditions set forth in Article III, make
such Letter of Credit available to the Borrower at its office referred to in
Section 8.02 or as otherwise agreed with the Borrower in connection with such
issuance. In the event and to the extent that the provisions of any Letter of
Credit Agreement shall conflict with this Agreement, the provisions of this
Agreement shall govern.

                  (b)    Participations. By the issuance of a Letter of Credit
(or an amendment to a Letter of Credit increasing the amount thereof) and
without any further action on the part of the applicable Issuing Bank or the
Lenders, such Issuing Bank hereby grants to each Lender, and each Lender hereby
acquires from such Issuing Bank, a participation in such Letter of Credit equal
to such Lender's Pro Rata Share of the aggregate amount available to be drawn
under such Letter of Credit. The Borrower hereby agrees to each such
participation. In consideration and in furtherance of the foregoing, each Lender
hereby absolutely and unconditionally agrees to pay to the Agent, for the
account of such Issuing Bank, such Lender's Pro Rata Share of each drawing made
under a Letter of Credit funded by such Issuing Bank and not reimbursed by the
Borrower on the date made, or of any reimbursement payment required to be
refunded to the Borrower for any reason. Each Lender acknowledges and agrees
that its obligation to acquire participations pursuant to this paragraph in
respect of Letters of Credit is absolute and unconditional and shall not be
affected by any circumstance whatsoever, including any amendment, renewal or
extension of any Letter of Credit or the occurrence and continuance of a Default
or reduction or termination of the Revolving Credit Commitments, and that each
such payment shall be made without any offset, abatement, withholding or
reduction whatsoever.

                  (c)    Drawing and Reimbursement. The payment by an Issuing
Bank of a draft drawn under any Letter of Credit shall constitute for all
purposes of this Agreement the making by any such Issuing Bank of an Advance,
which shall be a Base Rate Advance, in the amount of such draft. Upon written
demand by such Issuing Bank, with a copy of such demand to the Agent, each
Lender shall pay to the Agent such Lender's Pro Rata Share of such outstanding
Advance, by making available for the account of its Applicable Lending Office to
the Agent for the account of such Issuing Bank, by deposit to the Agent's
Account, in same day funds, an amount equal to the portion of the outstanding
principal amount of such Advance to be funded by such Lender. Promptly after
receipt thereof, the Agent shall transfer such funds to such Issuing Bank. Each
Lender agrees to fund its Pro Rata Share of an outstanding Advance on (i) the
Business Day on which demand therefor is made by such Issuing Bank, provided
that notice of such demand is given not later than 11:00 A.M. (New York City
time) on such Business Day, or (ii) the first Business Day next succeeding such
demand if notice of such demand is given after such time. If and to the extent
that any Lender shall not have so made the amount of such Advance available to
the Agent, such Lender agrees to pay to the Agent forthwith on demand such
amount together with interest thereon, for each day from the date of demand by
any such Issuing Bank until the date such amount is paid to the Agent, at the
Federal Funds Rate for its account or the account of such Issuing Bank, as
applicable. If such Lender shall pay to the Agent such amount for the account of
any such Issuing Bank on any Business Day, such amount so paid in respect of
principal shall constitute an Advance made by such Lender on such Business Day
for purposes of this Agreement, and the outstanding principal amount of the
Advance made by such Issuing Bank shall be reduced by such amount on such
Business Day.

                  (d)    Letter of Credit Reports. Each Issuing Bank shall
furnish (A) to the Agent on the first Business Day of each week a written report
summarizing issuance and expiration dates of Letters of Credit issued during the
previous week and drawings during such week under all Letters of Credit, (B) to
each Lender on the first Business Day of each month a written report summarizing
issuance and expiration dates of Letters of Credit during the preceding month
and drawings during such month under all Letters of Credit and (C) to the Agent
and each Lender on the first Business Day of each calendar quarter a written
report setting forth the average daily aggregate Available Amount during the
preceding calendar quarter of all Letters of Credit.

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<PAGE>

                  (e)    Failure to Make Advances. The failure of any Lender to
make the Advance to be made by it on the date specified in Section 2.03(c) shall
not relieve any other Lender of its obligation hereunder to make its Advance on
such date, but no Lender shall be responsible for the failure of any other
Lender to make the Advance to be made by such other Lender on such date.

                  SECTION 2.04. Fees. (a) Facility Fee. The Borrower agrees to
pay to the Agent for the account of each Lender a facility fee on the aggregate
amount of such Lender's Revolving Credit Commitment from the date hereof in the
case of each Initial Lender and from the effective date specified in the
Assumption Agreement or in the Assignment and Acceptance pursuant to which it
became a Lender in the case of each other Lender until the Termination Date at a
rate per annum equal to the Applicable Percentage in effect from time to time,
payable in arrears quarterly on the last day of each March, June, September and
December, commencing September 30, 2002, and on the Termination Date.

                  (b)    Letter of Credit Fees (i) The Borrower shall pay to the
Agent for the account of each Lender a commission on such Lender's Pro Rata
Share of the average daily aggregate Available Amount of all Letters of Credit
outstanding from time to time at a rate per annum equal to the Applicable Margin
for Eurocurrency Rate Advances in effect from time to time, payable in arrears
quarterly on the last day of each March, June, September and December,
commencing September 30, 2002, and on the Termination Date.

                  (ii)   The Borrower shall pay to each Issuing Bank, for its
own account, such commissions, issuance fees, fronting fees, transfer fees and
other fees and charges in connection with the issuance or administration of each
Letter of Credit as the Borrower and such Issuing Bank shall agree.

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

                  SECTION 2.05. Optional Termination or Reduction of the
Commitments. The Borrower shall have the right, upon at least three Business
Days' notice to the Agent, to terminate in whole or permanently reduce ratably
in part the Unused Commitments of the Lenders, provided that each partial
reduction shall be in the aggregate amount of $10,000,000 or an integral
multiple of $1,000,000 in excess thereof.

                  SECTION 2.06. Repayment of Advances. (a) The Borrower shall
repay to the Agent (whether from the proceeds of Advances made pursuant to
Section 2.01 of this Agreement or otherwise) for the ratable account of the
Lenders on the second Business Day after each drawing under a Letter of Credit
the aggregate principal amount of the Advances resulting from such drawing. The
Borrower shall repay to the Agent for the ratable account of the Lenders on the
Termination Date the aggregate principal amount of the Advances then
outstanding.

                  (b)    The obligations of the Borrower under this Agreement,
any Letter of Credit Agreement and any other agreement or instrument relating to
any Letter of Credit shall be unconditional and irrevocable, and shall be paid
strictly in accordance with the terms of this Agreement, such Letter of Credit
Agreement and such other agreement or instrument under all circumstances,
including, without limitation, the following circumstances (it being understood
that any such payment by the Borrower is without prejudice to, and does not
constitute a waiver of, any rights the Borrower might have or might acquire as a
result of the payment by any Lender of any draft or the reimbursement by the
Borrower thereof):

                  (i)    any lack of validity or enforceability of this
         Agreement, any Note, any Letter of Credit Agreement, any Letter of
         Credit or any other agreement or instrument relating thereto (all of
         the foregoing being, collectively, the "L/C Related Documents");

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

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<PAGE>

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

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

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

                  (vi)   any exchange, release or non-perfection of any
         collateral, or any release or amendment or waiver of or consent to
         departure from any guarantee, for all or any of the obligations of the
         Borrower in respect of the L/C Related Documents; or

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

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

                  (i)    Base Rate Advances. During such periods as such Advance
         is a Base Rate Advance, a rate per annum equal at all times to the sum
         of (x) the Base Rate in effect from time to time plus (y) the
         Applicable Margin in effect from time to time, payable in arrears
         quarterly on the last day of each March, June, September and December
         during such periods and on the date such Base Rate Advance shall be
         Converted or paid in full.

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

                  (b)    Default Interest. Upon the occurrence and during the
continuance of an Event of Default under Section 6.01(a), the Agent may, and
upon the request of the Required Lenders shall, require the Borrower to pay
interest ("Default Interest") on (i) the unpaid principal amount of each Advance
owing to each Lender, payable in arrears on the dates referred to in clause
(a)(i) or (a)(ii) above, at a rate per annum equal at all times to 2% per annum
above the rate per annum required to be paid on such Advance pursuant to clause
(a)(i) or (a)(ii) above and (ii) to the fullest extent permitted by law, the
amount of any interest, fee or other amount payable hereunder that is not paid
when due, from the date such amount shall be due until such amount shall be paid
in full, payable in arrears on the date such amount shall be paid in full and on
demand, at a rate per annum equal at all times to 2% per annum above the rate
per annum required to be paid on Base Rate Advances pursuant to clause (a)(i)
above, provided, however, that following acceleration of the Advances pursuant
to Section 6.01, Default Interest shall accrue and be payable hereunder whether
or not previously required by the Agent.

                  SECTION 2.08. Interest Rate Determination. (a) Each Reference
Bank agrees to furnish to the Agent timely information for the purpose of
determining each Eurodollar Rate. If any one or more of the Reference Banks
shall not furnish such timely information to the Agent for the purpose of
determining any such interest rate, the Agent shall determine such interest rate
on the basis of timely information furnished by the remaining Reference

                                       14

<PAGE>

Banks. The Agent shall give prompt notice to the Borrower and the Lenders of the
applicable interest rate determined by the Agent for purposes of Section
2.07(a)(i) or (ii), and the rate, if any, furnished by each Reference Bank for
the purpose of determining the interest rate under Section 2.07(a)(ii).

                  (b)    If, with respect to any Eurodollar Rate Advances, the
Required Lenders notify the Agent that the Eurodollar Rate for any Interest
Period for such Advances will not adequately reflect the cost to such Required
Lenders of making, funding or maintaining their respective Eurodollar Rate
Advances for such Interest Period, the Agent shall forthwith so notify the
Borrower and the Lenders, whereupon (i) each Eurodollar Rate Advance will
automatically, on the last day of the then existing Interest Period therefor,
Convert into a Base Rate Advance, and (ii) the obligation of the Lenders to
make, or to Convert Advances into, Eurodollar Rate Advances shall be suspended
until the Agent shall notify the Borrower and the Lenders that the circumstances
causing such suspension no longer exist.

                  (c)    If the Borrower shall fail to select the duration of
any Interest Period for any Eurodollar Rate Advances in accordance with the
provisions contained in the definition of "Interest Period" in Section 1.01, the
Agent will forthwith so notify the Borrower and the Lenders and such Advances
will automatically, on the last day of the then existing Interest Period
therefor, Convert into Base Rate Advances.

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

                  (e)    Upon the occurrence and during the continuance of any
Event of Default, (i) each Eurodollar Rate Advance will automatically, on the
last day of the then existing Interest Period therefor, Convert into a Base Rate
Advance and (ii) the obligation of the Lenders to make, or to Convert Advances
into, Eurodollar Rate Advances shall be suspended.

                  (f)    If Telerate Markets Page 3750 is unavailable and fewer
than two Reference Banks furnish timely information to the Agent for determining
the Eurodollar Rate for any Eurodollar Rate Advances,

                  (i)    the Agent shall forthwith notify the Borrower and the
         Lenders that the interest  rate cannot be determined for such
         Eurodollar Rate Advances,

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

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

                  SECTION 2.09. Optional Conversion of Advances. The Borrower
may on any Business Day, upon notice given to the Agent not later than 11:00
A.M. (New York City time) on the third Business Day prior to the date of the
proposed Conversion and subject to the provisions of Sections 2.08 and 2.12,
Convert all Advances of one Type comprising the same Borrowing into Advances of
the other Type; provided, however, that any Conversion of Eurodollar Rate
Advances into Base Rate Advances shall be made only on the last day of an
Interest Period for such Eurodollar Rate Advances, any Conversion of Base Rate
Advances into Eurodollar Rate Advances shall be in an amount not less than the
minimum amount specified in Section 2.02(b) and no Conversion of any Advances
shall result in more separate Borrowings than permitted under Section 2.02(b).
Each such notice of a Conversion shall, within the restrictions specified above,
specify (i) the date of such Conversion, (ii) the Advances to be Converted, and
(iii) if such Conversion is into Eurodollar Rate Advances, the duration of the
initial Interest Period for each such Advance. Each notice of Conversion shall
be irrevocable and binding on the Borrower.

                  SECTION 2.10. Prepayments of Advances. The Borrower may, upon
notice at least two Business Days' prior to the date of such prepayment, in the
case of Eurodollar Rate Advances, and not later than 11:00 A.M.

                                       15

<PAGE>

(New York City time) on the date of such prepayment, in the case of Base Rate
Advances, to the Agent stating the proposed date and aggregate principal amount
of the prepayment, and if such notice is given the Borrower shall, prepay the
outstanding principal amount of the Advances comprising part of the same
Borrowing in whole or ratably in part, together with accrued interest to the
date of such prepayment on the principal amount prepaid; provided, however, that
(x) each partial prepayment shall be in an aggregate principal amount of
$5,000,000 or an integral multiple of $1,000,000 in excess thereof and (y) in
the event of any such prepayment of a Eurodollar Rate Advance, the Borrower
shall be obligated to reimburse the Lenders in respect thereof pursuant to
Section 8.04(c).

                  SECTION 2.11. Increased Costs. (a) If, due to either (i) the
introduction of or any change in or in the interpretation of any law or
regulation or (ii) the compliance with any guideline or request from any central
bank or other governmental authority (whether or not having the force of law),
there shall be any increase in the cost to any Lender of agreeing to make or
making, funding or maintaining Eurodollar Rate Advances or of agreeing to issue
or of issuing or maintaining or participating in Letters of Credit (excluding
for purposes of this Section 2.11 any such increased costs resulting from (i)
Taxes or Other Taxes (as to which Section 2.14 shall govern) and (ii) changes in
the basis of taxation of overall net income or overall gross income by the
United States or by the foreign jurisdiction or state under the laws of which
such Lender is organized or has its Applicable Lending Office or any political
subdivision thereof), then the Borrower shall from time to time, upon demand by
such Lender (with a copy of such demand to the Agent), pay to the Agent for the
account of such Lender additional amounts sufficient to compensate such Lender
for such increased cost. A certificate as to the amount of such increased cost,
submitted to the Borrower and the Agent by such Lender, shall be conclusive and
binding for all purposes, absent manifest error.

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

                  SECTION 2.12. Illegality. Notwithstanding any other provision
of this Agreement, if any Lender shall notify the Agent that the introduction of
or any change in or in the interpretation of any law or regulation makes it
unlawful, or any central bank or other governmental authority asserts that it is
unlawful, for any Lender or its Eurodollar Lending Office to perform its
obligations hereunder to make Eurodollar Rate Advances or to fund or maintain
Eurodollar Rate Advances hereunder, (a) each Eurodollar Rate Advance will
automatically, upon such demand, Convert into a Base Rate Advance and (b) the
obligation of the Lenders to make Eurodollar Rate Advances or to Convert
Advances into Eurodollar Rate Advances shall be suspended until the Agent shall
notify the Borrower and the Lenders that the circumstances causing such
suspension no longer exist.

                  SECTION 2.13. Payments and Computations. (a) The Borrower
shall make each payment hereunder, irrespective of any right of counterclaim or
set-off, not later than 1:00 P.M. (New York City time) on the day when due in
U.S. dollars to the Agent at the Agent's Account in same day funds. The Agent
will promptly thereafter cause to be distributed like funds relating to the
payment of principal or interest or facility fees ratably (other than amounts
payable pursuant to Section 2.11, 2.14 or 8.04(c)) to the Lenders for the
account of their respective Applicable Lending Offices, and like funds relating
to the payment of any other amount payable to any Lender to such Lender for the
account of its Applicable Lending Office, in each case to be applied in
accordance with the terms of this Agreement. Upon any Assuming Lender becoming a
Lender hereunder as a result of a Commitment Increase pursuant to Section 2.18,
and upon the Agent's receipt of such Lender's Assumption Agreement and recording
of the information contained therein in the Register, from and after the
applicable Increase Date, the Agent shall make all payments hereunder and under
any Notes issued in connection therewith in respect of the interest assumed
thereby to the Assuming Lender. Upon its acceptance of an Assignment and
Acceptance and recording of the information contained therein in the Register
pursuant to Section 8.07(c), from and after the effective date specified in such
Assignment and Acceptance, the Agent shall make all payments hereunder and under

                                       16

<PAGE>

the Notes in respect of the interest assigned thereby to the Lender assignee
thereunder, and the parties to such Assignment and Acceptance shall make all
appropriate adjustments in such payments for periods prior to such effective
date directly between themselves.

                (b) The Borrower hereby authorizes each Lender, if and to the
extent payment owed to such Lender is not made when due hereunder or under the
Note held by such Lender, to charge from time to time against any or all of the
Borrower's accounts with such Lender any amount so due.

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

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

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

                SECTION 2.14. Taxes. (a) Any and all payments by the Borrower to
or for the account of any Lender or the Agent hereunder or under the Notes or
any other documents to be delivered hereunder shall be made, in accordance with
Section 2.13 or the applicable provisions of such other documents, free and
clear of and without deduction for any and all present or future taxes, levies,
imposts, deductions, charges or withholdings, and all liabilities with respect
thereto, excluding, in the case of each Lender and the Agent, taxes imposed on
its overall net income, and franchise taxes imposed on it in lieu of net income
taxes, by the jurisdiction under the laws of which such Lender or the Agent (as
the case may be) is organized or any political subdivision thereof and, in the
case of each Lender, taxes imposed on its overall net income, and franchise
taxes imposed on it in lieu of net income taxes, by the jurisdiction of such
Lender's Applicable Lending Office or any political subdivision thereof (all
such non-excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities in respect of payments hereunder or under the Notes being
hereinafter referred to as "Taxes"). If the Borrower shall be required by law to
deduct any Taxes from or in respect of any sum payable hereunder or under any
Note or any other documents to be delivered hereunder to any Lender or the
Agent, (i) the sum payable shall be increased as may be necessary so that after
making all required deductions (including deductions applicable to additional
sums payable under this Section 2.14) such Lender or the Agent (as the case may
be) receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions and (iii) the
Borrower shall pay the full amount deducted to the relevant taxation authority
or other authority in accordance with applicable law.

                (b) In addition, the Borrower shall pay any present or future
stamp or documentary taxes or any other excise or property taxes, charges or
similar levies that arise from any payment made hereunder or under the Notes or
any other documents to be delivered hereunder or from the execution, delivery or
registration of, performing under, or otherwise with respect to, this Agreement
or the Notes or any other documents to be delivered hereunder (hereinafter
referred to as "Other Taxes").

                                       17

<PAGE>

                (c) The Borrower shall indemnify each Lender and the Agent for
and hold it harmless against the full amount of Taxes or Other Taxes (including,
without limitation, taxes of any kind imposed or asserted by any jurisdiction on
amounts payable under this Section 2.14) imposed on or paid by such Lender or
the Agent (as the case may be) and any liability (including penalties, interest
and expenses) arising therefrom or with respect thereto. This indemnification
shall be made within 30 days from the date such Lender or the Agent (as the case
may be) makes written demand therefor.

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

                (e) Each Lender organized under the laws of a jurisdiction
outside the United States, on or prior to the date of its execution and delivery
of this Agreement in the case of each Initial Lender and on the date of the
Assignment and Acceptance pursuant to which it becomes a Lender in the case of
each other Lender, and from time to time thereafter as reasonably requested in
writing by the Borrower (but only so long as such Lender remains lawfully able
to do so), shall provide each of the Agent and the Borrower with two original
Internal Revenue Service forms W-8BEN or W-8ECI, as appropriate, or any
successor or other form prescribed by the Internal Revenue Service, certifying
that such Lender is exempt from or entitled to a reduced rate of United States
withholding tax on payments pursuant to this Agreement or the Notes. If the form
provided by a Lender at the time such Lender first becomes a party to this
Agreement indicates a United States interest withholding tax rate in excess of
zero, withholding tax at such rate shall be considered excluded from Taxes
unless and until such Lender provides the appropriate forms certifying that a
lesser rate applies, whereupon withholding tax at such lesser rate only shall be
considered excluded from Taxes for periods governed by such form; provided,
however, that, if at the date of the Assignment and Acceptance pursuant to which
a Lender assignee becomes a party to this Agreement, the Lender assignor was
entitled to payments under subsection (a) in respect of United States
withholding tax with respect to interest paid at such date, then, to such
extent, the term Taxes shall include (in addition to withholding taxes that may
be imposed in the future or other amounts otherwise includable in Taxes) United
States withholding tax, if any, applicable with respect to the Lender assignee
on such date. If any form or document referred to in this subsection (e)
requires the disclosure of information, other than information necessary to
compute the tax payable and information required on the date hereof by Internal
Revenue Service form W-8BEN or W-8ECI, that the Lender reasonably considers to
be confidential, the Lender shall give notice thereof to the Borrower and shall
not be obligated to include in such form or document such confidential
information.

                (f) For any period with respect to which a Lender has failed to
provide the Borrower with the appropriate form, certificate or other document
described in Section 2.14(e) (other than if such failure is due to a change in
law, or in the interpretation or application thereof, occurring subsequent to
the date on which a form, certificate or other document originally was required
to be provided, or if such form, certificate or other document otherwise is not
required under subsection (e) above), such Lender shall not be entitled to
indemnification under Section 2.14(a) or (c) with respect to Taxes imposed by
the United States by reason of such failure; provided, however, that should a
Lender become subject to Taxes because of its failure to deliver a form,
certificate or other document required hereunder, the Borrower shall take such
steps as the Lender shall reasonably request to assist the Lender to recover
such Taxes.

                (g) Any Lender claiming any additional amounts payable pursuant
to this Section 2.14 agrees to use reasonable efforts (consistent with its
internal policy and legal and regulatory restrictions) to change the
jurisdiction of its Eurodollar Lending Office if the making of such a change
would avoid the need for, or reduce the amount of, any such additional amounts
that may thereafter accrue and would not, in the reasonable judgment of such
Lender, be otherwise disadvantageous to such Lender.

                                       18

<PAGE>

                SECTION 2.15. Sharing of Payments, Etc. If any Lender shall
obtain any payment (whether voluntary, involuntary, through the exercise of any
right of set-off, or otherwise) on account of the Advances owing to it (other
than pursuant to Section 2.11, 2.14 or 8.04(c)) in excess of its ratable share
of payments on account of the Advances obtained by all the Lenders, such Lender
shall forthwith purchase from the other Lenders such participations in the
Advances owing to them as shall be necessary to cause such purchasing Lender to
share the excess payment ratably with each of them; provided, however, that if
all or any portion of such excess payment is thereafter recovered from such
purchasing Lender, such purchase from each Lender shall be rescinded and such
Lender shall repay to the purchasing Lender the purchase price to the extent of
such recovery together with an amount equal to such Lender's ratable share
(according to the proportion of (i) the amount of such Lender's required
repayment to (ii) the total amount so recovered from the purchasing Lender) of
any interest or other amount paid or payable by the purchasing Lender in respect
of the total amount so recovered. The Borrower agrees that any Lender so
purchasing a participation from another Lender pursuant to this Section 2.15
may, to the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off) with respect to such participation as fully as
if such Lender were the direct creditor of the Borrower in the amount of such
participation.

                SECTION 2.16. Evidence of Debt. (a) Each Lender shall maintain
in accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower to such Lender resulting from each Advance owing to
such Lender from time to time, including the amounts of principal and interest
payable and paid to such Lender from time to time hereunder in respect of
Advances. The Borrower agrees that upon notice by any Lender to the Borrower
(with a copy of such notice to the Agent) to the effect that a Note is required
or appropriate in order for such Lender to evidence (whether for purposes of
pledge, enforcement or otherwise) the Advances owing to, or to be made by, such
Lender, the Borrower shall promptly execute and deliver to such Lender a Note
payable to the order of such Lender in a principal amount up to the Revolving
Credit Commitment of such Lender.

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

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

                SECTION 2.17. Use of Proceeds. The proceeds of the Advances and
issuances of Letters of Credit shall be available (and the Borrower agrees that
it shall use such proceeds) solely for general corporate purposes of the
Borrower and its Subsidiaries.

                SECTION 2.18. Increase in the Aggregate Commitments. (a) The
Borrower may, at any time but in any event not more than three times in any
calendar year prior to the Termination Date, by notice to the Agent, request
that the aggregate amount of each of the Revolving Credit Commitments and the
Letter of Credit Commitments be increased by an amount of $10,000,000 or an
integral multiple thereof (each a "Commitment Increase") to be effective as of a
date that is at least 60 days prior to the scheduled Termination Date then in
effect (the "Increase Date") as specified in the related notice to the Agent;
provided, however that (i) in no event shall the aggregate amount of the
Revolving Credit Commitments or the Letter of Credit Commitments at any time
exceed $450,000,000 and (ii) on the date of any request by the Borrower for a
Commitment Increase and on the related Increase Date, the applicable conditions
set forth in Article III shall be satisfied.

                (b) The Agent shall promptly notify the Lenders of a request by
the Borrower for a Commitment Increase, which notice shall include (i) the
proposed amount of such requested Commitment Increase,

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<PAGE>

(ii) the proposed Increase Date and (iii) the date by which Lenders wishing to
participate in the Commitment Increase must commit to an increase in the amount
of their respective Commitments (the "Commitment Date"). Each Lender that is
willing to participate in such requested Commitment Increase (each an
"Increasing Lender") shall, in its sole discretion, give written notice to the
Agent on or prior to the Commitment Date of the amount by which it is willing to
increase its Commitment. If the Lenders notify the Agent that they are willing
to increase the amount of their respective Commitments by an aggregate amount
that exceeds the amount of the requested Commitment Increase, the requested
Commitment Increase shall be allocated among the Lenders willing to participate
therein in such amounts as are agreed between the Borrower and the Agent.

                (c) Promptly following each Commitment Date, the Agent shall
notify the Borrower as to the amount, if any, by which the Lenders are willing
to participate in the requested Commitment Increase. If the aggregate amount by
which the Lenders are willing to participate in any requested Commitment
Increase on any such Commitment Date is less than the requested Commitment
Increase, then the Borrower may extend offers to one or more Eligible Assignees
to participate in any portion of the requested Commitment Increase that has not
been committed to by the Lenders as of the applicable Commitment Date; provided,
however, that the Commitment of each such Eligible Assignee shall be in an
amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof.

                (d) On each Increase Date, each Eligible Assignee that accepts
an offer to participate in a requested Commitment Increase in accordance with
Section 2.18(b) (each such Eligible Assignee, an "Assuming Lender") shall become
a Lender party to this Agreement as of such Increase Date and the Commitment of
each Increasing Lender for such requested Commitment Increase shall be so
increased by such amount (or by the amount allocated to such Lender pursuant to
the last sentence of Section 2.18(b)) as of such Increase Date; provided,
however, that the Agent shall have received on or before such Increase Date the
following, each dated such date:

                (i)   (A) certified copies of resolutions of the Board of
         Directors of the Borrower or the Executive Committee of such Board
         approving this Agreement after giving effect to the Commitment Increase
         and (B) an opinion of counsel for the Borrower (which may be in-house
         counsel), in substantially the form of Exhibit D hereto;

                (ii)  an assumption agreement from each Assuming Lender, if any,
         in form and substance satisfactory to the Borrower and the Agent (each
         an "Assumption Agreement"), duly executed by such Eligible Assignee,
         the Agent and the Borrower; and

                (iii) confirmation from each Increasing Lender of the increase
         in the amount of its Commitment in a writing satisfactory to the
         Borrower and the Agent.

On each Increase Date, upon fulfillment of the conditions set forth in the
immediately preceding sentence of this Section 2.18(d), (x) the Agent shall
notify the Lenders (including, without limitation, each Assuming Lender) and the
Borrower, on or before 1:00 P.M. (New York City time), by telecopier or telex,
of the occurrence of the Commitment Increase to be effected on such Increase
Date and shall record in the Register the relevant information with respect to
each Increasing Lender and each Assuming Lender on such date and (y) the
Borrower shall deliver to the Agent notice as required under Section 2.10 to
prepay Advances, and a Notice of Borrowing under Section 2.02, in each case such
that after giving effect to such repayment and such Borrowing each of the
Lenders shall have made Advances ratably in proportion to their respective
Commitments after giving effect to the Commitment Increase.

                                   ARTICLE III

                     CONDITIONS TO EFFECTIVENESS AND LENDING

                SECTION 3.01. Conditions Precedent to Effectiveness of Section
2.01. Section 2.01 of this Agreement shall become effective on and as of the
first date (the "Effective Date") on which the following conditions precedent
have been satisfied:

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<PAGE>

               (a) There shall have occurred no Material Adverse Change since
     December 31, 2001.

               (b) There shall exist no action, suit, investigation, litigation
     or proceeding affecting the Borrower or any of its Subsidiaries pending or
     threatened before any court, governmental agency or arbitrator that (i)
     could be reasonably likely to have a Materially Adverse Effect other than
     the matters described in Item 4.01(f) ("Litigation") of the Disclosure
     Schedule or (ii) purports to affect the legality, validity or
     enforceability of this Agreement or any Note or the consummation of the
     transactions contemplated hereby.

               (c) Nothing shall have come to the attention of the Lenders
     during the course of their due diligence investigation to lead them to
     believe that the Information Memorandum was or has become misleading,
     incorrect or incomplete in any material respect; without limiting the
     generality of the foregoing, the Lenders shall have been given such access
     to the management, records, books of account, contracts and properties of
     the Borrower and its Subsidiaries as they shall have requested.

               (d) All governmental and third party consents and approvals
     necessary in connection with the transactions contemplated hereby shall
     have been obtained (without the imposition of any conditions that are not
     acceptable to the Lenders) and shall remain in effect, and no law or
     regulation shall be applicable in the reasonable judgment of the Lenders
     that restrains, prevents or imposes materially adverse conditions upon the
     transactions contemplated hereby.

               (e) The Borrower shall have notified each Lender and the Agent in
     writing as to the proposed Effective Date.

               (f) The Borrower shall have paid all accrued fees of the Agent
     and the Lenders and all accrued expenses of the Agent (including the
     accrued fees and expenses of counsel to the Agent).

               (g) On the Effective Date, the following statements shall be true
     and the Agent shall have received for the account of each Lender a
     certificate signed by a duly authorized officer of the Borrower, dated the
     Effective Date, stating that:

                   (i)   The representations and warranties contained in Section
               4.01 are correct on and as of the Effective Date, and

                   (ii)  No event has occurred and is continuing that
     constitutes a Default.

               (h) The Agent shall have received on or before the Effective Date
     the following, each dated such day, in form and substance satisfactory to
     the Agent and (except for the Notes) in sufficient copies for each Lender:

                   (i)   The Notes to the order of the Lenders to the extent
               requested  by any Lender pursuant to Section 2.16.

                   (ii)  Certified copies of the resolutions of the Board of
               Directors of each Loan Party approving each Loan Document to
               which it is or is to be a party, and of all documents evidencing
               other necessary corporate action and governmental approvals, if
               any, with respect to the Loan Documents.

                   (iii) A certificate of the Secretary or an Assistant
               Secretary of each Loan Party certifying the names and true
               signatures of the officers of such Loan Party authorized to sign
               each Loan Document to which it is or is to be a party and the
               other documents to be delivered hereunder.

                   (iv)  The Subsidiary Guaranty, duly executed by each Person
               that is a Significant Subsidiary as of the Effective Date.

                                       21

<PAGE>

               (v)   The Subordination Agreement duly executed by the Borrower
          and each Subsidiary which, as of the Effective Date, is expected to
          make any loans to any Guarantor.

               (vi)  A favorable opinion of Rowland H. Burns, Jr., Senior
          Counsel for the Borrower, substantially in the form of Exhibit D
          hereto and as to such other matters as any Lender through the Agent
          may reasonably request.

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

          (i)  The termination of the commitments of the lenders and the payment
     in full of all Indebtedness outstanding under the $400,000,000 Amended and
     Restated Senior Revolving Loan Agreement dated as of September 21, 2001
     among the Borrower, the lenders parties thereto, Dresdner Bank AG, New York
     and Grand Cayman Branches, Mellon Bank, N.A. and The Bank of Nova Scotia,
     as syndication agents, and Citibank, N.A, as administrative agent. By
     execution of this Agreement, each of the Lenders that is a lender under the
     credit agreement referred to above hereby waives any requirement set forth
     in such credit agreement of prior notice to the termination of their
     commitments thereunder.

          SECTION 3.02. Conditions Precedent to Each Borrowing and Letter of
Credit Issuance. The obligation of each Lender to make an Advance on the
occasion of each Borrowing and the obligation of each Issuing Bank to issue a
Letter of Credit shall be subject to the conditions precedent that the Effective
Date shall have occurred and on the date of such Borrowing or issuance (a) the
following statements shall be true (and each of the giving of the applicable
Notice of Borrowing, Notice of Issuance and the acceptance by the Borrower of
the proceeds of such Borrowing or Letter of Credit shall constitute a
representation and warranty by the Borrower that on the date of such Borrowing
or such issuance such statements are true):

          (i)  the representations and warranties contained in Section 4.01 are
     correct on and as of such date, before and after giving effect to such
     Borrowing or such issuance and to the application of the proceeds
     therefrom, as though made on and as of such date, and

          (ii) no event has occurred and is continuing, or would result from
     such Borrowing or issuance or from the application of the proceeds
     therefrom, that constitutes a Default;

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

          SECTION 3.03. Determinations Under Section 3.01. For purposes of
determining compliance with the conditions specified in Section 3.01, each
Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to the Lenders unless an officer
of the Agent responsible for the transactions contemplated by this Agreement
shall have received notice from such Lender prior to the date that the Borrower,
by notice to the Lenders, designates as the proposed Effective Date, specifying
its objection thereto. The Agent shall promptly notify the Lenders of the
occurrence of the Effective Date.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

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

          (a)  Each Loan Party is a corporation validly organized and existing
     and in good standing under the laws of the state of its incorporation, is
     duly qualified to do business and in good standing as a foreign corporation
     in each jurisdiction where the nature of its business makes such
     qualification necessary and where the failure to so qualify would
     reasonably be expected to have a Materially Adverse Effect and

                                       22

<PAGE>

     has full power and authority to own and hold under lease its property and
     conduct its business substantially as presently conducted by it. Each Loan
     Party has full power and authority to enter into and to perform its
     obligations under this Agreement and each Loan Document to which each is a
     party and to obtain the Advances hereunder, in the case of the Borrower.

          (b)  The execution and delivery by each Loan Party of this Agreement
     and each Loan Document executed by it and the performance by each of its
     respective obligations hereunder and thereunder and the borrowings
     hereunder by the Borrower have been duly authorized by all necessary
     corporate action, do not require any Approval, do not and will not conflict
     with, result in any violation of, or constitute any default under, any
     provision of any Organic Document or material Contractual Obligation of
     such Loan Party (or any other material Contractual Obligation) or any
     present law or governmental regulation or court decree or order applicable
     to any Loan Party and will not result in or require the creation or
     imposition of any Lien in any of their respective properties pursuant to
     the provisions of any Contractual Obligation.

          (c)  This Agreement is, and each Loan Document executed by any Loan
     Party will on the due execution and delivery thereof be, the legal, valid
     and binding obligation of such Loan Party enforceable in accordance with
     its terms, subject, as to enforcement, only to bankruptcy, insolvency,
     reorganization, moratorium or other similar laws at the time in effect
     affecting the enforceability of the rights of creditors generally, and by
     general equitable principles.

          (d)  All balance sheets, statements of operations, of total owners'
     equity and of changes in cash flows and other financial information of the
     Borrower and the Consolidated Subsidiaries which have been or shall
     hereafter be furnished by or on behalf of the Borrower for the purposes of
     or in connection with this Agreement or any transaction contemplated hereby
     pursuant to Section 5.01(a)(i) or Section 5.01(a)(ii) (except Section
     5.01(a)(i)(C)) have been or will be prepared in accordance with GAAP
     consistently applied throughout the periods involved (except as disclosed
     therein), and, in the case of information relating to coal reserves, have
     been or will be prepared in accordance with all relevant rules and
     regulations promulgated by the SEC, as in effect from time to time, and do
     or will present fairly the consolidated financial condition of the
     corporations covered thereby as at the dates thereof and the results of
     their operations for the periods then ended and the consolidated statements
     of earnings, of operations and of total owners' equity, for each of the
     fiscal periods then ended, of the Borrower and the Consolidated
     Subsidiaries (or, in the case of any such balance sheets or statements
     prepared prior to the date hereof, of the Borrower and its Consolidated
     Subsidiaries). Since December 31, 2001, there has been no occurrence which,
     individually or in the aggregate, would reasonably be expected to have a
     Materially Adverse Effect. Except as disclosed in Item 4.01(f)
     ("Litigation") of the Disclosure Schedule, neither the Borrower nor the
     Consolidated Subsidiaries have any material contingent liabilities
     (including any liability pursuant to the Federal Black Lung Benefits Act of
     1972, as in effect from time to time) not provided for or disclosed in the
     financial statements of the Borrower and the Consolidated Subsidiaries most
     recently delivered by or on behalf of the Borrower to the Lenders.

          (e)  Neither the Borrower nor any Subsidiary is in default,

          (i)  in the payment of (or in the performance of any material
     obligation applicable to) any Indebtedness outstanding in a principal
     amount exceeding $10,000,000 in the aggregate; or

          (ii) under any law or governmental regulation or court decree or order
     which would reasonably be expected to have a Materially Adverse Effect.

          (f)  Except as described in Item 4.01(f) ("Litigation") of the
     Disclosure Schedule, no litigation, arbitration or governmental
     investigation or proceeding against the Borrower or any Subsidiary or to
     which any of the properties of any thereof is subject is pending or, to the
     knowledge of the Borrower, threatened which would reasonably be expected to
     result in a liability in excess of $10,000,000.

          (g)  Neither the Borrower nor any Subsidiary is engaged principally,
     or as one of its important activities, in the business of extending credit
     for the purpose of purchasing or carrying margin stock, and

                                       23

<PAGE>

     less than 25% of the assets of each consists of margin stock. Proceeds of
     Advances hereunder will be used in compliance with Regulation U of the
     F.R.S. Board or any regulations substituted therefor. Terms for which
     meanings are provided in Regulation U of the F.R.S. Board or any
     regulations substituted therefor, as from time to time in effect, are used
     in this Section with such meanings.

          (h)  Neither the Borrower nor any Subsidiary is an "investment
     company" within the meaning of the Investment Company Act of 1940, as
     amended, or a "holding company", or a "subsidiary company" of a "holding
     company", or an "affiliate" of a "holding company" or of a "subsidiary
     company" of a "holding company", within the meaning of the Public Utility
     Holding Company Act of 1935, as amended.

          (i)  Neither the Borrower nor any Subsidiary is a party or subject to
     any Contractual Obligation or Organic Document which would reasonably be
     expected to have a Materially Adverse Effect.

          (j)  The Borrower and all Subsidiaries have filed all tax returns and
     reports required by law to have been filed by them and have paid all taxes
     and governmental charges thereby shown to be owing, except any such taxes
     or charges which are being contested in good faith by appropriate
     proceedings and for which adequate reserves in accordance with GAAP shall
     have been set aside on their books.

          (k)  During the twelve-consecutive-month period prior to the Effective
     Date and prior to the date of any Borrowing hereunder, (a) no steps have
     been taken to terminate any Pension Plan the assets of which are
     insufficient to satisfy all benefit liabilities thereunder (as defined in
     section 4001(a)(16) of ERISA) for which the Borrower or any Subsidiary
     could be held liable, (b) no contribution failure has occurred with respect
     to any Pension Plan sufficient to give rise to a Lien under section 302(f)
     of ERISA and (c) none of the Borrower, any Subsidiary or any member of the
     Controlled Group of any of them has incurred or is reasonably likely to
     incur any Withdrawal Liability to any Multiemployer Plan. No condition
     exists or event or transaction has occurred with respect to any Pension
     Plan which might result in the incurrence by the Borrower or any Subsidiary
     of any material liability, fine or penalty. Neither the Borrower nor any
     Subsidiary has any contingent liability with respect to any post-retirement
     benefit under a Welfare Plan, other than liability for continuation
     coverage described in Part 6 of Subtitle B of Title I of ERISA.

          (l)  The Borrower has no other Subsidiaries or Significant
     Subsidiaries except those identified in Item 4.01(l) ("Existing
     Subsidiaries and Significant Subsidiaries") of the Disclosure Schedule or
     those acquired or created subsequent to the date hereof.

          (m)  The Borrower and each Subsidiary owns and possesses all such
     patents, patent rights, trademarks, trademark rights, trade names, trade
     name rights, service marks, service mark rights and copyrights as the
     Borrower considers necessary for the conduct of the businesses of the
     Borrower or such Subsidiary as now conducted without any infringement upon
     rights of others which would reasonably be expected to have a Materially
     Adverse Effect. There is no individual patent or patent license used by the
     Borrower or any Subsidiary in the conduct of its business the loss of which
     would reasonably be expected to have a Materially Adverse Effect.

          (n)  The Borrower and each Subsidiary has good and marketable title to
     or good leasehold interests in all of its material properties and assets,
     real and personal, of any nature whatsoever, free and clear of all Liens
     except as permitted pursuant to Section 5.02(b).

          (o)  All factual information heretofore or contemporaneously furnished
     by the Borrower to the Agent or the Lenders in connection with execution
     and delivery of this Agreement and the various transactions contemplated
     hereby, as supplemented from time to time and when taken as a whole, to the
     best of the Borrower's knowledge, has been, and all other such factual
     information hereafter furnished by the Borrower or any Subsidiary, as
     supplemented from time to time and when taken as a whole, will be, true and
     accurate in every material respect on the date as of which such information
     is dated or certified and as of the Effective Date and not incomplete by
     omitting to state any material fact necessary to make such information not
     misleading. All projections and pro forma financial information contained
     in any materials furnished by the Borrower or any Subsidiary to the Lender
     are based on good faith estimates and

                                       24

<PAGE>

assumptions by the management of the Borrower or the applicable Subsidiary, it
being recognized by the Lenders, however, that projections and statements as to
future events are not to be viewed as fact and that actual results during the
period or periods covered by any such projections or statements may differ from
the projected results and that the differences may be material.

       (p)   (i) No facility or property (including underlying groundwater)
owned or leased by the Borrower or any Significant Subsidiary is out of
compliance with any Environmental Law to the extent that such noncompliance,
either singly or in the aggregate, has or could reasonably be expected to have a
Materially Adverse Effect;

             (ii)  There are no pending or threatened

                    (A)   claims, complaints, notices or requests for
             information received by the Borrower or any Significant Subsidiary
             with respect to any alleged violation of any Environmental Law, or

                    (B)   complaints, notices or inquiries to the Borrower or
             any Significant Subsidiary regarding potential liability under any
             Environmental Law,

       in each case, which singly, or in the aggregate, have or could reasonably
       be expected to have a Materially Adverse Effect;

             (iii)  There have been no Releases of Hazardous Materials at, on or
       under any property now or previously owned or leased by the Borrower or
       any Significant Subsidiary that, singly or in the aggregate, have, or
       could reasonably be expected to have, a Materially Adverse Effect;

             (iv)   The Borrower and the Significant Subsidiaries have been
       issued and are in material compliance with all material permits,
       certificates, approvals, licenses and other authorizations relating to
       environmental matters and necessary or desirable for their businesses;

             (v)    No property now or previously owned or leased by the
       Borrower or any Significant Subsidiary is listed or proposed for listing
       (with respect to owned property only) (i) on the CERCLIS or on any
       similar state list of sites requiring investigation or clean-up to the
       extent that such listing relates to liabilities, individually or in the
       aggregate, that could reasonably be expected to have a Materially Adverse
       Effect, or (ii) on the National Priorities List pursuant to CERCLA;

             (vi)   There are no underground storage tanks, active or abandoned,
       including petroleum storage tanks, on or under any property now or
       previously owned or leased by the Borrower or any Significant Subsidiary
       that, singly or in the aggregate, have, or could reasonably be expected
       to have, a Materially Adverse Effect;

             (vii)  Neither the Borrower nor any Significant Subsidiary has
       directly transported or directly arranged for the transportation of any
       Hazardous Material to any location which is listed or proposed for
       listing on the National Priorities List pursuant to CERCLA, on the
       CERCLIS or on any similar state list or which is the subject of federal,
       state or local enforcement actions or other investigations which may lead
       to material claims against the Borrower or such Significant Subsidiary
       for any remedial work, damage to natural resources or personal injury,
       including claims under CERCLA that, either singly or in the aggregate,
       have, or could reasonably be expected to have, a Materially Adverse
       Effect;

             (viii) There are no polychlorinated biphenyls or friable asbestos
       present at any property now or previously owned or leased by the Borrower
       or any Significant Subsidiary that,

                                       25

<PAGE>

             singly or in the aggregate, have, or could reasonably be expected
             to have, a Materially Adverse Effect;

                   (ix)  No conditions exist at, on or under any property now or
             previously owned or leased by the Borrower or any Significant
             Subsidiary which, with the passage of time, or the giving of notice
             or both, would give rise to liability under any Environmental Law
             that, either singly or in the aggregate, have, or could reasonably
             be expected to have, a Materially Adverse Effect; and

                   (x)   Neither the Borrower nor any Subsidiary owns or leases
             any "industrial establishment" (as such term is defined in the New
             Jersey Environmental Cleanup Responsibility Act, N.J.S.A. 13:1K-6,
             et seq.) in the State of New Jersey.

             (q)   As of the date of this Agreement, the Borrower is and will
       be Solvent. As used in this Section, "Solvent" means the Borrower is
       able to pay its debts as they become due in the usual course of business.

             (r)   Any Advance hereunder will be pari passu with all of
       Borrower's other unsecured Indebtedness for Borrowed Money.

                                    ARTICLE V

                            COVENANTS OF THE BORROWER

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

             (a)   Financial Information. The Borrower will furnish, or will
       cause to be furnished, to the Agent (in sufficient copies for each
       Lender) the following financial statements, reports and information:

                   (i)     promptly when available and in any event within 90
             days after the close of each Fiscal Year

                           (A)    a balance sheet at the close of such Fiscal
                   Year, and statements of operations, of Total Owners' Equity
                   and of cash flows for such Fiscal Year, of the Borrower and
                   the Consolidated Subsidiaries certified without Impermissible
                   Qualification by independent public accountants of recognized
                   standing selected by the Borrower and reasonably acceptable
                   to the Lenders,

                           (B)    a letter report of such accountants at the
                   close of such Fiscal Year to the effect that they have
                   reviewed the provisions of this Agreement and are not aware
                   of any Default hereunder (insofar as any Default may relate
                   to accounting matters) continuing at the end of such Fiscal
                   Year, except such Default, if any, as may be disclosed in
                   such statement,

                           (C)    a certificate of an Authorized Officer of
                   the Borrower that no Default has occurred and is continuing,
                   or specifying any such Default and the actions, if any, being
                   taken by the Borrower with respect thereto,

                           (D)    a notice that the Borrower is in compliance
                   with the requirements as stated under Section 5.02(l) Funded
                   Debt Ratio and Section 5.02(m) Interest Coverage Ratio,
                   setting forth in reasonable detail the calculations necessary
                   to demonstrate compliance with Section 5.02(l) and (m); and

                                       26

<PAGE>

                           (E)    an amended Schedule II to this Agreement
                   listing, as of the end of such Fiscal Year, each Significant
                   Subsidiary;

                   (ii)    promptly when available and in any event within 45
             days after the close of each of the first three Fiscal Quarters of
             each Fiscal Year

                           (A)    a balance sheet at the close of such Fiscal
                   Quarter and statements of operations, of total owners' equity
                   and of changes in cash flows for the period commencing at the
                   close of the previous Fiscal Year and ending with the close
                   of such Fiscal Quarter, of the Borrower and the Consolidated
                   Subsidiaries;

                           (B)    a notice that the Borrower is in compliance
                   with the requirements as stated under Section 5.02(l) Funded
                   Debt Ratio and Section 5.02(m) Interest Coverage Ratio,
                   setting forth in reasonable detail the calculations necessary
                   to demonstrate compliance with Section 5.02(l) and (m); and

                           (C)    a certificate of an Authorized Officer of the
                   Borrower that no Default has occurred and is continuing, or
                   specifying any such Default and the actions, if any, being
                   taken by the Borrower with respect thereto,

                   (iii)   promptly upon the incorporation or acquisition
             thereof, information regarding the creation or acquisition of any
             new Significant Subsidiary;

                   (iv)    promptly after the sending or filing thereof, copies
             of all quarterly and annual reports and proxy solicitations that
             the Borrower sends to any of its securityholders, and copies of all
             reports on Form 8-K that the Borrower files with the Securities and
             Exchange Commission (other than reports on Form 8-K filed solely
             for the purpose of incorporating exhibits into a registration
             statement previously filed with the Securities and Exchange
             Commission); and

                   (v)     such other information with respect to the financial
             condition, business, property, assets, revenues, and operations of
             the Borrower and the Subsidiaries as any Lender may from time to
             time reasonably request.

             Reports required to be delivered pursuant to clauses (i)(A), (ii)
(A) and (iv) above shall be deemed to have been delivered on the date on which
such report is posted on the SEC's website at www.sec.gov, and such posting
shall be deemed to satisfy the reporting requirements of clauses (i)(A), (ii)(A)
and (iv) above; provided that in every instance the Borrower shall provide paper
copies of the certificate required by clauses (i)(C), (i)(D), (ii)(B) and
(ii)(C) above to the Agent and each of the Lenders until such time as the Agent
shall provide the Borrower written notice otherwise.

             (b)   Maintenance of Corporate Existences. Except as permitted by
Section 5.02(c), the Borrower will cause to be done at all times all things
necessary to maintain and preserve the corporate existences of the Borrower and
each Significant Subsidiary, and to comply in all material respects with all
applicable laws, rules, regulations and orders. Except as permitted by Section
5.02(c), the Borrower will continue to own and hold directly or indirectly, free
and clear of all Liens (except as permitted by Section 5.02(b)), all of the
outstanding ownership interest of each Subsidiary now owned or hereafter
acquired.

             (c)   Foreign Qualification. The Borrower will, and will cause
each Subsidiary to, cause to be done at all times all things necessary to be
duly qualified to do business and in good standing as a foreign corporation in
each jurisdiction where the nature of its business makes such qualification
necessary and where the failure to so qualify would reasonably be expected to
have a Materially Adverse Effect, and to comply in all material respects with
all applicable laws, rules, regulations and orders.

             (d)   Payment of Taxes. The Borrower will, and will cause each
Subsidiary to, pay and discharge, prior to becoming delinquent, all federal,
state and local taxes, assessments and other governmental charges or levies
against or on any of its property, as well as claims of any kind which, if

                                       27

<PAGE>

unpaid, might become a Lien in a material amount upon any of its properties;
provided, however, that the foregoing shall not require the Borrower or any
Subsidiary to pay or discharge any such tax, assessment, charge, levy or other
Lien so long as it shall contest the validity thereof in good faith by
appropriate proceedings and shall set aside on its books adequate reserves in
accordance with GAAP with respect thereto.

             (e)   Insurance. The Borrower will, and will cause each Subsidiary
to, maintain or cause to be maintained through self-insurance and with
responsible insurance companies insurance with respect to its properties and
business against such casualties and contingencies and of such types and in such
amounts as has been historically maintained by the Borrower and the
Subsidiaries, or which is consistent with sound business practice in the
reasonable opinion of the Borrower, and will, upon request of any Lender through
the Agent, furnish to the Agent at reasonable intervals a certificate of an
Authorized Officer setting forth the nature and extent of all insurance
maintained by the Borrower and the Subsidiaries in accordance with this Section.

             (f)   Notice of Default, Litigation. The Borrower will give prompt
notice (with a description in reasonable detail) to the Agent (in sufficient
copies for each Lender) of:

                   (i)   the occurrence of any Default or any Event of Default;

                   (ii)  the occurrence of any litigation, arbitration or
             governmental investigation or proceeding not previously disclosed
             by the Borrower to the Agent which has been instituted or, to the
             knowledge of the Borrower, is threatened against the Borrower or
             any Subsidiary or to which any of their respective properties is
             subject which would reasonably be expected to result in a liability
             to the Borrower or any Subsidiary not covered by the Borrower's or
             such Subsidiary's insurers, as applicable, in excess of
             $10,000,000;

                   (iii) any material development which shall occur in any
             litigation, arbitration or governmental investigation or proceeding
             previously disclosed by the Borrower to the Agent;

                   (iv)  the occurrence of any event which would reasonably be
             expected to have a Materially Adverse Effect;

                   (v)   the occurrence of (A) a Reportable Event with respect
             to any Pension Plan; (B) the institution of steps by the Borrower
             or any Subsidiary or any member of the Controlled Group of any of
             them to terminate, any Pension Plan where the unfunded liability is
             in excess of $10,000,000; or (C) a partial or complete withdrawal
             (as described in ERISA section 4203 or 4205) by the Borrower or any
             Subsidiary or any member of the Controlled Group of any of them
             from a Multiemployer Plan where the unfunded liability is in excess
             of $10,000,000; and

                   (f)   the occurrence of (A) the institution of any steps by
             the PBGC to terminate any Pension Plan; (B) the failure to make a
             required contribution to any Pension Plan if such failure is
             sufficient to give rise to a Lien under section 302(f) of ERISA;
             (C) the adoption of an amendment or the application for a funding
             waiver that could result in a requirement that the Borrower or any
             Subsidiary furnish a bond or other security to the PBGC or to a
             Pension Plan pursuant to sections 306 or 307 of ERISA; (D) the
             assertion of any claim with respect to any Pension Plan which
             could, if determined adversely, result in the incurrence by the
             Borrower or any Subsidiary of any material liability, fine or
             penalty; or (E) any material increase in the contingent liability
             of the Borrower or any Subsidiary with respect to post-retirement
             benefits under any Welfare Plan, as determined under Financial
             Accounting Standards Board No. 106.

             (g)   Performance of Loan Documents. The Borrower will, and will
cause each Loan Party to, perform promptly and faithfully all of its obligations
under each Loan Document executed by it.

                                       28

<PAGE>

             (h)   Books and Records. The Borrower will, and will cause each
       Subsidiary to, keep books and records reflecting all of its business
       affairs and transactions in accordance with GAAP and permit each Lender
       or any of its representatives, at reasonable times and intervals and as
       arranged through the Treasurer or chief legal officer of the Borrower, to
       visit all of its offices, discuss its financial matters with its officers
       and independent accountants, examine and photocopy extracts from (i) any
       of its financial books and records and (ii) any of its other corporate
       records other than such corporate records that are reasonably determined
       by the Borrower to be proprietary.

             (i)   Subsidiary Guaranty. The Borrower agrees to promptly notify
       the Agent each time a Subsidiary becomes a Significant Subsidiary and to
       cause such Significant Subsidiary to deliver promptly to the Agent a duly
       executed Subsidiary Guaranty along with an opinion of counsel and
       certificates of the type required by Section 3.01(h)(ii) and (iii) all in
       form and substance acceptable to the Agent.

             (j)   Environmental Covenant. The Borrower will, and will cause
       each Significant Subsidiary to,

                   (i)   use and operate all of its facilities and properties in
             material compliance with all Environmental Laws, keep all necessary
             permits, approvals, certificates, licenses and other authorizations
             relating to environmental matters in effect and remain in material
             compliance therewith, and handle all Hazardous Materials in
             material compliance with all applicable Environmental Laws;

                   (ii)  immediately notify the Agent and provide copies upon
             receipt of all material written claims, complaints, notices or
             inquiries relating to the condition of its facilities and
             properties or compliance with Environmental Laws, in each case
             which involve or could reasonably be expected to involve
             obligations of the Borrower or any Significant Subsidiary, as the
             case may be, in excess of $10,000,000; and

                   (iii) provide such information and certifications which any
             Lender through the Agent may reasonably request from time to time
             to evidence compliance with this Section 5.01(j).

             SECTION 5.02. Negative Covenants. So long as any Advance shall
remain unpaid or any Lender shall have any Commitment hereunder or any Letter of
Credit shall be outstanding, the Borrower will not:

             (a) Indebtedness for Borrowed Money. The Borrower will not
       permit any Subsidiary to incur or permit to exist any Indebtedness for
       Borrowed Money, except (i) Indebtedness for Borrowed Money of any
       Significant Subsidiary to the Borrower or any Subsidiary which is
       subordinated to such Significant Subsidiary's obligations under the
       Subsidiary Guaranty pursuant to a Subordination Agreement; (ii)
       Indebtedness for Borrowed Money of any Subsidiary (other than a
       Significant Subsidiary) to any other Subsidiary or to the Borrower (iii)
       Indebtedness for Borrowed Money outstanding on the date hereof and listed
       in Item 5.02(a)(iii) of the Disclosure Schedule and refinancings thereof;
       provided that such Indebtedness for Borrowed Money is not increased as
       the result of such refinancing; (iv) additional unsecured Indebtedness
       for Borrowed Money of all Subsidiaries (other than Significant
       Subsidiaries) not to exceed $25,000,000 in the aggregate at any one time
       outstanding; (v) additional unsecured Indebtedness for Borrowed Money of
       any Subsidiary acquired with such indebtedness existing at the time of
       acquisition/merger of such Subsidiary and (vi) additional unsecured
       Indebtedness for Borrowed Money of any Subsidiary permitted in accordance
       with Section 5.02(i) hereof.

             (b)  Liens. The Borrower will not, and will not permit any
       Subsidiary to, create, incur, assume or suffer to exist any Lien upon any
       of its property or assets, whether now owned or hereafter acquired,
       except:

                  (i)    Liens in favor of the Agent for the benefit of the
             Lenders;

                                       29

<PAGE>

             (ii)    Liens which were granted prior to the date hereof in (and
       only in) assets identified in Item 5.02(a)(iii) ("Ongoing Indebtedness")
       and Item 5.02(b)(ii) ("Liens") of the Disclosure Schedule;

             (iii)   Liens in (and only in) stock or assets permitted to be
       acquired under the terms of this Agreement granted to secure Indebtedness
       incurred at the time of such acquisition (or within one year thereof) to
       finance the acquisition of such stock or assets; provided, that the
       amount of Indebtedness secured thereby is not increased;

             (iv)    statutory and common law banker's Liens and rights of
       setoff on bank deposits;

             (v)     Liens for taxes, assessments or other governmental charges
       or levies not at the time delinquent or thereafter payable without
       penalty or being contested in good faith by appropriate proceedings and
       for which adequate reserves in accordance with GAAP shall have been set
       aside on its books;

             (vi)    Liens of carriers, warehousemen, mechanics, materialmen and
       landlords incurred in the ordinary course of business for sums not
       overdue or being contested in good faith by appropriate proceedings and
       for which adequate reserves in accordance with GAAP shall have been set
       aside on its books;

             (vii)   Liens incurred or existing in the ordinary course of
       business, consistent with past practice and not to secure Indebtedness
       for Borrowed Money, such as in connection with workers' compensation,
       unemployment insurance or other forms of governmental insurance or
       benefits, or to secure performance of tenders, statutory obligations,
       leases and contracts entered into in the ordinary course of business or
       to secure obligations on surety or appeal bonds;

             (viii)  judgment Liens in existence less than 30 days after the
       entry thereof or with respect to which execution has been stayed or the
       payment of which is covered in full (subject to a customary deductible)
       by insurance;

             (ix)    Liens existing on any assets at the date of acquisition of
       such assets permitted to be acquired under the terms of this Agreement
       acquired after the date of this Agreement;

             (x)     Liens granted to secure Indebtedness incurred to refinance
       any Indebtedness secured by Liens permitted by clauses (ii), (iii) and
       (ix) of this Section 5.02(b); provided, that such Indebtedness is not
       increased as the result of such refinancing and that such Liens attach
       only to the same assets subject to Lien prior to the refinancing; and

             (xi)    other Liens granted to secure Indebtedness and Guarantees
       made by the Borrower or any of its Subsidiaries in an aggregate amount of
       not more than $50,000,000.

       (c) Consolidation, Merger. The Borrower will not, and will not permit any
Subsidiary to, consolidate with or merge into or with any other corporation, or
sell, transfer, lease or sell and lease back or otherwise dispose of all or
substantially all of its assets to any Person, without prior written consent of
the Lenders, except for (i) the voluntary liquidation or dissolution of any
wholly-owned Subsidiary into another Subsidiary or into the Borrower, the merger
of any Person with a Subsidiary, provided that after giving effect to such
merger, such Subsidiary remains a "Subsidiary" as defined herein, or the merger
of any Subsidiary into another Subsidiary or into the Borrower provided that in
the case of any such merger into the Borrower, the Borrower is the surviving
corporation and (ii) the sale, transfer, lease or sale and lease back or other
disposition of all or substantially all of the assets of one or more
Subsidiaries not to exceed in any calendar year an aggregate total of 10% of the
consolidated assets of the Borrower and the Consolidated Subsidiaries.

                                       30

<PAGE>

             (d)     Transactions with Affiliates. The Borrower will not, and
         will not permit any Significant Subsidiary to, enter into, or cause,
         suffer or permit to exist any transaction, arrangement or contract with
         any of its Affiliates (except for Significant Subsidiaries) which would
         not be entered into by a prudent Person in the position of the Borrower
         or such Subsidiary, or which is on terms which are not on an
         arms-length basis.

             (e)     Sale or Discount of Receivables. The Borrower will not,
         and will not permit any Subsidiary to, directly or indirectly, sell
         with recourse any of its notes or accounts receivable in excess of
         $200,000,000 in the aggregate at any one time, other than those arising
         from the export outside of the United States of goods or services.

             (f)     Dividends. The Borrower shall not pay any dividends to its
         respective shareholders upon the occurrence, or during the continuance
         of, any Default. No dividend shall be paid by Borrower other than in
         accordance with all applicable provisions of law including, without
         limitation, the Delaware General Corporation Law, as amended.

             (g)     Inconsistent Agreements. The Borrower will not, and will
         not permit any Subsidiary to, enter into any agreement containing any
         provision which would be violated or breached by any borrowing by the
         Borrower made hereunder or by the performance by the Borrower or any
         other Loan Party of their respective obligations hereunder or under any
         Loan Document.

             (h)     Advances, Loans and Investments. The Borrower will not,
         and will not permit any Subsidiary to, make or permit to remain
         outstanding any loan or advance to, or own, purchase or acquire any
         stock, obligations or securities of, or any other interest in, or make
         any capital contribution to, any Person, except:

                     (i)    advances or extensions of credit on terms customary
             in the industry involved in the form of accounts or other
             receivables incurred, and investments, Advances and advances made
             in settlement of such accounts receivable, all in the ordinary
             course of business;

                     (ii)   Permitted Investments;

                     (iii)  investments, loans or advances to or in the Borrower
                            or in any Subsidiary;

                     (iv)   loans or advances to employees of the Borrower or
             any Subsidiary in the ordinary course of their respective
             businesses, consistent with past practices, not to exceed
             $1,000,000 in aggregate amount at any time outstanding;

                     (v)    investments customarily used in the management of
             employee benefit trust funds; and

                     (vi)   other investments not exceeding $100,000,000 in the
             aggregate at any time outstanding.

             (i)     Guaranties. Except as described in Item 5.02(i)
         ("Guaranties") of the Disclosure Schedule, neither the Borrower nor any
         Subsidiary will enter into any Guaranty prior to the Termination Date,
         except for

                     (i)    Guaranties relating to operating and capital leases
             on which the Borrower or such Subsidiary is lessee;

                     (ii)   any Subsidiary Guaranty;

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<PAGE>

                           (iii)  Guaranties (other than Guaranties described in
                  clause (ii) of this Section 5.02(i) and Guaranties described
                  in Item 5.02(i) of the Disclosure Schedule) not to exceed
                  $50,000,000 in aggregate amount at any time outstanding of
                  Indebtedness for Borrowed Money;

                           (iv)   contingent obligations arising or existing as
                  the result of the sale or other disposition of assets;

                           (v)    Guaranties by the Borrower of any Indebtedness
                  for Borrowed Money of any Subsidiary permitted under Section
                  5.02(a);

                           (vi)   Guaranties by the Borrower not to exceed
                  $50,000,000 in aggregate amount at any time outstanding of any
                  obligations of Affiliates other than Indebtedness for Borrowed
                  Money;

                           (vii)  Guarantees by the Borrower or any Subsidiary
                  of any obligation of the Borrower, any Subsidiary or other
                  Guarantor incurred or existing in the ordinary course of
                  business, consistent with past practice and not to secure
                  Indebtedness for Borrowed Money other than Commercial Paper
                  Indebtedness, such as in connection with workers'
                  compensation, unemployment insurance or other forms of
                  governmental insurance or benefits, or to secure performance
                  of tenders, statutory obligations, leases and contracts
                  entered into in the ordinary course of business or to secure
                  obligations on surety or appeal bonds;

                           (viii) Guarantees relating to Commercial Paper
                  Indebtedness; and

                           (ix)   Guarantees by any Subsidiary of any obligation
                  of the Borrower provided that such Subsidiary has duly
                  executed and delivered a Subsidiary Guaranty.

                  (j)      Securities. The Borrower will not, and will not
         permit any Subsidiary to, make any distributions, redemptions,
         prepayments, defeasances or repurchases of its securities upon the
         occurrence or during the continuance of any Default. The Borrower will
         not permit any Significant Subsidiary to issue any capital stock to any
         Person other than any other Significant Subsidiary or the Borrower.

                  (k)      Business Activities. The Borrower will not, and will
         not permit any Significant Subsidiary to:

                           (i)    operate its business other than in the
                  ordinary and usual course; and

                           (ii)   engage in any type of business except the
                  businesses of the type or substantially related to the type so
                  operated by the Borrower or such Significant Subsidiary on the
                  Effective Date.

                  (l)      Funded Debt Ratio. The Borrower shall maintain a
         ratio of the Borrower's total Indebtedness for Borrowed Money as at the
         last day of each calendar quarter to total earnings for the last four
         consecutive complete calendar quarters (before interest, taxes,
         depreciation and amortization and excluding any extraordinary gains or
         losses) of not more than 3.25:1 until December 31, 2002 and 3.0:1
         thereafter.

                  (m)      Interest Coverage Ratio. The Borrower shall maintain
         a ratio of the Borrower's total earnings for the last four consecutive
         complete calendar quarters (before interest, taxes, depreciation and
         amortization and excluding any extraordinary gains or losses) to the
         total interest payable on, and amortization of debt discount in respect
         of, all Indebtedness for Borrowed Money for the last four consecutive
         complete calendar quarters of not less than 4.5:1.

                                   ARTICLE VI

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<PAGE>

                                EVENTS OF DEFAULT

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

          (a)  Non-Payment of Liabilities. The Borrower shall default in the
     payment or prepayment when due, whether at stated maturity, by
     acceleration, or otherwise, of any principal of any Advance, or the
     Borrower shall default (and such default shall continue unremedied for a
     period of three days) in the payment when due, whether at stated maturity,
     by acceleration, or otherwise, of interest on any Advance, of any fee or of
     any other Liability.

          (b)  Non-Performance of Certain Covenants. The Borrower shall default
     in the due performance and observance of any of its obligations under
     Section 5.01 of this Agreement and such default shall continue unremedied
     for 10 days after notice thereof shall have been given to the Borrower by
     the Agent or any Lender or the Borrower shall default in the due
     performance and observance (unless such default is capable of remedy and is
     remedied to the satisfaction of the Required Lenders within 10 days of such
     default) of any of its obligations under Section 5.02 of this Agreement.

          (c)  Certain Defaults on Other Indebtedness for Borrowed Money. Any
     default shall occur under the terms applicable to any Indebtedness for
     Borrowed Money outstanding in a principal amount exceeding individually or
     in the aggregate $25,000,000 of the Borrower or any Significant Subsidiary
     representing any borrowing or financing or arising under any other lease or
     material agreement, and such default shall:

               (i)   consist of the failure to pay  Indebtedness  for Borrowed
          Money at the maturity thereof; or

               (ii)  continue without being cured or waived (so long as such
          cure or waiver did not involve any payment of principal of such
          Indebtedness for Borrowed Money) for a period of time sufficient to
          permit acceleration of Indebtedness for Borrowed Money.

          (d)  Bankruptcy, Insolvency. The Borrower or any Significant
     Subsidiary shall become insolvent or generally fail to pay, or admit in
     writing its inability to pay, debts as they become due; or the Borrower or
     any Significant Subsidiary shall apply for, consent to, or acquiesce in,
     the appointment of a trustee, receiver, sequestrator or other custodian for
     the Borrower or such Significant Subsidiary or any property of any thereof,
     or make a general assignment for the benefit of creditors; or, in the
     absence of such application, consent or acquiescence, a trustee, receiver,
     sequestrator or other custodian shall be appointed for the Borrower or any
     Significant Subsidiary or for a substantial part of the property of any
     thereof and not be discharged within 60 days; or any bankruptcy,
     reorganization, debt arrangement, or other case or proceeding under any
     bankruptcy or insolvency law, or any dissolution, winding up or liquidation
     proceeding, shall be commenced in respect of the Borrower or any
     Significant Subsidiary, and, if such case or proceeding is not commenced by
     the Borrower or such Significant Subsidiary, such case or proceeding shall
     be consented to or acquiesced in by the Borrower or such Significant
     Subsidiary or shall result in the entry of an order for relief or shall
     remain for 60 days undismissed; or the Borrower or any Significant
     Subsidiary shall take any corporate action to authorize, or in furtherance
     of, any of the foregoing.

          (e)  Control of the Borrower. Any Change in Control shall occur on or
     after the Effective Date.

          (f)  Non-Performance of Other Obligations. Any Loan Party shall
     default in the due performance and observance of any other agreement,
     applicable to it, contained in this Agreement or in any other Loan
     Document, and such default shall continue unremedied for a period of 30
     days after notice thereof shall have been given to the Borrower by the
     Agent or any Lender.

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<PAGE>

          (g)  Breach of Representation or Warranty. Any representation or
      warranty of any Loan Party in any Loan Document or in any writing
      furnished after the date of this Agreement by or on behalf of any Loan
      Party for the purposes of or in connection with this Agreement is or shall
      be incorrect in any material respect when made or deemed made.

          (h)  Pension Plans. Any of the following events shall occur with
      respect to any Pension Plan

               (i)   the institution of any steps by the Borrower, any
      Subsidiary, any member of the Controlled Group of any of them or any
      other Person to terminate a Pension Plan if, as a result of such
      termination, the Borrower or any such member could be required to make
      a contribution to such Pension Plan, or could reasonably expect to
      incur a liability or obligation, in excess of $25,000,000; or

               (ii)  a contribution failure occurs with respect to any Pension
          Plan sufficient to give rise to a Lien under Section 302(f) of ERISA.

          (i)   Judgments. A final judgment to the extent not covered by
      insurance that, with other such outstanding final judgments against the
      Borrower and the Subsidiaries exceeds an aggregate of $10,000,000 shall
      be rendered against the Borrower or any Subsidiary and if, within 60 days
      after entry thereof, such judgment shall not have been discharged or
      otherwise satisfied or execution thereof stayed pending appeal, or if,
      within 60 days after the expiration of any such stay, such judgment shall
      not have been discharged or otherwise satisfied.

          (j)  Subsidiary Guaranty and Subordination Agreement. The Subsidiary
      Guaranty or any Subordination Agreement shall cease to be in full force
      and effect or any Loan Party or any Person by, through or on behalf of
      any Loan Party shall contest in any manner in writing the validity,
      binding nature or enforceability of either the Subsidiary Guaranty or any
      Subordination Agreement.

          (k)  Multiemployer Plans. The Borrower, any Subsidiary or any member
      of the Controlled Group of any of them shall incur, or shall be reasonably
      likely to incur liability in excess of $10,000,000 in the aggregate as a
      result of one or more of the following: (i) the partial or complete
      withdrawal of the Borrower, any Subsidiary or any member of the Controlled
      Group of any of them from a Multiemployer Plan; or (ii) the reorganization
      or termination of a Multiemployer Plan.

then, and in any such event, the Agent (i) shall at the request, or may with the
consent, of the Required Lenders, by notice to the Borrower, declare the
obligation of each Lender to make Advances (other than Advances by an Issuing
Bank or a Lender pursuant to Section 2.02(b)) and of the Issuing Banks to issue
Letters of Credit to be terminated, whereupon the same shall forthwith
terminate, and (ii) shall at the request, or may with the consent, of the
Required Lenders, by notice to the Borrower, declare the Advances, all interest
thereon and all other amounts payable under this Agreement to be forthwith due
and payable, whereupon the Advances, all such interest and all such amounts
shall become and be forthwith due and payable, without presentment, demand,
protest or further notice of any kind, all of which are hereby expressly waived
by the Borrower; provided, however, that in the event of an actual or deemed
entry of an order for relief with respect to the Borrower under the Federal
Bankruptcy Code, (A) the obligation of each Lender to make Advances (other than
Advances by an Issuing Bank or a Lender pursuant to Section 2.02(b)) and of the
Issuing Banks to issue Letters of Credit shall automatically be terminated and
(B) the Advances, all such interest and all such amounts shall automatically
become and be due and payable, without presentment, demand, protest or any
notice of any kind, all of which are hereby expressly waived by the Borrower.

          SECTION 6.02. Actions in Respect of the Letters of Credit upon
Default. If any Event of Default shall have occurred and be continuing, the
Agent may with the consent, or shall at the request, of the Required Lenders,
irrespective of whether it is taking any of the actions described in Section
6.01 or otherwise, make demand upon the Borrower to, and forthwith upon such
demand the Borrower will, (a) pay to the Agent on behalf of the Lenders in same
day funds at the Agent's office designated in such demand, for deposit in the
L/C Cash Collateral Account, an amount equal to the aggregate Available Amount
of all Letters of Credit then outstanding or (b) make such other arrangements in
respect of the outstanding Letters of Credit as shall be acceptable to the
Required Lenders. If at any time the Agent determines that any funds held in the
L/C Cash Collateral Account are subject to

                                       34

<PAGE>

any right or claim of any Person other than the Agent and the Lenders or that
the total amount of such funds is less than the aggregate Available Amount of
all Letters of Credit, the Borrower will, forthwith upon demand by the Agent,
pay to the Agent, as additional funds to be deposited and held in the L/C Cash
Collateral Account, an amount equal to the excess of (a) such aggregate
Available Amount over (b) the total amount of funds, if any, then held in the
L/C Cash Collateral Account that the Agent determines to be free and clear of
any such right and claim. Upon the drawing of any Letter of Credit, to the
extent funds are on deposit in the L/C Cash Collateral Account, such funds shall
be applied to reimburse the Issuing Banks to the extent permitted by applicable
law.

                                   ARTICLE VII

                                    THE AGENT

          SECTION 7.01. Authorization and Action. Each Lender (in its capacities
as a Lender and Issuing Bank (as applicable)) hereby appoints and authorizes the
Agent to take such action as agent on its behalf and to exercise such powers and
discretion under this Agreement as are delegated to the Agent by the terms
hereof, together with such powers and discretion as are reasonably incidental
thereto. As to any matters not expressly provided for by this Agreement
(including, without limitation, enforcement or collection of the Notes), the
Agent shall not be required to exercise any discretion or take any action, but
shall be required to act or to refrain from acting (and shall be fully protected
in so acting or refraining from acting) upon the instructions of the Required
Lenders, and such instructions shall be binding upon all Lenders and all holders
of Notes; provided, however, that the Agent shall not be required to take any
action that exposes the Agent to personal liability or that is contrary to this
Agreement or applicable law. The Agent agrees to give to each Lender prompt
notice of each notice given to it by the Borrower pursuant to the terms of this
Agreement.

          SECTION 7.02. Agent's Reliance, Etc. Neither the Agent nor any of its
directors, officers, agents or employees shall be liable for any action taken or
omitted to be taken by it or them under or in connection with this Agreement,
except for its or their own gross negligence or willful misconduct. Without
limitation of the generality of the foregoing, the Agent: (i) may treat the
Lender that made any Advance as the holder of the Debt resulting therefrom until
the Agent receives and accepts an Assumption Agreement entered into by an
Assuming Lender as provided in Section 2.18 or an Assignment and Acceptance
entered into by such Lender, as assignor, and an Eligible Assignee, as assignee,
as provided in Section 8.07; (ii) may consult with legal counsel (including
counsel for the Borrower), independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be
taken in good faith by it in accordance with the advice of such counsel,
accountants or experts; (iii) makes no warranty or representation to any Lender
and shall not be responsible to any Lender for any statements, warranties or
representations (whether written or oral) made in or in connection with this
Agreement; (iv) shall not have any duty to ascertain or to inquire as to the
performance, observance or satisfaction of any of the terms, covenants or
conditions of this Agreement on the part of the Borrower or the existence at any
time of any Default or to inspect the property (including the books and records)
of the Borrower; (v) shall not be responsible to any Lender for the due
execution, legality, validity, enforceability, genuineness, sufficiency or value
of, or the perfection or priority of any lien or security interest created or
purported to be created under or in connection with, this Agreement or any other
instrument or document furnished pursuant hereto; and (vi) shall incur no
liability under or in respect of this Agreement by acting upon any notice,
consent, certificate or other instrument or writing (which may be by telecopier,
telegram or telex) believed by it to be genuine and signed or sent by the proper
party or parties.

          SECTION 7.03. Citibank and Affiliates. With respect to its Commitment,
the Advances made by it and the Note issued to it, Citibank shall have the same
rights and powers under this Agreement as any other Lender and may exercise the
same as though it were not the Agent; and the term "Lender" or "Lenders" shall,
unless otherwise expressly indicated, include Citibank in its individual
capacity. Citibank and its Affiliates may accept deposits from, lend money to,
act as trustee under indentures of, accept investment banking engagements from
and generally engage in any kind of business with, the Borrower, any of its
Subsidiaries and any Person who may do business with or own securities of the
Borrower or any such Subsidiary, all as if Citibank were not the Agent and
without any duty to account therefor to the Lenders. The Agent shall have no
duty to disclose information obtained or received by it or any of its Affiliates
relating to the Borrower or its Subsidiaries to the extent such information was
obtained or received in any capacity other than as Agent.

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<PAGE>

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

          SECTION 7.05. Indemnification. (a) The Lenders agree to indemnify the
Agent (to the extent not reimbursed by the Borrower), ratably according to the
respective principal amounts of the Advances then owed to each of them (or if no
Advances are at the time outstanding, ratably according to the respective
amounts of their Revolving Credit Commitments), from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever that may be
imposed on, incurred by, or asserted against the Agent in any way relating to or
arising out of this Agreement or any action taken or omitted by the Agent under
this Agreement (collectively, the "Indemnified Costs"), provided that no Lender
shall be liable for any portion of the Indemnified Costs resulting from the
Agent's gross negligence or willful misconduct. Without limitation of the
foregoing, each Lender agrees to reimburse the Agent promptly upon demand for
its ratable share of any out-of-pocket expenses (including reasonable counsel
fees) incurred by the Agent in connection with the preparation, execution,
delivery, administration, modification, amendment or enforcement (whether
through negotiations, legal proceedings or otherwise) of, or legal advice in
respect of rights or responsibilities under, this Agreement, to the extent that
the Agent is not reimbursed for such expenses by the Borrower. In the case of
any investigation, litigation or proceeding giving rise to any Indemnified
Costs, this Section 7.05 applies whether any such investigation, litigation or
proceeding is brought by the Agent, any Lender or a third party.

          (b)  Each Lender severally agrees to indemnify the Issuing Banks (to
the extent not promptly reimbursed by the Borrower) from and against such
Lender's ratable share (determined as provided below) of any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever that may be
imposed on, incurred by, or asserted against any such Issuing Bank in any way
relating to or arising out of this Agreement or any action taken or omitted by
such Issuing Bank hereunder or in connection herewith; provided, however, that
no Lender shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from such Issuing Bank's gross negligence or willful
misconduct as found in a final, non-appealable judgment by a court of competent
jurisdiction. Without limitation of the foregoing, each Lender agrees to
reimburse any such Issuing Bank promptly upon demand for its ratable share of
any costs and expenses (including, without limitation, fees and expenses of
counsel) payable by the Borrower under Section 8.04, to the extent that such
Issuing Bank is not promptly reimbursed for such costs and expenses by the
Borrower.

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

          SECTION 7.06. Successor Agent. The Agent may resign at any time by
giving written notice thereof to the Lenders and the Borrower and may be removed
at any time with or without cause by the Required

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<PAGE>

Lenders. Upon any such resignation or removal, the Required Lenders shall have
the right to appoint a successor Agent. If no successor Agent shall have been so
appointed by the Required Lenders, and shall have accepted such appointment,
within 30 days after the retiring Agent's giving of notice of resignation or the
Required Lenders' removal of the retiring Agent, then the retiring Agent may, on
behalf of the Lenders, appoint a successor Agent, which shall be a commercial
Lender organized under the laws of the United States of America or of any State
thereof and having a combined capital and surplus of at least $500,000,000. Upon
the acceptance of any appointment as Agent hereunder by a successor Agent, such
successor Agent shall thereupon succeed to and become vested with all the
rights, powers, discretion, privileges and duties of the retiring Agent, and the
retiring Agent shall be discharged from its duties and obligations under this
Agreement. After any retiring Agent's resignation or removal hereunder as Agent,
the provisions of this Article VII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Agent under this Agreement.

          SECTION 7.07. Other Agents. Each Lender hereby acknowledges that
neither the documentation agent nor any other Lender designated as any "Agent"
on the signature pages hereof has any liability hereunder other than in its
capacity as a Lender.

          SECTION 7.08. Acknowledgements. The Borrower and each Guarantor
hereby acknowledge that neither the Agent nor the Lead Arranger nor any Arranger
nor any Lender has any fiduciary relationship with the Borrower or any Guarantor
under this Agreement, and the relationship under this Agreement between the
Lenders, on one hand, and the Borrower and Guarantors, on the other hand, is
solely that of debtor and creditor.

                                  ARTICLE VIII

                                  MISCELLANEOUS

          SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision
of this Agreement or the Notes, nor consent to any departure by the Borrower
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Required Lenders, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, however, that no amendment, waiver or consent shall, unless in
writing and signed by all the Lenders, do any of the following: (a) waive any of
the conditions specified in Section 3.01, (b) increase the Commitments of the
Lenders, (c) reduce the principal of, or interest on, the Advances or any fees
or other amounts payable hereunder, (d) postpone any date fixed for any payment
of principal of, or interest on, the Advances or any fees or other amounts
payable hereunder, (e) change the percentage of the Revolving Credit
Commitments, the aggregate Available Amount of outstanding Letters of Credit or
of the aggregate unpaid principal amount of the Advances, or the number of
Lenders, that shall be required for the Lenders or any of them to take any
action hereunder, (f) release any Significant Subsidiary from its obligations
under the Subsidiary Guaranty or release any Person from its obligations under
the Subordination Agreement (provided that no consent of the Lenders shall be
required in connection with the any release of a Subsidiary from its obligations
under the Subsidiary Guaranty or the Subordination Agreement if such Subsidiary
is not listed on Schedule II hereto (as such Schedule is amended from time to
time in accordance with Section 5.01(a)(i)(E)) or (g) amend this Section 8.01;
and provided further that no amendment, waiver or consent shall, unless in
writing and signed by the Agent in addition to the Lenders required above to
take such action, affect the rights or duties of the Agent under this Agreement
or any Note; and provided further that no amendment, waiver or consent shall,
unless in writing and signed by the Issuing Banks in addition to the Lenders
required above to take such action, affect the rights or obligation of the
Issuing Banks under this Agreement.

          SECTION 8.02. Notices, Etc. All notices and other communications
provided for hereunder shall be in writing (including telecopier, telegraphic or
telex communication) and mailed, telecopied, telegraphed, telexed or delivered,
if to the Borrower, at its address at CONSOL Plaza, 1800 Washington Road,
Pittsburgh, Pennsylvania 15241-1421, Attention: Treasury (Fax. No. 412 831-4151;
if to any Initial Lender, at its Domestic Lending Office specified opposite its
name on Schedule I hereto; if to any other Lender, at its Domestic Lending
Office specified in the Assumption Agreement or the Assignment and Acceptance
pursuant to which it became a Lender; and if to the Agent, at its address at Two
Penns Way, New Castle, Delaware 19720, Attention: Bank Loan Syndications
Department; or, as to the Borrower or the Agent, at such other address as shall
be designated by such party in a written notice to the other parties and, as to
each other party, at such other address as shall be designated by such party in
a written notice to the Borrower and the Agent. All such notices and
communications shall, when mailed, telecopied, telegraphed or telexed, be
effective when deposited in the mails, telecopied, delivered to the telegraph

                                       37

<PAGE>

company or confirmed by telex answerback, respectively, except that notices and
communications to the Agent pursuant to Article II, III or VII shall not be
effective until received by the Agent. Delivery by telecopier of an executed
counterpart of any amendment or waiver of any provision of this Agreement or the
Notes or of any Exhibit hereto to be executed and delivered hereunder shall be
effective as delivery of a manually executed counterpart thereof.

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

          SECTION 8.04. Costs and Expenses. (a) The Borrower agrees to pay on
demand all costs and expenses of the Agent in connection with the preparation,
execution, delivery, administration, modification and amendment of this
Agreement, the Notes and the other documents to be delivered hereunder,
including, without limitation, (A) all due diligence, syndication (including
printing, distribution and bank meetings), transportation, computer,
duplication, appraisal, consultant, and audit expenses and (B) the reasonable
fees and expenses of counsel for the Agent with respect thereto and with respect
to advising the Agent as to its rights and responsibilities under this
Agreement. The Borrower further agrees to pay on demand all costs and expenses
of the Agent and the Lenders, if any (including, without limitation, reasonable
counsel fees and expenses), in connection with the enforcement (whether through
negotiations, legal proceedings or otherwise) of this Agreement, the Notes and
the other documents to be delivered hereunder, including, without limitation,
reasonable fees and expenses of counsel for the Agent and each Lender in
connection with the enforcement of rights under this Section 8.04(a).

          (b)  The Borrower agrees to indemnify and hold harmless the Agent and
each Lender and each of their Affiliates and their officers, directors,
employees, agents and advisors (each, an "Indemnified Party") from and against
any and all claims, damages, losses, liabilities and expenses (including,
without limitation, reasonable fees and expenses of counsel) incurred by or
asserted or awarded against any Indemnified Party, in each case arising out of
or in connection with or by reason of (including, without limitation, in
connection with any investigation, litigation or proceeding or preparation of a
defense in connection therewith) (i) the Notes, this Agreement, any of the
transactions contemplated herein or the actual or proposed use of the proceeds
of the Advances or (ii) the actual or alleged presence of Hazardous Materials on
any property of the Borrower or any of its Subsidiaries or any Environmental
Action relating in any way to the Borrower or any of its Subsidiaries, except to
the extent such claim, damage, loss, liability or expense is found in a final,
non-appealable judgment by a court of competent jurisdiction to have resulted
from such Indemnified Party's gross negligence or willful misconduct. In the
case of an investigation, litigation or other proceeding to which the indemnity
in this Section 8.04(b) applies, such indemnity shall be effective whether or
not such investigation, litigation or proceeding is brought by the Borrower, its
directors, equityholders or creditors or an Indemnified Party or any other
Person, whether or not any Indemnified Party is otherwise a party thereto and
whether or not the transactions contemplated hereby are consummated. The
Borrower also agrees not to assert any claim for special, indirect,
consequential or punitive damages against the Agent, any Lender, any of their
Affiliates, or any of their respective directors, officers, employees, attorneys
and agents, on any theory of liability, arising out of or otherwise relating to
the Notes, this Agreement, any of the transactions contemplated herein or the
actual or proposed use of the proceeds of the Advances.

          (c)  If any payment of principal of, or Conversion of, any Eurodollar
Rate Advance is made by the Borrower to or for the account of a Lender other
than on the last day of the Interest Period for such Advance, as a result of a
payment or Conversion pursuant to Section 2.08(d) or (e), 2.10 or 2.12,
acceleration of the maturity of the Notes pursuant to Section 6.01 or for any
other reason, or by an Eligible Assignee to a Lender other than on the last day
of the Interest Period for such Advance upon an assignment of rights and
obligations under this Agreement pursuant to Section 8.07 as a result of a
demand by the Borrower pursuant to Section 8.07(a), the Borrower shall, upon
demand by such Lender (with a copy of such demand to the Agent), pay to the
Agent for the account of such Lender any amounts required to compensate such
Lender for any additional losses, costs or expenses that it may reasonably incur
as a result of such payment or Conversion, including, without limitation, any
loss (including loss of anticipated profits), cost or expense incurred by reason
of the liquidation or reemployment of deposits or other funds acquired by any
Lender to fund or maintain such Advance.

                                       38

<PAGE>

          (d)  Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in
Sections 2.11, 2.14 and 8.04 shall survive the payment in full of principal,
interest and all other amounts payable hereunder and under the Notes.

          SECTION 8.05. Right of Set-off. Upon (i) the occurrence and during the
continuance of any Event of Default and (ii) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the Agent to
declare the Notes due and payable pursuant to the provisions of Section 6.01,
each Lender and each of its Affiliates is hereby authorized at any time and from
time to time, to the fullest extent permitted by law, to set off and apply any
and all deposits (general or special, time or demand, provisional or final) at
any time held and other indebtedness at any time owing by such Lender or such
Affiliate to or for the credit or the account of the Borrower against any and
all of the obligations of the Borrower now or hereafter existing under this
Agreement and the Note held by such Lender, whether or not such Lender shall
have made any demand under this Agreement or such Note and although such
obligations may be unmatured. Each Lender agrees promptly to notify the Borrower
after any such set-off and application, provided that the failure to give such
notice shall not affect the validity of such set-off and application. The rights
of each Lender and its Affiliates under this Section are in addition to other
rights and remedies (including, without limitation, other rights of set-off)
that such Lender and its Affiliates may have.

          SECTION 8.06. Binding Effect. This Agreement shall become effective
(other than Section 2.01, which shall only become effective upon satisfaction of
the conditions precedent set forth in Section 3.01) when it shall have been
executed by the Borrower and the Agent and when the Agent shall have been
notified by each Initial Lender that such Initial Lender has executed it and
thereafter shall be binding upon and inure to the benefit of the Borrower, the
Agent and each Lender and their respective successors and assigns, except that
the Borrower shall not have the right to assign its rights hereunder or any
interest herein without the prior written consent of the Lenders.

          SECTION 8.07. Assignments and Participations. (a) Each Lender may and,
if demanded by the Borrower (following a demand by such Lender pursuant to
Section 2.11 or 2.14) upon at least five Business Days' notice to such Lender
and the Agent, will assign to one or more Persons all or a portion of its rights
and obligations under this Agreement (including, without limitation, all or a
portion of its Revolving Credit Commitment, the Advances owing to it and the
Note or Notes held by it); provided, however, that (i) each such assignment
shall be of a constant, and not a varying, percentage of all rights and
obligations under this Agreement, (ii) except in the case of an assignment to a
Person that, immediately prior to such assignment, was a Lender or an assignment
of all of a Lender's rights and obligations under this Agreement, the amount of
the Revolving Credit Commitment of the assigning Lender being assigned pursuant
to each such assignment (determined as of the date of the Assignment and
Acceptance with respect to such assignment) shall in no event be less than
$10,000,000 or an integral multiple of $1,000,000 in excess thereof unless the
Borrower and the Agent otherwise agree, (iii) each assignee (other than an
Affiliate of the assigning Lender) must be acceptable to the Borrower and the
Agent, whose consent shall not be unreasonably withheld, and the Agent's and the
Borrower's decisions respecting the same shall be made promptly, provided that
the Borrower's consent shall not be required if an Event of Default has occurred
and is continuing, (iv) each such assignment made as a result of a demand by the
Borrower pursuant to this Section 8.07(a) shall be arranged by the Borrower
after consultation with the Agent and shall be either an assignment of all of
the rights and obligations of the assigning Lender under this Agreement or an
assignment of a portion of such rights and obligations made concurrently with
another such assignment or other such assignments that together cover all of the
rights and obligations of the assigning Lender under this Agreement, (v) no
Lender shall be obligated to make any such assignment as a result of a demand by
the Borrower pursuant to this Section 8.07(a) unless and until such Lender shall
have received one or more payments from either the Borrower or one or more
Eligible Assignees in an aggregate amount at least equal to the aggregate
outstanding principal amount of the Advances owing to such Lender, together with
accrued interest thereon to the date of payment of such principal amount and all
other amounts payable to such Lender under this Agreement, and (vi) the parties
to each such assignment shall execute and deliver to the Agent, for its
acceptance and recording in the Register, an Assignment and Acceptance, together
with any Note subject to such assignment and a processing and recordation fee of
$3,500 payable by the parties to each such assignment, provided, however, that
(x) in the case of each assignment made as a result of a demand by the Borrower,
such recordation fee shall be payable by the Borrower except that no such
recordation fee shall be payable in the case of an assignment made at the
request of the Borrower to an Eligible Assignee that is an existing Lender and
(y) no such recordation fee shall be payable in the case of an assignment made
to an Affiliate of the assigning Lender. Upon such execution, delivery,
acceptance and recording, from and after the effective date

                                       39

<PAGE>

specified in each Assignment and Acceptance, (x) the assignee thereunder shall
be a party hereto and, to the extent that rights and obligations hereunder have
been assigned to it pursuant to such Assignment and Acceptance, have the rights
and obligations of a Lender hereunder and (y) the Lender assignor thereunder
shall, to the extent that rights and obligations hereunder have been assigned by
it pursuant to such Assignment and Acceptance, relinquish its rights (other than
its rights under Section 2.11, 2.14 and 8.04 to the extent any claim thereunder
relates to an event arising prior such assignment) and be released from its
obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender's rights
and obligations under this Agreement, such Lender shall cease to be a party
hereto).

          (b)  By executing and delivering an Assignment and Acceptance, the
Lender assignor thereunder and the assignee thereunder confirm to and agree with
each other and the other parties hereto as follows: (i) other than as provided
in such Assignment and Acceptance, such assigning Lender makes no representation
or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of, or the perfection or priority of any lien or security interest created
or purported to be created under or in connection with, this Agreement or any
other instrument or document furnished pursuant hereto; (ii) such assigning
Lender makes no representation or warranty and assumes no responsibility with
respect to the financial condition of the Borrower or the performance or
observance by the Borrower of any of its obligations under this Agreement or any
other instrument or document furnished pursuant hereto; (iii) such assignee
confirms that it has received a copy of this Agreement, together with copies of
the financial statements referred to in Section 4.01 and such other documents
and information as it has deemed appropriate to make its own credit analysis and
decision to enter into such Assignment and Acceptance; (iv) such assignee will,
independently and without reliance upon 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 Agreement; (v) such assignee confirms that it is an
Eligible Assignee; (vi) such assignee appoints and authorizes the Agent to take
such action as agent on its behalf and to exercise such powers and discretion
under this Agreement as are delegated to the Agent by the terms hereof, together
with such powers and discretion as are reasonably incidental thereto; and (vii)
such assignee agrees that it will perform in accordance with their terms all of
the obligations that by the terms of this Agreement are required to be performed
by it as a Lender or as an Issuing Bank, as the case may be.

          (c)  Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee representing that it is an Eligible Assignee,
together with any Note or Notes subject to such assignment, the Agent shall, if
such Assignment and Acceptance has been completed and is in substantially the
form of Exhibit C hereto, (i) accept such Assignment and Acceptance, (ii) record
the information contained therein in the Register and (iii) give prompt notice
thereof to the Borrower.

          (d)  The Agent shall maintain at its address referred to in Section
8.02 a copy of each Assumption Agreement and each Assignment and Acceptance
delivered to and accepted by it and a register for the recordation of the names
and addresses of the Lenders and the Commitment of, and principal amount of the
Advances 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 Borrower, 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 Agreement. The Register shall be available for inspection by
the Borrower or any Lender at any reasonable time and from time to time upon
reasonable prior notice.

          (e)  Each Lender may sell participations to one or more banks or other
entities (other than the Borrower or any of its Affiliates) in or to all or a
portion of its rights and obligations under this Agreement (including, without
limitation, all or a portion of its Commitment, the Advances owing to it and any
Note or Notes held by it); provided, however, that (i) such Lender's obligations
under this Agreement (including, without limitation, its Revolving Credit
Commitment to the Borrower hereunder) shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance
of such obligations, (iii) such Lender shall remain the holder of any such Note
for all purposes of this Agreement, (iv) the Borrower, the Agent and the other
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under this Agreement and
(v) no participant under any such participation shall have any right to approve
any amendment or waiver of any provision of this Agreement or any Note, or any
consent to any departure by the Borrower therefrom, except to the extent that
such amendment, waiver or consent would reduce the principal of, or

                                       40

<PAGE>

interest on, the Notes or any fees or other amounts payable hereunder, in each
case to the extent subject to such participation, or postpone any date fixed for
any payment of principal of, or interest on, the Notes or any fees or other
amounts payable hereunder, in each case to the extent subject to such
participation.

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

              (g) Each Issuing Bank may assign to an Eligible Assignee its
rights and obligations or any portion of the undrawn Letter of Credit Commitment
at any time; provided, however, that (i) the amount of the Letter of Credit
Commitment of the assigning Issuing Bank being assigned pursuant to each such
assignment (determined as of the date of the Assignment and Acceptance with
respect to such assignment) shall in no event be less than $1,000,000 or an
integral multiple of $1,000,000 in excess thereof, and (ii) the parties to each
such assignment shall execute and deliver to the Agent, for its acceptance and
recording in the Register, an Assignment and Acceptance, together with a
processing and recordation fee of $3,500.

              (h) Notwithstanding any other provision set forth in this
Agreement, any Lender may at any time create a security interest in all or any
portion of its rights under this Agreement (including, without limitation, the
Advances owing to it and any Note or Notes held by it) in favor of any Federal
Reserve Bank in accordance with Regulation A of the Board of Governors of the
Federal Reserve System.

              SECTION 8.08. Confidentiality. Neither the Agent nor any Lender
shall disclose any Confidential Information to any other Person without the
consent of the Borrower, other than (a) to the Agent's or such Lender's
Affiliates and their officers, directors, employees, agents and advisors and, as
contemplated by Section 8.07(f), to actual or prospective assignees and
participants, and then only on a confidential basis, (b) as required by any law,
rule or regulation or judicial process, (c) as requested or required by any
state, federal or foreign authority or examiner regulating banks or banking or
other regulator or auditor and (d) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement
or the enforcement of rights hereunder.

              SECTION 8.09. Governing Law. This Agreement and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New
York.

              SECTION 8.10. Execution in Counterparts. This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Agreement by telecopier shall be effective as delivery of a manually executed
counterpart of this Agreement.

              SECTION 8.11. Jurisdiction, Etc. (a) Each of the parties hereto
hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of any New York State court or federal court of
the United States of America sitting in New York City, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to this
Agreement or the Notes, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and
determined in any such New York State court or, to the extent permitted by law,
in such federal court. In addition, if any Indemnified Party is named as a
defendant or other party in connection herewith or with the Advances in another
jurisdiction or proceeding, such Indemnified Party may name the Borrower as a
defendant or third party defendant in any such proceeding, and the Borrower
hereby consents to jurisdiction and service of process by mail in any such
jurisdiction or proceeding. The Borrower hereby agrees that service of process
in any such action or proceeding brought in the any such New York State court or
in such federal court may be made upon CT Corporation System at its offices at
1633 Broadway, New York, New York 10019 (the "Process Agent") and the Borrower
hereby irrevocably appoints the Process Agent its authorized agent to accept
such service of process, and agrees that the failure of the Process Agent to
give any notice of any

                                       41

<PAGE>

such service shall not impair or affect the validity of such service or of any
judgment rendered in any action or proceeding based thereon. The Borrower hereby
further irrevocably consents to the service of process in any action or
proceeding in such courts by the mailing thereof by any parties hereto by
registered or certified mail, postage prepaid, to the Borrower at its address
specified pursuant to Section 8.02. Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law. Nothing in this Agreement shall affect any right that any party
may otherwise have to bring any action or proceeding relating to this Agreement
or the Notes in the courts of any jurisdiction.

              (b) Each of the parties hereto irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection that it may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement or the Notes
in any New York State or federal court. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such
court.

              SECTION 8.12. No Liability of the Issuing Banks. The Borrower
assumes all risks of the acts or omissions of any beneficiary or transferee of
any Letter of Credit with respect to its use of such Letter of Credit. Neither
an Issuing Bank nor any of its officers or directors shall be liable or
responsible for: (a) the use that may be made of any Letter of Credit or any
acts or omissions of any beneficiary or transferee in connection therewith; (b)
the validity, sufficiency or genuineness of documents, or of any endorsement
thereon, even if such documents should prove to be in any or all respects
invalid, insufficient, fraudulent or forged; (c) payment by such Issuing Bank
against presentation of documents that do not comply with the terms of a Letter
of Credit, including failure of any documents to bear any reference or adequate
reference to the Letter of Credit; or (d) any other circumstances whatsoever in
making or failing to make payment under any Letter of Credit, except that the
Borrower shall have a claim against such Issuing Bank, and such Issuing Bank
shall be liable to the Borrower, to the extent of any direct, but not
consequential, damages suffered by the Borrower that the Borrower proves were
caused by (i) such Issuing Bank's willful misconduct or gross negligence as
determined in a final, non-appealable judgment by a court of competent
jurisdiction in determining whether documents presented under any Letter of
Credit comply with the terms of the Letter of Credit or (ii) such Issuing Bank's
willful failure to make lawful payment under a Letter of Credit after the
presentation to it of a draft and certificates strictly complying with the terms
and conditions of the Letter of Credit. In furtherance and not in limitation of
the foregoing, such Issuing Bank may accept documents that appear on their face
to be in order, without responsibility for further investigation, regardless of
any notice or information to the contrary.

              SECTION 8.12.5. Severability. If any provision of this Agreement
or the other Loan Documents is held to be illegal, invalid or unenforceable, (a)
the legality, validity and enforceability of the remaining provisions of this
Agreement and the other Loan Documents shall not be affected or impaired thereby
and (b) the parties shall endeavor in good faith negotiations to replace the
illegal, invalid or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the illegal, invalid or
unenforceable provisions. The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

                                       42

<PAGE>

              SECTION 8.13. Waiver of Jury Trial. Each of the Borrower, the
Agent and the Lenders hereby irrevocably waives all right to trial by jury in
any action, proceeding or counterclaim (whether based on contract, tort or
otherwise) arising out of or relating to this Agreement or the Notes or the
actions of the Agent or any Lender in the negotiation, administration,
performance or enforcement thereof.

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

                                              CONSOL ENERGY INC.

                                              By __________________________
                                                  Title:

                                              CITIBANK, N.A.,
                                                  as Agent

                                              By __________________________
                                                  Title:

                              Initial Issuing Bank

                                              PNC BANK, N.A.

                                              By __________________________
                                                  Title:

                                 Initial Lenders
                              Administrative Agent

                                              CITIBANK, N.A.

                                              By __________________________
                                                  Title:

                               Syndication Agents

                                              DRESDNER BANK AG, NEW YORK AND
                                              GRAND CAYMAN BRANCHES

                                              By __________________________
                                                  Title:

                                              By __________________________
                                                  Title:

                                       43

<PAGE>

                                              PNC BANK, N.A.

                                              By __________________________
                                                  Title:

                                 Managing Agents

                                              THE BANK OF NOVA SCOTIA

                                              By __________________________
                                                  Title:

                                              BARCLAYS BANK PLC

                                              By __________________________
                                                  Title:

                                              BAYERISCHE HYPO- UND VEREINSBANK
                                              AG, NEW YORK BRANCH

                                              By __________________________
                                                  Title:

                                              WESTDEUTSCHE LANDESBANK
                                              GIROZENTRALE, NEW YORK BRANCH

                                              By __________________________
                                                  Title:

                                     Lenders

                                              AUSTRALIA AND NEW ZEALAND BANKING
                                              GROUP LIMITED BANK, N.A.

                                              By __________________________
                                                  Title:

                                              NATIONAL CITY BANK

                                              By __________________________
                                                  Title:

                                       44

<PAGE>

                                                                      SCHEDULE I
                                                              CONSOL ENERGY INC.
                                                     THREE YEAR CREDIT AGREEMENT
                                                      APPLICABLE LENDING OFFICES

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
Name of Initial Lender     Revolving         Letter of        Domestic Lending Office          Eurodollar Lending Office
----------------------     ----------        ----------       -----------------------          -------------------------
                           Credit            Credit
                           -------           ------
                           Commitment        Commitment
                           ----------        ----------
-----------------------------------------------------------------------------------------------------------------------------
<S>                        <C>               <C>              <C>                              <C>
Australia and New         $ 22,000,000                        Attn: Tessie Amance/             Attn: Tessie Amance/
Zealand Banking Group                                         Doreen Klingenbeck               Doreen Klingenbeck
Limited                                                       T: 212 801-9744/9726             T: 212 801-9744/9726
                                                              F: 212 536-9244                  F: 212 536-9244
-----------------------------------------------------------------------------------------------------------------------------

Barlcays Bank PLC         $ 27,500,000                        222 Broadway                     222 Broadway
                                                              New York, NY 10038               New York, NY 10038
                                                              Attn: Jesse Adams                Attn: Jesse Adams
                                                              T: 212 412-2470                  T: 212 412-2470
                                                              F: 212 412-5306                  F: 212 412-5306
-----------------------------------------------------------------------------------------------------------------------------
Bayerische Hypo- und      $ 27,500,000                        150 East 42/nd/ Street           150 East 42/nd/ Street
Vereinsbank AG, New York                                      31/st/ Floor                     31/st/ Floor
Branch                                                        New York, NY 10017               New York, NY 10017
                                                              Attn: Tom Taylor                 Attn: Tom Taylor
                                                              T: 212 672-5872                  T: 212 672-5872
                                                              F: 212 672-5529                  F: 212 672-5529
-----------------------------------------------------------------------------------------------------------------------------
Bank of Nova Scotia       $ 27,500,000                        Attn: Demetria January           Attn: Demetria January
                                                              T: 404 877-1578                  T: 404 877-1578
                                                              F: 404 888-8998                  F: 404 888-8998
-----------------------------------------------------------------------------------------------------------------------------
Citibank, N.A.            $ 44,000,000                        Two Penns Way                    Two Penns Way
                                                              New Castle, DE 19720             New Castle, DE 19720
                                                              Attn:  Diane Stewart             Attn: Diane Stewart
                                                              T: 302 894-6035                  T: 302 894-6035
                                                              F: 212 994-0847                  F: 212 994-0847
-----------------------------------------------------------------------------------------------------------------------------
Dresdner Bank AG, New     $ 38,500,000                        1301 Avenue of the Americas      1301 Avenue of the Americas
York and Grand Cayman                                         New York, NY 10019               New York, NY 10019
Branches                                                      Attn: Dominik Rohe               Attn: Dominik Rohe
                                                              T: 212 895-5154                  T: 212 895-5154
                                                              F: 212 429-4817                  F: 212 429-4817
-----------------------------------------------------------------------------------------------------------------------------
National City Bank        $ 13,750,000                        20 Stan Wix Street               20 Stan Wix Street
                                                              Pittsburgh, PA 15222             Pittsburgh, PA 15222
                                                              Attn: Elise Jackson              Attn: Elise Jackson
                                                              T: 412 644-8886                  T: 412 644-8886
                                                              F: 412 644-7555                  F: 412 644-7555
-----------------------------------------------------------------------------------------------------------------------------
PNC Bank, N.A.            $ 38,500,000       $266,750,000     One PNC Plaza                    One PNC Plaza
                                                              3/rd/ Floor                      3/rd/ Floor
                                                              249 Fifth Avenue                 249 Fifth Avenue
                                                              Pittsburgh, PA 15222             Pittsburgh, PA 15222
                                                              Attn: R. Kane Kiester            Attn: R. Kane Kiester
                                                              T: 412 762-4221                  T: 412 762-4221
                                                              F: 412 705-3231                  F: 412 705-3231
-----------------------------------------------------------------------------------------------------------------------------
Westdeutsche Landesbank   $ 27,500,000                        1211 Avenue of the Americas      1211 Avenue of the Americas
Girozentrale, New York                                        New York, NY 10036               New York, NY 10036
Branch                                                        Attn: Dan Palermo                Attn: Dan Palermo
                                                              T: 2121 852-6157                 T: 2121 852-6157
                                                              F: 212 302-7946                  F: 212 302-7946
-----------------------------------------------------------------------------------------------------------------------------
 Total:                   $266,750,000      $266,750,000
</TABLE>

<PAGE>

                                                             EXHIBIT A - FORM OF
                                                                 PROMISSORY NOTE

U.S.$_______________              Dated:  _______________, 200_

          FOR VALUE RECEIVED, the undersigned, CONSOL Energy Inc., a Delaware
corporation (the "Borrower"), HEREBY PROMISES TO PAY without set-off or
counterclaim to the order of _________________________ (the "Lender") for the
account of its Applicable Lending Office on the Termination Date (each as
defined in the Credit Agreement referred to below) the principal sum of
U.S.$[amount of the Lender's Commitment in figures] or, if less, the aggregate
principal amount of the Advances made by the Lender to the Borrower pursuant to
the Three Year Credit Agreement dated as of September 16, 2002 among the
Borrower, the Lender and certain other lenders parties thereto, Dresdner Bank
AG, New York and Grand Cayman Branches and PNC Bank, N.A., as syndication
agents, Salomon Smith Barney Inc., as sole lead arranger and bookrunner, and
Citibank, N.A. as Agent for the Lender and such other lenders (as amended or
modified from time to time, the "Credit Agreement"; the terms defined therein
being used herein as therein defined) outstanding on such date.

          The Borrower promises to pay interest on the unpaid principal amount
of each Advance from the date of such Advance until such principal amount is
paid in full, at such interest rates, and payable at such times, as are
specified in the Credit Agreement.

          Both principal and interest are payable in lawful money of the United
States of America to Citibank, as Agent, at Two Penns Way, New Castle, Delaware
19720, in same day funds. Each Advance owing to the Lender by the Borrower
pursuant to the Credit Agreement, and all payments made on account of principal
thereof, shall be recorded by the Lender and, prior to any transfer hereof,
endorsed on the grid attached hereto which is part of this Promissory Note.

          This Promissory Note is one of the Notes referred to in, and is
entitled to the benefits of, the Credit Agreement. The Credit Agreement, among
other things, (i) provides for the making of Advances by the Lender to the
Borrower from time to time in an aggregate amount not to exceed at any time
outstanding the U.S. dollar amount first above mentioned, the indebtedness of
the Borrower resulting from each such Advance being evidenced by this Promissory
Note and (ii) contains provisions for acceleration of the maturity hereof upon
the happening of certain stated events and also for prepayments on account of
principal hereof prior to the maturity hereof upon the terms and conditions
therein specified.

          This Promissory Note shall be governed by, and construed in accordance
with, the laws of the State of New York.

                                              CONSOL ENERGY INC.

                                              By ___________________
                                                 Title:

<PAGE>

                       ADVANCES AND PAYMENTS OF PRINCIPAL

<TABLE>
<CAPTION>
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                                Amount of
      Date     Amount of     Principal Paid      Unpaid Principal     Notation
                Advance        or Prepaid            Balance           Made By
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<S>            <C>           <C>                 <C>                  <C>
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-------------------------------------------------------------------------------------
</TABLE>

                                       2

<PAGE>

                                                   EXHIBIT B - FORM OF NOTICE OF
                                                                       BORROWING
Citibank, N.A., as Agent
  for the Lenders parties
  to the Credit Agreement
  referred to below
  Two Penns Way
  New Castle, Delaware 19720
                                     [Date]

          Attention: Bank Loan Syndications Department

Ladies and Gentlemen:

          The undersigned, CONSOL Energy Inc., refers to the Three Year Credit
Agreement, dated as of September 16, 2002 (as amended or modified from time to
time, the "Credit Agreement", the terms defined therein being used herein as
therein defined), among the undersigned, certain Lenders parties thereto,
Dresdner Bank AG, New York and Grand Cayman Branches and PNC Bank, N.A., as
syndication agents, Salomon Smith Barney Inc., as sole lead arranger and
bookrunner, and Citibank, N.A., as Agent for said Lenders, and hereby gives you
notice, irrevocably, pursuant to Section 2.02 of the Credit Agreement that the
undersigned hereby requests a Borrowing under the Credit Agreement, and in that
connection sets forth below the information relating to such Borrowing (the
"Proposed Borrowing") as required by Section 2.02(a) of the Credit Agreement:

          (i)   The Business Day of the Proposed Borrowing is _______________,
     200_.

          (ii)  The Type of Advances comprising the Proposed Borrowing is [Base
     Rate Advances] [Eurodollar Rate Advances].

          (iii) The aggregate amount of the Proposed Borrowing is
     $_______________.

          [(iv) The initial Interest Period for each Eurodollar Rate Advance
     made as part of the Proposed Borrowing is _____ month[s].]

          The undersigned hereby certifies that the following statements are
true on the date hereof, and will be true on the date of the Proposed Borrowing:

          (A) the representations and warranties contained in Section 4.01 of
     the Credit Agreement are correct, before and after giving effect to the
     Proposed Borrowing and to the application of the proceeds therefrom, as
     though made on and as of such date; and

<PAGE>

          (B) no event has occurred and is continuing, or would result from such
     Proposed Borrowing or from the application of the proceeds therefrom, that
     constitutes a Default.

                                                  Very truly yours,

                                                  CONSOL ENERGY INC.

                                                  By __________________
                                                     Title:.

                                        2

<PAGE>

                                                             EXHIBIT C - FORM OF
                                                       ASSIGNMENT AND ACCEPTANCE

          Reference is made to the Three Year Credit Agreement dated as of
September 16, 2002 (as amended or modified from time to time, the "Credit
Agreement") among CONSOL Energy Inc., a Delaware corporation (the "Borrower"),
the Lenders and Initial Issuing Banks (each as defined in the Credit Agreement),
Dresdner Bank AG, New York and Grand Cayman Branches and PNC Bank, N.A., as
syndication agents, Salomon Smith Barney Inc., as sole lead arranger and
bookrunner, and Citibank, N.A., as agent for the Lenders (the "Agent"). Terms
defined in the Credit Agreement are used herein with the same meaning.

          The "Assignor" and the "Assignee" referred to on Schedule I hereto
agree as follows:

          1.  The Assignor hereby sells and assigns to the Assignee, and the
Assignee hereby purchases and assumes from the Assignor, an interest in and to
the Assignor's rights and obligations under the Credit Agreement as of the date
hereof equal to the percentage interest specified on Schedule 1 hereto of all
outstanding rights and obligations under the Credit Agreement together with
participations in Letters of Credit held by the Assignor on the date hereof.
After giving effect to such sale and assignment, the Assignee's Revolving Credit
Commitment and the amount of the Advances owing to the Assignee will be as set
forth on Schedule 1 hereto.

          2.  The Assignor (i) represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that such
interest is free and clear of any adverse claim; (ii) makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Credit Agreement
or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of, or the perfection or priority of any lien or security interest
created or purported to be created under or in connection with, the Credit
Agreement or any other instrument or document furnished pursuant thereto; (iii)
makes no representation or warranty and assumes no responsibility with respect
to the financial condition of the Borrower or the performance or observance by
the Borrower of any of its obligations under the Credit Agreement or any other
instrument or document furnished pursuant thereto; (iv) attaches the Note[, if
any,] held by the Assignor [and requests that the Agent exchange such Note for a
new Note payable to the order of [the Assignee in an amount equal to the
Revolving Credit Commitment assumed by the Assignee pursuant hereto or new Notes
payable to the order of the Assignee in an amount equal to the Revolving Credit
Commitment assumed by the Assignee pursuant hereto and] the Assignor in an
amount equal to the Revolving Credit Commitment retained by the Assignor under
the Credit Agreement[, respectively,] as specified on Schedule 1 hereto] and (v)
represents and warrants that this Assignment and Acceptance is its legal, valid
and binding obligation enforceable in accordance with its terms, subject, as to
enforcement, only to bankruptcy, insolvency, reorganization, moratorium or other
similar laws at the time in effect affecting the enforceability of the rights of
creditors generally, and by general equitable principles.

          3.  The Assignee (i) confirms that it has received a copy of the
Credit Agreement, together with copies of the financial statements referred to
in Section 4.01 thereof and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Acceptance; (ii) agrees that it will, independently and
without reliance upon the Agent, the Assignor 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
the Credit Agreement; (iii) confirms that it is an Eligible Assignee; (iv)
appoints and authorizes the Agent to take such action as agent on its behalf and
to exercise such powers and discretion under the Credit Agreement as are
delegated to the Agent by the terms thereof, together with such powers and
discretion as are reasonably incidental thereto; (v) agrees that it will perform
in accordance with their terms all of the obligations that by the terms of the
Credit Agreement are required to be performed by it as a Lender; (vi) attaches
any U.S. Internal Revenue Service forms required under Section 2.14 of the
Credit Agreement and (vii) represents and warrants that this Assignment and
Acceptance is its legal, valid and binding obligation enforceable in accordance
with its terms, subject, as to enforcement, only to bankruptcy, insolvency,
reorganization, moratorium or other similar laws at the time in effect affecting
the enforceability of the rights of creditors generally, and by general
equitable principles.

<PAGE>

          4. Following the execution of this Assignment and Acceptance, it will
be delivered to the Agent for acceptance and recording by the Agent. The
effective date for this Assignment and Acceptance (the "Effective Date") shall
be the date of acceptance hereof by the Agent, unless otherwise specified on
Schedule 1 hereto.

          5. Upon such acceptance and recording by the Agent, as of the
Effective Date, (i) the Assignee shall be a party to the Credit Agreement and,
to the extent provided in this Assignment and Acceptance, have the rights and
obligations of a Lender thereunder and (ii) the Assignor shall, to the extent
provided in this Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Credit Agreement.

          6. Upon such acceptance and recording by the Agent, from and after the
Effective Date, the Agent shall make all payments under the Credit Agreement and
the Notes in respect of the interest assigned hereby (including, without
limitation, all payments of principal, interest and facility fees with respect
thereto) to the Assignee. The Assignor and Assignee shall make all appropriate
adjustments in payments under the Credit Agreement and the Notes for periods
prior to the Effective Date directly between themselves.

          7. This Assignment and Acceptance shall be governed by, and construed
in accordance with, the laws of the State of New York.

          8. This Assignment and Acceptance may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of Schedule 1 to this Assignment and Acceptance by telecopier shall
be effective as delivery of a manually executed counterpart of this Assignment
and Acceptance.

          IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule
1 to this Assignment and Acceptance to be executed by their officers thereunto
duly authorized as of the date specified thereon.

                                       2

<PAGE>

                                   Schedule 1
                                       to
                            Assignment and Acceptance

Percentage interest assigned:                                            _____%

Assignee's Revolving Credit Commitment:                                 $______

Aggregate outstanding principal amount of Advances assigned:            $______

Principal amount of Note payable to Assignee:                           $______

Principal amount of  Note payable to Assignor:                          $______

Effective Date*:  _______________, 200_

                                            [NAME OF ASSIGNOR], as Assignor

                                            By __________________________
                                            Title:

                                            Dated:  _______________, 200_

                                            [NAME OF ASSIGNEE], as Assignee

                                            By __________________________
                                            Title:

                                            Dated:  _______________, 200_

                                            Domestic Lending Office:
                                                   [Address]

                                            Eurodollar Lending Office:
                                                   [Address]

--------
*    This date should be no earlier than five Business Days after the delivery
     of this Assignment and Acceptance to the Agent.

                                       3

<PAGE>

Accepted [and Approved]** this
__________ day of _______________, 200_

CITIBANK, N.A., as Agent

By ____________________________________
   Title:

[Approved this __________ day
of _______________, 200_

CONSOL ENERGY INC.

By ____________________________________
   Title:

--------------
**   Required if the Assignee is an Eligible Assignee solely by reason of clause
     (iii) of the definition of "Eligible Assignee".

*    Required if the Assignee is an Eligible Assignee solely by reason of clause
     (iii) of the definition of "Eligible Assignee".

                                       4

<PAGE>

                                                             EXHIBIT D - FORM OF
                                                              OPINION OF COUNSEL
                                                                FOR THE BORROWER

                                    [To come]

<PAGE>

                                                                  EXECUTION COPY

                                U.S. $266,750,000

                           THREE YEAR CREDIT AGREEMENT

                         Dated as of September 16, 2002

                                      Among

                               CONSOL ENERGY INC.
                                   as Borrower

                                       and

                        THE INITIAL LENDERS NAMED HEREIN
                               as Initial Lenders

                                       and

                                 CITIBANK, N.A.
                             as Administrative Agent

                                       and

                                 PNC BANK, N.A.
                             as Initial Issuing Bank

                                       and

              DRESDNER BANK AG, NEW YORK AND GRAND CAYMAN BRANCHES
                                       and
                                 PNC BANK, N.A.
                              as Syndication Agents

                                       and

                            SALOMON SMITH BARNEY INC.
                      as Sole Lead Arranger and Bookrunner

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                        <C>
ARTICLE I

      SECTION 1.01.  Certain Defined Terms                                                     1
                     ---------------------

      SECTION 1.02.  Computation of Time Periods                                              10
                     ---------------------------

      SECTION 1.03.  Accounting Terms                                                         10
                     ----------------

ARTICLE II

      SECTION 2.01.  The Advances and Letters of Credit                                       10
                     ----------------------------------

      SECTION 2.02.  Making the Advances                                                      11
                     -------------------

      SECTION 2.03.  Issuance of and Drawings and Reimbursement Under Letters of Credit       11
                     ------------------------------------------------------------------

      SECTION 2.04.  Fees                                                                     13
                     ----

      SECTION 2.05.  Termination or Reduction of the Commitments                              13
                     -------------------------------------------

      SECTION 2.06.  Repayment of Advances                                                    13
                     ---------------------

      SECTION 2.07.  Interest on Advances                                                     14

                     --------------------
      SECTION 2.08.  Interest Rate Determination                                              14
                     ---------------------------

      SECTION 2.09.  Optional Conversion of Advances                                          15
                     -------------------------------

      SECTION 2.10.  Prepayments of Advances                                                  15
                     -----------------------

      SECTION 2.11.  Increased Costs                                                          16
                     ---------------

      SECTION 2.12.  Illegality                                                               16
                     ----------

      SECTION 2.13.  Payments and Computations                                                16
                     -------------------------

      SECTION 2.14.  Taxes                                                                    17
                     -----

      SECTION 2.15.  Sharing of Payments, Etc.                                                19
                     -------------------------

      SECTION 2.16.  Evidence of Debt                                                         19
                     ----------------

      SECTION 2.17.  Use of Proceeds                                                          19
                     ---------------

      SECTION 2.18.  Increase in the Aggregate Commitments                                    19
                     -------------------------------------

ARTICLE III
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                               <C>
      SECTION 3.01.  Conditions Precedent to Effectiveness of Section 2.01                            20
                     -----------------------------------------------------

      SECTION 3.02.  Conditions Precedent to Each Borrowing and Letter of Credit Issuance.            22
                     --------------------------------------------------------------------

      SECTION 3.03.  Determinations Under Section 3.01                                                22
                     ---------------------------------

ARTICLE IV

      SECTION 4.01.  Representations and Warranties of the Borrower                                   22
                     ----------------------------------------------

ARTICLE V

      SECTION 5.01.  Affirmative Covenants                                                            26
                     ---------------------

      SECTION 5.02.  Negative Covenants                                                               29
                     ------------------
ARTICLE VI

      SECTION 6.01.  Events of Default                                                                33
                     -----------------

      SECTION 6.02.  Actions in Respect of the Letters of Credit upon Default                         34
                     --------------------------------------------------------
ARTICLE VII

      SECTION 7.01.  Authorization and Action                                                         35
                     ------------------------

      SECTION 7.02.  Agent's Reliance, Etc.                                                           35
                     ----------------------

      SECTION 7.03.  Citibank and Affiliates                                                          35
                     -----------------------

      SECTION 7.04.  Lender Credit Decision                                                           36
                     ----------------------

      SECTION 7.05.  Indemnification                                                                  36
                     ---------------

      SECTION 7.06.  Successor Agent                                                                  36
                     ---------------

      SECTION 7.07.  Other Agents.                                                                    37
                     ------------

      SECTION 7.08.  Acknowledgements.                                                                37
                     -----------------
ARTICLE VIII

      SECTION 8.01.  Amendments, Etc.                                                                 37
                     ----------------

      SECTION 8.02.  Notices, Etc.                                                                    37
                     -------------

      SECTION 8.03.  No Waiver; Remedies                                                              38
                     -------------------

      SECTION 8.04.  Costs and Expenses                                                               38
                     ------------------
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                                      <C>
      SECTION 8.05.    Right of Set-off                                                       39
                       ----------------

      SECTION 8.06.    Binding Effect                                                         39
                       --------------

      SECTION 8.07.    Assignments and Participations                                         39
                       ------------------------------

      SECTION 8.08.    Confidentiality                                                        41
                       ---------------

      SECTION 8.09.    Governing Law                                                          41
                       -------------

      SECTION 8.10.    Execution in Counterparts                                              41
                       -------------------------

      SECTION 8.11.    Jurisdiction, Etc.                                                     41
                       -----------------

      SECTION 8.12.    No Liability of the Lenders as Letter of Credit Issuers                42
                       -------------------------------------------------------

      SECTION 8.12.5.  Severability                                                           42
                       -----------

      SECTION 8.13.    Waiver of Jury Trial                                                   43
                       --------------------
</TABLE>

                                      iii

<PAGE>

Schedules

Schedule I - List of Applicable Lending Offices

Schedule II - Significant Subsidiaries

Schedule III - Permitted Investments

Disclosure Schedule

Exhibits

Exhibit A  -  Form of Note

Exhibit B  -  Form of Notice of Borrowing

Exhibit C  -  Form of Assignment and Acceptance

Exhibit D  -  Form of Opinion of Counsel for the Borrower

Exhibit E  -  Form of Subordination Agreement

Exhibit F  -  Form of Subsidiary Guaranty

                                       iv<PAGE>

                                                                   EXHIBIT 10.27

                            364-DAY CREDIT AGREEMENT

                         Dated as of September 16, 2002

          CONSOL ENERGY INC., a Delaware corporation (the "Borrower"), the
banks, financial institutions and other institutional lenders (the "Initial
Lenders") listed on the signature pages hereof, DRESDNER BANK AG, NEW YORK AND
GRAND CAYMAN BRANCHES and PNC BANK, N.A., as syndication agents, SALOMON SMITH
BARNEY INC., as sole lead arranger and bookrunner, and CITIBANK, N.A.
("Citibank"), as administrative agent (the "Agent") for the Lenders (as
hereinafter defined), agree as follows:

                                    ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

          SECTION 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

          "Advance" means an advance by a Lender to the Borrower as part of a
     Borrowing and refers to a Base Rate Advance or a Eurodollar Rate Advance
     (each of which shall be a "Type" of Advance).

          "Affiliate" of any Person means any other Person which, directly or
     indirectly, controls or is controlled by or under common control with such
     Person (excluding any trustee under, or any committee with responsibility
     for administering, any Pension Plan). A Person shall be deemed to be
     "controlled by" any other Person if such other Person possesses, directly
     or indirectly, power (a) to vote 10% or more of the securities (on a fully
     diluted basis) having ordinary voting power for the election of directors
     or managing general partners of such Person; or (b) to direct or cause the
     direction of the management and policies of such Person whether by contract
     or otherwise.

          "Agent's Account" means the account of the Agent maintained by the
     Agent at Citibank at its office at Two Penns Way, New Castle, Delaware
     19720, Account No. 36852248, Attention: Bank Loan Syndications.

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

          "Applicable Margin" means, as of any date, a percentage per annum
     determined by reference to the Borrower's Public Debt Rating in effect on
     such date as set forth below:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
  Public Debt Rating    Applicable Margin    Applicable Margin    Applicable Margin   Applicable Margin
                              for                   for                  for                 for
                         Eurodollar Rate      Eurodollar Rate         Base Rate           Base Rate
                        Advances Prior to     Advances On and     Advances Prior to     Advances On and
                            Term Loan         After Term Loan         Term Loan         After Term Loan
                         Conversion Date      Conversion Date      Conversion Date     Conversion Date
----------------------------------------------------------------------------------------------------------
<S>                    <C>                   <C>                 <C>                  <C>
Level 1
-------
A- or A3 or above             0.825%               1.250%              0.000%               0.425%
----------------------------------------------------------------------------------------------------------
Level 2
-------
BBB+ or Baa1                  1.150%               1.875%              0.250%               0.975%
----------------------------------------------------------------------------------------------------------
Level 3
-------
BBB or Baa2                   1.225%               2.000%              0.375%               1.150%
----------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<S>                          <C>                <C>                 <C>                 <C>
----------------------------------------------------------------------------------------------------------
Level 4
-------
BBB- or Baa3                  1.400%               2.500%              0.500%               1.550%
----------------------------------------------------------------------------------------------------------
Level 5
-------
Lower than Level 4            1.600%               2.750%              1.000%               2.150%
----------------------------------------------------------------------------------------------------------
</TABLE>

          "Applicable Percentage" means, as of any date prior to the Term Loan
     Conversion Date, a percentage per annum determined by reference to the
     Borrower's Public Debt Rating in effect on such date as set forth below:

               ------------------------------------------------
                   Public Debt Rating         Applicable
                                              Percentage
               ------------------------------------------------
               Level 1
               -------
               A- or A3 or above                0.175%
               ------------------------------------------------
               Level 2
               -------
               BBB+ or Baa1                     0.225%
               ------------------------------------------------
               Level 3
               -------
               BBB or Baa2                      0.275%
               ------------------------------------------------
               Level 4
               -------
               BBB- or Baa3                     0.350%
               ------------------------------------------------
               Level 5
               -------
               Lower than Level 4               0.400%
               ------------------------------------------------

          "Approval" means each and every approval, consent, filing and
     registration by or with any Federal, state or other regulatory authority or
     any third party necessary to authorize or permit the execution, delivery or
     performance of this Agreement, the Notes or any other Loan Document or for
     the validity or enforceability hereof or thereof.

          "Assignment and Acceptance" means an assignment and acceptance entered
     into by a Lender and an Eligible Assignee, and accepted by the Agent, in
     substantially the form of Exhibit C hereto.

          "Assuming Lender" has the meaning specified in Section 2.17(d).

          "Assumption Agreement" has the meaning specified in Section
     2.17(d)(ii).

          "Authorized Officer" means, relative to any Loan Party, those of its
     officers whose signatures and incumbency shall have been certified to the
     Agent.

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

               (a) the rate of interest announced publicly by Citibank in New
          York, New York, from time to time, as Citibank's base rate; and

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

          "Base Rate Advance" means an Advance that bears interest as provided
     in Section 2.06(a)(i).

          "Borrowing" means a borrowing consisting of simultaneous Advances of
     the same Type made by each of the Lenders pursuant to Section 2.01.

                                       2

<PAGE>

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

          "Capital Lease" means any lease required to be accounted for as a
     capital lease under GAAP.

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

          "CERCLIS" means the Comprehensive Environmental Response Compensation
     Liability Information System List.

          "Change in Control" means with respect to the Borrower, the failure of
     RWE AG to own, directly or indirectly, a cumulative total of at least
     fifty-one percent (51%) of the outstanding shares of capital stock of the
     Borrower, on a fully diluted basis, in each case, free and clear of all
     Liens and other encumbrances.

          "Commercial Paper Indebtedness" means commercial paper issued by the
     Borrower with an original maturity of not more than 270 days from the date
     of issuance, incurrence or other creation thereof and, at the time any
     determination thereof is to be made, means the then aggregate outstanding
     face amount (if issued, incurred or created on a discount basis) or
     principal amount together with interest thereon to stated maturity (if
     issued, incurred or created on an interest-bearing basis) of such
     commercial paper.

          "Commitment" means, with respect to any Lender at any time, (a) the
     amount set forth opposite such Lender's name on Schedule I hereto, (b) if
     such Lender has become a Lender hereunder pursuant to an Assumption
     Agreement, the amount set forth in such Assumption Agreement or (c) if such
     Lender has entered into any Assignment and Acceptance, the amount set forth
     for such Lender in the Register maintained by the Agent pursuant to Section
     8.07(d), as such amount may be reduced pursuant to Section 2.05 or
     increased pursuant to Section 2.17.

          "Commitment Date" has the meaning specified in Section 2.17(b).

          "Commitment Increase" has the meaning specified in Section 2.17(a).

          "Confidential Information" means information that the Borrower
     furnishes to the Agent or any Lender in a writing designated as
     confidential, but does not include any such information that is or becomes
     generally available to the public or that is or becomes available to the
     Agent or such Lender from a source other than the Borrower.

          "Consenting Lender" has the meaning specified in Section 2.18(b).

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

          "Consolidated Subsidiary" of any Person means, at any time, every
     Subsidiary which would be included as a consolidated subsidiary of such
     Person in its consolidated financial statements as of such time; unless
     otherwise specified, "Consolidated Subsidiary" means a Consolidated
     Subsidiary of the Borrower.

          "Contractual Obligation" means, relative to any Person, any provision
     of any security issued by such Person or of any Instrument or undertaking
     to which such Person is a party or by which it or any of its property is
     bound.

          "Controlled Group" means all members of a controlled group of
     corporations and all members of a controlled group of trades or businesses
     (whether or not incorporated) under common control which, together with the
     Borrower or any Subsidiary, as applicable, are treated as a single employer
     under Section 414 of the Code or Section 4001 of ERISA.

                                       3

<PAGE>

          "Convert", "Conversion" and "Converted" each refers to a conversion of
     Advances of one Type into Advances of the other Type pursuant to Section
     2.07 or 2.08.

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

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

          "Effective Date" has the meaning specified in Section 3.01.

          "Eligible Assignee" means (i) a Lender; (ii) an Affiliate of a Lender
     and (iii) any other Person approved by the Agent and, unless an Event of
     Default has occurred and is continuing at the time any assignment is
     effected in accordance with Section 8.07, the Borrower, such approval not
     to be unreasonably withheld or delayed; provided, however, that neither the
     Borrower nor an Affiliate of the Borrower shall qualify as an Eligible
     Assignee.

          "Environmental Laws" means all applicable federal, state or local
     statutes, laws, ordinances, codes, rules, regulations and guidelines
     (including consent decrees and administrative orders) relating to public
     health and safety and protection of the environment, including CERCLA and
     SMCRA.

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

          "Eurocurrency Liabilities" has the meaning assigned to that term in
     Regulation D of the Board of Governors of the Federal Reserve System, as in
     effect from time to time.

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

          "Eurodollar Rate" means, for any Interest Period for each Eurodollar
     Rate Advance comprising part of the same Borrowing, an interest rate per
     annum equal to the rate per annum obtained by dividing (a) the rate per
     annum (rounded upward to the nearest whole multiple of 1/16 of 1% per
     annum) appearing on Telerate Markets Page 3750 (or any successor page) as
     the London interbank offered rate for deposits in U.S. 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
     or, if for any reason such rate is not available, the average (rounded
     upward to the nearest whole multiple of 1/16 of 1% per annum, if such
     average is not such a multiple) of the rate per annum at which deposits in
     U.S. dollars are offered by the principal office of each of the Reference
     Banks in London, England to prime banks in the London interbank market at
     11:00 A.M. (London time) two Business Days before the first day of such
     Interest Period in an amount substantially equal to such Reference Bank's
     Eurodollar Rate Advance comprising part of such Borrowing to be outstanding
     during such Interest Period and for a period equal to such Interest Period
     by (b) a percentage equal to 100% minus the Eurodollar Rate Reserve
     Percentage for such Interest Period. If the Telerate Markets Page 3750 (or
     any successor page) is unavailable, the Eurodollar Rate for any Interest
     Period for each Eurodollar Rate Advance comprising part of the same
     Borrowing shall be determined by the Agent on the basis of applicable rates
     furnished to and received by the Agent from the Reference Banks two
     Business Days before the first day of such Interest Period, subject,
     however, to the provisions of Section 2.07.

                                       4

<PAGE>

          "Eurodollar Rate Advance" means an Advance that bears interest as
     provided in Section 2.06(a)(ii).

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

          "Events of Default" has the meaning specified in Section 6.01.

          "Extension Date" has the meaning specified in Section 2.18(b).

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

          "Fiscal Quarter" means any quarter of a Fiscal Year.

          "Fiscal Year" means any period of twelve consecutive calendar months
     ending on December 31.

          "F.R.S. Board" means the Board of Governors of the Federal Reserve
     System (or any successor).

          "GAAP" means generally accepted United States accounting principles.

          "Guarantor" means, at any time, each Subsidiary that is a party to the
     Subsidiary Guaranty at such time.

          "Guaranty" means any agreement, undertaking or arrangement by which
     any Person guarantees, endorses or otherwise becomes or is contingently
     liable upon (by direct or indirect agreement, contingent or otherwise, to
     provide funds for payment, to supply funds to, or otherwise to invest in, a
     debtor, or otherwise to assure a creditor against loss) the debt,
     obligation or other liability of any other Person (other than by
     endorsements of instruments in the course of collection), or guarantees the
     payment of dividends or other distributions upon the shares of any other
     Person. The amount of the obligor's obligation under any guaranty shall
     (subject to any limitation set forth therein) be deemed to be the
     outstanding principal amount (or maximum outstanding principal amount, if
     larger) of the debt, obligation or other liability thereby guaranteed.

          "Hazardous Material" means (a) any "hazardous substance", as defined
     by CERCLA; (b) any "hazardous waste", as defined by RCRA; (c) any petroleum
     product; or (d) any pollutant or contaminant or hazardous, dangerous or
     toxic chemical, material or substance within the meaning of any other
     Environmental Law.

          "Impermissible Qualification" means, relative to the opinion by
     independent public accountants as to any financial statement of the
     Borrower, any qualification or exception to such opinion: (a) which is of a
     "going concern" or similar nature; or (b) which relates to the limited
     scope of examination of matters relevant to such financial information.

                                       5

<PAGE>

          "Increase Date" has the meaning specified in Section 2.17(a).

          "Increasing Lender" has the meaning specified in Section 2.17(b).

          "Indebtedness" of any Person means, without duplication:

          (a)  Indebtedness for Borrowed Money;

          (b)  all items other than as described in clause (a) which, in
     accordance with GAAP, would be included as liabilities on the liability
     side of a balance sheet of such Person as of the date at which Indebtedness
     is to be determined; and

          (c)  whether or not so included as liabilities in accordance with
     GAAP,

               (i)  all indebtedness (excluding prepaid interest thereon)
          secured by a Lien on property owned or being purchased by such Person
          (including indebtedness arising under conditional sales or other title
          retention agreements) whether or not such indebtedness shall have been
          assumed by such Person, and

               (ii) all Guaranties issued by such Person.

          "Indebtedness for Borrowed Money" of any Person means, without
     duplication, all obligations of such Person, and all Guaranties issued by
     such Person, for borrowed money (including all notes payable and drafts
     accepted representing extensions of credit and all obligations evidenced by
     bonds, debentures, notes, unpaid reimbursement obligations under drawn
     letters of credit or other similar instruments) on which interest charges
     are customarily paid.

          "Information Memorandum" means the information memorandum dated August
     2, 2002 used by the Agent in connection with the syndication of the
     Commitments.

          "Instrument" means any document or writing (whether by formal
     agreement, letter or otherwise) under which any obligation is evidenced,
     assumed or undertaken, or any right to any Lien is granted or perfected.

          "Interest Period" means, for each Eurodollar Rate Advance comprising
     part of the same Borrowing, the period commencing on the date of such
     Eurodollar Rate Advance or the date of the Conversion of any Base Rate
     Advance into such Eurodollar Rate Advance and ending on the last day of the
     period selected by the Borrower pursuant to the provisions below and,
     thereafter each subsequent period commencing on the last day of the
     immediately preceding Interest Period and ending on the last day of the
     period selected by the Borrower pursuant to the provisions below. The
     duration of each such Interest Period shall be one, two, three or six
     months, as the Borrower may, upon notice received by the Agent not later
     than 11:00 A.M. (New York City time) on the third Business Day prior to the
     first day of such Interest Period, select; provided, however, that:

               (a)  the Borrower may not select any Interest Period that ends
          after the Termination Date or, if the Advances have been converted to
          a term loan pursuant to Section 2.06 prior to such selection, that
          ends after the Maturity Date;

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

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

                                       6

<PAGE>

          of such Interest Period to occur in the next following calendar month,
          the last day of such Interest Period shall occur on the next preceding
          Business Day; and

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

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

          "Lenders" means the Initial Lenders, each Assuming Lender that shall
     become a party hereto pursuant to Section 2.17 or 2.18 and each Person that
     shall become a party hereto pursuant to Section 8.07.

          "Liabilities" means all obligations (monetary or otherwise) of the
     Borrower under this Agreement, the Notes and each other Loan Document.

          "Lien" means any mortgage, pledge, hypothecation, charge, assignment,
     deposit arrangement, encumbrance, lien (statutory or other), or preference,
     priority or other security agreement or preferential arrangement of any
     kind or nature whatsoever (including any conditional sale or other title
     retention agreement, any financing lease involving substantially the same
     economic effect as any of the foregoing, accompanied by the filing of any
     financing statement under the Uniform Commercial Code or comparable law of
     any jurisdiction).

          "Loan Document" means this Agreement and each Instrument and any other
     document from time to time executed and delivered hereunder, whether or not
     mentioned herein, including the Notes, the Subsidiary Guaranty and the
     Subordination Agreement.

          "Loan Party" means the Borrower, each Guarantor and any other party
     (other than the Agent and any Lender) that executes and delivers a Loan
     Document.

          "Material Adverse Change" means any material adverse change in the
     business, financial condition,, operations or properties of the Borrower
     and its Subsidiaries taken as a whole.

          "Materially Adverse Effect" means a materially adverse effect on (a)
     the business, financial condition, operations or properties of the Borrower
     and its Subsidiaries taken as a whole, (b) the rights and remedies of the
     Agent or any Lender under this Agreement or any other Loan Document or (c)
     the ability of the Borrower or any other Loan Party to perform its payment
     or other material obligations under this Agreement or any other Loan
     Document.

          "Maturity Date" means the earlier of (a) the first anniversary of the
     Termination Date and (b) the date of termination in whole of the aggregate
     Commitments pursuant to Section 2.04 or 6.01.

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

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

          "Non-Consenting Lender" has the meaning specified in Section 2.18(b).

          "Note" means a promissory note of the Borrower payable to the order of
     any Lender, delivered pursuant to a request made under Section 2.15 in
     substantially the form of Exhibit A hereto, evidencing the aggregate
     indebtedness of the Borrower to such Lender resulting from the Advances
     made by such Lender.

                                       7

<PAGE>

          "Notice of Borrowing" has the meaning specified in Section 2.02(a).

          "Organic Document" means, relative to any corporation, its certificate
     of incorporation, its by-laws and all shareholder agreements, voting trusts
     and similar arrangements applicable to any of its authorized shares of
     capital stock.

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

          "Pension Plan" means a "pension plan", as such term is defined in
     section 3(2) of ERISA, which is subject to Title IV of ERISA (other than a
     multi-employer plan as defined in section 4001(a)(3) of ERISA), and to
     which the Borrower, any Subsidiary or any member of the Controlled Group of
     any of them, may have any liability, including any liability under section
     4063 or section 4069 of ERISA.

          "Permitted Investment" means, at any time, each of the investments
     listed on Schedule III hereto.

          "Person" means an individual, partnership, corporation (including a
     business trust), joint stock company, trust, unincorporated association,
     joint venture, limited liability company or other entity, or a government
     or any political subdivision or agency thereof.

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

          "Public Debt Rating" means, as of any date, the rating that has been
     most recently announced by either S&P or Moody's, as the case may be, for
     any class of non-credit enhanced long-term senior unsecured debt issued by
     the Borrower or, if any such rating agency shall have issued more than one
     such rating, the lowest such rating issued by such rating agency. For
     purposes of the foregoing, (a) if only one of S&P or Moody's shall have in
     effect a Public Debt Rating, the Applicable Margin and the Applicable
     Percentage shall be determined by reference to the available rating; (b) if
     none of S&P or Moody's shall have in effect a Public Debt Rating, the
     Applicable Margin and the Applicable Percentage will be set in accordance
     with Level 5 under the definition of "Applicable Margin" or "Applicable
     Percentage", as the case may be; (c) if the ratings established by S&P and
     Moody's shall fall within different levels, the Applicable Margin and the
     Applicable Percentage shall be based upon the higher rating unless (x) the
     lower rating is more than one level below the higher of such ratings, in
     which case the Applicable Margin and the Applicable Percentage shall be
     based on the rating that is one level above the lower rating or (y) the
     rating agency that has in effect the lower rating has announced a negative
     outlook, in which case the Applicable Margin and the Applicable Percentage
     shall be based upon the lower rating; (d) if any rating established by S&P
     or Moody's shall be changed, such change shall be effective as of the date
     on which such change is first announced publicly by the rating agency
     making such change; and (e) if S&P or Moody's shall change the basis on
     which ratings are established, each reference to the Public Debt Rating
     announced by S&P or Moody's, as the case may be, shall refer to the then
     equivalent rating by S&P or Moody's, as the case may be.

          "RCRA" means the Resource Conservation and Recovery Act, 42 U.S.C.
     Section 6901, et seq., as in effect from time to time.

          "Reference Banks" means Citibank, Dresdner Bank AG, New York and Grand
     Cayman Branches and PNC Bank, N.A.

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

                                       8

<PAGE>

              "Release" means a "release", as such term is defined in CERCLA.

              "Reportable Event" means a "reportable event" described in Section
4043(c) of ERISA and the regulations thereunder for which the 30-day notice
requirement has not been waived.

              "Required Lenders" means at any time Lenders owed at least a
majority in interest of the then aggregate unpaid principal amount of the
Advances owing to Lenders, or, if no such principal amount is then outstanding,
Lenders having at least a majority in interest of the Commitments.

              "RWE AG" means, RWE AG, a corporation existing under the laws of
The Federal Republic of Germany.

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

              "SEC" means the Securities and Exchange Commission (or any
government body or agency succeeding to the functions of such Commission).

              "Significant Subsidiary" means each Subsidiary listed on Schedule
II hereto (as such Schedule may be amended from time to time in accordance with
Section 5.01(a)(i)(E)) and any other direct or indirect Subsidiary of the
Borrower whose assets exceed 5% of the consolidated assets of the Borrower and
the Consolidated Subsidiaries or whose revenues exceed 5% of the consolidated
revenues of the Borrower and the Consolidated Subsidiaries (in each case
determined by reference to the most recently available audited Consolidated
financial statements of the Borrower) or any other direct or indirect Subsidiary
of the Borrower so designated by the Borrower after the Effective Date.

              "SMCRA" means the Federal Surface Mining Control and Reclamation
Act of 1977, as in effect from time to time.

              "Subordination Agreement" means that certain subordination
agreement, substantially in the form of Exhibit E attached hereto (as such may
be amended, supplemented, restated or otherwise modified and in effect from time
to time).

              "Subsidiary" of any Person means any other corporation,
partnership, joint venture, limited liability company, trust or estate of which
(or in which) more than 50% of (a) the outstanding shares of capital stock of
which having ordinary voting power for the election of directors such
corporation, (b) the interest in the capital or profits of such limited
liability company, partnership or joint venture or (c) the beneficial interest
in such trust or estate is at the time directly or indirectly owned or
controlled by such Person, by such Person and one or more of its other
Subsidiaries or by one or more of such Person's other Subsidiaries and, except
as otherwise indicated herein, references to Subsidiaries shall refer to
Subsidiaries of the Borrower.

              "Subsidiary Guaranty" means that certain guaranty, substantially
in the form of Exhibit F attached hereto (as such may be amended, supplemented,
restated or otherwise modified and in effect from time to time).

              "Term Loan Conversion Date" means the Termination Date on which
all Advances outstanding on such date are converted into a term loan pursuant to
Section 2.05.

              "Term Loan Election" has the meaning specified in Section 2.05.

              "Termination Date" means the earlier of (a) September 15, 2003,
subject to the extension thereof pursuant to Section 2.18 and (b) the date of
termination in whole of the Commitments pursuant to Section 2.04 or 6.01;
provided, however, that the Termination Date of any Lender that is a
Non-Consenting Lender to any requested extension pursuant to Section 2.18 shall
be the Termination Date in effect immediately prior to the applicable Extension
Date for all purposes of this Agreement.

                                       9

<PAGE>

              "Unused Commitment" means, with respect to each Lender at any
time, such Lender's Commitment at such time minus the aggregate principal amount
of all Advances made by such Lender and outstanding at such time.

              "Welfare Plan" means a "welfare plan", as such term is defined in
section 3(1) of ERISA (other than a multiemployer plan as defined in section
3(37) of ERISA), under which the Borrower or any Subsidiary may have any
liability, including any obligation to contribute.

              "Withdrawal Liability" has the meaning specified in Part I of
Subtitle I of Title IV of ERISA.

              SECTION 1.02. Computation of Time Periods. In this Agreement in
the computation of periods of time from a specified date to a later specified
date, the word "from" means "from and including" and the words "to" and "until"
each mean "to but excluding".

              SECTION 1.03. Accounting Terms. All accounting terms not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles consistent with those applied in the preparation
of the financial statements referred to in Section 4.01(e) ("GAAP").

                                   ARTICLE II

                        AMOUNTS AND TERMS OF THE ADVANCES

              SECTION 2.01. The Advances. Each Lender severally agrees, on the
terms and conditions hereinafter set forth, to make Advances to the Borrower
from time to time on any Business Day during the period from the Effective Date
until the Termination Date in an aggregate amount not to exceed at any time such
Lender's Unused Commitment at such time. Each Borrowing shall be in an aggregate
amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof and
shall consist of Advances of the same Type made on the same day by the Lenders
ratably according to their respective Commitments. Within the limits of each
Lender's Commitment, the Borrower may borrow under this Section 2.01, prepay
pursuant to Section 2.09 and reborrow under this Section 2.01.

              SECTION 2.02. Making the Advances. (a) Each Borrowing shall be
made on notice, given not later than (x) 11:00 A.M. (New York City time) on the
third Business Day prior to the date of the proposed Borrowing in the case of a
Borrowing consisting of Eurodollar Rate Advances or (y) 11:00 A.M. (New York
City time) on the date of the proposed Borrowing in the case of a Borrowing
consisting of Base Rate Advances, by the Borrower to the Agent, which shall give
to each Lender prompt notice thereof by telecopier or telex. Each such notice of
a Borrowing (a "Notice of Borrowing") shall be by telephone, confirmed promptly
in writing, or telecopier or telex in substantially the form of Exhibit B
hereto, specifying therein the requested (i) date of such Borrowing, (ii) Type
of Advances comprising such Borrowing, (iii) aggregate amount of such Borrowing,
and (iv) in the case of a Borrowing consisting of Eurodollar Rate Advances,
initial Interest Period for each such Advance. Each Lender shall, before 1:00
P.M. (New York City time) on the date of such Borrowing make available for the
account of its Applicable Lending Office to the Agent at the Agent's Account, in
same day funds, such Lender's ratable portion of such Borrowing. After the
Agent's receipt of such funds and upon fulfillment of the applicable conditions
set forth in Article III, the Agent will make such funds available to the
Borrower at the Agent's address referred to in Section 8.02.

              (b) Anything in subsection (a) above to the contrary
notwithstanding, (i) the Borrower may not select Eurodollar Rate Advances for
any Borrowing if the aggregate amount of such Borrowing is less than $5,000,000
or if the obligation of the Lenders to make Eurodollar Rate Advances shall then
be suspended pursuant to Section 2.07 or 2.11 and (ii) the Eurodollar Rate
Advances may not be outstanding as part of more than eight separate Borrowings.

              (c) Each Notice of Borrowing shall be irrevocable and binding on
the Borrower. In the case of any Borrowing that the related Notice of Borrowing
specifies is to be comprised of Eurodollar Rate Advances, the Borrower shall
indemnify each Lender against any loss, cost or expense incurred by such Lender
as a result of any

                                       10

<PAGE>

failure to fulfill on or before the date specified in such Notice of Borrowing
for such Borrowing the applicable conditions set forth in Article III,
including, without limitation, any loss (including loss of anticipated profits),
cost or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by such Lender to fund the Advance to be made
by such Lender as part of such Borrowing when such Advance, as a result of such
failure, is not made on such date.

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

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

              SECTION 2.03. Fees. (a) Facility Fee. The Borrower agrees to pay
to the Agent for the account of each Lender a facility fee on the aggregate
amount of such Lender's Commitment from the date hereof in the case of each
Initial Lender and from the effective date specified in the Assumption Agreement
or in the Assignment and Acceptance pursuant to which it became a Lender in the
case of each other Lender until the Termination Date at a rate per annum equal
to the Applicable Percentage in effect from time to time, payable in arrears
quarterly on the last day of each March, June, September and December,
commencing September 30, 2002, and on the Termination Date.

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

              SECTION 2.04. Termination or Reduction of the Commitments. (a)
Optional. The Borrower shall have the right, upon at least three Business Days'
notice to the Agent, to terminate in whole or permanently reduce ratably in part
the Unused Commitments of the Lenders, provided that each partial reduction
shall be in the aggregate amount of $10,000,000 or an integral multiple of
$1,000,000 in excess thereof.

              (b) Mandatory. On the Termination Date, if the Borrower has made
the Term Loan Election in accordance with Section 2.06 prior to such date, and
from time to time thereafter upon each prepayment of the Advances, the
Commitments of the Lenders shall be automatically and permanently reduced on a
pro rata basis by an amount equal to the amount by which (i) the aggregate
Commitments immediately prior to such reduction exceeds (ii) the aggregate
unpaid principal amount of all Advances outstanding at such time.

              SECTION 2.05. Repayment of Advances. The Borrower shall, subject
to the next succeeding sentence, repay to the Agent for the ratable account of
the Lenders on the Termination Date the aggregate principal amount of the
Advances then outstanding. The Borrower may, upon not less than 15 days' notice
to the Agent, elect (the "Term Loan Election") to convert all of the Advances
outstanding on the Termination Date in effect at such time into a term loan
which the Borrower shall repay in full ratably to the Lenders on the Maturity
Date; provided that the Term Loan Election may not be exercised if a Default has
occurred and is continuing on the date of notice of the Term Loan Election or on
the date on which the Term Loan Election is to be effected. All Advances
converted into a term loan pursuant to this Section 2.05 shall continue to
constitute Advances except that the Borrower may not reborrow pursuant to
Section 2.01 after all or any portion of such Advances have been prepaid
pursuant to Section 2.09.

                                       11

<PAGE>

              SECTION 2.06. Interest on Advances. (a) Scheduled Interest. The
Borrower shall pay interest on the unpaid principal amount of each Advance owing
to each Lender from the date of such Advance until such principal amount shall
be paid in full, at the following rates per annum:

              (i)  Base Rate Advances. During such periods as such Advance is a
         Base Rate Advance, a rate per annum equal at all times to the sum of
         (x) the Base Rate in effect from time to time plus (y) the Applicable
         Margin in effect from time to time, payable in arrears quarterly on the
         last day of each March, June, September and December during such
         periods and on the date such Base Rate Advance shall be Converted or
         paid in full.

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

              (b)  Default Interest. Upon the occurrence and during the
continuance of an Event of Default under Section 6.01(a), the Agent may, and
upon the request of the Required Lenders shall, require the Borrower to pay
interest ("Default Interest") on (i) the unpaid principal amount of each Advance
owing to each Lender, payable in arrears on the dates referred to in clause
(a)(i) or (a)(ii) above, at a rate per annum equal at all times to 2% per annum
above the rate per annum required to be paid on such Advance pursuant to clause
(a)(i) or (a)(ii) above and (ii) to the fullest extent permitted by law, the
amount of any interest, fee or other amount payable hereunder that is not paid
when due, from the date such amount shall be due until such amount shall be paid
in full, payable in arrears on the date such amount shall be paid in full and on
demand, at a rate per annum equal at all times to 2% per annum above the rate
per annum required to be paid on Base Rate Advances pursuant to clause (a)(i)
above, provided, however, that following acceleration of the Advances pursuant
to Section 6.01, Default Interest shall accrue and be payable hereunder whether
or not previously required by the Agent.

              SECTION 2.07. Interest Rate Determination. (a) Each Reference Bank
agrees to furnish to the Agent timely information for the purpose of determining
each Eurodollar Rate. If any one or more of the Reference Banks shall not
furnish such timely information to the Agent for the purpose of determining any
such interest rate, the Agent shall determine such interest rate on the basis of
timely information furnished by the remaining Reference Banks. The Agent shall
give prompt notice to the Borrower and the Lenders of the applicable interest
rate determined by the Agent for purposes of Section 2.06(a)(i) or (ii), and the
rate, if any, furnished by each Reference Bank for the purpose of determining
the interest rate under Section 2.06(a)(ii).

              (b)  If, with respect to any Eurodollar Rate Advances, the
Required Lenders notify the Agent that the Eurodollar Rate for any Interest
Period for such Advances will not adequately reflect the cost to such Required
Lenders of making, funding or maintaining their respective Eurodollar Rate
Advances for such Interest Period, the Agent shall forthwith so notify the
Borrower and the Lenders, whereupon (i) each Eurodollar Rate Advance will
automatically, on the last day of the then existing Interest Period therefor,
Convert into a Base Rate Advance, and (ii) the obligation of the Lenders to
make, or to Convert Advances into, Eurodollar Rate Advances shall be suspended
until the Agent shall notify the Borrower and the Lenders that the circumstances
causing such suspension no longer exist.

              (c)  If the Borrower shall fail to select the duration of any
Interest Period for any Eurodollar Rate Advances in accordance with the
provisions contained in the definition of "Interest Period" in Section 1.01, the
Agent will forthwith so notify the Borrower and the Lenders and such Advances
will automatically, on the last day of the then existing Interest Period
therefor, Convert into Base Rate Advances.

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

                                       12

<PAGE>

              (e)   Upon the occurrence and during the continuance of any Event
of Default, (i) each Eurodollar Rate Advance will automatically, on the last day
of the then existing Interest Period therefor, Convert into a Base Rate Advance
and (ii) the obligation of the Lenders to make, or to Convert Advances into,
Eurodollar Rate Advances shall be suspended.

              (f)   If Telerate Markets Page 3750 is unavailable and fewer than
two Reference Banks furnish timely information to the Agent for determining the
Eurodollar Rate for any Eurodollar Rate Advances,

              (i)   the Agent shall forthwith notify the Borrower and the
         Lenders that the interest rate cannot be determined for such Eurodollar
         Rate Advances,

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

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

              SECTION 2.08. Optional Conversion of Advances. The Borrower may on
any Business Day, upon notice given to the Agent not later than 11:00 A.M. (New
York City time) on the third Business Day prior to the date of the proposed
Conversion and subject to the provisions of Sections 2.07 and 2.11, Convert all
Advances of one Type comprising the same Borrowing into Advances of the other
Type; provided, however, that any Conversion of Eurodollar Rate Advances into
Base Rate Advances shall be made only on the last day of an Interest Period for
such Eurodollar Rate Advances, any Conversion of Base Rate Advances into
Eurodollar Rate Advances shall be in an amount not less than the minimum amount
specified in Section 2.02(b) and no Conversion of any Advances shall result in
more separate Borrowings than permitted under Section 2.02(b). Each such notice
of a Conversion shall, within the restrictions specified above, specify (i) the
date of such Conversion, (ii) the Advances to be Converted, and (iii) if such
Conversion is into Eurodollar Rate Advances, the duration of the initial
Interest Period for each such Advance. Each notice of Conversion shall be
irrevocable and binding on the Borrower.

              SECTION 2.09. Prepayments of Advances. The Borrower may, upon
notice at least two Business Days' prior to the date of such prepayment, in the
case of Eurodollar Rate Advances, and not later than 11:00 A.M. (New York City
time) on the date of such prepayment, in the case of Base Rate Advances, to the
Agent stating the proposed date and aggregate principal amount of the
prepayment, and if such notice is given the Borrower shall, prepay the
outstanding principal amount of the Advances comprising part of the same
Borrowing in whole or ratably in part, together with accrued interest to the
date of such prepayment on the principal amount prepaid; provided, however, that
(x) each partial prepayment shall be in an aggregate principal amount of
$5,000,000 or an integral multiple of $1,000,000 in excess thereof and (y) in
the event of any such prepayment of a Eurodollar Rate Advance, the Borrower
shall be obligated to reimburse the Lenders in respect thereof pursuant to
Section 8.04(c).

              SECTION 2.10. Increased Costs. (a) If, due to either (i) the
introduction of or any change in or in the interpretation of any law or
regulation or (ii) the compliance with any guideline or request from any central
bank or other governmental authority (whether or not having the force of law),
there shall be any increase in the cost to any Lender of agreeing to make or
making, funding or maintaining Eurodollar Rate Advances (excluding for purposes
of this Section 2.10 any such increased costs resulting from (i) Taxes or Other
Taxes (as to which Section 2.13 shall govern) and (ii) changes in the basis of
taxation of overall net income or overall gross income by the United States or
by the foreign jurisdiction or state under the laws of which such Lender is
organized or has its Applicable Lending Office or any political subdivision
thereof), then the Borrower shall from time to time, upon demand by such Lender
(with a copy of such demand to the Agent), pay to the Agent for the account of
such Lender additional amounts sufficient to compensate such Lender for such
increased cost. A certificate as to the amount of such increased cost, submitted
to the Borrower and the Agent by such Lender, shall be conclusive and binding
for all purposes, absent manifest error.

              (b)   If any Lender determines that compliance with any law or
regulation or any guideline or request from any central bank or other
governmental authority (whether or not having the force of law) affects or

                                       13

<PAGE>

would affect the amount of capital required or expected to be maintained by such
Lender or any corporation controlling such Lender and that the amount of such
capital is increased by or based upon the existence of such Lender's commitment
to lend hereunder and other commitments of this type, then, upon demand by such
Lender (with a copy of such demand to the Agent), the Borrower shall pay to the
Agent for the account of such Lender, from time to time as specified by such
Lender, additional amounts sufficient to compensate such Lender or such
corporation in the light of such circumstances, to the extent that such Lender
reasonably determines such increase in capital to be allocable to the existence
of such Lender's commitment to lend hereunder. A certificate as to such amounts
submitted to the Borrower and the Agent by such Lender shall be conclusive and
binding for all purposes, absent manifest error.

              SECTION 2.11. Illegality. Notwithstanding any other provision of
this Agreement, if any Lender shall notify the Agent that the introduction of or
any change in or in the interpretation of any law or regulation makes it
unlawful, or any central bank or other governmental authority asserts that it is
unlawful, for any Lender or its Eurodollar Lending Office to perform its
obligations hereunder to make Eurodollar Rate Advances or to fund or maintain
Eurodollar Rate Advances hereunder, (a) each Eurodollar Rate Advance will
automatically, upon such demand, Convert into a Base Rate Advance and (b) the
obligation of the Lenders to make Eurodollar Rate Advances or to Convert
Advances into Eurodollar Rate Advances shall be suspended until the Agent shall
notify the Borrower and the Lenders that the circumstances causing such
suspension no longer exist.

              SECTION 2.12. Payments and Computations. (a) The Borrower shall
make each payment hereunder, irrespective of any right of counterclaim or
set-off, not later than 1:00 P.M. (New York City time) on the day when due in
U.S. dollars to the Agent at the Agent's Account in same day funds. The Agent
will promptly thereafter cause to be distributed like funds relating to the
payment of principal or interest or facility fees ratably (other than amounts
payable pursuant to Section 2.10, 2.13 or 8.04(c)) to the Lenders for the
account of their respective Applicable Lending Offices, and like funds relating
to the payment of any other amount payable to any Lender to such Lender for the
account of its Applicable Lending Office, in each case to be applied in
accordance with the terms of this Agreement. Upon any Assuming Lender becoming a
Lender hereunder as a result of a Commitment Increase pursuant to Section 2.17
or an extension of the Termination Date pursuant to Section 2.18, and upon the
Agent's receipt of such Lender's Assumption Agreement and recording of the
information contained therein in the Register, from and after the applicable
Increase Date or Extension Date, as the case may be, the Agent shall make all
payments hereunder and under any Notes issued in connection therewith in respect
of the interest assumed thereby to the Assuming Lender. Upon its acceptance of
an Assignment and Acceptance and recording of the information contained therein
in the Register pursuant to Section 8.07(c), from and after the effective date
specified in such Assignment and Acceptance, the Agent shall make all payments
hereunder and under the Notes in respect of the interest assigned thereby to the
Lender assignee thereunder, and the parties to such Assignment and Acceptance
shall make all appropriate adjustments in such payments for periods prior to
such effective date directly between themselves.

              (b) The Borrower hereby authorizes each Lender, if and to the
extent payment owed to such Lender is not made when due hereunder or under the
Note held by such Lender, to charge from time to time against any or all of the
Borrower's accounts with such Lender any amount so due.

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

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

                                       14

<PAGE>

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

              SECTION 2.13. Taxes. (a) Any and all payments by the Borrower to
or for the account of any Lender or the Agent hereunder or under the Notes or
any other documents to be delivered hereunder shall be made, in accordance with
Section 2.12 or the applicable provisions of such other documents, free and
clear of and without deduction for any and all present or future taxes, levies,
imposts, deductions, charges or withholdings, and all liabilities with respect
thereto, excluding, in the case of each Lender and the Agent, taxes imposed on
its overall net income, and franchise taxes imposed on it in lieu of net income
taxes, by the jurisdiction under the laws of which such Lender or the Agent (as
the case may be) is organized or any political subdivision thereof and, in the
case of each Lender, taxes imposed on its overall net income, and franchise
taxes imposed on it in lieu of net income taxes, by the jurisdiction of such
Lender's Applicable Lending Office or any political subdivision thereof (all
such non-excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities in respect of payments hereunder or under the Notes being
hereinafter referred to as "Taxes"). If the Borrower shall be required by law to
deduct any Taxes from or in respect of any sum payable hereunder or under any
Note or any other documents to be delivered hereunder to any Lender or the
Agent, (i) the sum payable shall be increased as may be necessary so that after
making all required deductions (including deductions applicable to additional
sums payable under this Section 2.13) such Lender or the Agent (as the case may
be) receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions and (iii) the
Borrower shall pay the full amount deducted to the relevant taxation authority
or other authority in accordance with applicable law.

              (b) In addition, the Borrower shall pay any present or future
stamp or documentary taxes or any other excise or property taxes, charges or
similar levies that arise from any payment made hereunder or under the Notes or
any other documents to be delivered hereunder or from the execution, delivery or
registration of, performing under, or otherwise with respect to, this Agreement
or the Notes or any other documents to be delivered hereunder (hereinafter
referred to as "Other Taxes").

              (c) The Borrower shall indemnify each Lender and the Agent for and
hold it harmless against the full amount of Taxes or Other Taxes (including,
without limitation, taxes of any kind imposed or asserted by any jurisdiction on
amounts payable under this Section 2.13) imposed on or paid by such Lender or
the Agent (as the case may be) and any liability (including penalties, interest
and expenses) arising therefrom or with respect thereto. This indemnification
shall be made within 30 days from the date such Lender or the Agent (as the case
may be) makes written demand therefor.

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

              (e) Each Lender organized under the laws of a jurisdiction outside
the United States, on or prior to the date of its execution and delivery of this
Agreement in the case of each Initial Lender and on the date of the Assignment
and Acceptance pursuant to which it becomes a Lender in the case of each other
Lender, and from time to time thereafter as reasonably requested in writing by
the Borrower (but only so long as such Lender remains

                                       15

<PAGE>

lawfully able to do so), shall provide each of the Agent and the Borrower with
two original Internal Revenue Service forms W-8BEN or W-8ECI, as appropriate, or
any successor or other form prescribed by the Internal Revenue Service,
certifying that such Lender is exempt from or entitled to a reduced rate of
United States withholding tax on payments pursuant to this Agreement or the
Notes. If the form provided by a Lender at the time such Lender first becomes a
party to this Agreement indicates a United States interest withholding tax rate
in excess of zero, withholding tax at such rate shall be considered excluded
from Taxes unless and until such Lender provides the appropriate forms
certifying that a lesser rate applies, whereupon withholding tax at such lesser
rate only shall be considered excluded from Taxes for periods governed by such
form; provided, however, that, if at the date of the Assignment and Acceptance
pursuant to which a Lender assignee becomes a party to this Agreement, the
Lender assignor was entitled to payments under subsection (a) in respect of
United States withholding tax with respect to interest paid at such date, then,
to such extent, the term Taxes shall include (in addition to withholding taxes
that may be imposed in the future or other amounts otherwise includable in
Taxes) United States withholding tax, if any, applicable with respect to the
Lender assignee on such date. If any form or document referred to in this
subsection (e) requires the disclosure of information, other than information
necessary to compute the tax payable and information required on the date hereof
by Internal Revenue Service form W-8BEN or W-8ECI, that the Lender reasonably
considers to be confidential, the Lender shall give notice thereof to the
Borrower and shall not be obligated to include in such form or document such
confidential information.

              (f) For any period with respect to which a Lender has failed to
provide the Borrower with the appropriate form, certificate or other document
described in Section 2.13(e) (other than if such failure is due to a change in
law, or in the interpretation or application thereof, occurring subsequent to
the date on which a form, certificate or other document originally was required
to be provided, or if such form, certificate or other document otherwise is not
required under subsection (e) above), such Lender shall not be entitled to
indemnification under Section 2.13(a) or (c) with respect to Taxes imposed by
the United States by reason of such failure; provided, however, that should a
Lender become subject to Taxes because of its failure to deliver a form,
certificate or other document required hereunder, the Borrower shall take such
steps as the Lender shall reasonably request to assist the Lender to recover
such Taxes.

              (g) Any Lender claiming any additional amounts payable pursuant to
this Section 2.13 agrees to use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions) to change the jurisdiction of its
Eurodollar Lending Office if the making of such a change would avoid the need
for, or reduce the amount of, any such additional amounts that may thereafter
accrue and would not, in the reasonable judgment of such Lender, be otherwise
disadvantageous to such Lender.

              SECTION 2.14. Sharing of Payments, Etc. If any Lender shall obtain
any payment (whether voluntary, involuntary, through the exercise of any right
of set-off, or otherwise) on account of the Advances owing to it (other than
pursuant to Section 2.10, 2.13 or 8.04(c)) in excess of its ratable share of
payments on account of the Advances obtained by all the Lenders, such Lender
shall forthwith purchase from the other Lenders such participations in the
Advances owing to them as shall be necessary to cause such purchasing Lender to
share the excess payment ratably with each of them; provided, however, that if
all or any portion of such excess payment is thereafter recovered from such
purchasing Lender, such purchase from each Lender shall be rescinded and such
Lender shall repay to the purchasing Lender the purchase price to the extent of
such recovery together with an amount equal to such Lender's ratable share
(according to the proportion of (i) the amount of such Lender's required
repayment to (ii) the total amount so recovered from the purchasing Lender) of
any interest or other amount paid or payable by the purchasing Lender in respect
of the total amount so recovered. The Borrower agrees that any Lender so
purchasing a participation from another Lender pursuant to this Section 2.14
may, to the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off) with respect to such participation as fully as
if such Lender were the direct creditor of the Borrower in the amount of such
participation.

              SECTION 2.15. Evidence of Debt. (a) Each Lender shall maintain in
accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower to such Lender resulting from each Advance owing to
such Lender from time to time, including the amounts of principal and interest
payable and paid to such Lender from time to time hereunder in respect of
Advances. The Borrower agrees that upon notice by any Lender to the Borrower
(with a copy of such notice to the Agent) to the effect that a Note is required
or appropriate in order for such Lender to evidence (whether for purposes of
pledge, enforcement or otherwise) the Advances

                                       16

<PAGE>

owing to, or to be made by, such Lender, the Borrower shall promptly execute and
deliver to such Lender a Note payable to the order of such Lender in a principal
amount up to the Commitment of such Lender.

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

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

          SECTION 2.16. Use of Proceeds. The proceeds of the Advances shall be
available (and the Borrower agrees that it shall use such proceeds) solely for
general corporate purposes of the Borrower and its Subsidiaries.

          SECTION 2.17. Increase in the Aggregate Commitments. (a) The Borrower
may, at any time but in any event not more than three times in any calendar year
prior to the Termination Date, by notice to the Agent, request that the
aggregate amount of the Commitment be increased by an amount of $10,000,000 or
an integral multiple thereof (each a "Commitment Increase") to be effective as
of a date that is at least 60 days prior to the scheduled Termination Date then
in effect (the "Increase Date") as specified in the related notice to the Agent;
provided, however that (i) in no event shall the aggregate amount of the
Commitments at any time exceed $400,000,000 and (ii) on the date of any request
by the Borrower for a Commitment Increase and on the related Increase Date, the
applicable conditions set forth in Article III shall be satisfied.

          (b) The Agent shall promptly notify the Lenders of a request by the
Borrower for a Commitment Increase, which notice shall include (i) the proposed
amount of such requested Commitment Increase, (ii) the proposed Increase Date
and (iii) the date by which Lenders wishing to participate in the Commitment
Increase must commit to an increase in the amount of their respective
Commitments (the "Commitment Date"). Each Lender that is willing to participate
in such requested Commitment Increase (each an "Increasing Lender") shall, in
its sole discretion, give written notice to the Agent on or prior to the
Commitment Date of the amount by which it is willing to increase its Commitment.
If the Lenders notify the Agent that they are willing to increase the amount of
their respective Commitments by an aggregate amount that exceeds the amount of
the requested Commitment Increase, the requested Commitment Increase shall be
allocated among the Lenders willing to participate therein in such amounts as
are agreed between the Borrower and the Agent.

          (c) Promptly following each Commitment Date, the Agent shall notify
the Borrower as to the amount, if any, by which the Lenders are willing to
participate in the requested Commitment Increase. If the aggregate amount by
which the Lenders are willing to participate in any requested Commitment
Increase on any such Commitment Date is less than the requested Commitment
Increase, then the Borrower may extend offers to one or more Eligible Assignees
to participate in any portion of the requested Commitment Increase that has not
been committed to by the Lenders as of the applicable Commitment Date; provided,
however, that the Commitment of each such Eligible Assignee shall be in an
amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof.

          (d) On each Increase Date, each Eligible Assignee that accepts an
offer to participate in a requested Commitment Increase in accordance with
Section 2.17(b) (each such Eligible Assignee and each Eligible Assignee that
agrees to an extension of the Termination Date in accordance with Section
2.18(c), an "Assuming Lender") shall become a Lender party to this Agreement as
of such Increase Date and the Commitment of each

                                       17

<PAGE>

Increasing Lender for such requested Commitment Increase shall be so increased
by such amount (or by the amount allocated to such Lender pursuant to the last
sentence of Section 2.17(b)) as of such Increase Date; provided, however, that
the Agent shall have received on or before such Increase Date the following,
each dated such date:

          (i)   (A) certified copies of resolutions of the Board of Directors of
     the Borrower or the Executive Committee of such Board approving this
     Agreement after giving effect to the Commitment Increase and (B) an opinion
     of counsel for the Borrower (which may be in-house counsel), in
     substantially the form of Exhibit D hereto;

          (ii)  an assumption agreement from each Assuming Lender, if any, in
     form and substance satisfactory to the Borrower and the Agent (each an
     "Assumption Agreement"), duly executed by such Eligible Assignee, the Agent
     and the Borrower; and

          (iii) confirmation from each Increasing Lender of the increase in the
     amount of its Commitment in a writing satisfactory to the Borrower and the
     Agent.

On each Increase Date, upon fulfillment of the conditions set forth in the
immediately preceding sentence of this Section 2.17(d), (x) the Agent shall
notify the Lenders (including, without limitation, each Assuming Lender) and the
Borrower, on or before 1:00 P.M. (New York City time), by telecopier or telex,
of the occurrence of the Commitment Increase to be effected on such Increase
Date and shall record in the Register the relevant information with respect to
each Increasing Lender and each Assuming Lender on such date and (y) the
Borrower shall deliver to the Agent notice as required under Section 2.09 to
prepay Advances, and a Notice of Borrowing under Section 2.02, in each case such
that after giving effect to such repayment and such Borrowing each of the
Lenders shall have made Advances ratably in proportion to their respective
Commitments after giving effect to the Commitment Increase.

          SECTION 2.18. Extension of Termination Date. (a) At least 30 days but
not more than 45 days prior to the Termination Date, the Borrower, by written
notice to the Agent, may request an extension of the Termination Date in effect
at such time by 364 days from its then scheduled expiration; provided, however,
that the Borrower shall not have made the Term Loan Election for Advances
outstanding on such Termination Date prior to such time. The Agent shall
promptly notify each Lender of such request, and each Lender shall in turn, in
its sole discretion, not later than 20 days prior to the Termination Date,
notify the Borrower and the Agent in writing as to whether such Lender will
consent to such extension. If any Lender shall fail to notify the Agent and the
Borrower in writing of its consent to any such request for extension of the
Termination Date at least 20 days prior to the Termination Date, such Lender
shall be deemed to be a Non-Consenting Lender with respect to such request. The
Agent shall notify the Borrower not later than 15 days prior to the Termination
Date of the decision of the Lenders regarding the Borrower's request for an
extension of the Termination Date.

          (b)   If all the Lenders consent in writing to any such request in
accordance with subsection (a) of this Section 2.18, the Termination Date in
effect at such time shall, effective as at the Termination Date (the "Extension
Date"), be extended for 364 days; provided that on each Extension Date the
applicable conditions set forth in Article III shall be satisfied. If less than
all of the Lenders consent in writing to any such request in accordance with
subsection (a) of this Section 2.18, the Termination Date in effect at such time
shall, effective as at the applicable Extension Date and subject to subsection
(d) of this Section 2.18, be extended as to those Lenders that so consented
(each a "Consenting Lender") but shall not be extended as to any other Lender
(each a "Non-Consenting Lender"). To the extent that the Termination Date is not
extended as to any Lender pursuant to this Section 2.18 and the Commitment of
such Lender is not assumed in accordance with subsection (c) of this Section
2.18 on or prior to the applicable Extension Date, the Commitment of such
Non-Consenting Lender shall automatically terminate in whole on such unextended
Termination Date without any further notice or other action by the Borrower,
such Lender or any other Person; provided that such Non-Consenting Lender's
rights under Sections 2.11, 2.14 and 8.04, and its obligations under Section
7.05, shall survive the Termination Date for such Lender as to matters occurring
prior to such date. It is understood and agreed that no Lender shall have any
obligation whatsoever to agree to any request made by the Borrower for any
requested extension of the Termination Date.

                                       18

<PAGE>

          (c)   If less than all of the Lenders consent to any such request
pursuant to subsection (a) of this Section 2.18, the Agent shall promptly so
notify the Consenting Lenders, and each Consenting Lender may, in its sole
discretion, give written notice to the Agent not later than 10 days prior to the
Termination Date of the amount of the Non-Consenting Lenders' Commitments for
which it is willing to accept an assignment. If the Consenting Lenders notify
the Agent that they are willing to accept assignments of Commitments in an
aggregate amount that exceeds the amount of the Commitments of the
Non-Consenting Lenders, such Commitments shall be allocated among the Consenting
Lenders willing to accept such assignments in such amounts as are agreed between
the Borrower and the Agent. If after giving effect to the assignments of
Commitments described above there remains any Commitments of Non-Consenting
Lenders, the Borrower may arrange for one or more Consenting Lenders or other
Eligible Assignees as Assuming Lenders to assume, effective as of the Extension
Date, any Non-Consenting Lender's Commitment and all of the obligations of such
Non-Consenting Lender under this Agreement thereafter arising, without recourse
to or warranty by, or expense to, such Non-Consenting Lender; provided, however,
that the amount of the Commitment of any such Assuming Lender as a result of
such substitution shall in no event be less than $5,000,000 unless the amount of
the Commitment of such Non-Consenting Lender is less than $5,000,000, in which
case such Assuming Lender shall assume all of such lesser amount; and provided
further that:

          (i)   any such Consenting Lender or Assuming Lender shall have paid to
     such Non-Consenting Lender (A) the aggregate principal amount of, and any
     interest accrued and unpaid to the effective date of the assignment on, the
     outstanding Advances, if any, of such Non-Consenting Lender plus (B) any
     accrued but unpaid facility fees owing to such Non-Consenting Lender as of
     the effective date of such assignment;

          (ii)  all additional costs reimbursements, expense reimbursements and
     indemnities payable to such Non-Consenting Lender, and all other accrued
     and unpaid amounts owing to such Non-Consenting Lender hereunder, as of the
     effective date of such assignment shall have been paid to such
     Non-Consenting Lender; and

          (iii) with respect to any such Assuming Lender, the applicable
     processing and recordation fee required under Section 8.07(a) for such
     assignment shall have been paid;

provided further that such Non-Consenting Lender's rights under Sections 2.11,
2.14 and 8.04, and its obligations under Section 7.05, shall survive such
substitution as to matters occurring prior to the date of substitution. At least
three Business Days prior to any Extension Date, (A) each such Assuming Lender,
if any, shall have delivered to the Borrower and the Agent an Assumption
Agreement, duly executed by such Assuming Lender, such Non-Consenting Lender,
the Borrower and the Agent, (B) any such Consenting Lender shall have delivered
confirmation in writing satisfactory to the Borrower and the Agent as to the
increase in the amount of its Commitment and (C) each Non-Consenting Lender
being replaced pursuant to this Section 2.18 shall have delivered to the Agent
any Note or Notes held by such Non-Consenting Lender. Upon the payment or
prepayment of all amounts referred to in clauses (i), (ii) and (iii) of the
immediately preceding sentence, each such Consenting Lender or Assuming Lender,
as of the Extension Date, will be substituted for such Non-Consenting Lender
under this Agreement and shall be a Lender for all purposes of this Agreement,
without any further acknowledgment by or the consent of the other Lenders, and
the obligations of each such Non-Consenting Lender hereunder shall, by the
provisions hereof, be released and discharged.

          (d)   If (after giving effect to any assignments or assumptions
pursuant to subsection (c) of this Section 2.18) Lenders having Commitments
equal to at least 50% of the Commitments in effect immediately prior to the
Extension Date consent in writing to a requested extension (whether by execution
or delivery of an Assumption Agreement or otherwise) not later than one Business
Day prior to such Extension Date, the Agent shall so notify the Borrower, and,
subject to the satisfaction of the applicable conditions in Article III, the
Termination Date then in effect shall be extended for the additional 364-day
period as described in subsection (a) of this Section 2.18, and all references
in this Agreement, and in the Notes, if any, to the "Termination Date" shall,
with respect to each Consenting Lender and each Assuming Lender for such
Extension Date, refer to the Termination Date as so extended. Promptly following
each Extension Date, the Agent shall notify the Lenders (including, without
limitation, each Assuming Lender) of the extension of the scheduled Termination
Date in effect immediately prior

                                       19

<PAGE>

thereto and shall thereupon record in the Register the relevant information with
respect to each such Consenting Lender and each such Assuming Lender.

                                   ARTICLE III

                     CONDITIONS TO EFFECTIVENESS AND LENDING

          SECTION 3.01. Conditions Precedent to Effectiveness of Section 2.01.
Section 2.01 of this Agreement shall become effective on and as of the first
date (the "Effective Date") on which the following conditions precedent have
been satisfied:

          (a)   There shall have occurred no Material Adverse Change since
     December 31, 2001.

          (b)   There shall exist no action, suit, investigation, litigation or
     proceeding affecting the Borrower or any of its Subsidiaries pending or
     threatened before any court, governmental agency or arbitrator that (i)
     could be reasonably likely to have a Materially Adverse Effect other than
     the matters described in Item 4.01(f) ("Litigation") of the Disclosure
     Schedule or (ii) purports to affect the legality, validity or
     enforceability of this Agreement or any Note or the consummation of the
     transactions contemplated hereby.

          (c)   Nothing shall have come to the attention of the Lenders during
     the course of their due diligence investigation to lead them to believe
     that the Information Memorandum was or has become misleading, incorrect or
     incomplete in any material respect; without limiting the generality of the
     foregoing, the Lenders shall have been given such access to the management,
     records, books of account, contracts and properties of the Borrower and its
     Subsidiaries as they shall have requested.

          (d)   All governmental and third party consents and approvals
     necessary in connection with the transactions contemplated hereby shall
     have been obtained (without the imposition of any conditions that are not
     acceptable to the Lenders) and shall remain in effect, and no law or
     regulation shall be applicable in the reasonable judgment of the Lenders
     that restrains, prevents or imposes materially adverse conditions upon the
     transactions contemplated hereby.

          (e)   The Borrower shall have notified each Lender and the Agent in
     writing as to the proposed Effective Date.

          (f)   The Borrower shall have paid all accrued fees of the Agent and
     the Lenders and all accrued expenses of the Agent (including the accrued
     fees and expenses of counsel to the Agent).

          (g)   On the Effective Date, the following statements shall be true
     and the Agent shall have received for the account of each Lender a
     certificate signed by a duly authorized officer of the Borrower, dated the
     Effective Date, stating that:

                (i)   The representations and warranties contained in Section
          4.01 are correct on and as of the Effective Date, and

                (ii)  No event has occurred and is continuing that constitutes a
          Default.

          (h)   The Agent shall have received on or before the Effective Date
     the following, each dated such day, in form and substance satisfactory to
     the Agent and (except for the Notes) in sufficient copies for each Lender:

                (i)   The Notes to the order of the Lenders to the extent
          requested by any Lender pursuant to Section 2.15.

                                       20

<PAGE>

                (ii)  Certified copies of the resolutions of the Board of
          Directors of each Loan Party approving each Loan Document to which it
          is or is to be a party, and of all documents evidencing other
          necessary corporate action and governmental approvals, if any, with
          respect to the Loan Documents.

                (iii) A certificate of the Secretary or an Assistant Secretary
          of each Loan Party certifying the names and true signatures of the
          officers of such Loan Party authorized to sign each Loan Document to
          which it is or is to be a party and the other documents to be
          delivered hereunder.

                (iv)  The Subsidiary Guaranty, duly executed by each Person that
          is a Significant Subsidiary as of the Effective Date.

                (v)   The Subordination Agreement duly executed by the Borrower
          and each Subsidiary which, as of the Effective Date, is expected to
          make any loans to any Guarantor.

                (vi)  A favorable opinion of Rowland H. Burns, Jr., Senior
          Counsel for the Borrower, substantially in the form of Exhibit D
          hereto and as to such other matters as any Lender through the Agent
          may reasonably request.

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

          (i)   The termination of the commitments of the lenders and the
     payment in full of all Indebtedness outstanding under the $400,000,000
     Amended and Restated Senior Revolving Loan Agreement dated as of September
     21, 2001 among the Borrower, the lenders parties thereto, Dresdner Bank AG,
     New York and Grand Cayman Branches, Mellon Bank, N.A. and The Bank of Nova
     Scotia, as syndication agents, and Citibank, N.A, as administrative agent.
     By execution of this Agreement, each of the Lenders that is a lender under
     the credit agreement referred to above hereby waives any requirement set
     forth in such credit agreement of prior notice to the termination of their
     commitments thereunder.

          SECTION 3.02. Conditions Precedent to Each Borrowing, Term Loan
Conversion Date, Commitment Increase and Extension Date. The obligation of each
Lender to make an Advance on the occasion of each Borrowing, the Term Loan
Election, each Commitment Increase and each extension of Commitments pursuant to
Section 2.18 shall be subject to the conditions precedent that the Effective
Date shall have occurred and on the date of such Borrowing, the Term Loan
Election, the applicable Increase Date or the applicable Extension Date (a) the
following statements shall be true (and each of the giving of the applicable
Notice of Borrowing the Term Loan Election, request for Commitment Increase,
request for Commitment Extension and the acceptance by the Borrower of the
proceeds of such Borrowing shall constitute a representation and warranty by the
Borrower that on the date of such Borrowing, the Term Loan Election, such
Increase Date or such Extension Date such statements are true):

          (i)   the representations and warranties contained in Section 4.01 are
     correct on and as of such date, before and after giving effect to such
     Borrowing, the Term Loan Election, such Commitment Increase or such
     Extension Date and to the application of the proceeds therefrom, as though
     made on and as of such date, and

          (ii)  no event has occurred and is continuing, or would result from
     such Borrowing, the Term Loan Election, such Commitment Increase or such
     Extension Date or from the application of the proceeds therefrom, that
     constitutes a Default;

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

                                       21

<PAGE>

          SECTION 3.03. Determinations Under Section 3.01. For purposes of
determining compliance with the conditions specified in Section 3.01, each
Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to the Lenders unless an officer
of the Agent responsible for the transactions contemplated by this Agreement
shall have received notice from such Lender prior to the date that the Borrower,
by notice to the Lenders, designates as the proposed Effective Date, specifying
its objection thereto. The Agent shall promptly notify the Lenders of the
occurrence of the Effective Date.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

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

          (a)   Each Loan Party is a corporation validly organized and existing
     and in good standing under the laws of the state of its incorporation, is
     duly qualified to do business and in good standing as a foreign corporation
     in each jurisdiction where the nature of its business makes such
     qualification necessary and where the failure to so qualify would
     reasonably be expected to have a Materially Adverse Effect and has full
     power and authority to own and hold under lease its property and conduct
     its business substantially as presently conducted by it. Each Loan Party
     has full power and authority to enter into and to perform its obligations
     under this Agreement and each Loan Document to which each is a party and to
     obtain the Advances hereunder, in the case of the Borrower.

          (b)   The execution and delivery by each Loan Party of this Agreement
     and each Loan Document executed by it and the performance by each of its
     respective obligations hereunder and thereunder and the borrowings
     hereunder by the Borrower have been duly authorized by all necessary
     corporate action, do not require any Approval, do not and will not conflict
     with, result in any violation of, or constitute any default under, any
     provision of any Organic Document or material Contractual Obligation of
     such Loan Party (or any other material Contractual Obligation) or any
     present law or governmental regulation or court decree or order applicable
     to any Loan Party and will not result in or require the creation or
     imposition of any Lien in any of their respective properties pursuant to
     the provisions of any Contractual Obligation.

          (c)   This Agreement is, and each Loan Document executed by any Loan
     Party will on the due execution and delivery thereof be, the legal, valid
     and binding obligation of such Loan Party enforceable in accordance with
     its terms, subject, as to enforcement, only to bankruptcy, insolvency,
     reorganization, moratorium or other similar laws at the time in effect
     affecting the enforceability of the rights of creditors generally, and by
     general equitable principles.

          (d)   All balance sheets, statements of operations, of total owners'
     equity and of changes in cash flows and other financial information of the
     Borrower and the Consolidated Subsidiaries which have been or shall
     hereafter be furnished by or on behalf of the Borrower for the purposes of
     or in connection with this Agreement or any transaction contemplated hereby
     pursuant to Section 5.01(a)(i) or Section 5.01(a)(ii) (except Section
     5.01(a)(i)(C)) have been or will be prepared in accordance with GAAP
     consistently applied throughout the periods involved (except as disclosed
     therein), and, in the case of information relating to coal reserves, have
     been or will be prepared in accordance with all relevant rules and
     regulations promulgated by the SEC, as in effect from time to time, and do
     or will present fairly the consolidated financial condition of the
     corporations covered thereby as at the dates thereof and the results of
     their operations for the periods then ended and the consolidated statements
     of earnings, of operations and of total owners' equity, for each of the
     fiscal periods then ended, of the Borrower and the Consolidated
     Subsidiaries (or, in the case of any such balance sheets or statements
     prepared prior to the date hereof, of the Borrower and its Consolidated
     Subsidiaries). Since December 31, 2001, there has been no occurrence which,
     individually or in the aggregate, would reasonably be expected to have a
     Materially Adverse Effect. Except as disclosed in Item 4.01(f)
     ("Litigation") of the Disclosure Schedule, neither the Borrower nor the
     Consolidated Subsidiaries have any material contingent liabilities
     (including any liability pursuant to the

                                       22

<PAGE>

     Federal Black Lung Benefits Act of 1972, as in effect from time to time)
     not provided for or disclosed in the financial statements of the Borrower
     and the Consolidated Subsidiaries most recently delivered by or on behalf
     of the Borrower to the Lenders.

          (e)   Neither the Borrower nor any Subsidiary is in default,

          (i)   in the payment of (or in the performance of any material
     obligation applicable to) any Indebtedness outstanding in a principal
     amount exceeding $10,000,000 in the aggregate; or

          (ii)  under any law or governmental regulation or court decree or
     order which would reasonably be expected to have a Materially Adverse
     Effect.

          (f)   Except as described in Item 4.01(f) ("Litigation") of the
     Disclosure Schedule, no litigation, arbitration or governmental
     investigation or proceeding against the Borrower or any Subsidiary or to
     which any of the properties of any thereof is subject is pending or, to the
     knowledge of the Borrower, threatened which would reasonably be expected to
     result in a liability in excess of $10,000,000.

          (g)   Neither the Borrower nor any Subsidiary is engaged principally,
     or as one of its important activities, in the business of extending credit
     for the purpose of purchasing or carrying margin stock, and less than 25%
     of the assets of each consists of margin stock. Proceeds of Advances
     hereunder will be used in compliance with Regulation U of the F.R.S. Board
     or any regulations substituted therefor. Terms for which meanings are
     provided in Regulation U of the F.R.S. Board or any regulations substituted
     therefor, as from time to time in effect, are used in this Section with
     such meanings.

          (h)   Neither the Borrower nor any Subsidiary is an "investment
     company" within the meaning of the Investment Company Act of 1940, as
     amended, or a "holding company", or a "subsidiary company" of a "holding
     company", or an "affiliate" of a "holding company" or of a "subsidiary
     company" of a "holding company", within the meaning of the Public Utility
     Holding Company Act of 1935, as amended.

          (i)   Neither the Borrower nor any Subsidiary is a party or subject to
     any Contractual Obligation or Organic Document which would reasonably be
     expected to have a Materially Adverse Effect.

          (j)   The Borrower and all Subsidiaries have filed all tax returns and
     reports required by law to have been filed by them and have paid all taxes
     and governmental charges thereby shown to be owing, except any such taxes
     or charges which are being contested in good faith by appropriate
     proceedings and for which adequate reserves in accordance with GAAP shall
     have been set aside on their books.

          (k)   During the twelve-consecutive-month period prior to the
     Effective Date and prior to the date of any Borrowing hereunder, (a) no
     steps have been taken to terminate any Pension Plan the assets of which are
     insufficient to satisfy all benefit liabilities thereunder (as defined in
     section 4001(a)(16) of ERISA) for which the Borrower or any Subsidiary
     could be held liable, (b) no contribution failure has occurred with respect
     to any Pension Plan sufficient to give rise to a Lien under section 302(f)
     of ERISA and (c) none of the Borrower, any Subsidiary or any member of the
     Controlled Group of any of them has incurred or is reasonably likely to
     incur any Withdrawal Liability to any Multiemployer Plan. No condition
     exists or event or transaction has occurred with respect to any Pension
     Plan which might result in the incurrence by the Borrower or any Subsidiary
     of any material liability, fine or penalty. Neither the Borrower nor any
     Subsidiary has any contingent liability with respect to any post-retirement
     benefit under a Welfare Plan, other than liability for continuation
     coverage described in Part 6 of Subtitle B of Title I of ERISA.

          (l)   The Borrower has no other Subsidiaries or Significant
     Subsidiaries except those identified in Item 4.01(l) ("Existing
     Subsidiaries and Significant Subsidiaries") of the Disclosure Schedule or
     those acquired or created subsequent to the date hereof.

                                       23

<PAGE>

          (m)   The Borrower and each Subsidiary owns and possesses all such
     patents, patent rights, trademarks, trademark rights, trade names, trade
     name rights, service marks, service mark rights and copyrights as the
     Borrower considers necessary for the conduct of the businesses of the
     Borrower or such Subsidiary as now conducted without any infringement upon
     rights of others which would reasonably be expected to have a Materially
     Adverse Effect. There is no individual patent or patent license used by the
     Borrower or any Subsidiary in the conduct of its business the loss of which
     would reasonably be expected to have a Materially Adverse Effect.

          (n)   The Borrower and each Subsidiary has good and marketable title
     to or good leasehold interests in all of its material properties and
     assets, real and personal, of any nature whatsoever, free and clear of all
     Liens except as permitted pursuant to Section 5.02(b).

          (o)   All factual information heretofore or contemporaneously
     furnished by the Borrower to the Agent or the Lenders in connection with
     execution and delivery of this Agreement and the various transactions
     contemplated hereby, as supplemented from time to time and when taken as a
     whole, to the best of the Borrower's knowledge, has been, and all other
     such factual information hereafter furnished by the Borrower or any
     Subsidiary, as supplemented from time to time and when taken as a whole,
     will be, true and accurate in every material respect on the date as of
     which such information is dated or certified and as of the Effective Date
     and not incomplete by omitting to state any material fact necessary to make
     such information not misleading. All projections and pro forma financial
     information contained in any materials furnished by the Borrower or any
     Subsidiary to the Lender are based on good faith estimates and assumptions
     by the management of the Borrower or the applicable Subsidiary, it being
     recognized by the Lenders, however, that projections and statements as to
     future events are not to be viewed as fact and that actual results during
     the period or periods covered by any such projections or statements may
     differ from the projected results and that the differences may be material.

          (p)   (i)   No facility or property (including underlying groundwater)
     owned or leased by the Borrower or any Significant Subsidiary is out of
     compliance with any Environmental Law to the extent that such
     noncompliance, either singly or in the aggregate, has or could reasonably
     be expected to have a Materially Adverse Effect;

                (ii)  There are no pending or threatened

                      (A)   claims, complaints, notices or requests for
                information received by the Borrower or any Significant
                Subsidiary with respect to any alleged violation of any
                Environmental Law, or

                      (B)   complaints, notices or inquiries to the Borrower or
                any Significant Subsidiary regarding potential liability under
                any Environmental Law,

          in each case, which singly, or in the aggregate, have or could
          reasonably be expected to have a Materially Adverse Effect;

                (iii) There have been no Releases of Hazardous Materials at, on
          or under any property now or previously owned or leased by the
          Borrower or any Significant Subsidiary that, singly or in the
          aggregate, have, or could reasonably be expected to have, a Materially
          Adverse Effect;

                (iv)  The Borrower and the Significant Subsidiaries have been
          issued and are in material compliance with all material permits,
          certificates, approvals, licenses and other authorizations relating to
          environmental matters and necessary or desirable for their businesses;

                (v)   No property now or previously owned or leased by the
          Borrower or any Significant Subsidiary is listed or proposed for
          listing (with respect to owned property only) (i) on the CERCLIS or on
          any similar state list of sites requiring investigation or clean-up to
          the extent that such listing relates to liabilities, individually or
          in the aggregate, that could reasonably be

                                       24

<PAGE>

          expected to have a Materially Adverse Effect, or (ii) on the National
          Priorities List pursuant to CERCLA;

               (vi)   There are no underground storage tanks, active or
          abandoned, including petroleum storage tanks, on or under any property
          now or previously owned or leased by the Borrower or any Significant
          Subsidiary that, singly or in the aggregate, have, or could reasonably
          be expected to have, a Materially Adverse Effect;

               (vii)  Neither the Borrower nor any Significant Subsidiary has
          directly transported or directly arranged for the transportation of
          any Hazardous Material to any location which is listed or proposed for
          listing on the National Priorities List pursuant to CERCLA, on the
          CERCLIS or on any similar state list or which is the subject of
          federal, state or local enforcement actions or other investigations
          which may lead to material claims against the Borrower or such
          Significant Subsidiary for any remedial work, damage to natural
          resources or personal injury, including claims under CERCLA that,
          either singly or in the aggregate, have, or could reasonably be
          expected to have, a Materially Adverse Effect;

               (viii) There are no polychlorinated biphenyls or friable asbestos
          present at any property now or previously owned or leased by the
          Borrower or any Significant Subsidiary that, singly or in the
          aggregate, have, or could reasonably be expected to have, a Materially
          Adverse Effect;

               (ix)   No conditions exist at, on or under any property now or
          previously owned or leased by the Borrower or any Significant
          Subsidiary which, with the passage of time, or the giving of notice or
          both, would give rise to liability under any Environmental Law that,
          either singly or in the aggregate, have, or could reasonably be
          expected to have, a Materially Adverse Effect; and

               (x)    Neither the Borrower nor any Subsidiary owns or leases any
          "industrial establishment" (as such term is defined in the New Jersey
          Environmental Cleanup Responsibility Act, N.J.S.A. 13:1K-6, et seq.)
          in the State of New Jersey.

          (q)  As of the date of this Agreement, the Borrower is and will be
Solvent. As used in this Section, "Solvent" means the Borrower is able to pay
its debts as they become due in the usual course of business.

          (r)  Any Advance hereunder will be pari passu with all of Borrower's
other unsecured Indebtedness for Borrowed Money.

                                    ARTICLE V

                            COVENANTS OF THE BORROWER

          SECTION 5.01. Affirmative Covenants. So long as any Advance shall
remain unpaid or any Lender shall have any Commitment hereunder, the Borrower
will:

          (a)  Financial Information. The Borrower will furnish, or will cause
     to be furnished, to the Agent (in sufficient copies for each Lender) the
     following financial statements, reports and information:

               (i)    promptly when available and in any event within 90 days
          after the close of each Fiscal Year

                      (A)  a balance sheet at the close of such Fiscal Year, and
               statements of operations, of Total Owners' Equity and of cash
               flows for such Fiscal Year, of the Borrower and the Consolidated
               Subsidiaries certified without Impermissible

                                       25

<PAGE>

               Qualification by independent public accountants of recognized
               standing selected by the Borrower and reasonably acceptable to
               the Lenders,

                     (B)   a letter report of such accountants at the close of
               such Fiscal Year to the effect that they have reviewed the
               provisions of this Agreement and are not aware of any Default
               hereunder (insofar as any Default may relate to accounting
               matters) continuing at the end of such Fiscal Year, except such
               Default, if any, as may be disclosed in such statement,

                      (C)  a certificate of an Authorized Officer of the
               Borrower that no Default has occurred and is continuing, or
               specifying any such Default and the actions, if any, being taken
               by the Borrower with respect thereto,

                      (D)  a notice that the Borrower is in compliance with the
               requirements as stated under Section 5.02(l) Funded Debt Ratio
               and Section 5.02(m) Interest Coverage Ratio, setting forth in
               reasonable detail the calculations necessary to demonstrate
               compliance with Section 5.02(l) and (m); and

                      (E)  an amended Schedule II to this Agreement listing, as
               of the end of such Fiscal Year, each Significant Subsidiary;

               (ii)   promptly when available and in any event within 45 days
          after the close of each of the first three Fiscal Quarters of each
          Fiscal Year

                      (A)  a balance sheet at the close of such Fiscal Quarter
               and statements of operations, of total owners' equity and of
               changes in cash flows for the period commencing at the close of
               the previous Fiscal Year and ending with the close of such Fiscal
               Quarter, of the Borrower and the Consolidated Subsidiaries;

                      (B)  a notice that the Borrower is in compliance with the
               requirements as stated under Section 5.02(l) Funded Debt Ratio
               and Section 5.02(m) Interest Coverage Ratio, setting forth in
               reasonable detail the calculations necessary to demonstrate
               compliance with Section 5.02(l) and (m); and

                      (C)  a certificate of an Authorized Officer of the
               Borrower that no Default has occurred and is continuing, or
               specifying any such Default and the actions, if any, being taken
               by the Borrower with respect thereto,

               (iii)  promptly upon the incorporation or acquisition thereof,
          information regarding the creation or acquisition of any new
          Significant Subsidiary;

               (iv)   promptly after the sending or filing thereof, copies of
          all quarterly and annual reports and proxy solicitations that the
          Borrower sends to any of its securityholders, and copies of all
          reports on Form 8-K that the Borrower files with the Securities and
          Exchange Commission (other than reports on Form 8-K filed solely for
          the purpose of incorporating exhibits into a registration statement
          previously filed with the Securities and Exchange Commission); and

               (v)    such other information with respect to the financial
          condition, business, property, assets, revenues, and operations of the
          Borrower and the Subsidiaries as any Lender may from time to time
          reasonably request.

          Reports required to be delivered pursuant to clauses (i)(A), (ii)(A)
     and (iv) above shall be deemed to have been delivered on the date on which
     such report is posted on the SEC's website at www.sec.gov, and such posting
     shall be deemed to satisfy the reporting requirements of clauses (i)(A),
     (ii)(A) and (iv) above; provided that in every instance the Borrower shall
     provide paper copies of the certificate required by

                                       26

<PAGE>

     clauses (i)(C), (i)(D), (ii)(B) and (ii)(C) above to the Agent and each of
     the Lenders until such time as the Agent shall provide the Borrower written
     notice otherwise.

          (b)  Maintenance of Corporate Existences. Except as permitted by
     Section 5.02(c), the Borrower will cause to be done at all times all things
     necessary to maintain and preserve the corporate existences of the Borrower
     and each Significant Subsidiary, and to comply in all material respects
     with all applicable laws, rules, regulations and orders. Except as
     permitted by Section 5.02(c), the Borrower will continue to own and hold
     directly or indirectly, free and clear of all Liens (except as permitted by
     Section 5.02(b)), all of the outstanding ownership interest of each
     Subsidiary now owned or hereafter acquired.

          (c)  Foreign Qualification. The Borrower will, and will cause each
     Subsidiary to, cause to be done at all times all things necessary to be
     duly qualified to do business and in good standing as a foreign corporation
     in each jurisdiction where the nature of its business makes such
     qualification necessary and where the failure to so qualify would
     reasonably be expected to have a Materially Adverse Effect, and to comply
     in all material respects with all applicable laws, rules, regulations and
     orders.

          (d)  Payment of Taxes. The Borrower will, and will cause each
     Subsidiary to, pay and discharge, prior to becoming delinquent, all
     federal, state and local taxes, assessments and other governmental charges
     or levies against or on any of its property, as well as claims of any kind
     which, if unpaid, might become a Lien in a material amount upon any of its
     properties; provided, however, that the foregoing shall not require the
     Borrower or any Subsidiary to pay or discharge any such tax, assessment,
     charge, levy or other Lien so long as it shall contest the validity thereof
     in good faith by appropriate proceedings and shall set aside on its books
     adequate reserves in accordance with GAAP with respect thereto.

          (e)  Insurance. The Borrower will, and will cause each Subsidiary to,
     maintain or cause to be maintained through self-insurance and with
     responsible insurance companies insurance with respect to its properties
     and business against such casualties and contingencies and of such types
     and in such amounts as has been historically maintained by the Borrower and
     the Subsidiaries, or which is consistent with sound business practice in
     the reasonable opinion of the Borrower, and will, upon request of any
     Lender through the Agent, furnish to the Agent at reasonable intervals a
     certificate of an Authorized Officer setting forth the nature and extent of
     all insurance maintained by the Borrower and the Subsidiaries in accordance
     with this Section.

          (f)  Notice of Default, Litigation. The Borrower will give prompt
     notice (with a description in reasonable detail) to the Agent (in
     sufficient copies for each Lender) of:

               (i)   the occurrence of any Default or any Event of Default;

               (ii)  the occurrence of any litigation, arbitration or
          governmental investigation or proceeding not previously disclosed by
          the Borrower to the Agent which has been instituted or, to the
          knowledge of the Borrower, is threatened against the Borrower or any
          Subsidiary or to which any of their respective properties is subject
          which would reasonably be expected to result in a liability to the
          Borrower or any Subsidiary not covered by the Borrower's or such
          Subsidiary's insurers, as applicable, in excess of $10,000,000;

               (iii) any material development which shall occur in any
          litigation, arbitration or governmental investigation or proceeding
          previously disclosed by the Borrower to the Agent;

               (iv)  the occurrence of any event which would reasonably be
          expected to have a Materially Adverse Effect;

               (v)   the occurrence of (A) a Reportable Event with respect to
          any Pension Plan; (B) the institution of steps by the Borrower or any
          Subsidiary or any member of the Controlled Group of any of them to
          terminate, any Pension Plan where the unfunded liability is in excess
          of

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<PAGE>

          $10,000,000; or (C) a partial or complete withdrawal (as described in
          ERISA section 4203 or 4205) by the Borrower or any Subsidiary or any
          member of the Controlled Group of any of them from a Multiemployer
          Plan where the unfunded liability is in excess of $10,000,000; and

               (f)  the occurrence of (A) the institution of any steps by the
          PBGC to terminate any Pension Plan; (B) the failure to make a required
          contribution to any Pension Plan if such failure is sufficient to give
          rise to a Lien under section 302(f) of ERISA; (C) the adoption of an
          amendment or the application for a funding waiver that could result in
          a requirement that the Borrower or any Subsidiary furnish a bond or
          other security to the PBGC or to a Pension Plan pursuant to sections
          306 or 307 of ERISA; (D) the assertion of any claim with respect to
          any Pension Plan which could, if determined adversely, result in the
          incurrence by the Borrower or any Subsidiary of any material
          liability, fine or penalty; or (E) any material increase in the
          contingent liability of the Borrower or any Subsidiary with respect to
          post-retirement benefits under any Welfare Plan, as determined under
          Financial Accounting Standards Board No. 106.

          (g)  Performance of Loan Documents. The Borrower will, and will cause
     each Loan Party to, perform promptly and faithfully all of its obligations
     under each Loan Document executed by it.

          (h)  Books and Records. The Borrower will, and will cause each
     Subsidiary to, keep books and records reflecting all of its business
     affairs and transactions in accordance with GAAP and permit each Lender or
     any of its representatives, at reasonable times and intervals and as
     arranged through the Treasurer or chief legal officer of the Borrower, to
     visit all of its offices, discuss its financial matters with its officers
     and independent accountants, examine and photocopy extracts from (i) any of
     its financial books and records and (ii) any of its other corporate records
     other than such corporate records that are reasonably determined by the
     Borrower to be proprietary.

          (i)  Subsidiary Guaranty. The Borrower agrees to promptly notify the
     Agent each time a Subsidiary becomes a Significant Subsidiary and to cause
     such Significant Subsidiary to deliver promptly to the Agent a duly
     executed Subsidiary Guaranty along with an opinion of counsel and
     certificates of the type required by Section 3.01(h)(ii) and (iii) all in
     form and substance acceptable to the Agent.

          (j)  Environmental Covenant. The Borrower will, and will cause each
     Significant Subsidiary to,

               (i)   use and operate all of its facilities and properties in
          material compliance with all Environmental Laws, keep all necessary
          permits, approvals, certificates, licenses and other authorizations
          relating to environmental matters in effect and remain in material
          compliance therewith, and handle all Hazardous Materials in material
          compliance with all applicable Environmental Laws;

               (ii)  immediately notify the Agent and provide copies upon
          receipt of all material written claims, complaints, notices or
          inquiries relating to the condition of its facilities and properties
          or compliance with Environmental Laws, in each case which involve or
          could reasonably be expected to involve obligations of the Borrower or
          any Significant Subsidiary, as the case may be, in excess of
          $10,000,000; and

               (iii) provide such information and certifications which any
          Lender through the Agent may reasonably request from time to time to
          evidence compliance with this Section 5.01(j).

          SECTION 5.02. Negative Covenants. So long as any Advance shall remain
unpaid or any Lender shall have any Commitment hereunder, the Borrower will not:

          (a)  Indebtedness for Borrowed Money. The Borrower will not permit any
     Subsidiary to incur or permit to exist any Indebtedness for Borrowed Money,
     except (i) Indebtedness for Borrowed Money of any Significant Subsidiary to
     the Borrower or any Subsidiary which is subordinated to such Significant

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<PAGE>

     Subsidiary's obligations under the Subsidiary Guaranty pursuant to a
     Subordination Agreement; (ii) Indebtedness for Borrowed Money of any
     Subsidiary (other than a Significant Subsidiary) to any other Subsidiary or
     to the Borrower (iii) Indebtedness for Borrowed Money outstanding on the
     date hereof and listed in Item 5.02(a)(iii) of the Disclosure Schedule and
     refinancings thereof; provided that such Indebtedness for Borrowed Money is
     not increased as the result of such refinancing; (iv) additional unsecured
     Indebtedness for Borrowed Money of all Subsidiaries (other than Significant
     Subsidiaries) not to exceed $25,000,000 in the aggregate at any one time
     outstanding; (v) additional unsecured Indebtedness for Borrowed Money of
     any Subsidiary acquired with such indebtedness existing at the time of
     acquisition/merger of such Subsidiary and (vi) additional unsecured
     Indebtedness for Borrowed Money of any Subsidiary permitted in accordance
     with Section 5.02(i) hereof.

          (b)  Liens. The Borrower will not, and will not permit any Subsidiary
     to, create, incur, assume or suffer to exist any Lien upon any of its
     property or assets, whether now owned or hereafter acquired, except:

               (i)    Liens in favor of the Agent for the benefit of the
          Lenders;

               (ii)   Liens which were granted prior to the date hereof in (and
          only in) assets identified in Item 5.02(a)(iii) ("Ongoing
          Indebtedness") and Item 5.02(b)(ii) ("Liens") of the Disclosure
          Schedule;

               (iii)  Liens in (and only in) stock or assets permitted to be
          acquired under the terms of this Agreement granted to secure
          Indebtedness incurred at the time of such acquisition (or within one
          year thereof) to finance the acquisition of such stock or assets;
          provided, that the amount of Indebtedness secured thereby is not
          increased;

               (iv)   statutory and common law banker's Liens and rights of
          setoff on bank deposits;

               (v)    Liens for taxes, assessments or other governmental charges
          or levies not at the time delinquent or thereafter payable without
          penalty or being contested in good faith by appropriate proceedings
          and for which adequate reserves in accordance with GAAP shall have
          been set aside on its books;

               (vi)   Liens of carriers, warehousemen, mechanics, materialmen
          and landlords incurred in the ordinary course of business for sums not
          overdue or being contested in good faith by appropriate proceedings
          and for which adequate reserves in accordance with GAAP shall have
          been set aside on its books;

               (vii)  Liens incurred or existing in the ordinary course of
          business, consistent with past practice and not to secure Indebtedness
          for Borrowed Money, such as in connection with workers' compensation,
          unemployment insurance or other forms of governmental insurance or
          benefits, or to secure performance of tenders, statutory obligations,
          leases and contracts entered into in the ordinary course of business
          or to secure obligations on surety or appeal bonds;

               (viii) judgment Liens in existence less than 30 days after the
          entry thereof or with respect to which execution has been stayed or
          the payment of which is covered in full (subject to a customary
          deductible) by insurance;

               (ix)   Liens existing on any assets at the date of acquisition of
          such assets permitted to be acquired under the terms of this Agreement
          acquired after the date of this Agreement;

               (x)    Liens granted to secure Indebtedness incurred to refinance
          any Indebtedness secured by Liens permitted by clauses (ii), (iii) and
          (ix) of this Section 5.02(b); provided, that such Indebtedness is not
          increased as the result of such refinancing and that such Liens attach
          only to the same assets subject to Lien prior to the refinancing; and

                                       29

<PAGE>

               (xi)   other Liens granted to secure Indebtedness and Guarantees
          made by the Borrower or any of its Subsidiaries in an aggregate amount
          of not more than $50,000,000.

          (c)  Consolidation, Merger. The Borrower will not, and will not permit
     any Subsidiary to, consolidate with or merge into or with any other
     corporation, or sell, transfer, lease or sell and lease back or otherwise
     dispose of all or substantially all of its assets to any Person, without
     prior written consent of the Lenders, except for (i) the voluntary
     liquidation or dissolution of any wholly-owned Subsidiary into another
     Subsidiary or into the Borrower, the merger of any Person with a
     Subsidiary, provided that after giving effect to such merger, such
     Subsidiary remains a "Subsidiary" as defined herein, or the merger of any
     Subsidiary into another Subsidiary or into the Borrower provided that in
     the case of any such merger into the Borrower, the Borrower is the
     surviving corporation and (ii) the sale, transfer, lease or sale and lease
     back or other disposition of all or substantially all of the assets of one
     or more Subsidiaries not to exceed in any calendar year an aggregate total
     of 10% of the consolidated assets of the Borrower and the Consolidated
     Subsidiaries.

          (d)  Transactions with Affiliates. The Borrower will not, and will not
     permit any Significant Subsidiary to, enter into, or cause, suffer or
     permit to exist any transaction, arrangement or contract with any of its
     Affiliates (except for Significant Subsidiaries) which would not be entered
     into by a prudent Person in the position of the Borrower or such
     Subsidiary, or which is on terms which are not on an arms-length basis.

          (e)  Sale or Discount of Receivables. The Borrower will not, and will
     not permit any Subsidiary to, directly or indirectly, sell with recourse
     any of its notes or accounts receivable in excess of $200,000,000 in the
     aggregate at any one time, other than those arising from the export outside
     of the United States of goods or services.

          (f)  Dividends. The Borrower shall not pay any dividends to its
     respective shareholders upon the occurrence, or during the continuance of,
     any Default. No dividend shall be paid by Borrower other than in accordance
     with all applicable provisions of law including, without limitation, the
     Delaware General Corporation Law, as amended.

          (g)  Inconsistent Agreements. The Borrower will not, and will not
     permit any Subsidiary to, enter into any agreement containing any provision
     which would be violated or breached by any borrowing by the Borrower made
     hereunder or by the performance by the Borrower or any other Loan Party of
     their respective obligations hereunder or under any Loan Document.

          (h)  Advances, Loans and Investments. The Borrower will not, and will
     not permit any Subsidiary to, make or permit to remain outstanding any loan
     or advance to, or own, purchase or acquire any stock, obligations or
     securities of, or any other interest in, or make any capital contribution
     to, any Person, except:

               (i)   advances or extensions of credit on terms customary in the
          industry involved in the form of accounts or other receivables
          incurred, and investments, Advances and advances made in settlement of
          such accounts receivable, all in the ordinary course of business;

               (ii)  Permitted Investments;

               (iii) investments, loans or advances to or in the Borrower or in
          any Subsidiary;

               (iv)  loans or advances to employees of the Borrower or any
          Subsidiary in the ordinary course of their respective businesses,
          consistent with past practices, not to exceed $1,000,000 in aggregate
          amount at any time outstanding;

               (v)   investments customarily used in the management of employee
          benefit trust funds; and

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<PAGE>

               (vi)   other investments not exceeding $100,000,000 in the
          aggregate at any time outstanding.

          (i)  Guaranties. Except as described in Item 5.02(i) ("Guaranties") of
     the Disclosure Schedule, neither the Borrower nor any Subsidiary will enter
     into any Guaranty prior to the Termination Date, except for

               (i)    Guaranties relating to operating and capital leases on
          which the Borrower or such Subsidiary is lessee;

               (ii)   any Subsidiary Guaranty;

               (iii)  Guaranties (other than Guaranties described in clause (ii)
          of this Section 5.02(i) and Guaranties described in Item 5.02(i) of
          the Disclosure Schedule) not to exceed $50,000,000 in aggregate amount
          at any time outstanding of Indebtedness for Borrowed Money;

               (iv)   contingent obligations arising or existing as the result
          of the sale or other disposition of assets;

               (v)    Guaranties by the Borrower of any Indebtedness for
          Borrowed Money of any Subsidiary permitted under Section 5.02(a);

               (vi)   Guaranties by the Borrower not to exceed $50,000,000 in
          aggregate amount at any time outstanding of any obligations of
          Affiliates other than Indebtedness for Borrowed Money;

               (vii)  Guarantees by the Borrower or any Subsidiary of any
          obligation of the Borrower, any Subsidiary or other Guarantor incurred
          or existing in the ordinary course of business, consistent with past
          practice and not to secure Indebtedness for Borrowed Money other than
          Commercial Paper Indebtedness, such as in connection with workers'
          compensation, unemployment insurance or other forms of governmental
          insurance or benefits, or to secure performance of tenders, statutory
          obligations, leases and contracts entered into in the ordinary course
          of business or to secure obligations on surety or appeal bonds;

               (viii) Guarantees relating to Commercial Paper Indebtedness; and

               (ix)   Guarantees by any Subsidiary of any obligation of the
          Borrower provided that such Subsidiary has duly executed and delivered
          a Subsidiary Guaranty.

          (j)  Securities. The Borrower will not, and will not permit any
     Subsidiary to, make any distributions, redemptions, prepayments,
     defeasances or repurchases of its securities upon the occurrence or during
     the continuance of any Default. The Borrower will not permit any
     Significant Subsidiary to issue any capital stock to any Person other than
     any other Significant Subsidiary or the Borrower.

          (k)  Business Activities. The Borrower will not, and will not permit
     any Significant Subsidiary to:

               (i)    operate its business other than in the ordinary and usual
          course; and

               (ii)   engage in any type of business except the businesses of
          the type or substantially related to the type so operated by the
          Borrower or such Significant Subsidiary on the Effective Date.

          (l)  Funded Debt Ratio. The Borrower shall maintain a ratio of the
     Borrower's total Indebtedness for Borrowed Money as at the last day of each
     calendar quarter to total earnings for the last

                                       31

<PAGE>

     four consecutive complete calendar quarters (before interest, taxes,
     depreciation and amortization and excluding any extraordinary gains or
     losses) of not more than 3.25:1 until December 31, 2002 and 3.0:1
     thereafter.

          (m)  Interest Coverage Ratio. The Borrower shall maintain a ratio of
     the Borrower's total earnings for the last four consecutive complete
     calendar quarters (before interest, taxes, depreciation and amortization
     and excluding any extraordinary gains or losses) to the total interest
     payable on, and amortization of debt discount in respect of, all
     Indebtedness for Borrowed Money for the last four consecutive complete
     calendar quarters of not less than 4.5:1.

                                   ARTICLE VI

                                EVENTS OF DEFAULT

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

          (a)  Non-Payment of Liabilities. The Borrower shall default in the
     payment or prepayment when due, whether at stated maturity, by
     acceleration, or otherwise, of any principal of any Advance, or the
     Borrower shall default (and such default shall continue unremedied for a
     period of three days) in the payment when due, whether at stated maturity,
     by acceleration, or otherwise, of interest on any Advance, of any fee or of
     any other Liability.

          (b)  Non-Performance of Certain Covenants. The Borrower shall default
     in the due performance and observance of any of its obligations under
     Section 5.01 of this Agreement and such default shall continue unremedied
     for 10 days after notice thereof shall have been given to the Borrower by
     the Agent or any Lender or the Borrower shall default in the due
     performance and observance (unless such default is capable of remedy and is
     remedied to the satisfaction of the Required Lenders within 10 days of such
     default) of any of its obligations under Section 5.02 of this Agreement.

          (c)  Certain Defaults on Other Indebtedness for Borrowed Money. Any
     default shall occur under the terms applicable to any Indebtedness for
     Borrowed Money outstanding in a principal amount exceeding individually or
     in the aggregate $25,000,000 of the Borrower or any Significant Subsidiary
     representing any borrowing or financing or arising under any other lease or
     material agreement, and such default shall:

               (i)    consist of the failure to pay Indebtedness for Borrowed
          Money at the maturity thereof; or

               (ii)   continue without being cured or waived (so long as such
          cure or waiver did not involve any payment of principal of such
          Indebtedness for Borrowed Money) for a period of time sufficient to
          permit acceleration of Indebtedness for Borrowed Money.

          (d)  Bankruptcy, Insolvency. The Borrower or any Significant
     Subsidiary shall become insolvent or generally fail to pay, or admit in
     writing its inability to pay, debts as they become due; or the Borrower or
     any Significant Subsidiary shall apply for, consent to, or acquiesce in,
     the appointment of a trustee, receiver, sequestrator or other custodian for
     the Borrower or such Significant Subsidiary or any property of any thereof,
     or make a general assignment for the benefit of creditors; or, in the
     absence of such application, consent or acquiescence, a trustee, receiver,
     sequestrator or other custodian shall be appointed for the Borrower or any
     Significant Subsidiary or for a substantial part of the property of any
     thereof and not be discharged within 60 days; or any bankruptcy,
     reorganization, debt arrangement, or other case or proceeding under any
     bankruptcy or insolvency law, or any dissolution, winding up or liquidation
     proceeding, shall be commenced in respect of the Borrower or any
     Significant Subsidiary, and, if such case or proceeding is not commenced by
     the Borrower or such Significant Subsidiary, such case or proceeding shall
     be consented to or acquiesced in by the Borrower or such Significant
     Subsidiary or shall result in the

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<PAGE>

entry of an order for relief or shall remain for 60 days undismissed; or the
Borrower or any Significant Subsidiary shall take any corporate action to
authorize, or in furtherance of, any of the foregoing.

     (e) Control of the Borrower. Any Change in Control shall occur on or after
the Effective Date.

     (f) Non-Performance of Other Obligations. Any Loan Party shall default in
the due performance and observance of any other agreement, applicable to it,
contained in this Agreement or in any other Loan Document, and such default
shall continue unremedied for a period of 30 days after notice thereof shall
have been given to the Borrower by the Agent or any Lender.

     (g) Breach of Representation or Warranty. Any representation or warranty of
any Loan Party in any Loan Document or in any writing furnished after the date
of this Agreement by or on behalf of any Loan Party for the purposes of or in
connection with this Agreement is or shall be incorrect in any material respect
when made or deemed made.

     (h) Pension Plans. Any of the following events shall occur with respect to
any Pension Plan

         (i)  the institution of any steps by the Borrower, any Subsidiary, any
     member of the Controlled Group of any of them or any other Person to
     terminate a Pension Plan if, as a result of such termination, the Borrower
     or any such member could be required to make a contribution to such Pension
     Plan, or could reasonably expect to incur a liability or obligation, in
     excess of $25,000,000; or

         (ii) a contribution failure occurs with respect to any Pension Plan
     sufficient to give rise to a Lien under Section 302(f) of ERISA.

     (i) Judgments. A final judgment to the extent not covered by insurance
that, with other such outstanding final judgments against the Borrower and the
Subsidiaries exceeds an aggregate of $10,000,000 shall be rendered against the
Borrower or any Subsidiary and if, within 60 days after entry thereof, such
judgment shall not have been discharged or otherwise satisfied or execution
thereof stayed pending appeal, or if, within 60 days after the expiration of any
such stay, such judgment shall not have been discharged or otherwise satisfied.

     (j) Subsidiary Guaranty and Subordination Agreement. The Subsidiary
Guaranty or any Subordination Agreement shall cease to be in full force and
effect or any Loan Party or any Person by, through or on behalf of any Loan
Party shall contest in any manner in writing the validity, binding nature or
enforceability of either the Subsidiary Guaranty or any Subordination Agreement.

     (k) Multiemployer Plans. The Borrower, any Subsidiary or any member of the
Controlled Group of any of them shall incur, or shall be reasonably likely to
incur liability in excess of $10,000,000 in the aggregate as a result of one or
more of the following: (i) the partial or complete withdrawal of the Borrower,
any Subsidiary or any member of the Controlled Group of any of them from a
Multiemployer Plan; or (ii) the reorganization or termination of a Multiemployer
Plan.

then, and in any such event, the Agent (i) shall at the request, or may with the
consent, of the Required Lenders, by notice to the Borrower, declare the
obligation of each Lender to make Advances to be terminated, whereupon the same
shall forthwith terminate, and (ii) shall at the request, or may with the
consent, of the Required Lenders, by notice to the Borrower, declare the
Advances, all interest thereon and all other amounts payable under this
Agreement to be forthwith due and payable, whereupon the Advances, all such
interest and all such amounts shall become and be forthwith due and payable,
without presentment, demand, protest or further notice of any kind, all of which
are hereby expressly waived by the Borrower; provided, however, that in the
event of an actual or deemed entry of an order for relief with respect to the
Borrower under the Federal Bankruptcy Code, (A) the obligation of each Lender to
make Advances shall automatically be terminated and (B) the Advances, all such
interest and all

                                       33

<PAGE>

such amounts shall automatically become and be due and payable, without
presentment, demand, protest or any notice of any kind, all of which are hereby
expressly waived by the Borrower.

                                   ARTICLE VII

                                    THE AGENT

         SECTION 7.01. Authorization and Action. Each Lender hereby appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers and discretion under this Agreement as are delegated to the Agent by
the terms hereof, together with such powers and discretion as are reasonably
incidental thereto. As to any matters not expressly provided for by this
Agreement (including, without limitation, enforcement or collection of the
Notes), the Agent shall not be required to exercise any discretion or take any
action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of
the Required Lenders, and such instructions shall be binding upon all Lenders
and all holders of Notes; provided, however, that the Agent shall not be
required to take any action that exposes the Agent to personal liability or that
is contrary to this Agreement or applicable law. The Agent agrees to give to
each Lender prompt notice of each notice given to it by the Borrower pursuant to
the terms of this Agreement.

         SECTION 7.02. Agent's Reliance, Etc. Neither the Agent nor any of its
directors, officers, agents or employees shall be liable for any action taken or
omitted to be taken by it or them under or in connection with this Agreement,
except for its or their own gross negligence or willful misconduct. Without
limitation of the generality of the foregoing, the Agent: (i) may treat the
Lender that made any Advance as the holder of the Debt resulting therefrom until
the Agent receives and accepts an Assumption Agreement entered into by an
Assuming Lender as provided in Section 2.17 or 2.18, as the case may be, or an
Assignment and Acceptance entered into by such Lender, as assignor, and an
Eligible Assignee, as assignee, as provided in Section 8.07; (ii) may consult
with legal counsel (including counsel for the Borrower), independent public
accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken in good faith by it in accordance with the
advice of such counsel, accountants or experts; (iii) makes no warranty or
representation to any Lender and shall not be responsible to any Lender for any
statements, warranties or representations (whether written or oral) made in or
in connection with this Agreement; (iv) shall not have any duty to ascertain or
to inquire as to the performance, observance or satisfaction of any of the
terms, covenants or conditions of this Agreement on the part of the Borrower or
the existence at any time of any Default or to inspect the property (including
the books and records) of the Borrower; (v) shall not be responsible to any
Lender for the due execution, legality, validity, enforceability, genuineness,
sufficiency or value of, or the perfection or priority of any lien or security
interest created or purported to be created under or in connection with, this
Agreement or any other instrument or document furnished pursuant hereto; and
(vi) shall incur no liability under or in respect of this Agreement by acting
upon any notice, consent, certificate or other instrument or writing (which may
be by telecopier, telegram or telex) believed by it to be genuine and signed or
sent by the proper party or parties.

         SECTION 7.03. Citibank and Affiliates. With respect to its Commitment,
the Advances made by it and the Note issued to it, Citibank shall have the same
rights and powers under this Agreement as any other Lender and may exercise the
same as though it were not the Agent; and the term "Lender" or "Lenders" shall,
unless otherwise expressly indicated, include Citibank in its individual
capacity. Citibank and its Affiliates may accept deposits from, lend money to,
act as trustee under indentures of, accept investment banking engagements from
and generally engage in any kind of business with, the Borrower, any of its
Subsidiaries and any Person who may do business with or own securities of the
Borrower or any such Subsidiary, all as if Citibank were not the Agent and
without any duty to account therefor to the Lenders. The Agent shall have no
duty to disclose information obtained or received by it or any of its Affiliates
relating to the Borrower or its Subsidiaries to the extent such information was
obtained or received in any capacity other than as Agent.

         SECTION 7.04. Lender Credit Decision. Each Lender acknowledges that it
has, independently and without reliance upon the Agent or any other Lender and
based on the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges 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

                                       34

<PAGE>

appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement.

         SECTION 7.05. Indemnification. (a) The Lenders agree to indemnify the
Agent (to the extent not reimbursed by the Borrower), ratably according to the
respective principal amounts of the Advances then owed to each of them (or if no
Advances are at the time outstanding, ratably according to the respective
amounts of their Commitments), from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever that may be imposed
on, incurred by, or asserted against the Agent in any way relating to or arising
out of this Agreement or any action taken or omitted by the Agent under this
Agreement (collectively, the "Indemnified Costs"), provided that no Lender shall
be liable for any portion of the Indemnified Costs resulting from the Agent's
gross negligence or willful misconduct. Without limitation of the foregoing,
each Lender agrees to reimburse the Agent promptly upon demand for its ratable
share of any out-of-pocket expenses (including reasonable counsel fees) incurred
by the Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement, to the extent that the Agent
is not reimbursed for such expenses by the Borrower. In the case of any
investigation, litigation or proceeding giving rise to any Indemnified Costs,
this Section 7.05 applies whether any such investigation, litigation or
proceeding is brought by the Agent, any Lender or a third party.

         (b) For purposes of this Section 7.05, the Lenders' respective ratable
shares of any amount shall be determined, at any time, according to the sum of
(i) the aggregate principal amount of the Advances outstanding at such time and
owing to the respective Lenders and (ii) their respective Unused Commitments at
such time. The failure of any Lender to reimburse the Agent promptly upon demand
for its ratable share of any amount required to be paid by the Lenders to the
Agent as provided herein shall not relieve any other Lender of its obligation
hereunder to reimburse the Agent for its ratable share of such amount, but no
Lender shall be responsible for the failure of any other Lender to reimburse the
Agent for such other Lender's ratable share of such amount. Without prejudice to
the survival of any other agreement of any Lender hereunder, the agreement and
obligations of each Lender contained in this Section 7.05 shall survive the
payment in full of principal, interest and all other amounts payable hereunder
and under the Notes.

         SECTION 7.06. Successor Agent. The Agent may resign at any time by
giving written notice thereof to the Lenders and the Borrower and may be removed
at any time with or without cause by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall have the right to appoint a
successor Agent. If no successor Agent shall have been so appointed by the
Required Lenders, and shall have accepted such appointment, within 30 days after
the retiring Agent's giving of notice of resignation or the Required Lenders'
removal of the retiring Agent, then the retiring Agent may, on behalf of the
Lenders, appoint a successor Agent, which shall be a commercial Lender organized
under the laws of the United States of America or of any State thereof and
having a combined capital and surplus of at least $500,000,000. Upon the
acceptance of any appointment as Agent hereunder by a successor Agent, such
successor Agent shall thereupon succeed to and become vested with all the
rights, powers, discretion, privileges and duties of the retiring Agent, and the
retiring Agent shall be discharged from its duties and obligations under this
Agreement. After any retiring Agent's resignation or removal hereunder as Agent,
the provisions of this Article VII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Agent under this Agreement.

         SECTION 7.07. Other Agents. Each Lender hereby acknowledges that
neither the documentation agent nor any other Lender designated as any "Agent"
on the signature pages hereof has any liability hereunder other than in its
capacity as a Lender.

         SECTION 7.08. Acknowledgements. The Borrower and each Guarantor hereby
acknowledge that neither the Agent nor the Lead Arranger nor any Arranger nor
any Lender has any fiduciary relationship with the Borrower or any Guarantor
under this Agreement, and the relationship under this Agreement between the
Lenders, on one hand, and the Borrower and Guarantors, on the other hand, is
solely that of debtor and creditor.

                                  ARTICLE VIII

                                  MISCELLANEOUS

                                       35

<PAGE>

         SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision
of this Agreement or the Notes, nor consent to any departure by the Borrower
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Required Lenders, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, however, that no amendment, waiver or consent shall, unless in
writing and signed by all the Lenders, do any of the following: (a) waive any of
the conditions specified in Section 3.01, (b) increase the Commitments of the
Lenders, (c) reduce the principal of, or interest on, the Advances or any fees
or other amounts payable hereunder, (d) postpone any date fixed for any payment
of principal of, or interest on, the Advances or any fees or other amounts
payable hereunder, (e) change the percentage of the Commitments or of the
aggregate unpaid principal amount of the Advances, or the number of Lenders,
that shall be required for the Lenders or any of them to take any action
hereunder, (f) release any Significant Subsidiary from its obligations under the
Subsidiary Guaranty or release any Person from its obligations under the
Subordination Agreement (provided that no consent of the Lenders shall be
required in connection with the any release of a Subsidiary from its obligations
under the Subsidiary Guaranty or the Subordination Agreement if such Subsidiary
is not listed on Schedule II hereto (as such Schedule is amended from time to
time in accordance with Section 5.01(a)(i)(E)) or (g) amend this Section 8.01;
and provided further that no amendment, waiver or consent shall, unless in
writing and signed by the Agent in addition to the Lenders required above to
take such action, affect the rights or duties of the Agent under this Agreement
or any Note.

         SECTION 8.02. Notices, Etc. All notices and other communications
provided for hereunder shall be in writing (including telecopier, telegraphic or
telex communication) and mailed, telecopied, telegraphed, telexed or delivered,
if to the Borrower, at its address at CONSOL Plaza, 1800 Washington Road,
Pittsburgh, Pennsylvania 15241-1421, Attention: Treasury (Fax. No. 412 831-4151;
if to any Initial Lender, at its Domestic Lending Office specified opposite its
name on Schedule I hereto; if to any other Lender, at its Domestic Lending
Office specified in the Assumption Agreement or the Assignment and Acceptance
pursuant to which it became a Lender; and if to the Agent, at its address at Two
Penns Way, New Castle, Delaware 19720, Attention: Bank Loan Syndications
Department; or, as to the Borrower or the Agent, at such other address as shall
be designated by such party in a written notice to the other parties and, as to
each other party, at such other address as shall be designated by such party in
a written notice to the Borrower and the Agent. All such notices and
communications shall, when mailed, telecopied, telegraphed or telexed, be
effective when deposited in the mails, telecopied, delivered to the telegraph
company or confirmed by telex answerback, respectively, except that notices and
communications to the Agent pursuant to Article II, III or VII shall not be
effective until received by the Agent. Delivery by telecopier of an executed
counterpart of any amendment or waiver of any provision of this Agreement or the
Notes or of any Exhibit hereto to be executed and delivered hereunder shall be
effective as delivery of a manually executed counterpart thereof.

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

         SECTION 8.04. Costs and Expenses. (a) The Borrower agrees to pay on
demand all costs and expenses of the Agent in connection with the preparation,
execution, delivery, administration, modification and amendment of this
Agreement, the Notes and the other documents to be delivered hereunder,
including, without limitation, (A) all due diligence, syndication (including
printing, distribution and bank meetings), transportation, computer,
duplication, appraisal, consultant, and audit expenses and (B) the reasonable
fees and expenses of counsel for the Agent with respect thereto and with respect
to advising the Agent as to its rights and responsibilities under this
Agreement. The Borrower further agrees to pay on demand all costs and expenses
of the Agent and the Lenders, if any (including, without limitation, reasonable
counsel fees and expenses), in connection with the enforcement (whether through
negotiations, legal proceedings or otherwise) of this Agreement, the Notes and
the other documents to be delivered hereunder, including, without limitation,
reasonable fees and expenses of counsel for the Agent and each Lender in
connection with the enforcement of rights under this Section 8.04(a).

         (b) The Borrower agrees to indemnify and hold harmless the Agent and
each Lender and each of their Affiliates and their officers, directors,
employees, agents and advisors (each, an "Indemnified Party") from and against
any and all claims, damages, losses, liabilities and expenses (including,
without limitation, reasonable fees and expenses of counsel) incurred by or
asserted or awarded against any Indemnified Party, in each

                                       36

<PAGE>

case arising out of or in connection with or by reason of (including, without
limitation, in connection with any investigation, litigation or proceeding or
preparation of a defense in connection therewith) (i) the Notes, this Agreement,
any of the transactions contemplated herein or the actual or proposed use of the
proceeds of the Advances or (ii) the actual or alleged presence of Hazardous
Materials on any property of the Borrower or any of its Subsidiaries or any
Environmental Action relating in any way to the Borrower or any of its
Subsidiaries, except to the extent such claim, damage, loss, liability or
expense is found in a final, non-appealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified Party's gross negligence or
willful misconduct. In the case of an investigation, litigation or other
proceeding to which the indemnity in this Section 8.04(b) applies, such
indemnity shall be effective whether or not such investigation, litigation or
proceeding is brought by the Borrower, its directors, equityholders or creditors
or an Indemnified Party or any other Person, whether or not any Indemnified
Party is otherwise a party thereto and whether or not the transactions
contemplated hereby are consummated. The Borrower also agrees not to assert any
claim for special, indirect, consequential or punitive damages against the
Agent, any Lender, any of their Affiliates, or any of their respective
directors, officers, employees, attorneys and agents, on any theory of
liability, arising out of or otherwise relating to the Notes, this Agreement,
any of the transactions contemplated herein or the actual or proposed use of the
proceeds of the Advances.

         (c) If any payment of principal of, or Conversion of, any Eurodollar
Rate Advance is made by the Borrower to or for the account of a Lender other
than on the last day of the Interest Period for such Advance, as a result of a
payment or Conversion pursuant to Section 2.07(d) or (e), 2.09 or 2.11,
acceleration of the maturity of the Notes pursuant to Section 6.01 or for any
other reason, or by an Eligible Assignee to a Lender other than on the last day
of the Interest Period for such Advance upon an assignment of rights and
obligations under this Agreement pursuant to Section 8.07 as a result of a
demand by the Borrower pursuant to Section 8.07(a), the Borrower shall, upon
demand by such Lender (with a copy of such demand to the Agent), pay to the
Agent for the account of such Lender any amounts required to compensate such
Lender for any additional losses, costs or expenses that it may reasonably incur
as a result of such payment or Conversion, including, without limitation, any
loss (including loss of anticipated profits), cost or expense incurred by reason
of the liquidation or reemployment of deposits or other funds acquired by any
Lender to fund or maintain such Advance.

         (d) Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in
Sections 2.10, 2.13 and 8.04 shall survive the payment in full of principal,
interest and all other amounts payable hereunder and under the Notes.

         SECTION 8.05. Right of Set-off. Upon (i) the occurrence and during the
continuance of any Event of Default and (ii) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the Agent to
declare the Notes due and payable pursuant to the provisions of Section 6.01,
each Lender and each of its Affiliates is hereby authorized at any time and from
time to time, to the fullest extent permitted by law, to set off and apply any
and all deposits (general or special, time or demand, provisional or final) at
any time held and other indebtedness at any time owing by such Lender or such
Affiliate to or for the credit or the account of the Borrower against any and
all of the obligations of the Borrower now or hereafter existing under this
Agreement and the Note held by such Lender, whether or not such Lender shall
have made any demand under this Agreement or such Note and although such
obligations may be unmatured. Each Lender agrees promptly to notify the Borrower
after any such set-off and application, provided that the failure to give such
notice shall not affect the validity of such set-off and application. The rights
of each Lender and its Affiliates under this Section are in addition to other
rights and remedies (including, without limitation, other rights of set-off)
that such Lender and its Affiliates may have.

         SECTION 8.06. Binding Effect. This Agreement shall become effective
(other than Section 2.01, which shall only become effective upon satisfaction of
the conditions precedent set forth in Section 3.01) when it shall have been
executed by the Borrower and the Agent and when the Agent shall have been
notified by each Initial Lender that such Initial Lender has executed it and
thereafter shall be binding upon and inure to the benefit of the Borrower, the
Agent and each Lender and their respective successors and assigns, except that
the Borrower shall not have the right to assign its rights hereunder or any
interest herein without the prior written consent of the Lenders.

         SECTION 8.07. Assignments and Participations. (a) Each Lender may and,
if demanded by the Borrower (following a demand by such Lender pursuant to
Section 2.10 or 2.13) upon at least five Business Days' notice to such Lender
and the Agent, will assign to one or more Persons all or a portion of its rights
and obligations

                                       37

<PAGE>

under this Agreement (including, without limitation, all or a portion of its
Commitment, the Advances owing to it and the Note or Notes held by it);
provided, however, that (i) each such assignment shall be of a constant, and not
a varying, percentage of all rights and obligations under this Agreement, (ii)
except in the case of an assignment to a Person that, immediately prior to such
assignment, was a Lender or an assignment of all of a Lender's rights and
obligations under this Agreement, the amount of the Commitment of the assigning
Lender being assigned pursuant to each such assignment (determined as of the
date of the Assignment and Acceptance with respect to such assignment) shall in
no event be less than $10,000,000 or an integral multiple of $1,000,000 in
excess thereof unless the Borrower and the Agent otherwise agree, (iii) each
assignee (other than an Affiliate of the assigning Lender) must be acceptable to
the Borrower and the Agent, whose consent shall not be unreasonably withheld,
and the Agent's and the Borrower's decisions respecting the same shall be made
promptly, provided that the Borrower's consent shall not be required if an Event
of Default has occurred and is continuing, (iv) each such assignment made as a
result of a demand by the Borrower pursuant to this Section 8.07(a) shall be
arranged by the Borrower after consultation with the Agent and shall be either
an assignment of all of the rights and obligations of the assigning Lender under
this Agreement or an assignment of a portion of such rights and obligations made
concurrently with another such assignment or other such assignments that
together cover all of the rights and obligations of the assigning Lender under
this Agreement, (v) no Lender shall be obligated to make any such assignment as
a result of a demand by the Borrower pursuant to this Section 8.07(a) unless and
until such Lender shall have received one or more payments from either the
Borrower or one or more Eligible Assignees in an aggregate amount at least equal
to the aggregate outstanding principal amount of the Advances owing to such
Lender, together with accrued interest thereon to the date of payment of such
principal amount and all other amounts payable to such Lender under this
Agreement, and (vi) the parties to each such assignment shall execute and
deliver to the Agent, for its acceptance and recording in the Register, an
Assignment and Acceptance, together with any Note subject to such assignment and
a processing and recordation fee of $3,500 payable by the parties to each such
assignment, provided, however, that (x) in the case of each assignment made as a
result of a demand by the Borrower, such recordation fee shall be payable by the
Borrower except that no such recordation fee shall be payable in the case of an
assignment made at the request of the Borrower to an Eligible Assignee that is
an existing Lender and (y) no such recordation fee shall be payable in the case
of an assignment made to an Affiliate of the assigning Lender. Upon such
execution, delivery, acceptance and recording, from and after the effective date
specified in each Assignment and Acceptance, (x) the assignee thereunder shall
be a party hereto and, to the extent that rights and obligations hereunder have
been assigned to it pursuant to such Assignment and Acceptance, have the rights
and obligations of a Lender hereunder and (y) the Lender assignor thereunder
shall, to the extent that rights and obligations hereunder have been assigned by
it pursuant to such Assignment and Acceptance, relinquish its rights (other than
its rights under Section 2.10, 2.13 and 8.04 to the extent any claim thereunder
relates to an event arising prior such assignment) and be released from its
obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender's rights
and obligations under this Agreement, such Lender shall cease to be a party
hereto).

     (b) By executing and delivering an Assignment and Acceptance, the Lender
assignor thereunder and the assignee thereunder confirm to and agree with each
other and the other parties hereto as follows: (i) other than as provided in
such Assignment and Acceptance, such assigning Lender makes no representation or
warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or
the execution, legality, validity, enforceability, genuineness, sufficiency or
value of, or the perfection or priority of any lien or security interest created
or purported to be created under or in connection with, this Agreement or any
other instrument or document furnished pursuant hereto; (ii) such assigning
Lender makes no representation or warranty and assumes no responsibility with
respect to the financial condition of the Borrower or the performance or
observance by the Borrower of any of its obligations under this Agreement or any
other instrument or document furnished pursuant hereto; (iii) such assignee
confirms that it has received a copy of this Agreement, together with copies of
the financial statements referred to in Section 4.01 and such other documents
and information as it has deemed appropriate to make its own credit analysis and
decision to enter into such Assignment and Acceptance; (iv) such assignee will,
independently and without reliance upon 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 Agreement; (v) such assignee confirms that it is an
Eligible Assignee; (vi) such assignee appoints and authorizes the Agent to take
such action as agent on its behalf and to exercise such powers and discretion
under this Agreement as are delegated to the Agent by the terms hereof, together
with such powers and discretion as are reasonably incidental thereto; and

                                       38

<PAGE>

(vii) such assignee agrees that it will perform in accordance with their terms
all of the obligations that by the terms of this Agreement are required to be
performed by it as a Lender.

          (c) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee representing that it is an Eligible Assignee,
together with any Note or Notes subject to such assignment, the Agent shall, if
such Assignment and Acceptance has been completed and is in substantially the
form of Exhibit C hereto, (i) accept such Assignment and Acceptance, (ii) record
the information contained therein in the Register and (iii) give prompt notice
thereof to the Borrower.

          (d) The Agent shall maintain at its address referred to in Section
8.02 a copy of each Assumption Agreement and each Assignment and Acceptance
delivered to and accepted by it and a register for the recordation of the names
and addresses of the Lenders and the Commitment of, and principal amount of the
Advances 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 Borrower, 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 Agreement. The Register shall be available for inspection by
the Borrower or any Lender at any reasonable time and from time to time upon
reasonable prior notice.

          (e) Each Lender may sell participations to one or more banks or other
entities (other than the Borrower or any of its Affiliates) in or to all or a
portion of its rights and obligations under this Agreement (including, without
limitation, all or a portion of its Commitment, the Advances owing to it and any
Note or Notes held by it); provided, however, that (i) such Lender's obligations
under this Agreement (including, without limitation, its Commitment to the
Borrower hereunder) shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations,
(iii) such Lender shall remain the holder of any such Note for all purposes of
this Agreement, (iv) the Borrower, the Agent and the other Lenders shall
continue to deal solely and directly with such Lender in connection with such
Lender's rights and obligations under this Agreement and (v) no participant
under any such participation shall have any right to approve any amendment or
waiver of any provision of this Agreement or any Note, or any consent to any
departure by the Borrower therefrom, except to the extent that such amendment,
waiver or consent would reduce the principal of, or interest on, the Notes or
any fees or other amounts payable hereunder, in each case to the extent subject
to such participation, or postpone any date fixed for any payment of principal
of, or interest on, the Notes or any fees or other amounts payable hereunder, in
each case to the extent subject to such participation.

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

          (g) Notwithstanding any other provision set forth in this Agreement,
any Lender may at any time create a security interest in all or any portion of
its rights under this Agreement (including, without limitation, the Advances
owing to it and any Note or Notes held by it) in favor of any Federal Reserve
Bank in accordance with Regulation A of the Board of Governors of the Federal
Reserve System.

          SECTION 8.08. Confidentiality. Neither the Agent nor any Lender shall
disclose any Confidential Information to any other Person without the consent of
the Borrower, other than (a) to the Agent's or such Lender's Affiliates and
their officers, directors, employees, agents and advisors and, as contemplated
by Section 8.07(f), to actual or prospective assignees and participants, and
then only on a confidential basis, (b) as required by any law, rule or
regulation or judicial process, (c) as requested or required by any state,
federal or foreign authority or examiner regulating banks or banking or other
regulator or auditor and (d) in connection with the exercise of any remedies
hereunder or any suit, action or proceeding relating to this Agreement or the
enforcement of rights hereunder.

          SECTION 8.09. Governing Law. This Agreement and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New
York.

                                       39

<PAGE>

          SECTION 8.10. Execution in Counterparts. This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Agreement by telecopier shall be effective as delivery of a manually executed
counterpart of this Agreement.

          SECTION 8.11. Jurisdiction, Etc. (a) Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Agreement or the Notes, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and
determined in any such New York State court or, to the extent permitted by law,
in such federal court. In addition, if any Indemnified Party is named as a
defendant or other party in connection herewith or with the Advances in another
jurisdiction or proceeding, such Indemnified Party may name the Borrower as a
defendant or third party defendant in any such proceeding, and the Borrower
hereby consents to jurisdiction and service of process by mail in any such
jurisdiction or proceeding. The Borrower hereby agrees that service of process
in any such action or proceeding brought in the any such New York State court or
in such federal court may be made upon CT Corporation System at its offices at
1633 Broadway, New York, New York 10019 (the "Process Agent") and the Borrower
hereby irrevocably appoints the Process Agent its authorized agent to accept
such service of process, and agrees that the failure of the Process Agent to
give any notice of any such service shall not impair or affect the validity of
such service or of any judgment rendered in any action or proceeding based
thereon. The Borrower hereby further irrevocably consents to the service of
process in any action or proceeding in such courts by the mailing thereof by any
parties hereto by registered or certified mail, postage prepaid, to the Borrower
at its address specified pursuant to Section 8.02. Each of the parties hereto
agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law. Nothing in this Agreement shall affect any
right that any party may otherwise have to bring any action or proceeding
relating to this Agreement or the Notes in the courts of any jurisdiction.

          (b) Each of the parties hereto irrevocably and unconditionally waives,
to the fullest extent it may legally and effectively do so, any objection that
it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or the Notes in any New
York State or federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

          SECTION 8.11.5. Severability . If any provision of this Agreement or
the other Loan Documents is held to be illegal, invalid or unenforceable, (a)
the legality, validity and enforceability of the remaining provisions of this
Agreement and the other Loan Documents shall not be affected or impaired thereby
and (b) the parties shall endeavor in good faith negotiations to replace the
illegal, invalid or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the illegal, invalid or
unenforceable provisions. The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

                                       40

<PAGE>

          SECTION 8.12. Waiver of Jury Trial. Each of the Borrower, the Agent
and the Lenders hereby irrevocably waives all right to trial by jury in any
action, proceeding or counterclaim (whether based on contract, tort or
otherwise) arising out of or relating to this Agreement or the Notes or the
actions of the Agent or any Lender in the negotiation, administration,
performance or enforcement thereof.

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

                                                 CONSOL ENERGY INC.

                                                 By __________________________
                                                     Title:

                                                 CITIBANK, N.A.,
                                                     as Agent

                                                 By __________________________
                                                     Title:

                                 Initial Lenders

                              Administrative Agent

                                                 CITIBANK, N.A.

                                                 By __________________________
                                                     Title:

                               Syndication Agents

                                                 DRESDNER BANK AG, NEW YORK AND
                                                 GRAND CAYMAN BRANCHES

                                                 By __________________________
                                                     Title:

                                                 By __________________________
                                                     Title:

                                                 PNC BANK, N.A.

                                                 By __________________________
                                                     Title:

                                       41

<PAGE>

                                 Managing Agents

                                                THE BANK OF NOVA SCOTIA

                                                By __________________________
                                                    Title:

                                                BARCLAYS BANK PLC

                                                By __________________________
                                                    Title:

                                                BAYERISCHE HYPO- UND VEREINSBANK
                                                AG, NEW YORK BRANCH

                                                By __________________________
                                                    Title:

                                                WESTDEUTSCHE LANDESBANK
                                                GIROZENTRALE, NEW YORK BRANCH

                                                By __________________________
                                                    Title:

                                     Lenders

                                                AUSTRALIA AND NEW ZEALAND
                                                BANKING GROUP LIMITED BANK,
                                                N.A.

                                                By __________________________
                                                    Title:

                                                NATIONAL CITY BANK

                                                By __________________________
                                                    Title:

                                       42

<PAGE>

                                                                      SCHEDULE I
                                                              CONSOL ENERGY INC.
                                                        364-DAY CREDIT AGREEMENT
                                                      APPLICABLE LENDING OFFICES
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
Name of Initial Lender       Revolving         Domestic Lending Office          Eurodollar Lending Office
----------------------       ---------         -----------------------          -------------------------
                             Credit
                             ------
                             Commitment
                             ----------
----------------------------------------------------------------------------------------------------------------
<S>                         <C>                <C>                              <C>
Australia and New Zealand   $ 18,000,000       Attn: Tessie Amance/             Attn: Tessie Amance/
Banking Group Limited                          Doreen Klingenbeck               Doreen Klingenbeck
                                               T: 212 801-9744/9726             T: 212 801-9744/9726
                                               F: 212 536-9244                  F: 212 536-9244
----------------------------------------------------------------------------------------------------------------
Barlcays Bank PLC           $ 22,500,000       222 Broadway                     222 Broadway
                                               New York, NY 10038               New York, NY 10038
                                               Attn: Jesse Adams                Attn: Jesse Adams
                                               T: 212 412-2470                  T: 212 412-2470
                                               F: 212 412-5306                  F: 212 412-5306
----------------------------------------------------------------------------------------------------------------
Bayerische Hypo- und        $ 22,500,000       150 East 42/nd/ Street           150 East 42/nd/ Street
Vereinsbank AG, New York                       31/st/ Floor                     31/st/ Floor
Branch                                         New York, NY 10017               New York, NY 10017
                                               Attn: Tom Taylor                 Attn: Tom Taylor
                                               T: 212 672-5872                  T: 212 672-5872
                                               F: 212 672-5529                  F: 212 672-5529
----------------------------------------------------------------------------------------------------------------
Bank of Nova Scotia         $ 22,500,000       Attn: Demetria January           Attn: Demetria January
                                               T: 404 877-1578                  T: 404 877-1578
                                               F: 404 888-8998                  F: 404 888-8998
----------------------------------------------------------------------------------------------------------------
Citibank, N.A.              $ 36,000,000       Two Penns Way                    Two Penns Way
                                               New Castle, DE 19720             New Castle, DE 19720
                                               Attn: Diane Stewart              Attn: Diane Stewart
                                               T: 302 894-6035                  T: 302 894-6035
                                               F: 212 994-0847                  F: 212 994-0847
----------------------------------------------------------------------------------------------------------------
Dresdner Bank AG, New York  $ 31,500,000       1301 Avenue of the Americas      1301 Avenue of the Americas
and Grand Cayman Branches                      New York, NY 10019               New York, NY 10019
                                               Attn: Dominik Rohe               Attn: Dominik Rohe
                                               T: 212 895-5154                  T: 212 895-5154
                                               F: 212 429-4817                  F: 212 429-4817
----------------------------------------------------------------------------------------------------------------
National City Bank          $ 11,250,000       20 Stan Wix Street               20 Stan Wix Street
                                               Pittsburgh, PA 15222             Pittsburgh, PA 15222
                                               Attn: Elise Jackson              Attn: Elise Jackson
                                               T: 412 644-8886                  T: 412 644-8886
                                               F: 412 644-7555                  F: 412 644-7555
----------------------------------------------------------------------------------------------------------------
PNC Bank, N.A.              $ 31,500,000       One PNC Plaza                    One PNC Plaza
                                               3/rd/ Floor                      3/rd/ Floor
                                               249 Fifth Avenue                 249 Fifth Avenue
                                               Pittsburgh, PA 15222             Pittsburgh, PA 15222
                                               Attn: R. Kane Kiester            Attn: R. Kane Kiester
                                               T: 412 762-4221                  T: 412 762-4221
                                               F: 412 705-3231                  F: 412 705-3231
----------------------------------------------------------------------------------------------------------------
Westdeutsche Landesbank     $ 22,500,000       1211 Avenue of the Americas      1211 Avenue of the Americas
Girozentrale, New York                         New York, NY 10036               New York, NY 10036
Branch                                         Attn: Dan Palermo                Attn: Dan Palermo
                                               T: 2121 852-6157                 T: 2121 852-6157
                                               F: 212 302-7946                  F: 212 302-7946
----------------------------------------------------------------------------------------------------------------
Total:                      $218,250,000
</TABLE>

                                       43

<PAGE>

                                                             EXHIBIT A - FORM OF
                                                                 PROMISSORY NOTE

U.S.$____________                   Dated:  _______________, 200_

             FOR VALUE RECEIVED, the undersigned, CONSOL Energy Inc., a Delaware
corporation (the "Borrower"), HEREBY PROMISES TO PAY to the order of
_________________________ (the "Lender") for the account of its Applicable
Lending Office on the later of the Termination Date and the date designated
pursuant to Section 2.05 of the Credit Agreement (each as defined in the Credit
Agreement referred to below) the principal sum of U.S.$[amount of the Lender's
Commitment in figures] or, if less, the aggregate principal amount of the
Advances made by the Lender to the Borrower pursuant to the 364-Day Credit
Agreement dated as of September 16, 2002 among the Borrower, the Lender and
certain other lenders parties thereto, Dresdner Bank AG, New York And Grand
Cayman Branches and PNC Bank, N.A., as syndication agents, Salomon Smith Barney
Inc., as sole lead arranger and bookrunner, and Citibank, N.A. as Agent for the
Lender and such other lenders (as amended or modified from time to time, the
"Credit Agreement"; the terms defined therein being used herein as therein
defined) outstanding on such date.

             The Borrower promises to pay interest on the unpaid principal
amount of each Advance from the date of such Advance until such principal amount
is paid in full, at such interest rates, and payable at such times, as are
specified in the Credit Agreement.

             Both principal and interest are payable in lawful money of the
United States of America to Citibank, as Agent, at Two Penns Way, New Castle,
Delaware 19720, in same day funds. Each Advance owing to the Lender by the
Borrower pursuant to the Credit Agreement, and all payments made on account of
principal thereof, shall be recorded by the Lender and, prior to any transfer
hereof, endorsed on the grid attached hereto which is part of this Promissory
Note.

             This Promissory Note is one of the Notes referred to in, and is
entitled to the benefits of, the Credit Agreement. The Credit Agreement, among
other things, (i) provides for the making of Advances by the Lender to the
Borrower from time to time in an aggregate amount not to exceed at any time
outstanding the U.S. dollar amount first above mentioned, the indebtedness of
the Borrower resulting from each such Advance being evidenced by this Promissory
Note and (ii) contains provisions for acceleration of the maturity hereof upon
the happening of certain stated events and also for prepayments on account of
principal hereof prior to the maturity hereof upon the terms and conditions
therein specified.

             This Promissory Note shall be governed by, and construed in
accordance with, the laws of the State of New York.

                                             CONSOL ENERGY INC.

                                             By __________________________
                                                Title:

<PAGE>

                       ADVANCES AND PAYMENTS OF PRINCIPAL

--------------------------------------------------------------------------------
                               Amount of
    Date     Amount of      Principal Paid   Unpaid Principal    Notation
              Advance         or Prepaid         Balance          Made By
--------------------------------------------------------------------------------

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                                       2

<PAGE>

                                                   EXHIBIT B - FORM OF NOTICE OF
                                                                       BORROWING

Citibank, N.A., as Agent
  for the Lenders parties
  to the Credit Agreement
  referred to below
  Two Penns Way
  New Castle, Delaware 19720
                                                              [Date]

                  Attention: Bank Loan Syndications Department

Ladies and Gentlemen:

             The undersigned, CONSOL Energy Inc., refers to the 364-Day Credit
Agreement, dated as of September 16, 2002 (as amended or modified from time to
time, the "Credit Agreement", the terms defined therein being used herein as
therein defined), among the undersigned, certain Lenders parties thereto,
Dresdner Bank AG, New York And Grand Cayman Branches and PNC Bank, N.A., as
syndication agents, Salomon Smith Barney Inc., as sole lead arranger and
bookrunner, and Citibank, N.A., as Agent for said Lenders, and hereby gives you
notice, irrevocably, pursuant to Section 2.02 of the Credit Agreement that the
undersigned hereby requests a Borrowing under the Credit Agreement, and in that
connection sets forth below the information relating to such Borrowing (the
"Proposed Borrowing") as required by Section 2.02(a) of the Credit Agreement:

             (i)   The Business Day of the Proposed Borrowing is _____________,
         200_.

             (ii)  The Type of Advances comprising the Proposed Borrowing is
         [Base Rate Advances] [Eurodollar Rate Advances].

             (iii) The aggregate amount of the Proposed Borrowing is
         $___________.

             [(iv) The initial Interest Period for each Eurodollar Rate Advance
         made as part of the Proposed Borrowing is _____ month[s].]

             The undersigned hereby certifies that the following statements are
true on the date hereof, and will be true on the date of the Proposed Borrowing:

             (A)   the representations and warranties contained in Section 4.01
         of the Credit Agreement are correct, before and after giving effect to
         the Proposed Borrowing and to the application of the proceeds
         therefrom, as though made on and as of such date; and

<PAGE>

             (B)  no event has occurred and is continuing, or would result from
        such Proposed Borrowing or from the application of the proceeds
        therefrom, that constitutes a Default.

                                                      Very truly yours,

                                                      CONSOL ENERGY INC.

                                                      By _______________________
                                                         Title:.

                                       2

<PAGE>

                                                             EXHIBIT C - FORM OF
                                                       ASSIGNMENT AND ACCEPTANCE

                  Reference is made to the 364-Day Credit Agreement dated as of
September 16, 2002 (as amended or modified from time to time, the "Credit
Agreement") among CONSOL Energy Inc., a Delaware corporation (the "Borrower"),
the Lenders (as defined in the Credit Agreement), Dresdner Bank AG, New York and
Grand Cayman Branches and PNC Bank, N.A., as syndication agents, Salomon Smith
Barney Inc., as sole lead arranger and bookrunner, and Citibank, N.A., as agent
for the Lenders (the "Agent"). Terms defined in the Credit Agreement are used
herein with the same meaning.

                  The "Assignor" and the "Assignee" referred to on Schedule I
hereto agree as follows:

                  1.    The Assignor hereby sells and assigns to the Assignee,
and the Assignee hereby purchases and assumes from the Assignor, an interest in
and to the Assignor's rights and obligations under the Credit Agreement as of
the date hereof equal to the percentage interest specified on Schedule 1 hereto
of all outstanding rights and obligations under the Credit Agreement as of the
date hereof. After giving effect to such sale and assignment, the Assignee's
Commitment and the amount of the Advances owing to the Assignee will be as set
forth on Schedule 1 hereto.

                  2.    The Assignor (i) represents and warrants that it is the
legal and beneficial owner of the interest being assigned by it hereunder and
that such interest is free and clear of any adverse claim; (ii) makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the
Credit Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of, or the perfection or priority of any lien
or security interest created or purported to be created under or in connection
with, the Credit Agreement or any other instrument or document furnished
pursuant thereto; (iii) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of the Borrower or the
performance or observance by the Borrower of any of its obligations under the
Credit Agreement or any other instrument or document furnished pursuant thereto;
(iv) attaches the Note[, if any,] held by the Assignor [and requests that the
Agent exchange such Note for a new Note payable to the order of [the Assignee in
an amount equal to the Commitment assumed by the Assignee pursuant hereto or new
Notes payable to the order of the Assignee in an amount equal to the Commitment
assumed by the Assignee pursuant hereto and] the Assignor in an amount equal to
the Commitment retained by the Assignor under the Credit Agreement[,
respectively,] as specified on Schedule 1 hereto] and (v) represents and
warrants that this Assignment and Acceptance is its legal, valid and binding
obligation enforceable in accordance with its terms, subject, as to enforcement,
only to bankruptcy, insolvency, reorganization, moratorium or other similar laws
at the time in effect affecting the enforceability of the rights of creditors
generally, and by general equitable principles.

                  3.    The Assignee (i) confirms that it has received a copy of
the Credit Agreement, together with copies of the financial statements referred
to in Section 4.01 thereof and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Acceptance; (ii) agrees that it will, independently and
without reliance upon the Agent, the Assignor 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
the Credit Agreement; (iii) confirms that it is an Eligible Assignee; (iv)
appoints and authorizes the Agent to take such action as agent on its behalf and
to exercise such powers and discretion under the Credit Agreement as are
delegated to the Agent by the terms thereof, together with such powers and
discretion as are reasonably incidental thereto; (v) agrees that it will perform
in accordance with their terms all of the obligations that by the terms of the
Credit Agreement are required to be performed by it as a Lender; (vi) attaches
any U.S. Internal Revenue Service forms required under Section 2.13 of the
Credit Agreement and (vii) represents and warrants that this Assignment and
Acceptance is its legal, valid and binding obligation enforceable in accordance
with its terms, subject, as to enforcement, only to bankruptcy, insolvency,
reorganization, moratorium or other similar laws at the time in effect affecting
the enforceability of the rights of creditors generally, and by general
equitable principles.

                  4.    Following the execution of this Assignment and
Acceptance, it will be delivered to the Agent for acceptance and recording by
the Agent. The effective date for this Assignment and Acceptance (the

<PAGE>

"Effective Date") shall be the date of acceptance hereof by the Agent, unless
otherwise specified on Schedule 1 hereto.

                  5.    Upon such acceptance and recording by the Agent, as of
the Effective Date, (i) the Assignee shall be a party to the Credit Agreement
and, to the extent provided in this Assignment and Acceptance, have the rights
and obligations of a Lender thereunder and (ii) the Assignor shall, to the
extent provided in this Assignment and Acceptance, relinquish its rights and be
released from its obligations under the Credit Agreement.

                  6.    Upon such acceptance and recording by the Agent, from
and after the Effective Date, the Agent shall make all payments under the Credit
Agreement and the Notes in respect of the interest assigned hereby (including,
without limitation, all payments of principal, interest and facility fees with
respect thereto) to the Assignee. The Assignor and Assignee shall make all
appropriate adjustments in payments under the Credit Agreement and the Notes for
periods prior to the Effective Date directly between themselves.

                  7.       This Assignment and Acceptance  shall be governed by,
and construed in accordance with, the laws of the State of New York.

                  8.    This Assignment and Acceptance may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of Schedule 1 to this Assignment and Acceptance by
telecopier shall be effective as delivery of a manually executed counterpart of
this Assignment and Acceptance.

                  IN WITNESS WHEREOF, the Assignor and the Assignee have caused
Schedule 1 to this Assignment and Acceptance to be executed by their officers
thereunto duly authorized as of the date specified thereon.

                                       2

<PAGE>

                                   Schedule 1
                                       to
                            Assignment and Acceptance

<TABLE>
     <S>                                                           <C>                <C>
     Percentage interest assigned:                                                      _____%

     Assignee's Commitment:                                        $______

     Aggregate outstanding principal amount of Advances assigned:                     $______

     Principal amount of Note payable to Assignee:                                    $______

     Principal amount of  Note payable to Assignor:                                   $______

     Effective Date*:  _______________, 200_
</TABLE>

                                                [NAME OF ASSIGNOR], as Assignor

                                                By __________________________
                                                Title:

                                                Dated:  _______________, 200_

                                                [NAME OF ASSIGNEE], as Assignee

                                                By __________________________
                                                Title:

                                                Dated:  _______________, 200_

                                                Domestic Lending Office:
                                                         [Address]

                                                Eurodollar Lending Office:
                                                         [Address]

________________
*        This date should be no earlier than five Business Days after the
         delivery of this Assignment and Acceptance to the Agent.

                                       3

<PAGE>

Accepted [and Approved]** this
__________ day of _______________, 200_

CITIBANK, N.A., as Agent

By ______________________________
   Title:

[Approved this __________ day
of _______________, 200_

CONSOL ENERGY INC.

By ______________________________]*
   Title:

___________________
**       Required if the Assignee is an Eligible Assignee solely by reason of
         clause (iii) of the definition of "Eligible Assignee".

*        Required if the Assignee is an Eligible Assignee solely by reason of
         clause (iii) of the definition of "Eligible Assignee".

                                       4

<PAGE>

                                                             EXHIBIT D - FORM OF
                                                              OPINION OF COUNSEL
                                                                FOR THE BORROWER

                                    [To come]

<PAGE>

                                                                  EXECUTION COPY

                                U.S. $218,250,000

                            364-DAY CREDIT AGREEMENT

                         Dated as of September 16, 2002

                                      Among

                               CONSOL ENERGY INC.
                                   as Borrower

                                       and

                        THE INITIAL LENDERS NAMED HEREIN
                               as Initial Lenders

                                       and

                                 CITIBANK, N.A.
                             as Administrative Agent

                                       and

              DRESDNER BANK AG, NEW YORK AND GRAND CAYMAN BRANCHES
                                       and
                                 PNC BANK, N.A.
                              as Syndication Agents

                                       and

                            SALOMON SMITH BARNEY INC.
                      as Sole Lead Arranger and Bookrunner

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                           <C>
ARTICLE I

      SECTION 1.01.  Certain Defined Terms                                     1
                     ---------------------

      SECTION 1.02.  Computation of Time Periods                              10
                     ---------------------------

      SECTION 1.03.  Accounting Terms                                         10
                     ----------------

ARTICLE II

      SECTION 2.01.  The Advances                                             10
                     ------------

      SECTION 2.02.  Making the Advances                                      10
                     -------------------

      SECTION 2.03.  Fees                                                     11
                     ----

      SECTION 2.04.  Termination or Reduction of the Commitments              11
                     -------------------------------------------

      SECTION 2.05.  Repayment of Advances                                    11
                     ---------------------

      SECTION 2.06.  Interest on Advances                                     12
                     --------------------

      SECTION 2.07.  Interest Rate Determination                              12
                     ---------------------------

      SECTION 2.08.  Optional Conversion of Advances                          13
                     -------------------------------

      SECTION 2.09.  Prepayments of Advances                                  13
                     -----------------------

      SECTION 2.10.  Increased Costs                                          13
                     ---------------

      SECTION 2.11.  Illegality                                               14
                     ----------

      SECTION 2.12.  Payments and Computations                                14
                     -------------------------

      SECTION 2.13.  Taxes                                                    15
                     -----

      SECTION 2.14.  Sharing of Payments, Etc.                                16
                     ------------------------

      SECTION 2.15.  Evidence of Debt                                         16
                     ----------------

      SECTION 2.16.  Use of Proceeds                                          17
                     ---------------

      SECTION 2.17.  Increase in the Aggregate Commitments                    17
                     -------------------------------------

      SECTION 2.18.  Extension of Termination Date                            18
                     -----------------------------

ARTICLE III
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                            <C>
      SECTION 3.01.  Conditions Precedent to Effectiveness of Section 2.01                     20

      SECTION 3.02.  Conditions Precedent to Each Borrowing, Term Loan Conversion Date,
                     ------------------------------------------------------------------
            Commitment Increase and Extension Date.                                            21
            --------------------------------------

      SECTION 3.03.  Determinations Under Section 3.01                                         22
                     ---------------------------------

ARTICLE IV

      SECTION 4.01.  Representations and Warranties of the Borrower                            22

ARTICLE V

      SECTION 5.01.  Affirmative Covenants                                                     25
                     ---------------------

      SECTION 5.02.  Negative Covenants                                                        28
                     ------------------

ARTICLE VI

      SECTION 6.01.  Events of Default                                                         32
                     -----------------

ARTICLE VII

      SECTION 7.01.  Authorization and Action                                                  34
                     ------------------------

      SECTION 7.02.  Agent's Reliance, Etc.                                                    34
                     ---------------------

      SECTION 7.03.  Citibank and Affiliates                                                   34
                     -----------------------

      SECTION 7.04.  Lender Credit Decision                                                    34
                     ----------------------

      SECTION 7.05.  Indemnification                                                           35
                     ---------------

      SECTION 7.06.  Successor Agent                                                           35
                     ---------------

      SECTION 7.07.  Other Agents.                                                             35
                     ------------

      SECTION 7.08.  Acknowledgements.                                                         35
                     ----------------

ARTICLE VIII

      SECTION 8.01.  Amendments, Etc.                                                          36
                     ---------------

      SECTION 8.02.  Notices, Etc.                                                             36
                     ------------

      SECTION 8.03.  No Waiver; Remedies                                                       36
                     -------------------

      SECTION 8.04.  Costs and Expenses                                                        36
                     ------------------

      SECTION 8.05.  Right of Set-off                                                          37
                     ----------------
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                           <C>
      SECTION 8.06.   Binding Effect                                           37
                      --------------

      SECTION 8.07.   Assignments and Participations                           37
                      ------------------------------

      SECTION 8.08.   Confidentiality                                          39
                      ---------------

      SECTION 8.09.   Governing Law                                            39
                      -------------

      SECTION 8.10.   Execution in Counterparts                                40
                      -------------------------

      SECTION 8.11.   Jurisdiction, Etc.                                       40
                      -----------------

      SECTION 8.11.5. Severability                                             40
                      ------------

      SECTION 8.12.   Waiver of Jury Trial                                     41
                      --------------------
</TABLE>

                                      iii

<PAGE>

Schedules
---------

Schedule I - List of Applicable Lending Offices

Schedule II - Significant Subsidiaries

Schedule III - Permitted Investments

Disclosure Schedule

Exhibits
--------

Exhibit A  -  Form of Note

Exhibit B  -  Form of Notice of Borrowing

Exhibit C  -  Form of Assignment and Acceptance

Exhibit D  -  Form of Opinion of Counsel for the Borrower

Exhibit E  -  Form of Subordination Agreement

Exhibit F  -  Form of Subsidiary Guaranty

                                       iv

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