Document:

EXHIBIT 10.3
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PLEASE PRINT:

         NAME OF SUBSCRIBER: ____________________________________

         SUBSCRIPTION AMOUNT: __________ UNITS

         PRICE PER UNIT: $3.40

         AGGREGATE PURCHASE PRICE:  $________________

                             SUBSCRIPTION AGREEMENT
                             ----------------------

      This Subscription Agreement (this "Agreement") is being delivered to you
in connection with your investment in RedRoller Holdings, Inc., a Delaware
corporation (f/k/a Aslahan Enterprises Ltd.) whose shares of common stock, par
value $0.001 per share (the "Common Stock"), are currently quoted on the NASD's
Over The Counter Bulletin Board under the symbol "RROL.OB" ("Pubco"), a
wholly-owned subsidiary of which will acquire by merger (the "Merger") all of
the issued and outstanding capital stock and the business of RedRoller, Inc., a
Delaware corporation ("RedRoller"). Pubco is conducting a private placement (the
"Offering") of units (the "Units"), at a purchase price of $3.40 per Unit. Each
Unit shall consist of (i) four shares (the "Shares") of Common Stock and (ii) a
warrant to purchase one share of Common Stock at an initial exercise price of
$1.28 per share exercisable for 60 months after the closing of the Merger (the
"Warrant").

      All funds received in the Offering prior to the Closing (as defined below)
shall be held in escrow by U.S. Bank N.A. (the "Escrow Agent") and, upon
fulfillment of the other conditions precedent set forth herein, shall be
released from escrow and delivered to Pubco, at which time certificates for the
shares of Common Stock and the Warrants underlying the Units subscribed for
shall be delivered, subject to Section 6 hereof and as further described below,
to you.

1. SUBSCRIPTION AND PURCHASE PRICE

      (a) Subscription. Subject to the conditions set forth in Section 2 hereof,
the undersigned (the "Investor" and, together with the other purchasers of
Units, the "Investors") hereby subscribes for and agrees to purchase the number
of Units indicated above on the terms and conditions described herein. The
minimum number of Units that may be purchased is 29,412. Subscriptions for
lesser amounts may be accepted at the discretion of Pubco. This Agreement
together with the Confidential Investor Questionnaire attached hereto as Exhibit
A are collectively referred to as the "Subscription Documents." The Subscription
Documents together with the Registration Rights Agreement attached hereto as
Exhibit B and the Warrant are collectively referred to as the "Transaction
Documents."

      (b) Purchase of Units. The Investor understands and acknowledges that the
purchase price to be remitted to Pubco in exchange for the Units shall be $3.40
per Unit, for an aggregate purchase price as set forth on Page 18 hereof (the
"Aggregate Purchase Price"). The Investor's delivery of this Agreement to Pubco
shall be accompanied by payment, to the Escrow Agent, of the Aggregate Purchase
Price, payable in United States dollars, by wire transfer of immediately
available funds. The Investor understands and agrees that, subject to Section 2
hereof and applicable laws, by executing this Agreement, he, she or it is
entering into a binding agreement.

2. ACCEPTANCE, OFFERING TERM AND CLOSING PROCEDURES

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      (a) Acceptance or Rejection. The obligation of the Investor to purchase
the Units shall, subject to the investor accreditation process, applicable
securities laws and the closing conditions contained in Section 6 hereof, be
irrevocable and the Investor shall be legally bound to purchase the Units
subject to the terms set forth in this Agreement. The Investor understands and
agrees that Pubco reserves the right to reject this subscription for Units in
whole or in part in any order at any time prior to the Closing if, in its
reasonable judgment, it deems such action to be in the best interest of Pubco,
notwithstanding the Investor's prior receipt of notice of acceptance of the
Investor's subscription. In the event of rejection of this subscription by Pubco
in accordance with this Section 2, or the sale of the Units is not consummated
by Pubco for any reason, this Agreement and any other agreement entered into
between the Investor and Pubco relating to the Investor's subscription for Units
shall thereafter have no force or effect, and Pubco shall promptly return or
cause to be returned to the Investor the Aggregate Purchase Price remitted to
the Escrow Agent, without interest thereon or deduction therefrom.

      (b) Closing/Offering Term. The subscription period for the Offering will
begin as of October 17, 2007. The closing of the Offering (the "Closing") will
occur upon the later of: (i) receipt of acceptable subscriptions equal to
$6,000,000 (or 1,764,706 Units) or (ii) the closing of the Merger. The Offering
will terminate on October 31, 2007, unless extended without notice by Pubco and
the placement agent (the "Placement Agent") for the Offering for no more than
two 30 day periods thereafter. If Pubco elects to extend the Offering period
beyond October 31, 2007 and subscriptions for at least 1,764,706 Units have not
been received and accepted by Pubco or the closing of the Merger has not
occurred by such date, Pubco shall provide all prospective subscribers notice of
its intention to so extend the offer and provide such subscribers with the
opportunity to have all of such subscriber's funds on deposit with the Escrow
Agent returned, without interest or deduction. The Closing of the Merger shall
be a condition to closing the Offering.

3. REPRESENTATIONS AND WARRANTIES

      3.1 INVESTOR REPRESENTATIONS: The Investor hereby acknowledges, agrees
with and represents and warrants to Pubco, as follows:

      (a) The Investor has full power and authority to enter into and deliver
this Agreement and to perform the obligations hereunder, and the execution,
delivery and performance of this Agreement has been duly authorized, if
applicable, and this Agreement constitutes a valid and legally binding
obligation of the Investor.

      (b) The Investor acknowledges his, her or its understanding that the
offering and sale of the Shares and Warrants comprising the Units (the
"Underlying Securities") is intended to be exempt from registration under the
Securities Act of 1933, as amended (the "Securities Act"), by virtue of Section
4(2) of the Securities Act and the provisions of Regulation D promulgated
thereunder ("Regulation D"). In furtherance thereof, the Investor represents and
warrants to Pubco as follows:

            (i) The Investor is acquiring the Underlying Securities solely for
the Investor's own beneficial account, for investment purposes, and not with
view to, or resale in connection with, any distribution of the Underlying
Securities, in violation of the Securities Act or any applicable state
securities law, has no present intention of distributing any of such Underlying
Securities in violation of the Securities Act or any applicable state securities
law and has no direct or indirect arrangement or understandings with any other
persons to distribute or regarding the distribution of the Underlying Securities
(this representation and warranty not limiting the Investor's right to sell the
Underlying Securities pursuant to the Registration Statement or otherwise in
compliance with applicable federal and state securities laws) in violation of
the Securities Act or any applicable state securities law.

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            (ii) The Investor has the financial ability to bear the economic
risk of his, her or its investment, has adequate means for providing for its
current needs and contingencies, and has no need for liquidity with respect to
the investment in Pubco.

            (iii) The Investor and the Investor's attorney, accountant,
purchaser representative and/or tax advisor, if any (collectively, "Advisors"),
have received, carefully reviewed and understand the information contained in
the Confidential Private Placement Memorandum, dated October 17, 2007, together
with all appendices and exhibits thereto (as such documents may be amended or
supplemented, the "Memorandum"), relating to the Offering.

            (iv) The Investor (together with his, her or its Advisors, if any)
has such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of the prospective investment in the
Units. If other than an individual, the Investor also represents it has not been
organized solely for the purpose of acquiring the Units.

      (c) The information in the Confidential Investor Questionnaire attached
hereto as Exhibit A and completed and executed by the Investor is true and
accurate in all respects, and the Investor is an "accredited investor," as that
term is defined in Rule 501(a) of Regulation D.

      (d) The Investor is not relying on Pubco or its affiliates or agents with
respect to economic considerations involved in this investment. The Investor has
relied on the advice of, or has consulted with, only his, her or its Advisors.
Each Advisor, if any, is capable of evaluating the merits and risks of an
investment in the Units as such are described in the Memorandum, and each
Advisor, if any, has disclosed to the Investor in writing (a copy of which is
annexed to this Agreement) the specific details of any and all past, present or
future relationships, actual or contemplated, between the Advisor and the
Placement Agent or any affiliate or sub-agent thereof.

      (e) The Investor represents, warrants and agrees that he, she or it will
not sell or otherwise transfer the Underlying Securities without registration
under the Securities Act or an exemption therefrom, and fully understands and
agrees that the Investor must bear the economic risk of his, her or its purchase
because, among other reasons, the Underlying Securities have not been registered
under the Securities Act or under the securities laws of any state and,
therefore, cannot be resold, pledged, assigned or otherwise disposed of unless
they are subsequently registered under the Securities Act and under the
applicable securities laws of such states, or an exemption from such
registration is available. In particular, the Investor is aware that the
Underlying Securities are "restricted securities," as such term is defined in
Rule 144 promulgated under the Securities Act ("Rule 144"), and they may not be
sold pursuant to Rule 144 unless all of the conditions of Rule 144 are met. The
Investor also understands that, except as otherwise provided in Section 4
hereof, Pubco is under no obligation to register the Underlying Securities on
his, her or its behalf or to assist them in complying with any exemption from
registration under the Securities Act or applicable state securities laws. The
Investor understands that any sales or transfers of the Underlying Securities
are further restricted by state securities laws and the provisions of this
Agreement.

      (f) The Investor understands and agrees that the certificates for the
Underlying Securities shall bear substantially the following legend until (i)
the Shares shall have been registered under the Securities Act and effectively
disposed of in accordance with a registration statement that has been declared
effective or (ii) in the opinion of counsel for Pubco, the Shares may be sold
without registration under the Securities Act, as well as any applicable "blue
sky" or state securities laws:

[NEITHER] THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS
[EXERCISABLE] [CONVERTIBLE]] HAS [NOT] BEEN REGISTERED WITH THE

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SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT
OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO
THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY
ACCEPTABLE TO THE COMPANY. THIS SECURITY [AND THE SECURITIES ISSUABLE UPON
[EXERCISE] [CONVERSION] OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION WITH A
BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

The Company acknowledges and agrees that the Investor may from time to time
pledge pursuant to a bona fide margin agreement with a registered broker-dealer
or grant a security interest in some or all of the Underlying Securities to a
financial institution that is an "accredited investor" as defined in Rule 501(a)
under the Securities Act and who agrees to be bound by the provisions of this
Agreement and the Registration Rights Agreement and, if required under the terms
of such arrangement, the Investor may transfer pledged or secured Underlying
Securities to the pledgees or secured parties. Such a pledge or transfer would
not be subject to approval of the Company and no legal opinion of legal counsel
of the pledgee, secured party or pledgor shall be required in connection
therewith. Further, no notice shall be required of such pledge. At the
Investor's expense, the Company will execute and deliver such reasonable
documentation as a pledgee or secured party of Underlying Securities may
reasonably request in connection with a pledge or transfer of the Underlying
Securities, including, if the Underlying Securities are subject to registration
pursuant to the Registration Rights Agreement, the preparation and filing of any
required prospectus supplement under Rule 424(b)(3) under the Securities Act or
other applicable provision of the Securities Act.

      (g) No representations or warranties have been made to the Investor by
Pubco or RedRoller, or any of their respective officers, employees, agents,
sub-agents, affiliates or subsidiaries, other than any representations of Pubco
or RedRoller contained in the Memorandum or this Agreement, and in subscribing
for the Units the Investor is not relying upon any representations other than
those contained in the Memorandum or this Agreement.

      (h) The Investor understands and acknowledges that his, her or its
purchase of the Units is a speculative investment that involves a high degree of
risk and the potential loss of the Investor's entire investment and has
carefully read and considered the matters set forth in the Memorandum, in
particular the matters discussed in the Section contained therein entitled "RISK
FACTORS," and, in particular, acknowledges that Pubco has a limited operating
history and, subsequent to the Merger, will be engaged in a highly-competitive
business sector.

      (i) The Investor's overall commitment to investments that are not readily
marketable is not disproportionate to the Investor's net worth, and an
investment in the Units will not cause such overall commitment to become
excessive.

      (j) Neither the U.S. Securities and Exchange Commission (the "SEC") nor
any state securities commission has approved the Underlying Securities or passed
upon or endorsed the merits of the Offering or confirmed the accuracy or
determined the adequacy of the Memorandum. The Memorandum has not been reviewed
by any federal, state or other regulatory authority. Any representation to the
contrary is a crime.

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      (k) The Investor and his, her or its Advisors, if any, have had a
reasonable opportunity to ask questions of and receive answers from a person or
persons acting on behalf of Pubco and RedRoller concerning the offering of the
Units and the business, financial condition, results of operations and prospects
of Pubco and RedRoller, and all such questions have been answered to the full
satisfaction of the Investor and his, her or its Advisors, if any.

      (l) The Investor is unaware of, is in no way relying on, and did not
become aware of the offering of the Units through or as a result of, any form of
general solicitation or general advertising including, without limitation, any
article, notice, advertisement or other communication published in any
newspaper, magazine or similar media or broadcast over television or radio, or
electronic mail over the Internet, in connection with the offering and sale of
the Units and is not subscribing for Units and did not become aware of the
offering of the Units through or as a result of any seminar or meeting to which
the Investor was invited by, or any solicitation of a subscription by, a person
not previously known to the Investor in connection with investments in
securities generally.

      (m) The Investor has taken no action which would give rise to any claim by
any person for brokerage commissions, finders, fees or the like relating to this
Agreement or the transactions contemplated hereby (other than commissions to be
paid by Pubco and RedRoller to the Placement Agent, its sub-agents or as
otherwise described in the Memorandum).

      (n) The Investor is not relying on Pubco, RedRoller, the Placement Agent,
or any of their respective employees, agents or sub-agents with respect to the
legal, tax, economic and related considerations of an investment in the Units,
and the Investor has relied on the advice of, or has consulted with, only his,
her or its own Advisors.

      (o) The Investor acknowledges that any estimates or forward-looking
statements or projections included in the Memorandum were prepared by the future
management of Pubco in good faith, but that the attainment of any such
projections, estimates or forward-looking statements cannot be guaranteed by
Pubco, RedRoller or their respective management and should not be relied upon.

      (p) No oral or written representations have been made, or oral or written
information furnished, to the Investor or his, her or its Advisors, if any, in
connection with the offering of the Units which are in any way inconsistent with
the information contained in the Memorandum.

      (q) The Investor's substantive relationship with the Placement Agent or
sub-agents through which the Investor is subscribing for Units predates the
Placement Agent's or such sub-agents' contact with the Investor regarding an
investment in the Units.

      (r) (For ERISA plans only) The fiduciary of the ERISA plan (the "Plan")
represents that such fiduciary has been informed of and understands Pubco's
investment objectives, policies and strategies, and that the decision to invest
"plan assets" (as such term is defined in ERISA) in Pubco is consistent with the
provisions of ERISA that require diversification of plan assets and impose other
fiduciary responsibilities. The subscriber or Plan fiduciary (a) is responsible
for the decision to invest in Pubco; (b) is independent of Pubco and any of its
affiliates; (c) is qualified to make such investment decision; and (d) in making
such decision, the subscriber or Plan fiduciary has not relied primarily on any
advice or recommendation of Pubco or any of its affiliates or its agents.

      3.2 COMPANY REPRESENTATIONS: For purposes of this Section 3.2 the Company
shall mean Pubco after giving effect to the Merger and the closing of the
Offering. The Company hereby acknowledges, agrees with and represents and
warrants to the Investor, as follows:

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      (a) RESERVED.

      (b) The authorized capital stock of the Company consists of 225,000,000
shares of which 200,000,000 shares are designated Common Stock and 25,000,000
are designated as preferred stock. As of the closing of the Offering and the
Merger there will be 24,842,041 shares of Common Stock issued and outstanding,
2,622,382 shares of Common Stock underlying Warrants issued in connection with
the Offering and the warrants issued to the Placement Agent on connection with
the Offering, and 7,999,928 shares of Common Stock underlying stock options
granted to various employees, consultants and advisors of the Company. All
outstanding shares of capital stock of the Company are duly authorized, validly
issued, fully paid and non-assessable. Other than (i) the Underlying Securities
issued in connection with the Offering and (ii) the stock options to purchase
shares of Common Stock issued in connection with the Offering to former holders
of stock options to purchase shares of RedRoller common stock, the Company has
not issued any other options, warrants, script rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities, rights or
obligations convertible into or exercisable or exchangeable for, or entered into
any agreement giving any Person any right to subscribe for or acquire, any
shares of Common Stock, or securities or rights convertible or exchangeable into
shares of Common Stock. Except for customary adjustments as a result of stock
dividends, stock splits, combinations of shares, reorganizations,
recapitalizations, reclassifications or other similar events, there are no
anti-dilution or price adjustment provisions contained in any security issued by
the Company (or in any agreement providing rights to security holders) and the
issuance and sale of the Underlying Securities will not obligate the Company to
issue shares of Common Stock or other securities to any Person (other than the
investors in the Offering) and will not result in a right of any holder of
Company securities to adjust the exercise, conversion, exchange or reset price
under such securities.

      (c) The Units and Underlying Securities are duly authorized and, when
issued and paid for in accordance with the Transaction Documents, will be duly
and validly issued, fully paid and non-assessable, free and clear of all liens
and shall not be subject to preemptive or similar rights of stockholders (other
than those imposed by the investors in the Offering).

      (d) The execution, delivery and performance of each of the Transaction
Documents has been duly and validly authorized by the Company and is a valid and
binding obligation of the Company, enforceable in accordance with its respective
terms, except to the extent that (a) the enforceability hereof or thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
from time to time in effect and affecting the rights of creditors generally, (b)
the enforceability hereof or thereof is subject to general principles of equity;
or (c) the indemnification provisions hereof or thereof may be held to be
violative of public policy.

      (e) The issuance, sale and delivery by the Company of the Underlying
Securities have been or will be prior to the Closing duly authorized by all
requisite corporate action of the Company. The Warrant Shares are duly reserved
for issuance upon exercise of the Warrants.

      (f) Each of the Company and its subsidiaries has good and marketable title
to, or valid and enforceable leasehold estates in, all items of real and
personal property necessary to conduct its business (including, without
limitation, any real or personal property stated in the Subscription Documents
to be owned or leased by the Company and its subsidiaries), free and clear of
all liens, encumbrances, claims, security interests and defects of any nature
whatsoever, other than those set forth in the Subscription Documents, and liens
for taxes not yet due and payable. All of the leases and subleases under which
the Company is the lessor or sublessor of properties or assets or under which
the Company holds properties or assets as lessee or sublessee are in full force
and effect, and the Company is not in default with respect to any of the terms
or provisions of any of such leases or subleases, and no claim has been asserted
by

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anyone adverse to rights of the Company as lessor, sublessor, lessee or
sublessee under any of the leases or subleases mentioned above, or affecting or
questioning the right of the Company to continued possession of the leased or
subleased premises or assets under any such lease or sublease.

      (g) There is no litigation or governmental proceeding pending or, to the
best of the Company's knowledge, threatened against, or involving the Company or
its subsidiaries or their properties or business, except as set forth in the
Subscription Documents. The Company is not a party to any order, writ,
injunction, judgment or decree of any court.

      (h) Each of the Company and its subsidiaries is duly organized and is
validly existing as a corporation in good standing under its respective
jurisdiction of incorporation. Except for RedRoller and TSE and except as set
forth in the Subscription Documents, the Company does not own or control,
directly or indirectly, an interest in any other corporation, partnership,
trust, joint venture or other business entity. The Company owns 100% of the
outstanding capital stock of RedRoller. RedRoller owns 100% of the outstanding
capital stock of TSE. Each of the Company and its subsidiaries is duly qualified
or licensed and in good standing as a foreign corporation in each jurisdiction
in which the character of its operations requires such qualification or
licensing and where failure to so qualify would have a Company Material Adverse
Effect (as defined below). Each of the Company and its subsidiaries has all
requisite corporate power and authority, and all material and necessary
authorizations, approvals, orders, licenses, certificates and permits of and
from all governmental regulatory officials and bodies (domestic and foreign) to
conduct its businesses (and proposed business), and each of the Company and its
subsidiaries is doing business in compliance with all such authorizations,
approvals, orders, licenses, certificates and permits and all foreign, federal,
state and local laws, rules and regulations concerning the business in which it
is engaged, except where failure to so comply would not have a Company Material
Adverse Effect. The Company has all corporate power and authority to enter into
the Subscription Documents and to carry out the provisions and conditions hereof
and thereof and to issue, sell and deliver the Underlying Securities. No
consents, authorizations, approvals, or orders of, or registration,
qualification, declaration or filing with, any federal, state or local
governmental authority on the part of the Company is required in connection
herewith and therewith or to issue, sell and deliver the Underlying Securities,
other than registration or qualification, or taking such action to secure
exemption from such registration or qualification, of the Underlying Securities
under applicable state, federal or foreign securities laws. For purposes of this
Agreement, "Company Material Adverse Effect" means a material adverse effect on
the assets, business, condition (financial or otherwise), results of operations
or future prospects of the Company.

      (i) Except as set forth in the Subscription Documents, each of the Company
and its subsidiaries is not in breach of, or in default under, any term or
provision of any indenture, mortgage, deed of trust, lease, note, loan or credit
agreement or any other agreement or instrument evidencing an obligation for
borrowed money, or any other agreement or instrument to which it is a party or
by which it or any of its properties may be bound, except for any breach or
default that has not had or would not be reasonably likely to have a Company
Material Adverse Effect and excluding trade payables and purchase orders as
generally described in the Subscription Documents. Each of the Company and its
subsidiaries is not in violation of any provision of its charter or Bylaws or in
violation of any franchise, license, permit, judgment, decree or order, or in
violation of any statute, rule or regulation, except for the violation of
statutes, rules or regulations would not that would not be reasonably likely to
have a Company Material Adverse Effect. Neither the execution and delivery of
this Agreement and the Subscription Documents, nor the issuance and sale or
delivery of the Underlying Securities, nor the consummation of any of the
transactions contemplated herein or in the Subscription Documents, nor the
compliance by each of the Company and its subsidiaries with the terms and
provisions hereof or thereof, has conflicted with or will conflict with, or has
resulted in or will result in a breach of, any of the terms and provisions of,
or has constituted or will constitute a default under, or has resulted in or
will result in the creation or imposition

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of any lien, charge or encumbrance upon any property or assets of the Company
and its subsidiaries pursuant to the terms of any indenture, mortgage, deed of
trust, note, loan or credit agreement or any other agreement or instrument
evidencing an obligation for borrowed money, or any other agreement or
instrument to which the Company or its subsidiaries may be bound or to which any
of the property or assets of the Company or its subsidiaries is subject except
where such default, lien, charge or encumbrance would not have a Company
Material Adverse Effect; nor will such action result in any violation of the
provisions of the charter or the Bylaws of each of the Company and its
subsidiaries or, assuming the due performance by the Placement Agent of its
obligations in connection with the Offering, any statute, order, rule or
regulation applicable to the Company or its subsidiaries of any court or of any
foreign, federal, state or other regulatory authority or other government body
having jurisdiction over each of the Company and its subsidiaries.

      (j) Except as set forth on Schedule 3.2(j) hereto, neither the Company nor
any of its officers, directors, employees or stockholders has employed any
broker or finder in connection with the transactions contemplated by this
Agreement other than the Placement Agent and there are no claims for services in
the nature of a finder's or origination fee with respect to the sale of the
Underlying Securities.

      (k) Each of the Company and its subsidiaries owns or possesses, free and
clear of all liens or encumbrances and rights thereto or therein by third
parties, the requisite licenses or other rights to use all trademarks, service
marks, copyrights, service names, trade names, patents, patent applications and
licenses necessary to conduct its business (including, without limitation, any
such license, patent or rights described in the Subscription Documents as being
owned or possessed by each of the Company and its subsidiaries) and there is no
claim or action by any person pertaining to, or proceeding, pending or to the
Company's knowledge, threatened, which challenges the rights of each of the
Company and its subsidiaries with respect to any trademarks, service marks,
copyrights, service names, trade names, patents, patent applications and
licenses used in the conduct of each of the Company's and its subsidiaries'
businesses (including, without limitation, any such licenses or rights described
in the Subscription Documents as being owned or possessed by each of the Company
and its subsidiaries); each of the Company's and its subsidiaries' current
products, services or processes do not infringe or will not infringe on the
patents currently held by any third party.

      (l) Each of the Company and its subsidiaries is not under any obligation
to pay royalties or fees of any kind whatsoever to any third party with respect
to any trademarks, service marks, copyrights, service names, trade names,
patents, patent applications, licenses or technology it has developed, uses,
employs or intends to use or employ, other than to their respective licensors.

      (m) Subject to the performance by the Placement Agent of its obligations
in connection with the Offering and the accuracy of the representations and
warranties made by the investors in the Offering in the Subscription Documents,
the Subscription Documents and the offer and sale of the Underlying Securities
comply, and will continue to comply, through the closing of the Offering with
the requirements of Rule 506 of Regulation D promulgated by the Commission
pursuant to the Underlying Securities Act and any other applicable federal and
state laws, rules, regulations and executive orders. Neither the Subscription
Documents nor any amendment or supplement thereto, nor any other documents
prepared by the Company in connection with the Offering contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. All statements of
material facts in the Subscription Documents are true and correct as of the date
of the Subscription Documents and will be true and correct in all material
respects on the date of the closing of the Offering.

      (n) RESERVED.

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      (o) The financial statements of RedRoller included in the Memorandum
fairly present the financial position, results of operations, stockholders
equity and cash flows, in all material respects, of RedRoller at the respective
dates thereof and for the periods referred to therein.

      (p) Neither the Company nor its subsidiaries, nor any of their respective
officers, directors, employees or agents, nor any other person acting on behalf
of the Company or its subsidiaries has, directly or indirectly, given or agreed
to give any money, gift or similar benefit (other than legal price concessions
to customers in the ordinary course of business) to any customer, supplier,
employee or agent of a customer or supplier, or official or employee of any
governmental agency or instrumentality of any government (domestic or foreign)
or any political party or candidate for office (domestic or foreign) or other
person who is or may be in a position to help or hinder the business of each of
the Company or its subsidiaries (or assist it in connection with any actual or
proposed transaction) which (A) might subject the Company and its subsidiaries
to any material damage or penalty in any civil, criminal or governmental
litigation or proceeding, or (B) if not given in the past, might have had a
Company Material Adverse Effect on the assets, business or operations of the
Company or its subsidiaries, or (C) if not continued in the future, might
adversely affect the assets, business or operations of the Company or its
subsidiaries in the future.

      (q) Assuming (i) the accuracy of the information provided by the Investor
and the other investors in the Offering in the Subscription Documents and (ii)
that the Placement Agent has complied in all material respects with their
obligations under the Placement Agent Agreement, the offer and sale of the Units
pursuant to the terms of the Subscription Documents are exempt from the
registration requirements of the Securities Act and the rules and regulations
promulgated thereunder.

      (r) When the Warrant Shares shall have been duly delivered to the
purchaser and payment shall have been made therefor, the purchasers shall have
good and marketable title to the Warrant Shares free and clear of all liens,
encumbrances and claims whatsoever and the Company shall have paid all taxes, if
any, in respect of the original issuance thereof.

      (s) The Company understands that the representations and warranties set
forth in this Section 3.2 shall be deemed material and to have been relied upon
by the Investor. No representation or warranty by the Company in this Agreement,
and no written statement contained in any document, certificate or other writing
delivered by the Company to the Investor contains any untrue statement of
material fact or omits to state any material fact necessary to make the
statements herein or therein, in light of the circumstances under which they
were made, not misleading.

      (t) RESERVED.

      (u) RESERVED.

      (v) Except as set forth on Schedule 3.2(v) hereto, as of the date hereof,
the Company has no contractual liability or any other liability, whether
accrued, contingent, absolute, determined, indeterminable or otherwise, which
was not (i) reflected or reserved against in the financial statements of
RedRoller included in the Memorandum or (ii) incurred in the ordinary course of
business, consistent with past practice since its inception.

      (w) To the best of Company's knowledge, since September 30, 2007, the
Company has not incurred any liabilities or obligations, direct or contingent,
not consistent with its past practices, or entered into any transaction not
consistent with its past practices, which is material to the business of the
Company, and, since the date of the Memorandum, except for the transactions
contemplated by or occurring in connection with the Merger and the Offering,
there has not been any change in the capital

                                        9
<PAGE>

stock of, or any incurrence of funded debt by, the Company, or any issuance of
options, warrants or other rights to purchase the capital stock of the Company,
or any adverse change or any development involving, so far as the Company can
now reasonably foresee, a prospective adverse change in the condition (financial
or otherwise), net worth, results of operations, business, key personnel or
properties which would be material to the business or financial condition of the
Company, and the Company has not become a party to, and neither the business nor
the property of the Company has become the subject of, any material litigation
whether or not in the ordinary course of business.

      (x) The Company has filed all Federal, State, local and foreign tax
returns, if any, which are required to be filed by it to the relevant agencies
and all such returns are true and correct in all material respects except as the
Company has paid all taxes pursuant to such returns or pursuant to any
assessments received by it or which it is obligated to withhold from amounts
owing to any employee, creditor or third party. The Company has properly accrued
all taxes required to be accrued by generally accepted accounting principals
consistently applied. To the best of current management's knowledge, the tax
returns of the Company have never been audited by any state, local or Federal
authorities. The Company has not waived any statute of limitations with respect
to taxes or agreed to any extension of time with respect to any tax assessment
or deficiency.

      (y) Except with respect to holders of the Units, no person has any right
to cause the Company to effect the registration under the Securities Act of any
securities of the Company. The Company shall grant registration rights under the
Securities Act to the investors in the Offering and/or their transferees as more
fully described in the Registration Rights Agreement attached hereto as Exhibit
B (the "Registration Rights Agreement"). No person, firm or other business
entity is a party to any agreement, contract or understanding, written or oral
entitling such party to a right of first refusal with respect to offerings by
the Company.

      (z) Except as described in Schedule 3.2(z), there is no control share
acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provision under the Company's
charter documents or the laws of its state of incorporation ("Takeover
Protections") that is or could become applicable to any of the investors in the
Offering as a result of such investors and the Company fulfilling their
obligations or exercising their rights under the Transaction Documents,
including, without limitation, as a result of the Company's issuance of the
Underlying Securities and the investors' ownership of the Underlying Securities.

      (aa) The Company and its subsidiaries own, or possess adequate rights or
licenses to use, all trademarks, trade names, service marks, service mark
registrations, service names, patents, patent rights, copyrights, inventions,
licenses, approvals, governmental authorizations, trade secrets and other
intellectual property rights ("Intellectual Property Rights") necessary to
conduct their respective businesses as presently conducted. There is no current
claim, action or proceeding, or to the knowledge of the Company, being
threatened or brought, against the Company or any of its subsidiaries regarding
its Intellectual Property Rights. The Company is unaware of any facts or
circumstances, which might give rise to any of the foregoing infringements or
claims, actions or proceedings. The Company and its subsidiaries have taken
reasonable security measures to protect the secrecy, confidentiality and value
of all of their Intellectual Property Rights. None of the Company's Intellectual
Property Rights have expired, terminated or have been abandoned, or are expected
to expire or terminate without renewal, or be abandoned, within three years from
the date of this Agreement, except for such expirations or terminations without
renewal, or abandonments, in either case which would not, individually or in the
aggregate have a Company Material Adverse Effect.

      (bb) The Company and its subsidiaries are insured by insurers of
recognized financial responsibility against such losses and risks and in such
amounts as are prudent and customary in the

                                       10
<PAGE>

businesses and location in which the Company and the subsidiaries are engaged.
Neither the Company nor any Subsidiary has any knowledge that it will not be
able to renew its existing insurance coverage as and when such coverage expires
or to obtain similar coverage from similar insurers as may be necessary to
continue its business without a significant increase in cost.

      (cc) None of the officers, directors or employees of the Company is a
party to any transaction that would be required to be reported on Form 10-KSB
with the Company or any of its subsidiaries (other than for ordinary course
services as employees, officers or directors), including any contract, agreement
or other arrangement providing for the furnishing of services to or by,
providing for rental of real or personal property to or from, or otherwise
requiring payments to or from any such officer, director or employee or, to the
Company's knowledge, any corporation, partnership, trust or other entity in
which any such officer, director, or employee has a substantial interest or is
an officer, director, trustee or partner.

      (dd) The Company is in compliance with applicable requirements of the
Sarbanes-Oxley Act of 2002 and applicable rules and regulations promulgated by
the SEC thereunder, except where such noncompliance would not have, individually
or in the aggregate, a Company Material Adverse Effect.

      (ee) RESERVED.

      (ff) RESERVED.

      (gg) Except as set forth on Schedule 3.2 (gg) hereto, neither the Company
nor any of its subsidiaries (i) has any outstanding Indebtedness (as defined
below), (ii) is in violation of any term of or in default under any contract,
agreement or instrument relating to any Indebtedness, except where such
violations and defaults would not result, individually or in the aggregate, in a
Company Material Adverse Effect, or (iii) is a party to any contract, agreement
or instrument relating to any Indebtedness, the performance of which, in the
judgment of the Company's officers, has or is expected to have a Company
Material Adverse Effect. Schedule 3.2(gg) provides a detailed description of the
material terms of any such outstanding Indebtedness. For purposes of this
Agreement: (x) "Indebtedness" of any Person means, without duplication (A) all
indebtedness for borrowed money, (B) all obligations issued, undertaken or
assumed as the deferred purchase price of property or services (other than trade
payables entered into in the ordinary course of business), (C) all reimbursement
or payment obligations with respect to letters of credit, surety bonds and other
similar instruments, (D) all obligations evidenced by notes, bonds, debentures
or similar instruments, including obligations so evidenced incurred in
connection with the acquisition of property, assets or businesses, (E) all
indebtedness created or arising under any conditional sale or other title
retention agreement, or incurred as financing, in either case with respect to
any property or assets acquired with the proceeds of such indebtedness (even
though the rights and remedies of the seller or bank under such agreement in the
event of default are limited to repossession or sale of such property), (F) all
monetary obligations under any leasing or similar arrangement which, in
connection with generally accepted accounting principles, consistently applied
for the periods covered thereby, is classified as a capital lease, (G) all
indebtedness referred to in clauses (A) through (F) above secured by (or for
which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any mortgage, lien, pledge, charge, security
interest or other encumbrance upon or in any property or assets (including
accounts and contract rights) owned by any Person, even though the Person which
owns such assets or property has not assumed or become liable for the payment of
such indebtedness, and (H) all Contingent Obligations in respect of indebtedness
or obligations of others of the kinds referred to in clauses (A) through (G)
above; (y) "Contingent Obligation" means, as to any Person, any direct or
indirect liability, contingent or otherwise, of that Person with respect to any
indebtedness, lease, dividend or other obligation of another Person if the
primary purpose or intent of the Person incurring such liability, or the primary
effect thereof, is to provide assurance to the obligee of such liability that
such

                                       11
<PAGE>

liability will be paid or discharged, or that any agreements relating thereto
will be complied with, or that the holders of such liability will be protected
(in whole or in part) against loss with respect thereto; and (z) "Person" means
an individual, a limited liability company, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization and a government or any
department or agency thereof.

      (hh) Neither Company nor any of its subsidiaries is a party to any
collective bargaining agreement or employs any member of a union. The Company
and its subsidiaries believe that their relations with their employees are good.
No executive officer of the Company or any of its subsidiaries (as defined in
Rule 501(f) of the Securities Act) has notified the Company or any such
Subsidiary that such officer intends to leave the Company or any such Subsidiary
or otherwise terminate such officer's employment with the Company or any such
Subsidiary. No executive officer of the Company or any of its subsidiaries, to
the knowledge of the Company or any such Subsidiary, is now, or expects to be,
in violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement, non-competition agreement, or
any other contract, agreement or any restrictive covenant, and the continued
employment of each such executive officer does not subject the Company or any
such Subsidiary to any liability with respect to any of the foregoing matters.
The Company and its subsidiaries are in compliance with all federal, state,
local and foreign laws and regulations respecting labor, employment and
employment practices and benefits, terms and conditions of employment and wages
and hours, except where failure to be in compliance would not, either
individually or in the aggregate, reasonably be expected to result in a Company
Material Adverse Effect. There are no material complaints or charges against the
Company or its subsidiaries pending or, to the knowledge of the Company and its
subsidiaries, threatened to be filed with any Governmental Authority or
arbitrator based on, arising out of, in connection with, or otherwise relating
to the employment or termination of employment by the Company or its
subsidiaries of any individual.

      (ii) The Company and its subsidiaries (i) are in compliance with any and
all Environmental Laws (as hereinafter defined), (ii) have received all permits,
licenses or other approvals required of them under applicable Environmental Laws
to conduct their respective businesses and (iii) are in compliance with all
terms and conditions of any such permit, license or approval where, in each of
the foregoing clauses (i), (ii) and (iii), the failure to so comply could be
reasonably expected to have, individually or in the aggregate, a Company
Material Adverse Effect. The term "Environmental Laws" means all federal, state,
local or foreign laws relating to pollution or protection of human health or the
environment (including, without limitation, ambient air, surface water,
groundwater, land surface or subsurface strata), including, without limitation,
laws relating to emissions, discharges, releases or threatened releases of
chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes
(collectively, "Hazardous Materials") into the environment, or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Hazardous Materials, as well as all
authorizations, codes, decrees, demands or demand letters, injunctions,
judgments, licenses, notices or notice letters, orders, permits, plans or
regulations issued, entered, promulgated or approved thereunder.

4. REGISTRATION RIGHTS

      The Investor shall have registration rights with respect to the Shares
issued and held of record by the Investor and the shares of Common Stock
underlying the Warrants, as set forth in greater detail in the Registration
Rights Agreement.

5. INSIDER TRADING PROHIBITION; INDEMNITY; ESCROW RELEASE

      (a) The Company shall, by 8:30 a.m. (New York City time) on the day
following the Closing, issue a Current Report on Form 8-K disclosing the
material terms of the transactions

                                       12
<PAGE>

contemplated hereby and attaching the Transaction Documents as exhibits thereto.
Until the filing by Pubco of a current report on Form 8-K with the SEC
describing the Merger and the Offering, the Investor hereby agrees to (i)
refrain from (A) engaging in any transactions with respect to the capital stock
of Pubco or securities exercisable or convertible into or exchangeable for any
shares of capital stock of Pubco, and (B) entering into any transaction which
would have the same effect, or entering into any swap, hedge or other
arrangement that transfers, in whole or in part, any of the economic
consequences of ownership of the capital stock of Pubco and (ii) indemnify and
hold harmless Pubco, the Placement Agent, and their respective officers and
directors, employees, agents, sub-agents and affiliates and each other Person,
if any, who controls any of the foregoing, against any loss, liability, claim,
damage and expense whatsoever (including, but not limited to, any and all
expenses whatsoever reasonably incurred in investigating, preparing or defending
against any litigation commenced or threatened or any claim whatsoever) arising
out of or based upon any violation of this Section 5 by the Investor.

      (b) The Investor agrees to indemnify and hold harmless Pubco, the
Placement Agent, the Escrow Agent and their respective officers and directors,
employees, agents, sub-agents and affiliates and each other Person, if any, who
controls any of the foregoing, against any loss, liability, claim, damage and
expense whatsoever (including, but not limited to, any and all expenses
whatsoever reasonably incurred in investigating, preparing or defending against
any litigation commenced or threatened or any claim whatsoever) arising out of
or based upon any false representation or warranty by the Investor, or the
Investor's breach of, or failure to comply with, any covenant or agreement made
by the Investor herein or in any other document furnished by the Investor to
Pubco, the Placement Agent, the Escrow Agent and their respective officers and
directors, employees, agents, sub-agents and affiliates and each other Person,
if any, who controls any of the foregoing in connection with the Offering.

      (c) The subscriber acknowledges that the Placement Agent may act on behalf
of the subscribers, solely for the sake of convenience, in connection with
confirmation to the Escrow Agent that the Closing has occurred and thereby
direct the Escrow Agent to disburse the subscription funds held in escrow to
Pubco at such time.

6. CONDITIONS TO ACCEPTANCE OF SUBSCRIPTION

      Pubco's right to accept the subscription of the Investor is conditioned
upon satisfaction of the following conditions precedent on or before the date
Pubco accepts such subscription (any or all of which may be waived by the
Investor in his, her or its sole discretion):

      (a) On the date of the Closing, no legal action, suit or proceeding shall
be pending which seeks to restrain or prohibit the transactions contemplated by
this Agreement.

      (b) The closing of the Merger shall occur concurrently with or prior to
the acceptance of this subscription.

7. NOTICES TO SUBSCRIBERS

      (a) THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OR THE SECURITIES LAWS OF ANY STATE AND ARE BEING OFFERED AND
SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND SUCH LAWS. THE SHARES HAVE NOT BEEN APPROVED OR DISAPPROVED
BY THE SEC, ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR
HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THIS
OFFERING OR THE ACCURACY OR ADEQUACY OF THE MEMORANDUM. ANY REPRESENTATION TO
THE CONTRARY IS UNLAWFUL.

                                       13
<PAGE>

      (b) THE UNDERLYING SECURITIES ARE SUBJECT TO RESTRICTIONS ON
TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS
PERMITTED UNDER THE SECURITIES ACT, AND APPLICABLE STATE SECURITIES LAWS,
PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. SUBSCRIBERS SHOULD BE AWARE
THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME.

      (c) THE SALE OF THE SECURITIES THAT ARE THE SUBJECT OF THIS OFFERING HAS
NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF
CALIFORNIA AND THE ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY
PART OF THE CONSIDERATION FOR SUCH SECURITIES PRIOR TO SUCH QUALIFICATION IS
UNLAWFUL, UNLESS THE SALE OF THE SECURITIES IS EXEMPT FROM QUALIFICATION BY
SECTION 25000, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF
ALL PARTIES ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED,
UNLESS THE SALE IS SO EXEMPT.

8. INDEMNIFICATION

      8.1 The Company agrees to indemnify and hold harmless the Investor, its
directors, officers and employees, and each other person or entity, if any, who
controls the Investor (within the meaning of Section 15 of the Securities Act or
Section 20 of the Securities Exchange Act of 1934, as amended (the "Exchange
Act")) (each a "Company Indemnified Person"), from and against, and the Company
agrees that no Indemnified Person shall have any liability to the Company or its
owners, parents, affiliates, securityholders or creditors for, any losses,
claims, damages, liabilities or expenses (including actions, claims or
proceedings in respect thereof brought by or against any person, including
stockholders of the Company, and the cost of any investigation and preparation
therefore and defense thereof) (collectively, "Investor Losses") related to or
arising out of or relating to (i) any misrepresentation or breach of any
representation or warranty made by the Company in this Agreement or (ii) any
breach of any covenant, agreement or obligation of the Company contained in the
Transaction Documents.

      8.2 The Investor agrees to indemnify and hold harmless the Company, its
directors, officers and employees, and each other person or entity, if any, who
controls the Company (within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act) (collectively, "Investor Indemnified Persons
and, together with the Company Indemnified Persons, the "Indemnified Persons"),
from and against, and the Investor agrees that no Investor Indemnified Person
shall have any liability to the Investor or its owners, parents, affiliates,
securityholders or creditors for any for, any losses, claims, damages,
liabilities or expenses (including actions, claims or proceedings in respect
thereof) brought by or against any person, and the cost of any investigation and
preparation therefore and defense thereof (collectively, "Company Losses" and,
together with the Investor Losses, "Losses") arising out of or relating to any
misrepresentation or breach of any representation or warranty made by the
Investor to the Company in the Transaction Documents. The maximum aggregate
payment that the Investor shall be liable to pay out hereunder in respect of
indemnification of the Investor Indemnified Persons shall be limited, in the
aggregate, to the Aggregate Purchase Price.

      8.3 Promptly after receipt by an Indemnified Person (each an "indemnified
party") under this Section 8 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against any
indemnifying party under this Section 8, notify in writing the indemnifying
party of the commencement thereof, however, that no delay on the part of the
indemnified party in notifying the indemnifying party shall relieve the
indemnifying party from any obligation hereunder unless the indemnifying party
is prejudiced by such delay. In case any such action is brought

                                       14
<PAGE>

against any indemnified party, and it notifies an indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate
therein, and to the extent that it may wish, jointly with any other indemnifying
party, similarly notified, to assume the defense thereof, with counsel who shall
be to the reasonable satisfaction of such indemnified party, and after notice
from the indemnifying party to such indemnified party of its election so to
assume the defense thereof, the indemnifying party will not be liable to such
indemnified party under this Section 8 for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense
thereof other than reasonable costs of investigation; PROVIDED, HOWEVER, that
if, in the reasonable judgment of the indemnified party, it is advisable for the
indemnified party to be represented by separate counsel, the indemnified party
shall have the right to employ a single counsel only to represent the
indemnified parties who may be subject to liability arising out of any claim in
respect of which indemnity may be sought by the indemnified parties thereof
against the indemnifying party, in which event the fees and expenses of such
separate counsel shall be borne by the indemnifying party. Any such indemnifying
party shall not be liable to any such indemnified party on account of any
settlement of any claim or action effected without the consent of such
indemnifying party.

      If such an indemnity provided for in this Agreement is unavailable or
insufficient for any Indemnified Person with respect to any Losses (other than
by reason of the gross negligence or bad faith of such indemnifying party), then
the indemnifying party, in lieu of indemnifying such Indemnified Person, will
contribute to the amount paid or payable by such Indemnified Person as a result
of such Losses (i) in such proportion as it is appropriate to reflect the
relative benefits received by the Company on the one hand, and the Investor, on
the other hand, from the transactions contemplated hereunder (the
"Transactions"), or (ii) if the allocation provided by (i) above is not
permitted by applicable law in such proportion as is appropriate to reflect not
only the relative benefits referred to in (i) above, but also the relative fault
on the Company, on the one hand, and of the Investor on the other hand in
connection with statements or omissions that resulted in Losses as well as any
other relevant equitable considerations.

      The Company and the Investor agree that it would not be just and equitable
if contribution pursuant to this Section 8 were determined by pro rata
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.

THE INVESTOR HEREBY AGREES AND THE COMPANY HEREBY AGREES, ON ITS OWN BEHALF AND
ON BEHALF OF ITS SECURITYHOLDERS, TO WAIVE ANY RIGHT TO TRIAL BY JURY WITH
RESPECT TO ANY CLAIM, COUNTER-CLAIM OR ACTION ARISING OUT OF THIS AGREEMENT.

9. PUBCO COVENANTS

      (a) Furnishing of Information. Until the earliest of the time that (i) the
requirements of Rule 144(k) have been met with respect to the Underlying
Securities or (ii) the Warrants have expired, Pubco covenants to timely file (or
obtain extensions in respect thereof and file within the applicable grace
period) all reports required to be filed by Pubco after the date hereof pursuant
to the Exchange Act even if Pubco is not then subject to the reporting
requirements of the Exchange Act. Until the requirements of Rule 144(k) have
been met with respect to the Underlying Securities, if Pubco is not required to
file reports pursuant to the Exchange Act, it will prepare and furnish to the
Investor and make publicly available in accordance with Rule 144(c) such
information as is required for the Investor to sell the Underlying Securities
under Rule 144. Pubco further covenants that it will take such further action as
the Investor may reasonably request, to the extent required from time to time to
enable the Investor to sell such Underlying Securities without registration
under the Securities Act within the requirements of the exemption provided by
Rule 144 thereunder.

                                       15
<PAGE>

      (b) Integration. Pubco shall not sell, offer for sale or solicit offers to
buy or otherwise negotiate in respect of any Security (as defined in Section 2
of the Securities Act) that would be integrated with the offer or sale of the
Underlying Securities to the Investor in a manner that would require the
registration under the Securities Act of the sale of the Underlying Securities
to the Investor or that would be integrated with the offer or sale of the
Underlying Securities for purposes of the rules and regulations of any Trading
Market.

      (c) Non-Public Information. Except with respect to the material terms and
conditions of the transactions contemplated by the Transaction Documents, Pubco
covenants and agrees that neither it nor any other person acting on its behalf
will provide the Investor or its agents or counsel with any information that
Pubco believes constitutes material non-public information, unless prior thereto
the Investor shall have executed a written agreement regarding the
confidentiality and use of such information. Pubco understands and confirms that
the Investor shall be relying on the foregoing covenant in effecting
transactions in securities of Pubco.

      (d) Use of Proceeds. Pubco shall use the net proceeds from the sale of the
Units hereunder for working capital purposes and shall not use such proceeds for
(a) the satisfaction of any portion of Pubco's debt (other than payment of trade
payables in the ordinary course of Pubco's business and prior practices), (b)
the redemption of any shares of Common Stock or Common Stock equivalents or (c)
the settlement of any outstanding litigation.

      (e) Subsequent Equity Sales. From the date hereof until 60 days after the
Effective Date, neither the Company nor any subsidiary thereof shall issue
shares of Common Stock or Common Stock Equivalents; provided, however, that the
60 day period set forth in this Section 9(e) shall be extended for the number of
Trading Days during such period in which (i) trading in the Common Stock is
suspended by any Trading Market, or (ii) following the Effective Date, the
Registration Statement is not effective or the prospectus included in the
Registration Statement may not be used by the Investor for the resale of the
Shares and the shares of Common Stock issuable upon exercise of the Warrants.

      (f) Variable Rate Transactions. From the date hereof until such time as
the Investor does not hold any of the Underlying Securities, the Company shall
be prohibited from effecting or entering into an agreement to effect any
Subsequent Financing involving a Variable Rate Transaction. Notwithstanding the
foregoing, this Section 9(f) shall not apply in respect of an Exempt Issuance,
except that no Variable Rate Transaction shall be an Exempt Issuance.

      (g) Form D; Blue Sky Filings. The Company agrees to timely file a Form D
with respect to the Underlying Securities as required under Regulation D of the
Securities Act and to provide a copy thereof, promptly upon request of the
Investor. The Company shall take such action as the Company shall reasonably
determine is necessary in order to obtain an exemption for, or to qualify the
Underlying Securities for, sale to the Investors under applicable securities or
"Blue Sky" laws of the states of the United States, and shall provide evidence
of such actions promptly upon request of the Investor.

      (h) Legends. Certificates evidencing the Underlying Securities shall not
contain any legend (including the legend set forth in Section 3.1(f) hereof):
(i) while a registration statement (including the Registration Statement)
covering the resale of such security is effective under the Securities Act, or
(ii) following any sale of such Underlying Securities pursuant to Rule 144, or
(iii) if such Underlying Securities are eligible for sale under Rule 144(k), or
(iv) if such legend is not required under applicable requirements of the
Securities Act (including judicial interpretations and pronouncements issued by
the staff of the SEC). The Company shall cause its counsel to issue a legal
opinion to its transfer agent promptly after the Effective Date if required by
the transfer agent to effect the removal of the legend

                                       16
<PAGE>

hereunder. If all or any portion of a Warrant is exercised (as applicable) at a
time when there is an effective registration statement to cover the resale of
the shares of Common Stock issuable upon exercise of the Warrant, or if such
shares of Common Stock may be sold under Rule 144(k) or if such legend is not
otherwise required under applicable requirements of the Securities Act
(including judicial interpretations and pronouncements issued by the staff of
the SEC), then such shares of Common Stock shall be issued free of all legends.
The Company agrees that following the Effective Date or at such time as such
legend is no longer required under this Section 9(h), it will, no later than
three Trading Days following the delivery by the Investor to the Company or its
transfer agent of a certificate representing Shares or shares of Common Stock
issued upon exercise of the Warrant, as applicable, issued with a restrictive
legend (such third Trading Day, the "Legend Removal Date"), deliver or cause to
be delivered to the Investor a certificate representing such shares that is free
from all restrictive and other legends. The Company may not make any notation on
its records or give instructions to its transfer agent that enlarge the
restrictions on transfer set forth in this Section. Certificates for Shares or
shares of Common Stock issued upon exercise of the Warrant subject to legend
removal hereunder shall be transmitted by the Company's transfer agent to the
Investor by crediting the account of the Investor's prime broker with the
Depository Trust Company System as directed by the Investor.

10. CERTAIN DEFINITIONS

      "Common Stock Equivalents" means any securities of the Company or any
subsidiary thereof which would entitle the holder thereof to acquire at any time
Common Stock, including, without limitation, any debt, preferred stock, rights,
options, warrants or other instrument that is at any time convertible into or
exercisable or exchangeable for, or otherwise entitles the holder thereof to
receive, Common Stock.

      "Effective Date" means the date that the initial Registration Statement
filed by the Company pursuant to the Registration Rights Agreement is first
declared effective by the SEC.

      "Exempt Issuance" means the issuance of (a) shares of Common Stock or
options to employees, officers or directors of the Company pursuant to any stock
or option plan duly adopted for such purpose by a majority of the non-employee
members of the Board of Directors or a majority of the members of a committee of
non-employee directors established for such purpose, (b) securities upon the
exercise or exchange of or conversion of any Underlying Securities issued
hereunder and/or other securities exercisable or exchangeable for or convertible
into shares of Common Stock issued and outstanding on the date of this
Agreement, provided that such securities have not been amended since the date of
this Agreement to increase the number of such securities or to decrease the
exercise, exchange or conversion price of such securities, (c) securities issued
pursuant to acquisitions or strategic transactions approved by a majority of the
disinterested directors of the Company, provided that any such issuance shall
only be to a Person which is, itself or through its subsidiaries, an operating
company in a business synergistic with the business of the Company and in which
the Company receives benefits in addition to the investment of funds as
reasonably determined by the Board of Directors, but shall not include a
transaction in which the Company is issuing securities primarily for the purpose
of raising capital or (d) any securities issued in connection with the Merger.

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

      "Registration Rights Agreement" means the Registration Rights Agreement,
dated the date hereof, among the Company and the Investors.

                                       17
<PAGE>

      "Registration Statement" means a registration statement meeting the
requirements set forth in the Registration Rights Agreement and covering the
resale of the Underlying Securities by each Investor as provided for in the
Registration Rights Agreement.

      "Subsequent Financing" means the issuance of Common Stock or Common Stock
Equivalents by the Company or any subsidiary thereof.

      "Trading Day" means a day on which the New York Stock Exchange is open for
trading.

      "Trading Market" means the following markets or exchanges on which the
Common Stock is listed or quoted for trading on the date in question: the
American Stock Exchange, the Nasdaq Capital Market, the Nasdaq Global Market,
the Nasdaq Global Select Market, the New York Stock Exchange or the OTC Bulletin
Board.

      "Variable Rate Transaction" means a transaction in which the Company
issues or sells (i) any debt or equity securities that are convertible into,
exchangeable or exercisable for, or include the right to receive additional
shares of Common Stock either (A) at a conversion, exercise or exchange rate or
other price that is based upon and/or varies with the trading prices of or
quotations for the shares of Common Stock at any time after the initial issuance
of such debt or equity securities, or (B) with a conversion, exercise or
exchange price that is subject to being reset at some future date after the
initial issuance of such debt or equity security or upon the occurrence of
specified or contingent events directly or indirectly related to the business of
the Company or the market for the Common Stock or (ii) enters into any
agreement, including, but not limited to, an equity line of credit, whereby the
Company may sell securities at a future determined price.

11. MISCELLANEOUS PROVISIONS

      (a) Confidential Information. The subscriber agrees that no portion of the
Confidential Information (as defined below) shall be disclosed to third parties,
except as may be required by law, without the prior express written consent of
Pubco; PROVIDED, HOWEVER, that the subscriber may share such information with
such of its officers and professional advisors as may need to know such
information to assist the subscriber in its evaluation thereof on the condition
that such parties agree to be bound by the terms hereof. "Confidential
Information" means the existence and terms of this Agreement, the transactions
contemplated hereby, and the disclosures and other information contained herein
or in the Memorandum, excluding any disclosures or other information that are
publicly available.

      (b) Modification. Neither this Agreement, nor any provisions hereof, shall
be waived, modified, discharged or terminated except by an instrument in writing
signed by the party against whom any waiver, modification, discharge or
termination is sought.

      (b) Survival. The Company's and the Investor's representations and
warranties made in this Agreement shall survive until the second anniversary of
the Closing.

      (c) Notices. Any party may send any notice, request, demand, claim or
other communication hereunder to the Investor at the address set forth on the
signature page of this Agreement or to Pubco at the address set forth above
using any means (including personal delivery, expedited courier, messenger
service, fax, ordinary mail or electronic mail), but no such notice, request,
demand, claim or other communication will be deemed to have been duly given
unless and until it actually is received by the intended recipient. Any party
may change the address to which notices, requests,

                                       18
<PAGE>

demands, claims and other communications hereunder are to be delivered by giving
the other parties written notice in the manner herein set forth.

      (d) Binding Effect. Except as otherwise provided herein, this Agreement
shall be binding upon, and inure to the benefit of, the parties to this
Agreement and their heirs, executors, administrators, successors, legal
representatives and permitted assigns. If the Investor is more than one person
or entity, the obligation of the Investor shall be joint and several and the
agreements, representations, warranties and acknowledgments contained herein
shall be deemed to be made by, and be binding upon, each such person or entity
and his or its heirs, executors, administrators, successors, legal
representatives and permitted assigns. This Agreement sets forth the entire
agreement and understanding between the parties as to the subject matter thereof
and merges and supersedes all prior discussions, agreements and understandings
of any and every nature among them, as to the subject matter hereof.

      (e) Assignability. This Agreement is not transferable or assignable by the
Investor.

      (f) Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without giving effect to
conflicts of law principles.

      (g) Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

      (h) Further Assurances. Each of the parties shall execute such documents
and perform such further acts (including, without limitation, obtaining any
consents, exemptions, authorizations, or other actions by, or giving any notices
to, or making any filings with, any governmental authority or any other Person)
as may be reasonably required or desirable to carry out or to perform the
provisions of this Agreement.

      (i) Severability. If any one or more of the provisions contained herein,
or the application thereof in any circumstance, is held invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions hereof shall not be in any way impaired, unless the provisions held
invalid, illegal or unenforceable shall substantially impair the benefits of the
remaining provisions hereof.

     [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK - SCHEDULES TO SUBSCRIPTION
                      AGREEMENT AND SIGNATURE PAGES FOLLOW]

                                       19
<PAGE>

                     ALL SUBSCRIBERS MUST COMPLETE THIS PAGE
                     ---------------------------------------

      IN WITNESS WHEREOF, the undersigned has executed this Agreement on the ___
day of ____________ 2007.

____________________      x $3.40 for each Unit      = $________________________
Units subscribed for                                    Aggregate Purchase Price

Manner in which title is to be held (please check one):

1. ___  Individual                       7.  ___  Trust/Estate/Pension or Profit
                                                  sharing Plan Date Opened:
                                                  ______________
2. ___  Joint Tenants with Right of      8.  ___  As a Custodian for
        Survivorship                              ____________________________
                                                  Under the Uniform Gift to
                                                  Minors Act of the State of
                                                  ____________________________
3. ___  Community Property               9.  ___  Married with Separate Property
4. ___  Tenants in Common                10. ___  Keogh
5. ___  Corporation/Partnership/         11. ___  Tenants by the Entirety
        Limited Liability Company
6. ___  IRA

             IF MORE THAN ONE SUBSCRIBER, EACH SUBSCRIBER MUST SIGN.
                  INDIVIDUAL SUBSCRIBERS MUST COMPLETE PAGE 20.
              SUBSCRIBERS WHICH ARE ENTITIES MUST COMPLETE PAGE 21.

                                       20
<PAGE>

                          EXECUTION BY NATURAL PERSONS
                          ----------------------------

--------------------------------------------------------------------------------
                     Exact Name in Which Title is to be Held

---------------------------------            -----------------------------------
Name (Please Print)                          Name of Additional Purchaser

---------------------------------            -----------------------------------
Residence: Number and Street                 Address of Additional Purchaser

---------------------------------            -----------------------------------
City, State and Zip Code                     City, State and Zip Code

---------------------------------            -----------------------------------
Social Security Number                       Social Security Number

---------------------------------            -----------------------------------
Telephone Number                             Telephone Number

---------------------------------            -----------------------------------
Fax Number (if available)                    Fax Number (if available)

---------------------------------            -----------------------------------
E-Mail (if available)                        E-Mail (if available)

---------------------------------            -----------------------------------
(Signature)                                  (Signature of Additional Purchaser)

ACCEPTED this __ day of _________ 2007, on behalf of Pubco.

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

                                       21
<PAGE>

                   EXECUTION BY SUBSCRIBER WHICH IS AN ENTITY
                  (Corporation, Partnership, LLC, Trust, Etc.)
--------------------------------------------------------------------------------
                          Name of Entity (Please Print)

Date of Incorporation or Organization: _________________________________________

State of Principal Office: _____________________________________________________

Federal Taxpayer Identification Number:  _______________________________________

--------------------------------------------
Office Address

--------------------------------------------
City, State and Zip Code

--------------------------------------------
Telephone Number

--------------------------------------------
Fax Number (if available)

--------------------------------------------
E-Mail (if available)

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

ACCEPTED this ___ day of _________ 2007, on behalf of Pubco.

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

                                       22exhibit41.htm

    
      

      

    

    

     

     

     

     

     

     

    
      
        

      

    Loan
      Agreement

    

    

    between

    

    

    Rapides
      Finance Authority

    

    

    and

    

    

    Cleco
      Power LLC

    

    

    

    

    Dated
      as of November 1, 2007

    

    

    

    

    
      
        

      

    

    

    $60,000,000

    Rapides
      Finance Authority

    Revenue
      Bonds

    (Cleco
      Power LLC Project)

    Series
      2007

    

    
      
        

      

    

     

    
      
         

        
          
          

          
            

          

        

         

      

      Table
        of Contents

      

      
        	
                ARTICLE
                  I

                 

                DEFINITIONS
                  AND INTERPRETATIONS

              
	
                SECTION
                  1.1.

              	
                Definitions

              	
                -3-

              
	
                SECTION
                  1.2.

              	
                Interpretations

              	
                -7-

              
	
                 

                ARTICLE
                  II

                 

                ACQUISITION
                  AND CONSTRUCTION OF THE PROJECT

                 

              
	
                SECTION
                  2.1.

              	
                Acquisition
                  and Construction of the Project

              	
                -8-

              
	
                SECTION
                  2.2.

              	
                Completion

              	
                -8-

              
	
                 

                ARTICLE
                  III

                 

                SALE
                  OF THE BONDS; LOAN;

                DISPOSITION
                  OF LOAN PROCEEDS

                 

              
	
                SECTION
                  3.1.

              	
                Issuance
                  of the Bonds

              	
                -9-

              
	
                SECTION
                  3.2.

              	
                Loan

              	
                -9-

              
	
                SECTION
                  3.3.

              	
                Investment
                  of Fund Moneys

              	
                -9-

              
	
                SECTION
                  3.4.

              	
                Redemption
                  of Bonds

              	
                -9-

              
	
                SECTION
                  3.5.

              	
                Security
                  Interests

              	
                -9-

              
	
                SECTION
                  3.6.

              	
                Disbursements

              	
                -9-

              
	
                SECTION
                  3.7.

              	
                Completion

              	
                -10-

              
	
                 

                ARTICLE
                  IV

                 

                LOAN
                  PAYMENTS AND OTHER MATTERS

                 

              
	
                SECTION
                  4.1.

              	
                Loan
                  Payments; Purchase Price Payments

              	
                -11-

              
	
                SECTION
                  4.2.

              	
                Bond
                  Fund

              	
                -11-

              
	
                SECTION
                  4.3.

              	
                Payments
                  to Issuer

              	
                -11-

              
	
                SECTION
                  4.4.

              	
                Payments
                  to Trustee and Remarketing Agent

              	
                -12-

              
	
                SECTION
                  4.5.

              	
                Company's
                  Option to Designate Interest Rate Determination Methods

              	
                -12-

              
	
                SECTION
                  4.6.

              	
                Purchase
                  of Bonds

              	
                -12-

              
	
                SECTION
                  4.7.

              	
                Reimbursement
                  of Bond Insurer Expenses

              	
                -13-

              
	
                SECTION
                  4.8.

              	
                Excess
                  Funds

              	
                -13-

              
	
                SECTION
                  4.9.

              	
                Nature
                  of Obligations of the Company

              	
                -13-

              
	
                SECTION
                  4.10.

              	
                Company
                  Obligations Under the Indenture

              	
                -14-

              

      

       

      
        	
                ARTICLE
                  V

                 

                MAINTENANCE,
                  INSURANCE, MODIFICATIONS AND ABANDONMENT

                 

              
	
                SECTION
                  5.1.

              	
                Maintenance
                  and Insurance

              	
                -15-

              
	
                SECTION
                  5.2.

              	
                Modifications

              	
                -15-

              
	
                SECTION
                  5.3.

              	
                Issuer
                  Relieved from Responsibility to Maintain Project

              	
                -15-

              

      

      
        
           

          
            -i-

            
              

            

          

           

        

      

       

      
        	
                ARTICLE
                  VI

                 

                CASUALTY
                  AND CONDEMNATION

                 

              
	
                SECTION
                  6.1.

              	
                Casualty
                  or Condemnation of the Project

              	
                -16-

              
	
                SECTION
                  6.2.

              	
                Effect
                  of Casualty or Condemnation

              	
                -16-

              
	
                SECTION
                  6.3.

              	
                Cooperation;
                  Sale in Lieu of Condemnation

              	
                -16-

              
	
                 

                ARTICLE
                  VII

                 

                PREPAYMENT
                  OF LOAN PAYMENTS

                 

              
	
                SECTION
                  7.1.

              	
                Prepayment
                  and Payment of Loan

              	
                -17-

              
	
                SECTION
                  7.2.

              	
                Mandatory
                  Acceleration of Loan Payments; Preservation of Tax Status

              	
                -17-

              
	
                 

                ARTICLE
                  VIII

                 

                SPECIAL
                  REPRESENTATIONS AND COVENANTS

                 

              
	
                SECTION
                  8.1.

              	
                Indemnification

              	
                -18-

              
	
                SECTION
                  8.2.

              	
                Representations
                  of the Company

              	
                -19-

              
	
                SECTION
                  8.3.

              	
                Filing

              	
                -19-

              
	
                SECTION
                  8.4.

              	
                Representations
                  and Covenants of the Issuer

              	
                -20-

              
	
                SECTION
                  8.5.

              	
                Removal
                  of Liens

              	
                -20-

              
	
                SECTION
                  8.6.

              	
                Special
                  Covenants

              	
                -20-

              
	
                SECTION
                  8.7.

              	
                Bonds
                  are Limited Obligations

              	
                -20-

              
	
                SECTION
                  8.8.

              	
                Net
                  Agreement

              	
                -21-

              
	
                SECTION
                  8.9.

              	
                No
                  Warranty of the Project

              	
                -21-

              
	
                SECTION
                  8.10.

              	
                Reserved

              	
                -21-

              
	
                SECTION
                  8.11.

              	
                Representations
                  Regarding the Project

              	
                -21-

              
	
                SECTION
                  8.12.

              	
                Tax
                  Representations and Covenants

              	
                -21-

              
	
                SECTION
                  8.13.

              	
                Financial
                  Information

              	
                -24-

              
	
                 

                ARTICLE
                  IX

                 

                ASSIGNMENT

                 

              
	
                SECTION
                  9.1.

              	
                Consolidation,
                  Merger and Assignment by the Company

              	
                -26-

              
	
                SECTION
                  9.2.

              	
                Issuer's
                  Rights of Assignment

              	
                                                              -26-

              
	
                 

                ARTICLE
                  X

                 

                EVENTS
                  OF DEFAULT AND REMEDIES

                 

              
	
                SECTION
                  10.1.

              	
                Enumeration
                  of "Events of Default"

              	
                                                              -27-

              
	
                SECTION
                  10.2.

              	
                Remedies

              	
                                                              -27-

              
	
                SECTION
                  10.3.

              	
                No
                  Remedy Exclusive

              	
                                                              -28-

              
	
                SECTION
                  10.4.

              	
                Agreement
                  to Pay Attorneys' Fees and Expenses

              	
                                                              -28-

              

      

      

      
         

        
          -ii-

          
            

          

        

         

      

      
        	
                 

                ARTICLE
                  XI

                 

                GENERAL

                 

              
	
                SECTION
                  11.1.

              	
                Force
                  Majeure

              	
                                                              -29-

              
	
                SECTION
                  11.2.

              	
                Waiver
                  of Rights

              	
                                                              -29-

              
	
                SECTION
                  11.3.

              	
                Notices

              	
                                                              -29-

              
	
                SECTION
                  11.5.

              	
                Term
                  of Agreement

              	
                                                              -31-

              
	
                SECTION
                  11.6.

              	
                Company's
                  Approval of Indenture

              	
                                                              -31-

              
	
                SECTION
                  11.7.

              	
                Auction
                  Rate Requirement

              	
                                                              -31-

              
	
                SECTION
                  11.8.

              	
                Third
                  Party Beneficiaries

              	
                                                              -31-

              
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                EXHIBIT
                  A

              	
                Description
                  of the Project

              	 
	
                EXHIBIT
                  B

              	
                Description
                  of the Site

              	 
	
                EXHIBIT
                  C

              	
                Form
                  of Note

              	 
	
                EXHIBIT
                  D

              	
                Form
                  of Completion Certificate

              	 

      

      

       

      
         

        
          -iii-

          
            

          

        

         

      

    

    Loan
      Agreement

    

    This
Loan
      Agreement
      dated as of November 1, 2007 (together with any amendments or supplements
      hereto, this "Agreement"), is by and between the Rapides Finance
      Authority (the "Issuer"), a public trust and public corporation
      established for public purposes for the benefit of the State of Louisiana (the
      "State") by a certain Trust Indenture dated December 14, 1978, as amended on
      December 9, 1991, December 20, 1994 and April 18, 1995, and created and existing
      under and pursuant to the Louisiana Public Trust Act, being Chapter 2-A of
      Title
      9 of the Louisiana Revised Statutes of 1950, as amended (the "Act"), and
Cleco Power LLC, a Louisiana limited liability company
      (together with any permitted successors or assigns under this Agreement, the
      "Company").

    

    W
      i t n e s s e t h :

     

    WHEREAS,
      Issuer is a public trust and
      public corporation of the State of Louisiana (the "State") created and existing
      pursuant to the provisions of the Act, and is authorized and empowered by the
      Act to issue its revenue bonds and use the funds derived from the sale thereof
      for the purpose of acquiring, constructing, purchasing, equipping, maintaining,
      installing, leasing, subleasing, holding, extending, enlarging, remodeling,
      storing, operating, repairing and administering liquid and solid waste disposal,
      collection, treatment and drainage facilities and services, antipollution and
      air, water, ground and subsurface pollution abatement and control facilities
      and
      activities; and

    

    WHEREAS,
      the Company has requested that
      the Issuer issue its revenue bonds for the purpose of acquiring, constructing
      and installing a plant, equipment and other facilities for use as solid waste
      disposal facilities, recycling facilities, resource recovery facilities or
      industrial sewage and wastewater treatment facilities at the Company's solid
      fuel power plant to be located in Boyce, Rapides Parish, Louisiana (the
      "Project") and paying the costs of issuance of the Bonds, through the issuance
      by the Authority of $60,000,000 aggregate principal amount of Rapides Finance
      Authority Revenue Bonds (Cleco Power LLC Project) Series 2007 (the "Bonds"),
      pursuant to an Indenture of Trust (the "Indenture") between the Issuer and
      The
      Bank of New York Trust Company, N.A., as trustee (the “Trustee”), the proceeds
      of which Bonds are to be loaned to the Company pursuant to this Agreement;
      and

    

    WHEREAS,
      the Issuer has determined,
      based upon representations of the Company, that the issuance of the Bonds to
      finance the cost of the Project will be in furtherance of the public purposes
      of
      the Act; and

    

    WHEREAS,
      the Issuer proposes hereby to
      lend the proceeds of the Bonds to the Company and the Company desires to borrow
      the proceeds of the Bonds upon the terms and conditions set forth herein and
      use
      the proceeds to finance the cost of the acquisition, construction and
      improvement of the Project for the purposes of the Act; and

    

    WHEREAS,
      pursuant to this Agreement,
      the Company will agree to make payments in an amount sufficient to make timely
      payments of principal of, premium, if any, and interest on the Bonds and to
      pay
      such other amounts as are required by this Agreement;

    

    NOW,
      THEREFORE, in consideration of the
      premises and other good and valuable consideration and the mutual benefits,
      covenants and agreements herein expressed, the Issuer and the Company agree
      as
      follows (provided that any obligation of the Issuer created by or arising out
      of
      this Agreement shall not impose a debt or pecuniary liability upon the State
      or
      any political subdivision thereof, or a charge upon the general credit or taxing
      powers of such bodies, but shall be payable solely out of the revenues and
      receipts derived pursuant to this Agreement and, to the extent provided in
      this
      Agreement, out of the proceeds of the 

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    sale
      of
      the Bonds and any temporary investment thereof and any insurance and
      condemnation awards as herein provided).

    
       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

         

        ARTICLE
          I

      

    

    

    DEFINITIONS
      AND INTERPRETATIONS

    

    SECTION
      1.1.           Definitions.  The
      following terms shall have the meanings assigned to them below whenever they
      are
      used in this Agreement, unless the context clearly otherwise
      requires.  Except where the context otherwise requires, words
      imparting the singular number shall include the plural number and vice
      versa.  Capitalized terms used but not otherwise defined herein shall
      have the meanings assigned such terms in the Indenture or in the form of the
      Bonds attached thereto.

    

    "Act"
      means Chapter
      2-A of Title 9 of the Louisiana Revised Statutes of 1950, as amended, and all
      future acts supple­mental thereto and amendatory thereof.

    

    "Affiliate"
      is defined
      in the Indenture.

    

    "Agreement"
      means this
      Loan Agreement dated as of November 1, 2007 between the Issuer and the
      Company.

    

    "Authorized
      Company
      Representative" is defined in the Indenture.

    

    "Authorized
      Issuer
      Representative" is defined in the Indenture.

    

    "Bank"
      is defined in
      the Indenture.

    

    "Bond
      Documents" means
      the Financing Documents and all other agreements, certificates, documents and
      instruments ever delivered in connection with any of the Financing
      Documents.

    

    "Bond
      Fund" is defined
      in the Indenture.

    

    "Bond
      Insurance
      Policy" means the municipal bond new issue insurance policy issued by
      the Bond Insurer that guarantees payment of principal of and interest on the
      Bonds.

    

    "Bond
      Insurer" means
      Financial Guaranty Insurance Company, a New York stock insurance company, or
      any
      successor thereto.

    

    "Bondholder"
      or
"holder" is defined in the Indenture.

    

    "Bonds"
      means the
      bonds defined as such in the recitals of this Agreement, which are issued and
      delivered pursuant to Article II of the Indenture.

        

                   
      "Business
      Day" is defined in the Indenture.

     

           
      "Claims" is defined in Section 8.1 of this Agreement.

    

    "Code"
      means the
      Internal Revenue Code of 1986, as amended, from time to time.  A
      reference to any specific section of the Code shall be deemed also to be a
      reference to the comparable provisions of any enactment that supersedes or
      replaces the Code.

    

    "Communication"
      is
      defined in Section 11.3 of this Agreement.

    

    
      
        
        

      

      
        -3-

        
          

        

      

       

    

    "Company"
      means Cleco
      Power LLC, a Louisiana limited liability company, and its successors and
      assigns.

    

    "Company
      Event of
      Bankruptcy" means (a) an order of relief shall be issued by a United
      States Bankruptcy Court having valid jurisdiction granting the Company relief
      under the provisions of the United States Bankruptcy Code, or any other court
      having valid jurisdiction shall issue an order or decree under applicable
      federal or state law providing for the appointment of a custodian, receiver,
      liquidator, assignee, trustee, sequestrator (or other similar official) of
      the
      Company or of any substantial part of its property, or ordering the winding
      up
      or liquidation of its affairs, and the continuance of any such decree or order
      unstayed and in effect for a period of sixty (60) consecutive days; or (b)
      the
      Company shall have consented to the institution of proceedings in bankruptcy
      against it, or the Company shall have consented to the institution of any
      proceeding against it under any federal or state insolvency laws, or the Company
      shall have consented to the filing of any petition, application or complaint
      seeking the appointment of a custodian, receiver, liquidator, assignee, trustee,
      sequestrator (or other similar official) of the Company or of any substantial
      part of its property, or the Company shall have made an assignment for the
      benefit of creditors, or the Company shall admit in writing its inability to
      pay
      its debts as they become due.

    

    "Completion
      Date"
      means the date the Project has been completed and placed in
      service.

    

    "Computation
      Date"
      means any date selected by the Company pursuant to Section 1.148-3(e) of the
      Regulations.

    

    "Construction
      Fund" is
      defined in the Indenture.

    

    "Event
      of Default" or
"Default" is defined in Section 10.1 of this
      Agreement.

    

    "Final
      Computation
      Date" means the last date on which Bonds are outstanding.

    

    "Final
      Payment Date"
      means the date on which all amounts of Proceeds payable with respect to the
      acquisition and construction of the Project have been requisitioned or
      transferred from the Construction Fund.

    

    "Financing
      Documents"
      means this Agreement, the Bonds, the Indenture, the Note, the Remarketing
      Agreement, the Reimbursement Agreement and the Pledge and Security
      Agreement.

    

    "Force
      Majeure" is
      defined in Section 11.1 of this Agreement.

    

    “Gross
      Proceeds" means
      any Proceeds of the Bonds and any Replacement Proceeds for the
      Bonds.

    

    "Indemnified
      Parties"
      means the Issuer, the Trustee, the Paying Agent, and any of their respective
      officers, directors, members, trustees, commissioners, attorneys, employees,
      agents, servants and any other person acting for or on behalf of the Issuer,
      the
      Trustee or the Paying Agent.

    

    "Indenture"
      means that
      certain Indenture of Trust by and between the Issuer and the Trustee dated
      as of
      the date of this Agreement, together with any amendments or supplements
      thereto.

    

    "Inducement
      Date"
      means November 10, 2005.

    

    "Interest
      Payment
      Date" means each date upon which an interest payment on the Bonds
      becomes due and payable under the Indenture.

     

    
      
         

        
          
            
            

          

          
            -4-

            
              

            

          

          
            
            

          

           

                 
"Investment Proceeds" means any amounts actually or
            constructively
            received from investing Proceeds of the Bonds.

        

      

    

     

           
      "Issuance Costs" means costs incurred by or on behalf of the Company in
      connection with the making of the Loan by the Issuer to the
      Company.  The parties hereby express their understanding and agreement
      that the sole purpose for the issuance of the Bonds is to enable the making
      of
      the Loan to the Company in order to effect the public purposes of the Act and
      that all costs incurred in connection with the issuance of the Bonds are
      incurred incident to the making of such Loan at the request and for the benefit
      of the Company and, therefore, are properly chargeable as costs incurred by
      or
      on behalf of the Company; therefore, such costs include, among others, payment
      of financial, legal, accounting and appraisal fees, expenses and disbursements,
      the Issuer's fees and expenses attributable to the issuance of the Bonds, the
      fee of the State Bond Commission, the cost of printing, engraving and
      reproduction services, Rating Service fees, legal fees and expenses for Bond
      Counsel, counsel to the Bank, counsel to the Underwriter, Issuer's counsel
      and
      Trustee's counsel, the initial or acceptance fee of the Trustee, the premium
      of
      the Bond Insurer, the fees and disbursements of the Trustee payable in
      accordance with the Indenture prior to the Completion Date and all other fees,
      charges and expenses incurred in connection with the issuance of the Bonds
      (including all costs, fees, expenses and other amounts (other than interest,
      principal or prepayment premiums on the Bonds) which may be payable by the
      Company or the Issuer under any bond purchase agreement or agreements pursuant
      to which the Bonds are sold) and the preparation and filing or recording of
      any
      Bond Document.

    

     

        "Issue
      Date" is defined in the Indenture.

    

    "Issue
      Price" means
      "issue price" as defined in section 1.148-1(b) of the Regulations and,
      generally, is the first price at which a substantial number of Bonds is sold
      to
      persons other than bond houses, brokers or similar persons or organizations
      acting in the capacity of underwriters, placement agents or
      wholesalers.

    

    "Issuer"
      means the
      Rapides Finance Authority, and its successors and assigns.

    

    "Loan"
      means the loan
      made by the Issuer to the Company under this Agreement.

    

    "Loan
      Payments" means
      the payments to be made by the Company pursuant to Section 4.1(a) of this
      Agreement.

    

    "Losses"
      is defined in
      Section 8.1 of this Agreement.

    

    "Nonpurpose
      Investment" means an investment described in section 1.148-1(b) of the
      Regulations as a nonpurpose investment.

    

    "Note"
      means the note
      issued by the Company to the Issuer evidencing the Loan made on behalf of the
      Issuer to the Company under this Agreement, substantially in the form of the
      note attached hereto as Exhibit C.

    

    "Opinion
      of
      Counsel" means
      an opinion or
      opinions in writing, signed by legal counsel who, unless otherwise specified,
      may be counsel to the Company, the Trustee or the Issuer.  As to any
      factual matters involved in an opinion of counsel, such counsel may rely, to
      the
      extent that they deem such reliance proper, upon a certificate or certificates
      setting forth such matters which have been signed by an official, officer,
      general partner or authorized representative of a particular governmental
      authority, corporation, firm or other person or entity.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    

    
       

             
        "Outstanding" when used with respect to the Bonds has the same meaning
        as that specified in the Indenture.

    

    

           
      "Paying Agent" is defined in the Indenture.

        

       
"Person"
      is defined in the Indenture.

     

           
      "Plans and Specifications" means the plans and specifications prepared
      for the Project, as the same may be implemented and detailed from time to time
      and as the same may be revised from time to time in accordance with this
      Agreement, a copy of which is on file with the Company.\

     

                   
      "Principal Office" is defined in the definitions of Trustee, Paying
      Agent, and Remarketing Agent in the Indenture.

    

    "Proceeds"
      means any
      Sale Proceeds and any Investment Proceeds of the Bonds.

    

    "Project"
      means the
      property and improvements described as such in
Exhibit A.

    

    "Project
      Costs" means
      the cost of acquisition, construction, reconstruction, improvement and expansion
      of the Project, including the cost of the acquisition of all land,
      rights-of-way, property rights, easements and interests, the cost of all
      machinery and equipment, financing charges, inventory, raw materials and other
      supplies, research and development costs, interest prior to and during
      construction and for one year after completion of construction whether or not
      capitalized, necessary reserve funds, cost of estimates and of engineering
      and
      legal services, plans, specifications, surveys, estimates of cost and of
      revenue, other expenses necessary or incident to determining the feasibility
      and
      practicability of acquiring, constructing, reconstructing, improving and
      expanding the Project, administrative expense and such other expense as may
      be
      necessary or incident to the acquisition, construction, reconstruction,
      improvement and expansion thereof, the placing of the same in operation and
      the
      financing or refinancing of the Project, including the refunding of any
      outstanding obligations, mortgages or advances issued, made or given by any
      person for any of the aforementioned costs, and any other cost permitted to
      be
      paid out of proceeds of the Bonds by the Act; provided, however, that Issuance
      Costs are not Project Costs.

    

    "Purchase
      Price
      Payments" means the payments to be made by the Company pursuant to
      Section 4.1(b) of this Agreement.

    

    "Qualifying
      Costs"
      means the Project Costs that were paid or incurred after the Inducement Date
      and
      that are incurred for those parts of the Project that constitute "solid waste
      disposal facilities" within the meaning of section 142(a)(6) of the Code and
      facilities functionally related and subordinate thereto within the meaning
      of
      sections 1.103-8(a)(3) of the Regulations, and which for federal income tax
      purposes are chargeable to the capital account(s) of such items of property
      included in the Project or would be so chargeable either with a proper election
      or but for a proper election to deduct such Project Costs.

    

    "Rebate
      Amount" means
      that amount computed in accordance with section 148(f) of the Code and section
      1.148-3(b) and 1.148-3(c) of the Regulations as of any Computation Date within
      the meaning of section 1.148-3(e) of the Regulations.

    

    "Rebate
      Fund" is
      defined in the Indenture.

    

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    "Regulations"
      means
      the applicable proposed, temporary or final Income Tax Regulations promulgated
      under the Code, or, to the extent applicable to the Code, under the Internal
      Revenue Code of 1986, as such regulations may be amended or supplemented from
      time to time.

    

    "Remarketing
      Agent"
      means Goldman, Sachs & Co.

    

    "Replacement
      Proceeds"
      means any amounts described in section 1.148-1(c) of the
      Regulations.

    

    "Sale
      Proceeds" means,
      with respect to the Bonds, any amounts actually or constructively received
      from
      the sale (or other disposition) of any Bond that is part of the issue, including
      amounts used to pay underwriters' discount or compensation and accrued interest
      other than pre-issuance accrued interest.

    

    "Site"
      means the tract
      of land which is described in Exhibit B
      hereto.

    

    "State"
      means the
      State of Louisiana.

    

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

    

    "Trustee"
      means The
      Bank of New York Trust Company, N.A., serving as trustee pursuant to the
      Indenture, and any successor trustee.

    

    "Unassigned
      Rights"
      means the rights of the Issuer under Sections 4.3, 8.1 and 10.4 this Agreement
      and the right to receive notices hereunder.

    

    "Yield"
      means the
      yield as determined in accordance with section 148(h) of the Code, and
      generally, is the yield which when used in computing the present worth of all
      payments of principal and interest to be paid on an obligation produces an
      amount equal to the Issue Price of such obligation.

    

    SECTION
      1.2.            Interpretations
      .  The table of contents and article and section headings of this
      Agreement are for reference purposes only and shall not affect its
      interpretation in any respect.

    
      
        
        

      

      
        -7-

        
          

        

      

       

    

    ARTICLE
      II

    

    ACQUISITION
      AND CONSTRUCTION OF THE PROJECT

    

    SECTION
      2.1.            Acquisition
      and Construction of the Project .  The Company agrees to cause the
      Project to be acquired, constructed and installed on the Site substantially
      in
      accordance with the Plans and Specifications.  The Company agrees to
      pay all Project Costs which are not or cannot be paid or reimbursed from the
      proceeds of the Bonds.

    

    Anything
      in this Agreement to the
      contrary notwithstanding, the Company shall not be obligated to complete the
      acquisition, construction and installation of the Project or any part thereof
      upon (i) acceleration of the payment of all amounts to be paid by the Company
      pursuant to the provisions of Article VII hereof and (ii) the making of any
      such
      payment in the amount required by, and in accordance with the terms of, this
      Agreement.

    

    SECTION
      2.2.            Completion
      .  There shall be no diminution in or postponement of the payments
      required in Section 4.1 hereof or any other payment required under this
      Agreement to be paid by the Company because of any delay in the completion
      of
      the Project.

    
      
        
        

      

      
        -8-

        
          

        

      

       

    

    ARTICLE
      III

    

    SALE
      OF THE BONDS; LOAN

    DISPOSITION
      OF LOAN PROCEEDS

     

                   
      SECTION
      3.1.           Issuance
      of the Bonds .  The Issuer agrees that immediately following the
      delivery of this Agreement, it will execute and deliver the Indenture and issue,
      sell and deliver the Bonds in the aggregate principal amount specified by the
      Company.  The Bonds shall be limited obligations of the Issuer and
      shall be payable by the Issuer solely out of the Revenues derived from or in
      connection with the Note and this Agreement.  The Bonds shall never be
      payable out of any other funds of the Issuer except such
      Revenues.  The Company agrees to pay all Issuance Costs not otherwise
      paid from the Construction Fund in accordance with Section 3.6(b), promptly
      following demand therefor (including without limitation all out-of-pocket
      expenses and costs of issuance reasonably incurred by the Issuer in connection
      with the issuance of the Bonds), and to make such payments in compliance with
      Section 8.12 of this Agreement.

    

    SECTION
      3.2.           Loan
      .  The proceeds of the sale of the Bonds which are deposited into the
      Construction Fund pursuant to Section 6.2 of the Indenture are hereby lent
      by
      the Issuer to the Company.  The Loan shall be evidenced by the
      Company's creation and issuance of the Note, dated as of the date of the Bonds
      and payable to the order of the Issuer.

    

    SECTION
      3.3.           Investment
      of Fund Moneys .  The Issuer hereby authorizes the Company to
      prepare and provide instructions to the Trustee as to the investment and
      reinvestment of moneys held as part of any fund under the Indenture ("Fund"),
      subject to the limitations specified in the Indenture.

    

    SECTION
      3.4.           Redemption
      of Bonds .  The Issuer agrees that, at the request at any time of
      the Company and if permitted by the Indenture, it will, at its option, forthwith
      take all steps that may be necessary under the applicable redemption provisions
      of the Indenture to effect redemption of all or part of the then outstanding
      Bonds, as may be specified by the Company, on the redemption date designated
      by
      the Company and on which such redemption may be made under such applicable
      provisions, and if for any reason the Issuer shall fail promptly to take such
      steps upon the request of the Company, the Company may, to the extent permitted
      by law, take such steps on behalf and in the name of the Issuer.

    

    SECTION
      3.5.            Security
      Interests .  The Company acknowledges and consents to the Issuer's
      grant of security interest to the Trustee in all amounts at any time deposited
      in any Fund established under the Indenture (other than the Rebate Fund),
      including all investments and reinvestments made with such amounts and the
      proceeds thereof.  The Company hereby authorizes and directs the
      Trustee to hold such amounts, investments, reinvestments and proceeds, and
      to
      invest and disburse such amounts and proceeds in accordance with the Indenture
      and this Agreement.  The Company shall not direct the Trustee to make
      any investments or reinvestments other than those permitted by law, the
      Indenture and this Agreement.

    

    SECTION
      3.6.           Disbursements
      .  (a)  Except as provided in the Indenture in case of
      acceleration of maturity of the Bonds, the Trustee shall disburse the money
      in
      the Construction Fund in accordance with this Section.

    

    (b)
      The Trustee shall disburse (or
      transfer to the Bond Fund) amounts in the Construction Fund to pay Project
      Costs
      with respect to the Project or Issuance Costs upon receipt of a Disbursement
      Request in substantially the form of Exhibit B to the Indenture signed by an
      Authorized Company Representative stating: (i) the requisition number, amount
      to
      be paid, the name of the Person to whom payment is to be made and a Project
      Costs description; (ii) that there has been expended, or is being expended
      concurrently with the delivery of such certificate (or in the case of interest
      which the Trustee is directed to transfer to the Bond 

     

    
      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

         

        Fund after the Completion Date, will be expended within one year following
          the Completion Date), an amount on account of Project Costs or Issuance
          Costs at
          least equal to the amount set forth in such certificate; (iii) that no
          other
          certificate in respect of such expenditure is being or previously has been
          delivered to the Trustee; (iv) that at least 95% of the total of all amounts
          previously disbursed plus the amount requested by such certificate to be
          disbursed from the Construction Fund have been and will be used to pay
          Qualifying Costs of the Project; and (v) the sum of the amount of such
          requisition in respect of Issuance Costs, if any, plus amounts previously
          paid
          for Issuance Costs, does not exceed 2% of the amount of the Sale
          Proceeds.

      

    

    

    (c)
      Concurrently with the delivery of
      the certificate required under Section 3.7 of this Agreement, the Company shall
      direct the Trustee in writing to transfer any amounts then on deposit in the
      Construction Fund (other than the retainage described in clause (iii) of Section
      3.7 if the Final Payment Date has not occurred) to the Bond Fund to be used
      (i)
      to redeem Bonds pursuant to Article X of the Indenture on the first date the
      Bonds are subject to redemption at a price of par plus accrued interest or
      (ii)
      to purchase Bonds on the open market for cancellation.

    

    SECTION
      3.4.            Completion
      .  Immediately after the Completion Date (and immediately after the
      Final Payment Date if such dates are not the same), and after requesting
      pursuant to Section 3.6 any amounts then permitted to be disbursed thereunder,
      the Company shall deliver to the Trustee a certificate (the "Completion
      Certificate") in substantially the form of Exhibit D hereto signed by an
      Authorized Company Representative certifying:  (i) as appropriate, (A)
      that as of the Completion Date specified in the certificate the Project has
      been
      completed and placed in service, or (B) that the Final Payment Date has
      occurred; (ii) the amount of Proceeds expended for Qualifying Costs, for Project
      Costs that were not Qualifying Costs and for Issuance Costs; and (iii) if such
      certificate is delivered prior to the Final Payment Date, the amount which
      the
      Trustee is to retain in the Construction Fund for payment of amounts then
      subject to dispute or not then due.

    
       

      
        -10-

        
          

        

      

       

    

     

    ARTICLE
      IV

    

    LOAN
      PAYMENTS AND OTHER MATTERS

    

    SECTION
      4.1.           Loan
      Payments; Purchase Price Payments .  (a)  To repay the
      Loan evidenced by the Note, the Company shall make or cause to be made Loan
      Payments in installments, so as to provide amounts for the timely payment of
      the
      principal of, premium, if any, and interest on the Bonds in the amounts and
      at
      or before the opening of business on the dates as follows: (i) on each Interest
      Payment Date, an aggregate amount equal to the sum of (x) the accrued interest
      coming due on such date on all outstanding Bonds, plus (y) the principal amount
      of all outstanding Bonds maturing on such date; (ii) on each date on which
      any
      of the Bonds are to be redeemed, the principal amount of, and premium, if any,
      and interest (including interest accrued or to be accrued to such date) on
      the
      Bonds to be redeemed on such date in accordance with the provisions of the
      Indenture; and (iii) on any date on which all the Bonds shall be declared to
      be
      and shall become due and payable prior to their Stated Maturity pursuant to
      the
      provisions of the Indenture, the aggregate amount of principal, premium, if
      any,
      and interest so becoming due and payable on all the Bonds in accordance with
      the
      terms of the Indenture.  Any amount in cash held in or concurrently
      paid to the Bond Fund or otherwise held by the Trustee which may, pursuant
      to
      the provisions of the Indenture, be applied to the payment of the principal
      of
      and interest and premium, if any, on the Bonds and which is in excess of the
      amount, if any, required for payment of any past due principal of (whether
      by
      maturity or redemption) and premium, if any, on any Bonds theretofore matured
      or
      called for redemption and any past due interest, if any, on the Bonds shall
      be
      credited against the installment of the Loan Payments then required to be made
      by the Company.  If on any date of payment referred to in clause (i),
      (ii) or (iii) of this Section 4.1(a), the amount in cash held in the Bond Fund
      or otherwise held by the Trustee and available in accordance with the provisions
      of the Indenture for the payment of the principal of and interest and premium,
      if any, on the Bonds shall not be sufficient to pay all principal, interest
      and
      premium, if any, then due or overdue, the Company forthwith shall also pay
      the
      amount of such deficiency on such date to the Trustee in immediately available
      funds.

    

    (b)
      The Company will pay to the Paying
      Agent for deposit in the Bond Purchase Fund, on or before 2:30 p.m., New York
      City time, on each day on which a payment of purchase price of a Bond which
      has
      been tendered for optional or mandatory purchase shall become due, an amount
      which, together with other moneys held by the Paying Agent under the Indenture
      and available therefor, will enable the Paying Agent to make such payment in
      full in a timely manner.

    

    SECTION
      4.2.           Bond
      Fund .  The Company shall pay the Loan Payments required of it
      under this Agreement by remitting or causing to be remitted the same directly
      to
      the Trustee for deposit in the Bond Fund which is to be established under the
      Indenture and administered by the Trustee as provided in the
      Indenture.

    

    SECTION
      4.3.            Payments
      to Issuer .  Out of money from the proceeds from the sale and
      delivery of the Bonds or out of funds provided by the Company, there shall
      be
      paid (i) all of the Issuer's reasonable actual out-of-pocket expenses and
      Issuance Costs in connection with the Bonds, and (ii) on the Issue Date, an
      issuance fee in the amount of $15,000.  The Company agrees to make
      administrative payments directly to the Issuer on June 1 of each year in an
      amount equal to 1/10th of 1% of the outstanding Bonds on January 1 of each
      year,
      if billed by the Issuer.  The administrative payments shall be used
      for the purpose of paying administrative and related costs of the Issuer, but
      shall not include Trustee fees or expenses incurred by the Issuer in enforcing
      the provisions of this Agreement.  The Issuer agrees that it will bill
      the Company by March 15 of each year if it imposes such administrative payments
      for such year, and such bill shall advise the Company of the amount that is
      to
      be paid (not to exceed 1/10 of 1% per annum), the date on which payment is
      due,
      and where such payment is to be remitted.  In the event the Company
      should fail to pay such 

     

    
       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

         

        administrative expenses then due, the payment shall continue as an
          obligation of the Company until the amount shall have been fully paid,
          and the
          Company agrees to pay the same with interest thereon (to the extent legally
          enforceable) at a rate per annum equal to the interest rate in effect from
          time
          to time on the Bonds, until paid.

      

    

    

    SECTION
      4.4.           Payments
      to Trustee and Remarketing Agent .  (a)  The Company
      agrees to pay (i) the initial acceptance fee of the Trustee and reasonable
      costs
      and expenses incurred by the Trustee in entering into and executing the
      Indenture and (ii) until the principal of, premium, if any, and interest on
      the
      Bonds shall have been fully paid or provision for the payment thereof shall
      have
      been made in accordance with the provisions of the Indenture, (A) an amount
      equal to the annual fee of the Trustee for the ordinary services of the Trustee,
      as trustee, rendered and its reasonable ordinary expenses incurred under the
      Indenture, including reasonable attorneys fees and expenses, as and when the
      same become due, (B) the fees, charges and expenses of the Trustee, as bond
      registrar and as Paying Agent, and any other bond registrar or Paying Agent
      on
      the Bonds, as and when the same become due, (C) the reasonable fees, charges
      and
      expenses of the Trustee for the necessary extraordinary services rendered by
      it
      and extraordinary expenses incurred by it under the Indenture or this Agreement,
      as and when the same become due, including reasonable attorneys fees and
      expenses, (D) the reasonable fees and expenses of any co-trustee appointed
      under
      the Indenture, and (E) the cost of printing any Bonds required to be furnished
      by the Issuer.  In the event the Company should fail to make any of
      the payments required in this Section 4.4, the item or installments shall accrue
      interest at the prime rate of the Trustee (or its primary banking affiliate)
      and
      shall continue as an obligation of the Company until the amount shall have
      been
      fully paid.

    

    (b)
      The Company agrees to pay to the
      Remarketing Agent as set forth in the Remarketing Agreement, until the principal
      of, premium, if any, and interest on the Bonds shall have been fully paid or
      provision for the payment thereof shall have been made in accordance with the
      provisions of the Indenture and provided that they are providing services as
      Remarketing Agent, (i) an amount equal to the reasonable annual fee of the
      Remarketing Agent for the ordinary services of the Remarketing Agent rendered
      and its reasonable ordinary expenses incurred under the Indenture and the
      Remarketing Agreement, as and when the same become due, and (ii) the reasonable
      fees, charges and expenses of the Remarketing Agent for the necessary
      extraordinary services rendered by it and extraordinary expenses incurred by
      it
      under the Indenture and the Remarketing Agreement, as and when the same become
      due, including reasonable attorneys fees.  In the event the Company
      shall fail to make any of the payments required in this Section, the item or
      installments shall continue as an obligation of the Company until the amount
      shall have been fully paid.

    

    SECTION
      4.5.            Company's
      Option to Designate Interest Rate Determination Methods .  The
      Company is hereby granted the option to designate from time to time changes
      in
      interest rate determination methods in the manner and to the extent set forth
      in
      Section 3.3 of the Indenture.  In the event the Company elects to
      exercise any such option, the Company agrees that it shall cause notices of
      changes in interest rate determination methods to be given to the Issuer, the
      Trustee, the Bank, if any, the Bond Insurer and the Remarketing Agent in
      accordance with Section 3.3(b) of the Indenture.

    

    SECTION
      4.6.           Purchase
      of Bonds .  (a)  The Company shall cause the necessary
      arrangements to be made and to be thereafter continued whereby owners from
      time
      to time of the Bonds may deliver Bonds for purchase and whereby such Bonds
      shall
      be so purchased.  In furtherance of the foregoing covenant of the
      Company, the Issuer, at the direction of the Company, has set forth in Article
      V
      of the Indenture the terms and conditions relating to the delivery of Bonds
      by
      the registered holders thereof to the Remarketing Agent for purchase and has
      set
      forth in the Indenture or the Remarketing Agreement the duties and
      responsibilities of the Remarketing Agent with respect to the purchase and
      remarketing of Bonds.  The Company hereby authorizes and directs the
      Remarketing Agent to purchase, offer, sell, and deliver Bonds in accordance
      with
      the provisions of Article V of the Indenture.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

       

            Without
        limiting the generality
        of the foregoing covenant of the Company, the Company covenants, for the
        benefit
        of the owners of the Bonds, to pay, or cause to be paid, to the Trustee such
        amounts as shall be necessary to enable the Paying Agent to pay the Purchase
        Price of the Bonds delivered to it for purchase or deemed delivered for
        purchase, all as more particularly described, in the Indenture; provided,
        however, that the obligation of the Company to make, or cause to be made,
        any
        such payment hereunder shall be satisfied only, in order of priority, first,
        by
        funds received by the Paying Agent from the remarketing of the Bonds by the
        Remarketing Agent, second, in the event sufficient funds are not available
        from
        such remarketing, from draws upon the Credit Facility, if any, and third,
        from
        funds provided by the Company.

    

    

    (b)
      The Issuer shall have no obligation
      or responsibility, financial or otherwise, with respect to the purchase of
      Bonds
      or the making or continuation of arrangements therefor other than as expressly
      set forth in subsection (a) of this Section 4.6, except that the Issuer shall
      generally cooperate with the Company and the Remarketing Agent as contemplated
      by the Indenture.

    

    SECTION
      4.7.           Reimbursement
      of Bond Insurer Expenses .  The Company shall pay or reimburse the
      Bond Insurer for any and all charges, fees, costs, and expenses that the Bond
      Insurer may reasonably pay or incur in connection with the following: (i) the
      administration, enforcement, defense, or preservation of any rights or security
      hereunder or under any other transaction document; (ii) the pursuit of any
      remedies hereunder, under any other transaction document, or otherwise afforded
      by law or equity; (iii) any amendment, waiver, or other action with respect
      to
      or related to this Agreement or any other transaction document whether or not
      executed or completed; (iv) the violation by the Company of any law, rule,
      or
      regulation or any judgment, order or decree applicable to it; (v) any advances
      or payments made by the Bond Insurer to cure defaults of the Company under
      the
      transaction documents; or (vi) any litigation or other dispute in connection
      with this Agreement, any other transaction document, or the transactions
      contemplated hereby or thereby, other than amounts resulting from the failure
      of
      the Bond Insurer to honor its payment obligations under the Bond Insurance
      Policy.  The Bond Insurer reserves the right to charge a reasonable
      fee as a condition to executing any amendment, waiver, or consent proposed
      in
      respect of the Indenture, this Agreement or any other transaction
      document.  The obligations of the Company to the Bond Insurer shall
      survive discharge and termination of the Indenture and this
      Agreement.

    

    SECTION
      4.8.           Excess
      Funds .  After all of the Bonds have been retired and all interest
      and applicable premiums, if any, due thereon have been paid or provision for
      such retirement and payment has been made, and all compensation and expenses
      of
      the Trustee and any Paying Agent have been paid as set forth in any of the
      Financing Documents or provision for such payment has been made, any excess
      moneys remaining in the Bond Fund and the Construction Fund shall forthwith
      be
      paid by the Trustee to the Company in the manner prescribed respectively, by
      Sections 6.4 and 7.4 of the Indenture.

    

    SECTION
      4.9.           Nature
      of Obligations of the Company .  Until all of the Bonds shall be
      deemed to have been paid within the meaning of Section 17.1 of the Indenture,
      the obligations of the Company to pay the Loan Payments and Purchase Price
      Payments as provided in this Agreement and to make or cause to be made all
      other
      payments required herein shall be absolute and unconditional, irrespective
      of
      any rights of set-off, recoupment or counterclaim the Company might otherwise
      have against the Issuer, the Trustee or any other Person or Persons, and the
      Company will not suspend or discontinue any such payment or (except in
      accordance with Article VII of this Agreement) terminate this Agreement for
      any
      cause including, without limiting the generality of the foregoing, any event
      constituting force majeure, any acts or circumstances that may constitute an
      eviction or constructive eviction, failure of consideration, failure of title,
      or commercial frustration of purpose, or any damage to or destruction of all
      or
      part of the Project, or the failure to obtain any permit or order from any
      governmental agency which is required to be obtained in connection with the
      operation of the Project or the taking or condemnation of title to or the use
      or
      possession of all or any part 

     

    
      
        
          
          

        

        
          -13-

          
            

          

        

        
          
          

        

         

        of the Project, or any change in the laws of the United States, or
          any
          state, or any political subdivision thereof, or any failure of the Issuer
          to
          perform and observe any agreement or covenant, whether express or implied,
          or to
          discharge any duty, liability or obligation arising out of or connected
          with
          this Agreement or any other agreement between the Company and the
          Issuer.  The preceding sentence shall not be construed to release the
          Issuer from the performance of any of its obligations contained in this
          Agreement, or except to the extent provided in this Section, prevent or
          restrict
          the Company from asserting any rights which it may have against the Issuer,
          the
          Trustee or any other persons under this Agreement or under any provision
          of law
          or prevent or restrict the Company, at its own cost and expense, from
          prosecuting or defending any action or proceeding against or by third parties
          or
          taking any other action to secure or protect its rights of purchase,
          acquisition, possession and use of the Project and its rights under this
          Agreement.

      

    

    

    SECTION
      4.10.         Company Obligations
      Under the Indenture .  The Company agrees that it will perform all
      obligations imposed on the Company under the Indenture.

    
      
      

    

    
      -14-

      
        

      

    

    
      
      

    

     

    ARTICLE
      V

    

    MAINTENANCE,
      INSURANCE, MODIFICATIONS AND ABANDONMENT

     

                   
      SECTION 5.1.          
Maintenance and Insurance .  Subject to the other provisions of
      this Agreement, the Company shall not be required to maintain, repair or replace
      any portion of the Project, but may from time to time do any and all of the
      foregoing as it, in its sole discretion, shall deem appropriate.  The
      Company shall provide (including through self-insurance) for such insurance
      coverage including assumption of the risk of damage or destruction as is
      customarily carried by Persons engaged in the same business as and having the
      financial capability of the Company with respect to operating facilities like
      the facilities that comprise the Project.

    

    SECTION
      5.2.           Modifications
      .  Subject to the provisions of Sections 8.11 and 8.12 of this
      Agreement, the Company shall have the right to remodel or alter the Project,
      make substitutions, additions and improvements thereto and abandon or remove
      any
      part thereof, all as the Company, in its sole discretion, may deem to be
      desirable.

    

    SECTION
      5.3.           Issuer
      Relieved from Responsibility to Maintain Project .  The Company
      and the Issuer hereby expressly acknowledge and agree that the Issuer is under
      no responsibility to maintain, operate or repair the Project and the Company
      expressly relieves the Issuer from any such responsibility.

    
      
      

    

    
      -15-

      
        

      

    

    
      
      

    

     

    ARTICLE
      VI 

     

    CASUALTY
      AND CONDEMNATION  

     

       
SECTION
      6.1.           Casualty or
      Condemnation of the Project .  If (a) any material damage or
      destruction of the Project or any portion thereof shall occur or (b) title
      to or
      the temporary use of any portion of the Project shall be taken in any
      condemnation proceedings or by the exercise of the power of eminent domain
      by
      any governmental body or by any person acting under governmental authority,
      the
      Company shall (i) in its sole judgment, restore or not restore the Project
      or
      portions thereof so damaged, destroyed or condemned, (ii) be entitled to dispose
      of the proceeds of any such insurance or condemnation awards in any manner
      it
      deems proper, and (iii) not be obligated to notify the Issuer with respect
      to
      such actions.

    

    SECTION
      6.2.           Effect
      of Casualty or Condemnation .  The occurrence of a casualty or
      condemnation shall not entitle the Company to any abatement, postponement or
      reduction in the amount of the Loan Payments or Purchase Price Payments payable
      under this Agreement and the Company hereby waives the benefits and provisions
      of all laws and rights which, by reason of the casualty or condemnation, might
      relieve the Company from any of its obligations under this
      Agreement.

    

    SECTION
      6.3.           Cooperation;
      Sale in Lieu of Condemnation .  The Issuer agrees that, if and to
      the extent that the Company may request, it will cooperate with the Company
      at
      the expense of the Company in all matters relating to any casualty to or
      condemnation of all or any part of the Project and to this end the Issuer hereby
      authorizes the Company to take any and all action, in its own name or in the
      name of the Issuer as the Company may elect, which the Issuer could take in
      respect of such matters.

    
      
      

    

    
      -16-

      
        

      

    

    
      
      

    

     

    ARTICLE
      VII

    

    PREPAYMENT
      OF LOAN PAYMENTS

    

    SECTION
      7.1.           Prepayment
      and Payment of Loan .  The Company may at any time deliver moneys
      and/or Governmental Obligations to the Trustee with instructions to the Trustee
      to hold such moneys and/or Governmental Obligations in the special segregated
      fund referred to in Section 17.1 of the Indenture in connection with a discharge
      of the Indenture.

    

    No
      payment of or on account of the Loan Payments need be made during the term
      of
      this Agreement or thereafter when and so long as the amount in the Bond Fund,
      together with any other amounts then held by the Trustee and available for
      the
      purpose, is sufficient to retire all of the Bonds then outstanding in accordance
      with the Indenture, including any applicable redemption premium on such Bonds
      and the amount of interest due and thereafter to become due on the Bonds on
      and
      prior to such retirement.  However, if, subsequent to a date on which
      the Company is not obligated to pay the Loan Payments or any installment thereof
      pursuant to the preceding sentence, losses (net of gains) shall be incurred
      in
      respect of the investments in the Bond Fund and such net losses or any other
      event shall have reduced the amounts in the Bond Fund, together with any other
      amounts then held by the Trustee and available for the purpose, below the amount
      sufficient at the time of such occurrence or other event to redeem or pay,
      in
      accordance with the provisions of the Indenture, on the next date on which
      redemption or payment is to be effected, the principal amount of the Bonds,
      and
      the amount of interest and premium, if any, due or to become due on the Bonds
      on
      and prior to such redemption or payment, the Trustee shall notify the Company
      of
      such fact and thereafter, the Company, as and when required for purposes of
      such
      Bond Fund, shall pay to the Trustee for deposit in the Bond Fund the amount
      of
      any such reduction below such sufficient amount.

    

    SECTION
      7.2.           Mandatory
      Acceleration of Loan Payments; Preservation of Tax Status .  The
      Company covenants that it will not take any action or omit to take any action
      required under this Agreement, the Code and the Regulations, as applicable,
      which act or omission will cause the interest paid on the Bonds to become
      includable in the gross income of the holders thereof for federal income tax
      purposes.  The payment of the Loan Payments shall be accelerated, in
      whole or in part, upon the mandatory redemption of the Bonds as provided in
      Section 10.1(b) of the Indenture.

    

    The
      provisions of this Section 7.2
      shall be deemed a separate and independent covenant for the benefit of the
      holders of the Bonds.  Acceleration pursuant to this Section 7.2 shall
      not limit or discharge any remaining obligations which the Company may
      have.

    
      
      

    

    
      -17-

      
        

      

    

    
      
      

    

     

    ARTICLE
      VIII

    

    SPECIAL
      REPRESENTATIONS AND COVENANTS

    

    SECTION
      8.1.           Indemnification
      .  The Company agrees that it will at all times indemnify and hold
      harmless each of the Indemnified Parties against any and all losses, costs,
      damages, expenses and liabilities (collectively herein called "Losses") of
      whatsoever nature (including but not limited to reasonable attorney's fees
      and
      expenses, the reasonable allocated costs and expenses of in-house counsel,
      litigation and court costs, amounts paid in settlement and amounts paid to
      discharge judgments) directly or indirectly resulting from, arising out of,
      or
      related to one or more Claims, as hereinafter defined, even if such Losses
      or
      Claims, or both, directly or indirectly result from, arise out of or relate
      to
      or are asserted to have resulted from, arisen out of, or related to, in whole
      or
      in part, one or more negligent or grossly negligent acts or omissions of the
      Indemnified Parties (except for the Trustee and the Paying Agent, which will
      be
      liable for their own negligent and grossly negligent acts and omissions unless
      the Trustee or Paying Agent was acting in accordance with a direction upon
      which
      it is entitled to rely under the Financing Documents, in which event this
      exception shall not apply) in connection with the issuance of the Bonds, arising
      out of or in connection with the execution and performance of the Financing
      Documents, or in connection with the Project.  The term "Claims" as
      used herein shall mean all claims, lawsuits, Internal Revenue Service audits
      in
      connection with the Bonds, causes of action and other legal actions and
      proceedings of whatsoever nature, including but not limited to claims, lawsuits,
      causes of action and other legal actions and proceedings, involving bodily
      or
      personal injury or death of any person or damage to any property (including
      but
      not limited to persons employed by the Issuer, the Trustee, the Company, the
      Paying Agent or any other Person and all property owned or claimed by any
      Indemnified Party, the Company, any affiliate of the Company or any other
      Person) or involving damages relating to the issuance, offering, sale or
      delivery of the Bonds brought against any Indemnified Party or to which any
      Indemnified Party is a party, even if groundless, false or fraudulent, that
      directly or indirectly result from, arise out of, or relate to the design,
      construction, installation, operation, use, occupancy, maintenance or ownership
      of the Project or any part thereof or from the issuance, offering, sale or
      delivery of the Bonds, and including but not limited to all claims for
      indemnification of the Trustee arising out of or in connection with the
      performance of any of its powers or duties under and in accordance with the
      terms of the Indenture or any of the other Financing
      Documents.  Without limiting the generality of the foregoing, the term
      "Claims" shall include Claims brought under federal or state environmental
      or
      hazardous materials laws.  The obligations of the Company under this
      Section 8.1 shall apply to all Losses or Claims, or both, that result from,
      arise out of, or are related to any event, occurrence, condition or relationship
      prior to termination of this Agreement, whether such Losses or Claims, or both,
      are asserted prior to termination of this Agreement or
      thereafter.  The obligations of the Company under this Section 8.1
      shall not be affected by any assignment or other transfer by the Issuer of
      its
      rights, titles or interests under this Agreement to the Trustee pursuant to
      the
      Indenture or the resignation or removal of the Trustee for any reason, or the
      termination of the Financing Documents or the payment or defeasance of the
      Bonds
      and will continue to inure to the benefit of the Indemnified Party both prior
      to
      and after any such assignment or transfer or resignation or
      removal.  None of the Indemnified Parties will be liable to the
      Company for, and the Company hereby releases each of them from all liability
      to
      the Company for, all injuries, damages or destruction of all or any part or
      parts of any property owned or claimed by the Company that directly or
      indirectly result from, arise out of or relate to the design, construction,
      operation, use, occupancy, maintenance or ownership of the Project or any part
      thereof, even if such injuries, damages or destruction directly or indirectly
      result from, arise out of or relate to, in whole or in part, one or more
      negligent or grossly negligent acts or omissions of the Indemnified Parties
      in
      connection with the issuance of the Bonds, in connection with the execution
      and
      performance of the Financing Documents or in connection with the
      Project.  Each Indemnified Party, as appropriate, shall reimburse the
      Company for payments made by the Company pursuant to this Section 8.1 to the
      extent of any proceeds, net of all expenses of collection, actually received
      by
      them from any insurance with respect to the loss sustained.  Each
      Indemnified Party may, but shall not have the duty to claim any such

     

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

       

      insurance proceeds and, to the extent of any such claim, such Indemnified
        Party shall assign its rights to such proceeds, to the extent of such required
        reimbursement, to the Company.  In case any action shall be brought or
        to the knowledge of any Indemnified Party threatened against any of them
        in
        respect of which indemnity may be sought against the Company, the Indemnified
        Party shall promptly notify the Company in writing and the Company shall
        have
        the right to assume the investigation and defense thereof including the
        employment of counsel and the payment of all expenses.  The Company
        shall not settle any such case without the consent of the affected Indemnified
        Party, which consent shall not be unreasonably withheld.  The
        Indemnified Party shall have the right to employ separate counsel in any
        such
        action and participate in the investigation and defense thereof, but the
        fees
        and expenses of such counsel shall be paid by the Indemnified Party unless
        (a)
        the employment of such counsel has been specifically authorized by the Company,
        in writing, or (b) the Company has failed to assume the defense and to employ
        counsel or (c) the named parties to any such action (including any impleaded
        parties) include both an Indemnified Party and the Company, and said Indemnified
        Party shall have been advised by its counsel that there may be one or more
        legal
        defenses available to it which are different from or additional to those
        available to the Company (in which case, if the Indemnified Party notifies
        the
        Company in writing that it elects to employ separate counsel at the Company's
        expense, the Company shall not have the right to assume the defense of such
        action on behalf of such Indemnified Party, it being understood, however,
        that
        the Company shall not, in connection with any one such action or separate
        but
        substantially similar or related actions in the same jurisdiction arising
        out of
        the same general allegations or circumstances, be liable for the reasonable
        fees
        and expenses of more than one separate firm of attorneys for the Indemnified
        Parties provided that any Indemnified Party which has been advised by counsel
        that there may be one or more legal defenses available to it which are different
        from or additional to those available to any other Indemnified Party shall
        have
        the right to employ separate counsel whose reasonable fees and expenses shall
        be
        paid by the Company, which firm shall be designated in writing by said
        Indemnified Party).  The Indemnified Party, as a condition of such
        indemnity, shall use its best efforts to cooperate with the Company in the
        defense of any such action or claim.  The Company shall not be liable
        for any settlement of any such action without its consent but, if any such
        action is settled with the consent of the Company or if there be final judgment
        for the plaintiff in any such action, the Company agrees to indemnify and
        hold
        harmless the Indemnified Parties from and against any Loss by reason of such
        settlement or judgment.

    

    

          In
      the event of failure by the
      Company to observe the covenants, conditions and agreements contained in this
      Section 8.1, any Indemnified Party may take any action at law or in equity
      to
      collect amounts then due and thereafter to become due, or to enforce performance
      and observance of any obligation, agreement or covenant of the Company under
      this Section 8.1.

    

    SECTION
      8.2.           Representations
      of the Company .  The Company represents that it is duly organized
      and existing under the laws of the State, that it is and it (or its successors
      hereunder) will remain duly qualified to do business in the State, that it
      has
      duly accomplished all conditions precedent necessary to be accomplished by
      it
      prior to issuance and delivery of the Bonds and execution and delivery of this
      Agreement, that it is not in default under any agreement, indenture or other
      instrument in any manner which would impair the Company's ability to carry
      out
      its obligations hereunder, that it has power to enter into the transactions
      contemplated by this Agreement, that it has been duly authorized to execute
      and
      deliver this Agreement and that it will not, except as provided in this Section,
      voluntarily take any action that would adversely affect its
      existence.

    

    SECTION
      8.3.           Filing
      .  The Company will cause all financing and continuation statements
      related to this Agreement and the Indenture and all supplements to either of
      the
      foregoing, as well as such other security agreements, financing and continuation
      statements and all supplements thereto and other instruments as may be required
      from time to time to be kept and filed in such manner and in such places as
      may
      from time to time be required by law in order to preserve and protect fully
      the
      security of the holders and the rights of 

     

    
      
        
          
          

        

        
          -19-

          
            

          

        

        
          
          

        

      

       

      the
        Trustee hereunder and under the Indenture and to take or cause to be taken
        any
        and all other action necessary to perfect the security interest created under
        the Indenture or this Agreement.

    

    

    SECTION
      8.4.           Representations
      and Covenants of the Issuer .  The Issuer represents that it is
      duly organized and existing under the Act, that it has duly accomplished all
      conditions precedent necessary to be accomplished by it prior to issuance and
      delivery of the Bonds and execution and delivery of this Agreement and the
      Indenture, that it is not in default under any of the provisions contained
      in
      the laws of the State or any agreement to which it is a party in any manner
      which would impair its ability to carry out its obligations hereunder, that
      it
      has power to enter into and perform the transactions contemplated by this
      Agreement and the Indenture, that it has been duly authorized to execute,
      deliver and perform this Agreement and the Indenture, and that it will not
      voluntarily take any action that would adversely affect its
      existence.

    

    The
      Issuer will not knowingly take any affirmative action or omit to take any action
      within its control, which act or omission will adversely affect the exclusion
      from gross income for federal income tax purposes of interest paid on the Bonds,
      and in the event it should unknowingly do so or omit to do so, will promptly
      upon having such event brought to its attention take such reasonable actions
      as
      may rescind or otherwise negate its unknowing action or omission.

    

    SECTION
      8.5.           Removal of
      Liens .  If any lien, encumbrance or charge of any kind based on
      any claim of any kind (including, without limitation, any claim for income,
      franchise or other taxes, whether federal, state or otherwise), shall be
      asserted or filed against any amount paid or payable by the Company under or
      pursuant to this Agreement or any order (whether or not valid) of any court
      shall be entered with respect to any such amount by virtue of any claim of
      any
      kind, in either case so as to:

    

    (a)
      interfere with the due payment of
      such amount to the Trustee or the due application of such amountby the Trustee
      pursuant to the applicable provisions of the Indenture,

    

    (b)
      subject the holders of the Bonds to
      any obligation to refund any moneys applied to payment of the Bonds,
      or

    

    (c)
      result in the refusal of the
      Trustee to make such due application because of its reasonable determination
      that liability might be incurred if such due application were to be
      made,

    

    then
      the
      Company will promptly take such action (including, but not limited to, the
      payment of money) as may be necessary to prevent, or to nullify the cause or
      result of, such interference, such obligation or such refusal, as the case
      may
      be.

    

    SECTION
      8.6.           Special
      Covenants .  The Issuer and the Company agree that all proceeds
      received from the sale of the Bonds, as well as all Loan Payments paid by the
      Company and other moneys received by the Issuer pursuant to this Agreement,
      shall be applied solely in the manner and for the purposes specified in this
      Agreement and the Indenture.  The Issuer further agrees that it will
      observe the covenants made by it in the Indenture and that the Company may
      have
      and exercise all the rights, powers and benefits stated to be in the Company
      in
      this Agreement and the Indenture and that, without the prior written consent
      of
      the Company, the Indenture, the Bonds and any bond purchase agreement pursuant
      to which the Bonds are to be sold shall not be modified in any
      manner.

    

    SECTION
      8.7.           Bonds
      are Limited Obligations .  The Bonds shall be limited obligations
      of the Issuer, payable solely out of the Revenues derived from or in connection
      with this Agreement (including all sums deposited in any Fund (other than the
      Bond Purchase Fund and the Rebate Fund) from time to time pursuant to this
      Agreement, the Indenture, and the Note) and, in certain events, out of amounts
      attributable 

     

    
      
        
          
          

        

        
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      to
        Bond
        proceeds or amounts obtained through the exercise of any remedy provided
        for in
        the Indenture.  The Bonds shall never be paid out of any other funds
        of the Issuer except such Revenues.  No recourse under the Bonds shall
        be had against any past, present or future officer or director of the
        Issuer.  The Bonds shall never be paid in whole or in part out of any
        funds raised or to be raised by taxation or out of any other revenues or
        assets
        of the Issuer or the State except those Revenues pledged by the
        Indenture.  The principal of, and premium, if any, and interest on the
        Bonds are secured, as set forth in the Indenture, by an assignment by the
        Issuer
        of certain of its rights under this Agreement and the Note, including a pledge
        of certain of the Revenues derived from and in connection with this
        Agreement.

    

    

    THE
      BONDS ARE LIMITED AND SPECIAL
      OBLIGATIONS OF THE ISSUER AND DO NOT CONSTITUTE OR CREATE AN OBLIGA­TION,
      GENERAL OR SPECIAL, DEBT, LIABILITY OR MORAL OBLIGATION OF THE STATE OR ANY
      POLITICAL SUBDIVISION THEREOF WITHIN THE MEANING OF ANY CONSTITU­TIONAL OR
      STATUTORY PROVISIONS WHATSOEVER AND NEITHER THE FAITH OR CREDIT NOR THE TAXING
      POWER OF THE STATE OR OF ANY POLITICAL SUBDIVI­SION THEREOF IS PLEDGED TO
      THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR THE INTEREST ON THE
      BONDS.  THE BONDS ARE NOT A GENERAL OBLIGATION OF THE ISSUER (WHICH
      HAS NO TAXING POWER AND RECEIVES NO FUNDS FROM ANY GOVERNMENTAL BODY) BUT ARE
      A
      LIMITED AND SPECIAL REVENUE OBLIGATION OF THE ISSUER PAYABLE SOLELY FROM THE
      INCOME, REVENUES AND RECEIPTS DERIVED OR TO BE DERIVED FROM PAYMENTS MADE
      PURSUANT TO THIS AGREEMENT.

    

    SECTION
      8.8.           Net
      Agreement .  This Agreement shall be deemed and construed to be a
      "net agreement", and the Company shall during its term pay absolutely net the
      Loan Payments and all other payments required hereunder, free of any deductions,
      without abatement, deduction or setoff other than those herein expressly
      provided.

    

    SECTION
      8.9.           No
      Warranty of the Project .  The Issuer makes no express or implied
      warranty of any kind whatsoever with respect to the Project, including, but
      not
      limited to, the merchantability thereof or the fitness thereof for any
      particular purposes; the design or condition thereof; the workmanship, quality
      or capacity thereof; compliance thereof with the requirements of any law, rule,
      specification or contract pertaining thereto; patent infringement; latent
      defects; or that the proceeds derived from the sale of the Bonds will be
      sufficient to pay in full for same.

    

    SECTION
      8.10.         Reserved
      .

    

    SECTION
      8.11.          Representations
      Regarding the Project .  The Company represents and warrants (i)
      that it has no present intention of allowing the disposal or abandonment of
      the
      Project nor of directing the Project to a use other than the purposes
      represented herein; (ii) that the Project is in furtherance of the public
      purposes of the Act; and (iii) that all necessary licenses and permits to
      acquire, construct, and operate the Project were obtained, and that the Project
      has been approved by all necessary governmental bodies or agencies having
      jurisdiction.  Notwithstanding the foregoing, certain component parts
      of the Project may, from time to time be disposed of or abandoned as provided
      in
      Section 5.2 of this Agreement and subject to Section 8.12 of this
      Agreement.

    

    SECTION
      8.12.         Tax Representations and
      Covenants .  The Company hereby represents and covenants as
      follows:

    

    (a)
Qualifying
      Costs.  At least 95 percent of the Proceeds actually expended will
      be expended for Qualifying Costs.

    

    
      
        
          
          

        

        
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(b)
        Limit on Costs of Issuance.  No portion of the Proceeds of the
        Bonds in excess of 2 percent of the Sale Proceeds of the Bonds, within the
        meaning of section 147(g) of the Code, will be expended to pay Issuance Costs
        with respect to the Bonds.

    

    

    (c)
Limitation
      on
      Maturities.  The term of the Bonds will not exceed 120 percent of
      the average reasonably expected economic life of the Project to be financed
      by
      the Bonds, weighted in proportion to the respective cost of each item comprising
      the Project, the cost of which has been or will be financed, directly or
      indirectly, with the Proceeds of the Bonds.  For purposes of the
      preceding sentence, the reasonably expected economic life of property shall
      be
      determined as of the later of (i) the Issue Date for the Bonds or (ii) the
      date
      on which such property is placed in service (or expected to be placed in
      service).  In addition, land shall not be taken into account in
      determining the reasonably expected economic life of property, except that,
      in
      the event 25 percent or more of the collective Net Proceeds of the Bonds,
      directly or indirectly, have been expended for land, such land shall be treated
      as having an economic life of 30 years and shall be taken into account for
      purposes of determining the reasonably expected economic life of such
      property.

    

    (d)
Rebate.  The
      Company agrees to take all steps necessary to compute and pay any rebatable
      arbitrage in accordance with section 148(f) of the Code and section 1.148-3
      of
      the Regulations, including:

    

    (i)
      Delivery of Documents and Money on Computation Dates.  The Company
      shall deliver to the Trustee, within 45 days after each Computation
      Date,

    

    (A)
      a statement, signed by an
      Authorized Representative of the Company, stating the Rebate Amount as of such
      Computation Date; and

    

    (B)
      (1) if such Computation Date is not
      the Final Computation Date, an amount which, together with any amount then
      held
      for the credit of the Rebate Fund, is equal to at least 90 percent of the Rebate
      Amount in respect of such issue of Bonds as of such Computation Date, less
      the
      future value as of such date, of any prior payments made to the United States
      pursuant to section 148(f) of the Code in respect of the Bonds, and (2) if
      such
      Computation Date is the Final Computation Date, an amount which, together with
      any amount then held for the credit of the Rebate Fund in respect of the Bonds,
      is equal to the Rebate Amount as of such Final Computation Date, less the future
      value as of such date, of any prior payments made to the United States pursuant
      to section 148(f) of the Code in respect of the Bonds; and

    

    (C)
      to the extent any Rebate Amount is
      due, an Internal Revenue Service Form 8038-T completed as of such Computation
      Date.

    

    (ii)
      Correction of
      Underpayments.  If the Trustee or the Company shall discover or be
      notified as of any date that any payment paid to the United States Treasury
      pursuant to Section 9.4 of the Indenture of an amount described in Section
      8.12(d)(i) above shall have failed to satisfy any requirement of section
      1.148-3(f) of the Regulations (whether or not such failure shall be due to
      any
      default by the Company, the Issuer, or the Trustee), the Company shall (1)
      deliver to the Trustee a brief written explanation of such failure and any
      basis
      for concluding that such failure was innocent and (2) pay to the Trustee (for
      deposit to the Rebate Fund) and cause the Trustee to pay to the United States
      Treasury from

    
      
      

    

    
      -22-

      
        

      

    

    
      
      

    

     

    the
      Rebate Fund the penalty in respect thereof and as specified in section
      1.148-3(h) of the Regulations, within 45 days after any discovery or
      notice.

    

    (iii)Records.  The
      Company
      shall retain all of its accounting records relating to the Construction Fund,
      the Bond Fund and the Rebate Fund and all calculations made in preparing the
      statements described in this Section 8.12(d) for at least six years after the
      date on which no Bonds are outstanding.

    

    (iv)
      Fees and Expenses.  The
      Company agrees to pay all of the reasonable fees and expenses of Bond Counsel,
      a
      certified public accountant and any other necessary consultant employed by
      the
      Company, the Trustee or the Issuer in connection with computing the Rebate
      Amount.

    

    (v)
      No Diversion of Rebatable
      Arbitrage.  The Company will not indirectly pay any amount otherwise
      payable to the federal government pursuant to the foregoing requirements to
      any
      person other than the federal government by entering into any investment
      arrangement with respect to the Gross Proceeds of the Bonds that is not
      purchased at fair market value or includes terms that the Company would not
      have
      included if the Bonds were not subject to section 148(f) of the
      Code.

    

    (vi)
      Investment of Rebate
      Fund.  In the event funds are deposited to the Rebate Fund, the
      Company shall give the Trustee written instructions as to the investment of
      such
      funds upon deposit of such funds.

    

    (e)
Prohibited
      Facilities.  None of the Proceeds of the Bonds will be used to
      provide any health club facility, airplane, sky-box or other private luxury
      box,
      facility primarily used for gambling, or store the principal business of which
      is the sale of alcoholic beverages for consumption off premises.

    

    (f)
Information
      Reporting
      Requirements.  The Company will provide the Issuer with the
      information required for it to comply with the information reporting
      requirements of section 149(e)(2) of the Code requiring certain information
      regarding the Bonds to be filed with the Internal Revenue Service within
      prescribed time limits.

    

    (g)
"Federally
      Guaranteed"
      Obligations.  The Company covenants and agrees not to take any
      action, or knowingly omit to take any action within its control, that, if taken
      or omitted, respectively, would cause the Bonds to be "federally guaranteed"
      within the meaning of section 149(b) of the Code and applicable regulations
      thereunder, except as permitted by section 149(b)(3) of the Code and such
      regulations.

    

    (h)
Bonds
      Are Not Hedge
      Bonds.  The Company covenants and agrees that none of the proceeds
      of the Bonds will be invested in Nonpurpose Investments having a substantially
      guaranteed Yield for four years or more within the meaning of section
      149(g)(3)(A)(ii) of the Code, and the Company reasonably expects that all of
      the
      spendable proceeds of the Bonds will be used to carry out the governmental
      purposes of the Bonds within the three-year period beginning on the Issue
      Date.

    

    (i)
Yield
      on Investment of Gross
      Proceeds.  The Company will restrict the cumulative, blended Yield
      on the investment of the Gross Proceeds of the Bonds, to the Yield of the Bonds,
      other than amounts (i) not subject to yield restriction because of (A) the
      availability of any

    
      
      

    

    
      -23-

      
        

      

    

    
      
      

    

     

    applicable
      temporary period under section 148(c) of the Code and section 1.148-2(e) of
      the
      Regulations, (B) their deposit in a reasonably required reserve or replacement
      fund described in section 148(d) of the Code and section 1.148-2(f)(2) of the
      Regulations or a bona fide Bond Fund described in section 1.148-1(b) of the
      Regulations (including the Bond Fund) or (C) the minor portion exception
      described in section 1.148-2(g) of the Regulations, or (ii) invested in
      obligations described in section 103(a) of the Code.

    

    (j)
No
      Arbitrage.  The
      Company will not use or invest the Proceeds of the Bonds such that the Bonds
      become "arbitrage bonds" within the meaning of section 148 of the Code, and
      as
      evidence of this intent, a representative of the Company has reviewed the
      No-Arbitrage Certificate of the Issuer prepared in connection and delivered
      concurrently with the Bonds and the Company understands, and will take (or
      request the Trustee or the Issuer to take), the actions described
      therein.

    

    (k)
Acquisition
      of
      Land.  Less than 25 percent of the Net Proceeds of the Bonds
      actually expended will be used, directly or indirectly, for the acquisition
      of
      land or an interest therein.  Notwithstanding the immediately
      preceding sentence, no portion of the Net Proceeds of the Bonds will be used,
      directly or indirectly, for the acquisition of land or an interest therein
      to be
      used for farming purposes.

    

    (l)
Used
      Property.  No
      portion of the Net Proceeds of the Bonds will be used for the acquisition of
      any
      existing property or an interest therein unless (i) the first use of such
      property is pursuant to such acquisition or (ii) the rehabilitation expenditures
      with respect to any building and equipment therefor equal or exceed 15 percent
      of the cost of acquiring such building financed with the proceeds of the Bonds
      (with respect to structures other than buildings, this clause shall be applied
      by substituting 100 percent for 15 percent).  For purposes of the
      preceding sentence, the term "rehabilitation expenditures" shall have the
      meaning set forth in section 147(d)(3) of the Code.

    

    (m)
Modification
      of
      Requirements.  If at any time during the term of this Agreement,
      the Issuer, the Trustee or the Company desires to take any action or omit to
      take any action that would otherwise be prohibited by the terms of this Section,
      such Person shall be permitted to take such action or omit to take such action
      if it shall first obtain and provide to the other Persons named herein an
      opinion of Bond Counsel to the effect that (i) such action or omission shall
      not
      adversely affect the exclusion from gross income for federal income tax purposes
      of interest on the Bonds and (ii) such action or omission otherwise is in
      compliance with the laws of the State and the terms of the Indenture and this
      Agreement.

    

    The
      Company will not knowingly take any
      action, or knowingly omit to take any action, which action or omission will
      adversely affect the exclusion from gross income of the holders thereof for
      federal income tax purposes of interest on the Bonds (other than holders who
      are
      substantial users of the Project or related persons within the meaning of
      section 147(a) of the Code), and in the event of such action or omission
      (whether taken with knowledge or not) will promptly, upon receiving knowledge
      thereof, take all lawful actions, based on advice of Bond Counsel and at the
      Company's expense, as may rescind or otherwise negate such action or
      omission.

    

    SECTION
      8.13.          Financial
      Information .  During such time, if ever, the Company does not
      file annual financial information with the United States Securities Exchange
      Commission, the Company, shall furnish to the Trustee and any owner, or any
      beneficial owner, of any Bond who shall have requested the same in writing,
      as
      soon as available and in any event within 150 days after the end of the fiscal
      year, financial statements for the Company for the immediately preceding fiscal
      year, audited by a nationally recognized accounting firm.  The Trustee
      shall have no responsibility with respect to such financial

    
      
      

    

    
      -24-

      
        

      

    

    
      
      

    

     

    statements
      except to make them available for reasonable examination by any owner of any
      Bond upon reasonable, prior written request.

    
      
        
        

      

      
        -25-

        
          

        

      

       

    

     

    ARTICLE
      IX

    

    ASSIGNMENT

    

    SECTION
      9.1.           Consolidation,
      Merger and Assignment by the Company .  The Company shall not
      merge or consolidate with any other legal entity unless the successor entity
      (if
      other than the Company or an affiliate of the Company) (a) irrevocably and
      unconditionally assumes, in an instrument delivered to the Issuer and the
      Trustee, the due performance of the obligations of the Company under this
      Agreement and (b) is authorized to transact business in this
      State.  The Company may, without the consent of the Issuer or the
      Trustee, transfer or assign this Agreement or transfer or assign all or a
      portion of the Project and any or all of its rights and delegate any or all
      of
      its duties hereunder to an entity either affiliated or unaffiliated with the
      Company, but no such transfer, assignment or delegation shall relieve the
      Company of its liability for the payment of the Loan Payments or for the payment
      of any other amounts to be paid by it under this Agreement or the Note and
      for
      the full observance and performance of all of the covenants and conditions
      to be
      observed and performed by it which are contained in this Agreement and the
      Note.
      The Company shall within fifteen days after the execution thereof, furnish
      to
      the Issuer and the Trustee appropriate documentation demonstrating that the
      surviving, resulting or transferee legal entity, as the case may be, is a
      domestic legal entity, is qualified to do business in the State, and has assumed
      in writing all of the obligations of the Company under this
      Agreement.

    

    SECTION
      9.2.           Issuer's
      Rights of Assignment .  The Issuer may, only in accordance with
      the Indenture, assign this Agreement, the Note and the security interest of
      the
      Issuer created hereby and pledge the moneys receivable hereunder to the Trustee
      as security for payment of the principal of and premium, if any, and interest
      on
      the Bonds and all amounts payable under the Indenture and the other Financing
      Documents.  The Company hereby assents to such assignments and agrees
      that the Trustee may exercise and enforce in accordance with the Indenture
      any
      of the rights of the Issuer under this Agreement or the Note.  Any
      such assignment, however, shall be subject to all of the rights and privileges
      of the Company as provided in this Agreement.

    
      
      

    

    
      -26-

      
        

      

    

    
      
      

    

     

    ARTICLE
      X

    

    EVENTS
      OF DEFAULT AND REMEDIES

    

    SECTION
      10.1.         Enumeration of "Events
      of Default" .  The terms "Event of Default" or "Default" shall
      mean, whenever they are used in this Agreement, any one or more of the following
      events:

    

    (a)
      Failure by the Company to pay when
      due in accordance with Section 4.1(a) and (b) of this Agreement the portion
      of
      the Loan Payments representing payment of the principal of and premium, if
      any,
      on the Bonds.

    

    (b)
      Failure by the Company to pay when
      due in accordance with Section 4.1(a) and (b) of this Agreement the portion
      of
      the Loan Payments representing payment of interest on the Bonds.

    

    (c)
      The occurrence of one or more of
      the events specified in subsections (d) through (f) of Section 12.1 of the
      Indenture.

    

    (d)
      The occurrence of a Company Event
      of Bankruptcy.

    

    (e)
      Default by the Company in the
      payment of any other amount required to be paid under this Agreement or in
      the
      performance or observance of any other of the covenants, agreements or
      conditions contained in this Agreement, or in the Bonds issued under the
      Indenture, and continuance thereof for a period of ninety (90) days after
      written notice specifying such failure and requesting that it be remedied shall
      have been given to the Company by the Trustee, which may give such notice in
      its
      discretion (with the prior written consent of the Bond Insurer) and shall give
      such notice at the written request of the Bond Insurer or the holders of not
      less than twenty-five percent (25%) in principal amount of the Bonds then
      outstanding with the consent of the Bond Insurer, unless the Trustee, or the
      Trustee and holders of a principal amount of Bonds not less than the principal
      amount of Bonds the holders of which requested such notice, as the case may
      be,
      shall agree in writing to an extension of such period prior to its expiration,
      provided that any extension shall be granted only with the written consent
      of
      the Bond Insurer; provided, however, that the Trustee, or the Trustee and the
      holders of such principal amount of Bonds, as the case may be (and the Bond
      Insurer), shall be deemed to have agreed to an extension of such period if
      corrective action is instituted by the Company within such period and is being
      diligently pursued.

    

    SECTION
      10.2.         Remedies
      .  Upon any acceleration of the principal of the Bonds under the
      Indenture, all Loan Payments shall be immediately due and payable under this
      Agreement and the maturity of the Note shall be accelerated.  In
      addition, whenever any Event of Default referred to in Section 10.1 shall have
      occurred and be continuing, the Trustee, or the Issuer with the prior written
      consent of the Trustee, may take any action at law or in equity to collect
      amounts then due and thereafter to become due, or to enforce performance and
      observance of any obligation, agreement or covenant of the Company under this
      Agreement.  Any amounts collected pursuant to action taken under this
      Section 10.2 shall be applied in accordance with the provisions of the
      Indenture.

    

    Neither
      the Trustee nor the Issuer may
      declare all unpaid Loan Payments immediately due because of a failure by the
      Company to observe or perform any covenant, condition or agreement contained
      in
      Section 8.1 of this Agreement.  However, the exception of the
      preceding sentence shall not otherwise preclude the Issuer from enforcing,
      with
      or without the consent of the Trustee, or the Trustee from enforcing the
      observance and performance of the covenants, conditions and agreements contained
      in such Section.

     

    
      
        
          
          

        

        
          -27-

          
            

          

        

        
          
          

        

      

        

              
        A waiver by the Trustee of any Events of Default as that term is defined
        in the
        Indenture, in accordance with the terms and provisions of the Indenture,
        or any
        annulment of or acceleration of the due date of the principal of the Bonds,
        shall also constitute a waiver of the corresponding Event of Default and
        its
        consequences hereunder or annulment of any acceleration of principal hereunder,
        without further action on the part of the Trustee.

    

    

    No
      remedy shall be exercised by the
      Trustee without the prior written consent of the Bond Insurer, and the Trustee
      hereby agrees that it shall pursue such remedies as are directed in writing
      by
      the Bond Insurer.

    

    SECTION
      10.3.         No Remedy Exclusive
      .  No remedy conferred upon or reserved to the Issuer or the Trustee
      by this Agreement is intended to be exclusive of any other available remedy
      or
      remedies, but each and every such remedy shall be cumulative and shall be in
      addition to every other remedy given under this Agreement or now or hereafter
      existing at law or in equity or by statute.  No delay or omission to
      exercise any right or power accruing hereunder shall impair any such right
      or
      power or shall be construed to be a waiver thereof, nor shall any single or
      partial exercise of any other right, power or privilege, but every such right
      and power may be exercised from time to time and as often as may be deemed
      expedient.  In order to entitle the Trustee to exercise any remedy
      reserved to it in this Article, it shall not be necessary to give any notice
      other than such notices as may be herein expressly required.

    

    SECTION
      10.4.         Agreement to Pay
      Attorneys' Fees and Expenses .  In the event the Company should
      default under any of the provisions of this Agreement and the Issuer or the
      Trustee should employ attorneys or incur other expenses for the collection
      of
      the payments due under this Agreement or the enforcement of performance or
      observance of any obligation or agreement on the part of the Company herein
      contained, the Company agrees that it will on demand therefor, and upon
      presentation of an itemized bill, pay to the Issuer or the Trustee the
      reasonable fees and expenses of such attorneys and such other expenses so
      incurred by the Issuer or the Trustee.

    
      
      

    

    
      -28-

      
        

      

    

    
      
      

    

     

    ARTICLE
      XI

    

    GENERAL

    

    SECTION
      11.1.         Force Majeure
      .  If by reason of force majeure either the Issuer or the Company
      shall be rendered unable wholly or in part to carry out its obligations under
      this Agreement, and if such party gives notice and full particulars of such
      force majeure in writing to the other party within a reasonable time after
      failure to carry out its obligations under this Agreement, such obligations
      (other than the obligations of the Company specified in the last sentence of
      this Section 11.1) of the party giving such notice, so far as they are affected
      by such force majeure, shall be suspended during the continuance of the
      inability then claimed, including a reasonable time for removal of the effect
      thereof.  The term "force majeure" shall mean acts of God, strikes,
      lockouts or other industrial disturbances, acts of the public enemy, orders
      of
      any kind of the Government of the United States, or of any state thereof, or
      any
      civil or military authority, insurrections, riots, epidemics, landslides,
      lightning, earthquakes, fires, hurricanes, tornadoes, storms, floods, washouts,
      droughts, arrests, restraining of government and people, civil disturbances,
      explosions, breakage or accidents to machinery, transmission pipes or canals,
      partial or entire failure of utilities, shortages of labor, material, supplies
      or transportation, or any other cause not reasonably within the control of
      the
      party claiming such inability.  The requirement that any force majeure
      shall be reasonably beyond the control of the party shall be deemed to be
      fulfilled even though the existing or impending strike, lockout or other
      industrial disturbance may not be settled but could have been settled by
      acceding to the demand of the opposing Person or Persons.  The
      occurrence of any event of force majeure shall not suspend or otherwise abate,
      and the Company shall not be relieved from, the obligation to pay the Loan
      Payments and to pay any other payments required to be made by it under this
      Agreement at the times required.

    

    SECTION
      11.2.          Waiver of
      Rights .  Failure by the Issuer, the Company or the Trustee to
      insist upon the strict performance of any of the covenants and agreements
      contained in this Agreement or to exercise any rights or remedies upon default
      shall not be considered a waiver or relinquishment of the right to insist upon
      and to enforce by any appropriate legal remedy strict compliance by the
      defaulting party with all of the covenants and conditions binding on it, or
      of
      the right to exercise any such rights or remedies if such default be continued
      or repeated.

    

    SECTION
      11.3.          Notices
      .  Unless otherwise provided hereunder or in the Agreement, all
      notices, certificates or other communications (a "Communication") hereunder
      to
      be given by any of the following parties to any of the other following parties
      shall be deemed to have been sufficiently given and received by such parties
      only upon actual receipt thereof and if sent by registered mail, by Electronic
      notice, by overnight courier (signature required), telephone, confirmed in
      writing, to the relevant party as follows:

    

    Company:                  Cleco
      Power LLC

    2030
      Donahue Ferry Road

    Pineville,
      LA  71361

    ATTN:  Manager,
      Treasury
      Services and Corporate Financing

    Fax#:  (318)
      484-7697

    

    Issuer:                        Rapides
      Finance Authority

    c/o
      Scott M. Brame

    711
      Washington Street

    Alexandria,
      LA  71301

    Fax#:  (318)
      442-2625

    

    
                     
        Trustee Principal

       

      
         

        
          
            
            

          

          
            -29-

            
              

            

          

          
            
            

          

           

                        
Office and Tender

        

      

    

    
      	
               

            	
                        
                Office:

            	
              The
                Bank of New York Trust Company,
                N.A.

            

    

    601
      Poydras Street, Suite
      2225

    New
      Orleans,
      LA  70130-6050

    Fax#:   (504)
      565-5501

    

    Paying
      Agent:                          The
      Bank of New York Trust Company, N.A.

    601
      Poydras Street, Suite
      2225

    New
      Orleans,
      LA  70130-6050

    Fax#:   (504)
      565-5501

    

    Remarketing                              Goldman,
      Sachs & Co.

    Agent:                                        85
      Broad Street, 24th Floor

    New
      York,
      NY  10004

    ATTN:  Municipal
      Note
      Trading Desk

    Fax
      #:  (212)
      346-4209

    

    
      	
               

            	
              Bond
                Insurer:

            	
              Financial
                Guaranty Insurance Company

            

    

    125
      Park Avenue

    New
      York,
      NY  10017

    ATTN:  Risk
      Management

    Fax
      #:  (212)
      312-2707

    

    
      	
               

            	
              with
                a copy to:

            	
              U.
                S. Bank Trust National Association

            

    

    100
      Wall Street, 19th Floor

    New
      York,
      NY  10005

    ATTN:  Corporate
      Trust
      Department

    

    or,
      in
      each case, at such other address or facsimile number as may have been designated
      most recently in writing by the addressee to the addressor; provided, however,
      that in order to be considered duly made, a duplicate copy of any Communication
      to the Issuer, the Company or the Trustee shall be sent at the same time and
      in
      like manner to each of the others.

    

    Whenever
      this Agreement provides for
      the delivery by the Issuer of a Communication, the person receiving the same
      shall be entitled to rely and act upon such Communication if it is signed by
      the
      Chairman, Vice Chairman or the Secretary of the Issuer, or any other authorized
      officer of the Issuer.  Whenever this Agreement provides for the
      delivery by the Company of any Communication, the Person receiving such
      Communication shall be entitled to rely and act upon such Communication if
      it is
      signed by the President, Chief Financial Officer or Treasurer of the Company,
      or
      any other duly authorized officer of the Company.

    

    SECTION
      11.4.         Counterparts,
      Amendments, Governing Law, Etc.  This Agreement (a) may be
      executed in several counterparts, each of which shall be deemed an original,
      and
      all of which shall constitute one and the same instrument; (b) except as
      provided in this Agreement or in the Indenture, may be modified or amended
      only
      by an instrument in writing signed by the duly authorized representatives of
      all
      parties (or their respective successors or assigns) and, so long as any Bonds
      are outstanding, only with the consent of the Trustee given in accordance with
      the applicable provisions of the Indenture; and (c) shall be governed, in all
      respects including validity, interpretation and effect by, and shall be
      enforceable in accordance with, the law of the State.  The parties
      agree that, in accordance with the Act, they will appropriately amend this
      Agreement to increase the payments to be made by the Company hereunder if for
      any reason such payments, if made, are not sufficient to pay the principal
      of
      and interest and premium, if any, on the Bonds as the same 

     

    
      
        
          
          

        

        
          -30-

          
            

          

        

        
          
          

        

      

       

      become
        due but, in no event shall the Company be obligated to pay interest on the
        principal amount of the Loan in excess of the maximum amount allowed by
        law.

    

    

    The
      Section and other headings
      contained in this Agreement are for reference purposes only and shall not
      control or affect its interpretation in any respect.  In the event
      that any clause or provision of this Agreement shall be held to be invalid
      by
      any court of competent jurisdiction, the invalidity of such clause or provision
      shall not affect any of the remaining provisions hereof.

    

    SECTION
      11.5.          Term of
      Agreement .  Except as provided in Article VII of this Agreement,
      this Agreement shall remain in full force and effect from the date of execution
      and delivery hereof until the Indenture has been discharged in accordance with
      the provisions thereof; provided, however, that the provisions of Sections
      8.1,
      8.5, and the last paragraph of Section 7.1 of this Agreement shall survive
      any
      expiration or termination of this Agreement.

    

    SECTION
      11.6.         Company's Approval of
      Indenture .  The Indenture has been submitted to the Company for
      examination, and the Company acknowledges that, by execution of this Agreement,
      it has approved the Indenture.

    

    SECTION
      11.7.         Auction Rate
      Requirement .  In no event shall the Bonds bear interest at a rate
      in excess of the Maximum Rate.  The Company hereby agrees that, if the
      Auction Period Rate on the Bonds shall be the Maximum Rate or any similar rate
      for a period (a) in excess of thirty (30) days, the Company agrees to take
      all
      steps necessary to ensure that the Auction Period Rate does not exceed the
      interest rate payable on similar securities (taking into account the interest
      period and enhanced/insured rating of the Bonds) or (b) in excess of sixty
      (60)
      days, the Company agrees to convert, or cause to be converted, all Bonds to
      a
      fixed rate mode (that is a long-term through maturity) or, with the approval
      of
      the Bond Insurer, to a variable interest rate mode, in each case at the lowest
      interest rate that will permit the Remarketing Agent to sell all the Bonds
      on
      the conversion date at a price equal to 100% of the principal amount thereof,
      plus accrued interest thereon.  If an event of default shall have
      occurred and be continuing under this Indenture or the Company fails to cause
      a
      conversion of the Bonds to another interest rate mode as required by the
      foregoing sentence, the Bond Insurer  may, in its discretion, direct
      the conversion of the Bonds to a fixed rate or any other interest rate
      mode.

    

    SECTION
      11.8.         Third Party
      Beneficiaries .  To the extent that this Agreement confers upon or
      gives or grants to the Bond Insurer any right, remedy or claim under or by
      reason of this Agreement, the Bond Insurer is hereby explicitly recognized
      as
      being a third-party beneficiary hereunder and may enforce any such right, remedy
      or claim conferred, given or granted hereunder.

     

    
      
        
          
          

        

        
          -31-

          
            

          

        

        
          
          

        

      

    

    

          
      IN WITNESS WHEREOF, the Issuer and the Company have caused this Agreement to
      be
      signed in their behalf by their duly authorized representatives as of the date
      set forth above.

    

    

    RAPIDES
      FINANCE
      AUTHORITY

    

    

    

    By:         /s/
      David C. Butler
      II                      
  

                              
       Chairman

    ATTEST:

    

    

    

    By:         /s/
      Granvel
      Meytoyer               

              
      Secretary                                             [SEAL]

    

     

     

    WITNESSES:

    
/s/
      Scott M.
      Brame                           

    

    

    /s/Tia
      Jameson                                  

     

     

     

    CLECO
      POWER LLC

    

    

    

    By:         /s/
      Kathleen F.
      Nolen                
              

                                                       
        Senior Vice President

            
                     
 and Chief Financial Officer 

    

    WITNESSES:

    

    

    /s/
      Shelley
      Malone                               
 

    

    /s/
      Sharon G.
      Chelette                        

    

    
      
        
        

      

      
        -32-

        
          

        

      

       

    

    
       

      EXHIBIT
        A

    

    

    DESCRIPTION
      OF THE PROJECT

    

    The
      Project consists of the
      acquisition, construction, and installation of solid waste disposal or recycling
      and sewage facilities at the solid-fuel power plant of Cleco Power LLC to be
      located in the Parish of Rapides, State of Louisiana. These facilities consist
      of real estate, equipment, and systems which will be acquired, constructed,
      and
      installed for use as pollution control, solid waste disposal facilities,
      recycling facilities, resource recovery facilities or industrial sewage and
      wastewater treatment facilities.

    

    The
      pollution control facilities
      capture, reduce and process air and water emissions including flue gases, NOx,
      SOx, air-borne particulate matter, mercury, wastewater, and other pollutants
      in
      accordance with applicable environmental regulations.  The principal
      components and equipment comprising the pollution control facilities may
      include, without limitation, NOx treatment systems, scrubber systems, baghouses,
      electrostatic precipitators, flue gas desulfurization systems, selective
      catalytic reduction (SCR) systems, activated carbon injection systems, mercury
      removal and disposal systems, ash handling and disposal systems, and wastewater
      collection, storage, and treatment systems.  The pollution control
      facilities also include functionally related and subordinate auxiliaries,
      utilities, structures and buildings, associated electrical and mechanical
      systems, instrumentation and control systems, and site
      development.  Due to evolving environmental rules and regulations, any
      of the pollution control systems and components listed above may be substituted
      with other facilities that perform the same or similar pollution control
      functions.

    

    The
      solid waste disposal or recycling
      facilities dispose and recycle solid wastes including fly ash, bottom ash,
      spent
      resins, pyrites, flue gas scrubber related wastes, and waste
      fuel(s).  The components of the solid waste disposal and recycling
      facilities may include, without limitation, bottom ash and fly ash collection
      systems, solid waste handling and disposal systems, scrubber waste collection,
      storage, handling and disposal systems, ash handling and disposal or recycling
      systems, ash pond improvements and closures, spent resin handling and disposal
      or recycling systems, and certain property that is functionally related and
      subordinate to the foregoing systems and components.  These integrated
      facilities include process equipment, utilities or support systems, and related
      structures and buildings.  The facilities are property used for the
      collection, storage, treatment, utilization, processing or final disposal of
      solid waste.

    

    The
      sewage facilities collect,
      handle, store, treat, and discharge process wastewater and contact storm water
      as required by applicable environmental regulations.  The components
      of the sewage facilities may include, without limitation, piping, sewers,
      wastewater collection systems, sanitary sewage systems, impoundments, oil/water
      separators, bioreactors and treatment units, clarifiers, sludge handling
      systems, discharge systems, related auxiliary systems, and certain property
      that
      is functionally related and subordinate to the foregoing systems and components.
      The solid waste disposal or recycling facilities also include the portion of
      the
      plant attributable to the usage and recycling of waste fuel(s). These facilities
      also include process equipment, utilities or support systems, and related
      buildings and structures.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    

    DESCRIPTION
      OF THE SITE

    

    

    The
      Project is located at 275
      Rodemacher Road, Lena, Louisiana 71447-9708 and is described as
      follows:

    

    

    

    
      
        
        

      

      
        
          

        

      

       

    

    EXHIBIT
      C

    

    FORM
      OF NOTE

    

    

    NOTICE:  This
      Note has been endorsed, pledged and assigned by the Rapides Finance Authority
      to
      The Bank of New York Trust Company, N.A., as trustee under the Indenture (as
      defined below), and this Note is held in trust by such The Bank of New York
      Trust Company, N.A., as trustee, under such Indenture, reference to which is
      made for the terms on which this Note is held.

    

    $60,000,000                                                                                         __________,
      2007

    

    FOR
      VALUE
      RECEIVED, Cleco Power LLC, a Louisiana limited liability
      company (the "Company"), does hereby promise to pay to the order of the
Rapides Finance Authority (hereinafter called the "Issuer") at
      the corporate trust office of The Bank of New York Trust Company, N.A. (the
      "Trustee"), or any successor trustee acting as such under that certain Indenture
      of Trust (the "Indenture") dated as of November 1, 2007 by and between the
      Issuer and the Trustee, in lawful money of the United States of America, the
      principal sum of Sixty Million Dollars ($60,000,000), and to pay interest on
      the
      unpaid principal amount hereof, in like money, at such office in the amounts
      specified in Section 4.1(a) of the Loan Agreement hereinafter
      referenced.

    

    ALL
      SUMS
      paid hereon shall be applied first to the satisfaction of accrued interest
      and
      the balance to the unpaid principal.

    

    This
      Note
      is due and payable on November1, 2037.  Interest on the Note is due
      and payable on each Interest Payment Date and at maturity in the amounts and
      at
      the rate specified in Section 4.1(a) of the Loan Agreement.

    

    THIS
      NOTE
      is the Note referred to in that certain Loan Agreement dated as of November
      1,
      2007 by and between the Company and the Issuer (the "Loan Agreement"), and
      is
      subject to, and is executed in accordance with, all of the terms, conditions
      and
      provisions thereof, including those respecting prepayment and the acceleration
      of maturity and is further subject to all of the terms, conditions and
      provisions of the Indenture, all as provided in the Loan Agreement.

    

    THIS
      NOTE
      is a contract made under and shall be construed in accordance with and governed
      by the laws of the State of Louisiana.

    

    

    CLECO
      POWER LLC

    

    

    

    By:  _____________________________________

    Title:

    

    

    
       

      
        
        

        
          

        

      

       

    

     

     

    ENDORSEMENT

    (To
      be
      set forth on back of Note)

    

    

    Pay
      to
      the order of The Bank of New York Trust Company, N.A., as Trustee, without
      recourse or warranty, except warranty of good title and warranty that the Issuer
      has not assigned this Note to a person other than the Trustee and that the
      principal amount of $60,000,000 remains unpaid under this Note.

    

    

    RAPIDES
      FINANCE
      AUTHORITY

    

    

    

    By:  ____________________________________

                                         Chairman

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

    

    FORM
      OF COMPLETION CERTIFICATE

    

    

    The
      undersigned, a duly authorized
      officer of Cleco Power LLC (the "Company"), hereby certifies that:

    

    1.   As
      of the date of
      this Completion Certificate, [the Project has been completed
      and placed in service] OR [the Final Payment
      Date has occurred].

    

    2.   $____________
      is
      the amount of Proceeds expended for Qualifying Costs, $____________ for Project
      Costs that were not Qualifying Costs and $_____________ for Issuance
      Costs.

    

    3.   [if
      the
      Final Payment Date has not occurred] $_____________ is the amount which
      the Trustee is to retain in the Construction Fund for payment of amounts now
      subject to dispute or not now due.

    

    All
      capitalized terms used herein
      shall have the means given to them in the Loan Agreement dated as of November
      1,
      2007 between the Company and the Rapides Finance Authority (the "Loan
      Agreement").

    

    

    CLECO
      POWER LLC

    

    

    By:         __________________________________

    Authorized
      Company
      Representative

    

    Date:  ________________________

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