BLACK HILLS CORP /SD/
2ND AMENDMENT TO CREDIT AGREEMENT
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>7
<FILENAME>ex10_5-10q3rd.txt
<DESCRIPTION>2ND AMENDMENT TO CREDIT AGREEMENT
<TEXT>
Execution Copy                                                   Exhibit 10.5




                   SECOND AMENDMENT TO 3-YEAR CREDIT AGREEMENT


         This SECOND AMENDMENT TO 3-YEAR CREDIT AGREEMENT (this "Amendment") is
dated as of August 27, 2002, and is entered into by and among Black Hills
Corporation, a South Dakota corporation (the "Borrower"), ABN AMRO Bank N.V. in
its capacity as administrative agent for the Banks party to the Credit Agreement
described below (in such capacity, the "Administrative Agent"), and the
financial institutions party hereto.

         WHEREAS, the Administrative Agent, the Banks and the Borrower have
entered into that certain 3-Year Credit Agreement (as the same has been amended
(including via that certain First Amendment to 3-Year and 364-Day Revolving
Credit Agreements dated as of June 13, 2002), extended, modified or restated,
the "Credit Agreement") dated as of August 28, 2001 among the Borrower, the
financial institutions from time to time party thereto (each a "Bank," and
collectively the "Banks"), U.S. Bank, National Association and The Bank of Nova
Scotia, in their capacity as documentation agents for the Banks thereunder (in
such capacity, "Documentation Agents"), Union Bank of California, N.A. and Bank
of Montreal, in their capacity as syndication agents for the Banks thereunder
(in such capacity, "Syndication Agents") and ABN AMRO Bank N.V. in its capacity
as Administrative Agent for the Banks thereunder; and

         WHEREAS, the Borrower has requested that the Credit Agreement be
amended as set forth herein and the Banks are, subject to the terms hereof,
willing to so amend the Credit Agreement.

         NOW THEREFORE, in consideration of the mutual conditions and agreements
set forth in the Credit Agreement and this Amendment, and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

     1. Definitions.  Capitalized terms used in this Amendment, unless otherwise
defined  herein,  shall have the  meaning  ascribed  to such terms in the Credit
Agreement.

     2.  Amendments.  Subject  to the  conditions  set forth  below,  the Credit
Agreement is amended as follows:

          (a) Section 1.1 of the Credit  Agreement is hereby amended by amending
     and restating the following definitions in their entirety as follows:

               "L/C Commitment" means an amount equal to $100,000,000.


                                       1
<PAGE>


               "Level V Status" means  neither Level I Status,  Level II Status,
          Level III  Status,  nor Level IV Status  exists,  but  Borrower's  S&P
          Rating is BBB- or higher and its Moody's Rating is Baa3 or higher.

               "364  Day  Credit  Agreement"  means  that  certain  Amended  and
          Restated  364 Day Credit  Agreement  dated as of August 27, 2002 among
          Borrower, ABN AMRO Bank, N.V., in its capacity as administrative agent
          for the Banks thereunder, U.S. Bank, National Association and The Bank
          of Nova  Scotia,  in their  capacity as  documentation  agents for the
          Banks thereunder, Union Bank of California, N.A. and Bank of Montreal,
          in their capacity as syndication  agents for the Banks  thereunder and
          the various financial  institutions from time to time party thereto as
          Banks

          (b)  Section  1.1 of the  Credit  Agreement  is hereby  amended by (i)
     deleting the definitions of "ABN AMRO Credit Agreement", "Interest Coverage
     Ratio",  "Consolidating Interest Expense", "US Bank Credit Agreements", and
     "Wells  Fargo  Credit  Agreements"  appearing  therein,  (ii)  deleting the
     parenthetical "(once obtained)" in each place such parenthetical appears in
     the definitions of "Level I Status",  "Level II Status", "Level II Status",
     "Level IV Status",  "Level V Status", and "Level VI Status", (iii) changing
     the words  "Consolidating  Interest  Expense"  too  "Consolidated  Interest
     Expenses" in the  definition of  "Consolidated  EBITDA",  (iv) changing the
     words "Black Hills Energy Ventures,  Inc." to "Black Hills Energy, Inc." in
     the definition of "Material  Subsidiaries"  and (v) inserting the following
     definitions in proper alphabetical order:

               "Consolidated  Fixed Charges"  means,  for any period and without
          duplication  the  sum of (i)  the  aggregate  amount  of  Consolidated
          Interest  Expense  with  respect  to  Recourse  Indebtedness  paid  or
          scheduled to be paid for such period, and (ii) the aggregate amount of
          all mandatory  scheduled  payments (whether  designated as payments or
          prepayments)  and  scheduled  sinking  fund  payments  with respect to
          principal  of  any  Recourse  Indebtedness  of  the  Borrower  or  its
          Subsidiaries  (including  payments  in the nature of  principal  under
          Capital Leases).

               "Consolidated  Interest  Expense"  means,  with  reference to any
          period  of the  Borrower  and  its  Subsidiaries,  the  sum of (i) all
          interest charges  (including  capitalized  interest,  imputed interest
          charges  with  respect  to  Capitalized   Lease  Obligations  and  all
          amortization of debt discount and expense and other deferred financing
          charges) of the Borrower and its Subsidiaries on a consolidated  basis
          for such  period  determined  in  accordance  with  GAAP,  other  than
          interest  charges  relating  to  Non-Recourse  Indebtedness,  (ii) all
          commitment or other fees payable in respect of the issuance of standby
          letters of credit or other  credit  facilities  for the account of the
          Borrower or its Subsidiaries, and (iii) net costs/expenses incurred by
          the Borrower and its Subsidiaries under Derivative Arrangements.

                                       2
<PAGE>

               "Fixed  Charge  Coverage  Ratio"  means,  for any  period of four
          consecutive  quarters of the  Borrower  ending with the most  recently
          completed such fiscal quarter, the ratio of (A) Adjusted  Consolidated
          EBITDA to (B) Consolidated Fixed Charges for such period.

               "Liquid Assets" means,  as the date of any  calculation  thereof,
          the sum of (i) the amount of unrestricted cash which the Borrower then
          has  available,  plus  (ii) the  aggregate  amount  of then  available
          (meaning the  Borrower is entitled to borrow such amounts  pursuant to
          the  applicable  documentation)  unused  capacity under the Borrower's
          senior unsecured credit  facilities  (including this Agreement and the
          364-Day Credit Agreement).

          (c) Section 2.2(a) of the Credit Agreement is hereby amended by adding
     the following sentence to the end of such subsection:

               No Issuing Agent shall have an obligation  pursuant to the Credit
          Documents to issue any Letter of Credit if, after giving effect to the
          issuance  of such  Letter of  Credit,  the  aggregate  face  amount of
          Letters of Credit issued by such Issuing Agent then outstanding  would
          exceed $50,000,000.

          (d)  Section  2.12(b) of the  Credit  Agreement  is hereby  amended by
     changing  the  amount  "$200,000,000"   appearing  in  such  subsection  to
     "$300,000,000".

          (e)  Section  5.4 of the  Credit  Agreement  is hereby  amended by (i)
     changing  the date  "December  31,  2000" in both places it appears in each
     Section to "December 31, 2001",  and (ii) changing the date "June 30, 2001"
     to "June 30, 2002".

          (f) Sections  7.15(c) and 7.15(d) of the Credit  Agreement  are hereby
     amended  be  inserting  the  following   text  at  the  beginning  of  such
     subsections:

                  so long as the Borrower would be in compliance with Section
                  7.17 hereof (calculated as of the date of, and after giving
                  affect to, such incurrence),

          (g)  Section  7.16 of the Credit  Agreement  is hereby  amended in its
     entirety to be and to read as follows:

                  Section 7.16 Consolidated Net Worth. Borrower will at the end
                  of each fiscal quarter maintain Consolidated Net Worth in an
                  amount of not less than the sum of (i) $425,000,000 plus (ii)
                  fifty percent (50%) of the aggregate Consolidated Net Income,
                  if positive, for the period beginning April 1, 2002 and ending
                  on the last day of such fiscal quarter.

          (h)  Section  7.18 of the Credit  Agreement  is hereby  amended in its
     entirety to be and to read as follows:


                                       3
<PAGE>

                  Section 7.18 Fixed Charge Coverage Ratio. Borrower will
                  maintain a Fixed Charge Coverage Ratio of not less than
                  1.50:1.00, as determined at the end of each fiscal quarter.

          (i)  Section  7.25 of the Credit  Agreement  is hereby  amended in its
     entirety to be and to read as follows:

                  Section 7.25 Ratings. Borrower will at all times this
                  Agreement is in effect maintain a S&P Rating and a Moody's
                  Rating (or if one or both of such ratings are unavailable,
                  rating(s) from such other recognized national rating agency or
                  agencies as may be acceptable to the Administrative Agent and
                  the Required Banks).

          (j) A new  Section  7.26 of the Credit  Agreement  is hereby  added in
     proper numerical order to be and to read as follows:

                  Section 7.26 Liquidity Covenant. Borrower will, as of the last
                  day of each fiscal quarter commencing with the fiscal quarter
                  ending December 31, 2002, maintain Liquid Assets of at least
                  $30,000,000.

          (k)  Schedule  1 to the  Credit  Agreement  is hereby  deleted  in its
     entirety  and a new  Schedule 1 in the form of  Schedule  1 (3-Year  Credit
     Agreement) attached to this Amendment is hereby substituted therefor.

          (l) Schedule 1 to Exhibit B of the Credit  Agreement is hereby deleted
     in its  entirety and  Schedule 1 to this  Amendment  is hereby  substituted
     therefor.

          (m) Schedules 5.2, 5.5, 5.11, 7.9, 7.14, 7.15(a), 7.15(b), and 7.19 of
     the Credit Agreement are hereby amended in their entirety to be and to read
     the same as the  corresponding  schedules  attached  to the 364 Day  Credit
     Agreement being executed as of the date of this Amendment.

     3. Ratification.  The Borrower hereby ratifies,  acknowledges,  affirms and
reconfirms its rights,  interests and obligations under each Credit Document and
agrees to perform each of its  obligations  thereunder as and when required.  By
executing this Amendment,  the Borrower hereby further  ratifies,  acknowledges,
affirms and reconfirms that each Credit Document, as amended hereby, constitutes
a legal,  valid and binding obligation of the Borrower  enforceable  against the
Borrower in accordance with its terms,  and that each such Credit  Document,  as
amended hereby, is in full force and effect.

     4.  Conditions.  The  effectiveness  of this  Amendment  is  subject to the
following conditions precedent:

                                       4
<PAGE>

          (a) The Borrower shall have executed and delivered this Amendment, and
     the Borrower shall have executed and/or  delivered such other documents and
     instruments as Administrative Agent may require.

          (b) The  representations and warranties set forth in Section 5 of this
     Amendment shall be true and correct.

          (c)  All  proceedings   taken  in  connection  with  the  transactions
     contemplated  by this  Amendment and all documents,  instruments  and other
     legal  matters  incident  thereto  shall  be  reasonably   satisfactory  to
     Administrative Agent and its legal counsel.


     5.  Representations and Warranties.  To induce the Administrative Agent and
the Banks to enter into this Amendment,  the Borrower represents and warrants to
the  Administrative  Agent and the Banks that (i) the  execution,  delivery  and
performance  of  this  Amendment  has  been  duly  authorized  by all  requisite
corporate  action on the part of the Borrower and that this  Amendment  has been
duly  executed and  delivered by the Borrower and this  Amendment and the Credit
Agreement,  as amended hereby,  constitutes valid and binding obligations of the
Borrower  enforceable in accordance with its terms,  (ii) no Default or Event of
Default  (after giving effect to this  Amendment) has occurred and is continuing
under the Credit  Agreement or would result from the  execution  and delivery of
this Amendment,  and (iii) each of the  representations and warranties set forth
in Section 5 of the Credit Agreement,  as amended hereby, is true and correct in
all  material  respects  as  of  the  date  hereof,  except  that  if  any  such
representation or warranty relates solely to an earlier date it need only remain
true as of such date.

     6.  Severability.  Any  provision  of this  Amendment  held  by a court  of
competent  jurisdiction  to be  invalid  or  unenforceable  shall not  impair or
invalidate  the  remainder of this  Amendment  and the effect  thereof  shall be
confined to the provision so held to be invalid or unenforceable.

     7.  References.  Any  reference  to the Credit  Agreement  contained in any
document,  instrument  or  agreement  executed  in  connection  with the  Credit
Agreement shall be deemed to be a reference to the Credit  Agreement as modified
by this Amendment.

     8.   Counterparts.   This   Amendment  may  be  executed  in  one  or  more
counterparts, each of which shall constitute an original, but all of which taken
together  shall  be one and the  same  instrument.  This  Amendment  may also be
executed by facsimile and each  facsimile  signature  hereto shall be deemed for
all purposes to be an original signatory page.

     9. Costs.  The Borrower  agrees to pay on demand all  reasonable  costs and
expenses  incurred by the  Administrative  Agent (including fees and expenses of
counsel)  incurred in connection  with the  negotiation  and preparation of this
Amendment or the syndication  (whether incurred before or after the date hereof)
of the Credit Agreement.

                                       5
<PAGE>

     10.  Governing Law. The validity and  interpretation  of this Amendment and
the terms and conditions set forth herein, shall be governed by and construed in
accordance with the laws of the State of New York,  without giving effect to any
provisions  relating to conflict  of laws other than  section  5-1401 of the New
York General Obligations Laws.

     11. Miscellaneous. This Amendment shall be deemed to be a Credit Document.



           [- Remainder of Page Left Blank - Signature Pages Follow -]



                                       6
<PAGE>



         In Witness Whereof, the parties hereto have caused this Agreement to be
duly executed and delivered in New York, New York by their duly authorized
officers as of the day and year first above written.



                                     BLACK HILLS CORPORATION, a
                                     South Dakota corporation

                                     By:      _____________________________
                                     Name:    _____________________________
                                     Title:   _____________________________





                                       7
<PAGE>




                                     ABN AMRO BANK N.V., in its individual
                                     capacity as a Bank and as Administrative
                                     Agent

                                     By:      _____________________________
                                     Name:    David B. Bryant
                                     Title:   Senior Vice President &
                                              Managing Director

                                     By:      _____________________________
                                     Name:    _____________________________
                                     Title:   _____________________________


                                       8
<PAGE>



                                     UNION BANK OF CALIFORNIA, N.A.

                                     By:      _____________________________
                                     Name:    Robert J. Cole
                                     Title:   Vice President





                                       9
<PAGE>


                                     U.S. BANK, NATIONAL
                                     ASSOCIATION, in its individual capacity
                                     as a Bank and as Documentation Agent

                                     By:      _____________________________
                                     Name:    Sandra Vollmer
                                     Title:   Senior Lender




                                       10
<PAGE>

                                     BANK OF MONTREAL


                                     By:      _____________________________
                                     Name:    Ian M. Plester
                                     Title:   Director




                                       11
<PAGE>



                                     THE BANK OF NOVA SCOTIA

                                     By:      _____________________________
                                     Name:    F.C.H. Ashby
                                     Title:   Senior Manager Loan Operations





                                       12
<PAGE>


                                     CIBC INC., as a Lender

                                     By:      _____________________________
                                     Name:    M. Sanjeeva Senanayake
                                     Title:   Executive Director
                                              CIBC World Markets Corp. As Agent



                                       13
<PAGE>


                                     COBANK, ACB


                                     By:      _____________________________
                                     Name:    Cathleen Reed
                                     Title:   Assistant Vice President



                                       14
<PAGE>




                                     WELLS FARGO BANK, N.A.


                                     By:      _____________________________
                                     Name:    Thomas M. Foncannon
                                     Title:   Senior Vice President





                                       15
<PAGE>



                                     MIZUHO CORPORATE BANK, LTD.


                                     By:      _____________________________
                                     Name:    Nobuyasu Fukatsu
                                     Title:   Senior Vice President





                                       16
<PAGE>



                                     NATIONAL CITY BANK OF
                                     MICHIGAN/ILLINOIS


                                     By:      _____________________________
                                     Name:    Mark R. Long
                                     Title:   Senior Vice President



                                       17
<PAGE>



                                     NORDEUTSCHE LANDESBANK
                                     GIROZENTRALE NEW YORK/
                                     CAYMAN ISLANDS BRANCH


                                     By:      _____________________________
                                     Name:    Stephanie Finnen
                                     Title:   Vice President

                                     By:      _____________________________
                                     Name:    Joseph Haas
                                     Title:   Vice President



                                       18
<PAGE>




                                     CHANG HWA BANK, LOS ANGELES
                                     BRANCH


                                     By:      _____________________________
                                     Name:    Jim Chen
                                     Title:   Vice President and General Manager



                                       19
<PAGE>


                      SCHEDULE 1 (3-Year Credit Agreement)

                                  PRICING GRID

<TABLE>
<CAPTION>
------------------ ------------------- ------------ ------------------- ------------------ --------------------
  If the Level      The Facility Fee       The       The L/C Fee Rate    The Eurodollar       The Base Rate
    Status Is           Rate is:       Utilization         is:             Margin is:          Margin is:
                                        Fee Rate
                                           is:
<S>                <C>                 <C>          <C>                 <C>                <C>
------------------ ------------------- ------------ ------------------- ------------------ --------------------
------------------ ------------------- ------------ ------------------- ------------------ --------------------
Level I Status     0.100%              0.100%       0.400%              0.400%                   0.000%
------------------ ------------------- ------------ ------------------- ------------------ --------------------
------------------ ------------------- ------------ ------------------- ------------------ --------------------
Level II Status    0.125%              0.125%       0.475%              0.475%                   0.000%
------------------ ------------------- ------------ ------------------- ------------------ --------------------
------------------ ------------------- ------------ ------------------- ------------------ --------------------
Level III Status   0.150%              0.150%       0.600%              0.600%                   0.000%
------------------ ------------------- ------------ ------------------- ------------------ --------------------
Level IV Status    0.175%              0.200%       0700%               0.700%                   0.000%
------------------ ------------------- ------------ ------------------- ------------------ --------------------
------------------ ------------------- ------------ ------------------- ------------------ --------------------
Level V Status     0.250%              0.250%       0.750%              0.750%                   0.000%
------------------ ------------------- ------------ ------------------- ------------------ --------------------
------------------ ------------------- ------------ ------------------- ------------------ --------------------
Level VI Status    0.6725%             0.500%       1.400%              1.400%                   0.400%
------------------ ------------------- ------------ ------------------- ------------------ --------------------
</TABLE>


         Each change in a rating shall be effective as of the date it is
announced by the applicable rating agency.

         In the event that the Moody's Rating and the S&P Rating fall in
consecutive Levels, the rating falling in the lower Level (with Level I being
the highest Level and Level VI being the lowest Level) shall govern for purposes
of determining the applicable pricing pursuant to the above pricing grid. In the
event that the Moody's Rating and the S&P Rating fall in non-consecutive Levels,
the Level immediately above the Level in which the lower rating falls (with
Level I being the highest Level and Level VI being the lowest Level) shall
govern for purposes of determining the applicable pricing pursuant to the above
pricing grid.


                                       20
<PAGE>


                      SCHEDULE 1 TO COMPLIANCE CERTIFICATE

                  Compliance Calculations for Credit Agreement

                       CALCULATION AS OF ________ __,200_

<TABLE>
<CAPTION>

------------------------------------------------------------------ --------------------- ---------------------------
A.       Liens (Sec. 7.9(c), (d), and (g))
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
<S>      <C>      <C>                                              <C>                   <C>

         1.       Liens securing taxes or assessments or other     _____________________ (Answer should be yes)
                  government charges or levies equal to or less
                  than $20,000,000 (Section 7.9(c))
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         2.       Liens securing judgments or awards or surety     _____________________ (Answer should be yes)
                  or appeal bonds issued in connection therewith
                  equal to or less than $20,000,000 (Section
                  7.9(d))
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         3.       Is the aggregate amount of Indebtedness and      _____________________ (Answer should be yes)
                  other obligations consisting of (i) the
                  deferred purchase price of newly acquired
                  property or incurred to finance the
                  acquisition of personal property of Borrower
                  used in the ordinary course of business of
                  such Borrower, (ii) Capitalized Lease
                  Obligations, and (iii) the performance of
                  tenders, statutory obligations, bids, leases
                  or other similar obligations (other than for
                  borrowed money) entered into in the ordinary
                  course of business or to secure obligations on
                  performance bonds which is secured by Liens
                  equal to or less than 5% of Consolidated
                  Assets as reflected on the most recent balance
                  sheet delivered by Borrower (Section 7.9(g)).
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
B.       Sale and Leasebacks (Section 7.11)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         1.       Aggregate obligations under all Sale and         $____________________ (Line B1 not to exceed
                  Leasebacks arrangements (other than synthetic                          $30,000,000)
                  lease transactions excluded by Section 7.11)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
C.       Sale of Assets (Section 7.12)
------------------------------------------------------------------ --------------------- ---------------------------

                                       21
<PAGE>

------------------------------------------------------------------ --------------------- ---------------------------
         1.       Net book value of assets (other than             $____________________ (Line C1 not to exceed
                  inventory, reserves and electricity in the                             10% of total consolidated
                  ordinary course of business) sold during this                          assets)
                  fiscal year
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
D.       Permitted Investments (Section 7.14)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         1.       Aggregate amount of Investments in Marketing     $____________________
                  Subsidiaries made after the Effective Date
                  (Section 7.14(o)(ii))
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         2.       Investments consisting of Guaranties of          $____________________
                  Indebtedness of Marketing Subsidiaries
                  existing on the Effective Date
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         3.       Intercompany loans permitted pursuant to         $____________________ Line E3
                  Section 7.15(e)(iii) owing by Marketing
                  Subsidiaries (Line E3)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         4.       Sum of Lines D1, D2 and D3                       $____________________
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         5.       Is Line D4 equal to or less than $10,000,000?    _____________________ (Answer should be yes)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         6.       Aggregate amount of Investments in Persons       $____________________ (Line D6 not to exceed
                  engaged in the lines of business described in                          $20,000,000)
                  clause (xii) of Section 7.8 (Section 7.14(k))
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
E.       Permitted Indebtedness (Section 7.15)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         1.       Secured Indebtedness except as set forth on      $____________________ (Line E1 not to exceed 5%
                  Schedule 7.15(b): (i) of BHP (ii) evidencing                           of Consolidated Assets)
                  the deferred purchase price of newly acquired property or
                  incurred to finance the acquisition of personal property of
                  Borrower or a Subsidiary used in the ordinary course of
                  business of the Borrower of a Subsidiary, (iii) constituting
                  Capitalized Lease Obligations or with respect to synthetic (or
                  similar type) lease transactions, or (iv) incurred in
                  connection with the performance of tenders, statutory
                  obligations, bids, leases or other similar obligations (other
                  than for borrowed money) entered into in the ordinary course
                  of business or to secure obligations on performance bonds
                  (Section 7.15(c))
------------------------------------------------------------------ --------------------- ---------------------------

                                       22
<PAGE>


------------------------------------------------------------------ --------------------- ---------------------------
         2.       Intercompany loans owing by Borrower (Section    $____________________ (Must be subordinated to
                  7.15(e)(i)(x))                                                         Obligations)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         3.       Intercompany Indebtedness owing by Marketing     $____________________ (Line E3 not to exceed
                  Subsidiaries to Subsidiaries (Section                                  the difference between
                  7.15(e)(iii))                                                          (i) $10,000,000 less (ii)
                                                                                         the sum of  Lines E4 and
                                                                                         D1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         4.       Indebtedness consisting of Guarantees            $____________________ (Line E4 not to exceed
                  (including Long-Term Guaranties) of Marketing                          the difference between
                  Subsidiary Indebtedness  (Section 7.15(f))                             (i) $10,000,000 less (ii)
                                                                                         the sum of Lines E3 and
                                                                                         D1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         5.       Indebtedness of Marketing Subsidiaries under     $____________________ (Line E5 not to exceed
                  Marketing Subsidiary Excluded Credit                                   Marketing Subsidiary
                  Facilities (Section 7.15(g))                                           Indebtedness Limit)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
F.       Consolidated Net Worth (Section 7.16)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         1.       Consolidated Net Worth                           $____________________
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         2.       50% of aggregate Consolidated Net Income, if     $____________________
                  positive, from and including April 1, 2002
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         3.       Does Line F1 exceed sum of (i) $425,000,000      _____________________ (Answer should be yes)
                  plus (ii) line F2
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
G.       Recourse Leverage Ratio (Section 7.17)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         1.       consolidated Indebtedness                        $____________________
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         2.       Non-Recourse Indebtedness                        $____________________
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         3.       Recourse Indebtedness (Line G1 minus Line G2)    $____________________
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         4.       Indebtedness of Marketing Subsidiaries under     $____________________ (Not to exceed Marketing
                  Marketing Subsidiary Excluded Credit                                   Subsidiary Indebtedness
                  Facilities (Line E5)                                                   Limit)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         5.       Consolidated Net Worth                           $____________________
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         6.       Capital (Line G3 minus Line G4 plus Line G5)     $____________________
------------------------------------------------------------------ --------------------- ---------------------------

                                       23
<PAGE>

------------------------------------------------------------------ --------------------- ---------------------------
         7.       Recourse Leverage Ratio                          _________:1.00        (ratio of (A) difference
                                                                                          between (x) Line G3 minus
                                                                                         (y) Line G4 to (B) Line
                                                                                         G6 not to exceed 0.65 to
                                                                                         1.00)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
H.       Fixed Charge Coverage Ratio (Section 7.18)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         1.       Consolidated Net Income for past four fiscal     $____________________
                  quarters
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         2.       Income taxes for past four fiscal quarters (to   $____________________
                  the extent subtracted in calculating H1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         3.       Consolidated Interest Expense for past four      $____________________ Insert amount from Line
                  fiscal quarters (to the extent subtracted in                           H18
                  calculating H1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         4.       Amortization expense for intangible assets       $____________________
                  for past four fiscal quarters (to the extent
                  subtracted in calculating H1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         5.       Depreciation expense for past four fiscal
                  quarters (to the extent subtracted in
                  calculating H1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         6.       Losses on sales of assets (excluding sales in    $____________________
                  the ordinary course of business) and other
                  extraordinary losses for past four fiscal
                  quarters (to the extent subtracted in
                  calculating H1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         7.       Interest income for past four fiscal             $____________________
                  quarters arising from traditional
                  investment activities with banks,
                  investment banks and other financial
                  institutions or relating to
                  governmental or other marketable
                  securities (to the extent added in
                  calculating H1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         8.       Gains on sales of assets (excluding sales in     $____________________
                  the ordinary course of business) and other
                  extraordinary gains for past four fiscal
                  quarters (to the extent added in calculating
                  H1)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         9.       Capital Expenditures for past four fiscal        $____________________
                  quarters
------------------------------------------------------------------ --------------------- ---------------------------

                                       24
<PAGE>

------------------------------------------------------------------ --------------------- ---------------------------
         10.      Without duplication, any payments made by a
                  Consolidated Subsidiary constituting a
                  repayment of principal Indebtedness (other
                  than (x) the Obligations and (y) repayments of
                  principal made with the proceeds of a            $____________________
                  refinancing of such Indebtedness otherwise
                  permitted pursuant to this Agreement) or with
                  respect to a reserve, and
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         11.      Without duplication, any other mandatory
                  payment made by a Consolidated Subsidiary in
                  such period not included as an expense or loss   $____________________
                  in calculating Consolidated Net Income
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         12.      Consolidated EBITDA (sum of Lines H1, H2, H3,    $____________________
                  H4, H5 and H6 less sum of Lines H7, H8, H9,
                  H10 and H11)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         13.      Restricted Earnings for the past four fiscal     $____________________
                  quarters
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         14.      Adjusted Consolidated EBITDA (Line H12 minus     $____________________
                  Line H13)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         15.      All interest charges (including capitalized      $____________________
                  interest, imputed interest charges with
                  respect to Capitalized Lease Obligations  and
                  all amortization of debt discount and expense
                  and other deferred financing charges) of the
                  Borrower and its Subsidiaries on a
                  consolidated basis for such period determined
                  in accordance with GAAP, other than interest
                  charges relating to Non-Recourse Indebtedness
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         16.      All commitment or other fees payable in          $____________________
                  respect of the issuance of standby letters of
                  credit or other credit facilities for the
                  account of the Borrower or its Subsidiaries
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         17.      Net costs/expenses incurred by the Borrower      $____________________
                  and its Subsidiaries under Derivative
                  Arrangements
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         18.      Consolidated Interest Expense (Sum of Lines      $____________________
                  H15, H16 and H17)
------------------------------------------------------------------ --------------------- ---------------------------

                                       25
<PAGE>


------------------------------------------------------------------ --------------------- ---------------------------
         19.      The aggregate amount of all mandatory            $____________________
                  scheduled payments (whether designated as
                  payments or prepayments) and scheduled sinking
                  fund payments with respect to principal of any
                  Recourse Indebtedness of the Borrower or its
                  Subsidiaries (including payments in the nature
                  of principal under Capital Leases) for the
                  last 4 quarters
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         20.      Consolidated Fixed Charges (Sum of Lines H18     $____________________
                  and H19)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         21.      Fixed Charge Coverage Ratio (ratio of Lines      ________:1.00        (ratio must not be less
                  H14 to (ii) Line H20)                                                  than 1.50 to 1.00)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
I.       Liquidity Covenant (Section 7.26)
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         1.       Unrestricted cash at Borrower                    $____________________
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         2.       Unused availability of senior unsecured credit   $____________________
                  facilities available to Borrower
------------------------------------------------------------------ --------------------- ---------------------------
------------------------------------------------------------------ --------------------- ---------------------------
         3.       Liquid Assets (Line I1 plus Line I2)             $____________________ (amount must exceed
                                                                                         $30,000,000)
------------------------------------------------------------------ --------------------- ---------------------------

</TABLE>

                                       26
<PAGE>

</TEXT>
</DOCUMENT>
