Document:

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                                                                  EXHIBIT 10.2.7

                        ASSIGNMENT AND SECURITY AGREEMENT

     THIS ASSIGNMENT AND SECURITY AGREEMENT (this "Assignment Agreement"),
dated as of March 8, 2002, made by CALPINE CORPORATION, a Delaware corporation
(the "Grantor"), in favor of THE BANK OF NOVA SCOTIA, as administrative agent
(together with any successors thereto in such capacity, the "Agent") for each
of the Lender Parties (as defined below).

                              W I T N E S S E T H:

     WHEREAS, pursuant to that certain Credit Agreement, dated as of even date
herewith (together with all amendments and other modifications, if any, from
time to time thereafter made thereto, the "Credit Agreement"), among Grantor,
the various commercial lending institutions (individually a "Lender" and
collectively the "Lenders") as are, or may from time to time become, parties
thereto and the Agent, the Lenders have extended Commitments to the Grantor; and

     WHEREAS, as a condition precedent to the effectiveness of the Credit
Agreement, the Grantor is required to execute and deliver this Assignment
Agreement; and

     WHEREAS, the Grantor has duly authorized the execution, delivery and
performance of this Assignment Agreement; and

     NOW THEREFORE, for good and valuable consideration the receipt and
sufficiency of which are hereby acknowledged, and in order to induce the
Lenders to make Loans (including the initial Loans) to the Grantor and issue
Letters of Credit for the account of the Grantor pursuant to the Credit
Agreement, the Grantor agrees, for the benefit of each Lender Party, as
follows:

                                   ARTICLE I

                                  DEFINITIONS

     SECTION 1.1. Certain Terms. The following terms (whether or not
underscored) when used in this Assignment Agreement, including its preamble and
recitals, shall have the following meanings (such definitions to be equally
applicable to the singular and plural forms thereof):

     "Agent" is defined in the preamble.

     "Assigned Agreement" is defined in Section 2.1.

     "Assignment Agreement" is defined in the preamble.

     "Calpine Gilroy" means Calpine Gilroy Cogen L.P., a Delaware limited
partnership.

     "Collateral" is defined in Section 2.1.

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     "Credit Agreement" is defined in the first recital.

     "Grantor" is defined in the preamble.

     "Lender" is defined in the first recital.

     "Lender Party" means, as the context may require, any Lender or the Agent
and each of its respective successors, transferees and assigns.

     "Lenders" is defined in the first recital.

     "Secured Obligations" is defined in the Section 2.2.

     "U.C.C." means the Uniform Commercial Code, as in effect in the State of
Delaware.

     SECTION 1.2. Credit Agreement Definitions. Unless otherwise defined
herein or the context otherwise requires, terms used in this Assignment
Agreement, including its preamble and recitals, have the meanings provided in
the Credit Agreement.

     SECTION 1.3. U.C.C. Definitions. Unless otherwise defined herein or the
context otherwise requires, terms for which meanings are provided in the U.C.C.
are used in this Assignment Agreement, including its preamble and recitals,
with such meanings.

                                   ARTICLE II

                                ASSIGNMENT, ETC.

     SECTION 2.1. Assignment. The Grantor hereby collaterally assigns to the
Agent for its benefit and the ratable benefit of each of the Lender Parties,
and hereby grants to the Agent for its benefit and the ratable benefit of each
of the Lender Parties a security interest in, all of the Grantor's right, title
and interest, whether now existing or hereafter arising or acquired, in and to
the following (the "Collateral"): Purchase Agreement, between Calpine
Corporation and Calpine Gilroy Cogen L.P., a Delaware limited partnership,
dated as of March 8, 2002, as it may be amended or otherwise modified from time
to time (as so amended or modified, the "Assigned Agreement"), including,
without limitation,

          (a)   all rights of the Grantor to receive moneys due and to become
     due under or pursuant to the Assigned Agreement,

          (b)   all rights of the Grantor to receive proceeds of any insurance,
     indemnity, warranty, guaranty or collateral security with respect to the
     Assigned Agreement,

          (c)   all claims of the Grantor for damages arising out of or for
     breach of or default under the Assigned Agreement,

          (d)   the right of the Grantor to terminate the Assigned Agreement,
     to perform thereunder and to compel performance and otherwise exercise all
     remedies thereunder, and

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          (e)   to the extent not included in the foregoing, all proceeds of
     any and all of the foregoing collateral.

     SECTION 2.2. Security for Obligations. This Assignment Agreement secures
the payment of all obligations of the Grantor now or hereafter existing under
the Credit Agreement, the Notes and each other Loan Document to which the
Grantor is or may become a party, whether for principal, interest, costs, fees,
expenses or otherwise, and all obligations of the Grantor now or hereafter
existing under this Assignment Agreement and each other Loan Document to which
it is or may become a party (all such obligations of the Grantor being the
"Secured Obligations").

     SECTION 2.3. Continuing Assignment and Security Interest; Transfer of
Notes. This Assignment Agreement shall create a continuing security interest in
the Collateral and shall

          (a)   remain in full force and effect until payment in full of all
     Secured Obligations and the termination of all Commitments,

          (b)   be binding upon the Grantor, its successors, transferees and
     assigns, and

          (c)   inure, together with the rights and remedies of the Agent
     hereunder, to the benefit of the Agent and each other Lender Party.

Without limiting the generality of the foregoing clause (c), any Lender may
assign or otherwise transfer (in whole or in part) any Note or Loan held by it
to any other Person or entity, and such other Person or entity shall thereupon
become vested with all the rights and benefits in respect thereof granted to
such Lender under any Loan Document (including this Assignment Agreement) or
otherwise, subject, however, to any contrary provisions in such assignment or
transfer, and to the provisions of Section 11.11 of the Credit Agreement. Upon
the payment in full of all Secured Obligations and the termination of all
Commitments, the security interest granted herein shall terminate and all
rights to the Collateral shall revert to the Grantor. Upon any such
termination, the Agent will, at the Grantor's sole expense, execute and deliver
to the Grantor such documentation as the Grantor shall reasonably request to
evidence such termination.

     SECTION 2.4. Grantor Remains Liable. Anything herein to the contrary
notwithstanding

          (a)   the Grantor shall remain liable under the contracts and
     agreements included in the Collateral to the extent set forth therein, and
     shall perform all of its duties and obligations under such contracts and
     agreements to the same extent as if this Assignment Agreement had not been
     executed,

          (b)   the exercise by the Agent of any of its rights hereunder shall
     not release the Grantor from any of its duties or obligations under any
     such contracts or agreements included in the Collateral, and

          (c)   neither the Agent nor any other Lender Party shall have any
     obligation or liability under any such contracts or agreements included in
     the Collateral by reason of

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     this Assignment Agreement or by the exercise by any Lender Party of its
     rights hereunder or under any other Loan Document, nor shall the Agent or
     any other Lender Party be obligated to perform any of the obligations or
     duties of the Grantor thereunder or to take any action to collect or
     enforce any claim for payment assigned hereunder.

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

     SECTION 3.1. Representations and Warranties. The Grantor represents and
warrants unto each Lender Party as set forth in this Article.

     SECTION 3.1.1. Due Authorization, Non-Contravention, etc. The execution,
delivery and performance by the Grantor of this Assignment Agreement, is within
the Grantor's powers, has been duly authorized by all necessary corporate
action, and does not

          (a)   contravene the Grantor's Organic Documents;

          (b)   contravene any contractual restriction (including, without
     limitation, the Assigned Agreement), law or governmental regulation or
     court decree or order binding on or affecting the Grantor; or

          (c)   except for the Lien created hereunder, result in, or require
     the creation or imposition of, any Lien on any of the Grantor's
     properties.

     SECTION 3.1.2. Validity of Assigned Agreement. The Assigned Agreement, a
true and complete copy of which has been furnished to the Agent, has been duly
authorized, executed and delivered by the parties thereto, has not been amended
or otherwise modified and is in full force and effect and is binding upon and
enforceable against the parties thereto in accordance with its terms. The
Grantor has fully performed all of its obligations under the Assigned Agreement
and, to the best of the Grantor's knowledge, Calpine Gilroy has no defense,
setoff or counterclaim arising under the Assigned Agreement. There exists no
default under the Assigned Agreement by the Grantor and, to the best of the
Grantor's knowledge, by Calpine Gilroy.

     SECTION 3.1.3. Location of Collateral, etc. The place of business and
chief executive office of the Grantor and the office where the Grantor keeps
its records concerning the Collateral is the address specified for the Grantor
on the signature page hereto. The Grantor has no trade name. The Grantor has
not been known by any legal name difference from the one set forth on the
signature page hereto, nor has the Grantor been the subject of any merger or
other corporate reorganization. None of the Collateral is evidenced by a
promissory note or other instrument.

     SECTION 3.1.4. Ownership, No Liens, etc. The Grantor owns the Collateral
free and clear of any Lien, security interest, charge or encumbrance except for
the security interest created by this Assignment Agreement. No effective
financing statement or other instrument similar in effect covering all or any
part of the Collateral is on file in any recording office, except such as may
have been filed in favor of the Agent relating to this Assignment Agreement.

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     SECTION 3.1.5. Validity, etc. This Assignment Agreement creates a valid
and, upon filing of a proper financing statement with the Delaware Secretary of
State, first priority security interest in the Collateral, securing the payment
of the Secured Obligations, and, upon the filing of such financing statement,
all filings and other actions necessary or desirable to perfect and protect
such security interest will have been duly taken.

     SECTION 3.1.6. Authorization, Approval, etc. No authorization, approval or
other action by, and no notice to or filing with, any governmental authority or
regulatory body is required either

          (a)   for the grant by the Grantor of the security interest granted
     hereby or for the execution, delivery and performance of this Assignment
     Agreement by the Grantor, or

          (b)   for the perfection of or the exercise by the Agent of its
     rights and remedies hereunder.

     SECTION 3.1.7. Compliance with Laws. The Grantor is in compliance with the
requirements of all applicable laws, rules, regulations and orders of every
governmental authority, the non-compliance with which might materially
adversely affect the business, properties, assets, operations, condition
(financial or otherwise) or prospects of the Grantor or the value of the
Collateral or the worth of the Collateral as collateral security.

                                   ARTICLE IV

                                   COVENANTS

     SECTION 4.1. Certain Covenants. The Grantor covenants and agrees that, so
long as any portion of the Secured Obligations shall remain unpaid or any
Lender shall have any outstanding Commitment, the Grantor will, unless the
Required Lenders shall otherwise consent in writing, perform the obligations
set forth in this Section.

     SECTION 4.1.1. As to Assigned Agreement. The Grantor, at its expense,
shall or shall cause Calpine Gilroy, as applicable, to:

          (a)   perform and observe all the terms and provisions of the
     Assigned Agreement to be performed or observed by Grantor or Calpine
     Gilroy, maintain the Assigned Agreement in full force and effect, enforce
     the Assigned Agreement in accordance with its terms, and take all such
     action to such end as may be from time to time requested by the Agent; and

          (b)   furnish to the Agent promptly upon receipt thereof copies of
     all material notices, requests and other documents received by the Grantor
     or Calpine Gilroy under or pursuant to the Assigned Agreement, and from
     time to time (i) furnish to the Agent such information and reports
     regarding the Collateral as the Agent may reasonably request and (ii) upon
     request of the Agent make to Calpine Gilroy such demands and requests for
     information and reports or for action as the Grantor is entitled to make
     under the Assigned Agreement.

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     SECTION 4.1.2.Transfers and Other Liens. The Grantor shall not and shall
cause Calpine Gilroy not to:

          (a)   sell, assign (by operation of law or otherwise) or otherwise
     dispose of any of the Collateral, or create or suffer to exist any Lien,
     security interest or other charge or encumbrance upon or with respect to
     any of the Collateral to secure Indebtedness of any Person or entity,
     except for the assignment and security interest created by this Assignment
     Agreement;

          (b)   cancel or terminate the Assigned Agreement or consent to or
     accept any cancellation or termination thereof;

          (c)   amend or otherwise modify the Assigned Agreement or give any
     consent, waiver or approval thereunder without the consent of the Required
     Lenders, such consent by the Required Lenders not to be unreasonably
     withheld;

          (d)   waive any default under or breach of the Assigned
     Agreement without the consent of the Required Lenders, such consent by the
     Required Lenders not to be unreasonably withheld; or

          (e)   take any other action in connection with the Assigned Agreement
     which would impair the value of the interest or rights of the Grantor
     thereunder or which would impair the interest or rights of the Agent.

     SECTION 4.1.3. Further Assurances, etc. The Grantor agrees that, from time
to time, at the expense of the Grantor, the Grantor will and will cause Calpine
Gilroy to promptly execute and deliver all further instruments and documents,
and take all further action, that may be necessary or desirable, or that the
Agent may reasonably request, in order to perfect, preserve and protect any
security interest granted or purported to be granted hereby or to enable the
Agent to exercise and enforce its rights and remedies hereunder with respect to
any Collateral. Without limiting the generality of the foregoing, the Grantor
will and will cause Calpine Gilroy to

          (a)   if any Collateral shall be evidenced by a promissory note or
     other instrument, negotiable document or chattel paper, deliver and pledge
     to the Agent hereunder such promissory note or instrument, negotiable
     document or chattel paper duly indorsed and accompanied by duly executed
     instruments of transfer or assignment, all in form and substance
     reasonably satisfactory to the Agent; and

          (b)   execute and file such financing or continuation statements, or
     amendments thereto, and such other instruments or notices, as may be
     necessary or desirable, or as the Agent may reasonably request, in order
     to perfect and preserve the security interests and other rights granted or
     purported to be granted to the Agent hereby.

With respect to the foregoing and the grant of the security interest hereunder,
the Grantor hereby authorizes the Agent to file one or more financing or
continuation statements, and amendments thereto, relative to all or any part of
the Collateral without the signature of the Grantor where permitted by law. A
carbon, photographic or other reproduction of this Assignment Agreement

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or any financing statement covering the Collateral or any part thereof shall be
sufficient as a financing statement where permitted by law.

     SECTION 4.1.4. Maintain its Existence. The Grantor shall keep its state of
incorporation in the state of Delaware.

                                   ARTICLE V

                                   THE AGENT

     SECTION 5.1. Agent Appointed Attorney-in-Fact. Grantor hereby irrevocably
appoints the Agent the Grantor's attorney-in-fact, with full authority in the
place and stead of the Grantor and in the name of the Grantor or otherwise,
from time to time in the Agent's discretion, but only after the occurrence and
during the continuance of an Event of Default, to take any action (including
any action under the Assigned Agreement that the Grantor is entitled to take)
and to execute any instrument which the Agent may deem necessary or advisable
to accomplish the purposes of this Assignment Agreement, including, without
limitation:

          (a)   to ask, demand, collect, sue for, recover, compromise, receive
     and give acquittance and receipts for moneys due and to become due under
     or in respect of any of the Collateral;

          (b)   to receive, endorse, and collect any drafts or other
     instruments, documents and chattel paper, in connection with clause (a)
     above;

          (c)   to file any claims or take any action or institute any
     proceedings which the Agent may deem necessary or desirable for the
     collection thereof or to enforce compliance with the terms and conditions
     of the Assigned Agreement; and

          (d)   to perform the affirmative obligations of the Grantor hereunder
     (including all obligations of the Grantor pursuant to Section 4.1.1 and
     Section 4.1.3).

The Grantor hereby acknowledges, consents and agrees that the power of attorney
granted pursuant to this Section is irrevocable and coupled with an interest.

     SECTION 5.2. Agent May Perform. If the Grantor fails to perform any
agreement contained herein, the Agent may itself perform, or cause performance
of, such agreement, and the expenses of the Agent incurred in connection
therewith shall be payable by the Grantor pursuant to Section 6.2.

     SECTION 5.3. Agent Has No Duty. In addition to, and not in limitation of,
Section 2.4, the powers conferred on the Agent hereunder are solely to protect
its interest (on behalf of the Lender Parties) in the Collateral and shall not
impose any duty on it to exercise any such powers. Except for reasonable care
of any Collateral in its possession and the accounting for moneys actually
received by it hereunder, the Agent shall have no duty as to any Collateral or
as to the taking of any necessary steps to preserve rights against prior
parties or any other rights pertaining to any Collateral.

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     SECTION 5.4. Reasonable Care. The Agent is required to exercise reasonable
care in the custody and preservation of any of the Collateral in its
possession; provided, however, the Agent shall be deemed to have exercised
reasonable care in the custody and preservation of any of the Collateral, if it
takes such action for that purpose as the Grantor reasonably requests in
writing at times other than upon the occurrence and during the continuance of
any Event of Default, but failure of the Agent to comply with any such request
at any time shall not in itself be deemed a failure to exercise reasonable
care.

                                   ARTICLE VI

                                    REMEDIES

     SECTION 6.1. Certain Remedies. If any Event of Default shall have occurred
and be continuing:

          (a)   The Agent may exercise in respect of the Collateral, in
     addition to other rights and remedies provided for herein or otherwise
     available to it, all the rights and remedies of a secured party on default
     under the U.C.C. (whether or not the U.C.C. applies to the affected
     Collateral) and also may exercise any and all rights and remedies of the
     Grantor under or in connection with the Assigned Agreement or otherwise in
     respect of the Collateral, including, without limitation, any and all
     rights of the Grantor to demand or otherwise require payment of any amount
     under, or performance of any provision of, the Assigned Agreement;

          (b)   all payments received by the Grantor under or in connection
     with the Assigned Agreement or otherwise in respect of the Collateral
     shall be received in trust for the benefit of the Agent, shall be
     segregated from other funds of the Grantor and shall be forthwith paid
     over to the Agent in the same form as so received (with any necessary
     indorsement); and

          (c)   all payments made under or in connection with the Assigned
     Agreement or otherwise in respect of the Collateral and received by the
     Agent may, in the discretion of the Agent, be held by the Agent as
     collateral for, and/or then or at any time thereafter applied (after
     payment of any amounts payable to the Agent pursuant to Section 6.2) in
     whole or in part by the Agent for the ratable benefit of the Lender
     Parties against, all or any part of the Secured Obligations in such order
     as the Agent shall elect. Any surplus of such payments held by the Agent
     and remaining after payment in full of all the Secured Obligations shall
     be paid over to the Grantor or to whomsoever may be lawfully entitled to
     receive such surplus.

     SECTION 6.2. Indemnity and Expenses.

          (a)   The Grantor agrees to indemnify the Agent from and against any
     and all claims, losses and liabilities arising out of or resulting from
     this Assignment Agreement (including, without limitation, enforcement of
     this Assignment Agreement), except claims, losses or liabilities resulting
     from the Agent's or any Lender Party's gross negligence or wilful
     misconduct.

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          (b)   The Grantor will upon demand pay to the Agent the amount of any
     and all reasonable fees and expenses of its counsel and of any experts and
     agents, which the Agent may incur in connection with (i) the
     administration of this Assignment Agreement, (ii) the custody or
     preservation of, or the collection from, or other realization upon, any of
     the Collateral, (iii) the exercise or enforcement of any of the rights of
     the Agent or the Lender Parties hereunder, or (iv) the failure by the
     Grantor to perform or observe any of the provisions hereof.

                                  ARTICLE VII

                            MISCELLANEOUS PROVISIONS

     SECTION 7.1. Loan Document. This Assignment Agreement is a Loan Document
executed pursuant to the Credit Agreement and shall (unless otherwise expressly
indicated herein) be construed, administered and applied in accordance with the
terms and provisions thereof.

     SECTION 7.2. Amendments; etc. No amendment to or waiver of any provision
of this Assignment Agreement nor consent to any departure by the Grantor
herefrom, shall in any event be effective unless the same shall be in writing
and signed by the Agent, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given.

     SECTION 7.3. Addresses for Notices. All notices and other communications
provided for hereunder shall be in writing (including telefacsimile) and, if to
the Grantor, mailed or telecopied or delivered to it, addressed to it at the
address set forth below its signature hereto, if to the Agent, mailed or
delivered to it, addressed to it at the address of the Agent, telecopied
specified in the Credit Agreement, or as to either party at such other address
as shall be designated by such party in a written notice to each other party
complying as to delivery with the terms of this Section. All such notices and
other communications shall, when mailed or telecopied, respectively, be
effective when deposited in the mails or telecopied, respectively, addressed as
aforesaid.

     SECTION 7.4. Section Captions. Section captions used in this Assignment
Agreement are for convenience of reference only, and shall not affect the
construction of this Assignment Agreement.

     SECTION 7.5. Severability. Wherever possible each provision of this
Assignment Agreement shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Assignment Agreement
shall be prohibited by or invalid under such law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Assignment Agreement.

     SECTION 7.6. Governing Law, Entire Agreement, etc. THIS ASSIGNMENT
AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL

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LAWS OF THE STATE OF NEW YORK. This Assignment Agreement constitutes the entire
understanding among the parties hereto with respect to the subject matter
hereof and supersede any prior agreements, written or oral, with respect
thereto.

                                      10

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     IN WITNESS WHEREOF, the Grantor has caused this Assignment Agreement to be
duly executed and delivered by its officer thereunto duly authorized as of the
date first above written.

                                  CALPINE CORPORATION,
                                  a Delaware corporation

                                  By:__________________________________________
                                  Title:

                                  Address:

                                  Attention:

                                  Telecopier:

                                  THE BANK OF NOVA SCOTIA

                                  By:__________________________________________
                                  Title:

                                  Address:       580 California Street
                                                 San Francisco, CA  94111

                                  Attention: Jon Burckin

                                  Telecopier: 415-397-0791

                                      11<PAGE>
                                                                  EXHIBIT 10.2.8

                                PLEDGE AGREEMENT

     THIS PLEDGE AGREEMENT (this "Pledge Agreement"), dated as of March 8,
2002, made by Calpine Corporation, a Delaware corporation (the "Borrower"), in
favor of The Bank of Nova Scotia, as agent (together with any successor(s)
thereto in such capacity, the "Agent") for each of the Lender Parties (as
defined below).

                              W I T N E S S E T H:

     WHEREAS, pursuant to that certain Credit Agreement, dated as of March 8,
2002 (together with all amendments and other modifications, if any, from time
to time thereafter made thereto, the "2002 Credit Agreement"), among the
Borrower, the various financial institutions as are or may become parties
hereto (collectively, the "2002 Lenders"), The Bank of Nova Scotia and
Bayerische Landesbank Girozentrale, as Lead Arrangers and Bookrunners on the
Revolving Facility, Salomon Smith Barney Inc. and Deutsche Banc Alex. Brown
Inc., as Lead Arrangers and Bookrunners on the Term B Facility, The Bank of
Nova Scotia, as Joint Administrative Agent and Funding Agent, Citicorp USA,
Inc., as Joint Administrative Agent, Bank of America, National Association and
Credit Suisse First Boston, Cayman Islands Branch as Lead Arrangers and
Syndication Agents for the Revolving Facility and TD Securities (USA) Inc. as
Lead Arranger for the Revolving Facility, the Lenders have extended Commitments
to make Loans and to issue Letters of Credit to the Borrower; and

     WHEREAS, pursuant to that certain Second Amended and Restated Credit
Agreement, dated as of May 23, 2000 (together with all amendments and other
modifications, if any, from time to time made thereto, the "2000 Credit
Agreement" and together with the 2002 Credit Agreement, the "Credit
Agreements"), among the Borrower, the various financial institutions as are or
may become parties thereto (collectively, the "2000 Lenders" and together with
the 2002 Lenders, the "Lenders"), Bayerische Landesbank Girozentrale as
co-arranger and syndication agent for the 2000 Lenders and The Bank of Nova
Scotia as lead arranger and administrative agent for the 2000 Lenders; and

     WHEREAS, as a condition precedent to the making of the initial Loans under
the 2002 Credit Agreement and to continue making loans under the 2000 Credit
Agreement, the Borrower is required to execute and deliver this Pledge
Agreement; and

     WHEREAS, the Borrower has duly authorized the execution, delivery and
performance of this Pledge Agreement; and

     WHEREAS, it is in the best interests of the Borrower to execute this
Pledge Agreement inasmuch as the Borrower will derive substantial direct and
indirect benefits from the Loans made and Letters of Credit issued from time to
time to the Borrower by the Lenders pursuant to the Credit Agreements;

     NOW THEREFORE, for good and valuable consideration the receipt of which is
hereby acknowledged, and in order to induce the Lenders to make Loans
(including the initial Loans) and to issue Letters of Credit for the account of
the Borrower pursuant to the Credit Agreements, the Borrower agrees, for the
benefit of each Lender Party, as follows:
<PAGE>
                                  ARTICLE I
                                 DEFINITIONS

     SECTION 1.1.   Certain Terms. The following terms (whether or not
underscored) when used in this Pledge Agreement, including its preamble and
recitals, shall have the following meanings (such definitions to be equally
applicable to the singular and plural forms thereof):

     "Agent" is defined in the preamble.

     "Borrower" is defined in the preamble.

     "Collateral" is defined in Section 2.1.

     "Credit Agreements" is defined in the second recital.

     "Distributions" means all stock dividends, liquidating dividends, shares
of stock resulting from (or in connection with the exercise of) stock splits,
reclassifications, warrants, options, non-cash dividends, mergers,
consolidations, and all other distributions (whether similar or dissimilar to
the foregoing) on or with respect to any Pledged Shares or other shares of
capital stock constituting Collateral, but shall not include Dividends.

     "Dividends" means cash dividends and cash distributions with respect to
any Pledged Shares or other Pledged Property made in the ordinary course of
business and not a liquidating dividend.

     "Lender Party" means, as the context may require, any Lender, Issuer or
the Agent and each of its respective successors, transferees and assigns under
either of the Credit Agreements.

     "Lenders" is defined in the second recital.

     "Pledge Agreement" is defined in the preamble.

     "Pledged Property" means all Pledged Shares and all other pledged shares
of capital stock, all other securities, all assignments of any amounts due or
to become due, all other instruments which are now being delivered by the
Borrower to the Agent or may from time to time hereafter be delivered by the
Borrower to the Agent for the purpose of pledge under this Pledge Agreement or
any other Loan Document, and all proceeds of any of the foregoing.

     "Pledged Share Issuer" means each Person identified in Attachment 1 hereto
as the issuer of the Pledged Shares identified opposite the name of such Person.

     "Pledged Shares" means all shares of capital stock of any Pledged Share
Issuer which are delivered by the Borrower to the Agent as Pledged Property
hereunder.

     "Secured Obligations" is defined in Section 2.2.

     "Securities Act" is defined in Section 6.2.

     "U.C.C." means the Uniform Commercial Code as in effect in the State of
New York.

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     SECTION 1.2.   Definitions. Unless otherwise defined herein or the
context otherwise requires, terms used in this Pledge Agreement, including its
preamble and recitals, have the meanings provided in the Credit Agreements.

     SECTION 1.3.   U.C.C. Definitions. Unless otherwise defined herein or
the context otherwise requires, terms for which meanings are provided in the
U.C.C. are used in this Pledge Agreement, including its preamble and recitals,
with such meanings.

                                  ARTICLE II
                                    PLEDGE

     SECTION 2.1.   Grant of Security Interest. The Borrower hereby pledges,
hypothecates, assigns, charges, mortgages, delivers, and transfers to the
Agent, for its benefit and the ratable benefit of each of the Lender Parties,
and hereby grants to the Agent, for its benefit and the ratable benefit of the
Lender Parties, a continuing security interest in, all of the following
property (the "Collateral"):

          (a)  all issued and outstanding shares of capital stock of each
     Pledged Share Issuer identified in Attachment 1 hereto;

          (b)  and the certificates representing the Pledged Shares and all
     dividends, cash, instruments and other property from time to time
     received, receivable or otherwise distributed in respect of or in exchange
     for any or all of the Pledged Shares;

          (c)  all additional shares of stock of any issuer of the Pledged
     Shares from time to time acquired by the Borrower in any manner, and the
     certificates representing such additional shares, and all dividends, cash,
     instruments and other property from time to time received, receivable or
     otherwise distributed in respect of or in exchange for any or all of such
     shares;

          (d)  all other Pledged Shares issued from time to time;

          (e)  all other Pledged Property, whether now or hereafter delivered
     to the Agent in connection with this Pledge Agreement;

          (f)  all Dividends, Distributions, interest, and other payments and
     rights with respect to any Pledged Property; and

          (g)  all proceeds of any of the foregoing.

     SECTION 2.2.   Security for Obligations. This Pledge Agreement secures the
payment and performance in full of all Obligations of the Borrower now or
hereafter existing under the Credit Agreements, the Notes, each Letter of
Credit and each other Loan Document to which the Borrower is or may become a
party, whether for principal, interest, costs, fees, expenses, or otherwise,
and all obligations of the Borrower now or hereafter existing under this Pledge
Agreement and each other Loan Document to which it is or may become a party
(all such obligations of the Borrower being the "Secured Obligations").

                                      3
<PAGE>
     SECTION 2.3.   Delivery of Pledged Property. All certificates or
instruments representing or evidencing any Collateral, including all Pledged
Shares, shall be delivered to and held by or on behalf of the Agent pursuant
hereto, shall be in suitable form for transfer by delivery, and shall be
accompanied by all necessary instruments of transfer or assignment, duly
executed in blank.

     SECTION 2.4.   Intentionally Omitted.

     SECTION 2.5.   Continuing Security Interest; Transfer of Note. This
Pledge Agreement shall create a continuing security interest in the Collateral
and subject to Section 8.1.9 of the Credit Agreement shall

          (a)  remain in full force and effect until payment in full of all
     Secured Obligations and the termination of all Commitments,

          (b)  be binding upon the Borrower and its successors, transferees and
     assigns, and

          (c)  inure, together with the rights and remedies of the Agent
     hereunder, to the benefit of the Agent and each other Lender Party.

Without limiting the foregoing clause (c), any Lender may assign or otherwise
transfer (in whole or in part) any right or obligation under the Loan Documents
to any other Person or entity, and such other Person or entity shall thereupon
become vested with all the rights and benefits in respect thereof granted to
such Lender under any Loan Document (including this Pledge Agreement) or
otherwise, subject, however, to any contrary provisions in such assignment or
transfer, and to the provisions of Section 11.11 of each of the Credit
Agreements. Upon the indefeasible payment in full, in cash, of all Secured
Obligations and the termination of all Commitments, the security interest
granted herein shall terminate and all rights to the Collateral shall revert to
the Borrower. Upon any such termination, the Agent will, at the Borrower's sole
expense, deliver to the Borrower, without any representations, warranties or
recourse of any kind whatsoever, all certificates and instruments representing
or evidencing all Pledged Shares, together with all other Collateral held by
the Agent hereunder, and execute and deliver to the Borrower such documents as
the Borrower shall reasonably request to evidence such termination.

     SECTION 2.6.   Security Interest Absolute. All rights of the Agent and
the security interests granted to the Agent hereunder, and all obligations of
the Borrower hereunder, shall be absolute and unconditional, irrespective of

          (a)  any lack of validity or enforceability of either of the Credit
     Agreements, any Note or any other Loan Document,

          (b)  the failure of any Lender Party or any holder of any Note

               (i)    to assert any claim or demand or to enforce any right or
          remedy against the Borrower, any other Obligor or any other Person
          under the provisions

                                      4
<PAGE>
          of either of the Credit Agreements, any Note, any other Loan Document
          or otherwise, or

               (ii)   to exercise any right or remedy against any other
          guarantor of, or collateral securing, any Obligations of the Borrower
          or any other Obligor,

          (c)  any change in the time, manner or place of payment of, or in any
     other term of, all or any of the Obligations or any other extension,
     compromise or renewal of any Obligation of the Borrower or any other
     Obligor,

          (d)  any reduction, limitation, impairment or termination of any
     Obligations of the Borrower or any other Obligor for any reason, including
     any claim of waiver, release, surrender, alteration or compromise, and
     shall not be subject to (and the Borrower hereby waives any right to or
     claim of) any defense or setoff, counterclaim, recoupment or termination
     whatsoever by reason of the invalidity, illegality, nongenuineness,
     irregularity, compromise, unenforceability of, or any other event or
     occurrence affecting, any Obligations of the Borrower, any other Obligor
     or otherwise,

          (e)  any amendment to, rescission, waiver, or other modification of,
     or any consent to departure from, any of the terms of either of the Credit
     Agreements, any Note or any other Loan Document,

          (f)  any addition, exchange, release, surrender or non-perfection of
     any collateral (including the Collateral), or any amendment to or waiver
     or release of or addition to or consent to departure from any guaranty,
     for any of the Obligations, or

          (g)  any other circumstances which might otherwise constitute a
     defense available to, or a legal or equitable discharge of, the Borrower,
     any other Obligor, any surety or any guarantor.

     SECTION 2.7.   Subrogation, etc. The Borrower will not exercise any rights
which it may acquire by reason of any payment made hereunder, whether by way of
subrogation, reimbursement or otherwise until the prior indefeasible payment in
full, in cash, of all Obligations of the Borrower and each other Obligor. Any
amount paid to the Borrower on account of any payment made hereunder prior to
the payment in full of all Obligations of the Borrower and each other Obligor
shall be held in trust for the benefit of the Lender Parties and each holder of
a Note and shall immediately be paid to the Lender Parties and each holder of a
Note and credited and applied against the Obligations of the Borrower and each
other Obligor, whether matured or unmatured, in accordance with the terms of
the Credit Agreements; provided, however, that if

          (a)  the Borrower has made payment to the Lender Parties and each
     holder of a Note of all or any part of the Obligations of the Borrower or
     any other Obligor, and

          (b)  all Obligations of the Borrower and each other Obligor have been
     indefeasibly paid in full, in cash, and all Commitments have been
     permanently terminated,

                                      5
<PAGE>
each Lender Party and each holder of a Note agrees that, at the Borrower's
request, the Lender Parties and the holders of the Notes will execute and
deliver to the Borrower appropriate documents (without recourse and without
representation or warranty and at the sole cost and expense of Borrower)
necessary to evidence the transfer by subrogation to the Borrower of an
interest in the Obligations of the Borrower and each other Obligor resulting
from such payment by the Borrower. In furtherance of the foregoing, for so long
as any Obligations or Commitments remain outstanding, the Borrower shall
refrain from taking any action or commencing any proceeding against the
Borrower or any other Obligor (or its successors or assigns, whether in
connection with a bankruptcy proceeding or otherwise) to recover any amounts in
respect of payments made under this Pledge Agreement to any Lender Party or any
holder of a Note.

     SECTION 2.8.   Waiver of Subrogation. Until such time as the Obligations
have been indefeasibly paid in full, in cash, and the Commitments have been
terminated, the Borrower hereby irrevocably waives any claim or other rights
which it may now or hereafter acquire against the Borrower or any other Obligor
that arise from the existence, payment, performance or enforcement of the
Borrower's obligations under this Pledge Agreement or any other Loan Document,
including any right of subrogation, reimbursement, exoneration, or
indemnification, any right to participate in any claim or remedy of the Lender
Parties against the Borrower or any other Obligor or any collateral which the
Agent now has or hereafter acquires, whether or not such claim, remedy or right
arises in equity, or under contract, statute or common law, including the right
to take or receive from the Borrower or any other Obligor, directly or
indirectly, in cash or other property or by set-off or in any manner, payment
or security on account of such claim or other rights. If any amount shall be
paid to the Borrower in violation of the preceding sentence and the Obligations
shall not have been indefeasibly paid in full, in cash, and the Commitments
have not been terminated, such amount shall be deemed to have been paid to the
Borrower for the benefit of, and held in trust for, the Lender Parties, and
shall forthwith be paid to the Lender Parties to be credited and applied upon
the Obligations, whether matured or unmatured. The Borrower acknowledges that
it will receive direct and indirect benefits from the financing arrangements
contemplated by the Credit Agreements and that the waiver set forth in this
Section is knowingly made in contemplation of such benefits.

                                 ARTICLE III
                        REPRESENTATIONS AND WARRANTIES

     SECTION 3.1.   Warranties, etc. The Borrower represents and warrants unto
each Lender Party, as at the date of each pledge and delivery hereunder
(including each pledge and delivery of Pledged Shares) by the Borrower to the
Agent of any Collateral, as set forth in this Article.

     SECTION 3.1.1   Ownership, No Liens, etc. The Borrower is the legal and
beneficial owner of, and has good and marketable title to (and has full right
and authority to pledge and assign) such Collateral, free and clear of all
liens, security interests, options, or other charges or encumbrances, except
any lien or security interest granted pursuant hereto in favor of the Agent.

     SECTION 3.1.2   Valid Security Interest. The delivery of such Collateral
to the Agent is effective to create a valid, perfected, first priority security
interest in such Collateral and all

                                      6
<PAGE>
proceeds thereof, securing the Secured Obligations. No filing or other action
will be necessary to perfect or protect such security interest.

     SECTION 3.1.3   As to Pledged Shares. In the case of any Pledged Shares
constituting such Collateral, all of such Pledged Shares are duly authorized
and validly issued, fully paid, and non-assessable, and constitute all of the
issued and outstanding shares of capital stock entitled to vote in the election
of the Board of Directors of each Pledged Share Issuer.

                                  ARTICLE IV
                                   COVENANTS

     SECTION 4.1.   Protect Collateral; Further Assurances, etc. The Borrower
will not sell, assign, transfer, pledge, or encumber in any other manner the
Collateral (except in favor of the Agent hereunder and as otherwise expressly
permitted by the Credit Agreements. The Borrower will warrant and defend the
right and title herein granted unto the Agent in and to the Collateral (and all
right, title, and interest represented by the Collateral) against the claims
and demands of all Persons whomsoever. The Borrower agrees that at any time,
and from time to time, at the expense of the Borrower, the Borrower will
promptly execute and deliver all further instruments, and take all further
action, that may be necessary or desirable, or that the Agent may reasonably
request, in order to perfect and protect any security interest granted or
purported to be granted hereby or to enable the Agent to exercise and enforce
its rights and remedies hereunder with respect to any Collateral.

     SECTION 4.2.   Stock Powers, etc. The Borrower agrees that all Pledged
Shares (and all other shares of capital stock constituting Collateral)
delivered by the Borrower pursuant to this Pledge Agreement will be accompanied
by duly executed undated blank stock powers, or other equivalent instruments of
transfer acceptable to the Agent. The Borrower will, from time to time upon the
request of the Agent, promptly deliver to the Agent such stock powers,
instruments, and similar documents, satisfactory in form and substance to the
Agent, with respect to the Collateral as the Agent may reasonably request and
will, from time to time upon the request of the Agent after the occurrence of
any Event of Default, promptly transfer any Pledged Shares or other shares of
common stock constituting Collateral into the name of any nominee designated by
the Agent.

     SECTION 4.3.   Continuous Pledge. Subject to Section 2.4, the Borrower
will, at all times, keep pledged to the Agent pursuant hereto all Pledged
Shares and all other shares of capital stock constituting Collateral, all
Dividends and Distributions with respect thereto, and all other Collateral and
other securities, instruments, proceeds, and rights from time to time received
by or distributable to the Borrower in respect of any Collateral.

     SECTION 4.4.   Voting Rights; Dividends, etc. The Borrower agrees after
any Event of Default shall have occurred and be continuing and the Agent has
notified the Borrower of the Agent's intention to exercise its voting power
under this Section 4.4

               (i)    the Agent may exercise (to the exclusion of the Borrower)
          the voting power and all other incidental rights of ownership with
          respect to any Pledged Shares or other shares of capital stock
          constituting Collateral and the

                                      7
<PAGE>
          Borrower hereby grants the Agent an irrevocable proxy, exercisable
          under such circumstances, to vote the Pledged Shares and such other
          Collateral; and

               (ii)   promptly to deliver to the Agent such additional proxies
          and other documents as may be necessary to allow the Agent to exercise
          such voting power.

The Agent agrees that unless an Event of Default shall have occurred and be
continuing and the Agent shall have given the notice referred to in Section
4.4(b), the Borrower shall have the exclusive voting power with respect to any
shares of capital stock (including any of the Pledged Shares) constituting
Collateral and the Agent shall, upon the written request of the Borrower,
promptly deliver such proxies and other documents, if any, as shall be
reasonably requested by the Borrower which are necessary to allow the Borrower
to exercise voting power with respect to any such share of capital stock
(including any of the Pledged Shares) constituting Collateral; provided,
however, that no vote shall be cast, or consent, waiver, or ratification given,
or action taken by the Borrower that would impair any Collateral or be
inconsistent with or violate any provision of the Credit Agreements or any
other Loan Document (including this Pledge Agreement).

     SECTION 4.5.   Additional Undertakings. The Borrower will not, without the
prior written consent of the Agent take or omit to take any action the taking
or the omission of which would result in any impairment or alteration of any
obligation of the maker of any instrument constituting Collateral.

                                   ARTICLE V
                                   THE AGENT

     SECTION 5.1.   Agent Appointed Attorney-in-Fact. The Borrower hereby
irrevocably appoints the Agent the Borrower's attorney-in-fact, with full
authority in the place and stead of the Borrower and in the name of the
Borrower or otherwise, from time to time in the Agent's discretion, to take any
action and to execute any instrument which the Agent may deem necessary or
advisable to accomplish the purposes of this Pledge Agreement, including
without limitation:

          (a)  after the occurrence and continuance of an Event of Default, to
     ask, demand, collect, sue for, recover, compromise, receive and give
     acquittance and receipts for moneys due and to become due under or in
     respect of any of the Collateral;

          (b)  to receive, endorse, and collect any drafts or other
     instruments, documents and chattel paper, in connection with clause (a)
     above; and

          (c)  to file any claims or take any action or institute any
     proceedings which the Agent may deem necessary or desirable for the
     collection of any of the Collateral or otherwise to enforce the rights of
     the Agent with respect to any of the Collateral.

The Borrower hereby acknowledges, consents and agrees that the power of
attorney granted pursuant to this Section is irrevocable and coupled with an
interest.

                                      8
<PAGE>
     SECTION 5.2.   Agent May Perform. If the Borrower fails to perform any
agreement contained herein, the Agent may itself perform, or cause performance
of, such agreement, and the reasonable expenses of the Agent incurred in
connection therewith shall be payable by the Borrower pursuant to Section 6.4.

     SECTION 5.3.   Agent Has No Duty. The powers conferred on the Agent
hereunder are solely to protect its interest (on behalf of the Lender Parties)
in the Collateral and shall not impose any duty on it to exercise any such
powers.  Except for reasonable care of any Collateral in its possession and the
accounting for moneys actually received by it hereunder, the Agent shall have
no duty as to any Collateral or responsibility for (a) ascertaining or taking
action with respect to calls, conversions, exchanges, maturities, tenders or
other matters relative to any Pledged Property, whether or not the Agent has or
is deemed to have knowledge of such matters, or (b) taking any necessary steps
to preserve rights against prior parties or any other rights pertaining to any
Collateral.

     SECTION 5.4.   Reasonable Care. The Agent is required to exercise
reasonable care in the custody and preservation of any of the Collateral in its
possession; provided, however, the Agent shall be deemed to have exercised
reasonable care in the custody and preservation of any of the Collateral, if it
takes such action for that purpose as the Borrower reasonably requests in
writing at times other than upon the occurrence and during the continuance of
any Event of Default, but failure of the Agent to comply with any such request
at any time shall not in itself be deemed a failure to exercise reasonable care.

                                  ARTICLE VI
                                   REMEDIES

     SECTION 6.1.   Certain Remedies. If any Event of Default shall have
occurred and be continuing:

          (a)  The Agent may exercise in respect of the Collateral, in addition
     to other rights and remedies provided for herein or otherwise available to
     it, all the rights and remedies of a secured party on default under the
     U.C.C. (whether or not the U.C.C.  applies to the affected Collateral) and
     also may, without notice except as specified below, sell the Collateral
     or any part thereof in one or more parcels at public or private sale, at
     any of the Agent's offices or elsewhere, for cash, on credit or for future
     delivery, and upon such other terms as the Agent may deem commercially
     reasonable.  The Borrower agrees that, to the extent notice of sale shall
     be required by law, at least ten days' prior notice to the Borrower of the
     time and place of any public sale or the time after which any private sale
     is to be made shall constitute reasonable notification.  The Agent shall
     not be obligated to make any sale of Collateral regardless of notice of
     sale having been given.  The Agent may adjourn any public or private sale
     from time to time by announcement at the time and place fixed therefor,
     and such sale may, without further notice, be made at the time and place
     to which it was so adjourned.

          (b)  The Agent may

                                      9
<PAGE>
               (i)    transfer all or any part of the Collateral into the name
          of the Agent or its nominee, with or without disclosing that such
          Collateral is subject to the lien and security interest hereunder,

               (ii)   notify the parties obligated on any of the Collateral to
          make payment to the Agent of any amount due or to become due
          thereunder,

               (iii)  enforce collection of any of the Collateral by suit or
          otherwise, and surrender, release or exchange all or any part thereof,
          or compromise or extend or renew for any period (whether or not longer
          than the original period) any obligations of any nature of any party
          with respect thereto,

               (iv)   endorse any checks, drafts, or other writings in the
          Borrower's name to allow collection of the Collateral,

               (v)    take control of any proceeds of the Collateral, and

               (vi)   execute (in the name, place and stead of the Borrower)
          endorsements, assignments, stock powers and other instruments of
          conveyance or transfer with respect to all or any of the Collateral.

     SECTION 6.2.   Securities Laws.  If the Agent shall determine to exercise
its right to sell all or any of the Collateral pursuant to Section 6.1, the
Borrower agrees that, upon request of the Agent, the Borrower will, at its own
expense:

          (a)  execute and deliver, and cause each issuer of the Collateral
     contemplated to be sold and the directors and officers thereof to execute
     and deliver, all such instruments and documents, and do or cause to be
     done all such other acts and things, as may be necessary or, in the
     opinion of the Agent, advisable to register such Collateral under the
     provisions of the Securities Act of 1933, as from time to time amended
     (the "Securities Act"), and to cause the registration statement relating
     thereto to become effective and to remain effective for such period as
     prospectuses are required by law to be furnished, and to make all
     amendments and supplements thereto and to the related prospectus which, in
     the opinion of the Agent, are necessary or advisable, all in conformity
     with the requirements of the Securities Act and the rules and regulations
     of the Securities and Exchange Commission applicable thereto;

          (b)  use its best efforts to qualify the Collateral under the state
     securities or "Blue Sky" laws and to obtain all necessary governmental
     approvals for the sale of the Collateral, as requested by the Agent;

          (c)  cause each such issuer to make available to its security
     holders, as soon as practicable, an earnings statement that will satisfy
     the provisions of Section 11(a) of the Securities Act; and

          (d)  do or cause to be done all such other acts and things as may be
     necessary to make such sale of the Collateral or any part thereof valid
     and binding and in compliance with applicable law.

                                      10
<PAGE>
     SECTION 6.3.   Compliance with Restrictions. The Borrower agrees that in
any sale of any of the Collateral whenever an Event of Default shall have
occurred and be continuing, the Agent is hereby authorized to comply with any
limitation or restriction in connection with such sale as it may be advised by
counsel is necessary in order to avoid any violation of applicable law
(including compliance with such procedures as may restrict the number of
prospective bidders and purchasers, require that such prospective bidders and
purchasers have certain qualifications, and restrict such prospective bidders
and purchasers to persons who will represent and agree that they are purchasing
for their own account for investment and not with a view to the distribution or
resale of such Collateral), or in order to obtain any required approval of the
sale or of the purchaser by any governmental regulatory authority or official,
and the Borrower further agrees that such compliance shall not result in such
sale being considered or deemed not to have been made in a commercially
reasonable manner, nor shall the Agent be liable nor accountable to the
Borrower for any discount allowed by the reason of the fact that such
Collateral is sold in compliance with any such limitation or restriction.

     SECTION 6.4.   Application of Proceeds. All cash proceeds received by the
Agent in respect of any sale of, collection from, or other realization upon,
all or any part of the Collateral may thereafter be applied (after payment of
any amounts payable to the Agent pursuant to Article III of the Credit
Agreements and Section 6.4) in whole or in part by the Agent against, all or
any part of the Secured Obligations in such order as the Agent shall elect.

     Any surplus of such cash or cash proceeds held by the Agent and remaining
after payment in full of all the Secured Obligations, and the termination of
all Commitments, shall be paid over to the Borrower or to whomsoever may be
lawfully entitled to receive such surplus.

     SECTION 6.5.   Indemnity and Expenses. The Borrower hereby indemnifies and
holds harmless the Agent from and against any and all claims, losses, and
liabilities arising out of or resulting from this Pledge Agreement (including
enforcement of this Pledge Agreement), except claims, losses, or liabilities
resulting from the Agent's gross negligence or wilful misconduct. Upon demand,
the Borrower will pay to the Agent the amount of any and all reasonable
expenses, including the reasonable fees and disbursements of its counsel and of
any experts and agents, which the Agent may incur in connection with:

          (a)  the administration of this Pledge Agreement, the Credit
     Agreements and each other Loan Document;

          (b)  the custody, preservation, use, or operation of, or the sale of,
     collection from, or other realization upon, any of the Collateral;

          (c)  the exercise or enforcement of any of the rights of the Agent
     hereunder; or

          (d)  the failure by the Borrower to perform or observe any of the
     provisions hereof.

                                      11
<PAGE>
                                 ARTICLE VII
                           MISCELLANEOUS PROVISIONS

     SECTION 7.1.   Loan Document. This Pledge Agreement is a Loan Document
executed pursuant to the Credit Agreements and shall (unless otherwise
expressly indicated herein) be construed, administered and applied in
accordance with the terms and provisions thereof.

     SECTION 7.2.   Amendments, etc. No amendment to or waiver of any provision
of this Pledge Agreement nor consent to any departure by the Borrower herefrom
shall in any event be effective unless the same shall be in writing and signed
by the Agent, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which it is given.

     SECTION 7.3.   Protection of Collateral. The Agent may from time to time,
at its option, perform any act which the Borrower agrees hereunder to perform
and which the Borrower shall fail to perform after being requested in writing
so to perform (it being understood that no such request need be given after the
occurrence and during the continuance of an Event of Default) and the Agent may
from time to time take any other action which the Agent reasonably deems
necessary for the maintenance, preservation or protection of any of the
Collateral or of its security interest therein.

     SECTION 7.4.   Addresses for Notices. All notices and other communications
provided for hereunder shall be in writing (including telegraphic
communication) and, if to the Borrower, mailed or telegraphed or delivered to
it at the address set forth below its signature hereto, if to the Agent, mailed
or delivered to it, addressed to it at the address of the Agent specified in
the 2002 Credit Agreement or, as to either party, at such other address as
shall be designated by such party in a written notice to each other party
complying as to delivery with the terms of this Section. All such notices and
other communications shall, when mailed or telegraphed, respectively, be
effective when deposited in the mails or delivered to the telegraph company,
respectively, addressed as aforesaid.

     SECTION 7.5.   Section Captions. Section captions used in this Pledge
Agreement are for convenience of reference only, and shall not affect the
construction of this Pledge Agreement.

     SECTION 7.6.   Severability. Wherever possible each provision of this
Pledge Agreement shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Pledge Agreement shall
be prohibited by or invalid under such law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Pledge
Agreement.

     SECTION 7.7.   Governing Law, Entire Agreement, etc. THIS PLEDGE AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE
STATE OF NEW YORK, EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF THE
SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT OF ANY
PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE
STATE OF NEW

                                      12
<PAGE>
YORK. THIS PLEDGE AGREEMENT AND THE OTHER LOAN DOCUMENTS CONSTITUTE THE ENTIRE
UNDERSTANDING AMONG THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER
HEREOF AND SUPERSEDE ANY PRIOR AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT
THERETO.

     SECTION 7.8.   Forum Selection and Consent to Jurisdiction. ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS PLEDGE
AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
VERBAL OR WRITTEN) OR ACTIONS OF THE LENDER PARTIES OR THE BORROWER SHALL BE
BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF NEW YORK OR IN
THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK;
PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR
OTHER PROPERTY MAY BE BROUGHT, AT THE AGENT'S OPTION, IN THE COURTS OF ANY
JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. THE BORROWER
HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF
THE STATE OF NEW YORK AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE
AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN
CONNECTION WITH SUCH LITIGATION.  THE BORROWER FURTHER IRREVOCABLY CONSENTS TO
THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL
SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. THE BORROWER HEREBY EXPRESSLY
AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION
WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH
LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY
SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT
THE BORROWER HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY
COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT
PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO
ITSELF OR ITS PROPERTY, THE BORROWER HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN
RESPECT OF ITS OBLIGATIONS UNDER THIS PLEDGE AGREEMENT.

     SECTION 7.9.   Waiver of Jury Trial. THE LENDER PARTIES AND THE BORROWER
HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT
OF, UNDER, OR IN CONNECTION WITH, THIS PLEDGE AGREEMENT, OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS
OF THE LENDER PARTIES OR THE BORROWER. THE BORROWER ACKNOWLEDGES AND AGREES
THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND
EACH OTHER PROVISION OF EACH OTHER LOAN

                                      13
<PAGE>
DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE LENDER PARTIES ENTERING INTO THE CREDIT AGREEMENTS AND EACH
SUCH OTHER LOAN DOCUMENT.

                                      14
<PAGE>
     IN WITNESS WHEREOF, the parties hereto have caused this Pledge Agreement
to be duly executed and delivered by their respective officers thereunto duly
authorized as of the day and year first above written.

                                CALPINE CORPORATION

                                By:__________________________________________
                                Name:________________________________________
                                Title:_______________________________________

                                Address:        50 West San Fernando Avenue
                                                San Jose, CA 95113

                                Facsimile No.:  (408) 995-0505

                                Attention:      Senior Vice President-Finance

                                      15
<PAGE>
                                THE BANK OF NOVA SCOTIA

                                By:__________________________________________
                                Name:________________________________________
                                Title:_______________________________________

                                Address:        580 California Street
                                                Suite 2100
                                                San Francisco, CA 94111

                                Facsimile No.:  (415) 397-0791

                                Attention:      Jon Burckin

                                with a copy to:

                                                The Bank of Nova Scotia
                                                600 Peachtree Street, N.E.
                                                Suite 2700
                                                Atlanta, GA 30308

                                Attention:      Hilma Gabbidon
                                                Administrative Agent
                                                Loan Administration

                                Facsimile No.:  (404) 888-8998

                                      16
<PAGE>
                                                                    ATTACHMENT 1
                                                                              to
                                                                Pledge Agreement

<TABLE>
<CAPTION>
Pledged Shares
--------------

Pledged Share Issuer                   Common Stock
--------------------                   ------------
                                       Authorized     Outstanding    % of Shares
                                        Shares         Shares         Pledged
                                       --------       --------       ----------
<S>                                    <C>            <C>            <C>
Calpine Natural Gas GP, Inc.              1000           1000        100%

Calpine Natural Gas Holdings, Inc.        1000           1000        100%

Calpine CCFC Holdings, Inc.               1000           1000        100%
</TABLE>

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