Document:

<PAGE>   1
                                                                     EXHIBIT 4.7

                                 TRUST AGREEMENT

                                     between

                                NRG ENERGY, INC.

                                       and

                              THE BANK OF NEW YORK,

                    not in its individual capacity but solely
                                   as Trustee

                           Dated as of March 20, 2000

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                  Page

                                    ARTICLE I
<S>                                                                                                <C>
Definitions and Assumptions.........................................................................2

         Section 1.1       Definitions..............................................................2
         Section 1.2       Rules of Construction...................................................15

                                   ARTICLE II

Declaration of Trust; Issuance of Certificates.....................................................15

         Section 2.1       Creation and Declaration of Trust; Purchase
                           of the Senior Notes.....................................................15
         Section 2.2       Representations and Warranties..........................................16
         Section 2.3       Breach of Representation, Warranty or Covenant..........................17
         Section 2.4       Agreement to Authenticate and Deliver Certificates......................18

                                   ARTICLE III

Administration of Trust............................................................................18

         Section 3.1       Administration of Trust.................................................18
         Section 3.2       Receipt of Trust Asset Payments.........................................18
         Section 3.3       Certificate Account.....................................................18
         Section 3.4       Repurchase of Certificates Upon a Change of Control.....................21
         Section 3.5       Realization Upon Defaulted Senior Notes.................................23
         Section 3.6       Access to Certain Documentation.........................................23
         Section 3.7       Expenses of Trust.......................................................23
         Section 3.8       No Merger or Consolidation of Trust.....................................24
         Section 3.9       Exchange Rate Agency Agreement..........................................24
</TABLE>

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<TABLE>
<CAPTION>
                                   ARTICLE IV
<S>                                                                                               <C>
Distributions and Reports to Certificateholders; Transfer of Certificates..........................24

         Section 4.1       Distributions...........................................................24
         Section 4.2       Final Distributions.....................................................26
         Section 4.3       Reports to Certificateholders...........................................27
         Section 4.4       Compliance with Withholding Requirements;
                           Tax Treatment and Reporting.............................................28
         Section 4.5       Transfer of Certificates................................................28
         Section 4.6       Rule 144A Information...................................................30

                                    ARTICLE V

Security Forms.....................................................................................30

         Section 5.1       Forms Generally.........................................................30
         Section 5.2       Restricted Legend.......................................................31

                                   ARTICLE VI

The Certificates...................................................................................33

         Section 6.1       Designation; Certificate Principal Amount
                           and Denominations.......................................................33
         Section 6.2       Execution, Authentication and Delivery..................................34
         Section 6.3       Registration; Registration of Transfer and Exchange.....................34
         Section 6.4       Mutilated, Destroyed, Lost or Stolen Certificates.......................37
         Section 6.5       Distribution of Available Funds; Computations...........................38
         Section 6.6       Persons Deemed Owners...................................................39
         Section 6.7       Cancellation............................................................39
         Section 6.8       Global Securities.......................................................39
         Section 6.9       Notices to Depository...................................................42
         Section 6.10      Conditions of Authentication and Delivery...............................42
         Section 6.11      Appointment of Paying Agent.............................................42
         Section 6.12      Authenticating Agent....................................................43
         Section 6.13      Remedies................................................................44
</TABLE>

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<TABLE>
<CAPTION>
                                   ARTICLE VII

<S>                                                                                               <C>
The Company........................................................................................45

         Section 7.1       Liability of the Company................................................45
         Section 7.2       Limitation on Liability of the Company..................................45
         Section 7.3       The Company May Purchase Certificates...................................46

                                  ARTICLE VIII

Concerning the Currency Swap, the Call Option and
the Early Redemption Right.........................................................................46

         Section 8.1       Currency Swap and Call Option...........................................46
         Section 8.2       Obligations to the Callholder...........................................48
         Section 8.3       Early Redemption Right..................................................48

                                   ARTICLE IX

Concerning the Trustee.............................................................................49

         Section 9.1       Duties of Trustee; Notice of Defaults...................................49
         Section 9.2       Certain Matters Affecting the Trustee...................................50
         Section 9.3       Trustee Not Liable for Recitals in Certificates
                           or Trust Assets.........................................................52
         Section 9.4       Trustee May Own Certificates............................................52
         Section 9.5       Trustee's Fees and Expenses; Indemnification............................52
         Section 9.6       Eligibility Requirements for Trustee....................................53
         Section 9.7       Resignation or Removal of the Trustee...................................53
         Section 9.8       Successor Trustee.......................................................54
         Section 9.9       Merger or Consolidation of Trustee......................................55
         Section 9.10      Appointment of Office or Agency.........................................55
         Section 9.11      Representations and Warranties of Trustee...............................55
         Section 9.12      Limitation of Powers and Duties.........................................56
</TABLE>

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<TABLE>
<CAPTION>
                                    ARTICLE X

<S>                                                                                               <C>
Termination........................................................................................57

         Section 10.1      Termination.............................................................57

                                   ARTICLE XI

Miscellaneous Provisions...........................................................................58

         Section 11.1      Amendment...............................................................58
         Section 11.2      Counterparts............................................................59
         Section 11.3      Limitation on Rights of Certificateholders..............................60
         Section 11.4      Governing Law...........................................................61
         Section 11.5      Notices.................................................................61
         Section 11.6      Severability of Provisions..............................................62
         Section 11.7      Notice to Rating Agencies...............................................62
         Section 11.8      Non-petition Covenant...................................................62
         Section 11.9      Article and Section References..........................................63
         Section 11.10     Compliance Certificates and Opinions, etc...............................63
</TABLE>

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<TABLE>
<S>                                                                                               <C>
Exhibit A.........................................................................................A-1
Exhibit B........................................................................................ B-1
Exhibit C.........................................................................................C-1
Exhibit D.........................................................................................D-1
Exhibit E.........................................................................................E-1
</TABLE>

<PAGE>   7

                  TRUST AGREEMENT dated as of March 20, 2000, between NRG
Energy, Inc., a company incorporated under the laws of the State of Delaware
(the "Company"), and The Bank of New York, a banking corporation duly organized
and existing under the laws of New York, as trustee (the "Trustee").

                              W I T N E S S E T H

                  WHEREAS, the Company and the Trustee have duly authorized the
execution and delivery of this Agreement to create and establish a new trust to
be known as the NRG Energy Pass-Through Trust 2000-1 and trust certificates to
be issued thereby, which certificates shall be known as the 8.70 % Remarketable
or Redeemable Securities ("ROARS") Due March 15, 2005 (the "Certificates"), and
the Company and the Trustee shall herein specify certain terms and conditions in
respect thereof.

                  WHEREAS, the Certificates shall have an aggregate Initial
Certificate Principal Balance of $250,000,000 and shall entitle the holders
thereof (the "Holders" or "Certificateholders") to distributions thereon to the
extent of (i) collections on pound sterling 160,000,000 principal amount of
Reset Senior Notes Due March 15, 2020 issued by the Company (the "Senior
Notes"), (ii) Dollar Swap Payments by the Swap Counterparty with respect to the
Currency Swap received by the Trustee and (iii) any other funds contained in the
Certificate Account to the extent set forth herein.

                  WHEREAS, all representations, covenants and agreements made
herein by the Company and the Trustee are for the benefit and security of the
Certificateholders.

                  NOW, THEREFORE, in consideration of the agreements and
obligations set forth herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, each party, for the
benefit of the other parties and for the benefit of the Certificateholders,
hereby agrees as follows:

                                       1
<PAGE>   8

                                    ARTICLE I

                           Definitions and Assumptions

                  Section 1.1   Definitions

                  Except as otherwise specified herein or as the context may
otherwise require, the following terms have the respective meanings set forth
below for all purposes of this Agreement.

                  "Affiliate": With respect to any specified Person, any other
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person. For the purposes of this
definition, "control", when used with respect to any specified Person, means the
power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms "controlling" and "controlled" have meanings
correlative to the foregoing.

                  "Agreement": This Agreement and all supplements hereto and
modifications or amendments hereof, including the terms of the Certificates.

                  "Applicable Procedures":  As defined in Section 5.2(b).

                  "Authenticating Agent":  As defined in Section 6.12.

                  "Available Funds": For any Distribution Date, the aggregate
amount deposited in the Certificate Account since the last Distribution Date
with respect to (a) for so long as the Senior Notes are denominated in Pounds
Sterling and no Swap Termination Event has occurred, any Dollar Swap Payment or
other Dollar amount paid by the Swap Counterparty to the Trustee under the
Currency Swap, (b) if a Swap Termination Event (other than as a result of a
Conversion Event, Optional Tax Redemption or a Change of Control Repurchase) has
occurred, the semi-annual interest payments on the Senior Notes and payments on
or in respect of the principal of the Senior Notes made by the Company
thereunder and received by the Trustee or, if applicable, any Swap Termination
Payment (subject to Section 6.13) or Unpaid Amounts, (c) if a Conversion Event
has occurred , the semi-annual interest payments on the Senior Notes and
payments on or in respect of the principal of the Senior Notes made by the
Company thereunder and received by the Trustee or, if applicable, any Unpaid
Amounts, (d) all Option Proceeds and (e) all Liquidation Proceeds.

                                       2
<PAGE>   9

                  "Board of Directors": The Board of Directors of the Company.

                  "Business Day": With respect to (i) the Call Option, as
defined therein, (ii) the Currency Swap, as defined therein, (iii) the Senior
Notes, as defined in the Indenture, and (iv) this Agreement, each day which is
not a Saturday, Sunday or a day on which banking institutions and foreign
exchange markets in New York and London are authorized or obligated by law to
remain closed.

                  "Call Exercise Date": February 15, 2005, or if such date is
not a Business Day, the next preceding Business Day.

                  "Call Option": The Call Option, dated as of the Closing Date,
between the Trustee and the Callholder, pursuant to the ISDA Master Agreement
between such parties, dated March 20, 2000, the form of the confirmation for
which is substantially in the form attached hereto as Exhibit B.

                  "Call Price": An amount equal to 100% of the outstanding
principal amount of the then outstanding Senior Notes.

                  "Callholder": Bank of America, N.A., or any permitted assignee
thereof.

                  "Certificateholder" or "Holder": With respect to any
Outstanding Certificate, the Person in whose name a Certificate is registered in
the Certificate Register on the applicable Record Date.

                  "Certificate Account": As defined in Section 3.3.

                  "Certificate Owner": A beneficial owner of a Certificate
represented by a Global Security.

                  "Certificate Principal Amount": $250,000,000, or such lesser
principal amount outstanding following a partial repurchase due to a Change of
Control Offer.

                  "Certificate Principal Balance": With respect to an
Outstanding Certificate, as determined at any time, the maximum amount that the
Holder thereof is entitled to receive as a distribution of principal.

                                       3
<PAGE>   10

                  "Certificate Register" and "Certificate Registrar": As defined
in Section 6.3.

                  "Certificates": The 8.70% Remarketable or Redeemable
Securities ("ROARS") Due March 15, 2005 issued by the Trust and authorized by,
and authenticated and delivered under, this Agreement.

                  "Change of Control": The occurrence of one or more of the
following events: (i) NSP (or its successors) shall cease to own a majority of
the outstanding Voting Stock of the Company, (ii) at any time following the
occurrence of the event described in clause (i), a Person or group (as that term
is used in Section 13(d)(3) of the Exchange Act) of Persons (other than NSP)
shall have become the beneficial owner directly or indirectly, or shall have
acquired the absolute power to direct the vote, of more than 35% of the
outstanding Voting Stock of the Company, or (iii) during any twelve-month
period, individuals who at the beginning of such period constituted the Board of
Directors (together with any new directors whose election or nomination was
approved by a majority of the directors then in office who were either directors
at the beginning of such period or who were previously so approved) shall have
ceased for any reason to constitute a majority of the Board of Directors.
Notwithstanding the foregoing, a Change of Control shall be deemed not to have
occurred if one or more of the above events occurs or circumstances exist and,
after giving effect thereto, the Senior Notes are rated Investment Grade. For
purposes of clause (i), NSP's "successors" shall be deemed to include NSP, as
the "surviving corporation," as that term is used in the Agreement and Plan of
Merger, dated as of March 24, 1999, by and between NSP and New Century Energies,
Inc., if the merger contemplated by such agreement is consummated substantially
in accordance with the terms specified therein.

                  "Change of Control Offer": As defined in Section 3.4.

                  "Change of Control Repurchase": The repurchase of 100% of the
outstanding Certificates pursuant to Section 3.4.

                  "Clearstream, Luxembourg": Clearstream Banking, societe
anonyme (or any successor securities clearing agency).

                  "Closing Date": March 20, 2000.

                                       4
<PAGE>   11

                  "Code": The Internal Revenue Code of 1986, as amended, and the
Treasury Regulations promulgated thereunder.

                  "Commission": The Securities and Exchange Commission, as from
time to time constituted, created under the Exchange Act or, if at any time
after the execution and delivery of this Agreement such Commission is not
existing and performing the duties now assigned to it, then the body then
performing such duties.

                  "Company": NRG Energy, Inc., a Delaware corporation, and if a
successor Person shall have become the Company pursuant to any applicable
provisions of this Agreement, the "Company" shall mean such successor Person.

                  "Company Order" or "Company Request": A written order or
request, respectively, signed in the name of the Company, by any two of its
officers and delivered to the Trustee.

                  "Conversion Event": The declaration, at any time prior to the
Settlement Date, of the principal amount of the Senior Notes to be due and
payable immediately in accordance with Section 3.3 of the Indenture as a result
of the occurrence of an Event of Default thereunder.

                  "Corporate Trust Office": The office of the Trustee at which
its corporate trust business shall be principally administered.

                  "Currency Swap": The Currency Swap Agreement between the Swap
Counterparty and the Trustee, pursuant to an ISDA Master Agreement between such
parties, dated March 20, 2000, the form of the confirmation for which is annexed
hereto as Exhibit C.

                  "Definitive Certificates": As defined in Section 6.8.

                  "Depository": The Depository Trust Company.

                  "Distribution Dates": Each March 15 and September 15, or if
such day is not a Business Day, the next succeeding Business Day, commencing
September 15, 2000, through and including the Final Distribution Date.

                  "Dollar" or "$" or "USD": Such currency of the United States
as at the time of payment is legal tender for the payment of public and private
debts.

                                       5
<PAGE>   12

                  "Dollar Distribution": A semi-annual Dollar payment calculated
at an annual interest rate of 8.70% on the basis of a 360-day year consisting
of twelve months of 30-days each, due on the Certificate Principal Amount.

                  "Dollar Swap Payment" a semi-annual Dollar payment made by the
Swap Counterparty to the Trustee on behalf of the Certificateholders which is
calculated at an annual interest rate of 8.70% on the basis of a 360-day year
consisting of twelve months of 30-days each due on the lesser of $250,000,000
aggregate notional amount or a notional amount equal to the outstanding
principal amount of the Certificates following a partial repurchase pursuant to
a Change of Control Offer.

                  "Early Redemption Notice": As defined in Section 8.3.

                  "Early Redemption Right": The right of the Trustee as holder
of the Senior Notes to require the Company to redeem all, but not less than all,
the Senior Notes at a redemption price payable in Pounds Sterling equal to 100%
of the principal amount thereof plus accrued but unpaid interest, if any, to
such redemption date on March 15, 2005, which right the parties hereto
acknowledge that the Trustee is required to exercise pursuant to Section 8.3
hereof.

                  "Eligible Account": Either (i) a segregated account maintained
with a federal or State chartered depositary institution or trust company the
long-term unsecured debt obligations of which are rated by the Rating Agencies
the higher of (x) at least the then current long-term rating of the Senior Notes
and (y) any one of its two highest long-term rating categories at the time any
amounts are held in deposit therein, or (ii) a trust account maintained as a
segregated account and held by a federal or State chartered depositary
institution or trust company in trust for the benefit of the Certificateholders;
provided, however, that with respect to this clause (ii), such depositary
institution or trust company has a long-term rating in one of the four highest
categories by the Rating Agencies.

                  "Eligible Expenses": All reasonable out of pocket expenses
incurred or made by the Trustee, including costs of collection, in addition to
the compensation agreed upon by the Company and the Trustee for the Trustee's
services. Such expenses shall include the reasonable compensation, expenses and
disbursements of the Trustee's agents, counsel and experts, which agents,
counsel and experts shall, prior to the occurrence of an Event of Default or an
event which with the giving of notice or passing of time or both would
constitute an Event of Default, be agreed upon by the Company and the Trustee.
The Company shall pay such expenses.

                                       6
<PAGE>   13

                  "Euroclear": The Euroclear Clearance System (or any successor
securities clearing agency).

                  "Event of Default": An Event of Default under the Indenture.

                  "Exchange Act": The Securities Exchange Act of 1934, as
amended.

                  "Executive Officer": With respect to any corporation, the
Chief Executive Officer, the Chief Operating Officer, the Chief Financial
Officer, the President, any Vice President, the Secretary, the Treasurer, any
Assistant Treasurer or any Assistant Secretary of such corporation.

                  "Final Distribution": Unless made earlier in the event of a
redemption of the Senior Notes pursuant to their terms, the distribution by the
Trustee on the Final Distribution Date (i) of all Option Proceeds following an
exercise of the Call Option by the Callholder or an exercise of the Early
Redemption Right (and, as long as a Swap Termination Event shall not have
occurred, upon receipt by the Trust from the Swap Counterparty of Dollars in an
amount equal to the Certificate Principal Amount pursuant to the Currency Swap
as a result of such exercise), as the case may be, or (ii) of all Liquidation
Proceeds received by the Trustee following a Trust Termination Event, and (iii)
of all Dollar Swap Payments received by the Trustee but not previously
distributed pursuant to Section 4.1 hereof.

                  "Final Distribution Date": (i) March 15, 2005 in connection
with an exercise of the Call Option or the Early Redemption Right or (ii) the
Business Day following the receipt by the Trustee of the Liquidation Proceeds in
connection with a Trust Termination Event.

                  "Global Security": The Rule 144A Global Security or the
Regulation S Global Security.

                  "Indenture": The Indenture dated as of March 20, 2000 between
the Company and The Bank of New York, as Trustee.

                  "Initial Certificate Principal Balance": The aggregate
Certificate Principal Balance as of the Closing Date, which is $250,000,000.

                  "Initial Purchasers": Banc of America Securities LLC, ABN AMRO
Incorporated and Deutsche Banc Securities Inc.

                                       7
<PAGE>   14

                  "Investment Grade": With respect to the Certificates, a rating
of Baa3 or higher by Moody's Investors Service, Inc., and a rating of BBB- or
higher by Standard and Poor's Ratings Group (or, if either or both of the
foregoing Rating Agencies ceases to rate the Securities for reasons beyond the
control of the Company, equivalent ratings by one or two (as the case may be)
other nationally recognized statistical rating organizations (as such term is
defined in Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act)); provided that if
either of the foregoing rating agencies shall change its ratings designations
while the Certificates are Outstanding, "Investment Grade" shall mean the lowest
ratings designation signifying "investment grade" issued by such agencies (or
higher).

                  "Liquidation Proceeds": All amounts, property or proceeds
received by the Trustee in connection with a Trust Termination Event.

                  "Moody's": Moody's Investors Service, Inc., or its successors.

                  "NSP": Northern States Power Company, a Minnesota corporation.

                  "Officer's Certificate": A certificate signed by any Executive
Officer of the Company or, in the case of the Trustee, a Responsible Officer.

                  "Opinion of Counsel": A written opinion of counsel, who may,
except as otherwise expressly provided in this Agreement, be internal counsel
for the Company, delivered to the Trustee.

                  "Option Proceeds": All amounts received by the Trust in
respect of an exercise of the Call Option by the Callholder or an exercise of
the Early Redemption Right by the Trustee, as the case may be.

                  "Optional Tax Redemption": The right of the Company to redeem
the Senior Notes upon the occurrence of certain events as described in Section
3.6 of the Indenture.

                  "Outstanding": When used with respect to Certificates, means,
as of the date of determination, all Certificates theretofore authenticated and
delivered under this Agreement (including, as of such date, all Certificates
represented by Restricted Global Securities authenticated and delivered under
this Agreement) , except:

                                       8
<PAGE>   15

                        (1) Certificates theretofore cancelled by the
               Certificate Registrar or delivered to the Certificate Registrar
               for cancellation; and

                        (2) Certificates which have been issued pursuant to
               Section 6.4 or in exchange for or in lieu of which other
               Certificates have been authenticated and delivered pursuant to
               this Agreement, unless proof satisfactory to the Trustee is
               presented that any such Certificates are held by a bona fide
               purchaser in whose hands such Certificates are valid obligations
               of the Trust;

provided, however, that in determining whether the holders of the required
percentage of the aggregate Voting Rights of the Certificates have given any
request, demand, authorization, direction, notice, consent or waiver hereunder,
Certificates beneficially owned by the Company or any Affiliate thereof shall be
disregarded and deemed not to be Outstanding, and the Voting Rights to which its
Holder would otherwise be entitled shall not be taken into account in
determining whether the requisite percentage of aggregate Voting Rights
necessary to effect any such consent or take any such action has been obtained,
except that (a) in determining whether the Trustee shall be protected in relying
upon any such request, demand, authorization, direction, notice, consent or
waiver, only Certificates which the Trustee actually knows to be so owned shall
be so disregarded, and (b) the foregoing shall not apply at any time when all of
the Outstanding Certificates are owned by the Company or an Affiliate thereof.
Certificates so owned that have been pledged in good faith may be regarded as
Outstanding if the pledgor establishes to the satisfaction of the Trustee the
pledgor's right so to act with respect to such Certificates and that the pledgee
is not the Company or any Affiliate thereof.

                  "Participant": A broker, dealer, bank, other financial
institution or other Person for whom from time to time the Depository effects
book-entry transfers and pledges of securities deposited with the Depository.

                  "Paying Agent": As defined in Section 6.11.

                  "Payment Date": The semi-annual dates on which interest
payments will be due on the Senior Notes as provided therein, being the 15th day
of each March and September, with the first payment following the Closing Date
to occur on September 15, 2000.

                  "Permitted Investments": One or more of the following:

                                       9
<PAGE>   16

                  (i) obligations of or guaranteed as to principal and interest
by the United States or any agency or instrumentality thereof when such
obligations are backed by the full faith and credit of the United States;

                  (ii) federal funds, certificates of deposit, demand deposits,
time deposits and bankers' acceptances (which shall each have an original
maturity of not more than 90 days and, in the case of bankers' acceptances,
shall in no event have an original maturity of more than 365 days or a remaining
maturity of more than 30 days) denominated in United States dollars of any U.S.
depository institution or trust company incorporated under the laws of the
United States or any state thereof or of any domestic branch of a foreign
depository institution or trust company; provided that the debt obligations of
such foreign depository institution or trust company (or, if the only Rating
Agency is S&P, in the case of the principal depository institution in a
depository institution holding company, the debt obligations of the depository
institution holding company) at the date of acquisition thereof have been rated
by each Rating Agency in its highest short-term rating available; and provided
further that, if the only Rating Agency is S&P and if the depository institution
or trust company is a principal subsidiary of a bank holding company and the
debt obligations of such subsidiary are not separately rated, the applicable
rating shall be that of the bank holding company; and, provided further that, if
the original maturity of such short-term obligations of a domestic branch of a
foreign depository institution or trust company shall exceed 30 days, the
short-term rating of such institution shall be AA in the case of S&P if S&P is
the Rating Agency or an equivalent rating by any other Rating Agency;

                  (iii) commercial paper (having an original maturity of not
more than 270 days or a remaining maturity of not more than 30 days) of any
corporation incorporated under the laws of the United States or any state
thereof which on the date of acquisition has been rated by each Rating Agency in
its highest short-term rating available;

                  (iv) a money market fund or a qualified investment fund rated
by each Rating Agency in its highest rating available.

                  "Person": Any legal person, including any individual,
corporation, partnership, limited liability company, joint venture, association,
joint stock company, trust, unincorporated organization or government or any
agency or political subdivision thereof or any other entity of whatever nature.

                                       10
<PAGE>   17

                  "Pounds Sterling": Such currency of the United Kingdom as at
the time of payment is legal tender for the payment of public and private debts.

                  "Predecessor Certificate": With respect to any particular
Certificate, every previous Certificate evidencing all or a portion of the same
interest as that evidenced by such particular Certificate; and, for the purpose
of this definition, any Certificate authenticated and delivered under Section
6.4 in lieu of a mutilated, lost, destroyed or stolen Certificate shall be
deemed to evidence the same interest as such mutilated, lost, destroyed or
stolen Certificate.

                  "Proceeding": Any suit in equity, action at law or other
judicial or administrative proceeding.

                  "Purchase Agreement": The Purchase Agreement among the
Company, the Trust and the Initial Purchasers, dated March 14, 2000.

                  "Qualified Institutional Buyer" or "QIB": A "qualified
institutional buyer" as defined in paragraph (a) of Rule 144A.

                  "Rating Agencies": Moody's and S&P.

                  "Rating Agency Condition": With respect to any action, that
each of the Rating Agencies shall have been given 10 days (or such shorter
period as may be acceptable to each Rating Agency) prior notice thereof and that
each of the Rating Agencies shall have notified the Company and the Trustee in
writing that such action will not result in a reduction, withdrawal or
qualification of the then current rating of the Certificates.

                  "Record Date": With respect to any Distribution Date, the
close of business on the Business Day immediately preceding such Distribution
Date; provided, however, that no Record Date shall be applicable to
distributions to be made on the Final Distribution Date.

                  "Regulation S": Regulation S promulgated under the Securities
Act.

                  "Regulation S Global Security": As defined in Section 5.1.

                  "Required Percentage": Unless otherwise specified herein, a
majority of the aggregate Voting Rights of the Certificates.

                                       11
<PAGE>   18

                  "Required Percentage--Amendment": At least 66_ of the
aggregate Voting Rights of the Certificates.

                  "Required Percentage--Direction of Trustee": A majority of the
aggregate Voting Rights of the Certificates.

                  "Required Percentage--Remedies": At least 66_% of the
aggregate Voting Rights of the Certificates.

                  "Required Percentage--Waiver": At least 66_% of the aggregate
Voting Rights of the Certificates.

                  "Responsible Officer": The chairman or any vice-chairman of
the board of directors, the chairman or any vice-chairman of the executive
committee of the board of directors, the chairman of the trust committee, the
president, any vice president, any assistant vice president, the treasurer, any
assistant treasurer, any trust officer, the controller or any assistant
controller or any other officer of the Trustee customarily performing functions
similar to those performed by any of the above designated officers and also
means, with respect to a particular corporate trust matter, any other officer to
whom such matter is referred because of his knowledge of and familiarity with
the particular subject.

                  "Rule 144": Rule 144 promulgated under the Securities Act.

                  "Rule 144A": Rule 144A promulgated under the Securities Act.

                  "Rule 144A Global Security": As defined in Section 5.1.

                  "Rule 144A Information": As defined in Section 4.6.

                  "S&P": Standard and Poor's Ratings Services, a division of The
McGraw-Hill Companies, or its successor.

                  "Securities Act": The Securities Act of 1933, as amended.

                  "Senior Notes": pound sterling 160,000,000 principal amount
of NRG Energy's Reset Senior Notes Due March 15, 2020, issued pursuant to the
Indenture.

                                       12
<PAGE>   19

                  "Settlement Date": March 15, 2005 or, if such day is not a
Business Day, the next succeeding Business Day.

                  "State": Any one of the fifty states of the United States or
the District of Columbia.

                  "Sterling Swap Payment": a semi-annual payment to be made by
the Trustee to the Swap Counterparty which is calculated to equal the Pound
Sterling semi-annual interest payment required to be made by the Company on the
Senior Notes.

                  "Successor Certificate": Of any particular Certificate, every
Certificate issued after, and evidencing all or a portion of the same interest
as that evidenced by, such particular Certificate; and, for the purposes of this
definition, any Certificate authenticated and delivered under Section 6.4 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Certificate
shall be deemed to evidence the same interest as such mutilated, destroyed, lost
or stolen Certificate.

                  "Swap Counterparty": Bank of America, N.A., or its successors.

                  "Swap Payment": Either of a Dollar Swap Payment or a Sterling
Swap Payment.

                  "Swap Termination Event": shall mean the termination of the
Currency Swap in accordance with its terms on March 15, 2005 (or, if such day is
not a Business Day, the next succeeding Business Day), unless earlier terminated
as a result of (a) the failure for 30 days by the Trustee to make a Sterling
Swap Payment thereunder, (b) the failure by the Swap Counterparty to make a
Dollar Swap Payment thereunder if such failure is not remedied on or before the
third Business Day after notice of such failure is given by the Trustee to the
Swap Counterparty, (c) the occurrence of a Conversion Event, (d) the occurrence
of a redemption of the Senior Notes as a result of an Optional Tax Redemption,
(e) the occurrence of a repurchase of the Senior Notes as a result of a Change
of Control Repurchase, (f) the commencement of insolvency, conservatorship or
receivership in respect of the Trust or (g) certain other events as described in
the Currency Swap.

                  "Swap Termination Payment": Following a Swap Termination Event
(other than as a result of a Conversion Event, Optional Tax Redemption or a
Change

                                       13
<PAGE>   20

of Control Repurchase), payment of the amount, if any, due to the Trustee
calculated as provided in the Currency Swap.

                  "Trust": NRG Energy Pass-Through Trust 2000-1, the trust
created hereby and to be administered hereunder for the benefit of the
Certificateholders, the corpus of which consists of the Trust Assets.

                  "Trust Assets": (i) the Senior Notes (including the rights
under the Early Redemption Right), (ii) the rights of the Trustee under the Call
Option, (iii) the rights of the Trustee under the Currency Swap and (iv) except
as otherwise provided by Section 3.3, any funds on deposit in the Certificate
Account, together with, in each case, any payments received by the Trustee in
connection with any such assets.

                  "Trust Termination Event": The first to occur of (a) the
discharge by the Company of all of its obligations in respect of the Senior
Notes following a Conversion Event, either by (i) payment in full of all amounts
thereby due and payable under the Senior Notes or (ii) payment of a lesser
amount which all Certificateholders agree shall be a complete satisfaction and
discharge of the Company's obligations in respect of the Senior Notes, or (b)
the final adjudication or settlement of all claims in respect of the Senior
Notes following a bankruptcy, reorganization or similar proceeding of the
Company, or (c) the occurrence of a redemption of the Senior Notes as a result
of an Optional Tax Redemption or (d) the occurrence of a repurchase of the
Senior Notes as a result of a Change of Control Repurchase.

                  "Trustee": The Bank of New York or any co-trustee appointed
pursuant to Section 9.8, until a successor Person shall have become the Trustee
pursuant to the applicable provisions of this Agreement, and thereafter
"Trustee" shall mean such successor Person.

                  "Uniform Commercial Code": The Uniform Commercial Code as in
effect in the relevant jurisdiction.

                  "United States": The United States of America (including the
States), its territories, its possessions and other areas subject to its
jurisdiction.

                  "Unpaid Amounts": Shall have the meaning set forth in the
Currency Swap.

                                       14
<PAGE>   21

                  "Voting Rights": Each Certificate shall have the right to one
vote for each $1,000 of the Certificate Principal Balance thereof.

                  "Voting Stock": With respect to any Person, capital stock of
any class or kind ordinarily having the power to vote for the election of
directors (or persons fulfilling similar responsibilities) of such Person.

                  Section 1.2 Rules of Construction. Unless the context
otherwise requires:

                          (1) a term has the meaning assigned to it;

                          (2) an accounting term not otherwise defined has the
              meaning assigned to it in accordance with generally accepted
              accounting principles as in effect in the United States from time
              to time;

                          (3) "or" is not exclusive;

                          (4) the words "herein", "hereof"', "hereunder" and
              other words of similar import refer to this Agreement as a whole
              and not to any particular Article, Section or other subdivision;

                          (5) "including" means including without limitation;
              and

                          (6) words in the singular include the plural, and
              words in the plural include the singular.

                                   ARTICLE II

                   Declaration of Trust; Issuance of Certificates

                  Section 1.3 Creation and Declaration of Trust; Purchase of the
                  Senior Notes.

                  (1) Pursuant to the terms of this Agreement, a business trust
to be known as "NRG Energy Pass-Through Trust 2000-1" is hereby created.

                                       15
<PAGE>   22

                  (2) Concurrently with the execution and delivery hereof, the
Trustee shall enter into the Purchase Agreement. Pursuant to the Purchase
Agreement, on the Closing Date, the Trustee shall (i) issue the Certificates,
each Certificate representing an undivided beneficial interest in the Trust
Assets, to or as requested by the Initial Purchasers, (ii) purchase the Senior
Notes from the Company, on behalf of and for the benefit of the
Certificateholders, in consideration for the net proceeds received by the Trust
from the issue of the Certificates and the Call Option, (iii) grant the Call
Option to the Callholder, on behalf of and for the benefit of the
Certificateholders, and (iv) enter into the Currency Swap on behalf of and for
the benefit of the Certificateholders. The Trust Assets shall be held by the
Trustee for the benefit of the Certificateholders.

                  (3) In connection with the establishment of the Trust, and for
the consideration stated in the Purchase Agreement, which the Trustee shall
cause to be remitted to the Company on the Closing Date, the Company shall, not
later than the Closing Date, issue the Senior Notes to the Trustee by physical
delivery of such Notes, duly executed, to the Trustee or its nominee.

                  (4) The Trustee hereby (i) accepts the trusts created
hereunder in accordance with the provisions of this Agreement, including,
without limitation, the Trustee's obligation, as and when the same may arise, to
make any payment or other distributions of Trust Assets as may be required
pursuant to this Agreement and the Certificates and (ii) agrees to perform the
duties herein required and that any failure to receive reimbursement of Eligible
Expenses under Section 9.5 hereof shall not release the Trustee from its duties
herein or therein.

                  Section 1.4 Representations and Warranties. (a) The Company
hereby represents and warrants to the Trustee that as of the Closing Date:

                          (1) the Company is a corporation duly organized,
              validly existing and in good standing under Delaware law;

                          (2) the execution and delivery of this Agreement by
              the Company and its performance of and compliance with the terms
              of this Agreement will not violate the Company's articles of
              incorporation or by-laws or constitute a default (or an event
              which, with notice or lapse of time, or both, would constitute a
              default) under, or result in the breach or acceleration of, any
              material contract, agreement or other instrument to which the

                                       16
<PAGE>   23

              Company is a party or which may be applicable to the Company or
              any of its assets;

                          (3) the Company has the full power and authority to
              enter into and consummate all transactions contemplated by this
              Agreement, has duly authorized the execution, delivery and
              performance of this Agreement and has duly executed and delivered
              this Agreement; this Agreement, upon its execution and delivery by
              the Company and assuming due authorization pursuant to the terms
              hereof, execution and delivery by the Trustee, will constitute a
              valid, legal and binding obligation of the Company, enforceable
              against it in accordance with the terms hereof, except as such
              enforcement may be limited by bankruptcy, insolvency,
              reorganization, receivership, moratorium or other laws relating to
              or affecting the rights of creditors generally, and by general
              equity principles (regardless of whether such enforcement is
              considered in a proceeding in equity or at law); and

                          (4) the Company is not in violation, and the execution
              and delivery of this Agreement by the Company and its performance
              and compliance with the terms of this Agreement will not
              constitute a violation, of any order or decree of any court or any
              order or regulation of any federal, State or municipal
              governmental agency having jurisdiction over the Company or its
              properties, other than those violations occurring in the ordinary
              course of business which would not reasonably be expected to have
              a material adverse effect on the condition (financial or
              otherwise) or operations of the Company or its properties or on
              the performance of its duties hereunder.

                  (2) It is understood and agreed that the representations and
warranties set forth in this Section 2.2 shall survive delivery of the
respective documents to the Trustee and shall inure to the benefit of the
Trustee on behalf of the Certificateholders.

                  Upon discovery by either the Company or the Trustee of a
breach of any of the foregoing representations and warranties which materially
and adversely affects the interests of the Certificateholders, the party
discovering such breach shall give prompt written notice thereof to the other
parties.

                  Section 1.5 Breach of Representation, Warranty or Covenant.
Within 60 days of the earlier of discovery by the Company or receipt of notice
by the Company of a breach of any of its representations or warranties set forth
in Section

                                       17
<PAGE>   24

2.2 that materially and adversely affects the interests of the
Certificateholders, the Company shall cure such breach in all material respects.

                  Section 1.6 Agreement to Authenticate and Deliver
Certificates. The Trustee hereby agrees and acknowledges that it will,
concurrently with the receipt by it of the Senior Notes, the entering into of
the Currency Swap and the granting of the Call Option, cause to be authenticated
and delivered to or upon the order of the Initial Purchasers, in exchange for
the consideration set forth in the Purchase Agreement, Certificates duly
authenticated by or on behalf of the Trustee in authorized denominations
evidencing ownership of the entire Trust, all in accordance with the terms and
subject to the conditions of Sections 6.2 and 6.10.

                                   ARTICLE III

                             Administration of Trust

                  Section 1.7 Administration of Trust.

                  (1) The Trustee shall administer the Trust Assets for the
benefit of the Certificateholders. Subject to Article IX hereof and the terms of
the Certificates, the Call Option and the Currency Swap, the Trustee shall have
full power and authority to do or cause to be done any and all things in
connection with such administration which it deems necessary to comply with the
terms of this Agreement.

                  Section 1.8 Receipt of Trust Asset Payments. The Trustee shall
receive and accept, for the benefit of Certificateholders, all payments made
under the Trust Assets in a manner consistent with the terms of this Agreement
and such Trust Assets.

                  Section 1.9 Certificate Account.

                  (1) The Trustee shall establish and maintain an Eligible
Account or Eligible Accounts held in trust for the benefit of the
Certificateholders (each, a "Certificate Account"). The Trustee on behalf of
such Certificateholders shall possess all right, title and interest in all funds
on deposit from time to time in each Certificate Account and in all proceeds
thereof. Each Certificate Account shall be under the sole dominion and control
of the Trustee for the benefit of the Certificateholders. The Trustee shall
deposit or cause to be deposited in each

                                       18
<PAGE>   25

Certificate Account promptly (and in no event later than the close of business
(New York City time) on the day of receipt of such amounts) all amounts
collected with respect to the Trust Assets, including:

                          (1) for so long as the Senior Notes are denominated in
              Pounds Sterling and no Swap Termination Event has occurred, the
              semi-annual interest payments on the Senior Notes and payments of
              or in respect of the principal of the Senior Notes made by the
              Company thereunder and received by the Trustee in respect of the
              Senior Notes and, after compliance by the Trustee with the next
              succeeding paragraph, any Dollar Swap Payment or other Dollar
              amount paid by the Swap Counterparty to the Trustee under the
              Currency Swap;

                          (2) if a Swap Termination Event (other than as a
              result of a Conversion Event, an Optional Tax Redemption or a
              Change of Control Repurchase) has occurred, the semi-annual
              interest payments on the Senior Notes and payments on or in
              respect of the principal of the Senior Notes made by the Company
              thereunder and received by the Trustee or, if applicable, any Swap
              Termination Payment or Unpaid Amounts;

                          (3) if a Conversion Event has occurred, the
              semi-annual interest payments on the Senior Notes and payments of
              or in respect of the principal of the Senior Notes made by the
              Company thereunder and received by the Trustee or, if applicable,
              any Unpaid Amounts;

                          (4) all Option Proceeds; and

                          (5) all Liquidation Proceeds.

                  The Trustee shall withdraw or cause to be withdrawn from the
relevant Certificate Account, on the date of payment therefor, all Sterling Swap
Payments to be paid by the Trustee to the Swap Counterparty.

                  The proceeds of the Call Price shall be invested in Permitted
Investments which shall mature no later than the Final Distribution Date and may
be so invested as directed by the Callholder. Any interest or investment income
received on the Call Price from the Business Day prior to the Settlement Date to
the Settlement Date deposited in the Certificate Account will not constitute
property of the

                                       19
<PAGE>   26

Trust and shall not be available to Certificateholders. The Trustee shall remit
all such income to the Callholder on the Final Distribution Date.

                  It is understood and agreed that payments in the nature of
prepayment or redemption penalties, late payment charges or assumption fees
which may be received by the Trustee shall be deposited by the Trustee in a
Certificate Account and shall not be retained by the Trustee for its own
account.

                  If, at any time, any Certificate Account ceases to be an
Eligible Account, the Trustee shall within 10 Business Days (or such longer
period, not to exceed 30 calendar days, as to which the Rating Agency Condition
is met) establish a new Certificate Account meeting the conditions for an
Eligible Account and transfer any cash and any investments (as described in the
second preceding paragraph) on deposit in the ineligible Certificate Account to
such new Certificate Account, and from the date such new Certificate Account is
established, it shall be a Certificate Account.

                  (2) The Trustee shall give notice to the Company and the
Rating Agencies of any proposed change to the location of any Eligible Account
constituting a Certificate Account and shall not effect such change unless the
Rating Agency Condition is satisfied.

                  (3) As provided in the Currency Swap, on each March 15 and
September 15 (or, the immediately succeeding Business Day, if such March 15 or
September 15 is not a Business Day), commencing September 15, 2000, the Swap
Counterparty will pay a Dollar Swap Payment to the Trustee, and the Trustee will
pay a Sterling Swap Payment to the Swap Counterparty. Following a Swap
Termination Event under the Currency Swap, the Currency Swap will terminate, and
no further scheduled payments will be owed by the Trustee or the Swap
Counterparty under the Currency Swap (it being understood that any unpaid Dollar
Swap Payment or other Dollar amount owing by the Swap Counterparty at the time
of such Swap Termination Event shall remain due and owing and that, in the case
of a Swap Termination Event (other than as a result of a Conversion Event, an
Optional Tax Redemption or a Change of Control Repurchase), the Trustee on
behalf of the Certificateholders shall have a claim against the Swap
Counterparty for any Swap Termination Payment).

                  (4) Upon the occurrence of a Conversion Event, the Senior
Notes shall automatically become Dollar denominated Senior Notes with a
principal

                                       20
<PAGE>   27

amount equal to the Certificate Principal Amount, effective from the date of the
immediately preceding interest payment date with respect to the Senior Notes,
with an annual interest rate of 8.70% until the Final Distribution Date, payable
on March 15 and September 15 of each year. Upon such conversion, all
distributions on the Certificates shall be payable from amounts paid by the
Company under the Senior Notes and received by the Trustee in respect of the
Senior Notes or, if applicable, any Unpaid Amounts.

                  Section 1.10 Repurchase of Certificates Upon a Change of
                               Control.

                  (a) Upon a Change of Control, each Holder shall have the right
to request the Trustee to repurchase such Holder's Certificates, in whole or in
part, at 101% of the principal amount plus accrued interest thereon, if any, to
the date of such repurchase, in accordance with the terms set forth in
subsection (b) below. Subsequent to such exercise on the part of any Holder, the
Trust shall exercise its option to require the Company to repurchase a pro rata
portion of the Senior Notes at 100% of the applicable principal amount thereof
plus accrued interest thereon, if any, to the date of such repurchase.
Concurrently, the Trustee shall require the Company to make a Dollar payment
equal to 1% of the principal amount of the Certificates to be repurchased. The
Trustee shall pay to such Holder the repurchase price of the Certificates from
the Dollar proceeds received from (a) the Swap Counterparty in exchange for the
Trustee's payment to the Swap Counterparty of the repurchase price and interest
received in Pounds Sterling from the Company's repurchase of such Senior Notes
and (b) the payment received from the Company in Dollars.

                  (1) Within 30 days following any Change of Control, the
Company shall notify the Trustee of such Change of Control, and the Trustee,
within 15 days of receipt of notice of a Change of Control from either the
Company or the Holder or Holders of not less than 10% of the principal amount of
the outstanding Certificates, shall mail a notice to each Holder stating:

                        (1) that a Change of Control has occurred and that such
Holder has the right to request the Trust to repurchase such Holder's
Certificates at a repurchase price in Dollars equal to 101% of the principal
amount thereof plus accrued interest, if any, to the date of repurchase (the
"Change of Control Offer");

                        (2) the circumstances and relevant facts regarding such
Change of Control (including information with respect to pro forma historical

                                       21
<PAGE>   28

income, cash flow and capitalization of the Issuer after giving effect to such
Change of Control), if such information shall have been furnished to the
Trustee;

                        (3) the repurchase date (which shall be a Business Day
and be not earlier than 30 days or later than 60 days from the date such notice
is mailed) (the "Repurchase Date");

                        (4) that any Certificate not tendered for purchase will
continue to accrue interest;

                        (5) that interest on any Certificate accepted for
payment pursuant to the Change of Control Offer shall cease to accrue after the
repurchase of such Certificate on the Repurchase Date, if the repurchase
proceeds are paid to the Trustee on or prior to such date;

                        (6) that Holders electing to have a Certificate
purchased pursuant to a Change of Control Offer shall be required to surrender
the Certificate, with the form entitled "Option of Holder to Elect Purchase" on
the reverse of the Certificate completed, to the Trustee at the address
specified in the notice prior to the close of business on the Business Day 10
days prior to the Repurchase Date;

                        (7) that a Holder shall be entitled to withdraw its
election if the Trustee receives, not later than the close of business on the
third Business Day (or such shorter period as may be required by applicable law)
preceding the Repurchase Date, a telegram, telex, facsimile transmission or
letter setting forth the name of the Holder, the principal amount of
Certificates the Holder delivered for repurchase, and a statement that such
Holder is withdrawing its election to have such Certificates repurchased; and

                        (8) that Holders that elect to have their Certificates
repurchased only in part will be issued new Certificates in a principal amount
equal to the unpurchased portion of the Certificates surrendered.

                  (2) On the Repurchase Date, the Trust shall (i) accept for
payment Certificates or portions thereof tendered pursuant to the Change of
Control Offer, (ii) make and receive payments as described in subsection (a)
above, and (iii) promptly authenticate and mail to such Holders new Certificates
in a principal amount equal to any unpurchased portion of the Certificates
surrendered. The

                                       22
<PAGE>   29

Company shall publicly announce the results of the Change of Control Offer on or
as soon as practicable after the Repurchase Date.

                  (3) The Company shall comply with Rule 14e-1 under the
Exchange Act and any other applicable laws and regulations in the event that a
Change of Control occurs and the Trust is required to make a Change of Control
Offer.

                  Section 1.11 Realization Upon Defaulted Senior Notes. Subject
to the provisions of Article IX hereof, the Trustee, on behalf of the
Certificateholders, shall take such reasonable steps as are necessary to receive
payment or to permit recovery with respect to the Senior Notes; provided,
however, that if, notwithstanding the Trustee's efforts, payment has not been
made on the Senior Notes and an Event of Default has occurred, the Trustee's
sole obligation in respect of the Senior Notes shall be to undertake the
procedures set forth in Section 6.13 hereof.

                  Section 1.12 Access to Certain Documentation. The Trustee
shall provide to any federal, State or local regulatory authority that may
exercise authority over any Certificateholder access to the documentation
regarding the Trust Assets required by applicable laws and regulations. Such
access shall be afforded without charge, but only upon reasonable request and
during normal business hours at the offices of the Trustee. In addition, access
to the documentation regarding the Trust Assets will be provided to any
Certificateholder upon reasonable request during normal business hours at the
Corporate Trust Office of the Trustee at the expense of the Certificateholder
requesting such access. Additionally, the Trustee shall provide at the request
of any Certificateholder without charge to such Certificateholder the name and
address of each Certificateholder of Certificates hereunder as recorded in the
Certificate Register for purposes of contacting the other Certificateholders
with respect to their rights hereunder or for the purposes of effecting
purchases or sales of the Certificates, subject to the transfer restrictions set
forth herein. The Company shall assist the Trustee in fulfilling any such
request.

                  Section 1.13 Expenses of Trust. The Company hereby agrees to
pay to each Person to whom the Trust becomes indebted or liable the full amount,
when and as due, of any indebtedness, expenses or liabilities of the Trust,
other than under the Certificates, the Currency Swap or the Call Option. The
Trust hereby agrees not to incur any such other debt.

                                       23
<PAGE>   30

                  Section 1.14 No Merger or Consolidation of Trust. The Trust
may not merge with or into, convert into, consolidate or amalgamate with or be
replaced by, or convey, transfer or lease its properties and assets
substantially as an entirety to, any other Person.

                  Section 1.15 Exchange Rate Agency Agreement. The Trust will
appoint the Trustee as the agent under an exchange rate agency agreement, and
will enter into such an agreement with the Trustee, provided that such agreement
shall have such terms and provisions as are reasonably acceptable to the
Trustee, promptly upon the occurrence of any event that, with the passage of
time or the giving of notice or both, would constitute, and in no event later
than the occurrence of, a Swap Termination Event (other than as a result of a
Conversion Event, an Optional Tax Redemption or a Change of Control
Repurchase).

                                   ARTICLE IV

          Distributions and Reports to Certificateholders; Transfer of
          Certificates

                  Section 1.16 Distributions.

                  (1) On each Distribution Date and so long as the Trustee shall
have received the Pound Sterling Interest Payment from the Company, the Trustee
shall distribute to the Certificateholders, to the extent of Available Funds, if
any, the Dollar Distribution; provided, however, that if any such date is not a
Business Day, the Trustee shall make such distribution on the next succeeding
Business Day; provided, further, that if the Trustee has not received a Dollar
Swap Payment or other Dollar amount owed by the Swap Counterparty to the Trustee
under the Currency Swap by 11:00 a.m. (New York City time) on such Distribution
Date (or, if such Distribution Date occurs on or after a Conversion Event, if
the Trustee has not received any payment owed on the Senior Notes by 11:00 a.m.
(New York City time) on such Distribution Date), or by 11:00 a.m. (New York City
time) on any Business Day succeeding such Distribution Date, as applicable, the
Trustee shall upon receipt of such funds make such distribution no later than
the next succeeding Business Day (and no additional amounts shall accrue on the
Certificates or be owed to Certificateholders as a result of any such delay);
and provided, further, that, on each Distribution Date occurring on or after a
Swap Termination Event (other than as a result of a Conversion Event, an
Optional Tax Redemption or a Change of Control Repurchase), the Trustee shall
distribute to the Certificateholders, to the extent of

                                       24
<PAGE>   31

Available Funds, if any, a semi-annual Pounds Sterling payment calculated at an
annual interest rate as described in the Indenture on the basis of a 365 or
366-day, as applicable, year and the actual number of days elapsed due on the
principal amount of the Senior Notes (subject to the provisos set forth above).
Any funds held by the Trustee hereunder as a result of a delay shall be held
uninvested and without liability for interest thereon.

                  (2) Dollar Distributions or Pounds Sterling distributions, as
the case may be, to the Certificateholders with respect to each Distribution
Date will be made to the Certificateholders of record on the related Record Date
(except as otherwise provided in Section 10.1 hereof in respect of the Final
Distribution).

                  (3) All Dollar Distributions or Pounds Sterling distributions,
as the case may be, to Certificateholders shall be allocated pro rata among the
Certificateholders based on the respective principal balance of the Certificates
held by each such Certificateholder as of the Record Date with respect to such
Distribution Date.

                  (4) Subject to Section 4.1(a) and Section 4.2, the Trustee
will pay in immediately available funds on each Distribution Date all amounts
payable to each Certificateholder with respect to any Certificate held by such
Certificateholder or its nominee (without the necessity for any presentation or
surrender thereof or any notation of such payment thereon) in the manner and at
the address as each Certificateholder may from time to time direct the Trustee
in writing fifteen days prior to such Distribution Date requesting that such
payment will be so made and designating the bank account to which such payment
shall be made. The Trustee shall be entitled to rely on the last instruction
delivered by the Certificateholder pursuant to this Section 4.1(d) unless a new
instruction is delivered at least fifteen days prior to a Distribution Date.

                  (5) The rights of the Certificateholders to receive Dollar
Distributions or Pounds Sterling distributions, as the case may be, in respect
of the Certificates, and all interests of the Certificateholders in such Dollar
Distributions or Pounds Sterling distributions, as the case may be, shall be as
set forth herein. The Trustee shall in no way be responsible or liable to the
Certificateholders nor shall any Certificateholder in any way be responsible or
liable to any other Certificateholder in respect of amounts previously
distributed on the Certificates based on their respective Certificate Principal
Balances.

                                       25
<PAGE>   32

                  Section 1.17 Final Distributions.

                  (1) On the Final Distribution Date, the Trustee shall
distribute to Certificateholders (in addition to the Dollar Distribution or
Pounds Sterling distribution, as the case may be, as provided in Section 4.1) an
amount equal to the Option Proceeds or the Liquidation Proceeds, as the case may
be, plus any other amount received in respect of the Currency Swap received on
the Final Distribution Date, plus any additional amounts remaining in the
Certificate Account on the Final Distribution Date after the payment of amounts,
if any, due to the Callholder pursuant to Section 3.3 hereof; provided, however,
if the Final Distribution Date is not a Business Day, the Trustee shall make
such distribution on the next succeeding Business Day; and provided, further,
that if the Trustee has not received such amounts by 11:00 a.m. (New York City
time) on any Business Day , the Trustee shall upon receipt of such funds make
such distribution no later than the next succeeding Business Day (and no
additional amounts shall accrue on the Certificates or be owed to
Certificateholders as a result of any such delay).

                  (2) Except as otherwise provided in Article X, the Final
Distribution shall be made to each Certificateholder only upon the presentation
and surrender of such Holder's Certificates at a designated office of the
Trustee in New York City or such other office of the Trustee as may be specified
in the notice referred to in Section 11.6.

                  (3) Except as otherwise provided in Article X, in connection
with the Final Distribution, no later than 30 days preceding the Final
Distribution Date, the Trustee shall give notice to each Certificateholder:

                         (1) of the date that the Trustee expects that the Final
              Distribution will be made, but only upon presentation and
              surrender of Certificates at the Corporate Trust Office or such
              other office of the Trustee specified in such notice;

                         (2) of the expected amount of the Final Distribution
              for each Certificate per initial $100,000 Certificate Principal
              Balance; and

                         (3) that distributions will be made to
              Certificateholders only upon presentation and surrender of the
              Certificate or Certificates of each such Certificateholder at the
              Corporate Trust Office or such other specified office or agency of
              the Trustee.

                                       26
<PAGE>   33

                  (4) Any funds not distributed to a Certificateholder on the
Final Distribution Date because of the failure of such Certificateholder to
tender its Certificate or Certificates shall, on such date, be set aside and
held in trust and credited to the account of such non-tendering
Certificateholder. If any Certificates as to which notice has been given
pursuant to this Section 4.2 shall not have been surrendered for cancellation
within six months after the date specified in such notice, the Trustee shall
give a second notice to the remaining non-tendering Certificateholders to
surrender their Certificates for cancellation in order to receive the Final
Distribution with respect thereto. If within one year after the second notice
all such Certificates shall not have been surrendered for cancellation, subject
to applicable laws with respect to escheat of funds, such amounts shall be
discharged from the Trust and be paid by the Trustee to the Company; and such
Certificateholder shall thereafter, as an unsecured general creditor, look only
to the Company for payment thereof (but only to the extent of the amounts so
paid to the Company), and all liability of the Trustee with respect to such
trust money shall thereupon cease. The costs and expenses of maintaining the
funds in trust shall be paid from the assets remaining in trust. No interest
shall accrue on or be payable to any Certificateholder on any amount held in
trust as a result of such Certificateholder's failure to surrender its
Certificate or Certificates for the Final Distribution in respect thereof in
accordance with this Section 4.2.

                  Section 1.18 Reports to Certificateholders. On the Business
Day following each Distribution Date, the Trustee shall forward or cause to be
forwarded to the Company and each Certificateholder a statement (which is based
on information provided to the Trustee by the Company for such purpose) setting
forth the amount of the distribution on such Distribution Date to
Certificateholders allocable to principal of and interest on the Senior Notes
and the amount of aggregate unpaid interest accrued on the Notes as of such
Distribution Date. Such amounts shall be expressed as a Dollar amount per
minimum denomination of Certificates or for such other specified portion
thereof. Within the prescribed period of time for tax reporting purposes after
the end of each calendar year during the term of this Agreement, the Trustee
shall furnish (or cause to be furnished), to each Person who at any time during
such calendar year shall have been a holder of record of Certificates and
received any payment thereon, a statement (prepared by the Company and delivered
to the Trustee) containing such information as may be required by the Code and
applicable Treasury Regulations to enable such Certificateholder to prepare its
federal income tax returns.

                                       27
<PAGE>   34

                  Section 1.19 Compliance with Withholding Requirements; Tax
                               Treatment and Reporting.

                  (1) Notwithstanding any other provision of this Agreement to
the contrary, the Trustee shall comply with all federal withholding requirements
respecting distributions to beneficial owners of Certificates that the Trustee
reasonably believes are applicable under the Code (including any requirements to
withhold at reduced rates upon receipt of appropriate federal tax forms). The
consent of Certificateholders or beneficial owners of Certificates shall not be
required for such withholding. In the event the Trustee does withhold any amount
from distributions to any beneficial owners of Certificates pursuant to federal
withholding requirements, the Trustee shall indicate in the statement required
pursuant to Section 4.3 the amount so withheld.

                  (2) The Trustee shall (i) maintain (or cause to be maintained)
the books of the Trust on a calendar year basis using the accrual method of
accounting, (ii) pursuant to instructions from the Company, file such tax
returns relating to the Trust and make such elections as may from time to time
be required or appropriate under any applicable State or federal statute or rule
or regulation thereunder so as to maintain the Trust's characterization as a
grantor trust for federal income tax purposes, (iii) cause such tax returns to
be signed in the manner required by law, and (iv) collect and pay over (or cause
to be collected and paid over) to the appropriate governmental authority any
withholding tax as described in and in accordance with Section 4.4(a) with
respect to income or distributions to Certificateholders.

                  Section 1.20 Transfer of Certificates.

                  (1) General. A Certificateholder may, in any transaction or
series of transactions, directly or indirectly (each of the following, a
"transfer"), (i) sell, assign or otherwise in any manner dispose of all or any
part of its interest in any Certificate issued to it, whether by act, deed,
merger or otherwise, or (ii) mortgage, pledge or create a lien or security
interest in such beneficial interest, in each case, only if such transfer
satisfies the conditions set forth in this Section 4.5. No purported transfer of
any interest in any Certificate or any portion thereof which is not made in
accordance with this Section 4.5 shall be given effect by or be binding upon the
Trust or the Trustee, and any such purported transfer shall be null and void ab
initio and vest in the transferee no rights against the Trust or the Trustee.

                                       28
<PAGE>   35

                  (2) Conditions to Transfer. Subject to the requirements
contained in Articles V and VI hereof, a Certificateholder may sell or otherwise
transfer a Certificate or its beneficial interest in a Certificate only (A)(i)
to the Trust, (ii) pursuant to a registration statement which has been declared
effective under the Securities Act, (iii) for so long as the Certificates are
eligible for resale pursuant to Rule 144A, to a person it reasonably believes is
a QIB that purchases for its own account or for the account of a QIB to whom
notice is given that the transfer is being made in reliance on Rule 144A, (iv)
pursuant to offers and sales to non-US persons that occur outside the US within
the meaning of Regulation S or (v) pursuant to any other available exemption
from the registration requirements of the Securities Act.

                  (3) Invalid Transfers. If the Trustee or the Certificate
Registrar determines that (i) a transfer or attempted or purported transfer of
any interest in any Certificate was consummated in reliance on an incorrect form
or certification from the transferee or purported transferee, (ii) a transferee
failed to deliver to the Trustee or the Certificate Registrar any form or
certificate required to be delivered hereunder or (iii) the holder of any
interest in a Certificate is in breach of any representation or agreement set
forth in any certificate or any deemed representation or agreement of such
holder, the Certificate Registrar will not register such attempted or purported
transfer, and, if a transfer has been registered, such transfer shall be
absolutely null and void ab initio and shall vest no rights in the purported
transferee (such purported transferee, a "Disqualified Transferee"), and the
last preceding Holder of such Certificate that was not a Disqualified Transferee
shall be restored to all rights as a Holder thereof retroactively to the date of
transfer of such Certificate by such Holder, except as to any payments made to
such transferee prior to receipt by the Trustee or the Certificate Registrar of
notice or other evidence that such transferee was a Disqualified Transferee.

                  In addition, the Trustee may require that the interest in the
Certificate purported to be transferred to a Disqualified Transferee be
transferred to any Person (other than the Company or one of its Affiliates)
designated by the Company at a price determined by the Company based upon its
estimation of the prevailing price of such interest and each Certificateholder,
by acceptance of an interest in a Certificate, authorizes the Trustee to take
such action. In any case, neither the Trustee nor the Certificate Registrar will
be held responsible for any losses that may be incurred as a result of any
required transfer under this Section 4.5(c).

                  Notwithstanding anything contained herein to the contrary,
neither the Trustee nor the Certificate Registrar shall be responsible for
ascertaining whether or

                                       29
<PAGE>   36

not any transfer complies with the registration provisions of or exemptions
from, or is otherwise not subject to the provisions of, the Securities Act or
applicable State securities law; provided that if a certificate is specifically
required to be delivered to the Trustee or the Certificate Registrar by a
purchaser or transferee of a Certificate, the Trustee or the Certificate
Registrar shall be under a duty to examine the same to determine whether it
conforms to the requirements of this Agreement and shall promptly notify the
party delivering the same if such certificate does not conform.

                  Section 1.21 Rule 144A Information. At any time when the Trust
is not subject to Section 13 or 15(d) of the Exchange Act, upon the request of
any Certificateholder and provided that the Company shall have complied with the
succeeding sentence, the Trust shall promptly furnish to such Certificateholder
or to a prospective purchaser of a Certificate designated by such
Certificateholder, as the case may be, the information required to be delivered
pursuant to paragraph (d)(4) of Rule 144A in order to permit compliance by such
Certificateholder with Rule 144A in connection with the resale of such
Certificate by such Certificateholder. The Company will provide the Trust, in a
timely manner, with the information required to be delivered by the Trust under
this Section 4.6.

                                    ARTICLE V

                                 Security Forms

                  Section 1.22 Forms Generally. The Certificates and the
Trustee's certificates of authentication thereof shall be in substantially the
forms set forth in Exhibit A, with such appropriate legends, insertions,
omissions, substitutions and other variations as are required or permitted by
this Agreement, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers executing such
Certificates, as evidenced by their execution of the Certificates.

                  Certificates offered and sold in their initial distribution in
reliance on Rule 144A shall be issued in the form of one or more Restricted
Global Securities (collectively, and, together with their Successor
Certificates, the "Rule 144A Global Security"). Certificates offered and sold in
their initial distribution in reliance on Regulation S shall be issued in the
form of one or more Regulation S Global Securities (collectively, and, together
with their Successor Certificates, the "Regulation S

                                       30
<PAGE>   37
Global Security"). Each of the Rule 144A Global Security and the Regulation S
Global Security shall be in fully registered form without interest coupons,
substantially in the form of Certificate set forth in Exhibit A, with such
applicable legends as are provided for in Sections 5.2 and 6.8(a), except as
otherwise permitted herein, and initially shall be registered in the name of the
Depository or its nominee and deposited with The Bank of New York, as custodian
for the Depository, at the Corporate Trust Office of The Bank of New York, duly
executed by the Trust and authenticated by the Trustee as hereinafter provided,
for credit by the Depository to the respective accounts of beneficial owners of
the Certificates represented thereby (or such other accounts as they may
direct).

                  Section 1.23 Restricted Legend. (a) All Certificates initially
issued hereunder shall, upon issuance, bear the applicable legends as are
provided in Sections 5.2(c) and 6.8(a), and such legends shall not be removed
except as set forth in Section 5.2(b) or unless the Trustee determines otherwise
based upon a Company Order (which shall state that such Certificate may be
issued without such legend in accordance with applicable law) delivered to the
Trustee (and the Certificate Registrar, if other than the Trustee).

                  (1) Unless with respect to the whole or any portion of any
Certificate that bears or is required to bear the applicable legends as are
provided in Section 5.2(c) the Trustee determines otherwise as provided in
Section 5.2(a), such legends shall be removed by the Trustee (i) in the case of
the Rule 144A Global Security or any Definitive Certificate issued in exchange
for an interest therein, upon presentation thereof by the Certificateholder to
the Trustee at any time on or after the occurrence of the "Resale Restriction
Termination Date" specified in such legends, and (ii) in the case of the
Regulation S Global Security or any Definitive Certificate issued in exchange
for an interest therein, upon presentation thereof by the Certificateholder to
the Trustee at any time on or after the expiration of the "distribution
compliance period" (within the meaning of Regulation S ). If a holder of a
beneficial interest in the Rule 144A Global Security wishes at any time to
transfer such interest to a Person who wishes to take delivery thereof in the
form of a beneficial interest in the Regulation S Global Security, or if a
holder of a beneficial interest in the Regulation S Global Security wishes at
any time to transfer such interest to a Person who wishes to take delivery
thereof in the form of a beneficial interest in the Rule 144A Global Security,
upon receipt by the Trustee of (A) written instructions given in accordance with
the rules and procedures of the Depository (together with, as applicable, the
rules and procedures of Euroclear and Clearstream, Luxembourg, the "Applicable
Procedures") from the applicable Participant directing

                                       31
<PAGE>   38

the Trustee to cause to be credited to another account of a Participant a
beneficial interest in the Regulation S Global Security or the Rule 144A Global
Security (as the case may be) equal to that of the beneficial interest in the
Rule 144A Global Security or the Regulation S Global Security (as the case may
be) to be so transferred, (B) a written order given in accordance with the
Applicable Procedures containing information regarding such other account, as
well as the account of Euroclear or Clearstream, Luxembourg (as the case may be)
for which such other account is held, to be credited with, and the account of
such applicable Participant to be debited for, such beneficial interest, and (C)
a certificate satisfactory to the Company, the Trust and the Trustee, as to such
transfer's compliance with the registration requirements of the Securities Act,
given by the transferor of such beneficial interest, the Trustee shall (1)
reduce or increase (as the case may be) the principal amount of the Rule 144A
Global Security, and increase or reduce (as the case may be) the principal
amount of the Regulation S Global Security, in each case by an amount equal to
the principal amount of the beneficial interest in the Rule 144A Global Security
or the Regulation S Global Security (as the case may be) to be so transferred,
as evidenced as provided in Section 6.8(c), and (2) instruct the Depository to
credit and debit such beneficial interests to the respective accounts specified
in the instructions referred to above.

                  (2) Each Certificate initially issued hereunder shall, upon
issuance, bear the following legends:

                  THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
SECURITIES LAWS. NEITHER THIS CERTIFICATE NOR ANY INTEREST OR PARTICIPATION
HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

                  THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES
TO OFFER, SELL OR OTHERWISE TRANSFER THIS CERTIFICATE, PRIOR TO THE DATE (THE
"RESALE RESTRICTION TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE TRUST OR ANY AFFILIATE
OF THE TRUST WAS THE OWNER OF THIS CERTIFICATE (OR ANY PREDECESSOR OF

                                       32
<PAGE>   39

THIS CERTIFICATE) OR THE EXPIRATION OF SUCH SHORTER PERIOD AS MAY BE PRESCRIBED
BY RULE 144(K), OR ANY SUCCESSOR PROVISION THEREOF, UNDER THE SECURITIES ACT,
ONLY (A) TO THE TRUST, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THIS CERTIFICATE
IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES
IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-US
PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S
UNDER THE SECURITIES ACT, OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE
SECURITIES LAWS OF THE UNITED STATES, SUBJECT TO THE RIGHT OF THE TRUST, THE
COMPANY AND THE TRUSTEE PRIOR TO SUCH OFFER, SALE OR TRANSFER (I) PURSUANT TO
CLAUSE (D) OR (E) ABOVE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATIONS OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM AND (II) IN
EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE AS TO COMPLIANCE WITH
CERTAIN CONDITIONS TO TRANSFER IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO
THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF A HOLDER AFTER THE
RESALE RESTRICTION TERMINATION DATE OR SUCH EARLIER TIME AS DETERMINED BY THE
TRUST IN ACCORDANCE WITH APPLICABLE LAW.

                                   ARTICLE VI

                                The Certificates

Section 1.24 Designation; Certificate Principal Amount and Denominations. There
is hereby created a series of trust certificates to be issued pursuant to this
Agreement to be known as "8.70% Remarketable or Redeemable

                                       33
<PAGE>   40

Securities ("ROARS") Due March 15, 2005". The Certificates shall be issued in
the form of one or more Global Securities as set forth in Article V and Section
6.8 hereof. Except as provided in Section 6.4, the maximum Certificate Principal
Balance that may be authenticated and delivered under this Agreement is
$250,000,000. The Certificates are issuable in minimum denominations of $100,000
and in integral multiples of $1,000 in excess thereof.

                  Section 1.25 Execution, Authentication and Delivery.

                  (1) The Certificates shall be executed by the Trustee, on
behalf of the Trust. The signature may be manual or facsimile. Certificates
bearing the manual or facsimile signature of individuals who were at any time
the proper officers of the Trustee shall be binding, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Certificates or did not hold such offices at
the date of such Certificates.

                  (2) The Certificates that are executed, authenticated and
delivered by the Trustee to or upon the Company Order on the Closing Date shall
be dated the Closing Date. All other Certificates that are executed and
authenticated after the Closing Date for any other purpose under the Agreement
shall be dated the date of their authentication. Except as provided in Section
6.4, the Certificates shall all be originally issued on the Closing Date.

                  (3) No Certificate shall be entitled to any benefit under this
Agreement or be valid or obligatory for any purpose, unless there appears on
such Certificate a certificate of authentication substantially in one of the
forms provided for herein executed by the Trustee by the manual signature of one
of its authorized signatories, and such certificate upon any Certificate shall
be conclusive evidence, and the only evidence, that such Certificate has been
duly authenticated and delivered hereunder and is entitled to the benefits of
this Agreement.

                  Section 1.26 Registration; Registration of Transfer and
                               Exchange.

                  (1) The Trustee shall cause to be kept in the Corporate Trust
Office a register for Certificates (the registers maintained in such office and
in any other office or agency of the Trustee in New York, New York being herein
sometimes collectively referred to as the "Certificate Register") in which a
transfer agent and registrar (which may be the Trustee) (the "Certificate
Registrar") shall provide for the registration of the Certificates and the
registration of transfers and exchanges

                                       34
<PAGE>   41

of the Certificates. The Trustee is hereby initially appointed Certificate
Registrar for the purpose of registering the Certificates and transfers and
exchanges of Certificates as herein provided; provided, however, that the
Trustee may appoint one or more co-Certificate Registrars. Upon any resignation
of any Certificate Registrar, the Company shall promptly appoint a successor or,
in the absence of such appointment, arrange for an Affiliate of the Company to
assume the duties of Certificate Registrar.

                  (2) If a Person other than the Trustee is appointed by the
Company as Certificate Registrar, the Company will give the Trustee prompt
written notice of the appointment of such Certificate Registrar and of the
location, and any change in the location, of the Certificate Register, and the
Trustee shall have the right to rely upon a certificate executed on behalf of
the Certificate Registrar by an Executive Officer thereof as to the names and
addresses of the Holders of the Certificates and the principal amounts and
numbers of such Certificates.

                  (3) Every Certificate presented or surrendered for
registration of transfer or exchange shall (if so required by the Company, the
Trustee or the Certificate Registrar) be duly endorsed, or be accompanied by a
written instrument of transfer in form satisfactory to the Company, the Trustee
and the Certificate Registrar, duly executed, by the Holder thereof or his
attorney duly authorized in writing, with such signature guaranteed by a
brokerage firm or financial institution that is a member of a Securities
Approved Medallion Programs, such as the Securities Transfer Agents Medallion
Program (STAMP), the Stock Exchange Medallion Program (SEMP) or the New York
Stock Exchange Inc. Medallion Signature Program (MSP).

                  (4) Upon surrender for registration of transfer of any
Certificate at the office or agency of the Trustee and subject to Section 4.5
and Article V, if the requirements of Section 8-401(a) of the Uniform Commercial
Code are met to the satisfaction of the Company, the Trustee shall execute, and
the Trustee shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Certificates of any authorized
denominations, of a like aggregate Certificate Principal Balance.

                  (5) At the option of the Holder, Certificates (other than the
Global Securities) may be exchanged for other Certificates of any authorized
denomination or denominations of like tenor and aggregate Certificate Principal
Balance and bearing the applicable legends set forth in Section 5.2(c) upon
surrender

                                       35
<PAGE>   42

of the Certificates to be exchanged at the office or agency of the Trustee
maintained for such purpose.

                  (6) Whenever any Certificates are so surrendered for exchange,
the Trust shall execute, authenticate and deliver the Certificates that the
Holder making the exchange is entitled to receive.

                  (7) If at any time the Depository for the Certificates
notifies the Company that it is unwilling or unable to continue as Depository
for the Certificates or if at any time the Depository for the Certificates shall
no longer be eligible under Section 6.8(b), the Company shall appoint a
successor Depository with respect to the Certificates. If a successor Depository
for the Certificates is not appointed by the Company within 120 days after the
Company receives such notice or becomes aware of such ineligibility, or if
Certificateholders holding the Required Percentage so request, as set forth in
Section 6.13, the Trustee will execute, and the Trustee, upon receipt of a
Company Order for the authentication and delivery of Definitive Certificates,
will authenticate and deliver Definitive Certificates in an aggregate
Certificate Principal Balance equal to the aggregate Certificate Principal
Balance of the Global Security or Securities representing Certificates in
exchange for such Global Security or Securities.

                  (8) Upon surrender to the Trustee of a Global Security by the
Depository, accompanied by registration instructions, the Trustee shall execute
and the Trustee shall authenticate the Definitive Certificates in accordance
with the instructions of the Depository and the Company Order referred to in the
preceding paragraph (g). None of the Company, the Certificate Registrar or the
Trustee shall be liable for any delay in delivery of the Company Order and may
conclusively rely on, and shall be protected in relying on, the Company Order.
Upon the issuance of Definitive Certificates, the Trustee shall recognize the
holders of the Definitive Certificates as Holders.

                  (9) Upon the exchange of a Global Security for Definitive
Certificates, such Global Security shall be cancelled by the Trustee. Definitive
Certificates issued in exchange for a Global Security pursuant to this Section
6.3 shall be registered in such names and in such authorized denominations as
the Depository for such Global Security, pursuant to instructions from its
Participants, any indirect participants or otherwise, shall instruct the
Trustee. The Trustee shall deliver such Certificates to the Persons in whose
names such Certificates are so registered.

                                       36
<PAGE>   43

                  (10) All Certificates issued upon any registration of transfer
or exchange of Certificates shall constitute complete and indefeasible evidence
of ownership in the Trust related to such Certificates and be entitled to the
same benefits under this Agreement as the Certificates surrendered upon such
registration of transfer or exchange.

                  (11) No service charge shall be made to a Holder for any
registration of transfer or exchange of Certificates, but the Company or the
Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of
transfer or exchange of Certificates, other than exchanges pursuant to Section
6.3 not involving any transfer.

                  Section 1.27 Mutilated, Destroyed, Lost or Stolen
Certificates.

                  (a     If (i) any mutilated Certificate is presented to the
Trustee or (ii) the Company and the Trustee receive (A) evidence to their
satisfaction of the mutilation, destruction, loss or theft of any Certificate
and (B) such security or indemnity as they may require to hold each of them and
any Paying Agent harmless, and neither the Company nor the Trustee receives
notice that such Certificate has been acquired by a bona fide purchaser, then
the Trustee shall execute and the Trustee, upon receipt of a Company Order,
shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Certificate a new Certificate of like
tenor, form, terms and principal amount, bearing a number not contemporaneously
Outstanding.

                  (1) If after the delivery of a replacement Certificate in
respect of a mutilated, destroyed, lost or stolen Certificate, a bona fide
purchaser of the original Certificate in lieu of which such replacement
Certificate was issued presents for payment such original Certificate, the
Trustee shall be entitled to recover such replacement Certificate (or such
distribution in respect of that Certificate) from the Person to whom it was
delivered or any Person taking such replacement Certificate from such Person to
whom such replacement Certificate was delivered or any assignee of such Person,
except a bona fide purchaser, and shall be entitled to recover upon security or
indemnity provided therefor to the extent of any loss, damage, cost or expense
incurred by the Trustee in connection therewith.

                  (2) Upon the issuance of any new Certificate under this
Section 6.4, the Company or the Trustee may require the payment of a sum
sufficient to

                                       37
<PAGE>   44

cover any tax or other governmental charge that may be imposed in respect
thereof and any other expenses (including the fees and expenses of the Trustee)
connected therewith.

                  (3) Every new Certificate issued pursuant to this Section 6.4
shall constitute complete and indefeasible evidence of ownership in the Trust
and its income and assets, whether or not the mutilated, destroyed, lost or
stolen Certificate shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Agreement equally and proportionately with
any and all other Certificates duly issued hereunder.

                  (4) The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Certificates.

                  Section 1.28 Distribution of Available Funds; Computations.

                  (1) Available Funds to be distributed to the Holder of any
Certificate that are payable and are punctually paid or duly provided for on any
Distribution Date shall be distributed to the Person in whose name such
Certificate (or one or more Predecessor Certificates) is registered at the close
of business on the related Record Date notwithstanding the cancellation of such
Certificate upon any transfer or exchange subsequent to such related Record
Date. The distribution of Available Funds to Certificateholders shall be made at
the Corporate Trust Office or, at the option of the Trustee, by check mailed to
the address of the Person entitled thereto as such address shall appear in the
Certificate Register or by wire transfer to an account designated by the Holder.

                  (2) Subject to the foregoing provisions of this Section 6.5,
each Certificate delivered under this Agreement upon transfer of or in exchange
for or in lieu of any other Certificate shall carry the rights to receive
distributions of Available Funds that were carried by such other Certificate.

                  (3) With respect to any computations or calculations to be
made under this Agreement and the Certificates, except as otherwise provided,
(i) all percentages resulting from any calculation of accrued interest will be
rounded, if necessary, to the nearest 1/100,000 of 1% (.0000001), with five
one-millionths of a percentage point rounded downward, and (ii) all currency
amounts will be rounded to the nearest one-hundredth of a unit (with .005 of a
unit being rounded downward).

                                       38
<PAGE>   45

                  Section 1.29 Persons Deemed Owners.

                  (1) The Company, the Trustee and any agent of the Company or
the Trustee may treat the Person in whose name any Certificate is registered as
the owner of such Certificate for the purpose of receiving distributions of
Available Funds on such Certificate and for all other purposes whatsoever,
whether or not such Certificate be overdue, and neither the Company or the
Trustee, nor any agent of the Company or the Trustee, shall be affected by
notice to the contrary. All distributions made to any Holder, or upon his order,
shall be valid, and, to the extent of the sum or sums paid, effectual to satisfy
and discharge the liability for moneys distributable upon such Certificate.

                  (2) Neither the Company, the Certificate Registrar or the
Trustee nor any of their agents will have any responsibility or liability for
any aspect of the records relating to or distributions made on account of
beneficial ownership interests in a Global Security or for maintaining,
supervising or reviewing any records relating to such beneficial ownership
interests.

                  Section 1.30 Cancellation. All Certificates surrendered for
payment, redemption, transfer or exchange shall, if surrendered to any Person
other than the Trustee, be delivered to the Trustee and shall be promptly
cancelled by it. No Certificates shall be authenticated in lieu of or in
exchange for any Certificates cancelled as provided in this Section 6.7, except
as expressly permitted by this Agreement. All cancelled Certificates may be held
or disposed of by the Trustee in accordance with its standard retention or
disposal policy as in effect at the time, unless the Company shall direct by
Company Order that they be returned to it; provided, however, that such Company
Order is timely and the Certificates have not been previously disposed of by the
Trustee. The Trustee shall certify to the Company that surrendered Certificates
have been duly cancelled and retained or destroyed, as the case may be.

                  Section 1.31 Global Securities.

                  (1) The Certificates shall be registered Certificates and will
be represented by one or more Global Securities issued in accordance with this
Section 6.8 and Article V and initially registered in the name of Cede & Co., as
nominee of The Depository Trust Company. The Trustee shall execute and the
Trustee shall authenticate and deliver one or more Global Securities that (i)
shall represent an

                                       39
<PAGE>   46

aggregate initial Certificate Principal Balance equal to the aggregate initial
Certificate Principal Balance of the Certificates, (ii) shall be delivered by
the Trustee to the Depository or pursuant to the Depository's instruction and
(iii) shall bear a legend substantially to the following effect: "Unless and
until it is exchanged in whole for the individual Certificates represented
hereby, this Global Security may not be transferred except as a whole by the
Depository to a nominee of the Depository or by a nominee of the Depository to a
successor nominee or by the Depository or any such nominee to a successor
Depository or a nominee of such successor Depository."

                  (2) No Holder of a Certificate will receive a Definitive
Certificate representing such Holder's interest in such Certificate or
Certificates, except as provided in Section 6.3 and Section 6.13. Unless and
until definitive, fully registered Certificates (the "Definitive Certificates")
have been issued to Holders pursuant to Section 6.3 or Section 6.13:

                        (1) the provisions of this Section 6.8 shall be in full
              force and effect;

                        (2) the Certificate Registrar and the Trustee shall be
              entitled to deal with the Depository for all purposes of this
              Agreement (including the distribution of Available Funds with
              respect to the Certificates and the giving of instructions or
              directions hereunder) as the sole Holder of the Certificates, and
              shall have no obligation to the Certificate Owners;

                        (3) to the extent that the provisions of this Section
              6.8 conflict with any other provisions of this Agreement other
              than Section 3.6, the provisions of this Section 6.8 shall
              control;

                        (4) the rights of Certificate Owners shall be exercised
              only through the Depository and shall be limited to those
              established by law and agreements between such Certificate Owners
              and the Depository or its Participants; and

                        (5) whenever this Agreement requires or permits actions
              to be taken based upon instructions or directions of Holders of
              Certificates evidencing a specified percentage of the aggregate
              Voting Rights, the Depository shall be deemed to represent such
              percentage only to the extent that it has received written
              instructions to such effect from Certificate Owners or
              Participants in the Depository's system owning or representing,
              respectively,

                                       40
<PAGE>   47

              such required percentage of the beneficial interests in the
              Certificates and has delivered such instructions to the Trustee.

                  (3) The Depository must, at all times while it serves as
Depository, be a clearing agency registered under the Exchange Act and any other
applicable statute or regulation.

                  (4) If any Global Security is to be exchanged for other
Certificates or cancelled in whole, it shall be surrendered by or on behalf of
the Depository or its nominee to the Trustee, as Certificate Registrar, for
exchange or cancellation as provided in this Article VI or, if the Trustee is
acting as custodian for the Depository or its nominee (or is party to a similar
arrangement) with respect to such Global Security, the principal amount thereof
shall be reduced to reflect that either all or none of the Certificates will be
held as a Global Security after giving effect to such exchange or transfer, as
the case may be, in each case by means of an appropriate adjustment made on the
records of the Trustee, whereupon the Trustee shall instruct the Depository or
its authorized representative to make a corresponding adjustment to its records
(including by crediting or debiting any Participant's account as necessary to
reflect any transfer or exchange of a beneficial interest pursuant to Section
5.2(b)). Upon any such surrender or adjustment of a Global Security, the Trustee
shall, subject to this Section 6.8 and as otherwise provided in this Article VI,
authenticate and deliver any Certificates issuable in exchange for such Global
Security to or upon the order of, and registered in such names as may be
directed by, the Depository or its authorized representative in writing. Upon
the request of the Trustee in connection with the occurrence of any of the
events specified in Section 6.3 or 6.13, the Company shall promptly make
available to the Trustee a reasonable supply of Certificates that are not in the
form of Global Securities. The Trustee shall be entitled to rely upon any order,
direction or request of the Depository or its authorized representative which is
given or made pursuant to this Article VI.

                  (5) Every Certificate authenticated and delivered upon
registration of transfer of, or in exchange for or in lieu of, a Global
Security, shall be authenticated and delivered in the form of, and shall be, a
Global Security, unless such Certificate is registered in the name of a Person
other than the Depository or a nominee thereof.

                  (6) Subject to the provisions in the applicable legends
required by Section 5.2(c) above, the registered Holder may grant proxies and
otherwise authorize any Person, including Participants and Persons who may hold
interests in

                                       41
<PAGE>   48

Participants, to take any action that such Holder is entitled to take under this
Agreement.

                  (7) Neither Participants nor any other Persons on whose behalf
Participants may act shall have any rights under this Agreement with respect to
any Global Security held on their behalf by the Depository or under the Global
Security, and the Depository may be treated by the Company, the Trustee and any
agent of the Company or the Trustee as the absolute owner of such Global
Security for all purposes whatsoever.

                  Section 1.32 Notices to Depository. Whenever a notice or other
communication to the Certificate Owners represented by one or more Global
Securities is required under this Agreement, unless and until Definitive
Certificates shall have been issued to such Certificate Owners pursuant to
Section 6.3, the Trustee shall give all such notices and communications
specified herein to be given to Certificate Owners to the Depository, and shall
have no obligation to the Certificate Owners.

                  Section 1.33 Conditions of Authentication and Delivery. The
Company shall deliver Certificates to the Trustee, and the Trustee shall execute
on behalf of the Trust and authenticate and deliver such Certificates, shall
purchase the Senior Notes and shall execute and deliver the Call Option, the
Currency Swap and other closing documents in connection with the issue of the
Certificates, upon receipt of a Company Order.

                  Section 1.34 Appointment of Paying Agent. The Trustee may
appoint one or more paying agents (each, a "Paying Agent") with respect to the
Certificates. Any such Paying Agent shall be authorized to make distributions to
Certificateholders from a Certificate Account and shall report the amounts of
such distributions to the Trustee. Any Paying Agent shall have the revocable
power to withdraw funds from a Certificate Account for the purpose of making the
distributions referred to above. The Trustee may revoke such power and remove
the Paying Agent if the Trustee determines in its sole discretion that the
Paying Agent shall have failed to perform its obligations under this Agreement
in any material respect. The Paying Agent shall initially be the Trustee and any
co-paying agent chosen by the Company and acceptable to the Trustee. Any Paying
Agent shall be permitted to resign as Paying Agent upon 30 days' written notice
to the Trustee and the Company. In the event that the Trustee shall no longer be
the Paying Agent, the Trustee shall appoint a successor or additional Paying
Agent. Any such successor or additional

                                       42
<PAGE>   49

Paying Agent must be approved by the Company, whose approval shall not be
unreasonably withheld. The Trustee shall cause each successor Paying Agent or
additional Paying Agent to execute and deliver to the Trustee an instrument in
which such successor or additional Paying Agent shall agree with the Trustee
that it will hold all sums, if any, held by it for distribution to the
Certificateholders in trust for the benefit of the Certificateholders entitled
thereto until such sums shall be distributed to such Certificateholders. The
Paying Agent shall return all unclaimed funds to the Trustee and upon removal
shall also return all funds in its possession to the Trustee. The provisions of
Sections 9.1, 9.2, 9.3 and 9.5 shall apply to the Trustee also in its role as
Paying Agent, for so long as the Trustee shall act as Paying Agent and, to the
extent applicable, to any other Paying Agent appointed hereunder. Any reference
in this Agreement to the Paying Agent shall include any co-paying agent unless
the context requires otherwise. Notwithstanding anything contained herein to the
contrary, the appointment of a Paying Agent pursuant to this Section 6.11 shall
not release the Trustee from the duties, obligations, responsibilities or
liabilities arising under this Agreement other than with respect to funds paid
to such Paying Agent.

                  Section 1.35 Authenticating Agent.

                  (1) The Trustee may appoint one or more Authenticating Agents
(each, an "Authenticating Agent") with respect to the Certificates which shall
be authorized to act on behalf of the Trustee in authenticating such
Certificates in connection with the issuance, delivery and registration of
transfer or exchange of such Certificates. Whenever reference is made in this
Agreement to the authentication of Certificates by the Trustee or the Trustee's
certificate of authentication, such reference shall be deemed to include
authentication on behalf of the Trustee by an Authenticating Agent and a
certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent. Each Authenticating Agent must be acceptable to the
Company. Notwithstanding anything contained herein to the contrary, the
appointment of an Authenticating Agent pursuant to this Section 6.12 shall not
release the Trustee from the duties, obligations, responsibilities or
liabilities arising under this Agreement.

                  (2) Any institution succeeding to the corporate agency
business of any Authenticating Agent shall continue to be an Authenticating
Agent without the execution or filing of any power or any further act on the
part of the Trustee or such Authenticating Agent. An Authenticating Agent may at
any time resign by giving notice of resignation to the Trustee and to the
Company. The Trustee may at

                                       43
<PAGE>   50

any time terminate the agency of an Authenticating Agent by giving notice of
termination to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time an
Authenticating Agent shall cease to be acceptable to the Trustee or the Company,
the Trustee promptly may appoint a successor Authenticating Agent. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all the rights, powers and duties of its predecessor hereunder, with
like effect as if originally named as an Authenticating Agent. No successor
Authenticating Agent shall be appointed unless acceptable to the Company. The
Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section 6.12. The provisions of Section
9.1, 9.2 and 9.3 shall be applicable to any Authenticating Agent.

                  (3) Pursuant to an appointment made under this Section 6.12,
the Certificates may have endorsed thereon, in lieu of the Trustee's certificate
of authentication, an alternate certificate of authentication in substantially
the following form:

                  This is one of the Certificates described in the Trust
Agreement referred to herein.

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

                                          --------------------------------------
                                          as Authenticating Agent
                                          for the Trustee

                                                 by

                                          --------------------------------------
                                          Authorized Signatory

                  Section 1.36 Remedies. Following the occurrence of an Event of
Default, or a payment default by the Swap Counterparty under the Currency Swap
or upon a Swap Termination Event, the Trustee shall, within five Business Days
of

                                       44
<PAGE>   51

obtaining knowledge of such Event of Default or default, mail a notice of such
Event of Default or default to each Certificateholder of record as of the date
the Trustee obtained such knowledge. The Trustee shall request instructions from
Certificateholders as to what actions to take or cause to be taken or remedies
to exercise or cause to be exercised under the Senior Notes or the Currency
Swap, including with respect to, in the case of a payment default by the Swap
Counterparty under the Currency Swap, any unpaid Dollar Swap Payment or other
Dollar amount owing by the Swap Counterparty under the Currency Swap and, in the
case of a Swap Termination Event (other than as a result of a Conversion Event,
an Optional Tax Redemption or a Change of Control Repurchase), any claim against
the Swap Counterparty for any Swap Termination Payment and any Unpaid Amounts
whether or not such Swap Termination Payment shall constitute Available Funds.
The Trustee shall take or cause to be taken such actions, or shall exercise or
cause to be exercised such remedies, as are permitted under the Senior Notes or
the Currency Swap and as Certificateholders holding the Required Percentage
shall direct in writing; provided, however, that Definitive Certificates
representing 100% of the outstanding principal balance of the Certificates shall
be issued, in accordance with the provisions of Section 6.3 hereof, if any
Definitive Certificates are issued; and provided, further, that the Trustee may
not sell, liquidate or otherwise dispose of the Senior Notes other than in
connection with a Trust Termination Event; and provided, further, that the
Trustee shall be under no obligation to take any action at the request, order or
direction of Certificateholders unless such Certificateholders have offered the
Trustee reasonable security or indemnity. The Trustee shall have no liability
for any failure to act resulting from the Certificateholders' late return of, or
failure to return, directions requested by the Trustee from the
Certificateholders.

                                   ARTICLE VII

                                   The Company

                  Section 1.37 Liability of the Company. The Company shall be
liable in accordance herewith only to the extent of the obligations specifically
imposed by this Agreement.

                  Section 1.38 Limitation on Liability of the Company. Neither
the Company nor any of the directors, officers, employees or agents of the
Company shall be under any liability to the Trust or the Certificateholders for
any action taken, or for refraining from the taking of any action, in good faith
pursuant to this Agree-

                                       45
<PAGE>   52

ment, or for errors in judgment; provided, however, that this provision shall
not protect the Company or any such person against any breach of warranties,
representations or covenants made herein, or against any liability which would
otherwise be imposed by reason of willful misfeasance, bad faith or negligence
in the performance of duties or by reason of reckless disregard of obligations
and duties hereunder.

                  The Company shall not be under any obligation to appear in,
prosecute or defend any legal action unless such action is related to its
respective duties under this Agreement and, in its opinion, does not involve it
in any expense or liability; provided, however, that the Company may in its
discretion undertake any such action which it may deem necessary or desirable
with respect to this Agreement and the rights and duties of the parties hereto
and the interests of the Certificateholders hereunder.

                  Section VII.1 The Company May Purchase Certificates. The
Company may at any time purchase Certificates in the open market or otherwise.
Certificates so purchased by the Company may, at the discretion of the Company,
be held or resold or presented to the Trustee for cancellation. Certificates
beneficially owned by the Company will be disregarded for purposes of
determining whether the required percentage of the aggregate Voting Rights has
given any request, demand, authorization, direction, notice, consent or waiver
hereunder, except that, in determining whether the Trustee shall be protected in
relying upon any such request, demand, authorization, direction, notice, consent
or waiver, only Certificates with respect to which the Company has provided the
Trustee an Officer's Certificate stating that such Certificates are so owned
shall be so disregarded.

                                  ARTICLE VIII

Concerning the Currency Swap, the Call Option and the Early Redemption Right

                  Section 1.39 Currency Swap and Call Option.

                  (1) Concurrently with the issue of the Certificates, the
Trustee shall execute the Currency Swap and the Call Option. The Trustee shall
perform the Trust's obligations under the Currency Swap and the Call Option in
accordance with their respective terms.

                                       46
<PAGE>   53

               (2) The Trustee shall be permitted, without the consent of
Certificateholders, to enter into any amendment to the Currency Swap or the Call
Option, in accordance with the terms thereof, to cure any ambiguity in, or to
correct or supplement any provision of, the Currency Swap or the Call Option;
provided that (a) the Trustee has received an Opinion of Counsel to the effect
that such amendment (i) will not materially adversely affect the interests of
the Certificateholders and (ii) will not alter the status of the Trust as a
grantor trust for federal income tax purposes; provided, however, that counsel
giving such opinion may conclusively rely upon an Officer's Certificate of the
Company with respect to the absence of any materially adverse effects of a
non-legal nature. In the event the Trustee receives any other request from the
Swap Counterparty or the Callholder, as the case may be, for approval of any
consent relating to, or waiver or other modification of, the Currency Swap or
the Call Option, the Trustee shall promptly deliver notice of such proposed
consent, waiver or modification to each Certificateholder and shall request from
the Certificateholders instructions as to whether or not to give or execute such
consent, waiver or modification. Upon the direction of Holders of Certificates
evidencing not less than the Required Percentage--Direction of Trustee of the
aggregate Voting Rights of the Certificates, the Trustee shall enter into such
consent, waiver or other modification of the Currency Swap or the Call Option;
provided that the Trustee shall have received an Opinion of Counsel to the
effect that such consent, waiver or other modification will not alter the status
of the Trust as a grantor trust for federal income tax purposes; and provided
further that, except with the consent of 100% of the aggregate Voting Rights of
the Certificates, that the Trustee shall not enter into any such consent, waiver
or other modification if the Trustee determines (based upon advice of counsel,
upon which advice the Trustee may conclusively rely) that such consent, waiver
or other modification would, in the case of the Currency Swap, alter the date on
which any Dollar Swap Payments or other Dollar payments are to be made
thereunder or alter the amount thereof and, in the case of the Call Option,
alter the date on which the Call Option is exercisable or the amount payable
upon exercise of the Call Option.

               (3) Notwithstanding Section 8.1(b), except with the consent of
100% of the aggregate Voting Rights of the Certificates, the Trustee shall not
enter into any amendment to, or give or execute any consent relating to or
waiver or other modification of, the Currency Swap or the Call Option unless the
Rating Agency Condition is satisfied.

                                       47

<PAGE>   54

               Section 1.40 Obligations to the Callholder.

               (1) Upon the exercise of the Call Option in accordance with its
terms, the Trustee shall deliver or cause to be delivered the Senior Notes upon
the written direction of the Callholder, by 10:00 a.m. (New York City time) on
the Settlement Date, provided that the Trustee shall have received notice of the
exercise thereof from the Callholder on or prior to the Call Exercise Date in
accordance with the terms of the Call Option and shall have received from the
Callholder an amount, in immediately available funds in a form acceptable to the
Trustee, equal to the Call Price for the Senior Notes, by 2:00 p.m. (London
time) on the Business Day prior to the Settlement Date.

               (2) Upon receipt of the Call Price in accordance with Section
8.2(a), the Trustee shall include any such amount in Available Funds with
respect to the Final Distribution (other than any interest received on the Call
Price from the Business Day prior to the Settlement Date to the Settlement Date,
which interest shall be payable to the Callholder).

               Section 1.41 Early Redemption Right.

               (1) If the Trustee fails to receive notice from the Callholder in
accordance with the Call Option on or prior to 4:00 p.m. (New York City time) on
the Call Exercise Date that it intends to exercise the Call Option, the Trustee,
on behalf of the Certificateholders, shall, immediately thereafter, give
irrevocable written notice to the Company (the "Early Redemption Notice") that
it will exercise the Early Redemption Right on the Settlement Date in accordance
with the terms of the Senior Notes and the Indenture.

               (2) Subject to prior compliance with Section 8.3(a), the Early
Redemption Right shall be exercised by the Trustee by delivery of the Senior
Notes to the Company at the time and in the manner specified in the Senior
Notes, together with such other documents as may be required by, and by
satisfying such other applicable terms of, the Senior Notes.

               (3) Notwithstanding any other term of this Agreement, if the
Callholder exercises the Call Option in accordance with the terms thereof but
fails to make payment in full thereon by 2:00 p.m. (London time) on the Business
Day preceding the Settlement Date, the Trustee, on behalf of the
Certificateholders, shall, immediately upon notice of or the occurrence of such
default by the Callholder, give

                                       48

<PAGE>   55

irrevocable written notice to the Company that it intends to exercise the Early
Redemption Right on the Settlement Date in accordance with the terms of the
Senior Notes. In such event, the Early Redemption Right shall then be exercised
by Trustee by surrender of the Senior Notes to the Company at the time and in
the manner specified in the Senior Notes, together with such other documents as
may be required by, and by satisfying any other applicable terms of, the Senior
Notes.

                                   ARTICLE IX

                             Concerning the Trustee

               Section 1.42 Duties of Trustee; Notice of Defaults.

               (1) The Trustee, prior to the occurrence of an Event of Default
and after the curing or waiver of all such Events of Default which may have
occurred, undertakes to perform such duties and only such duties as are
specifically set forth in this Agreement, the Currency Swap and the Call Option.
During the period an Event of Default shall have occurred and be continuing, the
Trustee shall exercise such of the rights and powers vested in it by this
Agreement, and shall use the same degree of care and skill in their exercise, as
a prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs. Any permissive right of the Trustee enumerated in
this Agreement shall not be construed as a duty. In the event of any payment
default by the Swap Counterparty under the Currency Swap, the Trustee shall
provide a notice to the Swap Counterparty of such default in the form of Exhibit
D, and the Currency Swap shall terminate on the third Business Day following
such notice unless such default is remedied before such date. In the event of
any payment default by the Callholder under the Call Option, the Trustee shall
provide a notice to the Callholder and the Company of such default in the form
of Exhibit E, and the Call Option shall immediately terminate.

               (2) The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee which are specifically required to be furnished pursuant to any
provision of this Agreement, shall examine them in good faith to determine
whether they conform on their face to the requirements of this Agreement. If any
such instrument is found not to conform to the requirements of this Agreement,
the Trustee shall take action as it deems appropriate to have the instrument
corrected, and if the instrument is not

                                       49

<PAGE>   56

corrected to the Trustee's satisfaction, the Trustee will provide notice thereof
to the Company and Certificateholders.

               (3) No provision of this Agreement shall be construed to relieve
the Trustee from liability for its own negligent action, its own negligent
failure to act or its own misconduct; provided, however, that:

                   (1) the Trustee shall not be personally liable with respect
         to any action taken, suffered or omitted to be taken by it in good
         faith in accordance with the direction of Holders of the Required
         Percentage relating to the time, method and place of conducting any
         proceeding for any remedy available to the Trustee, or exercising any
         trust or power conferred upon the Trustee, under this Agreement;

                   (2) except for actions expressly authorized by this
         Agreement, the Trustee shall take no actions reasonably likely to
         impair the interests of the Trust in any Trust Asset now existing or
         hereafter acquired or to impair the value of any Trust Asset now
         existing or hereafter acquired;

                   (3) except as expressly provided in this Agreement, the
         Trustee shall have no power to vary the corpus of the Trust, including
         by (A) accepting any substitute obligation or asset for a Trust Asset
         initially assigned to the Trustee under Section 2.1, (B) adding any
         other investment, obligation or security to the Trust or (C)
         withdrawing from the Trust any Trust Assets; and

                   (4) in the event that the Paying Agent or the Certificate
         Registrar shall fail to perform any obligation, duty or agreement in
         the manner or on the day required to be performed by the Paying Agent
         or Certificate Registrar, as the case may be, under this Agreement, the
         Trustee shall be obligated promptly upon its knowledge thereof to
         perform such obligation, duty or agreement in the manner so required.

               Section 1.43 Certain Matters Affecting the Trustee.

               (1) Except as otherwise provided in Section 9.1:

                   (1) the Trustee may request and rely upon, and shall be
         protected in acting or refraining from acting upon, any resolution,
         Officer's

                                       50

<PAGE>   57

         Certificate, certificate of auditors or other certificate, statement,
         instrument, opinion, report, notice, request, consent, order,
         appraisal, bond or other paper or document reasonably believed by it to
         be genuine and to have been signed or presented by the proper party or
         parties;

                   (2) the Trustee may consult with counsel of its selection and
         any advice of such counsel or any Opinion of Counsel shall be full and
         complete authorization and protection in respect of any action taken,
         or suffered or omitted by it hereunder in good faith and in accordance
         with such advice or Opinion of Counsel;

                   (3) the Trustee shall be under no obligation to exercise any
         of the trusts or powers vested in it by this Agreement or to institute,
         conduct or defend any litigation hereunder or in relation hereto, at
         the request, order or direction of any of the Certificateholders,
         pursuant to the provisions of this Agreement, unless such
         Certificateholders shall have offered to the Trustee reasonable
         security or indemnity against the costs, expenses and liabilities which
         may be incurred therein or thereby; provided, however, that nothing
         contained herein shall relieve the Trustee of the obligations, upon the
         occurrence of an Event of Default (which has not been cured or waived),
         to exercise such of the rights and powers vested in it by this
         Agreement, and to use the same degree of care and skill in their
         exercise, as a prudent person would exercise or use under the
         circumstances in the conduct of such person's own affairs;

                   (4) the Trustee shall not be personally liable for any action
         taken, suffered or omitted by it in good faith and believed by it to be
         authorized or within the discretion or rights or powers conferred upon
         it by this Agreement;

                   (5) the Trustee shall not be bound to make any investigation
         into the facts or matters stated in any resolution, certificate,
         statement, instrument, opinion, report, notice, request, consent,
         order, appraisal, approval, bond or other paper or document believed by
         it to be genuine, unless requested in writing to do so by Holders of
         the Required Percentage; provided, however, that if the payment within
         a reasonable time to the Trustee of the costs, expenses or liabilities
         likely to be incurred by it in the making of such investigation is, in
         the opinion of the Trustee, not reasonably assured to the Trustee by
         the security afforded to it by the terms of this Agreement, the

                                       51

<PAGE>   58

         Trustee may require reasonable indemnity against such expense or
         liability as a condition to taking any such action; and

                   (6) the Trustee may execute any of the trusts or powers
         hereunder or perform any duties hereunder either directly or by or
         through agents or attorneys or a custodian.

               (2) All rights of action under this Agreement or under any of the
Certificates, enforceable by the Trustee, may be enforced by it without the
possession of any of the Certificates, or the production thereof at the trial or
other Proceeding relating thereto, and any such Proceeding instituted by the
Trustee shall be brought in its name for the benefit of all the Holders of such
Certificates, subject to the provisions of this Agreement.

               Section 1.44 Trustee Not Liable for Recitals in Certificates or
Trust Assets. The Trustee assumes no responsibility for the correctness of the
recitals contained herein and in the Certificates or in any document issued in
connection with the sale of the Certificates (other than the Trustee's signature
and authentication on the Certificates). Except as set forth in Section 9.11,
the Trustee makes no representations or warranties as to the validity or
sufficiency of this Agreement or of the Certificates (other than the Trustee's
signature and authentication on the Certificates) or of any Trust Asset or
related document.

               Section 1.45 Trustee May Own Certificates. The Trustee in its
individual capacity or any other capacity may become the owner or pledgee of
Certificates and may transact business with the other parties hereto with the
same rights it would have if it were not Trustee.

               Section 1.46 Trustee's Fees and Expenses; Indemnification.

               (1) The Trustee shall be paid by the Company as compensation for
its services hereunder such fees as have been separately agreed upon from time
to time by the Company and the Trustee, and the Trustee shall be entitled to be
reimbursed by the Company for its reasonable expenses hereunder, including the
reasonable compensation, expenses and disbursements of such agents,
representatives, experts and counsel as the Trustee may reasonably employ in
connection with the exercise and performance of its rights and its duties
hereunder and any investigation in connection therewith.

                                       52

<PAGE>   59

               (2) The Company shall indemnify and hold harmless the Trustee
against any loss, liability or expense incurred in connection with any action
relating to or arising out of this Agreement, the Certificates, the offer and
sale of the Certificates, the Call Option, the Currency Swap, the Early
Redemption Right, the Purchase Agreement or the acceptance of the trust created
hereby or the performance of the Trustee's duties hereunder, except to the
extent that such loss, liability or expense (i) is due to willful misfeasance,
bad faith or negligence of the Trustee or (ii) relates to the payment
obligations under the Certificates, the Currency Swap or the Call Option.

               (3) The provisions of this Section 9.5 shall survive the
resignation or removal of the Trustee, and the termination of this Agreement and
the Trust.

               Section 1.47 Eligibility Requirements for Trustee. The Trustee
hereunder shall at all times be a corporation or an association which is not an
Affiliate of the Company (but may have normal banking relationships with the
Company and its Affiliates) organized and doing business under the laws of any
State or the United States, authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus of at least $50,000,000 and
subject to supervision or examination by federal or State authority. If such
corporation or association publishes reports of conditions at least annually,
pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section 9.6 the combined capital and
surplus of such corporation or association shall be deemed to be its combined
capital and surplus as set forth in its most recent report of conditions so
published. Such corporation or association must be rated in one of the four
highest rating categories by the Rating Agencies.

               Section 1.48 Resignation or Removal of the Trustee.

               (1) The Trustee may at any time resign and be discharged from any
trust hereby created by giving written notice thereof to the Company, the Rating
Agencies and all Certificateholders. Upon receiving notice of resignation, the
Company shall promptly appoint a successor trustee by written instrument, in
duplicate, which instrument shall be delivered to the resigning Trustee and to
the successor trustee. A copy of such instrument shall be delivered to such
Certificateholders by the Company. If no such successor trustee shall have been
so appointed and have accepted appointment within 30 days after the giving of
such notice of resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor trustee. (1)

                                       53

<PAGE>   60

               (2) If at any time the Trustee shall cease to be eligible in
accordance with the provisions of Section 9.6 and shall fail to resign after
written request therefor by the Company, or if at any time the Trustee shall
become incapable of acting, or shall be adjudged bankrupt or insolvent, or a
receiver of the Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, then the
Company may remove the Trustee and appoint a successor trustee by written
instrument, in duplicate, which instrument shall be delivered to the Trustee so
removed and to the successor trustee. A copy of such instrument shall be
delivered to the Certificateholders, if any, by the Company.

               (3) Any resignation or removal of the Trustee and appointment of
a successor trustee pursuant to any of the provisions of this Section 9.7 shall
not become effective until acceptance of appointment by the successor trustee as
provided in Section 9.8.

               Section 1.49 Successor Trustee.

               (1) Any successor trustee appointed as provided in Section 9.7
shall execute, acknowledge and deliver to the Company and to its predecessor
trustee an instrument accepting such appointment hereunder, and thereupon the
resignation or removal of the predecessor trustee shall become effective and
such successor trustee, without any further act, deed or conveyance, shall
become fully vested with all the rights, powers, duties and obligations of its
predecessor hereunder, with the like effect as if originally named as trustee
herein. The predecessor trustee shall deliver to the successor trustee all Trust
Assets documents and statements held by it hereunder, and the Company and the
predecessor trustee shall execute and deliver such instruments and do such other
things as may reasonably be required for more fully and certainly vesting and
confirming in the successor trustee all such rights, powers, duties and
obligations. No successor trustee shall accept appointment as provided in this
Section 9.8 unless at the time of such acceptance such successor trustee shall
be eligible under the provisions of Section 9.6.

               (2) Upon acceptance of appointment by a successor trustee as
provided in this Section 9.8, the Company shall transmit notice of the
succession of such trustee hereunder to all Holders of Certificates and to the
Rating Agencies in the manner provided in Section 11.6.

                                       54

<PAGE>   61

               Section 1.50 Merger or Consolidation of Trustee. Any corporation
or association into which the Trustee may be merged or converted or with which
it may be consolidated or any corporation or association resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation or association succeeding to the business of the Trustee, or any
corporation or association purchasing all, or substantially all, of the
corporate trust business of the Trustee shall be the successor of the Trustee
hereunder, provided such corporation or association shall be eligible under the
provisions of Section 9.6, without the execution or filing of any instrument or
any further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

               Section 1.51 Appointment of Office or Agency. The Trustee shall
appoint an office or agency in The City of New York where the Certificates may
be surrendered for registration of transfer or exchange, and presented for the
Final Distribution with respect thereto, and where notices and demands to or
upon the Trustee in respect of the Certificates and this Agreement may be
served. The Trustee initially appoints its Corporate Trust Office for such
purpose.

               Section 1.52 Representations and Warranties of Trustee. The
Trustee represents and warrants that:

                   (1) the Trustee is duly organized, validly existing and in
         good standing under the laws of its jurisdiction of incorporation or
         association;

                   (2) neither the execution, the delivery or performance by the
         Trustee of this Agreement, nor the consummation by it of the
         transactions contemplated hereby nor compliance by it with any of the
         terms or provisions hereof will violate its charter documents or
         by-laws;

                   (3) the Trustee has full power, authority and right to
         execute, deliver and perform its duties and obligations as set forth
         herein, has taken all necessary action to authorize the execution,
         delivery and performance by it of this Agreement and has satisfied all
         of the eligibility requirements set forth in Section 9.6;

                   (4) this Agreement has been duly executed and delivered by
         the Trustee and constitutes the legal, valid and binding obligation of
         the Trustee, enforceable in accordance with its terms, except as
         enforcement may

                                       55

<PAGE>   62

         be limited by applicable bankruptcy, insolvency, reorganization,
         moratorium or similar laws affecting the rights of creditors generally
         and general principles of equity (regardless of whether such
         enforceability is considered in a proceeding in equity or at law); and

                   (5) the execution, delivery and performance by the Trustee of
         this Agreement shall not require the authorization, consent or approval
         of, the giving of notice to, the filing or registration with, or the
         taking of any other action in respect of, any governmental authority or
         agency regulating the banking and corporate trust activities of the
         Trustee.

               Section 1.53 Limitation of Powers and Duties.

               (1) The Trustee shall administer the Trust and the Trust Assets
solely as specified herein.

               (2) The Trust is constituted solely for the purpose of acquiring
and holding the Trust Assets. The Trustee is not authorized to acquire any other
investments or engage in any activities not authorized herein and, in
particular, the Trustee is not authorized (i) to sell, assign, transfer,
exchange, pledge, set-off or otherwise dispose of any of the Senior Notes, once
acquired, or interests therein, including to Certificateholders (except pursuant
to the Call Option, the Early Redemption Right and Section 4.2) or (ii) to do
anything that would alter the status of the Trust as a grantor trust for federal
income tax purposes.

               (3) The Trustee, as a holder of the Senior Notes, has the right
to vote and give consents and waivers in respect of the Senior Notes and enforce
such other rights of a holder of the Senior Notes, except as otherwise limited
by this Agreement. In the event that the Trustee receives a request from the
Company with respect to the Senior Notes, for the Trustee's consent to any
amendment, modification or waiver of the Senior Notes, or any document
thereunder, or relating thereto, or receives any other solicitation for any
action with respect to the Senior Notes, the Trustee shall within five Business
Days mail a notice of such proposed amendment, modification, waiver or
solicitation to each Certificateholder as of the date of such request. The
Trustee shall request instructions from the Certificateholders as to what action
to take in response to such request. Except as otherwise provided herein, the
Trustee shall consent or vote, or refrain from consenting or voting, in the same
proportion (based on the Certificate Principal Balances) as the Certificates of
the Trust were actually voted or not voted by the Holders thereof as of the date
deter-

                                       56

<PAGE>   63

mined by the Trustee prior to the date such vote or consent is required;
provided, however, that, notwithstanding anything to the contrary in this
Agreement, the Trustee shall at no time vote in favor of or consent to any
matter (i) unless such vote or consent would not, based on an Opinion of
Counsel, alter the status of the Trust as a grantor trust for federal income tax
purposes, (ii) which would alter the amount of any payment on the Senior Notes,
other than in connection with a Trust Termination Event, or (iii) which would
result in the exchange or substitution of any Senior Notes pursuant to a plan
for the refunding or refinancing of such Senior Notes, except during the
continuation of an Event of Default, or which would otherwise result in a sale
or exchange of Certificates for federal income tax purposes and, in each case,
other than in connection with a Trust Termination Event. The Trustee shall have
no liability for any failure to act resulting from the Certificateholders' late
return of, or failure to return, directions requested by the Trustee from the
Certificateholders.

               (4) Notwithstanding any provision of this Agreement to the
contrary, for purposes of any security or indemnity against the costs, expenses
and liabilities the Trustee may incur by reason of any action undertaken at the
direction of the Certificateholders, which the Trustee may require from the
Certificateholders prior to taking any such action, an unsecured indemnity
agreement of a Certificateholder or any of its Affiliates, if acceptable to the
Trustee, shall be deemed sufficient to satisfy such security or indemnity
requirement.

                                    ARTICLE X

                                   Termination

               Section 1.54 Termination.

               (1) Upon presentation and surrender of the Certificates by the
Certificateholders on the Final Distribution Date, the Trustee shall distribute
to each Holder presenting and surrendering its Certificates the amounts
distributable to such Holder in accordance with Sections 4.1 and 4.2 in respect
of the Certificates so presented and surrendered. Any funds not distributed on
the Final Distribution Date shall be set aside and held in trust for the benefit
of Certificateholders not presenting and surrendering their Certificates in the
aforesaid manner, and shall be disposed of in accordance with Section 4.2(d).

                                       57

<PAGE>   64

               (2) The Trust and the respective obligations and responsibilities
under this Agreement of the Trustee and the Company and, except as otherwise
provided herein, the Trust shall terminate upon the completion of the Final
Distribution; provided, however, that in no event shall the trust created hereby
continue beyond the expiration of 21 years from the death of the last survivor
of the descendants of Joseph P. Kennedy, the late ambassador of the United
States to the Court of St. James, living on the date hereof.

                                   ARTICLE XI

                            Miscellaneous Provisions

               Section 1.55 Amendment.

               (1) This Agreement may be amended or modified from time to time
by the Company and the Trustee without notice to or the consent of any of the
Certificateholders for any of the following purposes: (i) to cure any ambiguity
or to correct or supplement any provision herein which may be defective or
inconsistent with any other provision herein or in the Currency Swap or in the
Call Option; (ii) to add any security interest for the benefit of any
Certificateholders; (iii) to add to the covenants, restrictions or obligations
of the Company or the Trustee for the benefit of the Certificateholders; (iv) to
add, change or eliminate any other provisions with respect to matters or
questions arising under this Agreement, so long as (x) any such amendment
described in clauses (i) through (iv) above will not, as evidenced by an Opinion
of Counsel, affect the status of the Trust as a "grantor trust" or result in a
sale or exchange of any Certificate for federal income tax purposes and (y) the
Rating Agency Condition has been satisfied; (v) to comply with any requirements
imposed by the Code; or (vi) to evidence and provide for the acceptance of
appointment hereunder by a successor Trustee with respect to the Certificates or
to add or change any of the provisions of this Agreement as shall be necessary
to provide for or facilitate the administration of the trust hereunder.

               (2) Without limiting the generality of the foregoing, this
Agreement may also be modified or amended from time to time by the Company and
the Trustee with the consent of the Holders of Certificates representing the
Required Percentage--Amendment for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Agreement or
of modifying in any manner the rights of the Holders of Certificates; provided,
however, that no

                                       58

<PAGE>   65

such modification or amendment shall, without the consent of each affected
Certificateholder, (i) reduce in any manner the amount of payments received on
the Trust Assets or otherwise adversely affect in any material respect the
interests of the Certificateholder or (ii) reduce the percentage of aggregate
Voting Rights required to modify or amend this Agreement; and provided, further,
that the Company shall furnish to the Trustee an Opinion of Counsel stating
that, in the opinion of such counsel, any such modification or amendment would
not alter the status of the Trust as a "grantor trust" or result in a sale or
exchange of any Certificates for federal income tax purposes.

               (3) In addition to and notwithstanding anything to the contrary
in this Agreement, the Trustee shall not enter into any modification or
amendment of this Agreement that would (i) adversely affect in any material
respect the interests of the Callholder in the Senior Notes without the consent
of the Callholder or (ii) alter the date on which the Call Option is exercisable
or the amount payable as a result of the exercise of the Call Option without the
consent of the Callholder; provided, however, that the Trustee shall not enter
into any modification or amendment of this Agreement unless such modification or
amendment would not, based on an Opinion of Counsel, alter the status of the
Trust as a "grantor trust" or result in a sale or exchange of any Certificates
for federal income tax purposes.

               (4) Promptly after the execution of any such amendment or
modification, the Trustee shall furnish a copy of such amendment or modification
without charge to each Certificateholder, and the Company shall furnish a copy
of such amendment or modification to the Rating Agencies. It shall not be
necessary to obtain the consent of Certificateholders under this Section 11.1 to
approve the particular form of any proposed amendment, but it shall be
sufficient if such consent shall approve the substance thereof. The manner of
obtaining such consents and of evidencing the authorization of the execution
thereof by Certificateholders shall be subject to such reasonable regulations as
the Trustee may prescribe.

               Section 1.56 Counterparts. This Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and such counterparts shall constitute but one and
the same instrument.

                                       59

<PAGE>   66

               Section 1.57 Limitation on Rights of Certificateholders.

               (1) The death or incapacity of any Certificateholder shall not
operate to terminate this Agreement or the Trust, nor entitle such
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding up of the
Trust, nor otherwise affect the rights, obligations and liabilities of the
parties hereto or any of them.

               (2) No Certificateholder shall have any right to vote (except as
expressly provided for herein) or in any manner otherwise control the operation
and management of the Trust, or the obligations of the parties hereto, nor shall
anything herein set forth, or contained in the terms of the Certificates, be
construed so as to constitute the Certificateholders from time to time as
partners or members of an association; nor shall any Certificateholder be under
any liability to any third person by reason of any action taken by the parties
to this Agreement pursuant to any provision hereof.

               (3) No Certificateholder shall have any right by virtue of any
provision of this Agreement to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Agreement or any
Certificate, unless such Holder previously shall have given to the Trustee a
written notice of breach and of the continuance thereof and unless also the
Holders of Certificates evidencing not less than the Required
Percentage--Remedies shall have made written request upon the Trustee to
institute such action, suit or proceeding in its own name as Trustee hereunder
and shall have offered to the Trustee such reasonable indemnity as it may
require against the costs, expenses and liabilities to be incurred therein or
thereby, and the Trustee, for 15 days after its receipt of such notice, request
and offer of indemnity, shall have neglected or refused to institute any such
action, suit or proceeding. It is understood and agreed that the Trustee shall
not be obligated to make any investigation of matters arising under this
Agreement, the Call Option or the Currency Swap or to institute, conduct or
defend any litigation hereunder or in relation hereto at the request, order or
direction of any Certificateholders unless such Certificateholders have offered
to the Trustee the reasonable indemnity referred to above. It is further
understood and agreed, and expressly covenanted by each Certificateholder with
every other Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatever by virtue of any
provision of this Agreement to affect, disturb or prejudice the rights of the
Holders of any other of the Certificates, or to obtain or seek to obtain
priority over or preference to any other such Holder, or to enforce any right
under this Agreement,

                                       60

<PAGE>   67

except in the manner herein provided and for the equal, ratable and common
benefit of all Certificateholders. For the protection and enforcement of the
provisions of this Section 11.3, each and every Certificateholder and the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

               Section 1.58 Governing Law. This Agreement shall be governed by
and construed in accordance with the law of the State of New York applicable to
agreements made and to be performed entirely therein without reference to such
State's principles of conflicts of law to the extent that the application of the
laws of another jurisdiction would be required thereby, and the obligations,
rights and remedies of the parties hereunder shall be determined in accordance
with such laws.

               Section 1.59 Notices.

               (1) All directions, demands and notices hereunder and under the
Agreement shall be in writing and shall be deemed to have been duly given when
received if personally delivered or mailed by first class mail, postage prepaid,
or by express delivery service or by certified mail, return receipt requested,
or delivered by facsimile followed by delivery by mail, or delivered in any
other manner specified herein, (i) in the case of the Company, to 1221 Nicollet
Mall, Minneapolis, Minnesota 55403; Attention: General Counsel; and (ii) in the
case of the Trustee, to 101 Barclay Street, New York, New York, 10286,
Attention: Ming J. Shiang, facsimile number: 212-815-5595, or such other address
as may hereafter be furnished to the Company in writing by the Trustee.

               (2) For purposes of delivering notices to the Rating Agencies
under Section 11.7 or otherwise, such notices shall be mailed or delivered as
provided in Section 11.7 to: Standard & Poor's, 26 Broadway (15th Floor), New
York, New York 10004; and Moody's Investors Service, Inc., 99 Church Street, New
York, New York 10007; or such other address as the Rating Agencies may designate
in writing to the parties hereto.

               (3) Notwithstanding any provision of this Agreement to the
contrary, the Trustee shall deliver all notices or reports required to be
delivered to or by the Trustee or the Company to the Certificateholders without
charge to such Certificateholders.

               (4) Any notice required to be provided to a Holder shall be given
by first class mail, postage prepaid, at the last address of such Holder as
shown

                                       61

<PAGE>   68

in the Certificate Register. Any notice so mailed within the time prescribed in
this Agreement shall be conclusively presumed to have been duly given when
mailed, whether or not the Certificateholder receives such notice.

               Section 1.60 Severability of Provisions. If any one or more of
the covenants, agreements, provisions or terms of this Agreement shall be for
any reason whatsoever held invalid, then such covenants, agreements, provisions
or terms shall be deemed enforceable to the extent permitted, and if not so
permitted, shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Certificates
or the rights of the Holders thereof.

               Section 1.61 Notice to Rating Agencies. The Trustee shall use its
best efforts promptly to provide notice to the Rating Agencies with respect to
each of the following of which it has actual knowledge:

                    (1)  any modification or amendment to this Agreement;

                    (2)  the resignation or termination of the Trustee;

                    (3)  the final payment to Holders of the Certificates; and

                    (4)  any change in the location of a Certificate Account.

In addition, the Trustee shall promptly furnish to each of the Rating Agencies
copies of each report to Certificateholders described in Section 4.3 or
otherwise. Any such notice pursuant to this Section 11.7 shall be in writing and
shall be deemed to have been duly given if personally delivered or mailed by
first class mail, postage prepaid, or by express delivery service to each of the
Rating Agencies at the address specified in Section 11.5.

               Section 1.62 Non-petition Covenant. Notwithstanding any prior
termination of this Agreement, each of the Trustee, any Authenticating Agent,
any Paying Agent and the Company agrees that it shall not, until the date which
is one year and one day after the Final Distribution Date, acquiesce, petition
or otherwise invoke or cause the Trust to invoke the process of the United
States of America, any State or other political subdivision thereof or any
entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to

                                       62

<PAGE>   69

government for the purpose of commencing or sustaining a case by or against the
Trust under a federal or state bankruptcy, insolvency or similar law or
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or
other similar official of the Trust or all or any part of the property or assets
of the Trust or ordering the winding up or liquidation of the affairs of the
Trust.

               Section 1.63 Article and Section References. All article and
section references used in this Agreement, unless otherwise provided, are to
articles and sections in this Agreement.

               Section 1.64 Compliance Certificates and Opinions, etc.

               (1) Upon any application or request by the Company to the Trustee
to take any action under any provision of this Agreement, the Company shall
furnish to the Trustee: (i) an Officer's Certificate stating that all conditions
precedent, if any, provided for in this Agreement relating to the proposed
action have been complied with, and (ii) an Opinion of Counsel stating that in
the opinion of such counsel all such conditions precedent, if any, have been
complied with, except that, in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision
of this Agreement, no additional certificate or opinion need be furnished. Every
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Agreement shall include:

                   (1) a statement that each signatory of such certificate or
         opinion has read or has caused to be read such covenant or condition
         and the definitions herein relating thereto;

                   (2) a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                   (3) a statement that, in the judgement of each such
         signatory, such signatory has made such examination or investigation as
         is necessary to enable such signatory to express an informed opinion as
         to whether or not such covenant or condition has been complied with;
         and

                   (4) a statement as to whether, in the opinion of each such
         signatory, such condition or covenant has been complied with.

                                       63

<PAGE>   70

                  IN WITNESS WHEREOF, the Company and the Trustee have caused
their names to be signed hereto by their respective officers thereunto duly
authorized, in each case as of the day and year first above written.

                                    NRG ENERGY, INC.

                                    By:/s/ Brian B. Bird
                                       ----------------------------------------
                                       Name:  Brian B. Bird
                                       Title: Vice President and Treasurer

                                    THE BANK OF NEW YORK,
                                       not in its individual capacity
                                       but solely as Trustee

                                    By:/s/ Ming J. Shiang
                                       ----------------------------------------
                                       Name:  Ming J. Shiang
                                       Title: Vice President

<PAGE>   71

                                                                       EXHIBIT A

NUMBER                                                              $__________
R-______                                                   CUSIP NO.___________

                  THE CERTIFICATES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS.
NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED,
SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY
APPLICABLE STATE SECURITIES LAWS.

                  THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES
TO OFFER, SELL OR OTHERWISE TRANSFER THIS CERTIFICATE, PRIOR TO THE DATE WHICH
IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE
ON WHICH NRG ENERGY PASS-THROUGH TRUST 2000-1 (THE "TRUST") OR ANY AFFILIATE OF
THE TRUST WAS THE OWNER OF THIS CERTIFICATE (OR ANY PREDECESSOR OF THE
CERTIFICATE) OR THE EXPIRATION OF SUCH SHORTER PERIOD AS MAY BE PRESCRIBED BY
RULE 144(k), OR ANY SUCCESSOR PROVISION THEREOF, UNDER THE SECURITIES ACT (THE
"RESALE RESTRICTION TERMINATION DATE") ONLY (A) TO THE TRUST, (B) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (C) FOR SO LONG AS
THE CERTIFICATES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT ("RULE 144A"), TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED
INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO
OFFERS AND SALES TO NON-US PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN
THE MEANING OF REGULATION

                                      A-1

<PAGE>   72

S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE
SECURITIES LAWS OF THE UNITED STATES, SUBJECT TO THE RIGHT OF THE TRUST, THE
COMPANY AND THE TRUSTEE PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (i) PURSUANT
TO CLAUSE (D) OR (E) ABOVE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATIONS OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM AND (ii) IN
EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE AS TO COMPLIANCE WITH
CERTAIN CONDITIONS TO TRANSFER IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO
THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF A HOLDER AFTER THE
RESALE RESTRICTION TERMINATION DATE OR SUCH EARLIER TIME AS DETERMINED BY THE
TRUST IN ACCORDANCE WITH APPLICABLE LAW.

                  THIS CERTIFICATE REPRESENTS A FRACTIONAL UNDIVIDED INTEREST IN
THE TRUST, ITS INCOME AND ITS ASSETS AND DOES NOT EVIDENCE AN OBLIGATION OF, OR
AN INTEREST IN, AND IS NOT GUARANTEED BY THE COMPANY OR THE TRUSTEE OR ANY OF
THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE TRUST ASSETS ARE
INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY OR ANY PERSON.

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, TO THE
TRUST OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER,
PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

                                      A-2

<PAGE>   73

                      NRG ENERGY PASS-THROUGH TRUST 2000-1

                 REMARKETABLE OR REDEEMABLE SECURITIES ("ROARS")
                               DUE MARCH 15, 2005

evidencing a fractional undivided beneficial ownership interest in the Trust, as
defined below, the property of which consists principally of pound sterling
160,000,000 principal amount of Reset Senior Notes Due March 15, 2020 (the
"Senior Notes") of NRG Energy, Inc, a company incorporated under the laws of the
State of Delaware (the "Company"). The Senior Notes have been purchased by the
Trust with the proceeds of the sale of the Certificates and the Call Option
(each as defined herein).

                  THIS CERTIFIES THAT           is the registered owner of a
nonassessable, fully-paid, fractional undivided interest in NRG Energy
Pass-Through Trust 2000-1 (including its income and assets) formed by the
Company, which Trust has issued Certificates having a Certificate Principal
Balance of $250,000,000, as such amount may be adjusted on the records of the
Holder and the Trustee. Under the Trust Agreement, there will be distributed on
the 15th day of each March and September, or if such day is not a Business Day,
the next succeeding Business Day, commencing September 15, 2000 through and
including the Settlement Date (each a "Distribution Date"), to the extent of
Available Funds (as defined herein), an amount equal to the Dollar Distribution
which will be equal to the amount then payable by Bank of America, N.A. (the
"Swap Counterparty") to the Trustee under the Currency Swap Agreement, dated
March 15, 2000, between the Trustee and the Swap Counterparty (the "Currency
Swap"), and any other amounts remaining in the Certificate Account on such
Distribution Date; provided, however, that, on each Distribution Date occurring
on or after a Swap Termination Event (other than as a result of a Conversion
Event, an Optional Tax Redemption or a Change of Control Repurchase), the
Trustee shall distribute to Holders, to the extent of Available Funds, if any, a
semi-annual Pounds Sterling payment calculated at an annual interest rate as
described in the Indenture on the basis of a 365 or 366-day, as applicable, year
and the actual number of days elapsed due on the principal amount of the Senior
Notes. On the Final Distribution Date, there will be distributed, to the extent
of Available Funds, all distributions received from or in respect of the Trust
Assets.

                  The Trust was created pursuant to a Trust Agreement dated as
of March 20, 2000 (the "Trust Agreement"), between the Company and The Bank of

                                      A-3

<PAGE>   74

New York, a New York banking corporation, not in its individual capacity but
solely as trustee (the "Trustee"). This Certificate does not purport to
summarize the Trust Agreement, and reference is hereby made to the Trust
Agreement for information with respect to the interests, rights, benefits,
obligations, proceeds and duties evidenced hereby and the rights, duties and
obligations of the Trustee with respect hereto. This Certificate is issued under
and is subject to the terms, provisions and conditions of the Trust Agreement,
to which Trust Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound. A copy of the Trust
Agreement may be obtained from the Trustee by written request sent to the
Corporate Trust Office or from the Company by written request sent to the
Company. Capitalized terms used but not defined herein have the meanings
assigned to them in the Trust Agreement.

                  This Certificate is one of the duly authorized Certificates
designated as "8.70% Remarketable or Redeemable Securities ("ROARS") Due March
15, 2005" (herein called the "Certificates"). Concurrently with the issuance of
the Certificates, the Trustee will issue an option (the "Call Option") that
represents the right to purchase the Senior Notes in whole but not in part on
March 15, 2005 at the call price specified in the Call Option. If the holder of
the Call Option does not give irrevocable prior written notice of its intent to
exercise the Call Option or fails to fulfill its payment obligations thereunder
in accordance with the terms of the Call Option, the Trustee shall exercise the
Early Redemption Right (as defined in the Trust Agreement), and the Company
shall be obligated to redeem the Senior Notes at a price equal to the unpaid
principal amount thereof on March 15, 2005. The property of the Trust consists
of the Senior Notes, the aggregate amount deposited in the Certificate Accounts
since the last Distribution Date or, in the case of the first Distribution Date,
since the date of the initial issuance of the Certificates, and (a) for so long
as the Senior Notes are denominated in Pounds Sterling and no Swap Termination
Event has occurred, any Dollar Swap Payment or other Dollar amount paid by the
Swap Counterparty to the Trustee under the Currency Swap, (b) if a Swap
Termination Event (other than as a result of a Conversion Event, an Optional Tax
Redemption or a Change of Control Repurchase) has occurred, the semi-annual
interest payments on the Senior Notes and Pounds Sterling payments on or in
respect of the principal of the Senior Notes made by the Company thereunder and
received by the Trustee in respect of the Senior Notes or, if applicable, any
Swap Termination Payment (subject to Section 6.13 of the Trust Agreement) or
Unpaid Amounts, (c) if a Conversion Event has occurred, the semi-annual Dollar
interest payments on the Senior Notes and Dollar payments on or in respect of
the principal of the Senior Notes made by the Company thereunder and received by
the Trustee in respect of the

                                      A-4

<PAGE>   75

Senior Notes or, if applicable, any Unpaid Amounts, (d) all Option Proceeds and
(e) all Liquidation Proceeds (the "Available Funds").

                  Subject to the terms and conditions of the Trust Agreement and
the Call Option (including the availability of funds for distributions) and
until the obligations created by the Trust Agreement shall have terminated in
accordance therewith, distributions will be made on each Distribution Date to
the Person in whose name this Certificate is registered on the applicable Record
Date, in an amount equal to such Certificateholder's fractional undivided
interest in the amount required to be distributed to the Holders of the
Certificates on such Distribution Date. If any payment by the Swap Counterparty
with respect to the Currency Swap or a payment due on any March 15 or September
15 with respect to the Senior Notes is not made to the Trustee by the designated
times specified in the Trust Agreement on the date such payment is due, or if
such payment is not made on the due date, the Trustee will upon receipt of such
funds make such distribution on the next Business Day (and no additional amounts
of interest shall accrue on the Certificates or be owed to Certificateholders as
a result of any such delay).

                  Distributions made on this Certificate will be made as
provided in the Trust Agreement by the Trustee by wire transfer in immediately
available funds, without the presentation or surrender of this Certificate or
the making of any notation hereon. Except as otherwise provided in the Trust
Agreement and notwithstanding the above, the Final Distribution on this
Certificate will be made after due notice by the Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the
office or agency maintained for that purpose by the Trustee in the Borough of
Manhattan, The City of New York.

                  Reference is hereby made to the further provisions of this
Certificate set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

                  Unless the certificate of authentication hereon has been
executed by or on behalf of the Trustee, by manual signature, this Certificate
shall not entitle the holder hereof to any benefit under the Trust Agreement or
be valid for any purpose.

               THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAW OF
THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND
THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE HOLDER HEREOF SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAW.

                                       A-5

<PAGE>   76

                  IN WITNESS WHEREOF, the Trust has caused this Certificate to
be duly executed as of the date set forth below.

                                            NRG ENERGY PASS-THROUGH TRUST
                                            2000-1, by The Bank of New York, not
                                            in its individual capacity but
                                            solely as Trustee

                                            ------------------------------------
                                                     Authorized Officer

Dated:  March 20, 2000

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

                  This is one of the Certificates described in the Trust
Agreement referred to herein.

                                  THE BANK OF NEW YORK,
                                    not in its individual capacity
                                    but solely as Trustee

                                  By:
                                     ---------------------------------
                                            Authorized Signatory

                                  or

                                  as Authenticating Agent for the Trustee

                                  By:
                                     ---------------------------------
                                            Authorized Signatory

                                      A-6

<PAGE>   77

                         (REVERSE OF TRUST CERTIFICATE)

                  The Certificates are limited in right of distribution to
certain payments and collections as provided in the Trust Agreement, all as more
specifically set forth herein and in the Trust Agreement. The registered Holder
hereof, by its acceptance hereof, agrees that it will look solely to payments
under the Senior Notes, the Call Option and the Currency Swap for distributions
hereunder.

                  Subject to the next paragraph and to certain exceptions
provided in the Trust Agreement, the Trust Agreement permits the amendment
thereof and the modification of the rights and obligations of the Company and
the Trustee and the rights of the Certificateholders under the Trust Agreement
at any time by the Company and the Trustee with the consent of the Holders of
Certificates evidencing not less than 66 _% of the aggregate Voting Rights of
Outstanding Certificates, subject to certain provisions set forth in the Trust
Agreement. Any such consent by the Holder of this Certificate (or any
predecessor Certificate) shall be conclusive and binding on such Holder and upon
all future Holders of this Certificate and of any Certificate issued upon the
transfer hereof or in an exchange hereof or in lieu hereof, whether or not
notation of such consent is made upon this Certificate. The Trust Agreement also
permits the modification or amendment thereof, in certain limited circumstances,
without the consent of the Holders of any of the Certificates.

                  The Certificates are issuable in fully registered form only in
minimum original principal amounts of $100,000 and integral multiples of $1,000
in excess thereof. As provided in the Trust Agreement and subject to certain
limitations therein set forth, Certificates are exchangeable for new
Certificates of the same principal amount, class, original issue date and
maturity, in authorized denominations as requested by the Holder surrendering
the same.

                  As provided in the Trust Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registerable
in the Certificate Register upon surrender of this Certificate for registration
of transfer at the offices or agencies of the Certificate Registrar maintained
by the Trustee in the Borough of Manhattan, The City of New York, duly endorsed
or accompanied by an assignment in the form below and by such other documents as
required by the Trust Agreement, and thereupon one or more new Certificates of
the same class in authorized denominations evidencing the same principal amount
will be issued to the designated transferee or transferees. The Certificate
Registrar appointed under the Trust Agreement is The Bank of New York.

                                      A-7

<PAGE>   78

                  No service charge will be made for any registration of
transfer or exchange, but the Company or the Trustee may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of Certificates.

                  The Company and the Trustee and any agent thereof may treat
the Person in whose name this Certificate is registered as the owner hereof for
all purposes, and neither the Company, the Trustee, nor any such agent shall be
affected by any notice to the contrary.

                  The Trust and the obligations of the Company and the Trustee
created by the Trust Agreement with respect to the Certificates shall terminate
upon the distribution by the Trustee on the Final Distribution Date (i) of all
Option Proceeds following an exercise of the Call Option by the Callholder or an
exercise of the Early Redemption Right (and upon receipt by the Trust from the
Swap Counterparty of Dollars in an amount equal to the Certificate Principal
Amount in exchange for the proceeds of such exercise), as the case may be, or
(ii) of all Liquidation Proceeds received by the Trustee following a Trust
Termination Event, as the case may be, or (iii) of all Dollar Distributions or
Pounds Sterling distributions, as the case may be, received by the Trustee, not
previously distributed pursuant to Section 4.1 of the Trust Agreement, or (iv)
the expiration of 21 years from the death of the last survivor of the
descendants of Joseph P. Kennedy, the late Ambassador of the United States to
the Court of St. James, living on the date hereof, whichever of clauses (i),
(ii), (iii) or (iv) above shall be the first to occur.

                                      A-8

<PAGE>   79

                                   ASSIGNMENT

                   FOR VALUE RECEIVED the undersigned hereby sells, assigns and
transfers unto

PLEASE INSERT SOCIAL SECURITY OR
TAXPAYER IDENTIFICATION OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE

 (Please print or type name and address, including postal zip code, of assignee)

the within Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing
            Attorney to transfer said Certificate on the books of the
Certificate Registrar, with full power of substitution in the premises.

Dated:

*
                              Signature Guaranteed;

* NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Certificate in every particular, without
alteration, enlargement or any change whatever. Such signature must be
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Certificate Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Certificate Registrar in addition to, or in substitution for,
STAMP, all in accordance with the Trust Agreement and the Securities Exchange
Act of 1934, as amended.

                                       A-9

<PAGE>   80
                   FORM OF OPTION OF HOLDER TO ELECT PURCHASE

                  If you wish to have this Certificate purchased by the Company
pursuant to Section 3.4 of the Trust Agreement, check the Box: [insert box].

                  If you wish to have a portion of this Certificate purchased by
the Company pursuant to Section 3.4 of the Trust Agreement, state the amount (in
original principal amount):

                                       $
                                        --------------
Date:                                  Your Signature:

                                       (Sign exactly as your name appears on the
                                       other side of this Certificate)

Signature Guarantee:
                                    --------------------------------------

<PAGE>   81

                                                                       EXHIBIT B

                     [Form of Confirmation for Call Option]

                                      B-1

<PAGE>   82

                                                                       EXHIBIT C

                    [Form of Confirmation for Currency Swap]

                                      C-1

<PAGE>   83

                                                                       EXHIBIT D

   Notice of Payment Default by the Swap Counterparty under the Currency Swap

                                                           [Date]

To: Bank of America, N.A.
    [address]

                  Pursuant to Section 9.1(a) of the Trust Agreement dated as of
March 20, 2000 (the "Trust Agreement") among NRG Energy, Inc. and The Bank of
New York, as trustee (the "Trustee"), with respect to the 8.70% Remarketable or
Redeemable Securities ("ROARS") Due March 15, 2005, the Trustee hereby gives
notice of a payment default on the date hereof by you, as Swap Counterparty
under the Currency Swap (as defined in the Trust Agreement).

                  The Currency Swap shall terminate on the third Business Day
following such default, unless remedied prior thereto.

                                THE BANK OF NEW YORK,
                                  as Trustee under the Trust
                                  Agreement

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

cc:  NRG Energy, Inc.

                                       D-1

<PAGE>   84

                                                                       EXHIBIT E

        Notice of Payment Default by the Callholder Under the Call Option

                                                   [Date]

To: Bank of America, N.A.
    [address]

                  Pursuant to Section 9.1(a) of the Trust Agreement dated as of
March 20, 2000 (the "Trust Agreement") between NRG Energy, Inc. and The Bank of
New York, as trustee (the "Trustee"), with respect to the 8.70% Remarketable or
Redeemable Securities ("ROARS") Due March 15, 2005, the Trustee hereby gives
notice of a payment default on the date hereof by you as callholder under the
Call Option (as defined in the Trust Agreement).

                  The Call Option terminated on the date of such default.

                                               THE BANK OF NEW YORK,
                                                 as Trustee under the Trust
                                                 Agreeement

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

cc:  NRG Energy, Inc.

                                      E-1<PAGE>   1

                                                                     EXHIBIT 4.8

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

                                NRG ENERGY, INC.

                                       and

                              THE BANK OF NEW YORK,

                                   as Trustee

                                    INDENTURE

                           Dated as of March 20, 2000

                           pound sterling 160,000,000

                      Reset Senior Notes Due March 15, 2020

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

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                               PAGE
                                                                                                               ----

                                        ARTICLE IDEFINITIONS

<S>               <C>                                                                                          <C>
Section 1.1       Certain Terms Defined...........................................................................1

                   ARTICLE II ISSUE, EXECUTION, FORM AND REGISTRATION OF SECURITIES

Section 2.1       Authentication and Delivery of Securities......................................................11
Section 2.2       Execution of Securities........................................................................11
Section 2.3       Certificate of Authentication..................................................................12
Section 2.4       Form, Denomination and Date of Securities......................................................12
Section 2.5       Mutilated, Defaced, Destroyed, Lost and Stolen Securities......................................13
Section 2.6       Cancellation of Securities; Destruction Thereof................................................14
Section 2.7       Transfer Agent and Paying Agent................................................................14

                                 ARTICLE III TERMS OF THE SECURITIES
Section 3.1       Issue of Securities............................................................................14
Section 3.2       Interest through the Initial Reset Date........................................................15
Section 3.3       Conversion Event...............................................................................15
Section 3.4       Interest after Initial Reset Date..............................................................16
Section 3.5       Mandatory Tender...............................................................................17
Section 3.6       Redemption.....................................................................................18

                          ARTICLE IV COVENANTS OF THE ISSUER AND THE TRUSTEE

Section 4.1       Payment of Principal and Interest..............................................................19
Section 4.2       Offices for Payments, etc......................................................................20
Section 4.3       Appointment to Fill Vacancy in Office of Trustee...............................................20
Section 4.4       Paying Agents..................................................................................20
Section 4.5       Certificate to Trustee.........................................................................21
Section 4.6       Securityholder's Lists.........................................................................21
Section 4.7       Reports by the Issuer..........................................................................22
Section 4.8       Limitation on Liens............................................................................22
Section 4.9       Payment of Additional Amounts..................................................................22
Section 4.10      Repurchase of Securities Upon a Change of Control..............................................24

                        ARTICLE V REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS
</TABLE>

                                       i

<PAGE>   3

<TABLE>
<CAPTION>

                               ON EVENT OF DEFAULT

<S>               <C>                                                                                           <C>
Section 5.1       Event of Default Defined; Acceleration of Maturity; Waiver of Default..........................26
Section 5.2       Collection of Indebtedness by Trustee; Trustee May Prove Debt..................................29
Section 5.3       Application of Proceeds........................................................................31
Section 5.4       Suits for Enforcement..........................................................................32
Section 5.5       Restoration of Rights on Abandonment of Proceedings............................................32
Section 5.6       Limitations of Suits by Securityholders........................................................32
Section 5.7       Powers and Remedies Cumulative, Delay or Omission Not Waiver of Default........................33
Section 5.8       Control by Securityholders.....................................................................33
Section 5.9       Waiver of Past Defaults........................................................................34
Section 5.10      Rights of Holders to Receive Payment...........................................................34

                                  ARTICLE VI CONCERNING THE TRUSTEE
Section 6.1       Duties and Responsibilities of the Trustee; During Default; Prior to Default...................34
Section 6.2       Certain Rights of the Trustee..................................................................35
Section 6.3       Trustee Not Responsible for Recitals, Disposition of Securities or
                  Application of Proceeds Thereof................................................................37
Section 6.4       Trustee and Agents May Hold Securities; Collections, etc.......................................37
Section 6.5       Moneys Held by Trustee.........................................................................37
Section 6.6       Compensation and Indemnification of Trustee and Its Prior Claim................................37
Section 6.7       Right of Trustee to Rely on Officers' Certificate, etc.........................................38
Section 6.8       Persons Eligible for Appointment as Trustee....................................................38
Section 6.9       Resignation and Removal; Appointment of Successor Trustee......................................38
Section 6.10      Acceptance of Appointment by Successor Trustee.................................................39
Section 6.11      Merger, Conversion, Consolidation or Succession to Business of Trustee.........................40

                              ARTICLE VII CONCERNING THE SECURITYHOLDERS
Section 7.1       Evidence of Action Taken by Securityholders....................................................41
Section 7.2       Proof of Execution of Instruments and of Holding of Securities Record Date.....................41
Section 7.3       Holders to Be Treated as Owners................................................................41
Section 7.4       Securities Owned by Issuer Deemed Not Outstanding..............................................42
Section 7.5       Right of Revocation of Action Taken............................................................42

                                 ARTICLE VIII SUPPLEMENTAL INDENTURES
Section 8.1       Supplemental Indentures Without Consent of Securityholders.....................................43
Section 8.2       Supplemental Indentures With Consent of Securityholders........................................44
Section 8.3       Effect of Supplemental Indenture...............................................................45
Section 8.4       Documents to Be Given to Trustee...............................................................45
Section 8.5       Notation of Securities in Respect of Supplemental Indentures...................................45

                             ARTICLE IX CONSOLIDATION, MERGER, SALE OR CONVEYANCE
</TABLE>

                                       ii
<PAGE>   4

<TABLE>

<S>               <C>                                                                                           <C>
Section 9.1       Covenant Not to Merge, Consolidate, Sell or Transfer Assets Except Under Certain
                  Conditions.....................................................................................46
Section 9.2       Successor Corporation Substituted..............................................................47
Section 9.3       Opinion of Counsel to Trustee; Officers' Certificate...........................................47

                                  ARTICLE X SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS
Section 10.1      Satisfaction and Discharge of Indenture........................................................48
Section 10.2      Application by Trustee of Funds Deposited for Payment of Securities............................49
Section 10.3      Repayment of Moneys Held by Paying Agent.......................................................49
Section 10.4      Return of Moneys Held by Trustee and Paying Agent Unclaimed
                  for Two Years..................................................................................49
Section 10.5      Defeasance and Discharge of Indenture..........................................................49
Section 10.6      Defeasance of Certain Obligations..............................................................51

                                 ARTICLE XI MISCELLANEOUS PROVISIONS
Section 11.1      Incorporators, Shareholders, Officers and Directors of Issuer Exempt from
                  Individual Liability...........................................................................52
Section 11.2      Provisions of the Indenture for the Sole Benefit of Parties
                  and Securityholders............................................................................52
Section 11.3      Successors and Assigns of Issuer Bound by Indenture............................................53
Section 11.4      Notices and Demands on Issuer, Trustee and Securityholders.....................................53
Section 11.5      Rule 144A Information..........................................................................54
Section 11.6      Officers' Certificates and Opinions of Counsel, Statements to Be Contained Therein.............54
Section 11.7      Payments Due on Saturdays, Sundays and Holidays................................................55
Section 11.8      New York Law to Govern.........................................................................55
Section 11.9      Consent to Jurisdiction........................................................................56
Section 11.10     Counterparts...................................................................................56
Section 11.11     Effect of Headings.............................................................................56

Exhibit A.......................................................................................................A-1
</TABLE>

                                      iii

<PAGE>   5

                  INDENTURE, dated as of March 20, 2000, between NRG ENERGY,
INC., a Delaware corporation (herein called the "Issuer"), and THE BANK OF NEW
YORK, a New York banking corporation, as trustee (herein called the "Trustee").

                              W I T N E S S E T H:

                  WHEREAS, the Issuer has duly authorized the issuance of
pound sterling 160,000,000 aggregate principal amount of its Reset Senior Notes
Due March 15, 2020 (the "Securities") and, to provide, among other things, for
the authentication, delivery and administration thereof, the Issuer has duly
authorized the execution and delivery of this Indenture; and

                  WHEREAS, all things necessary to make the Securities, when
executed by the Issuer and authenticated and delivered by the Trustee as in this
Indenture provided, the valid, binding and legal obligations of the Issuer, and
to constitute these presents a valid indenture and agreement according to its
terms, have been done and performed;

                  NOW, THEREFORE, in consideration of the premises and of the
acceptance and purchase of the Securities by the Holders (as defined herein)
thereof, the Issuer and the Trustee mutually covenant and agree for the equal
and proportionate benefit of the respective Holders from time to time of the
Securities as follows:

ARTICLE 1

                                   DEFINITIONS

                  Section 1.1       Certain Terms Defined.

                  The following terms (except as otherwise expressly provided)
for all purposes of this Indenture shall have the respective meanings specified
in this Section 1.1. All accounting terms used herein and not expressly defined
shall have the meanings given to them in accordance with GAAP (as defined
herein). The words "herein," "hereof" and "hereunder" and other words of similar
import refer to this Indenture as a whole and not to any particular Article,
Section or other subdivision. The terms defined in this Article include the
plural as well as the singular.

                  "Additional Amounts" has the meaning specified in Section 4.9.

                  "Affiliate" of any specified Person means any other Person
directly or indirectly controlling or controlled by, or under direct or indirect
common control with, such specified Person. For the purposes of this definition,
"control", when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling", and "controlled" have meanings correlative to the
foregoing.

<PAGE>   6

                  "Authenticating Agent" means any Person authorized to
authenticate and deliver Securities on behalf of the Trustee pursuant to Section
2.1.

                  "Bearer Security" means any Security that is payable to
bearer.

                  "Board of Directors" means the Board of Directors of the
Issuer.

                  "Board Resolution" means a copy of a resolution certified by a
Director of the Issuer to have been duly adopted by the Board of Directors or
any committee of such Board duly authorized to act on behalf of such Board, and
to be in full force and effect on the date of such certification.

                  "Business Day" means each day that is not a Saturday, Sunday
or a day on which banking institutions and foreign exchange markets in New York
City or London, or in any place of payment of the Securities, are authorized or
obligated by law to remain closed.

                  "Callholder" means Bank of America, N.A., as holder of the
call option under the Call Option Agreement.

                  "Call Option Agreement" means the confirmation, dated March
20, 2000, between the Pass-Through Trustee and the Callholder, pursuant to the
ISDA Master Agreement, providing a call option to the Callholder.

                  "Certificate Change of Control Offer" means a "Change of
Control Offer" as defined in Section 3.4 of the Trust Agreement.

                  "Certificates" means the 8.70% Remarketable or Redeemable
Securities ("ROARS") Due March 15, 2005 issued by the NRG Energy Pass-Through
Trust 2000-1 and authorized by, and authenticated and delivered under, the Trust
Agreement.

                  "Certificate Repurchase Date" shall be the repurchase date of
the Certificates pursuant to a Change of Control Offer, as set forth in the
Trust Agreement.

                  "Change of Control" means the occurrence of one or more of the
following events: (i) NSP (or its successors) shall cease to own a majority of
the outstanding Voting Stock of the Issuer, (ii) at any time following the
occurrence of the event described in clause (i), a Person or group (as that term
is used in Section 13(d)(3) of the Exchange Act) of Persons (other than NSP)
shall have become the beneficial owner directly or indirectly, or shall have
acquired the absolute power to direct the vote, of more than 35% of the
outstanding Voting Stock of the Issuer or (iii) during any twelve-month period,
individuals who at the beginning of such period constitute the Board of
Directors (together with any new directors whose election or nomination was
approved by a majority of the directors then in office who were either directors
at the beginning of such period or who were previously so approved) shall cease
for any reason to con-

                                       2
<PAGE>   7

stitute a majority of the Board of Directors. Notwithstanding the foregoing, a
Change of Control shall be deemed not to have occurred if one or more of the
above events occurs or circumstances exist and, after giving effect thereto, the
Securities are rated Investment Grade. For purposes of clause (i), NSP's
"successors" shall be deemed to include NSP, as the "surviving corporation," as
that term is used in the Agreement and Plan of Merger, dated as of March 24,
1999, by and between NSP and New Century Energies, Inc., if the merger
contemplated by such agreement is consummated substantially in accordance with
the terms specified therein.

                  "Change of Control Offer" has the meaning set forth in Section
4.10(b).

                  "Commission" means the United States Securities and Exchange
Commission, as from time to time constituted, created under the Exchange Act,
or, if at any time after the execution of this instrument such Commission is not
existing and performing the duties now assigned to it, then the body performing
such duties at such time.

                  "Consolidated Current Liabilities" mean such liabilities of
the Issuer on a consolidated basis as shall be determined in accordance with
GAAP to constitute current liabilities.

                  "Consolidated Net Tangible Assets" means, as of the date of
determination thereof, the total amount of all Issuer's assets determined on a
consolidated basis in accordance with GAAP as of such date less the sum of (a)
Consolidated Current Liabilities and (b) Intangible Assets.

                  "Conversion Event" means the occurrence of an Event of Default
at any time prior to (but excluding) the Initial Reset Date, that results in the
outstanding principal amount of the Securities being due and payable
immediately.

                  "Corporate Trust Office" means the principal office of the
Trustee in The City of New York, at which at any particular time its corporate
trust business shall be administered, which at the date hereof is 101 Barclay
Street, New York, New York, 10286.

                  "Currency Swap" means the Currency Swap Agreement between the
Swap Counterparty and the Pass-Through Trustee, pursuant to an ISDA Master
Agreement between such parties dated March 20, 2000.

                  "discharged" means, with respect to the Securities, the
discharge of the entire indebtedness represented by, and all obligations of the
Issuer under, the Securities and the satisfaction of all the obligations of the
Issuer under this Indenture relating to the Securities, except (A) the rights of
Holders of the Securities to receive, from the trust fund described in Section
10.1 hereof, payment of the principal of, and premium, if any, and interest, if
any, on the Securities when such payments are due, (B) the Issuer's obligations
with respect to the Securities

                                       3

<PAGE>   8

with respect to registration, transfer, exchange and maintenance of a place of
payment and (C) the rights, powers, trusts, duties, protections and immunities
of the Trustee under this Indenture.

                  "Dollar" or "$" means a dollar or other equivalent unit in
such coin or currency of the United States as at the time shall be legal tender
for the payment of public and private debt in the United States.

                  "Dollar Swap Payment" means a semi-annual Dollar payment made
by the Swap Counterparty to the Pass-Through Trustee on behalf of the holders of
Certificates which is calculated at an annual interest rate of 8.70% on the
basis of a 360-day year consisting of twelve months of 30-days each due on the
lesser of $250,000,000 aggregate notional amount or a notional amount equal to
the outstanding principal amount of the Certificates following a partial
repurchase pursuant to a Certificate Change of Control Offer.

                  "DTC" means The Depository Trust Company (or a nominee
thereof) or its successors.

                  "Event of Default" means any event or condition specified as
such in Section 5.1 hereof that shall have continued for the period of time, if
any, therein designated.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

                  "Final Reset Date" means March 15, 2006, unless such date is
not a Business Day, in which case the next succeeding day that is a Business
Day.

                  "Fixed Rate Determination Date" means the 5th Business Day
prior to the Fixed Rate Reset Date.

                  "Fixed Rate Reset Date" means the Reset Date corresponding to
the Floating Rate Period Termination Date or the Initial Reset Date, as
applicable.

                  "Floating Period Interest Rate" means, with respect to any
Floating Rate Reset Period, the per annum interest rate with respect to the
Securities for such Floating Rate Reset Period determined by the Remarketing
Agent in accordance with the Remarketing Agreement.

                  "Floating Rate Option" means the right of the Issuer to, at
its option, reset the interest rate on the Securities on any Reset Date to the
Floating Period Interest Rate for each Floating Rate Reset Period.

                  "Floating Rate Period" means the period from and including the
Initial Reset Date to but excluding the Floating Rate Period Termination Date.

                                       4

<PAGE>   9

                  "Floating Rate Period Termination Date" means the Final Reset
Date or an earlier Reset Date if the Issuer elects to earlier terminate the
Floating Rate Period, provided that the Issuer gives notice of such election to
the Trustee and the Remarketing Agent no later than the 12th Business Day prior
to such earlier Reset Date in accordance with the Remarketing Agreement.

                  "Floating Rate Purchase Price" means the purchase price to be
paid for the Securities as determined on the on the Floating Rate Spread
Determination Date, which shall be equal to (i) the principal amount of the
Securities plus (ii) the Senior Note Premium.

                  "Floating Rate Reset Period" means the period from and
including the Initial Reset Date to but excluding the next succeeding Reset Date
and thereafter the period from and including such next succeeding Reset Date to
but excluding the next succeeding Reset Date; provided, however, that the final
Floating Rate Reset Period shall extend to but exclude the Floating Rate Period
Termination Date.

                  "Floating Rate Spread Determination Date" means the 5th
Business Day prior to the Initial Reset Date.

                  "GAAP" means generally accepted accounting principles in the
U.S. applied on a basis consistent with the principles, methods, procedures and
practices employed in the preparation of the Issuer's audited financial
statements, including, without limitation, those set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
approved by a significant segment of the accounting profession.

                  "Gross-Up Taxes" has the meaning set forth in Section 4.9.

                  "Holder," "Holder of Securities," "Securityholder" and other
similar terms mean the registered holder of any Security.

                  "Indebtedness" has the meaning set forth in Section 4.8.

                  "Indenture" means this instrument as originally executed and
delivered or, if amended or supplemented as herein provided, as so amended or
supplemented.

                  "Initial Reset Date" means March 15, 2005 (unless such date is
not a Business Day, in which case the next succeeding day that is a Business
Day).

                  "Intangible Assets" means, as of the date of determination
thereof, all assets of the Issuer properly classified as intangible assets as
determined on a consolidated basis in accordance with GAAP.

                                       5
<PAGE>   10

                  "Interest Accrual Period" means the period from and including
the preceding Interest Payment Date (or, in the case of the first such period,
from and including the date of initial issuance of the Securities) to but
excluding the current Interest Payment Date.

                  "Interest Amount" has the meaning set forth in Section 3.2(c).

                  "Interest Payment Date" means, in the case of interest
accruing on the Securities (i) during the period from and including the date of
initial issuance of the Securities to but excluding the Initial Reset Date, each
March 15 and September 15 in such period and the Initial Reset Date (unless any
such date is not a Business Day and a Conversion Event has not occurred, in
which case the next succeeding day that is a Business Day), (ii) during the
period from and including the Fixed Rate Reset Date to but excluding the final
maturity of the Securities, each March 15 and September 15 and (iii) during each
Floating Rate Reset Period in the Floating Rate Period, the Reset Date next
succeeding such Floating Rate Reset Period.

                  "Interest Rate to Maturity" means the per annum interest rate
with respect to the Securities from and including the Fixed Rate Reset Date to
but excluding the final maturity of the Securities equal to the rate determined
by the Remarketing Agent pursuant to the Remarketing Agreement that would
amortize the Senior Note Premium on the basis set forth in the Remarketing
Agreement.

                  "Investment Banker" means an independent investment banking
institution of national standing selected by the Issuer.

                  "Investment Grade" means, with respect to the Securities, a
rating of Baa3 or higher by Moody's Investors Service, Inc., and a rating of
BBB- or higher by Standard and Poor's Ratings Group (or, if either or both of
the foregoing rating agencies cease to rate the Securities for reasons beyond
the control of the Issuer, equivalent ratings by one or two (as the case may be)
other nationally recognized statistical rating organizations (as such term is
defined in Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act)); provided that if
either of the foregoing rating agencies shall change its ratings designations
while the Securities are Outstanding, "Investment Grade" shall mean the lowest
ratings designation signifying "investment grade" issued by such agency (or
higher).

                  "ISDA Master Agreement" means the ISDA Master Agreement dated
as of March 7, 2000 between Bank of America, N.A. and the Pass-Through Trustee,
as supplemented and amended by the schedule thereto.

                  "Issuer" means NRG Energy, Inc., a Delaware corporation, and,
subject to Article 9 hereof, its successors and assigns.

                  "NSP" means Northern States Power Company, a Minnesota
corporation.

                                       6

<PAGE>   11

                  "Officers' Certificate" means a certificate signed on behalf
of the Issuer by the Chairman of the Board of Directors or any committee of such
Board duly authorized to act on behalf of such Board or the President, or any
Vice President and by the Chief Financial Officer or the Secretary or any
Assistant Secretary or the Treasurer or any Assistant Treasurer of the Issuer
and delivered to the Trustee. Each such certificate shall include the statements
provided for in Section 11.6 hereof, if and to the extent required thereby.

                  "Opinion of Counsel" means an opinion in writing signed by
legal counsel satisfactory to the Trustee, who may be an employee of or counsel
to the Issuer. Each such opinion shall include the statements provided for in
Section 11.6 hereof, if and to the extent required thereby.

                  "Outstanding", when used with reference to Securities, shall,
subject to the provisions of Section 7.4 hereof, mean, as of any particular
time, all Securities authenticated and delivered by the Trustee under this
Indenture, except:

                          (1) Securities theretofore canceled by the Trustee or
          delivered to the Trustee for cancellation, or which shall have been
          paid pursuant to Section 2.7 hereof (other than any such Securities in
          respect of which there shall have been presented to the Trustee proof
          satisfactory to it that such Securities are held by a bona fide
          purchaser in whose hands the Securities are valid obligations of the
          Issuer); and

                          (2) Securities, or portions thereof, for the payment
          or redemption of which moneys or direct obligations of the United
          States of America backed by its full faith and credit in the necessary
          amount shall have been deposited in trust with the Trustee or with any
          paying agent (other than the Issuer) or shall have been set aside,
          segregated and held in trust by the Issuer (if the Issuer shall act as
          its own paying agent), provided that if such Securities are to be
          redeemed prior to the maturity thereof, notice of such redemption
          shall have been given as herein provided, or provision satisfactory to
          the Trustee shall have been made for giving such notice.

                  "Pass-Through Trustee" means The Bank of New York, as trustee
of the NRG Energy Pass-Through Trust 2000-1.

                  "Paying Agent" means any Person authorized by the Issuer to
pay the principal of, or premium, if any, or interest on, any Securities on
behalf of the Issuer hereunder, including, without limitation, the Principal
Paying Agent.

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

                                       7
<PAGE>   12

                  "Pounds Sterling" means such currency of the United Kingdom as
at the time of payment is legal tender for the payment of public and private
debts.

                  "Principal Paying Agent" means The Bank of New York until a
successor Principal Paying Agent shall have become such pursuant to the
applicable provisions of this Indenture and, thereafter, "Principal Paying
Agent" shall mean such successor Principal Paying Agent.

                  "Redemption Date", when used with respect to any Security to
be redeemed, means the date fixed for such redemption by or pursuant to this
Indenture.

                  "Redemption Price", when used with respect to any Security to
be redeemed, means the price at which such Security is to be redeemed pursuant
to this Indenture, exclusive of accrued and unpaid interest.

                  "Regulation S" means Regulation S under the Securities Act, as
such Regulation may be amended from time to time, or under any similar rules or
regulations hereafter adopted by the Commission.

                  "Relevant Date" for any payment to be made with respect to the
Securities of any series means whichever is the later of (i) the date on which
the relevant payment first becomes due and (ii) if the full amount payable has
not been received in The City of New York by the Trustee on or prior to such due
date, the date on which, the full amount payable having been so received, notice
to that effect shall have been given to the Holders in accordance with this
Indenture.

                  "Remarketing Agreement" means the Remarketing Agreement dated
as of March 20, 2000 between the Issuer and the Remarketing Agent.

                  "Remarketing Agent" means Banc of America Securities LLC or
any affiliate thereof or its successor or assigns.

                  "Reset Date" means, as applicable, any of the Initial Reset
Date and, as applicable, June 15, 2005, September 15, 2005, December 15, 2005 or
March 15, 2006 (unless any such date is not a Business Day, in which case the
next succeeding day that is a Business Day).

                  "Responsible Officer", when used with respect to the Trustee,
means any officer of the Trustee assigned by the Trustee to administer its
corporate trust matters.

                  "Rule 144A" means Rule 144A under the Securities Act, as such
Rule may be amended from time to time, or under any similar rules or regulation
hereafter adopted by the Commission.

                                       8
<PAGE>   13

                  "Securities" has the meaning stated in the first recital of
this Indenture and more particularly means any Securities authenticated and
delivered under this Indenture.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Security" or "Securities" has the meaning set forth in the
recitals above.

                  "Senior Note Premium" means the "Note Premium" on the
Securities as that term is defined in the Remarketing Agreement and as
determined by Remarketing Agent pursuant to the Remarketing Agreement.

                  "Senior Note Repurchase Date" has the meaning set forth in
Section 4.10(b).

                  "Stated Maturity" means, with respect to any Security or any
installment of interest thereon, the date specified as the fixed date on which
any principal or any such installment of interest is due and payable.

                  "Sterling Swap Payment" means a semi-annual payment to be made
by the Pass-Through Trustee to the Swap Counterparty which is calculated to
equal the Pound Sterling semi-annual interest payment required to be made by the
Company on the Securities.

                  "Swap Counterparty" means Bank of America, N.A., or its
successors.

                  "Swap Termination Event" means the termination of the Currency
Swap in accordance with its terms on March 15, 2005 (or, if such day is not a
Business Day, the next succeeding Business Day), unless earlier terminated as a
result of (a) the failure for 30 days by the Pass-Through Trustee to make a
Sterling Swap Payment thereunder, (b) the failure by the Swap Counterparty to
make a Dollar Swap Payment thereunder if such failure is not remedied on or
before the third Business Day after notice of such failure is given by the
Pass-Through Trustee to the Swap Counterparty, (c) the occurrence of a
Conversion Event, (d) the occurrence of a redemption of the Securities as a
result of an Optional Tax Redemption, (e) the occurrence of a repurchase of 100%
of the Securities as a result of a Change of Control, (f) the commencement of
insolvency, conservatorship or receivership in respect of the Trust or (g)
certain other events as described in the Currency Swap.

                  "Taxing Jurisdiction" means the jurisdiction (or any political
subdivision or taxing authority thereof) under the laws of which the Issuer is
incorporated or in which the Issuer is managed and controlled or has a place of
business.

                  "Trust Agreement" means the Trust Agreement, dated as of March
20, 2000, between the Issuer and The Bank of New York, as trustee.

                                       9
<PAGE>   14

                  "Trustee" means the entity identified as "Trustee" in the
first paragraph hereof until the appointment of a successor trustee pursuant to
Article 6, after which "Trustee" shall mean such successor trustee.

                  "United States" means the United States of America (including
the States and the District of Columbia), its territories, its possessions and
other areas subject to its jurisdiction.

                  "U.S. Government Obligations" means securities that are (i)
direct and unconditional obligations of the United States of America for the
payment of which its full faith and credit is pledged or (ii) obligations of a
Person controlled or supervised by, and acting as an agency or instrumentality
of, the United States of America, the payment of which is unconditionally
guaranteed as a full faith and credit obligation by the United States of America
and which, in either case, are not callable or redeemable at the option of the
issuer thereof, and shall also include a depository receipt issued by a bank or
trust company subject to federal or state supervision or examination with a
combined capital and surplus of at least $100,000,000, as custodian with respect
to any such U.S. Government Obligations or a specific payment of interest on or
principal of any such U.S. Government Obligation held by such custodian for the
account of the holder of a depository receipt, provided that (except as required
by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by the
custodian in respect of the U.S. Government Obligation or the specific payment
of interest on or principal of the U.S. Government Obligation evidenced by such
depository receipt.

                  "Voting Stock" means, with respect to any Person, Capital
Stock of any class or kind ordinarily having the power to vote for the election
of directors (or persons fulfilling similar responsibilities) of such Person.

                  "1996 Senior Notes" means $125,000,000 aggregate principal
amount of 7.625% Securities Due 2006 of the Issuer, issued pursuant to an
Indenture dated as of January 31, 1996, between the Issuer and Norwest Bank
Minnesota, National Association.

                  "1997 Senior Notes" means $250,000,000 principal amount of 7
1/2% Senior Notes Due 2007 of the Issuer, issued pursuant to an Indenture dated
as of June 1, 1997, between the Issuer and Norwest Bank Minnesota, National
Association.

                  "1999 Senior Notes" means $300,000,000 principal amount of 7
1/2 % Senior Notes Due 2009 of the Issuer, issued pursuant to an Indenture dated
as of May 25, 1999, between the Issuer and Norwest Bank Minnesota, National
Association.

                  "1999 ROARS" means $240,000,000 principal amount of 8%
Remarketable or Redeemable Securities (ROARS(SM)) due 2013 of the Issuer, issued
pursuant to an Indenture dated as of November 8, 1999, between the Issuer and
Norwest Bank Minnesota, National Association.

                                       10
<PAGE>   15

ARTICLE 2

             ISSUE, EXECUTION, FORM AND REGISTRATION OF SECURITIES

                  Section 2.1  Authentication and Delivery of Securities.

                  Upon the execution and delivery of this Indenture, or from
time to time thereafter, Securities in an aggregate principal amount not in
excess of pound sterling 160,000,000 (except as otherwise provided in Section
2.5 hereof) may be executed by the Issuer and delivered to the Trustee for
authentication, and the Trustee or the Authentication Agent shall thereupon
authenticate and deliver said Securities to or upon the written order of the
Issuer, signed by both (a) its Chairman of the Board of Directors or any
committee of such Board duly authorized to act on behalf of such Board, or any
Vice Chairman of the Board of Directors or any committee of such Board duly
authorized to act on behalf of such Board, or its President or any Vice
President and (b) by its Chief Financial Officer, or its Secretary or any
Assistant Secretary, or its Treasurer or any Assistant Treasurer without any
further action by the Issuer. The Securities shall be direct, unconditional
obligations of the Issuer and shall rank pari passu without preference among
themselves and equally in priority of payment with all other present and future
unsubordinated, unsecured indebtedness of the Issuer.

                  Section .1   Execution of Securities.

                  The Securities shall be signed on behalf of the Issuer by both
(a) its Chairman of the Board of Directors or any committee of such Board duly
authorized to act on behalf of such Board, or any Vice Chairman of the Board of
Directors or any committee of such Board duly authorized to act on behalf of
such Board, or its President or any Vice President and (b) by its Chief
Financial Officer or its Secretary or its Assistant Secretary or its Treasurer
or any Assistant Treasurer, under its corporate seal which may, but need not, be
attested. Such signatures may be the manual or facsimile signatures of the
present or any future such officers. The seal of the Issuer may be in the form
of a facsimile thereof and may be impressed, affixed, imprinted or otherwise
reproduced on the Securities. Typographical and other minor errors or defects in
any such reproduction of the seal or any such signature shall not affect the
validity or enforceability of any Security that has been duly authenticated and
delivered by the Trustee.

                  In case any officer of the Issuer who shall have signed any of
the Securities shall cease to be such officer before the Security so signed
shall be authenticated and delivered by the Trustee or disposed of by the
Issuer, such Security nevertheless may be authenticated and delivered or
disposed of as though the Person who signed such Security had not ceased to be
such officer of the Issuer; and any Security may be signed on behalf of the
Issuer by such Persons as, at the actual date of the execution of such Security,
shall be the proper officers of the Issuer, although at the date of the
execution and delivery of this Indenture any such Person was not such officer.

                                       11
<PAGE>   16

                  Section .2     Certificate of Authentication.

                  Only such Securities as shall bear thereon a certificate of
authentication substantially in the form recited in the form of Security
attached as Exhibit A hereto, executed by the Trustee or the Authenticating
Agent by manual signature of one of its authorized signatories, shall be
entitled to the benefits of this Indenture or be valid or obligatory for any
purpose. Such certificate by the Trustee or the Authenticating Agent upon any
Security executed by the Issuer shall be conclusive evidence that the Security
so authenticated has been duly authenticated and delivered hereunder and that
the Holder is entitled to the benefits of this Indenture.

                  Section 2.2   Form, Denomination and Date of Securities.

                  (1) The Securities and the Trustee's certificate of
authentication shall be substantially in the form set forth in the form of
Security attached as Exhibit A hereto, the terms of which are herein
incorporated by reference and which are part of this Indenture. The Securities
shall be numbered, lettered, or otherwise distinguished in such manner or in
accordance with such plans as the officers of the Issuer executing the same may
determine with the approval of the Trustee. Any of the Securities may be issued
with appropriate insertions, omissions, substitutions and variations and may
have imprinted or otherwise reproduced thereon such legend or legends, not
inconsistent with the provisions of this Indenture, as may be required to comply
with any law or with any rules or regulations pursuant thereto, or with the
rules of any securities market in which the Securities are admitted to trading,
or to conform to general usage.

                  (2) The Issuer shall execute and the Trustee shall
authenticate and deliver the Securities pursuant to a Company Order.

                  (3) Each Security shall be dated the date of its
authentication and shall bear interest from the applicable date at a rate
specified on the face thereof, which interest shall be payable on the dates
specified on the face thereof.

                  (4) The Person in whose name any Security is registered at the
close of business on the record date specified in the Securities with respect to
any Interest Payment Date shall be entitled to receive the interest, if any,
payable on such Interest Payment Date notwithstanding any transfer or exchange
of such Security subsequent to the record date and prior to such Interest
Payment Date, except if and to the extent the Issuer shall default in the
payment of the interest due on such Interest Payment Date, in which case such
defaulted interest shall be paid to the Persons in whose names Outstanding
Securities are registered at the close of business on a subsequent special
record date, to be established (together with the related payment date) by the
Issuer with the consent of the Trustee. Such special record date shall not be
more than 15 nor less than 10 Business Days prior to the payment date. Not more
than 15 days prior to the special record date, the Issuer (or the Trustee, in
the name of and at the expense of the Issuer) shall mail to Holders a notice
that states the special record date, the related payment date and the amount of
interest to be paid. Notice of the proposed payment of such defaulted interest
and the special

                                       12

<PAGE>   17

record date therefor having been mailed as aforesaid, such defaulted interest
shall be paid to the Persons in whose names the Securities are registered on
such special record date.

                  (5) The Securities shall be issuable in the denominations
specified in the form of Security attached as Exhibit A hereto.

                  Section 2.3 Mutilated, Defaced, Destroyed, Lost and Stolen
Securities.

                  In case any temporary or definitive Security shall become
mutilated or defaced or be apparently destroyed, lost or stolen, the Issuer in
its discretion may execute, and upon the written request any officer of the
Issuer, the Trustee shall authenticate and deliver a new Security, bearing a
number not contemporaneously outstanding, in exchange and substitution for the
mutilated or defaced Security, or in lieu of and substitution for the Security
so apparently destroyed, lost or stolen. In every case the applicant for a
substitute Security shall furnish to the Issuer and to the Trustee and any agent
of the Issuer or the Trustee such security or indemnity as may be required by
them to indemnify and defend and to save each of them harmless and, in every
case of destruction, loss or theft, evidence to their satisfaction of the
apparent destruction, loss or theft of such Security and of the ownership
thereof.

                  Upon the issuance of a substitute Security, the Issuer may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Trustee) connected therewith. In case any Security
which has matured or is about to mature, or has been called for redemption in
full, shall become mutilated or defaced or be apparently destroyed, lost or
stolen, the Issuer may, instead of issuing a substitute Security, pay or
authorize the payment of the same (without surrender thereof except in the case
of a mutilated or defaced Security), if the applicant for such payment shall
furnish to the Issuer and to the Trustee and any agent of the Issuer or the
Trustee such security or indemnity as any of them may require to save each of
them harmless from all risks, however remote, and, in every case of apparent
destruction, loss or theft, the applicant shall also furnish to the Issuer and
the Trustee and any agent of the Issuer or the Trustee evidence to their
satisfaction of the apparent destruction, loss or theft of such Security and of
the ownership thereof.

             Every substitute Security issued pursuant to the provisions of
this Section by virtue of the fact that any Security is apparently destroyed,
lost or stolen shall constitute an additional contractual obligation of the
Issuer, whether or not the apparently destroyed, lost or stolen Security shall
be at any time enforceable by anyone and shall be entitled to all the benefits
of (but shall be subject to all the limitations of rights set forth in) this
Indenture equally and proportionately with any and all other Securities duly
authenticated and delivered hereunder. All Securities shall be held and owned
upon the express condition that, to the extent permitted by law, the foregoing
provisions are exclusive with respect to the replacement or payment of
mutilated, defaced, or apparently destroyed, lost or stolen Securities and shall
preclude any and all other rights or remedies notwithstanding any law or statute
existing or hereafter enacted to the

                                       13
<PAGE>   18

contrary with respect to the replacement or payment of negotiable instruments or
other securities without their surrender.

                  Section 2.4 Cancellation of Securities; Destruction Thereof.

                  All Securities surrendered for payment, redemption,
registration of transfer or exchange, if surrendered to the Issuer or any agent
of the Issuer or the Trustee, shall be delivered to the Trustee for cancellation
or, if surrendered to the Trustee, shall be canceled by it, provided all
conditions regarding such cancellation have been met; and no Securities shall be
issued in lieu thereof except as expressly permitted by any of the provisions of
this Indenture. The Trustee shall cancel and dispose of all Securities
surrendered for registration of transfer, exchange, payment or cancellation in
accordance with the Trustee's policy of disposal. If the Issuer shall acquire
any of the Securities, such acquisition shall not operate as a redemption or
satisfaction of the indebtedness represented by such Securities unless and until
the same are delivered to the Trustee for cancellation.

                  Section 2.5 Transfer Agent and Paying Agent.

                  The Issuer shall enter into an appropriate appointment letter
with any Registrar, Transfer Agent or Paying Agent not a party to this
Indenture, which shall implement the provisions of this Indenture that relate to
such Person. The Issuer shall notify the Trustee of the name and address of any
such Person. If the Issuer fails to maintain a Registrar or Paying Agent, the
Trustee shall act as such and shall be entitled to appropriate compensation
therefor pursuant to Section 6.6. The Issuer initially appoints the Trustee as
Registrar, Transfer Agent and Principal Paying Agent in The City of New York.

ARTICLE 3

                             TERMS OF THE SECURITIES

          Section 3.1       Issue of Securities.

                  (1) On or after the Initial Reset Date, the Securities shall
be issuable in minimum denominations of pound sterling 10,000 and integral
multiples of pound sterling 1,000 in excess thereof.

                  (2) The Securities shall have a final maturity date of March
15, 2020.

                  (3) The record date for the Securities shall be 15 calendar
days immediately prior to each Interest Payment Date.

                                       14

<PAGE>   19

          Section 3.2 Interest through the Initial Reset Date.

                  (1) The per annum interest rate on the Securities for each
Interest Accrual Period through the Initial Reset Date will be 7.97% and shall
be payable in Pounds Sterling; provided, however, that, upon the occurrence of a
Conversion Event, the provisions of Section 3.3 shall become effective.

                  (2) Interest on the Securities through the Initial Reset Date
will be payable semi-annually on each Interest Payment Date, commencing on the
Interest Payment Date next succeeding the date of initial issuance of the
Securities; provided, however, that, if any such Interest Payment Date is not a
Business Day and a Conversion Event has not occurred, then payment of interest
payable on such date will be made on the next succeeding day which is a Business
Day (and without any interest or other payment in respect of any such delay).

                  (3) The amount payable in respect of interest on the principal
amount of the Securities (the "Interest Amount") outstanding at the end of the
relevant Interest Accrual Period shall be determined on the basis of a 360-day
year of twelve 30-day months; provided however, that in the event of a Swap
Termination Event, other than a Swap Termination Event caused by a Conversion
Event, an Optional Tax Redemption, or the repurchase of 100% of the Securities
pursuant to a Change of Control, the Interest Amount shall be determined by (i)
applying the rate of interest to the principal amount of the outstanding
Securities and (ii) multiplying that amount by the actual number of days in such
Interest Accrual Period divided by 365 (or if such Interest Accrual Period ends
after February 28 in a leap year, 366) expressed as a decimal and rounded upward
if necessary to the nearest 1/16th of 1%.

          Section 3.3  Conversion Event.

                  (1) Upon the occurrence of a Conversion Event, then
automatically (i) the aggregate principal amount of the outstanding Securities
shall convert to $250,000,000 or whatever lesser amount of the Certificates is
then outstanding, effective from the date of the immediately preceding Interest
Payment Date prior to the occurrence of such Conversion Event and (ii) the
interest rate on the outstanding Securities shall convert to 8.70% per annum
effective from the date of the immediately preceding Interest Payment Date prior
to the occurrence of such Conversion Event, and such interest rate shall be
calculated on the basis of a 360-day year consisting of twelve 30-day months.

                  (2) Upon the occurrence of a Conversion Event, the Trustee
shall provide notice by first class mail within 15 calendar days after the
occurrence of such Conversion Event (or if the declaration of acceleration
relating to such Conversion Event shall have been given by Holders of the
Securities, after the date on which the Trustee shall receive notice of such
acceleration) providing the information set forth in this Section 3.3 to any
securities exchange on which the Securities may then be listed and to the
Holders of the Securities.

                                       15

<PAGE>   20

                  Section 3.4 Interest after Initial Reset Date.

                          (1) Interest Rate to Maturity.

                              (1) The interest rate in effect with respect to
the Securities immediately prior to the Initial Reset Date shall be reset on the
Initial Reset Date to equal the Interest Rate to Maturity, as determined by the
Remarketing Agent in accordance with the procedures established in the
Remarketing Agreement and subject to Section 3.6, and shall be effective from
and including the Initial Reset Date to but excluding the final maturity of the
Securities, unless the Issuer shall exercise the Floating Rate Option in
accordance with paragraph (b) of this Section 3.4. If the Issuer shall have
exercised the Floating Rate Option, then the Floating Period Interest Rate shall
be reset in accordance with the Remarketing Agreement on the Reset Date
corresponding to the Floating Rate Period Termination Date to equal the Interest
Rate to Maturity, which interest rate shall be effective from and including such
Reset Date to but excluding the final maturity of the Securities.

                              (2) During the period from and including the Fixed
Rate Reset Date to but excluding the final maturity of the Securities, interest
on the Securities shall accrue on the principal amount of the Securities at the
Interest Rate to Maturity and shall be payable semi-annually on each Interest
Payment Date, commencing with the first such Interest Payment Date following the
Fixed Rate Reset Date; provided, however, that, if any such Interest Payment
Date is not a Business Day, then payment of interest payable on such date will
be made on the next succeeding day which is a Business Day (and without any
interest or other payment in respect of any such delay). Interest on the
Securities from the Fixed Rate Reset Date shall be computed on the basis of a
360-day year consisting of twelve 30-day months.

                  (2) Floating Rate Period.

                              (1) In accordance with procedures established in
the Remarketing Agreement and subject to Section 3.6, if the Issuer exercises
the Floating Rate Option no later than the 5th Business Day prior to the
Floating Rate Spread Determination Date by providing notice to the Trustee and
Remarketing Agent, then the Securities shall bear interest at the Floating
Period Interest Rate for each Floating Rate Reset Period in the Floating Rate
Period.

                              (2) During each Floating Rate Reset Period in the
Floating Rate Period, interest on the Securities shall accrue on the principal
amount of the Securities at the Floating Period Interest Rate for such Floating
Rate Period and shall be payable quarterly on each Interest Payment Date,

                                       16
<PAGE>   21

commencing with the first such Interest Payment Date following the Initial Reset
Date. The Interest Amount for such Floating Rate Reset Period shall be
determined by (A) applying the Floating Period Interest Rate for such Floating
Rate Reset Period to the Floating Rate Purchase Price and (B) multiplying that
amount by the actual number of days in such Floating Rate Reset Period divided
by 365 (or, if such Floating Rate Reset Period ends after February 28 in a leap
year, 366) expressed as a decimal and rounded upward if necessary to the nearest
1/16th of 1%.

                        (3)      Notice.

                  Subject to Section 3.6, the Remarketing Agent shall notify the
Issuer and the Trustee by telephone, confirmed in writing (which may include
facsimile or other electronic transmission) by 4:00 p.m. (London time), (i) on
the Fixed Rate Determination Date of the Interest Rate to Maturity, which shall
be effective from and including the Fixed Rate Reset Date and (ii) on each Reset
Date, if the Company elects the Floating Rate Option, of the Floating Period
Interest Rate for the Floating Rate Reset Period beginning on such Reset Date,
which shall be effective from and including such Reset Date. Any such
notification by the Remarketing Agent, absent manifest error, shall be binding
and conclusive upon the holders of beneficial interests in the Securities, the
Issuer and the Trustee.

                Section 3.5      Mandatory Tender.

                 (1)             Subject to 3.6(c), if the Callholder shall have
purchased the Securities pursuant to the Call Option Agreement and the Issuer
shall have elected the Floating Rate Option, the Securities shall be
automatically tendered, or deemed tendered, by the Holders thereof to the
Remarketing Agent for purchase on the Floating Rate Period Termination Date. On
the Reset Date corresponding to the Floating Rate Period Termination Date, the
interest rate on the Securities shall be reset to equal the Interest Rate to
Maturity in accordance with, and the Securities shall be remarketed pursuant to,
the Remarketing Agreement.

                  (2)            The purchase price for the Securities tendered
pursuant to paragraph (a) of this Section 3.5 shall equal 100% of the Floating
Rate Purchase Price plus accrued and unpaid interest, if any, thereon to but
excluding the Floating Rate Period Termination Date. If for any reason the
Remarketing Agent does not purchase all of the Securities on the Floating Rate
Period Termination Date, the Issuer shall redeem the Securities on the Floating
Rate Period Termination Date at a redemption price equal to 100% of the Floating
Rate Purchase Price plus accrued and unpaid interest, if any, thereon to but
excluding the Floating Rate Period Termination Date. If the Remarketing Agent
elects to purchase the Securities, such obligation of the Remarketing Agent is
subject to the conditions set forth in the Remarketing Agreement.

                                       17

<PAGE>   22

        Section 3.6      Redemption.

                (1)      Early Redemption Right of Holder.

                         (1) In the event that the Callholder (A) has not given
notice on or before February 15, 2005 of its intention to exercise the call
option under the Call Option Agreement or (B) fails to pay on or before the
Business Day next preceding the Initial Reset Date the call price required under
the Call Option Agreement, the Issuer shall redeem the Securities on the Initial
Reset Date, in whole but not in part, at a price equal to 100% of the aggregate
principal amount of the Securities plus accrued and unpaid interest thereon to
but excluding the Initial Reset Date, upon written notice by 5:00 p.m. (London
time) on the Business Day next preceding the Initial Reset Date from the
Trustee, as holder of the Securities.

                         (2) Any written notice given by the Trustee, as holder
of the Securities, pursuant to paragraph (i) of this Section 3.6(a) shall be
irrevocable; provided, however, that if prior to the Initial Reset Date an Event
of Default shall have occurred and be continuing, such holder, at its option,
may elect by written notice to the Issuer, to withdraw the instructions given
pursuant to paragraph (i) of this Section 3.6(a) and instead declare the
Securities to be due and payable pursuant to Section 5.1.

                (2)      Mandatory Redemption.

                If the Callholder shall have purchased the Securities
pursuant to the Call Option Agreement and the Issuer shall have elected the
Floating Rate Option, the Issuer shall be required to redeem the outstanding
Securities, in whole but not in part, on any Reset Date following the Initial
Reset Date at a redemption price equal to the Floating Rate Purchase Price plus
accrued and unpaid interest, if any, thereon to but excluding such Reset Date in
the event that (i) the Remarketing Agent for any reason does not notify the
Issuer of the Floating Period Interest Rate for the Floating Rate Reset Period
beginning on such Reset Date by 4:00 p.m. (London time) on such Reset Date or of
the Interest Rate to Maturity by 4:00 p.m., (London time) on the Fixed Rate
Determination Date, as applicable, (ii) prior to any such Reset Date, the
Remarketing Agent resigns and no successor has been appointed on or before such
Reset Date or Fixed Rate Determination Date, as applicable, (iii) the
Remarketing Agent elects to terminate the Remarketing Agreement in accordance
with its terms, (iv) the Remarketing Agent for any reason does not elect (by
notice to the Issuer and the Trustee not later than the Fixed Rate Determination
Date) to purchase the Securities for remarketing on the Floating Rate Period
Termination Date or (v) the Remarketing Agent for any reason does not deliver
the purchase price of the Securities to or through DTC on or before the Floating
Rate Period Termination Date as provided in the Remarketing Agreement.

                                       18

<PAGE>   23

                         (3) Optional Redemption.

                         If the Callholder shall have purchased the Securities
pursuant to the Call Option Agreement and the Issuer shall have elected the
Floating Rate Option, the Issuer shall notify the Callholder, the Remarketing
Agent and the Trustee, not later than the Business Day immediately preceding the
Floating Rate Period Termination Date, if the Issuer irrevocably elects to
exercise its right to redeem the Securities, in whole but not in part, from the
Remarketing Agent on the Floating Rate Period Termination Date. If the Issuer
elects to redeem the Securities, the Issuer shall redeem the Securities in whole
at a redemption price equal to the Floating Rate Purchase Price plus accrued and
unpaid interest, if any thereon to but excluding the Floating Rate Period
Termination Date.

                         (4) Optional Tax Redemption.

                         The Securities may be redeemed at the election of the
Issuer, as a whole, but not in part, by the giving of notice not more than 60
days nor less than 30 days as provided in Section 11.4, at a price equal to the
outstanding principal amount thereof, together with Additional Amounts, if any,
and accrued interest, if any, to the Redemption Date, if (a) the Issuer
satisfies the Trustee that it has or will become obligated to pay Additional
Amounts on the Securities, as a result of any change in, or amendment to, the
laws or regulations of a Taxing Jurisdiction, or any change in the application
or interpretation of such laws or regulations, which change or amendment becomes
effective (subject to Section 9.1) on or after the date of original issuance of
the Securities, and (b) such obligation cannot be avoided by the Issuer taking
reasonable measures available to it; provided, however, that no such notice of
redemption shall be given earlier than 90 days prior to the earliest date on
which the Issuer would be obligated to pay such Additional Amounts were a
payment in respect of the Securities then due. Prior to the publication of any
notice of redemption of such Securities pursuant to this Indenture, the Issuer
will deliver to the Trustee an Officers' Certificate stating that the obligation
to pay such Additional Amounts cannot be avoided by the Issuer taking reasonable
measures available to it, and the Trustee shall accept such certificate as
sufficient evidence of the condition precedent set forth in clause (b) above,
and such certificate shall be conclusive and binding on the Holders of the
Securities.

ARTICLE 4

                     COVENANTS OF THE ISSUER AND THE TRUSTEE

                  Section 4.1 Payment of Principal and Interest.

                  The Issuer covenants and agrees that it will duly and
punctually pay or cause to be paid the principal and the Change of Control
purchase price of, and premium, if any, and interest and Additional Amounts, if
any, on, each of the Securities at the place or places, at the respective

                                       19

<PAGE>   24

times and in the manner provided in the Securities. Payment of principal and the
Change of Control purchase price of, and premium and interest and Additional
Amounts, if any, on, the Securities shall be paid by mailing a check to or upon
the written order of each registered Holders of Securities entitled thereto at
its last address as it appears on the Securities Register or, upon written
application to the Trustee by a Holder of pound sterling 1,000,000 or more in
aggregate principal amount of Securities, by wire transfer of immediately
available funds to an account maintained by such Holder with a bank or other
financial institution; provided, however, that (subject to the provisions of
Section 2.7 hereof) payment of principal and the Change of Control purchase
price of, and premium and Additional Amounts, if any, on, any Security may be
conditioned upon presentation for payment of the certificate representing such
Security.

                  Section .3   Offices for Payments, etc.

                  So long as any of the Securities remain Outstanding, the
Issuer shall maintain in the Borough of Manhattan, The City of New York, the
following: (a) an office or agency where the Securities may be presented for
payment, (b) an office or agency where the Securities may be presented for
registration of transfer and for exchange as in this Indenture provided and (c)
an office or agency where notices and demands to or upon the Issuer in respect
of the Securities or of this Indenture may be served. The Issuer shall give to
the Trustee written notice of the location of any such office or agency and of
any change of location thereof. The Issuer hereby initially designates the
Trustee's Corporate Trust Office as such office or agency. The Trustee shall
make Sterling-denominated payments on the Securities through a London-based
account of the Trustee. In case the Issuer shall fail to maintain any such
office or agency or shall fail to give such notice of the location or of any
change in the location thereof, presentations and demands may be made and
notices may be served at the Corporate Trust Office of the Trustee.

                  Section 4.2  Appointment to Fill Vacancy in Office of Trustee.

                  The Issuer, whenever necessary to avoid or fill a vacancy in
the office of Trustee, shall appoint, in the manner provided in Section 6.9
hereof, a Trustee, so that there shall at all times be a Trustee hereunder.

                  Section 4.3  Paying Agents.

                  The Trustee shall be the principal paying agent for the
Securities. Whenever the Issuer shall appoint a paying agent other than the
Trustee, it shall cause such paying agent to execute and deliver to the Trustee
an instrument in which such agent shall agree with the Trustee, subject to the
provisions of this Section:

                  (1) that it will hold all sums received by it as such agent
for the payment of the principal or Change of Control purchase price of, or
premium or interest or Additional Amounts, if any, on, the Securities (whether
such sums have been paid to it by the Issuer

                                       20

<PAGE>   25

or by any other obligor on the Securities) in trust for the benefit of the
Holders of the Securities or of the Trustee,

                  (2) that it will give the Trustee notice of any failure by the
Issuer (or by any other obligor on the Securities) to make any payment of the
principal or Change of Control purchase price of, or premium or interest or
Additional Amounts, if any, on, the Securities when the same shall be due and
payable, and

                  (3) pay any such sums so held in trust by it to the Trustee
upon the Trustee's written request at any time during the continuance of the
failure referred to in clause (b) above.

                  If the Trustee is not the Registrar, the Issuer shall, prior
to each due date of the principal or Change of Control purchase price of, or
premium, if any, or interest or Additional Amounts, if any, on the Securities,
deposit with the paying agent a sum sufficient to pay such principal, Change of
Control purchase price premium, interest or Additional Amounts and (unless such
paying agent is the Trustee) the Issuer shall promptly notify the Trustee of any
failure to take such action.

                  Anything in this Section 4.4 to the contrary notwithstanding,
the Issuer may at any time, for the purpose of obtaining satisfaction and
discharge of this Indenture or for any other reason, pay or cause to be paid to
the Trustee all sums held in trust by any paying agent hereunder, as required by
this Section 4.4, such sums to be held by the Trustee upon the trusts herein
contained.

                  Anything in this Section to the contrary notwithstanding, the
agreement to hold sums in trust as provided in this Section 4.4 is subject to
the provisions of Section 10.3 and Section 10.1 hereof.

                  Section .4 Certificate to Trustee.

                  Issuer shall furnish to the Trustee on or before March 31 in
each year (beginning with March 31, 2001) a brief certificate from the principal
executive, financial or accounting officer of this Issuer as to his or her
knowledge of the Issuer's compliance with all covenants under this Indenture
(such compliance to be determined without regard to any period of grace or
requirement of notice provided under this Indenture).

                  Section 4.4 Securityholder's Lists.

                  The Issuer shall furnish or cause to be furnished to the
Trustee a list in such form as the Trustee may reasonably require of the names
and addresses of the Holders of the Securities (a) semiannually not more than 15
days after each record date for the payment of semi-annual interest on the
Securities, as specified in the form of Security attached as Exhibit A hereto,
as of

                                       21

<PAGE>   26

such record date, and (b) at other times as the Trustee may request in writing,
within thirty days after receipt by the Issuer of any such request as of a date
not more than 15 days prior to the time such information is furnished.

                  Section 4.5 Reports by the Issuer.

                  The Issuer shall file with the Trustee and provide
Securityholders, within 15 days after it files them with the Commission, copies
of its annual reports and of the information, documents and other reports (or
copies of such portions of any of the foregoing as the Commission may by rules
and regulations prescribe) that the Issuer is required to file with the
Commission pursuant to Section 13 or 15(d) of Exchange Act.

                  Section 4.6 Limitation on Liens.

                  So long as any of the Securities are Outstanding, the Issuer
shall not pledge, mortgage or hypothecate, or permit to exist, any mortgage,
pledge or other lien upon any property at any time directly owned by the Issuer
to secure any indebtedness for money borrowed that is incurred, issued, assumed
or guaranteed by the Issuer ("Indebtedness"), without making effective
provisions whereby the Securities shall be equally and ratably secured with any
and all such Indebtedness and with any other Indebtedness similarly entitled to
be equally and ratably secured; provided, however, that this restriction shall
not apply to or prevent the creation or existence of (i) liens existing at the
Original Issuance Date of the Securities, (ii) purchase money liens that do not
exceed the cost or value of the purchased property, (iii) other liens not to
exceed 10% of Consolidated Net Tangible Assets, and (iv) liens granted in
connection with extending, renewing, replacing or refinancing, in whole or in
part, the Indebtedness (including, without limitation, increasing the principal
amount of such Indebtedness) secured by liens described in the foregoing clauses
(i) through (iii).

                  In the event that the Issuer shall propose to pledge, mortgage
or hypothecate any property at any time directly owned by it to secure any
Indebtedness, other than as permitted by clauses (i) through (iv) of the
previous paragraph, the Issuer shall (prior thereto) give written notice thereof
to the Trustee, who shall give notice to the Holders, and the Issuer shall,
prior to or simultaneously with such pledge, mortgage or hypothecation,
effectively secure all the Securities equally and ratably with such
Indebtedness.

                  Section 4.7 Payment of Additional Amounts.

                  All payments of principal and interest (including payments of
a Change of Control purchase price and premium, if any) with respect to the
Securities shall be made free and clear of, and without withholding or deduction
for or on account of, any present or future taxes, duties, assessments or
governmental charges of whatever nature imposed, levied, collected, withheld or
assessed by or within a Taxing Jurisdiction or by or within any political
subdivision thereof or any authority therein or thereof having power to tax
("Gross-Up Taxes"), unless such

                                       22

<PAGE>   27

withholding or deduction is required by law. In the event of any such
withholding or deduction, the Issuer, shall pay to the Holder of such Securities
such additional amounts in respect of such withholding or deduction as are
necessary so that such Holder receives the amount that would have been due to
such Holder in the absence of such withholding or deduction ("Additional
Amounts"), except that no such Additional Amounts shall be payable:

                  (1) to, or to a Person on behalf of, a Holder who is liable
for such Gross-Up Taxes with respect to the Securities, by reason of such Holder
having some connection with the relevant Taxing Jurisdiction (including being a
citizen or resident or national of, or carrying on a business or maintaining a
permanent establishment in, or being physically present in, such Taxing
Jurisdiction) other than the mere holding of a Security or the receipt of
principal and interest (including payments of discount and premium, if any) in
respect thereof; or

                  (2) to, or to a Person on behalf of, a Holder who presents a
Security (where presentation is required) for payment more than 30 days after
the Relevant Date except to the extent that such Holder would have been entitled
to such Additional Amounts on presenting such Security for payment on the last
day of such period of 30 days; or

                  (3) to, or to a Person on behalf of, a Holder who would not be
liable or subject to the withholding or deduction by making a declaration of
non-residence or similar claim for exemption to the relevant tax authority; or

                  (4) in respect of any estate, asset, inheritance, gift,
transfer or sales tax that is imposed or withheld; or

                  (5) any combination of (a)-(d) above.

              Such Additional Amounts will also not be payable where, had the
beneficial owner of the Security (or any interest therein) been the Holder of
the Security, he would not have been entitled to payment of Additional Amounts
by reason of any one or more of clauses (a) through (d) above. If the Issuer
shall determine that Additional Amounts will not be payable for any of the
foregoing reasons, the Issuer will inform such Holder promptly after making such
determination setting forth the reason(s) therefor.

              Reference in this Indenture or any Securities to payment of
principal, Change of Control purchase price, interest, discount or premium in
respect of the Securities shall be deemed also to refer to any Additional
Amounts which may be payable as set forth in this Indenture or in the
Securities.

              At least 10 Business Days prior to the first Interest Payment Date
(and at least 10 Business Days prior to each succeeding Interest Payment Date if
there has been any change with respect to the matters set forth in the
below-mentioned Officers' Certificate), the Issuer will furnish to the Trustee
and any Paying Agent an Officers' Certificate instructing the Trustee and

                                       23

<PAGE>   28

any Paying Agent whether payments of principal of, or premium, if any, or
interest on, the Securities due on such Interest Payment Date shall be without
deduction or withholding for or on account of any Gross-Up Taxes. If any such
deduction or withholding shall be required, prior to such Interest Payment Date
the Issuer will furnish the Trustee and any Paying Agent with an Officers'
Certificate which specifies the amount, if any, required to be withheld on such
payment to Holders and certifies that the Issuer shall pay such withholding or
deduction. The Issuer covenants to indemnify the Trustee and any Paying Agent
for, and to hold the Trustee and any Paying Agent harmless against, any loss,
liability or expense reasonably incurred without negligence, willful misconduct
or bad faith on its part, arising out of or in connection with actions taken or
omitted by the Trustee or any Paying Agent in reliance on any Officers'
Certificate furnished pursuant to this paragraph. Any Officers' Certificate
required by this Section 4.9 to be provided to the Trustee and any Paying Agent
shall be deemed to be duly provided if telecopied to the Trustee and such Paying
Agent.

              The Issuer shall furnish to the Trustee the official receipts (or
a certified copy of the official receipts) evidencing payment of Gross-Up Taxes.
Copies of such receipts shall be made available to the Holders of the Securities
upon request.

              Section 4.8 Repurchase of Securities Upon a Change of Control.

                (1)   Upon the occurrence of a Change of Control, (i) prior to
the Initial Reset Date, each Holder of the Securities shall have the right to
require that the Issuer repurchase such Holder's Securities at a repurchase
price in Pounds Sterling equal to 100% of the principal amount thereof plus
accrued interest, if any, to the date of repurchase, plus a payment in U.S.
Dollars equal to 1% of the principal amount of Certificates to be repurchased
pursuant to a Change of Control Offer as set forth in the Trust Agreement, (ii)
after the Initial Reset Date, each Holder of the Securities shall have the right
to require that the Issuer repurchase such Holder's Securities at a repurchase
price in Pounds Sterling equal to 101% of the principal amount thereof plus
accrued interest, if any, to the date of repurchase and (iii) prior to the
Initial Reset Date, but after a Conversion Event, each Holder of the Securities
shall have the right to require that the Issuer repurchase such Holder's
Securities at a repurchase price in Dollars equal to 101% of the principal
amount thereof plus accrued interest, if any, to the date of repurchase, in each
case, in accordance with the terms set forth in subsection (b) below.

                (2)   Within 30 days following any Change of Control, the Issuer
shall mail a notice to each Holder (with a copy to the Trustee) stating:

                      (1) that a Change of Control has occurred and (i) if prior
to the Initial Reset Date, that such Holder shall have the right to require that
the Issuer repurchase such Holder's Securities at a repurchase price in Pounds
Sterling equal to 100% of the principal amount thereof plus accrued interest, if
any, to the date of repurchase, plus a payment in U.S. Dollars equal to 1% of
the principal amount of Certificates to be repurchased pursuant to a Change of
Control Offer as set forth in the Trust Agreement, (ii) if after the Initial
Reset Date,

                                       24

<PAGE>   29

that such Holder has the right to require the Issuer to repurchase such Holder's
Securities at a repurchase price in Pounds Sterling equal to 101% of the
principal amount thereof plus accrued interest, if any, to the date of
repurchase and (iii) if prior to the Initial Reset Date, but after a Conversion
Event, that such Holder shall have the right to require that the Issuer
repurchase such Holder's Securities at a repurchase price in Dollars equal to
101% of the principal amount thereof plus accrued interest, if any, to the date
of repurchase (in each such case, a "Change of Control Offer");

                      (2) the circumstances and relevant facts regarding such
Change of Control (including information with respect to pro forma historical
income, cash flow and capitalization of the Issuer after giving effect to such
Change of Control);

                      (3) that any Security not tendered for repurchase will
continue to accrue interest;

                      (4) that interest on any Security accepted for payment
pursuant to the Change of Control Offer shall cease to accrue after the
repurchase of such Security on the Repurchase Date if payment thereof has been
deposited with the Trustee;

                      (5) that Holders electing to have a Security repurchased
pursuant to a Change of Control Offer will be required to surrender the
Security, with the form entitled "Option of Holder to Elect Purchase" on the
reverse of the Security completed, to the paying agent at the address specified
in the notice prior to the close of business on the Business Day prior to the
Senior Note Repurchase Date;

                      (6) that Holders will be entitled to withdraw their
election if the paying agent receives, not later than the close of business on
the third Business Day (or such shorter periods as may be required by applicable
law) preceding the Senior Note Repurchase Date, a telegram, telex, facsimile
transmission or letter setting forth the name of the Holder, the principal
amount of Securities the Holder delivered for repurchase, and a statement that
such Holder is withdrawing its election to have such Securities repurchased; and

                      (7) that Holders that elect to have their Securities
purchased only in part will be issued new Securities in a principal amount equal
to then unpurchased portion of the Securities surrendered.

           (3)         The repurchase date (the "Senior Note Repurchase Date")
shall be:

                      (1) if prior to the Initial Reset Date, the Certificate
Repurchase Date; and upon receiving notice of the Certificate Repurchase Date,
the Issuer shall promptly notify each Holder (with a copy to the Trustee) of the
Senior Note Repurchase Date; and

                                       25

<PAGE>   30

                      (2) if after the Initial Reset, a Business Day that is not
earlier than 30 days or later than 60 days from the date the Issuer notifies the
Trustee, by mail, of a Change of Control pursuant to Section 4.10(b).

            (4)       On the Senior Note Repurchase Date, the Issuer shall (i)
accept for payment Securities or portions thereof tendered pursuant to the
Change of Control Offer, (ii) deposit with the Trustee money sufficient, without
reinvestment, to pay the purchase price of all Securities or portions thereof so
tendered and (iii) deliver or cause to be delivered to the Trustee, Securities
so accepted together with an Officers' Certificate identifying the Securities or
portions thereof tendered to the Issuer. The Trustee shall promptly mail to the
Holders of the Securities so accepted payment in an amount equal to the purchase
price, and promptly authenticate and mail to such Holders new Securities in
principal amount equal to any unpurchased portion of the Securities surrendered.
The Issuer will publicly announce the results of the Change of Control Offer on
or as soon as practicable after the Senior Note Repurchase Date.

            (5)       The Issuer shall comply with Rule 14e-1 under the Exchange
Act and any other applicable laws and regulations in the event that a Change of
Control occurs and the Issuer is required to make a Change of Control Offer.

                                   ARTICLE I

                          REMEDIES OF THE TRUSTEE AND
                      SECURITYHOLDERS ON EVENT OF DEFAULT

               Section 4.9     Event of Default Defined; Acceleration of
                        Maturity; Waiver of Default.

                  In case of one or more of the following Events of Default
(whatever the reason for such Event of Default and whether it shall be voluntary
or involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body) shall have occurred and be continuing, that
is to say:

                      (1) default in the payment of all or any part of the
principal or Change of Control purchase price of, or premium, if any, on, any of
the Securities as and when the same shall become due and payable either at
maturity, upon any redemption or required repurchase, by declaration of
acceleration or otherwise;

                      (2) default in the payment of any installment of interest,
or any Additional Amounts, upon any of the Securities as and when the same shall
become due and payable, and continuance of such default for a period of 30 days;

                                       26

<PAGE>   31

                  (3) an event of default, as defined in any instrument of the
Issuer under which there may be issued, or by which there may be secured or
evidenced, any Indebtedness of the Issuer that has resulted in the acceleration
of such Indebtedness, or any default occurring in payment of any such
Indebtedness at final maturity (and after the expiration of any applicable grace
periods), other than such Indebtedness (i) which is payable solely out of the
property or assets of a partnership, joint venture or similar entity of which
the Issuer is a participant, or which is secured by a lien on the property or
assets owned or held by such entity, without further recourse to or liability of
the Issuer, or (ii) the principal of, and interest on, which, when added to the
principal of and interest on all other such Indebtedness (exclusive of
Indebtedness under clause (i) above), does not exceed $20,000,000 in the
aggregate;

                  (4) failure on the part of the Issuer duly to observe or
perform any other of the covenants or agreements on the part of the Issuer in
the Securities or in this Indenture and such failure continues for a period of
30 days after the date on which written notice specifying such failure, stating
that such notice is a "Notice of Default" hereunder and demanding that the
Issuer remedy the same, shall have been given by registered or certified mail,
return receipt requested, to the Issuer by the Trustee, or to the Issuer and the
Trustee by the Holders of at least 25% in aggregate principal amount of the
Securities at the time Outstanding;

                  (5) one or more final judgments, decrees or orders of any
court, tribunal, arbitrator, administrative or other governmental body or
similar entity for the payment of money shall be rendered against the Issuer or
any of its properties in an aggregate amount in excess of $20,000,000 (excluding
the amount thereof covered by insurance), and such judgment, decree or order
shall remain unvacated, undischarged and unstayed for more than 90 consecutive
days, except while being contested in good faith by appropriate proceedings;

                  (6) a court having jurisdiction in the premises shall enter a
decree or order for relief in respect of the Issuer in an involuntary case or
proceeding under any applicable bankruptcy, insolvency, reorganization or other
similar law now or hereafter in effect, or a decree or order adjudging the
Issuer a bankrupt or insolvent, or approving as properly filed a petition
seeking reorganization, arrangement, adjustment, or composition of or in respect
of the Issuer under any applicable federal or state law, or appointing a
receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official of the Issuer or for any substantial part of its property or ordering
the winding up or liquidation of its affairs, shall have been entered, and such
decree or order shall remain unstayed and in effect for a period of 90
consecutive days; or

                  (7) the Issuer shall commence a voluntary case or proceeding
under any applicable federal or state bankruptcy, insolvency, reorganization or
other similar law now or hereafter in effect or of any other case or proceeding
to be adjudicated a bankrupt or insolvent, or consent to the entry of a decree
or order for relief in an involuntary case or proceeding under any such law, or
to the commencement of any bankruptcy or insolvency case or proceeding against
the Issuer, or the filing by the Issuer of a petition or answer or consent
seeking reorganization or relief under any such applicable federal or state law,
or the consent by the Issuer to the filing of

                                       27

<PAGE>   32

such petition or to the appointment of or the taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official
of the Issuer or of any substantial part of its property, or the making by the
Issuer of an assignment for the benefit of creditors, or the taking of action by
the Issuer in furtherance of any such action;

then and in each and every such case (other than an Event of Default with
respect to the Issuer specified in 5.1(f) or 5.1(g) hereof), unless the
principal of all of the Securities shall have already become due and payable,
either the Trustee or the Holders of not less than 25% in aggregate principal
amount of the Securities then Outstanding hereunder, by notice in writing to the
Issuer (and to the Trustee if given by Securityholders), may declare the entire
principal of all the Securities and the interest accrued thereon to be due and
payable immediately, and upon any such declaration the same shall become
immediately due and payable. This provision, however, is subject to the
condition that if, at any time after the principal of the Securities shall have
been so declared due and payable, and before any judgment or decree for the
payment of the moneys due shall have been obtained or entered as hereinafter
provided, the Issuer shall pay or shall deposit with the Trustee a sum
sufficient to pay all matured installments of interest upon all the Securities
and the principal or Change of Control purchase price and premium, if any, of
any and all Securities that shall have become due otherwise than by acceleration
(with interest upon such principal and Change of Control purchase price and
premium, if any, and to the extent that payment of such interest is enforceable
under applicable law, on overdue installments of interest, at the rate of
interest specified in the Securities and Additional Amounts, if any, to the date
of such payment or deposit) and such amount as shall be sufficient to cover
reasonable compensation to the Trustee and each predecessor Trustee, their
respective agents, attorneys and counsel, and all other reasonable expenses and
liabilities incurred and all reasonable advances made, by the Trustee and each
predecessor Trustee except as a result of negligence or bad faith, and if any
and all Events of Default under the Indenture, other than the non-payment of the
principal that shall have become due by acceleration, shall have been cured,
waived or otherwise remedied as provided herein, then and in every such case the
Holders of a majority in aggregate principal amount of the Securities then
Outstanding, by written notice to the Issuer and to the Trustee, may waive all
defaults (except, unless theretofore cured, a default in payment of principal
of, or Change of Control purchase price or premium, if any, or interest or
Additional Amounts, if any, on the Securities) and rescind and annul such
declaration and its consequences, but no such waiver or rescission and annulment
shall extend to or shall affect any subsequent default or shall impair any right
consequent thereon.

                  If an Event of Default specified in Section 5.1(f) or 5.1(g)
hereof occurs with respect to the Issuer, the principal of and accrued interest
and Additional Amounts, if any, on the Security shall become and be immediately
due and payable without any declaration or other act on the part of the Trustee
or any Securityholder.

                                       28

<PAGE>   33

                  Section 4.10 Collection of Indebtedness by Trustee; Trustee
                               May Prove Debt.

                  The Issuer covenants that (i) in case default shall be made in
the payment of any installment of interest on any of the Securities when such
interest shall have become due and payable, and such default shall have
continued for a period of 30 days or (ii) in case default shall be made in the
payment of all or any part of the principal or Change of Control purchase price,
of, or premium, if any, on, any of the Securities when the same shall have
become due and payable, whether upon maturity or upon any redemption or by
declaration or acceleration or otherwise, then upon demand of the Trustee, the
Issuer shall pay to the Trustee for the benefit of the Holders of the Securities
the whole amount that then shall have become due and payable on all such
Securities of principal, Change of Control purchase price, premium or interest,
as the case may be (with interest to the date of such payment upon the overdue
principal, Change of Control purchase price or premium and, to the extent that
payment of such interest is enforceable under applicable law, on overdue
installments of interest at the rate of interest specified in the Securities);
and in addition thereto, such further amount as shall be sufficient to cover the
costs and expenses of collection, including reasonable compensation to the
Trustee and each predecessor Trustee, their respective agents, attorneys and
counsel, and any reasonable expenses and liabilities incurred, and all
reasonable advances made, by the Trustee and each predecessor Trustee except as
a result of its negligence or bad faith.

                  Until such demand is made by the Trustee, the Issuer may pay
the principal and Change of Control purchase price of and premium and interest
on the Securities to the registered Holders, whether or not the Securities be
overdue.

                  In case the Issuer shall fail forthwith to pay such amounts
upon such demand, the Trustee, in its own name and as trustee of an express
trust, shall be entitled and empowered to institute any action or proceedings at
law or in equity for the collection of the sums so due and unpaid, and may
prosecute any such action or proceedings to judgment or final decree, and may
enforce any such judgment or final decree against the Issuer or other obligor
upon the Securities and collect in the manner provided by law out of the
property of the Issuer or other obligor upon the Securities, wherever situated,
the moneys adjudged or decreed to be payable.

                  In case there shall be pending proceedings relative to the
Issuer or any other obligor upon the Securities under Title 11 of the United
States Code or any other applicable federal or state bankruptcy, insolvency or
other similar law, or in case a receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, custodian, sequestrator or similar official shall
have been appointed for or taken possession of the Issuer or its property or
such other obligor, or in case of any other comparable judicial proceedings
relative to the Issuer or other obligor upon the Securities, or to the creditors
or property of the Issuer or such other obligor, the Trustee, irrespective of
whether the principal of the Securities shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective or whether the Trustee
shall have made any demand pursuant to the provisions of this Section 5.2, shall
be entitled and empowered, by intervention in such proceedings or otherwise:

                                       29

<PAGE>   34

                  (1) to file and prove a claim or claims for the whole amount
of principal, Change of Control purchase price, premium and interest owing and
unpaid in respect of the Securities, and to file such other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for reasonable compensation to the Trustee and each
predecessor Trustee, and their respective agents, attorneys and counsel, and for
reimbursement of all reasonable expenses and liabilities incurred, and all
reasonable advances made, by the Trustee and each predecessor Trustee, except as
a result of negligence or bad faith) and of the Securityholders, allowed in any
judicial proceedings relative to the Issuer or other obligor upon the
Securities, or to the creditors or property of the Issuer or such other obligor;

                  (2) unless prohibited by applicable law and regulations, to
vote on behalf of the Holders of the Securities in any election of a trustee or
a standby trustee in any arrangement, reorganization, liquidation or other
bankruptcy or insolvency proceedings or a person performing similar functions in
comparable proceedings; and

                  (3) to collect and receive any moneys or other property
payable or deliverable on any such claims, and to distribute all amounts
received with respect to the claims of the Securityholders and of the Trustee on
their behalf; and any trustee, receiver, or liquidator, custodian or other
similar official is hereby authorized by each of the Securityholders to make
payments to the Trustee, and, in the event that the Trustee shall consent to the
making of payments directly to the Securityholders, to pay to the Trustee such
amounts as shall be sufficient to cover reasonable compensation to the Trustee,
each predecessor Trustee and their respective agents, attorneys and counsel, and
all other reasonable expenses and liabilities incurred, and all reasonable
advances made, by the Trustee and each predecessor Trustee except as a result of
negligence or bad faith.

                  Nothing herein contained shall be deemed to authorize the
Trustee to authorize or consent to or vote for or accept or adopt on behalf of
any Securityholders any plan or reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Securityholder in
any such proceeding, except, as aforesaid, to vote for the election of a trustee
in bankruptcy or similar person.

                  All rights of action and of asserting claims under this
Indenture, or under any of the Securities, may be enforced by the Trustee
without the possession of any of the Securities or the production thereof at any
trial or other proceedings relative thereto, and any such action or proceedings
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment, subject to the payment of the
expenses, disbursements and compensation of the Trustee, each predecessor
Trustee and their respective agents and attorneys, shall be for the ratable
benefit of the Holders of the Securities.

                  In any proceedings brought by the Trustee (and also any
proceedings involving the interpretation of any provision of this Indenture to
which the Trustee shall be a

                                       30

<PAGE>   35

party) the Trustee shall be held to represent all the Holders of the Securities,
and it shall not be necessary to make any Holders of the Securities parties to
any such proceedings.

                  Section 4.11 Application of Proceeds.

                  Any moneys collected by the Trustee pursuant to this Article
shall be applied in the following order at the date or dates fixed by the
Trustee and, in case of the distribution of such moneys on account of principal
or interest, upon presentation of the several Securities and stamping (or
otherwise noting) thereon the payment, or issuing Securities in reduced
principal amounts in exchange for the presented Securities if only partially
paid, or upon surrender thereof if fully paid:

                  FIRST: To the payment of costs and expenses, including
reasonable compensation to the Trustee and each predecessor Trustee and their
respective agents, and attorneys and counsel and of all reasonable expenses and
liabilities incurred, and all reasonable advances made, by the Trustee and each
predecessor Trustee except as a result of negligence or bad faith, and all other
amounts due under Section 6.6 hereof;

                  SECOND: In case the principal or the Change of Control
purchase price and premium, if any, of the Securities shall not have become and
be then due and payable, to the payment of interest in default in the order of
the maturity of the installments of such interest, with interest (to the extent
that such interest has been collected by the Trustee) upon the overdue
installments of interest at the rate of interest specified in the Securities,
such payments to be made ratably to the persons entitled thereto, without
discrimination or preference;

                  THIRD: In case the principal or Change of Control purchase
price of the Securities shall have become and shall be then due and payable, to
the payment of the whole amount then owing and unpaid upon all the Securities
for principal, Change of Control purchase price and premium, with interest upon
the overdue principal, Change of Control purchase price, premium, if any, and
(to the extent that such interest has been collected by the Trustee), and in
case such moneys shall be insufficient to pay in full the whole amount so due
and unpaid upon the Securities, then to the payment of such principal, Change of
Control purchase price and premium, without preference or priority of principal,
Change of Control purchase price or premium over interest, or of interest over
principal or Change of Control purchase price, or premium, or of any installment
of interest over any other installment of interest, or of any Security over any
other Security, ratably to the aggregate of such principal or Change of Control
purchase price and accrued and unpaid interest; and

                  FOURTH: To the payment of the remainder, if any, to the Issuer
or any other Person lawfully entitled thereto.

                  The Trustee may fix a record date and payment date for any
payment to Securityholders pursuant to this Section 5.3.

                                       31

<PAGE>   36

                  Section 4.12 Suits for Enforcement.

                  In case an Event of Default has occurred, has not been waived
and is continuing, the Trustee may in its discretion proceed to protect and
enforce the rights vested in it by this Indenture by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any
of such rights, either at law or in equity or in bankruptcy or otherwise,
whether for the specific enforcement of any covenant or agreement contained in
this Indenture or in aid of the exercise of any power granted in this Indenture
or to enforce any other legal or equitable right vested in the Trustee by this
Indenture or by law.

                  Section 4.13 Restoration of Rights on Abandonment of
                               Proceedings.

                  In case the Trustee shall have proceeded to enforce any right
under this Indenture and such proceedings shall have been discontinued or
abandoned for any reason, or shall have been determined adversely to the
Trustee, then and in every such case the Issuer and the Trustee shall be
restored respectively to their former positions and rights hereunder, and all
rights, remedies and powers of the Issuer, the Trustee and the Securityholders
shall continue as though no such proceedings had been taken.

                  Section 4.14 Limitations of Suits by Securityholders.

                  No Holder of any Security shall have any right by virtue or by
availing of any provision of this Indenture to institute any action or
proceeding at law or in equity or in bankruptcy or otherwise upon or under or
with respect to this Indenture, or for the appointment of a trustee, receiver,
liquidator, custodian or other similar official or for any other remedy
hereunder, unless such Holder previously shall have given to the Trustee written
notice of default and of the continuance thereof, as hereinbefore provided, and
unless also the Holders of not less than 25% in aggregate principal amount of
the Securities then Outstanding shall have made written request upon the Trustee
to institute such action or proceedings in its own name as trustee hereunder and
shall have offered to the Trustee such reasonable indemnity as it may require
against the costs, expenses and liabilities to be incurred therein or thereby
and the Trustee for 30 days after its receipt of such notice, request and offer
of indemnity shall have failed to institute any such action or proceedings, and
no direction inconsistent with such written request shall have been given to the
Trustee pursuant to Section 5.8 hereof; it being understood and intended, and
being expressly covenanted by the taker and Holder of every Security with every
other taker and Holder and the Trustee, that no one or more Holders of
Securities shall have any right in any manner whatever by virtue or by availing
of any provision of this Indenture to affect, disturb or prejudice the rights of
any other Holder of Securities, or to obtain or seek to obtain priority over or
preference to any other such Holder or to enforce any right under this
Indenture, except in the manner herein provided and for the equal, ratable and
common benefit of all Holders of Securities. For the protection and enforcement
of the provisions of this Section 5.6 each and every Securityholder and the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

                                       32

<PAGE>   37

                  Section 4.15 Powers and Remedies Cumulative, Delay or Omission
                               Not Waiver of Default.

                  Except as provided in Section 2.5 hereof, no right or remedy
herein conferred upon or reserved to the Trustee or to the Securityholders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

                  No delay or omission of the Trustee or of any Holder of any of
the Securities to exercise as aforesaid any such right or power accruing upon
any Event of Default occurring and continuing as aforesaid shall impair any such
right or power or shall be construed to be a waiver of any such Event of Default
or an acquiescence therein; and, subject to Section 5.6 hereof, every power and
remedy given by this Indenture or by law to the Trustee or to the
Securityholders may be exercised from time to time, and as often as shall be
deemed expedient, by the Trustee or by the Securityholders.

                  Section 4.16 Control by Securityholders.

                  The Holders of a majority in aggregate principal amount of the
Securities at the time Outstanding shall have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred on the Trustee by this
Indenture; provided that such direction shall not be otherwise than in
accordance with law and the provisions of this Indenture; and provided further
that (subject to the provisions of Section 6.1 hereof) the Trustee shall have
the right to decline to follow any such direction if the Trustee, being advised
by counsel, shall determine that the action or proceeding so directed may not
lawfully be taken or if the Trustee in good faith by its board of directors, its
executive committee, or a trust committee of directors or Responsible Officers
of the Trustee shall determine that the action or proceedings so directed would
involve the Trustee in personal liability or if the Trustee in good faith shall
so determine that the actions or forebearances specified in or pursuant to such
direction shall be unduly prejudicial to the interests of Holders of the
Securities not joining in the giving of said direction, it being understood that
(subject to Section 6.1 hereof) the Trustee shall have no duty to ascertain
whether or not such actions or forebearances are unduly prejudicial to such
Holders.

                  Nothing in this Indenture shall impair the right of the
Trustee in its discretion to take any action deemed proper by the Trustee and
which is not inconsistent with such direction by Securityholders.

                                       33

<PAGE>   38

                  Section 4.17 Waiver of Past Defaults.

                  Prior to the declaration of the maturity of the Securities as
provided in Section 5.1 hereof, the Holders of a majority in aggregate principal
amount of the Securities at the time Outstanding may on behalf of the Holders of
all the Securities waive any past default or Event of Default hereunder and its
consequences, except a default (a) in the payment of principal or Change of
Control purchase price of, or premium, if any, or interest on any of the
Securities or (b) in respect of a covenant or provision hereof that cannot be
modified or amended without the consent of the Holder of each Security affected.
In the case of any such waiver, the Issuer, the Trustee and the Holders of the
Securities shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other default
or impair any right consequent thereon.

                  Upon any such waiver, such default shall cease to exist and be
deemed to have been cured and not to have occurred, and any Event of Default
arising therefrom shall be deemed to have been cured, and not to have occurred
for every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent
thereon.

                  Section 4.18 Rights of Holders to Receive Payment.

                  Notwithstanding any other provision of this Indenture
(including, without limitation, Section 5.6 hereof), the right of any Holder to
receive, and to institute suit to enforce, payment of the principal and Change
of Control purchase price of, and premium, if any, and interest on the
Securities on or after the respective due dates expressed in such Securities
(including upon redemption and acceleration of the maturity of the principal of
and premium, if any, and interest on the Securities), shall not be affected or
impaired, and shall be absolute and unconditional.

ARTICLE 5

                             CONCERNING THE TRUSTEE

                  Section 5.1 Duties and Responsibilities of the Trustee; During
                              Default; Prior to Default.

                  The Trustee, prior to the occurrence of an Event of Default
and after the curing or waiving of all Events of Default that may have occurred,
undertakes to perform only such duties as are specifically set forth in this
Indenture. In case an Event of Default has occurred (which has not been cured or
waived) the Trustee shall exercise such of the rights and powers vested in it by
this Indenture, and use the same degree of care and skill in their exercise, as
a prudent man would exercise or use under the circumstances in the conduct of
his own affairs.

                                       34

<PAGE>   39

                  No provision of this Indenture shall be construed to relieve
the Trustee from liability for its own negligent action, its own negligent
failure to act or its own willful misconduct, except that:

                  (1) prior to the occurrence of an Event of Default and after
the curing or waiving of all such Events of Default that may have occurred:

                      (1) the duties and obligations of the Trustee shall be
         determined solely by the express provisions of this Indenture, and the
         Trustee shall not be liable except for the performance of such duties
         and obligations as are specifically set forth in this Indenture, and no
         implied covenants or obligations shall be read into this Indenture
         against the Trustee; and

                      (2) in the absence of bad faith on the part of the
         Trustee, the Trustee may conclusively rely, as to the truth of the
         statements and the correctness of the opinions expressed therein, upon
         any statements, certificates or opinions furnished to the Trustee and
         conforming to the requirements of this Indenture; but in the case of
         any such statements, certificates or opinions which by any provision
         hereof are specifically required to be furnished to the Trustee, the
         Trustee shall be under a duty to examine the same to determine whether
         or not they conform to the requirements of this Indenture;

                  (2) the Trustee shall not be liable for any error of judgment
made in good faith by a Responsible Officer or Responsible Officers of the
Trustee, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts; and

                  (3) the Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in good faith in accordance with the
direction of the Holders of not less than a majority in principal amount of the
Securities at the time Outstanding relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon the Trustee, under this Indenture.

                  None of the provisions contained in this Indenture shall
require the Trustee to expend or risk its own funds or otherwise incur personal
financial liability in the performance of any of its duties or in the exercise
of any of its rights or powers, if there shall be reasonable ground for
believing that the repayment of such funds or adequate indemnity against such
liability is not reasonably assured to it.

                  Section 5.2 Certain Rights of the Trustee.

                  Subject to Section 6.1 hereof:

                                       35

<PAGE>   40

                  (1) the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, Officers' Certificate or any other
certificate (including, without limitation, any certificate provided to the
Trustee pursuant to Section 4.5 hereof), statement, instrument, opinion, report,
notice, request, consent, order, bond, debenture, note, coupon, security or
other paper document believed by it to be genuine and to have been signed or
presented by the proper party or parties;

                  (2) any request, direction, order or demand of the Issuer
mentioned herein shall be sufficiently evidenced by an Officers' Certificate
(unless other evidence in respect thereof be herein specifically prescribed) and
any resolution of the Board of Directors or any committee of such Board duly
authorized to act on behalf of such Board, may be evidenced to the Trustee by a
copy thereof certified by the Secretary or an Assistant Secretary of the Issuer;

                  (3) the Trustee may consult with counsel and any advice or
Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted to be taken by it hereunder in
good faith and in accordance with such advice or Opinion of Counsel;

                  (4) the Trustee shall be under no obligation to exercise any
of the trusts or powers vested in it by this Indenture at the request, order or
direction of any of the Securityholders pursuant to the provisions of this
Indenture, unless such Securityholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities
that might be incurred therein or thereby;

                  (5) the Trustee shall not be liable for any action taken or
omitted by it in good faith and believed by it to be authorized or within the
discretion, rights or powers conferred upon it by this Indenture;

                  (6) the Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval,
appraisal, bond, debenture, note, coupon, security, or other paper or document
unless requested in writing to do so by the Holders of not less than a majority
in aggregate principal amount of the Securities then Outstanding; provided that,
if the payment within a reasonable time to the Trustee of the costs, expenses or
liabilities likely to be incurred by it in the making of such investigation is,
in the opinion of the Trustee, not reasonably assured by the security afforded
to it by the terms of this Indenture, the Trustee may require reasonable
indemnity against such expenses or liabilities as a condition to making such
investigation; the reasonable expenses of every such examination shall be paid
by the Issuer, or by the Trustee or any predecessor Trustee and repaid by the
Issuer upon demand; and

                  (7) the Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other

                                       36

<PAGE>   41

paper or document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit, and, if
the Trustee shall determine to make such further inquiry or investigation, it
shall be entitled to examine the books, records and premises of the Issuer,
personally or by agent or attorney.

                  Section 5.3 Trustee Not Responsible for Recitals, Disposition
                              of Securities or Application of Proceeds Thereof.

                  The recitals contained herein and in the Securities, except
the Trustee's certificates of authentication, shall be taken as the statements
of the Issuer, and the Trustee assumes no responsibility for the correctness of
the same. The Trustee makes no representation as to the validity or sufficiency
of this Indenture or of the Securities. The Trustee shall not be accountable for
the use or application by the Issuer or any of the Securities or of the proceeds
thereof.

                  Section 5.4 Trustee and Agents May Hold Securities;
                              Collections, etc.

                  The Trustee or any agent of the Issuer or the Trustee, in its
individual or any other capacity, may become the owner or pledgee of Securities
with the same rights it would have if it were not the Trustee or such agent and
may otherwise deal with the Issuer and receive, collect, hold and retain
collections from the Issuer with the same rights it would have if it were not
the Trustee or such agent.

                  Section 5.5 Moneys Held by Trustee.

                  Subject to the provisions of Section 10.4 hereof, all moneys
received by the Trustee shall, until used or applied as herein provided, be held
in trust for the purposes for which they were received, but need not be
segregated from other funds except to the extent required by mandatory
provisions of law. Neither the Trustee nor any agent of the Issuer or the
Trustee shall be under any liability for interest on any moneys received by it
hereunder, except as the Issuer and the Trustee otherwise may agree.

                  Section I.5 Compensation and Indemnification of Trustee and
                              Its Prior Claim.

                  The Issuer covenants and agrees to pay to the Trustee from
time to time as shall be agreed upon between the Issuer and the Trustee in
writing from time to time, and the Trustee shall be entitled to reasonable
compensation (which shall not be limited by any provision of law relating to the
compensation of a trustee of an express trust), and the Issuer covenants and
agrees to pay or reimburse the Trustee and each predecessor Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made
by or on behalf of it in accordance with any of the provisions of this Indenture
(including the reasonable compensation and expenses and disbursements of its
counsel and of all agents and other persons not regularly in its employ), except
to the extent any such expense, disbursement or advance may arise from the
Trustee's negligence or bad faith. The Issuer also covenants to indemnify the
Trustee and each predeces-

                                       37

<PAGE>   42

sor Trustee for, and to hold it harmless against, any and all loss, liability,
damage, claim or expense arising out of or in connection with the acceptance or
administration of this Indenture or the trusts hereunder and its duties
hereunder and the performance of its duties hereunder, including the costs and
expenses of defending and investigating any claim or liability in the premises,
except to the extent any such loss, liability or expense is due to its own
negligence or bad faith. The obligations of the Issuer under this Section 6.6 to
compensate and indemnify the Trustee and each predecessor Trustee and to pay or
reimburse the Trustee and each predecessor Trustee for expenses, disbursements
and advances shall constitute additional indebtedness hereunder and shall
survive the satisfaction and discharge of this Indenture.

                  Section 5.6 Right of Trustee to Rely on Officers' Certificate,
                              etc.

                  Subject to Section 6.1 and Section 6.2 hereof, whenever in the
administration of the trusts of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or
suffering or omitting any action hereunder, such matter (unless other evidence
in respect thereof be herein specifically prescribed) may, in the absence of
negligence or bad faith on the part of the Trustee, be deemed to be conclusively
proved and established by an Officers' Certificate delivered to the Trustee.

                  Section 5.7 Persons Eligible for Appointment as Trustee.

                  The Trustee hereunder shall at all times be a corporation
organized and doing business under the laws of the United States or of a state
thereof, having a combined capital and surplus of at least $50,000,000, and
which is authorized under such laws to exercise corporate trust powers and
subject to supervision or examination by federal, state or District of Columbia
authority. If such corporation publishes reports of condition at least annually,
pursuant to law or to the requirements of a federal, state or District of
Columbia supervising or examining authority, then for the purposes of this
Section 6.8, the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. No obligor on the Securities or Person
directly or indirectly controlling, controlled by or under common control with
such an obligor shall serve as Trustee.

                  Section I.6 Resignation and Removal; Appointment of Successor
                              Trustee.

                  (1) The Trustee may at any time resign by giving written
notice of resignation to the Issuer and by mailing notice thereof by first-class
mail to Holders of Securities at their last addresses as they shall appear on
the Securities Register. Upon receiving such notice of resignation, the Issuer
shall promptly appoint a successor trustee by written instrument in duplicate,
executed by authority of the Board of Directors or any committee of such Board
duly authorized to act on behalf of such Board, one copy of which instrument
shall be delivered to the resigning Trustee and one copy to the successor
Trustee. If no such successor trustee shall have been so appointed and have
accepted appointment within 30 days after the mailing of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the

                                       38

<PAGE>   43

appointment of a successor trustee, or any Securityholder who has been a bona
fide Holder of a Security or Securities for at least six months may, on behalf
of himself and all others similarly situated, petition any such court for the
appointment of a successor trustee. Such court may thereupon, after such notice,
if any, as it may deem proper, prescribe or appoint a successor trustee.

                  (2)  In case at any time any of the following shall occur:

                       (1) the Trustee shall cease to be eligible in accordance
         with the provisions of Section 6.8 hereof and shall fail to resign
         after written request therefor by the Issuer or by any such
         Securityholder; or

                       (2) the Trustee shall become incapable of acting, or
         shall be adjudged a bankrupt or insolvent, or a receiver or liquidator
         of the Trustee or of its property shall be appointed, or any public
         officer shall take charge or control of the Trustee or of its property
         or affairs for the purpose of rehabilitation, conservation or
         liquidation;

then, in any such case, the Issuer may remove the Trustee and appoint a
successor trustee by written instrument, in duplicate, executed by order of the
Board of Directors or any committee of such Board duly authorized to act on
behalf of such Board, one copy of which instrument shall be delivered to the
Trustee so removed and one copy of which shall be delivered to the successor
trustee, or, any Securityholder who has been a bona fide Holder of a Security or
Securities for at least six months may on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the removal
of the Trustee and the appointment of a successor trustee. Such court may
thereupon, after such notice, if any, as it may deem proper and prescribe,
remove the Trustee and appoint a successor trustee.

                  (3) The Holders of a majority in aggregate principal amount of
the Securities at the time Outstanding may at any time remove the Trustee and
appoint a successor trustee by delivering to the Trustee so removed, to the
successor trustee so appointed and to the Issuer the evidence provided for in
Section 7.1 hereof of the action in that regard taken by the Securityholders.

                  (4) Any resignation or removal of the Trustee and any
appointment of a successor trustee pursuant to any of the provisions of this
Section 6.9 shall become effective only upon acceptance of appointment by the
successor trustee as provided in Section 6.10 hereof.

                  Section 5.8 Acceptance of Appointment by Successor Trustee.

                  Any successor trustee appointed as provided in Section 6.9
hereof shall execute and deliver to the Issuer and to its predecessor Trustee an
instrument accepting such appointment hereunder, and thereupon the resignation
or removal of the predecessor Trustee shall become

                                       39
<PAGE>   44

effective and such successor trustee, without any further act, deed or
conveyance, shall become vested with all rights, powers, duties and obligations
of its predecessor hereunder, with like effect as if originally named as trustee
herein; but, nevertheless, on the written request of the Issuer or of the
successor trustee, upon payment of its charges then unpaid, the Trustee ceasing
to act shall, subject to Section 10.4 hereof, pay over the successor trustee all
moneys at the time held by it hereunder and shall execute and deliver an
instrument transferring to such successor trustee all such rights, powers,
duties and obligations. Upon request of any such successor trustee, the Issuer
shall execute appropriate instruments in writing for more fully and certainly
vesting in and confirming to such successor such rights and powers. Any Trustee
ceasing to act shall, nevertheless, retain a prior claim upon all property or
funds held or collected by such Trustee to secure any amounts then due to it
pursuant to the provisions of Section 6.6 hereof.

                  Upon acceptance of appointment by a successor trustee as
provided in this Section 6.10, the Issuer shall mail notice thereof by
first-class mail to the Holders of Securities at their last addresses as they
shall appear in the Securities Register. If the acceptance of appointment is
substantially contemporaneous with the resignation, then the notice called for
by the preceding sentence may be combined with the notice called for by Section
6.9 hereof. If the Issuer fails to mail such notice within 10 days after
acceptance of appointment by the successor trustee, the successor trustee shall
cause such notice to be mailed at the expense of the Issuer.

                  Notwithstanding replacement of the Trustee pursuant to this
Section 6.10, the Issuer's obligations under Section 6.6 hereof shall continue
for the benefit of the retiring Trustee.

                  Section I.7 Merger, Conversion, Consolidation or Succession to
                              Business of Trustee.

                  Any corporation into which the Trustee may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided that such
corporation shall be eligible under the provisions of Section 6.8 hereof,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto, anything herein to the contrary notwithstanding.

                  In case at the time such successor to the Trustee shall
succeed to the trusts created by this Indenture, any of the Securities shall
have been authenticated but not delivered, any such successor to the Trustee may
adopt the certificate of authentication of any predecessor Trustee and deliver
such Securities so authenticated and, in case at that time any of the Securities
shall not have been authenticated, any successor to the Trustee may authenticate
such Securities either in the name of any predecessor hereunder or in the name
of the successor trustee, and in such cases such certificate shall have the full
force which it is anywhere in the Securities or in this Indenture provided that
the certificate of the Trustee shall have; provided, that the right to adopt the
certificate of authentication of any predecessor Trustee or to authenticate
Securities in the

                                       40

<PAGE>   45

name of any predecessor Trustee shall apply only to its successor or successors
by merger, conversion or consolidation.

ARTICLE 6

                         CONCERNING THE SECURITYHOLDERS

                  Section I.1  Evidence of Action Taken by Securityholders.

                  Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken
by Securityholders may be embodied in and evidenced by one or more instruments
of substantially similar tenor signed by such Securityholders, in person or by
agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments
are delivered to the Trustee. Proof of execution of any instrument or of a
writing appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Section 6.1 and Section 6.2 hereof) conclusive in
favor of the Trustee and the Issuer, if made in the manner provided in this
Article.

                  Section I.2 Proof of Execution of Instruments and of Holding
                              of Securities Record Date.

                  Subject to Section 6.1 and Section 6.2 hereof, the execution
of any instrument by a Securityholder or his agent or proxy may be provided in
accordance with such reasonable rules and regulations as may be prescribed by
the Trustee or in such manner as shall be satisfactory to the Trustee. The
holding of Securities shall be provided by the Securities Register or by a
certificate of the Security Registrar thereof. The Issuer may set a record date
for purposes of determining the identity of Holders of Securities entitled to
vote or consent to any action referred to in Section 7.1 hereof, which record
date may be set at any time or from time to time by notice to the Trustee for
any date or dates (in the case of any adjournment or resolicitation) not more
than 60 days nor less than five days prior to the proposed date of such vote or
consent, and thereafter, notwithstanding any other provisions hereof, only
Holders of Securities of record on such record date shall be entitled to so vote
or give such consent or to withdraw such vote or consent.

                  Section 6.1 Holders to Be Treated as Owners.

                  The Issuer, the Trustee and any agent of the Issuer or the
Trustee may deem and treat the Person in whose name any Security shall be
registered by the Securities Register as the absolute owner of such Security
(whether or not such Security shall be overdue and notwithstanding any notation
of ownership or other writing thereon) for the purpose of receiving payment of
or on account of the principal and Change of Control purchase price of, and

                                       41

<PAGE>   46

premium, if any, on and, subject to the provisions of this Indenture, interest
on such Security and for all other purposes; and neither the Issuer nor the
Trustee nor any agent of the Issuer or the Trustee shall be affected by any
notice to the contrary. All such payments so made to any such Person, or upon
his order, shall be valid and to the extent of the sum or sums so paid,
effectual to satisfy and discharge the liability for moneys payable upon any
such Security.

                  Section 6.2 Securities Owned by Issuer Deemed Not Outstanding.

                  In determining whether the Holders of the requisite aggregate
principal amount of Securities have concurred in any direction, consent or
waiver under this Indenture, Securities that are owned by the Issuer or any
other obligor on the Securities or by any Person directly or indirectly
controlling or controlled by or under direct or indirect common control with the
Issuer or any obligor on the Securities shall be disregarded and deemed not to
be Outstanding for the purpose of any such determination, except that for the
purpose of determining whether the Trustee shall be protected in relying on any
such direction, consent or waiver only Securities that the Trustee knows are so
owned shall be so disregarded. Securities so owned that have been pledged in
good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee's right so to act with respect to such
Securities and that the pledgee is not the Issuer or any other obligor upon the
Securities or any Person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Issuer or any other obligor on
the Securities. In case of a dispute as to such right, the advice of counsel
shall be full protection in respect of any decision made by the Trustee in
accordance with such advice. Upon request of the Trustee, the Issuer shall
furnish to the Trustee promptly an Officers' Certificate listing and identifying
all Securities, if any, known by the Issuer to be owned or held by or for the
account of any of the above-described Persons; and, subject to Section 6.1 and
Section 6.2 hereof, the Trustee shall be entitled to accept such Officers'
Certificate as conclusive evidence of the facts therein set forth and of the
fact that all Securities not listed therein are Outstanding for the purpose of
any such determination.

                  Section 6.3 Right of Revocation of Action Taken.

                  At any time prior to (but not after) the evidencing to the
Trustee, as provided in Section 7.1 hereof, of the taking of any action by the
Holders of the percentage in aggregate principal amount of the Securities
specified in this Indenture in connection with such action, any Holder of a
Security the serial number of which is shown by the evidence to be included
among the serial numbers of the Securities, the Holders of which have consented
to such action may, by filing written notice with the Trustee at the Corporate
Trust Office and upon proof of holding as provided in this Article, revoke such
action so far as concerns such Security. Except as aforesaid any such action
taken by the Holder of any Security shall be conclusive and binding upon such
Holder and upon all future Holders and owners of such Security and of any
Securities issued in exchange or substitution therefor, irrespective of whether
or not any notation in regard thereto is made upon any such Security. Any action
taken by the Holders of the percentage in aggregate

                                       42

<PAGE>   47

principal amount of the Securities specified in this Indenture in connection
with such action shall be conclusively binding upon the Issuer, the Trustee and
the Holders of all such Securities.

ARTICLE 7

                             SUPPLEMENTAL INDENTURES

Section 7.1       Supplemental Indentures Without Consent of Securityholders.

                  The Issuer, when authorized by a resolution of its Board of
Directors or any committee of such Board duly authorized to act on behalf of
such Board, and the Trustee may from time to time and at any time enter into an
indenture or indentures supplemental hereto for one or more of the following
purposes:

                  (1) to convey, transfer, assign, mortgage or pledge to the
Trustee as security for the Securities any property or assets;

                  (2) to evidence the succession of another corporation to the
Issuer, or successive successions, and the assumption by the successor
corporation of the covenants, agreements and obligations of the Issuer pursuant
to Article IX hereof;

                  (3) to add to the covenants of the Issuer such further
covenants, restrictions, conditions or provisions as the Board of Directors or
any committee of such Board duly authorized to act on behalf of such Board,
shall consider to be for the protection of the Holders of Securities, and to
make the occurrence, or the occurrence and continuance of a default in any such
additional covenants, restrictions, conditions or provisions an Event of Default
permitting the enforcement of all or any of the several remedies provided in
this Indenture as herein set forth; provided, that in respect of any such
additional covenant, restriction, condition or provision such supplemental
indenture may provide for a particular period of grace after default (which
period may be shorter or longer than that allowed in the case of other defaults)
or may provide for immediate enforcement upon such an Event of Default or may
limit the remedies available to the Trustee due solely to such an Event of
Default or may limit the right of the Holders of a majority in aggregate
principal amount of the Securities to waive such an Event of Default;

                  (4) to cure any ambiguity or to cure, correct or supplement
any defective provision contained herein or in the Securities, or to make such
other provisions in regard to matters or questions arising under this Indenture
or under any supplemental indenture as the Board of Directors or any committee
of such Board duly authorized to act on behalf of such Board, may deem necessary
or desirable, and in any case which the Trustee and the Issuer shall determine
(i) are not inconsistent with this Indenture and the Securities and (ii) shall
not adversely affect the interests of the Holders of the Securities; and

                                       43

<PAGE>   48

                  (5) to modify or supplement this Indenture or any indenture
supplemental hereto in such manner as to permit the qualification thereof under
the Trust Indenture Act of any other similar federal statute hereafter in
effect.

                  The Trustee is hereby authorized to join in the execution of
any such supplemental Indenture, to make any further appropriate agreements and
stipulations that may be therein contained and to accept the conveyance,
transfer, assignment, mortgage or pledge of any property thereunder, but the
Trustee shall not be obligated to enter into any such supplemental indenture
that affects the Trustee's own rights, duties or immunities under this Indenture
or otherwise.

                  Any supplemental indenture authorized by the provisions of
this Section 8.1 may be executed without the consent of the Holders of any of
the Securities at the time Outstanding, notwithstanding any of the provisions of
Section 8.2 hereof.

                  Section 7.2 Supplemental Indentures With Consent of
                              Securityholders.

                  With the consent (evidenced as provided in Article VII hereof)
of the Holders of not less than a majority in aggregate principal amount of the
Securities at the time Outstanding, the Issuer, when authorized by a resolution
of its Board of Directors or any committee of such Board duly authorized to act
on behalf of such Board, and the Trustee may, from time to time and at any time,
modify this Indenture or any indentures supplemental hereto or the rights of the
Holders of the Securities; provided, that no such supplemental indenture shall
(a) change the Stated Maturity of the principal of, or any installment of
principal of or interest on (including Additional Amounts), any Security, or
reduce the principal amount thereof, or reduce the rate or extend the time of
payment of interest thereon, or reduce any amount payable on redemption thereof
or upon a Change of Control or impair or affect the right of any Securityholder
to institute suit for the payment thereof or make any change to Section 4.10
hereof that adversely affects the rights of the Holders of the Securities, in
each case without the consent of the Holder of each Security so affected, or (b)
without the consent of the Holders of all Securities then Outstanding, (i)
reduce the aforesaid percentage of Securities, the consent of the Holders of
which is required for any such modification, or the percentage of Securities,
the consent of the Holders of which is required for any waiver provided for in
this Indenture, (ii) change any obligation of the Issuer to maintain an office
or agency in the places and for the purposes specified in Section 4.2 or (iii)
make any change in Section 5.9 or this Section 8.2, except to increase any
percentages or to provide that certain other provisions of this Indenture cannot
be modified or waived without the consent of the Holders of each Outstanding
Security affected thereby.

                  Upon the request of the Issuer, accompanied by a copy of a
resolution of the Board of Directors or any committee of such Board duly
authorized to act on behalf of such Board, certified by the Secretary or an
Assistant Secretary of the Issuer authorizing the execution

                                       44

<PAGE>   49

of any such supplemental indenture, and upon the filing with the Trustee of
evidence of the consent of Securityholders and other documents, if any, required
by Section 7.1 hereof, the Trustee shall join with the Issuer in the execution
of such supplemental indenture unless such supplemental indenture affects the
Trustee's own rights, duties or immunities under this Indenture or otherwise, in
which case the Trustee may in its discretion, but shall not be obligated to
enter into such supplemental indenture.

                  It shall not be necessary for the consent of the
Securityholders under this Section 8.2 to approve the particular form of any
proposed supplemental indenture, but it shall be sufficient if such consent
shall approve the substance thereof.

                  Promptly after the execution by the Issuer and the Trustee of
any supplemental indenture pursuant to the provisions of this Section 8.2, the
Issuer shall mail a notice thereof by first-class mail to the Holders of
Securities at their addresses as they shall appear on the Securities Register,
setting forth in general terms the substance of such supplemental indenture. Any
failure of the Issuer to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental
indenture.

                  Section 7.3 Effect of Supplemental Indenture.

                  Upon the execution of any supplemental indenture pursuant to
the provisions hereof, this Indenture shall be and be deemed to be modified and
amended in accordance therewith and the respective rights, limitations of
rights, obligations, duties and immunities under this Indenture of the Trustee,
the Issuer and the Holders of Securities shall thereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications
and amendments, and all the terms and conditions of any such supplemental
indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.

                  Section I.3 Documents to Be Given to Trustee.

                  The Trustee, subject to the provisions of Section 6.1 and
Section 6.2 hereof, may receive an Officers' Certificate and an Opinion of
Counsel as conclusive evidence that any such supplemental indenture complies
with the applicable provisions of this Indenture.

                  Section 7.4 Notation of Securities in Respect of Supplemental
                              Indentures.

                  Securities authenticated and delivered after the execution of
any supplemental indenture pursuant to the provisions of this Article VIII may
bear a notation in form approved by the Trustee as to any matters provided for
by such supplemental indenture. If the Issuer or the Trustee shall so determine,
new Securities so modified as to conform, in the opinion of the Trustee and the
Board of Directors or any committee of such Board duly authorized to act on
behalf of such Board, to any modification of this Indenture contained in any
such supplemental

                                       45

<PAGE>   50

indenture may be prepared by the Issuer, authenticated by the Trustee and
delivered in exchange for the Securities then Outstanding.

ARTICLE 8

                    CONSOLIDATION, MERGER, SALE OR CONVEYANCE

                  Section 8.1 Covenant Not to Merge, Consolidate, Sell or
                              Transfer Assets Except Under Certain Conditions.

                  (1) The Issuer shall not consolidate with or merge into any
other Person, or sell, convey, transfer or lease its properties and assets
substantially as an entirety to any Person, and the Issuer shall not permit any
Person to consolidate with or merge into the Issuer, unless: (i) immediately
prior to and immediately following such consolidation, merger, sale or lease, no
Event of Default shall have occurred and be continuing and (ii) the Issuer is
the surviving or continuing corporation, or the surviving or continuing
corporation or the corporation that acquires by sale, conveyance, transfer or
lease is incorporated in the United States of America or Canada and expressly
assumes the payment and performance of all obligations of the Issuer under the
Indenture and the Securities.

                  (2) Except for the sale of the properties and assets of the
Issuer substantially as an entirety pursuant to subsection (a) above, and other
than assets required to be sold to conform with governmental regulations, the
Issuer shall not sell or otherwise dispose of any assets (other than short-term,
readily marketable investments purchased for cash management purposes with funds
not representing the proceeds of other asset sales) if on a pro forma basis, the
aggregate net book value of all such sales during the most recent 12-month
period would exceed 10 percent of Consolidated Net Tangible Assets computed as
of the end of the most recent fiscal quarter preceding such sale; provided,
however, that any such sales shall be disregarded for purposes of computing such
10 percent Consolidated Net Tangible Assets if the proceeds are invested in
assets in similar or related lines of business of the Issuer; and, provided
further, that the Issuer may sell or otherwise dispose of assets in excess of
such 10 percent of Consolidated Net Tangible Assets if the proceeds from such
sales or dispositions, which are not reinvested as provided above, are retained
by the Issuer as cash or cash equivalents or are used by the Issuer to purchase
Securities, 1996 Senior Notes, 1997 Senior Notes, 1999 Senior Notes or 1999
ROARS which are then delivered to the Trustee for cancellation or are used to
reduce or retire Indebtedness ranking pari passu in right of payment to the
Securities.

                  (3) In the event that any such successor entity is organized
under the laws of or is managed or controlled or has a place of business in a
jurisdiction located outside of a Taxing Jurisdiction and withholding or
deduction is required by law for or on account of any present or future taxes,
duties, assessments or governmental charges of whatever nature imposed, levied,
collected, withheld or assessed by or within such other jurisdiction or by or
within any

                                       46

<PAGE>   51

political subdivision thereof or any authority therein or thereof having power
to tax, the successor entity shall pay to the relevant Holder of the Securities
Additional Amounts, under the same circumstances and subject to the same
limitations as are specified for in Section 4.9 hereof, but substituting for the
applicable Taxing Jurisdiction in each place the name of such jurisdiction. In
addition, such successor entity shall be entitled to effect an optional tax
redemption under the same circumstances and subject to the same limitations as
are set forth in Section 3.6(d) hereof, but substituting for the applicable
Taxing Jurisdiction in each place the name of such other jurisdiction under the
laws of which such successor entity is organized, managed and controlled or has
a place of business and substituting the date of such succession for the date of
original issuance of the Securities.

                  Section 8.2 Successor Corporation Substituted.

                  In case of any such consolidation, merger, sale or transfer,
and following such an assumption by the successor corporation, such successor
corporation shall succeed to and be substituted for the Issuer, with the same
effect as if it had been named Issuer herein.

                  Such successor corporation may cause to be signed, and may
issue, either in its own name or in the name of the Issuer prior to such
succession, any or all of the Securities issuable hereunder that theretofore
shall not have been signed by the Issuer and delivered to the Trustee; and, upon
the order of such successor corporation, instead of the Issuer, and subject to
all the terms, conditions and limitations in this Indenture prescribed, the
Trustee shall authenticate and shall deliver any Securities that previously
shall have been signed and delivered by the officers of the Issuer to the
Trustee for authentication and any Securities that such successor corporation
thereafter shall cause to be signed and delivered to the Trustee for that
purpose. All of the Securities so issued shall in all respects have the same
legal rank and benefit under this Indenture as the Securities theretofore or
thereafter issued in accordance with the terms of this Indenture as though all
of such Securities had been issued at the date of the execution hereof.

                  In case of any such consolidation, merger, sale or transfer
such changes in phraseology and form (but not in substance) may be made in the
Securities thereafter to be issued as may be appropriate.

                  In the event of any such sale or transfer (other than a
transfer by way of lease) the Issuer or any successor corporation which shall
theretofore have become such in the manner described in this Article IX shall be
discharged from all obligations and covenants under this Indenture.

                  Section 8.3 Opinion of Counsel to Trustee; Officers'
                              Certificate.

                  The Trustee, subject to the provisions of Section 6.1 and
Section 6.2 hereof, shall be entitled to receive and rely upon an Officers'
Certificate and an Opinion of Counsel as conclusive evidence that any such
consolidation, merger, sale or transfer, and any such assump-

                                       47

<PAGE>   52

tion, and any such liquidation or dissolution, complies with the applicable
provisions of this Indenture.

ARTICLE 9

                    SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

                  Section 9.1 Satisfaction and Discharge of Indenture.

                  If at any time (a) the Issuer shall have paid or caused to be
paid the principal and Change of Control purchase price of and premium, if any,
and interest on all the Securities Outstanding hereunder, as and when the same
shall have become due and payable, or (b) the Issuer shall have delivered to the
Trustee for cancellation all Securities theretofore authenticated (other than
any Securities which shall have been destroyed, lost or stolen and which shall
have been replaced or paid as provided in Section 2.7 hereof), or (c)(i) all
such Securities not theretofore delivered to the Trustee for cancellation shall
have become due and payable, or are by their terms to become due and payable
within one year or are to be called for redemption under arrangements
satisfactory to the Trustee for the giving of notice of redemption, and (ii) the
Issuer shall have irrevocably deposited or caused to be deposited with the
Trustee as trust funds the entire amount in cash (other than moneys repaid by
the Trustee or any paying agent to the Issuer in accordance with Section 10.4
hereof) or U.S. Government Obligations, maturing as to principal, premium, if
any, and interest in such amounts and at such times as will insure (without
reinvestment) the availability of cash sufficient, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, to pay at maturity all
such Securities not theretofore delivered to the Trustee for cancellation,
including principal, premium, if any, and interest due or to become due to such
date of maturity as the case may be, and if, in any such case, the Issuer shall
also pay or cause to be paid all other sums payable hereunder by the Issuer,
then this Indenture shall cease to be of further effect (except as to (i) rights
of registration of transfer and exchange, and the Issuer's right to optional
redemption, (ii) substitution of apparently mutilated, defaced, destroyed, lost
or stolen Securities, (iii) rights of Holders to receive payments of principal
thereof (including any Change of Control purchase price previously accrued) and
premium, if any, and interest or Additional Amounts, if any, thereon, upon the
original stated due dates therefor (but not upon acceleration), (iv) the rights
and obligations and immunities of the Trustee hereunder and (v) the rights of
the Securityholders as beneficiaries hereof with respect to the moneys so
deposited with the Trustee payable to all or any of them), and the Trustee, on
demand of the Issuer accompanied by an Officers' Certificate and an Opinion of
Counsel and at the cost and expense of the Issuer, shall execute proper
instruments acknowledging such satisfaction of and discharging this Indenture;
provided that the rights of Holders of the Securities to receive amounts in
respect of principal of and premium, if any, and interest or the Securities held
by them shall not be delayed longer than

                                       48

<PAGE>   53

required by then applicable mandatory rules or policies of any securities
exchange upon which the Securities may be listed.

                  The Issuer agrees to reimburse the Trustee for any costs or
expenses thereafter reasonably and properly incurred and to compensate the
Trustee for any services thereafter reasonably and properly rendered by the
Trustee in connection with this Indenture or the Securities.

                  Section 9.2 Application by Trustee of Funds Deposited for
                              Payment of Securities.

                  Subject to Section 10.4 hereof, all moneys deposited with the
Trustee pursuant to Section 10.1 hereof shall be held in trust and applied, by
it to the payment, either directly or through any paying agent (including the
Issuer acting as its own paying agent), to the Holders of the particular
Securities for the payment or redemption of which such moneys have been
deposited with the Trustee, of all sums due and to become due thereon for
principal, and Change of Control purchase price, premium, if any, interest and
Additional Amounts, if any; but such money need not be segregated from other
funds except to the extent required by law.

                  Section 9.3 Repayment of Moneys Held by Paying Agent.

                  In connection with the satisfaction and discharge of this
Indenture all moneys then held by any paying agent under the provisions of this
Indenture shall, upon demand of the Issuer, be repaid to it or paid to the
Trustee and thereupon such paying agent shall be released from all further
liability with respect to such moneys.

                  Section 9.4 Return of Moneys Held by Trustee and Paying Agent
                              Unclaimed for Two Years.

                  Any moneys deposited with or paid to the Trustee or any paying
agent for the payment of the principal or Change of Control purchase price of or
premium or interest on any Security and not applied but remaining unclaimed for
two years after the date upon which such principal, Change of Control purchase
price, premium or interest shall have become due and payable shall, upon the
written request of the Issuer, be repaid to the Issuer by the Trustee or such
paying agent, and the Holder of such Security shall, unless otherwise required
by mandatory provisions of applicable escheat or abandoned or unclaimed property
laws, thereafter look only to the Issuer for any payment which such Holder may
be entitled to collect, and all liability of the Trustee or any paying agent
with respect to such moneys shall thereupon cease.

                  Section 9.5 Defeasance and Discharge of Indenture.

                  The Issuer will be deemed to have paid and will be discharged
from any and all obligations in respect of the Securities, on the 123rd day
after the deposit referred to in subpara-

                                       49

<PAGE>   54

graph (A) hereof has been made, and the provisions of this Indenture will no
longer be in effect with respect to the Securities (and the Trustee, at the
expense of the Issuer, shall execute proper instruments acknowledging the same),
except as to:

                  (1) rights of registration of transfer and exchange, and the
Issuer's right of optional redemption, (b) substitution of apparently mutilated,
defaced, destroyed, lost or stolen Securities, (c) rights of Holders to receive
payments of principal (including rights to receive any Change of Control
purchase price previously accrued) thereof and premium, if any, and interest
thereon, (d) the rights, obligations and immunities of the Trust hereunder, (e)
the rights of the Securityholders as beneficiaries hereof with respect to the
property so deposited with the Trustee payable to all or any of them and (f) the
obligations of the Issuer to maintain a place of payment for the Securities
under Section 4.1 hereof; provided that the following conditions shall have been
satisfied:

                           (A) with reference to this Section 10.5 the Issuer
has irrevocably deposited or caused to be irrevocably deposited with the Trustee
(or another trustee satisfying the requirements of Section 6.8 hereof) as trust
funds in trust, specifically pledged as security for, and dedicated solely to,
the benefit of the Holders of the Securities, (i) money in an amount, or (ii)
U.S. Government Obligations which through the payment of interest and principal
in respect thereof in accordance with their terms (without reinvestment) will
provide not later than one day before the due date of any payment referred to in
clause (x) or (y) of this subparagraph (A) money in an amount, or (iii) a
combination thereof, sufficient, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, after payment of all federal,
state and local taxes or other charges and assessments in respect thereof
payable by the Trustee, (x) the principal and Change of Control purchase price
previously accrued of, premium, if any, and each installment of principal and
interest (including any Additional Amounts then known), the Outstanding
Securities at the maturity date of such principal or installment of principal or
interest and (y) any mandatory sinking fund payments or analogous payments
applicable to the Securities on the day on which such payments are due and
payable in accordance with the terms of this Indenture and the Securities;

                           (B) the Issuer has delivered to the Trustee (i) an
Opinion of Counsel to the effect that Holders will not recognize income, gain or
loss for federal income tax purposes as a result of the Issuer's exercise of its
option under this Section 10.5 and will be subject to federal income tax on the
same amount and in the same manner and at the same times as would have been the
case if such deposit, defeasance and discharge had not occurred, which Opinion
of Counsel must be based on (x) a change in applicable federal income tax law or
related Treasury Regulations after the date of this Indenture or (y) a ruling
received by the Issuer from the Internal Revenue Service to the same effect and
(ii) an Opinion of Counsel to the effect that the defeasance trust does not
constitute an "investment company" under the Investment Company Act of 1940, as
amended, and after the passage of 123 days following the deposit, the trust fund

                                       50
<PAGE>   55

will not be subject to the effect of Section 547 of the U.S. Bankruptcy Code or
Section 15 of the New York Debtor and Creditor Law;

                           (C) immediately after giving effect to such deposit
on a pro forma basis, no Event of Default, or event that after the giving of
notice or lapse of time or both would become an Event of Default, shall have
occurred and be continuing on the date of such deposit or during the period
ending on the 123rd day after the date of such deposit, and such deposit shall
not result in a breach or violation of, or constitute a default under, any other
agreement or instrument to which the Issuer is a party or by which the Issuer is
bound; and

                           (D) if at such time the Securities are listed on a
national securities exchange, the Issuer has delivered to the Trustee an Opinion
of Counsel to the effect that the Securities will not be delisted as a result of
such deposit, defeasance and discharge.

                  Section 9.6 Defeasance of Certain Obligations.

                  The Issuer may omit to comply with any term, provision, or
condition set forth in this Indenture in Sections 4.8 and 4.10 and Section
5.l(d) (with respect to Sections 4.8 and 4.10) and Sections 5.1(c) and (e) shall
be deemed not to be Events of Default on the 123rd day after the deposit
referred to in subparagraph (A) hereof if:

                           (A) with reference to this Section 10.6, the Issuer
has irrevocably deposited or caused to be irrevocably deposited with the Trustee
(or another trustee satisfying the requirements of Section 6.6 hereof) as trust
funds in trust, specifically pledged as security for, and dedicated solely to,
the benefit of the Holders of the Securities, (i) money in an amount, or (ii)
U.S. Government Obligations which bought the payment of interest and principal
in respect thereof in accordance with their terms (without reinvestment) will
provide not later than one day before the due date of any payment referred to in
this Section 10.6, money in an amount, or (iii) a combination thereof,
sufficient, in the opinion of a nationally recognized firm of independent public
accountants expressed in a certification thereof delivered to the Trustee, to
pay and discharge, after payment of all federal, state and local taxes or other
charges and assessments in respect thereof payable by the Trustee, the principal
and Change of Control purchase price of, premium, if any, and interest on
(including any Additional Amounts then known) in respect of the Outstanding
Securities on the dates such payments are due in accordance with the terms of
this Indenture and the Securities;

                           (B) the Issuer has delivered to the Trustee (i) an
Opinion of Counsel to the effect that Holders will not recognize income, gain or
loss for federal income tax purposes as a result of the Issuer's exercise of its
option under this Section 10.6 and will be subject to federal income tax on the
same amount and in the same manner and at the same times as would have been the
case if such deposit, defeasance and discharge had not occurred, and (ii) an
Opinion of Counsel to the effect that the defeasance trust does not constitute
an "investment company" under the Investment Company Act of 1940, as amended,
and after the passage

                                       51
<PAGE>   56

of 123 days following the deposit, the trust fund will not be subject to the
effect of Section 547 of the U.S. Bankruptcy Code or Section 15 of the New York
Debtor and Creditor Law;

                           (C) immediately after giving effect to such deposit
on a pro forma basis, no Event of Default, or event that after the giving of
notice or lapse of time or both would become an Event of Default, shall have
occurred and be continuing on the date of such deposit or during the period
ending on the 123rd day after the date of such deposit, and such deposit shall
not result in a breach or violation of or constitute a default under any other
agreement or instrument to which the Issuer is a party or by which the Issuer is
bound; and

                           (D) if at such time the Securities are listed on a
national securities exchange, the Issuer has delivered to the Trustee an Opinion
of Counsel to the effect that the Securities will not be delisted as a result of
such deposit, defeasance and discharge.

ARTICLE 10

                            MISCELLANEOUS PROVISIONS

                  Section I.1 Incorporators, Shareholders, Officers and
                              Directors of Issuer Exempt from Individual
                              Liability.

                  No recourse under or upon any obligation, covenant or
agreement contained in this Indenture, or in any Security, or because of any
indebtedness evidenced thereby, shall be had against any incorporator, as such,
or against any past, present or future shareholder, officer or director, as
such, of the Issuer or of any successor, either directly or through the Issuer
or any successor, under any rule of law, statute or constitutional provision or
by the enforcement of any assessment or by any legal or equitable proceeding or
otherwise, all such liability being expressly waived and released by the
acceptance of the Securities by the Holders thereof and as part of the
consideration for the issue of the Securities.

                  Section 10.1 Provisions of the Indenture for the Sole Benefit
                               of Parties and Securityholders.

                  Nothing in this Indenture or in the Securities, expressed or
implied, shall give or be construed to give to any Person, other than the
parties hereto and their successors and the Holders (and, where expressly set
forth herein, owners of interests in any Global Security), any legal or
equitable right, remedy or claim under this Indenture or under any covenant or
provision herein contained, all such covenants and provisions being for the sole
benefit of the parties hereto and their successors and the Holders (and, where
expressly set forth herein, owners of interests in any Global Security).

                                       52

<PAGE>   57

                  Section 10.2 Successors and Assigns of Issuer Bound by
                               Indenture.

                  All the covenants, stipulations, promises and agreements in
this Indenture contained by or in behalf of the Issuer shall bind its successors
and assigns, whether so expressed or not.

                  Section I.2 Notices and Demands on Issuer, Trustee and
                              Securityholders.

                  Any notice or demand which by any provision of this Indenture
is required or permitted to be given or served by the Trustee or by the Holders
to or on the Issuer may be given or served by being deposited postage prepaid,
first-class mail (except as otherwise specifically provided herein) addressed
(until another address of the Issuer is filed by the Issuer with the Trustee) to
NRG Energy, Inc., 1221 Nicollet Mall, Suite 700, Minneapolis, Minnesota 55403,
Attention: Chief Financial Officer. Any notice, direction, request or demand by
the Issuer or any Securityholder to or upon the Trustee shall be deemed to have
been sufficiently given or made, for all purposes, if given or made to the
Corporate Trust Office or such office or agency designated for such purpose in
Section 4.2 hereof.

                  Where this Indenture provides for notice to Holders, such
notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder entitled
thereto, at his last address as it appears in the Securities Register. In any
case where notice to Holders is given by mail, neither the failure to mail such
notice, nor any defect in any notice so mailed, to any particular Holder shall
affect the sufficiency of such notice with respect to other Holders.

                  In case, by reason of the suspension of or irregularities in
regular mail service, it shall be impracticable to mail notice to the Issuer and
Securityholders when such notice is required to be given pursuant to any
provision of this Indenture, then any manner of giving such notice as shall be
satisfactory to the Trustee shall be deemed to be a sufficient giving of such
notice.

                  Except as otherwise expressly provided herein, where this
Indenture provides for notice to Holders of Bearer Securities of any event and
the rules of any securities exchange on which such Bearer Securities are listed
so require, such notice shall be sufficiently given to Holders of such Bearer
Securities if published in such newspaper or newspapers as may be specified in
such Securities on a Business Day at least twice, the first such publication to
be not earlier than the earliest date, and not later than the latest date,
prescribed for the giving of such notice. Any such notice by publication shall
be deemed to have been given on the date of the first such publication. In
addition, notice to the Holder of any Global Bearer Security shall be given by
mail in the manner provided above.

                  If by reason of any cause it shall be impracticable to publish
any notice to Holders of Bearer Securities as provided above, then such
notification to Holders of Bearer Securities as shall be given with the approval
of the Trustee shall constitute sufficient notice to such Holders

                                       53

<PAGE>   58

for every purpose hereunder. Neither the failure to give notice by publication
to Holders of Bearer Securities as provided above, nor any defect in any notice
so published, shall affect the sufficiency of such notice with respect to other
Holders of Bearer Securities or the sufficiency of any notice to Holders of
Registered Securities given as provided herein.

                  Any request, demand, authorization, direction, notice,
consent, waiver or Act required or permitted under this Indenture shall be in
the English language, except that any published notice may be in an official
language of the country of publication.

                  Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice. Waivers of notice by Holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

                  Section 10.3 Rule 144A Information.

                  So long as the Securities are outstanding and are "restricted
securities" within the meaning of Rule 144(a)(3) under the Securities Act, the
Issuer shall furnish to holders thereof and to prospective purchasers thereof
designated by such holders, upon request of such holders or such prospective
purchasers, the information required to be delivered pursuant to Rule 144A(d)(4)
under the Securities Act, unless such information is contained, at the time of
such request, in documents filed with the Commission pursuant to Section 13 or
15(d) of the Exchange Act.

                  Section I.3 Officers' Certificates and Opinions of Counsel,
                              Statements to Be Contained Therein.

                  Upon any application or demand by the Issuer to the Trustee to
take any action under any of the provisions of this Indenture, the Issuer shall
furnish to the Trustee an Officers' Certificate stating that all conditions
precedent provided for in this Indenture relating to the proposed action have
been complied with and an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent have been complied with, except that in
the case of any such application or demand as to which the furnishing of such
documents is specifically required by any provision of this Indenture relating
to such particular application or demand, no additional certificate or opinion
need be furnished.

                  Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
provided for in this Indenture shall include (a) a statement that the Person
making such certificate or opinion has read such covenant or condition, (b) a
brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion
are based, (c) a statement that, in the opinion of such Person, he has made such
examination or

                                       54

<PAGE>   59

investigation as is necessary to enable him to express an informed opinion as to
whether or not such covenant or condition has been complied with and (d) a
statement as to whether or not, in the opinion of such Person, such condition or
covenant has been complied with.

                  Any certificate, statement or opinion of an officer of the
Issuer may be based, insofar as it relates to legal matters, upon a certificate
or opinion of or representations by counsel, unless such officer knows that the
certificate or opinion or representations with respect to the matters upon which
his certificate, statement or opinion may be based as aforesaid are erroneous,
or in the exercise of reasonable care should know that the same are erroneous.
Any certificate, statement or Opinion of Counsel may be based, insofar as it
relates to factual matters (information with respect to which is in the
possession of the Issuer) upon the certificate, statement or opinion of or
representations by an officer or officers of the Issuer, unless such counsel
knows that the certificate, statement or opinion or representations with respect
to the matters upon which his certificate, statement or opinion may be based as
aforesaid are erroneous, or in the exercise of reasonable care should know that
the same are erroneous.

                  Any certificate, statement or opinion of an officer of the
Issuer or of counsel may be based, insofar as it relates to accounting matters,
upon a certificate or opinion of or representations by an accountant or firm of
accountants in the employ of the Issuer, unless such officer or counsel, as the
case may be, knows that the certificate or opinion or representations with
respect to the accounting matters upon which his certificate, statement or
opinion may be based as aforesaid are erroneous, or in the exercise of
reasonable care should know that the same are erroneous.

                  Any certificate or opinion of any independent firm of public
accountants or Investment Banker filed with the Trustee shall contain a
statement that such firm is independent.

                  Section 10.4 Payments Due on Saturdays, Sundays and Holidays.

                  If the date of maturity of interest on or principal, Change of
Control purchase price, or premium, if any, of the Securities or the date fixed
for redemption of any Security shall not be a Business Day, then payment of
interest, principal, Change of Control purchase price, or premium need not be
made on such date, but may be made on the next succeeding Business Day with the
same force and effect as if made on the date of maturity or the date fixed for
redemption, and no interest shall accrue for the period after such date.

                  Section 10.5 New York Law to Govern.

                  THIS INDENTURE SHALL, PURSUANT TO SECTION 5-1401 OF THE NEW
YORK GENERAL OBLIGATIONS LAW, BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK,
WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF (OTHER THAN SUCH
SECTION 5-1401).

                                       55

<PAGE>   60

                  Section 10.6 Consent to Jurisdiction.

                  The Issuer irrevocably consents and agrees, for the benefit of
the Holders from time to time of the Securities and the Trustee, that any civil
legal action, suit or proceeding against it with respect to its obligations,
liabilities or any other matter arising out of or in connection with this
Indenture or the Securities may be brought in the Supreme Court of New York, New
York County or the United States District Court for the Southern District of New
York and any appellate court from either thereof and, until amounts due and to
become due in respect of the Securities have been paid, hereby irrevocably
consents and submits to the non-exclusive jurisdiction of each such court in
personam, generally and unconditionally with respect to any legal action, suit
or proceeding for itself and in respect of its properties, assets and revenues
and agrees to file such consents with such authorities as may be required to
irrevocably evidence such agreement. The Issuer irrevocably and unconditionally
waives, to the fullest extent permitted by law, any objection which it may now
or hereafter have to the laying of venue of any of the aforesaid actions, suits
or proceedings arising out of or in connection with this Indenture brought in
the Supreme Court of New York, New York County or the United States District
Court for the Southern District of New York and any appellate court from either
thereof and hereby further irrevocably and unconditionally waives and agrees not
to plead or claim in any such court that any such action, suit or proceeding
brought in any such court has been brought in an inconvenient forum.

                  Section I.4  Counterparts.

                  This Indenture may be executed in any number of counterparts,
each of which shall be an original, but such counterparts shall together
constitute but one and the same agreement.

                  Section I.5  Effect of Headings.

                  The Article and Section Headings herein and the Table of
Contents are for convenience only and shall not affect the construction hereof.

                                       56
<PAGE>   61

                  IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed and their respective corporate seals to be
hereunto affixed and attested, all as of March 20, 2000.

                                            NRG ENERGY, INC.,
                                              as Issuer

                                            By: /s/ Brian B. Bird
                                                ----------------------------
                                                Name: Brian B. Bird
                                                Title:   Treasurer

Attest:

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

                                            THE BANK OF NEW YORK,
                                              as Trustee

                                            By: /s/ Ming J. Shiang
                                                ----------------------------
                                                Name: Ming J. Shiang
                                                Title:   Vice President

<PAGE>   62

                                                                       EXHIBIT A

                                NRG ENERGY, INC.
                      Reset Senior Notes Due March 15, 2020

No.                                                  pound sterling 160,000,000*
                                                                       CUSIP No.

          THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT") OR ANY STATE SECURITIES LAWS. NEITHER
THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, REGISTRATION.

          THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER,
SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE "RESALE
RESTRICTION TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH NRG, ENERGY, INC. (THE
"COMPANY") OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR
ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE COMPANY, (B) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT, (C) FOR SO LONG AS THE CERTIFICATES ARE ELIGIBLE FOR RESALE PURSUANT TO
RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT
TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT UPON THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO THE TRUSTEE AND
THE COMPANY OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT UPON THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO THE TRUSTEE AND THE
COMPANY, SUBJECT IN EACH OF THE FOREGOING CASES, TO A CERTIFICATE OF TRANSFER IN
THE FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY BEING COMPLETED AND
DELIVERED BY THE TRANSFEROR TO THE TRUSTEE.

-----------------------
         *        Reference is made to (i) Schedule A attached hereto with
                  respect to decreases and increases in the aggregate principal
                  amount of Securities evidenced by this certificate and (ii)
                  the other provisions of this Security providing for the
                  conversion to a US Dollar-denominated Security.

                                      A-1

<PAGE>   63

                                NRG ENERGY, INC.

                      Reset Senior Notes Due March 15, 2020

          NRG ENERGY, INC., a corporation duly organized and existing under the
laws of the State of Delaware (herein called the "Company", which term includes
any successor corporation under the Indenture hereinafter referred to), for
value received, hereby promises to pay to the bearer upon surrender hereof, the
principal sum of pound sterling 160,000,000 on March 15, 2020, and to pay
interest thereon at the rate or rates per annum described herein from March 15,
2000, or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, semi-annually on March 15 and September 15 in each
year, commencing September 15, 2000, to the Initial Reset Date and thereafter
subject to the terms and conditions set forth herein, at the interest rate or
rates determined by the Remarketing Agent in accordance with the procedures set
forth on the reverse hereof until the principal hereof is paid or made available
for payment. The interest so payable, and punctually paid or duly provided for,
on any Interest Payment Date will, as provided in such Indenture, be paid to the
bearer on such Interest Payment Date. Any such interest not so punctually paid
or duly provided for will forthwith cease to be payable to the bearer on such
Interest Payment Date and will be paid to the bearer hereof at the time of
payment of such Defaulted Interest or be paid at any time in any other lawful
manner not inconsistent with the requirements of any securities exchange on
which the Securities may be listed, and upon such notice as may be required by
such exchange, all as more fully provided in said Indenture.

          Capitalized terms that are not defined herein shall have the meanings
assigned to them in the Indenture.

          Unless a Conversion Event shall have occurred, the rate of interest
payable from time to time through the Initial Reset Date in respect of this
Security is 7.97%.

          The Interest Amount outstanding at the end of the relevant Interest
Accural Period shall be determined on the basis of a 360-day year consisting of
twelve 30-day months; provided however, that in the event of a Swap Termination
Event, other than a Swap Termination Event caused by a Conversion Event, an
Optional Tax Redemption, or the repurchase of 100% of the Securities pursuant to
a Change of Control, the Interest Amount shall be determined by (i) applying the
rate of interest to the principal amount of the outstanding Securities and (ii)
multiplying that amount by the actual number of days in such Interest Accrual
Period divided by 365 (or if such Interest Accrual Period ends after February 28
in a leap year, 366) expressed as a decimal and rounded upward if necessary to
the nearest 1/16th of 1%.

                                      A-3
<PAGE>   64

          Reference is hereby made to the further provisions of this Security
set forth on the reverse hereof, relating to the interest reset and remarketing
mechanics of this Security after the Initial Reset Date.

          The Trustee shall make Sterling-denominated payments on the Senior
Notes through a London-based account of the Trustee.

          All payments of principal and the Change of Control purchase price of,
and premium, if any, and interest in respect of this Security shall be made free
and clear of, and without withholding or deduction for or on account of, any
present or future taxes, duties, assessments or governmental charges of whatever
nature imposed, levied, collected, withheld or assessed by or within a Taxing
Jurisdiction or by or within any political subdivision thereof or any authority
therein or thereof having power to impose Gross-Up Taxes, unless such
withholding or deduction is required by law. In the event of any such
withholding or deduction, the Issuer shall pay to the Holder such Additional
Amounts in respect of such withholding or reduction as are necessary so that the
Holder receives the amount that would have been due in the absence of such
Additional Amounts, except that no such Additional Amounts shall be payable:

                           (i)           to, or to a Person on behalf of, a
                                         Holder who is liable for such Gross-Up
                                         Taxes in respect of this Security by
                                         reason of such Holder or the beneficial
                                         owner of this Security having some
                                         connection with the relevant Taxing
                                         Jurisdiction (including being a citizen
                                         or resident or national of, or carrying
                                         on a business or maintaining a
                                         permanent establishment in, or being
                                         physically present in, such Taxing
                                         Jurisdiction) other than the mere
                                         holding of this Security or the receipt
                                         of principal of, or premium, if any, or
                                         interest in respect of, this Security;

                           (ii)          to, or to a Person on behalf of, a
                                         Holder who presents this Security
                                         (where presentation is required) for
                                         payment more than 30 days after the
                                         Relevant Date except to the extent that
                                         the Holder would have been entitled to
                                         such Additional Amounts on presenting
                                         this Security for payment on the last
                                         day of such period of 30 days;

                           (iii)         to, or to a Person on behalf of, a
                                         Holder who would not be liable or
                                         subject to the withholding or deduction
                                         by making a declaration of nonresidence
                                         or similar claim for exemption to the
                                         relevant taxing authority; or

                           (iv)          in respect of any estate, asset,
                                         inheritance, gift, transfer or sales
                                         tax that is imposed or withheld.

                                      A-4
<PAGE>   65

              Such Additional Amounts will also not be payable where, had the
beneficial owner of the Security (or any interest therein) been the Holder of
the Security, such owner would not have been entitled to payment of Additional
Amounts by reason of any one or more of clauses (a) through (d) above. If the
Issuer shall determine that Additional Amounts will not be payable because of
the immediately preceding sentence, the Issuer will inform such Holder promptly
after making such determination setting forth the reason(s) therefor.

              References to the payment of principal and the Change of Control
purchase price of, and premium or interest in respect of, this Security shall be
deemed to include any Additional Amounts which may be payable as set forth in
the Indenture or in this Security.

              The Company shall furnish to the Trustee the official receipts (or
a certified copy of the official receipts) evidencing payment of the Gross-Up
Taxes. Copies of such receipts shall be made available to the Holder of this
Security upon request.

              All notices regarding the Securities shall be published in a
leading English language daily newspaper of general circulation in New York and
London.

              REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS
SECURITY SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

              Unless the certificate of authentication hereon has been executed
by the Trustee referred to on the reverse hereof by manual signature, this
Security shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

                                      A-5
<PAGE>   66

              IN WITNESS WHEREOF, the Company has caused this instrument to be
duly executed by an authorized signatory of the Company.

                                                NRG ENERGY, INC.

By:  _____________________________________
                                                        Authorized Officer

     Dated:

                          CERTIFICATE OF AUTHENTICATION

              This is one of the Securities issued under the Indenture described
herein.

                                THE BANK OF NEW YORK,
                                     as Trustee

                                     By:  ______________________________________
                                          Authorized Signatory

                                      A-6

<PAGE>   67

                          [Form of Reverse of Security]
              This Security is one of a duly authorized issue of securities of
the Company. The Securities are limited to the aggregate principal amount of
pound sterling 160,000,000, issued under the Indenture, dated as of March 15,
2000, between the Company and The Bank of New York, as the Trustee, to which
Indenture reference is hereby made for a statement of the respective rights,
limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered.

              Certain provisions with respect to the interest rate reset
procedures for the Securities after the Initial Reset Date set forth below are
contained in the Remarketing Agreement between the Company and Banc of America
Securities LLC, as the Remarketing Agent.

              In accordance with the procedures established in the Remarketing
Agreement and subject to Section 3.4 of the Indenture, the interest rate in
effect with respect to the Securities immediately prior to the Initial Reset
Date shall be reset on the Initial Reset Date to equal the Interest Rate to
Maturity, which shall be effective from and including the Initial Reset Date to
but excluding the final maturity of the Securities, unless the Company shall
exercise the Floating Rate Option in accordance with the provisions herein. If
the Company shall have so exercised the Floating Rate Option, then the Floating
Period Interest Rate shall be reset in accordance with the Remarketing Agreement
on the Reset Date corresponding to the Floating Rate Period Termination Date to
equal the Interest Rate to Maturity, which shall be effective from and including
such Reset Date to but excluding the final maturity of the Securities.

              During the period from and including the Fixed Rate Reset Date to
but excluding the final maturity of the Securities, interest on the Securities
shall accrue on the principal amount of the Securities at the Interest Rate to
Maturity and shall be payable semi-annually on each Interest Payment Date,
commencing with the first such Interest Payment Date following the Fixed Rate
Reset Date; provided, however, that, if any such Interest Payment Date is not a
Business Day, then payment of interest payable on such date will be made on the
next succeeding day which is a Business Day (and without any interest or other
payment in respect of any such delay). Interest on the Securities from the Fixed
Rate Reset Date shall be computed on the basis of a 360-day year consisting of
twelve 30-day months.

              In accordance with procedures established in the Remarketing
Agreement and subject to Section 3.4 of the Indenture, if the Company exercises
the Floating Rate Option no later than the fifth Business Day prior to the
Floating Rate Spread Determination Date by providing notice to the Trustee and
Remarketing Agent, then the Securities shall bear interest at the Floating
Period Interest Rate for each Floating Rate Reset Period in the Floating Rate
Period.

              During each Floating Rate Reset Period in the Floating Rate
Period, interest on the Securities shall accrue on the principal amount of the
Securities at the Floating Period Interest Rate for such Floating Rate Period
and shall be payable quarterly on each Interest

                                      A-7
<PAGE>   68

Payment Date, commencing with the first such Interest Payment Date following the
Initial Reset Date. The Interest Amount for such Floating Rate Reset Period
shall be determined by (A) applying the Floating Period Interest Rate for such
Floating Rate Reset Period to the Floating Rate Purchase Price and (B)
multiplying that amount by the actual number of days in such Floating Rate Reset
Period divided by 365 (or, if such Floating Rate Reset Period ends in a leap
year, 366) expressed as a decimal and rounded upward if necessary to the nearest
1/16th of 1%.

              If the Callholder shall have purchased the Securities pursuant to
the Call Option Agreement and the Company shall have elected the Floating Rate
Option, the Securities shall be automatically tendered, or deemed tendered, by
the Holders thereof to the Remarketing Agent for purchase on the Floating Rate
Period Termination Date. On the Reset Date corresponding to the Floating Rate
Period Termination Date, the interest rate on the Securities shall be reset to
equal the Interest Rate to Maturity in accordance with, and the Securities shall
be remarketed pursuant to, the Remarketing Agreement.

              The purchase price for the Securities tendered pursuant to the
paragraph above shall be equal to 100% of the Floating Rate Purchase Price plus
accrued and unpaid interest, if any, thereon to but excluding the Floating Rate
Period Termination Date. If for any reason the Remarketing Agent does not
purchase all of the Securities on the Floating Rate Period Termination Date, the
Company shall be required to redeem the Securities at a redemption price equal
100% of the Floating Rate Purchase Price plus accrued and unpaid interest, if
any, thereon to but excluding the Floating Rate Period Termination Date. If the
Remarketing Agent elects to purchase the Securities, such obligation of the
Remarketing Agent is subject to the conditions set forth in the Remarketing
Agreement.

              In the event that the Callholder (i) has not given notice on or
before February 15, 2005 of its intention to exercise the call option under the
Call Option Agreement or (ii) fails to pay on or before the Business Day next
preceding the Initial Reset Date the call price required under the Call Option
Agreement, the Company shall redeem on the Initial Reset Date, in whole but not
in part, the Securities at a redemption price equal to 100% of the aggregate
principal amount of the Securities plus accrued and unpaid interest thereon to
but excluding the Initial Reset Date, upon written notice by 5:00 p.m. London
time on the Business Day next preceding Initial Reset Date from the Trustee, as
holder of the Securities.

              Any such written notice given by the Trustee, as holder of the
Securities, shall be irrevocable; provided, however, that if prior to the Early
Redemption Date an Event of Default shall have occurred and be continuing, such
holder, at its option, may elect by written notice to the Company, to withdraw
such instruction and instead to declare the Securities to be due and payable
pursuant to Section 5.1 of the Indenture.

              If the Callholder shall have purchased the Securities pursuant to
the Call Option Agreement and the Company shall have elected the Floating Rate
Option, the Company shall be required to redeem the Securities, in whole but not
in part, on any Reset Date following the

                                      A-8
<PAGE>   69

Initial Reset Date at a redemption price equal to the Floating Rate Purchase
Price plus accrued and unpaid interest, if any, thereon to but excluding such
Reset Date in the event that (i) the Remarketing Agent for any reason does not
notify the Company of the Floating Period Interest Rate for the Floating Rate
Reset Period beginning on such Reset Date by 4:00 p.m. (London time) on such
Reset Date or of the Interest Rate to Maturity by 4:00 p.m., (London time) on
the Fixed Rate Determination Date, as applicable, (ii) prior to any such Reset
Date, the Remarketing Agent resigns and no successor has been appointed on or
before such Reset Date or the Fixed Rate Determination Date, as applicable,
(iii) the Remarketing Agent elects to terminate the Remarketing Agreement in
accordance with its terms, (iv) the Remarketing Agent for any reason does not
elect (by notice to the Company and the Trustee not later than the Fixed Rate
Determination Date) to purchase the Securities for remarketing on the Floating
Rate Period Termination Date, (v) the Remarketing Agent for any reason does not
deliver the purchase price of the Securities to or through DTC on or before the
Floating Rate Period Termination Date or (vi) the Company for any reason fails
to redeem the Securities from the Remarketing Agent as provided in the
Remarketing Agreement following the Company's election to effect such redemption
as set forth in paragraph (c) of Section 3.6 of the Indenture.

              If the Callholder shall have purchased the Securities pursuant to
the Call Option Agreement and the Company shall have elected the Floating Rate
Option, the Company shall notify the Callholder, the Remarketing Agent and the
Trustee, not later than the Business Day immediately preceding the Floating Rate
Period Termination Date, if the Company irrevocably elects to exercise its right
to redeem the Senior Notes, in whole but not in part, from the Remarketing Agent
on the Floating Rate Period Termination Date. If the Company elects to redeem
the Securities, the Company shall redeem the Securities in whole at a redemption
price equal to the Floating Rate Purchase Price plus accrued and unpaid
interest, if any thereon to but excluding the Floating Rate Period Termination
Date.

              The tender and settlement procedures set forth above, including
provisions for payment by purchasers of the Securities to any remarketing agent
or for payment of the Securities, may be modified to the extent required to
facilitate the tender and remarketing of the Securities at the time of the
remarketing. In addition, the Remarketing Agent may, without the consent of
holders of the Securities, modify the tender and settlement procedures specified
above in order to facilitate the tender and settlement process.

              Unless the Company defaults in payment of the redemption price,
from and after a redemption date the Securities or portions thereof called for
redemption will cease to bear interest, and the Holders thereof will have no
right in respect of such Securities except the right to receive the redemption
price thereof.

              The Indenture contains provisions for defeasance of (a) the entire
indebtedness of the Securities and (b) certain restrictive covenants upon
compliance by the Company with certain conditions set forth therein.

                                      A-9
<PAGE>   70

              If an Event of Default with respect to the Securities shall occur
and be continuing, the principal of the Securities may be declared due and
payable in the manner and with the effect provided in the Indenture. At any time
after such declaration of acceleration with respect to the Securities has been
made, but before a judgment or decree for payment of money has been obtained by
the Trustee as provided in the Indenture, if all Events of Default with respect
to the Securities have been cured or waived (other than the non-payment of
principal of the Securities which has become due solely by reason of such
declaration of acceleration), then the Holders of a majority in aggregate
principal amount of Securities then outstanding may waive all defaults, as
provided in the Indenture, and rescind and annul such declaration of
acceleration and its consequences.

              This Security is subject to redemption in whole but not in part
upon the giving of notice as provided in the Indenture, at a price equal to the
outstanding principal amount thereof, together with Additional Amounts, if any,
and accrued interest, if any, to the Redemption Date if, (a) the Company
satisfies the Trustee prior to the giving of such notice that it has or will
become obligated to pay Additional Amounts as a result of any change in, or
amendment to, the laws or regulations of a Taxing Jurisdiction, or any change in
the application or interpretation of such laws or regulations, which change or
amendment becomes effective on or after March 15, 2000, and (b) such obligation
cannot be avoided by the Company taking reasonable measures available to it,
subject, as provided in the Indenture, to the delivery by the Company of an
Officers' Certificate stating that such obligation to pay Additional Amounts
cannot be avoided by the Company taking reasonable measures available to it.

              The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the Indenture or any
supplemental indenture or the rights and obligations of the Company and the
rights of the Holders of the Securities to be affected under the Indenture at
any time by the Company and the Trustee with the consent of the Holders of a
majority in aggregate principal amount of the Securities at the time Outstanding
to be affected (voting as a class). The Indenture also contains provisions
permitting the Holders of specified percentages in principal amount of the
Securities at the time Outstanding, on behalf of the Holders of all Securities
of such series, to waive compliance by the Company with certain provisions of
the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or
in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security.

              No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of, and
premium, if any, and interest in respect of this Security at the times, place
and rate, and in the coin or currency, herein prescribed.

                                      A-10
<PAGE>   71

              In the event of a Change of Control, the Issuer has the
obligation, subject to certain conditions, (i) prior to the Initial Reset Date,
to offer to repurchase the Securities at a purchase price in Sterling equal to
100% of the principal amount thereof plus accrued interest, if any, to the date
of repurchase, plus a payment in U.S. Dollars equal to 1% of the principal
amount of Certificates to be repurchased pursuant to a Change of Control Offer
in accordance with the Trust Agreement; (ii) after the Initial Reset Date, to
repurchase the Securities at 101% of the principal amount thereof plus accrued
interest to the date of repurchase in accordance with the procedures set forth
in the Indenture; and (iii) prior to the Initial Reset Date, but after a
Conversion Event, to offer to repurchase the Securities at 101% of the principal
amount thereof plus accrued interest to the date of repurchase in accordance
with the procedures set forth in the Indenture. As further described in the
Indenture, a Change of Control will not be deemed to have occurred if, after
giving effect thereto, the Securities are rated Investment Grade.

              The bearer of this Security shall be treated as the owner of it
for all purposes, subject to the terms of the Indenture. As provided in the
Indenture and subject to certain limitations therein set forth, Securities are
exchangeable for a like aggregate principal amount of Securities and of like
tenor of a different authorized denomination, as requested by the Holder
surrendering the same.

              No service charge shall be made for any such exchange, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

              When a successor assumes all the obligations of its predecessor
under the Securities and the Indenture in accordance with the terms of the
Indenture, the predecessor will be released from those obligations.

              The Trustee under the Indenture, in its individual or any other
capacity, may become the owner or pledgee of Securities and may otherwise deal
with the Company or its Affiliates as if it were not the Trustee.

              No stockholder, director, officer, employee, incorporator or
Affiliate of the Company shall have any liability for any obligation of the
Company under the Securities or the Indenture or for any claim based on, in
respect of or by reason of, such obligations or their creation. Each Holder of
the Securities by accepting the Securities waives and releases all such
liability. The waiver and release are part of the consideration for the issuance
of the Securities.

              This Security shall not be valid until the Trustee or
authenticating agent signs the certificate of authentication on this Security.

              Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Company will cause CUSIP numbers
to be printed on the Securities as a convenience to the Holders of the
Securities. No representation is made as to the

                                      A-11

<PAGE>   72
accuracy of such numbers as
printed on the Securities and reliance may be placed only on the other
identification numbers printed hereon.

              This Security shall be governed by and construed in accordance
with the law of the State of New York.

                                      A-12

<PAGE>   73

                                                                      SCHEDULE A

                             SCHEDULE OF ADJUSTMENTS

              The initial aggregate principal amount of Securities evidenced by
the Certificate to which this Schedule is attached is ___________. The notations
on the following table evidence decreases and increases in the aggregate
principal amount of Securities evidenced by such Certificate.

  Date of      Decrease in      Increase in          Aggregate       Notation by
 Adjustment     Aggregate        Aggregate           Principal        Security
 ----------     Principal       Principal Amount     Amount of        Registrar
               Securities       of Securities       Securities        ---------
               ----------       -------------     Remaining After
                                                  Such Decrease or
                                                      Increase
                                                      --------

                                      A-13
<PAGE>   74

                               FORM OF ASSIGNMENT

I or we assign and transfer this Security to:

(Print or type name, address and zip code of assignee)

(Insert assignee's social security or tax I.D. number)

and irrevocably appoint:

Agent to transfer this Security on the books of the Issuer. The Agent may
substitute another to act for him.

Date:                            Your Signature:

  (Sign exactly as your name appears exactly on the other side of this Security)

                                                   *Signature
                                                   Guarantee:

                                      A-14
<PAGE>   75

                   FORM OF OPTION OF HOLDER TO ELECT PURCHASE

              If you wish to have this Security purchased by the Issuer pursuant
to Section 4.10 of the Indenture, check the Box: [insert [_] ].

                                      A-15
<PAGE>   76

              If you wish to have a portion of this Security purchased by the
Issuer pursuant to Section 4.10 of the Indenture, state the amount (in original
principal amount):

                                   $-----------

                                   Your Signature:
Date:

          (Sign exactly as your name appears on the other side of this Security)

                              *Signature Guarantee

                                                            ARTICLE 11

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

    *Signatures must be guaranteed by an "eligible guarantor institution"
meeting the requirements of the Registrar, which requirements include membership
or participation in STAMP or such other "signature guarantee program" as may be
determined by the Registrar in addition to, or in substitution for, STAMP, all
in accordance with the Indenture and the Securities Exchange Act of 1934.

                                      A-16

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