Document:

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                                                                    Exhibit 4.9

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                                     FORM OF

                                PLEDGE AGREEMENT

                                      AMONG

                            SIERRA PACIFIC RESOURCES

                                       AND

              WELLS FARGO BANK MINNESOTA, N.A., AS COLLATERAL AGENT

                                       AND

                        WELLS FARGO BANK MINNESOTA, N.A.,
                           AS SECURITIES INTERMEDIARY

                                       AND

                THE BANK OF NEW YORK, AS PURCHASE CONTRACT AGENT

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

                          DATED AS OF NOVEMBER __, 2001

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                                                 TABLE OF CONTENTS

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                                                                                                               PAGE
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Section 1.        Definitions.....................................................................................2

Section 2.        Pledge
         Section 2.1       Pledge.................................................................................6
         Section 2.2       Control; Financing Statement...........................................................6
         Section 2.3       Termination............................................................................7

Section 3.        Distributions on Pledged Collateral
         Section 3.1       Income Distributions...................................................................7
         Section 3.2       Principal Payments Following Termination Event.........................................7
         Section 3.3       Principal Payments Prior to or On Purchase Contract Settlement Date....................7
         Section 3.4       Payments to Purchase Contract Agent....................................................8
         Section 3.5       Assets Not Properly Released...........................................................8

Section 4.        Control
         Section 4.1       Establishment of Collateral Account....................................................9
         Section 4.2       Treatment as Financial Assets..........................................................9
         Section 4.3       Sole Control by Collateral Agent.......................................................9
         Section 4.4       Securities Intermediary's Location....................................................10
         Section 4.5       No Other Claims.......................................................................10
         Section 4.6       Investment and Release................................................................10
         Section 4.7       Statements and Confirmations..........................................................10
         Section 4.8       Tax Allocations.......................................................................10
         Section 4.9       No Other Agreements...................................................................10
         Section 4.10      Powers Coupled With An Interest.......................................................11

Section 5.        Initial Deposit; Creation of Treasury PIES; and Recreation of Corporate PIES; Other
         Section 5.1       Initial Deposit of Senior Notes.......................................................11
         Section 5.2       Creation of Treasury PIES by Substitution of Treasury Securities......................11
         Section 5.3       Recreation of Corporate PIES..........................................................12
         Section 5.4       Termination Event.....................................................................13
         Section 5.5       Cash Settlement.......................................................................14
         Section 5.6       Early Settlement; Merger Early Settlement.............................................16
         Section 5.7       Optional Remarketing..................................................................16
         Section 5.8       Application of Proceeds in Settlement; Remarketing....................................17

Section 6.        Voting Rights..................................................................................20

Section 7.        Rights and Remedies
         Section 7.1       Rights and Remedies of the Collateral Agent...........................................20
         Section 7.2       Substitutions.........................................................................21

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Section 8.        Representations and Warranties; Covenants
         Section 8.1       Representations and Warranties........................................................22
         Section 8.2       Covenants.............................................................................22

Section 9.        The Collateral Agent and the Securities Intermediary
         Section 9.1       Appointment, Powers and Immunities....................................................23
         Section 9.2       Instructions of the Company...........................................................24
         Section 9.3       Reliance by Collateral Agent and Securities Intermediary..............................24
         Section 9.4       Rights in Other Capacities............................................................24
         Section 9.5       Non-Reliance on Collateral Agent and Securities Intermediary..........................25
         Section 9.6       Compensation and Indemnity............................................................25
         Section 9.7       Failure to Act........................................................................25
         Section 9.8       Resignation of Collateral Agent and Securities Intermediary...........................26
         Section 9.9       Right to Appoint Agent or Advisor.....................................................28
         Section 9.10      Survival............................................................................. 28
         Section 9.11      Exculpation...........................................................................28

Section 10.       Amendment
         Section 10.1      Amendment Without Consent of Holders..................................................28
         Section 10.2      Amendment with Consent of Holders.....................................................29
         Section 10.3      Execution of Amendments...............................................................29
         Section 10.4      Effect of Amendments..................................................................30
         Section 10.5      Reference to Amendments...............................................................30

Section 11.       Merger, Consolidation, Sale or Conveyance
         Section 11.1      When Company May Merge, Etc...........................................................30
         Section 11.2      Successor Corporation Substituted.....................................................30
         Section 11.3      Limitation............................................................................31

Section 12.       Miscellaneous
         Section 12.1      No Waiver.............................................................................31
         Section 12.2      Governing Law; Jurisdiction and Venue.................................................31
         Section 12.3      Notices  32
         Section 12.4      Successors and Assigns................................................................33
         Section 12.5      Counterparts..........................................................................33
         Section 12.6      Effect of Headings and Table of Contents..............................................33
         Section 12.7      Severability..........................................................................33
         Section 12.8      Expenses, etc.........................................................................33
         Section 12.9      Security Interest Absolute............................................................34

                                                     EXHIBITS

EXHIBIT A                  Instruction from Purchase Contract Agent to Collateral Agent
                           (Creation of Treasury PIES)..........................................................A-1
EXHIBIT B                  Instruction from Collateral Agent to Securities Intermediary
                           (Creation of Treasury PIES)..........................................................B-1

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EXHIBIT C                  Instruction from Purchase Contract Agent to Collateral Agent
                           (Recreation of Corporate PIES).......................................................C-1
EXHIBIT D                  Instruction from Collateral Agent to Securities Intermediary
                           (Recreation of Corporate PIES).......................................................D-1
EXHIBIT E                  Notice of Cash Settlement from the Securities Intermediary to the
                           Purchase Contract Agent..............................................................E-1
EXHIBIT F                  Instruction from Holder of Separated Senior Notes to Collateral Agent Regarding
                           Remarketing..........................................................................F-1
EXHIBIT G                  Instruction from Purchase Contract Agent to Collateral Agent.........................G-1
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         PLEDGE AGREEMENT, dated as of November __, 2001, among SIERRA PACIFIC
RESOURCES, a Nevada corporation (the "Company"), WELLS FARGO BANK MINNESOTA,
N.A., a national banking association, not individually but solely as collateral
agent (in such capacity, together with its successors in such capacity, the
"Collateral Agent"), WELLS FARGO BANK MINNESOTA, N.A., not individually but
solely in its capacity as "Securities Intermediary" (in such capacity, together
with its successors in such capacity, the "Securities Intermediary") as defined
in Section 8-102(a)(14) of the UCC (as hereinafter defined) with respect to the
Collateral Account (as hereinafter defined), and THE BANK OF NEW YORK, a New
York banking corporation, not individually but solely as purchase contract agent
and as attorney-in-fact of the Holders from time to time of the PIES (in such
capacity, together with its successors in such capacity, the "Purchase Contract
Agent") under the Purchase Contract Agreement (as hereinafter defined).

                                    RECITALS

         The Company and the Purchase Contract Agent are parties to the Purchase
Contract Agreement dated as of the date hereof (as amended, modified or
supplemented from time to time in accordance with the terms thereof, the
"Purchase Contract Agreement"), pursuant to which there are being issued
6,000,000 PIES (or up to 6,900,000, if the Underwriters' over-allotment option
pursuant to the Underwriting Agreement is exercised in full) (the "PIES"), all
of which will initially be Corporate PIES.

         Each Corporate PIES consists of a unit comprised of (a) one stock
purchase contract (a "Purchase Contract") under which the Holder will purchase
from the Company and the Company will be required to sell to such Holder not
later than the Purchase Contract Settlement Date, for an amount equal to $50
(the "Stated Amount"), a number of shares of Common Stock of the Company equal
to the Settlement Rate or Early Settlement Rate, as the case may be, then in
effect and (b) either beneficial ownership of (1) a Senior Note or (2) following
the Remarketing of the Senior Note in accordance with the Purchase Contract
Agreement and the Remarketing Agreement, the Treasury Portfolio Interest,
subject to the termination or settlement of the purchase contracts.

         In accordance with the terms of the Purchase Contract Agreement, a
Holder of Corporate PIES may separate the Senior Notes from the related Purchase
Contracts by substituting on or before the Election Date, for such Senior Notes,
Treasury Securities that will pay on maturity in the aggregate an amount equal
to the aggregate Stated Amount of such Corporate PIES. Upon such substitution,
the Corporate PIES will become Treasury PIES in accordance with the terms of the
Purchase Contract Agreement. Each Treasury PIES will be comprised of (a) a
Purchase Contract under which the holder will purchase from the Company not
later than the Purchase Contract Settlement Date, for the Stated Amount, a
number of shares of Common Stock of the Company equal to the Settlement Rate or
Early Settlement Rate, as the case may be, then in effect, and (b) a 1/20
undivided beneficial interest in a Treasury Security, subject to the termination
or settlement of the Purchase Contracts.

         Pursuant to the terms of the Purchase Contract Agreement and the
Purchase Contracts, the Holders, from time to time, of the PIES have irrevocably
authorized the Purchase Contract Agent, as attorney-in-fact of such Holders,
among other things, to execute and deliver this

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                                                                               2

Agreement on behalf of such Holders and to grant the pledge provided herein of
the Collateral Account to secure the Obligations.

         Accordingly, the Company, the Collateral Agent, the Securities
Intermediary and the Purchase Contract Agent, on its own behalf and as
attorney-in-fact of the Holders from time to time of the PIES, agree as follows:

Section 1.        DEFINITIONS.

                  For all purposes of this Agreement, except as otherwise
expressly provided or unless the context otherwise requires:

                  (a) the terms defined in this Section have the meanings
assigned to them in this Section and include the plural as well as the singular;

                  (b) the words "herein," "hereof" and "hereunder" and other
words of similar import refer to this Agreement as a whole and not to any
particular Section, Exhibit or other section;

                  (c) the following terms which are defined in the UCC shall
have the meanings set forth therein: "certificated security," "control,"
"financial asset," "entitlement order," "securities account" and "security
entitlement";

                  (d) capitalized terms used and not defined in this Agreement
shall have the meanings set forth in the Purchase Contract Agreement; and

                  (e) the following terms have the meanings given to them in
this Section 1(e):

         "Agreement" means this Pledge Agreement, as the same may be amended,
modified or supplemented from time to time in accordance with the terms thereof.

         "Cash" means any coin or currency of the United States as at the time
shall be legal tender for payment of public and private debts.

         "Collateral" means the collective reference to:

                  (1) the Collateral Account;

                  (2) all investment property and other financial assets from
         time to time credited to the Collateral Account, including, without
         limitation, (A) any Senior Notes or any Treasury Portfolio Interest
         which are then a component of the Corporate PIES and, in each case,
         security entitlements relating thereto, (B) any Treasury Securities and
         security entitlements relating thereto delivered from time to time upon
         establishment of Treasury PIES in accordance with Section 5.2 hereof
         and (C) payments made by Holders pursuant to Section 5.5 hereof;

                  (3) all Proceeds of any of the foregoing (whether such
         Proceeds arise before or after the commencement of any proceeding under
         any applicable bankruptcy, insolvency or other similar law, by or
         against the pledgor or with respect to the pledgor); and

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                  (4) all powers and rights now owned or hereafter acquired
         under or with respect to the Collateral Account.

         "Collateral Account" means the Securities Account No. _________
entitled "Wells Fargo Bank Minnesota, N.A., as Collateral Agent, Securities
Account (Sierra Pacific Resources)" maintained by the Securities Intermediary
for the Purchase Contract Agent on behalf of and as attorney-in-fact for the
Holders.

         "Collateral Agent" means the Person named as the "Collateral Agent" in
the first paragraph of this instrument until a successor shall have become such
in accordance with the terms of this Agreement, and thereafter "Collateral
Agent" shall mean such successor.

         "Collateral Substitution" means the substitution of Treasury Securities
for a Holder's Senior Notes, pursuant to Section 3.13 of the Purchase Contract
Agreement and Section 5.2 of the Pledge Agreement, and the substitution of a
Holder's Senior Notes for Treasury Securities, pursuant to Section 3.14 of the
Purchase Contract Agreement and Section 5.3 of the Pledge Agreement.

         "Company" means the Person named as the "Company" in the first
paragraph of this instrument until a successor shall have become such in
accordance with the terms of this Agreement, and thereafter "Company" shall mean
such successor.

         "Final Remarketing" has the meaning set forth in the Remarketing
Agreement.

         "Final Remarketing Date" has the meaning set forth in the Remarketing
Agreement.

         "Initial Remarketing" has the meaning set forth in the Remarketing
Agreement.

         "Initial Remarketing Date" has the meaning set forth in Remarketing
Agreement.

         "Obligations" means, with respect to each Holder, the collective
reference to all obligations and liabilities of such Holder under such Holder's
Purchase Contract and this Agreement or any other document made, delivered or
given in connection herewith or therewith, in each case whether on account of
principal, interest (including, without limitation, interest accruing before and
after the filing of any petition in bankruptcy, or the commencement of any
insolvency, reorganization or like proceeding, relating to such Holder, whether
or not a claim for post-filing or post-petition interest is allowed in such
proceeding), fees, indemnities, costs, expenses or otherwise (including, without
limitation, all fees and disbursements of counsel to the Company or the
Collateral Agent or the Securities Intermediary that are required to be paid by
the Holder pursuant to the terms of any of the foregoing agreements).

         "Permitted Investments" means any one of the following which shall
mature not later than the Purchase Contract Settlement Date:

                  (1) any evidence of indebtedness with an original maturity of
         365 days or less issued, or directly and fully guaranteed or insured,
         by the United States of America or any agency or instrumentality
         thereof (provided that the full faith and credit of the United States
         of America is pledged in support of the timely payment thereof or such
         indebtedness constitutes a general obligation of it);

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                                                                               4

                  (2) deposits, certificates of deposit or acceptances with an
         original maturity of 365 days or less of any institution which is a
         member of the Federal Reserve System having combined capital and
         surplus and undivided profits of not less than $200,000,000 at the time
         of deposit, which may include the Collateral Agent or any of its
         affiliates;

                  (3) investments with an original maturity of 365 days or less
         of any Person that are fully and unconditionally guaranteed by a bank
         referred to in clause (2);

                  (4) repurchase agreements and reverse repurchase agreements
         relating to marketable direct obligations issued or unconditionally
         guaranteed by the United States Government or issued by any agency
         thereof and backed as to timely payment by the full faith and credit of
         the United States Government;

                  (5) investments in commercial paper, other than commercial
         paper issued by the Company or its affiliates, of any corporation
         incorporated under the laws of the United States or any State thereof,
         which commercial paper has a rating at the time of purchase at least
         equal to "A-1" by Standard & Poor's Ratings Services, Inc. ("S&P") or
         at least equal to "P-1" by Moody's Investors Service, Inc. ("Moody's");
         and

                  (6) investments in money market funds registered under the
         Investment Company Act of 1940, as amended, rated in the highest
         applicable rating category by S&P or Moody's, which may include such
         money market funds offered, administered or serviced by the Collateral
         Agent or any of its affiliates.

         "PIES" has the meaning specified in the paragraph preceding the
recitals of this Agreement.

         "Pledge" means the lien and security interest created by this
Agreement.

         "Pledged Senior Notes" means the Senior Notes and security entitlements
with respect thereto from time to time credited to the Collateral Account and
not then released from the Pledge.

         "Pledged Treasury Portfolio Interest" means the Treasury Portfolio
Interest and security entitlements with respect thereto from time to time
credited to the Collateral Account and not then released from the Pledge.

         "Pledged Treasury Securities" means Treasury Securities and security
entitlements with respect thereto from time to time credited to the Collateral
Account and not then released from the Pledge.

         "Proceeds" has the meaning ascribed thereto in the UCC and includes,
without limitation, all interest, dividends, Cash, instruments, securities,
financial assets (as defined in ss. 8-102(a)(9) of the UCC) and other property
received, receivable or otherwise distributed upon the sale, exchange,
collection or disposition of any financial assets from time to time held in the
Collateral Account.

         "Purchase Contract Agent" means the Person named as the "Purchase
Contract Agent" in the first paragraph of this instrument until a successor
shall have become such in accordance

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                                                                               5

with the terms of the Purchase Contract Agreement, and thereafter "Purchase
Contract Agent" shall mean such successor.

         "Purchase Contract Agreement" has the meaning specified in the
paragraph preceding the recitals of this Agreement.

         "Purchase Contract Settlement Date" means November __, 2005, which is
the fourth anniversary of the issuance of the PIES under the Purchase Contract
Agreement.

         "Remarketing" means the remarketing of the Remarketing Senior Notes
pursuant to the Remarketing Procedures.

         "Remarketing Date" has the meaning set forth in the Purchase Contract
Agreement.

         "Remarketing Fee" has the meaning set forth in Section 5.8(a).

         "Remarketing Procedures" means, collectively, the procedures and
requirements relating to the Remarketing and the determination of the Reset Rate
as set forth in the Indenture, the Purchase Contract Agreement, this Agreement
and the Remarketing Agreement.

         "Remarketing Senior Notes" has the meaning set forth in Section 5.8(a).

         "Remarketing Settlement Date" has the meaning set forth in Section
5.8(a).

         "Reset Rate" has the meaning set forth in the Indenture.

         "Securities Intermediary" means the Person named as the "Securities
Intermediary" in the first paragraph of this instrument until a successor shall
have become such in accordance with the terms of this Agreement, and thereafter
"Securities Intermediary" shall mean such successor.

         "Separated Senior Notes" means any Senior Notes that are not Pledged
Senior Notes.

         "Stated Amount" has the meaning specified in the paragraph preceding
the recitals of this Agreement.

         "Subsequent Remarketing" has the meaning specified in the Remarketing
Agreement.

         "Subsequent Remarketing Date" has the meaning specified in the
Remarketing Agreement.

         "Successful Final Remarketing" has the meaning set forth in Section
5.8(b).

         "Successful Initial Remarketing" has the meaning set forth in Section
5.8(a).

         "Successful Remarketing" has the meaning specified in the Remarketing
Agreement.

         "Successful Subsequent Remarketing" has the meaning set forth in
Section 5.8(a).

         "TRADES" means the Treasury/Reserve Automated Debt Entry System
maintained by the Federal Reserve Bank of New York pursuant to the TRADES
Regulations.

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                                                                               6

         "TRADES Regulations" means the regulations of the United States
Department of the Treasury, published at 31 C.F.R. Part 357, an amended from
time to time. Unless otherwise defined herein, all terms defined in the TRADES
Regulations are used herein as therein defined.

         "Transfer" means:

                  (1) in the case of certificated securities in registered form,
         delivery as provided in ss. 8-301(a) of the UCC, indorsed to the
         transferee or in blank by an effective indorsement

                  (2) in the case of Treasury Securities, registration of the
         transferee as the owner of such Treasury Securities on TRADES; and

                  (3) in the case of security entitlements, including, without
         limitation, security entitlements with respect to Treasury Securities,
         a securities intermediary indicating by book entry that such security
         entitlement has been credited to the transferee's securities account.

         "Treasury Security" means a zero-coupon U.S. Treasury Security that has
a principal amount at maturity of $1,000 and matures on or prior to the Business
Day prior to the Purchase Contract Settlement Date.

         "UCC" means the Uniform Commercial Code as in effect in the State of
New York from time to time.

         "Value" means, with respect to any item of Collateral on any date, as
to (i) Cash, the face amount thereof, (ii) Senior Notes, the aggregate principal
amount thereof due at maturity and (iii) Treasury Securities, the aggregate
principal amount thereof due at maturity and (iv) Treasury Portfolio Interest,
the aggregate principal amount thereof due at maturity.

Section 2. PLEDGE.

         SECTION 2.1 PLEDGE.

                  Each Holder, acting through the Purchase Contract Agent as
such Holder's attorney-in-fact, hereby pledges and grants to the Collateral
Agent, as agent of and for the benefit of the Company, a continuing first
priority security interest in and to, and a lien upon and right of set off
against, all of such Holder's right, title and interest in and to the Collateral
to secure the prompt and complete payment and performance when due (whether at
stated maturity, by acceleration or otherwise) of the Obligations. The
Collateral Agent shall have all of the rights, remedies and recourses with
respect to the Collateral afforded a secured party by the UCC, in addition to,
and not in limitation of, the other rights, remedies and recourses afforded to
the Collateral Agent by this Agreement.

         SECTION 2.2 CONTROL; FINANCING STATEMENT.

                  (a) The Collateral Agent shall have control of the Collateral
Account pursuant to the provisions of Section 4.3 of this Agreement.

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                  (b) On the date of initial issuance of the PIES, the Company
shall file in [the Office of the Secretary of State of the State of New York], a
financing statement signed by the Purchase Contract Agent, as attorney-in-fact
for the Holders, as debtors, and the Collateral Agent, as the secured party,
describing the Collateral.

         SECTION 2.3 TERMINATION.

                  As to each Holder, this Agreement and the Pledge created
hereby shall terminate upon the satisfaction in full of such Holder's
Obligations. Upon satisfaction in full of such Holder's Obligations, the
Securities Intermediary shall, pursuant to written instructions received from
the Purchase Contract Agent, Transfer any remaining Collateral to the Purchase
Contract Agent for distribution to such Holder in accordance with its interest,
free and clear of any lien, pledge or security interest created hereby.

Section 3. DISTRIBUTIONS ON PLEDGED COLLATERAL.

         SECTION 3.1 INCOME DISTRIBUTIONS.

                  All income distributions, including interest payments received
by the Securities Intermediary or the Collateral Agent on account of the Pledged
Senior Notes, the Pledged Treasury Portfolio Interest or Permitted Investments
from time to time held in the Collateral Account shall be distributed to the
Purchase Contract Agent for the benefit of the applicable Holders in whose names
the Corporate PIES or Treasury PIES are registered at the close of business on
the Record Date as specified in the Purchase Contract Agreement preceding the
date of such distribution as provided in the Purchase Contract Agreement.
Notwithstanding the foregoing, income distributions, including interest payments
received by the Securities Intermediary or the Collateral Agent on account of
the Treasury Portfolio Interest shall not exceed the Treasury Portfolio Return.

         SECTION 3.2 PRINCIPAL PAYMENTS FOLLOWING TERMINATION EVENT.

                  All payments received by the Collateral Agent or the
Securities Intermediary following a Termination Event with respect to (1) the
Pledged Senior Notes or security entitlement with respect thereto, (2) the
Pledged Treasury Portfolio Interest or security entitlement with respect thereto
or (3) the Pledged Treasury Securities or security entitlement with respect
thereto shall, in each case, be distributed to the Purchase Contract Agent for
the benefit of the applicable Holders in whose names the Corporate PIES or
Treasury PIES are registered at the close of business on the Record Date
preceding the date of such distribution for distribution to such Holders in
accordance with their respective interests.

         SECTION 3.3 PRINCIPAL PAYMENTS PRIOR TO OR ON PURCHASE CONTRACT
SETTLEMENT DATE.

                  (a) Except as provided in clause 3.3(b) below, if the
Securities Intermediary and Collateral Agent have not received notice of a
Termination Event, all payments received by the Collateral Agent or the
Securities Intermediary of (1) the principal amount with respect to the
Pledged Senior Notes or security entitlement with respect thereto (2) the
principal amount with respect to the Pledged Treasury Portfolio Interest or
security entitlement with respect thereto or (3) the principal amount with
respect to Pledged Treasury Securities or security entitlement with

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respect thereto, shall be held and invested at the written direction of the
Company in Permitted Investments until the Purchase Contract Settlement Date
and on the Purchase Contract Settlement Date distributed to the Company as
provided in Section 5.8 hereof. Any balance remaining in the Collateral
Account shall be distributed to the Purchase Contract Agent for the benefit
of the applicable Holders for distribution to such Holders in whose names the
Corporate PIES or Treasury PIES are registered at the close of business on
the Record Date (as specified in the Purchase Contract Agreement) immediately
preceding the date of such distribution in accordance with their respective
interests. Upon the request of the Securities Intermediary or the Collateral
Agent, as applicable, the Company shall instruct the Securities Intermediary
or the Collateral Agent, as applicable, as to the type of Permitted
Investments in which any payments made under this Section shall be invested,
provided, however, that if the Company fails to deliver such instructions by
10:30 a.m. (New York City time), the Securities Intermediary or the
Collateral Agent, as applicable, shall invest such payments in the Permitted
Investments described in clause 6 of the definition of Permitted Investments.

                  (b) All payments received by the Collateral Agent or the
Securities Intermediary of (1) the principal amount with respect to the Pledged
Senior Notes or security entitlement with respect thereto (2) the principal
amount with respect to the Pledged Treasury Portfolio Interest or security
entitlement with respect thereto or (3) the principal amount of Pledged Treasury
Securities or security entitlement with respect thereto that, in each case, have
been released from the Pledge shall be distributed to the Purchase Contract
Agent, for the benefit of the Holders, to be distributed to such Holders in
whose names the Corporate PIES or Treasury PIES are registered at the close of
business on the Record Date (as specified in the Purchase Contract Agreement)
immediately preceding the date of such distribution in accordance with their
respective interests.

         SECTION 3.4 PAYMENTS TO PURCHASE CONTRACT AGENT.

                  Payments to the Purchase Contract Agent hereunder shall be
made to the account designated by the Purchase Contract Agent for such purpose
(which shall be: The Bank of New York, ABA 021 000 018; 88K-Attn: Corporate
Trust Agency/GLA 111-565; Account Name: Sierra Pacific Resources; Account No.
____________, unless and until otherwise advised by the Purchase Contract Agent)
not later than 12:00 p.m. (New York City time), on the Business Day such payment
is received by the Collateral Agent or the Securities Intermediary; PROVIDED,
HOWEVER, that if such payment is received by the Collateral Agent or the
Securities Intermediary on a day that is not a Business Day or after 11:00 a.m.
(New York City time) on a Business Day, then such payment shall be made no later
than 10:30 a.m. (New York City time), on the next succeeding Business Day.

         SECTION 3.5 ASSETS NOT PROPERLY RELEASED.

                  If the Purchase Contract Agent or any Holder shall receive any
payments on account of financial assets credited to the Collateral Account and
not released therefrom in accordance with this Agreement, the Purchase Contract
Agent or such Holder shall hold the same as trustee of an express trust for the
benefit of the Company and, upon receipt of an Officers' Certificate so
directing, promptly deliver the same to the Securities Intermediary for credit
to the Collateral Account or to the Company for application to the obligations
of the

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                                                                               9

Holders under the related Purchase Contracts, and the Purchase Contract Agent
and Holders shall acquire no right, title or interest in any such payments of
amounts so received.

Section 4. CONTROL.

         SECTION 4.1 ESTABLISHMENT OF COLLATERAL ACCOUNT.

                  The Securities Intermediary hereby confirms that:

                  (1) the Securities Intermediary has established the Collateral
         Account;

                  (2) the Collateral Account is a securities account;

                  (3) subject to the terms of this Agreement, the Securities
         Intermediary shall treat the Purchase Contract Agent as entitled to
         exercise the rights that comprise any financial asset credited to the
         Collateral Account;

                  (4) all property delivered to the Securities Intermediary
         pursuant to this Agreement or the Purchase Contract Agreement or the
         Indenture will be credited promptly to the Collateral Account; and

                  (5) all securities or other property underlying any financial
         assets credited to the Collateral Account shall be registered in the
         name of the Securities Intermediary, indorsed to the Securities
         Intermediary, or in blank or credited to another securities account
         maintained in the name of the Securities Intermediary, and in no case
         will any financial asset credited to the Collateral Account be
         registered in the name of the Purchase Contract Agent or any Holder,
         payable to the order of the Purchase Contract Agent or any Holder or
         specially indorsed to the Purchase Contract Agent or any Holder.

         SECTION 4.2 TREATMENT AS FINANCIAL ASSETS.

                  Each item of property (whether investment property, financial
asset, security, instrument or Cash) credited to the Collateral Account shall be
treated as a financial asset.

         SECTION 4.3 SOLE CONTROL BY COLLATERAL AGENT.

                  Except as provided in Section 6, at all times prior to the
termination of the Pledge, the Collateral Agent shall have sole control of the
Collateral Account, and the Securities Intermediary shall take instructions and
directions with respect to the Collateral Account solely from the Collateral
Agent. If at any time the Securities Intermediary shall receive an entitlement
order issued by the Collateral Agent and relating to the Collateral Account, the
Securities Intermediary shall comply with such entitlement order without further
consent by the Purchase Contract Agent or any Holder or any other Person. Until
termination of the Pledge, the Securities Intermediary will not comply with any
entitlement orders issued by the Purchase Contract Agent or any Holder.

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                                                                              10

         SECTION 4.4 SECURITIES INTERMEDIARY'S LOCATION.

                  The Collateral Account and the rights and obligations of the
Securities Intermediary, the Collateral Agent, the Purchase Contract Agent and
the Holders with respect thereto shall be governed by the laws of the State of
New York. Regardless of any provision in any other agreement, for purposes of
the UCC, New York shall be deemed to be the Securities Intermediary's location.

         SECTION 4.5 NO OTHER CLAIMS.

                  Except for the claims and interest of the Collateral Agent,
the Company, the Purchase Contract Agent and the Holders in the Collateral
Account, the Securities Intermediary does not know of any claim to, or interest
in, the Collateral Account or in any financial asset credited thereto. If any
Person asserts any lien, encumbrance or adverse claim (including any writ,
garnishment, judgment, warrant of attachment, execution or similar process)
against the Collateral Account or in any financial asset carried therein, the
Securities Intermediary will promptly notify the Collateral Agent, the Purchase
Contract Agent and the Company.

         SECTION 4.6 INVESTMENT AND RELEASE.

                  All proceeds of financial assets from time to time deposited
in the Collateral Account shall be invested and reinvested as provided in this
Agreement. At all times prior to termination of the Pledge, no property shall be
released from the Collateral Account except in accordance with this Agreement or
upon written instructions of the Collateral Agent.

         SECTION 4.7 STATEMENTS AND CONFIRMATIONS.

                  The Securities Intermediary will promptly send copies of all
statements, confirmations and other correspondence concerning the Collateral
Account and any financial assets credited thereto simultaneously to each of the
Collateral Agent, the Purchase Contract Agent and the Company at their addresses
for notices under this Agreement.

         SECTION 4.8 TAX ALLOCATIONS.

                  The Company shall report all items of income, gain, expense
and loss recognized in the Collateral Account to the Internal Revenue Service
and all state and local taxing authorities under the names and taxpayer
identification numbers of the Holders that are the beneficial owners thereof.
None of the Collateral Agent, the Securities Intermediary or the Purchase
Contract Agent shall have any responsibility for such tax reporting.

         SECTION 4.9 NO OTHER AGREEMENTS.

                  The Securities Intermediary has not entered into, and prior to
the termination of the Pledge will not enter into, any agreement with any other
Person relating to the Collateral Account or any financial assets credited
thereto, including, without limitation, any agreement to comply with entitlement
orders of any Person other than the Collateral Agent.

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                                                                              11

         SECTION 4.10 POWERS COUPLED WITH AN INTEREST.

                  The rights and powers granted in this Section 4 to the
Collateral Agent have been granted in order to perfect its security interests in
the Collateral Account, are powers coupled with an interest and will be affected
neither by the bankruptcy of the Purchase Contract Agent or any Holder nor by
the lapse of time. The obligations of the Securities Intermediary under this
Section 4 shall continue in effect until the termination of the Pledge.

Section 5. INITIAL DEPOSIT; CREATION OF TREASURY PIES; AND RECREATION OF
           CORPORATE PIES; OTHER.

         SECTION 5.1 INITIAL DEPOSIT OF SENIOR NOTES.

                  Prior to or concurrently with the execution and delivery of
this Agreement, the Purchase Contract Agent, on behalf of the initial Holders of
the Corporate PIES, shall Transfer to the Securities Intermediary, for credit to
the Collateral Account, the Senior Notes or security entitlements relating to
such Senior Notes, and, if the Transfer takes the form of security entitlements,
the Securities Intermediary shall indicate by book entry that a securities
entitlement with respect to such Senior Notes has been credited to the
Collateral Account.

         SECTION 5.2 CREATION OF TREASURY PIES BY SUBSTITUTION OF TREASURY
SECURITIES.

                  (a) A Holder of Corporate PIES may separate the Senior Notes
from the related Purchase Contracts in respect of such Holder's Corporate PIES
by substituting for such Senior Notes Treasury Securities or security
entitlements thereto in an aggregate principal amount equal to the aggregate
principal amount of such Senior Notes, at any time from and after the date of
this Agreement until 5:00 p.m. (New York City time), on the Election Date by:

                  (1) providing notice to the Purchase Contract Agent,
         substantially in the form of Exhibit C to the Purchase Contract
         Agreement, of such Holder's intention to create Treasury PIES;

                  (2) for each group of 20 Corporate PIES from which such Holder
         wishes to create Treasury PIES, transferring a Treasury Security to the
         Securities Intermediary which shall then (y) deposit the Treasury
         Security with the Collateral Agent in the Collateral Account under this
         Agreement and instruct the Collateral Agent to hold such Treasury
         Security as Collateral under this Agreement and (z) instruct the
         Collateral Agent to release to such Holder $1,000 principal amount of
         Senior Notes formerly subject to the Pledge;

                  (3) transferring the related Corporate PIES to the Purchase
         Contract Agent accompanied by a notice to the Purchase Contract Agent,
         substantially in the form of Exhibit D to the Purchase Contract
         Agreement, stating that the Holder has transferred the relevant amount
         of Treasury Securities to the Securities Intermediary and requesting
         that the Purchase Contract Agent instruct the Collateral Agent to
         release the Senior Notes underlying such Corporate PIES, whereupon the
         Purchase Contract Agent shall promptly give such instruction to the
         Collateral Agent, substantially in the form of Exhibit A hereto; and

<PAGE>
                                                                              12

                  (4) paying to the Collateral Agent any fees or expenses
         incurred in connection with the Collateral Substitution;

PROVIDED that, Holders may make Collateral Substitutions only in integral
multiples of 20 Corporate PIES. Under no circumstances may a Holder of Corporate
PIES create Treasury PIES after 5:00 p.m. (New York City time) on the Election
Date.

                  Upon receipt from the Purchase Contract Agent of a notice
substantially in the form of Exhibit A hereto, confirmation from the Securities
Intermediary that Treasury Securities have been credited to the Collateral
Account and receipt of payment for any fees or expenses incurred in connection
with the Collateral Substitution, the Collateral Agent shall instruct the
Securities Intermediary by a notice, substantially in the form of Exhibit B
hereto, to release such Pledged Senior Notes from the Pledge by Transfer to the
Purchase Contract Agent for distribution to such Holder, free and clear of any
lien, pledge or security interest created hereby.

                  (b) Upon credit to the Collateral Account of Treasury
Securities or security entitlements thereto delivered by a Holder of Corporate
PIES and receipt of the related instruction from the Collateral Agent, the
Securities Intermediary shall release the Senior Notes specified in such
instruction and shall promptly transfer the same to the Purchase Contract Agent
for distribution to such Holder, free and clear of any lien, pledge or security
interest created hereby.

                  A Holder may elect not to participate in the Remarketing by
creating Treasury PIES as specified in this Section and Section 5.3(e) of the
Purchase Contract Agreement at any time until 5:00 p.m. (New York City time) on
the Election Date.

         SECTION 5.3 RECREATION OF CORPORATE PIES.

                  (a) A Holder of a Treasury PIES may recreate Corporate PIES at
any time until 5:00 p.m. (New York City time), on the Election Date by:

                  (1) providing notice to the Purchase Contract Agent,
         substantially in the form of Exhibit C of the Purchase Contract
         Agreement, of such Holder's intention to create Corporate PIES;

                  (2) for each Treasury PIES such Holder wishes to substitute,
         transferring 20 Senior Notes to the Securities Intermediary which shall
         then (y) deposit such Senior Notes in the Collateral Account under this
         Agreement and instruct the Collateral Agent to hold such Senior Notes
         as Collateral and (z) instruct the Collateral Agent to release to such
         Holder one (1) Treasury Security , in the case of a Holder of Treasury
         PIES, with a Value equal to the product of (i) the Stated Amount times
         (ii) the number of Purchase Contracts as to which such Holder has
         elected to effect Early Settlement or Merger Early Settlement, as
         applicable, formerly subject to the Pledge;

                  (3) transferring the related Treasury PIES to the Purchase
         Contract Agent accompanied by a notice to the Purchase Contract Agent,
         substantially in the form of Exhibit D of the Purchase Contract
         Agreement, (i) stating that the Holder has transferred the relevant
         amount of Senior Notes to the Securities Intermediary and (ii)
         requesting that

<PAGE>
                                                                              13

         the Purchase Contract Agent instruct the Collateral Agent to
         release the Treasury Securities underlying such Treasury PIES,
         whereupon the Purchase Contract Agent shall promptly give such
         instruction to the Collateral Agent, substantially in the form of
         Exhibit C hereto; and

                  (4) paying to the Collateral Agent any fees or expenses
         incurred in connection with the recreation of Corporate PIES;

PROVIDED that, Holders of Treasury PIES may recreate Corporate PIES in integral
multiples of 20 Treasury PIES for 20 Corporate PIES. Under no circumstance may a
Holder of Treasury PIES recreate Corporate PIES after 5:00 p.m. (New York City
time) on the Election Date.

                  Upon receipt from the Purchase Contract Agent of a notice
substantially in the form of Exhibit C hereto, confirmation that Senior Notes or
security entitlements thereto have been credited to the Collateral Account as
described in such notice and receipt of payment for any fees or expenses
incurred in connection with the recreation of Corporate PIES, the Collateral
Agent shall instruct the Securities Intermediary by a notice, substantially in
the form provided in Exhibit D hereto, to release such Pledged Treasury
Securities from the Pledge by Transfer to the Purchase Contract Agent for
distribution to such Holder.

                  (b) Upon credit to the Collateral Account of Senior Notes or
security entitlements thereto and receipt of the related instruction from the
Collateral Agent, the Securities Intermediary shall release the applicable
Treasury Securities specified in such instruction and shall promptly Transfer
the same to the Purchase Contract Agent for distribution to such Holder, free
and clear of any lien, pledge or security interest created hereby.

         SECTION 5.4 TERMINATION EVENT.

                  (a) Upon receipt by the Collateral Agent of written notice
from the Company or the Purchase Contract Agent that a Termination Event has
occurred, the Collateral Agent shall release all Collateral from the Pledge and
shall promptly Transfer any Pledged Senior Notes or security entitlement with
respect thereto, any Pledged Treasury Portfolio Interest or security entitlement
with respect thereto and any Pledged Treasury Securities or security entitlement
with respect thereto to the Purchase Contract Agent for the benefit of the
Holders, for distribution to such Holders in accordance with their respective
interests, free and clear of any lien, pledge or security interest or other
interest created hereby.

                  (b) If such Termination Event shall result from the Company's
becoming a debtor under the Bankruptcy Code, and if the Collateral Agent shall
for any reason fail promptly to effectuate the release and Transfer of all
Pledged Senior Notes, the Pledged Treasury Portfolio Interest or the Pledged
Treasury Securities or security entitlements with respect thereto, as the case
may be, as provided by this Section 5.4, the Purchase Contract Agent shall:

                  (1) request an opinion letter of a nationally recognized law
         firm reasonably acceptable to the Collateral Agent to the effect that,
         as a result of the Company's being the debtor in such a bankruptcy
         case, the Collateral Agent will not be prohibited from releasing or
         Transferring the Collateral as provided in this Section 5.4, and shall
         deliver such opinion to the Collateral Agent within ten days after the
         occurrence of such

<PAGE>
                                                                              14

         Termination Event, and if (A) the Purchase Contract Agent shall be
         unable to obtain such opinion within ten days after the occurrence of
         such Termination Event or (B) the Collateral Agent shall continue,
         after delivery of such opinion, to refuse to effectuate the release and
         Transfer of all Pledged Senior Notes, all Pledged Treasury Portfolio
         Interest, all Pledged Treasury Securities or the Proceeds of any of the
         foregoing, as the case may be, as provided in this Section 5.4, then
         the Purchase Contract Agent shall within thirty days after the
         occurrence of such Termination Event commence an action or proceeding
         in the court having jurisdiction of the Company's case under the
         Bankruptcy Code seeking an order requiring the Collateral Agent to
         effectuate the release and transfer of all Pledged Senior Notes, all
         Pledged Treasury Portfolio Interest or all the Pledged Treasury
         Securities or security entitlements with respect thereto, as the case
         may be, as provided by this Section 5.4; or

                  (2) commence an action or proceeding like that described in
         Section 5.4(b)(1)(B) hereof within ten days after the occurrence of
         such Termination Event.

The Purchase Contract Agent shall be deemed to have complied with Section
5.4(b)(1), and shall not be required to commence any action or proceeding
referred to therein, if it shall have either obtained such an opinion letter or
requested such an opinion from three such nationally recognized law firms
reasonably acceptable to the Collateral Agent.

         SECTION 5.5 CASH SETTLEMENT.

                  (a) Unless a Holder has effected an Early Settlement or a
Merger Early Settlement or a Successful Remarketing has occurred, in the case of
Corporate PIES, and unless a Termination Event has occurred prior to dates
required for notice to elect the Cash Settlement right specified in the Purchase
Contract Agreement, upon receipt by the Collateral Agent of (1) a notice from
the Purchase Contract Agent promptly after the receipt by the Purchase Contract
Agent of a notice from a Holder of a Corporate PIES or a Treasury PIES that it
has elected, in accordance with the procedures specified in Section 5.8(a)(i) or
(b)(i) of the Purchase Contract Agreement, respectively, to effect a Cash
Settlement and (2) payment by such Holder by deposit in the Collateral Account
on or prior to 11:00 a.m. (New York City time), on the fifth Business Day
immediately preceding the Purchase Contract Settlement Date in the case of
Corporate PIES, and the Business Day immediately preceding the Purchase Contract
Settlement Date in the case of the Treasury PIES, of the Purchase Price in
lawful money of the United States by wire transfer of immediately available
funds payable to or upon the order of the Securities Intermediary, then the
Collateral Agent shall upon receipt of written directions from the Company:

                  (1) instruct the Securities Intermediary promptly to invest
         any such Cash in Permitted Investments;

                  (2) release from the Pledge (i) in the case of a Holder of
         Corporate PIES, the related Pledged Senior Notes, or (ii) in the case
         of a Holder of Treasury PIES, the related Pledged Treasury Securities,
         with a principal amount or principal amount at maturity, as the case
         may be, equal to the product of (x) the Stated Amount times (y) the
         number of Purchase Contracts as to which such Holder has elected to
         effect a Cash Settlement; and

<PAGE>
                                                                              15

                  (3) instruct the Securities Intermediary to Transfer all such
         Pledged Senior Notes or Pledged Treasury Securities, as the case may
         be, to the Purchase Contract Agent for the benefit of such Holders, in
         each case free and clear of the Pledge created hereby, for distribution
         to such Holder.

                  The Company shall instruct the Securities Intermediary as to
the type of Permitted Investments in which any such Cash shall be invested;
provided, however, that if the Company fails to deliver such instructions by
10:00 a.m. (New York City time), the Securities Intermediary shall invest such
Cash in the Permitted Investments described in clause 6 of the definition of
Permitted Investments. Upon receipt of the proceeds upon the maturity of the
Permitted Investments on the Purchase Contract Settlement Date, the Collateral
Agent shall (A) instruct the Securities Intermediary to pay the portion of such
proceeds and deliver any certified or cashier's checks received, in an aggregate
amount equal to the Purchase Price, to the Company on the Purchase Contract
Settlement Date, and (B) instruct the Securities Intermediary to release any
amounts in respect of the interest earned from such Permitted Investments to the
Purchase Contract Agent for distribution to such Holder.

                  (b) If a Holder of a Corporate PIES notifies the Purchase
Contract Agent as provided in Section 5.8(a)(i) of the Purchase Contract
Agreement of its intention to pay the Purchase Price in cash, but fails to make
such payment as required by Section 5.8(a)(ii) of the Purchase Contract
Agreement, such Holder shall be deemed to have consented to (A) to the
disposition of the Pledged Senior Notes on the third Business Day prior to the
Purchase Contract Settlement Date in connection with the Final Remarketing in
accordance with Section 5.3 of the Purchase Contract Agreement or, (B) if a
Failed Remarketing occurs, the Collateral Agent, for the benefit of the Company,
and upon written direction of the Company as provided in this Agreement,
exercising all of its rights as a secured party with respect to any Pledged
Senior Notes under this Agreement and, subject to applicable law, by either (i)
retaining such Senior Notes in full satisfaction of such Holder's obligations
under the related Purchase Contracts or (ii) selling such Senior Notes in one or
more public or private sales.

                  (c) If a Holder of a Treasury PIES notifies the Purchase
Contract Agent as provided in Section 5.8(b)(i) of the Purchase Contract
Agreement of its intention to pay the Purchase Price in cash, but fails to make
such payment as required by Section 5.8(b)(ii) of the Purchase Contract
Agreement, such Holder shall be deemed to have elected to pay the Purchase Price
in accordance with Section 5.8(b) hereof.

                  (d) Prior to 3:00 p.m. (New York City time), on the fourth
Business Day immediately preceding the Purchase Contract Settlement Date, the
Securities Intermediary shall deliver to the Purchase Contract Agent a notice,
substantially in the form of Exhibit E hereto, stating the amount of cash that
it has received with respect to the Cash Settlement of Corporate PIES.

                  (e) Prior to 3:00 p.m. (New York City time), on the Business
Day immediately preceding the Purchase Contract Settlement Date, the Securities
Intermediary shall deliver to the Purchase Contract Agent a notice,
substantially in the form of Exhibit E hereto, stating the amount of cash that
it has received with respect to the Cash Settlement of Treasury PIES.

<PAGE>
                                                                              16

         SECTION 5.6 EARLY SETTLEMENT; MERGER EARLY SETTLEMENT.

                  Unless a Termination Event has occurred, upon receipt by the
Collateral Agent of a notice from the Purchase Contract Agent that a Holder of
PIES has elected to effect Early Settlement or Merger Early Settlement of its
obligations under the Purchase Contracts forming a part of such PIES in
accordance with the terms of the Purchase Contracts and the Purchase Contract
Agreement (which notice shall set forth the number of such Purchase Contracts as
to which such Holder has elected to effect Early Settlement or Merger Early
Settlement), and that the Purchase Contract Agent has received from such Holder,
and paid to the Company as confirmed in writing by the Company, the related
Early Settlement Amounts or Merger Early Settlement Amounts, as applicable,
pursuant to the terms of the Purchase Contract Agreement and all conditions to
such Early Settlement or Merger Early Settlement, as applicable, have been
satisfied, then the Collateral Agent shall release from the Pledge, (1) Pledged
Senior Notes, or Pledged Treasury Portfolio Interest, as the case may be, in the
case of a Holder of Corporate PIES, or (2) Pledged Treasury Securities, in the
case of a Holder of Treasury PIES, with a Value equal to the product of (i) the
Stated Amount times (ii) the number of Purchase Contracts as to which such
Holder has elected to effect Early Settlement or Merger Early Settlement, as
applicable, and shall instruct the Securities Intermediary to Transfer all such
Pledged Senior Notes, Pledged Treasury Portfolio Interest or Pledged Treasury
Securities, as the case may be, to the Purchase Contract Agent for the benefit
of such Holder, in each case free and clear of the Pledge created hereby, for
distribution to such Holder.

                  Notwithstanding anything to the contrary contained herein,
Holders may not effect Early Settlement after 5:00 p.m. (New York City time) on
the Election Date and Holders may effect Merger Early Settlement of PIES only in
integral multiples of 20 Corporate PIES or 20 Treasury PIES.

         SECTION 5.7 OPTIONAL REMARKETING.

                  Pursuant to the Indenture and the Remarketing Agreement, on or
prior to 5:00 p.m. (New York City time) on the Election Date, registered holders
of Separated Senior Notes may elect to have their Separated Senior Notes
remarketed by Transferring their Separated Senior Notes, together with a notice
of such election, substantially in the form of Exhibit F hereto and Exhibit B to
the Indenture Officers' Certificate, to the Collateral Agent and the Trustee,
respectively, whereupon, the Collateral Agent shall hold such Separated Senior
Notes in an account separate from the Collateral Account and cause such
Separated Senior Notes to be included in any Remarketing pursuant to the
Indenture and the Remarketing Procedures. Once such holder of such Separated
Senior Notes delivers such notice and Separated Senior Notes as specified in the
preceding sentence, such election may not be withdrawn and may not be
conditioned upon the level at which the Reset Rate is established in the
Remarketing; PROVIDED, HOWEVER, that if such a holder delivers only such a
notice but not the Separated Senior Notes subject to the notice, then none of
such holders' Separated Senior Notes shall be included in the Remarketing.

                  If there is a Successful Remarketing, the Collateral Agent
shall Transfer such Separated Senior Notes in accordance with the instructions
provided by the Remarketing Agent pursuant to the Remarketing Agreement. If a
Failed Remarketing occurs, the Remarketing Agent shall Transfer to the
Collateral Agent, by the third Business Day following the Failed

<PAGE>
                                                                              17

Remarketing, such Separated Senior Notes, whereupon the Collateral Agent shall
promptly Transfer such Separated Senior Notes to the holders entitled thereto.

         SECTION 5.8 APPLICATION OF PROCEEDS IN SETTLEMENT; REMARKETING.

                  (a) Unless a Termination Event has occurred or a Holder has
effected an Early Settlement or a Merger Early Settlement, Early Settlement or
Merger Early Settlement, (i) the Purchase Contract Agent shall notify, by 11:00
a.m. (New York City time), on the Business Day immediately preceding the Initial
Remarketing Date, the Remarketing Agent, the Collateral Agent, the Trustee and
the Company of the aggregate principal amount of Pledged Senior Notes comprising
part of Corporate PIES to be remarketed, other than those Pledged Senior Notes
of Holders that have elected not to participate in the Remarketing pursuant to
paragraph 19(i)(B) of the Indenture Officers' Certificate and Section 5.3(e) of
the Purchase Contract Agreement, and (ii) the Collateral Agent shall notify, by
11:00 a.m. (New York City time), on the Business Day immediately preceding the
Initial Remarketing Date, the Remarketing Agent, the Trustee and the Company of
the aggregate principal amount of Separated Senior Notes of holders of Separated
Senior Notes that have elected to participate in the Remarketing (the Senior
Notes described in clauses (i) and (ii) collectively being referred to as the
"Remarketing Senior Notes") and, concurrently therewith, the Collateral Agent
shall, without any further instruction from any holder of the Remarketing Senior
Notes, present all Remarketing Senior Notes to the Remarketing Agent for
Remarketing.

                  If there has been a successful Initial Remarketing (a
"Successful Initial Remarketing") or a successful Subsequent Remarketing (a
"Successful Subsequent Remarketing"), the Remarketing Agent will on the
Remarketing Date of such Remarketing (i) deduct and retain for itself as a
remarketing fee an amount not exceeding 25 basis points (0.25%) of the principal
amount of each remarketed Remarketing Senior Note (the "Remarketing Fee"), (ii)
use the remaining Proceeds with respect to the Pledged Senior Notes from such
Successful Remarketing to purchase the Treasury Portfolio and, on or prior to
the third Business Day following the Remarketing Date (such date of settlement
of the Remarketing, the "Remarketing Settlement Date"), and deliver such
Treasury Portfolio to the Collateral Agent, which shall thereupon, for the
benefit of the Company, apply such Treasury Portfolio, to secure the obligation
of all Holders of Corporate PIES to purchase Common Stock under the Purchase
Contracts constituting a part of such Corporate PIES, in substitution for the
Pledged Senior Notes, (iii) if any Separated Senior Notes were remarketed, remit
to the Collateral Agent for payment to the holders of such Separated Senior
Notes sold in the Remarketing the remaining proceeds from such Successful
Remarketing attributable to the Separated Senior Notes in an amount equal to the
principal amount of such Senior Notes and (iv) if there then remains any
proceeds from such Successful Remarketing, after the application of such
proceeds as set forth in clauses (i) through (iii) above, then remit any such
remaining proceeds attributable to the remarketed Pledged Senior Notes to the
Purchase Contract Agent for the benefit of the holders of such Pledged Senior
Notes and to the Collateral Agent for benefit of the holders of any remarketed
Separate Senior Notes, on a pro rata basis, PROVIDED, HOWEVER, that if such
Successful Remarketing is consummated after 4:30 p.m. (New York City time) on
such Remarketing Date and, despite using its commercially reasonable efforts,
the Remarketing Agent cannot cause the applications of the proceeds specified
above to occur on such Remarketing Date, then the Remarketing Agent may make
such applications and remittances on the next succeeding

<PAGE>
                                                                              18

Business Day. Holders of the Remarketing Senior Notes that are so remarketed
will not otherwise be responsible for the payment of any remarketing fee or
expenses in connection with the Remarketing. Following the delivery of the
Treasury Portfolio to the Collateral Agent as set forth above in this paragraph,
the Collateral Agent shall have such security interests, rights and obligations
with respect to the Treasury Portfolio as it had in respect of the Pledged
Senior Notes, as provided herein.

                  In the event that any portion of the Pledged Treasury
Portfolio Interest matures before the Purchase Contract Settlement Date, the
Collateral Agent shall invest the Cash Proceeds therefrom in Permitted
Investments in clause 6 of the definition of Permitted Investments, unless the
Company shall otherwise instruct the Securities Intermediary and the Collateral
Agent as to the type of Permitted Investments in which any such Cash Proceeds
shall be invested. The Collateral Agent shall cause the Securities Intermediary
to remit, on the Purchase Contract Settlement Date, a portion of the Cash
Proceeds of the maturing Pledged Treasury Portfolio Interest and of the
investment earnings from the related investment in Permitted Investments, in an
aggregate amount equal to the Treasury Portfolio Return to the Purchase Contract
Agent for the benefit of the Holders of the related Corporate PIES when
received. Without receiving any instruction from any such Holder of Corporate
PIES, the Collateral Agent shall apply, on the Purchase Contract Settlement
Date, the Cash Proceeds of the maturing Pledged Treasury Portfolio Interest and
of the investment earnings from the related investment in Permitted Investments,
in an aggregate amount equal to the aggregate Purchase Price applicable to such
Corporate PIES to satisfy in full such Holder's obligations to pay the Purchase
Price to purchase the shares of Common Stock under the related Purchase
Contracts on the Purchase Contract Settlement Date. In the event the sum of the
Proceeds from the related Pledged Treasury Portfolio Interest and the investment
earnings from the related investment in Permitted Investments exceeds the sum of
the related Treasury Portfolio Return and the aggregate Purchase Price of the
Purchase Contracts being settled thereby, the Collateral Agent shall instruct
the Securities Intermediary to distribute such excess, when received, to the
Purchase Contract Agent for distribution to the Holders whose Purchase Contracts
were settled with such Proceeds, on a pro rata basis.

                  If, by 4:00 p.m. (New York City time), on the ninth Business
Day preceding the Purchase Contract Settlement Date, the Remarketing Agent,
despite using its commercially reasonable efforts, has been and is unable to
remarket all of the Remarketing Senior Notes tendered for purchase at a price
equal to at least the Remarketing Value, the Remarketing Agent shall Transfer to
the Collateral Agent, by the sixth Business Day preceding the Purchase Contract
Settlement Date, the Pledged Senior Notes that were to be remarketed in the
Initial or Subsequent Remarketing, whereupon the Collateral Agent shall, for the
benefit of the Company, apply such Pledged Senior Notes, to secure the
obligation of the related Holders of Corporate PIES to purchase Common Stock
under the related Purchase Contracts.

                  (b) Unless a Termination Event has occurred or a Holder has
effected a Cash Settlement, an Early Settlement or a Merger Early Settlement, or
a Successful Initial Remarketing or a Successful Subsequent Remarketing has
occurred, such Holder shall be deemed to have consented to the Remarketing of
its Pledged Senior Notes in the Final Remarketing on the Final Remarketing Date,
in a Remarketing in accordance with Section 5.3(c) of the Purchase Contract
Agreement. Upon notice of such event from the Purchase Contract

<PAGE>
                                                                              19

Agent, the Collateral Agent shall, by 11:00 a.m. (New York City time), on the
Business Day immediately preceding the Final Remarketing Date, without any
instruction from such Holders of Corporate PIES, Transfer the Remarketing Senior
Notes to the Remarketing Agent for Remarketing. Upon receiving such Remarketing
Senior Notes, the Remarketing Agent, pursuant to the terms of the Remarketing
Agreement, will use its commercially reasonable efforts to remarket such
Remarketing Senior Notes on the Final Remarketing Date.

                  If the Final Remarketing is successful (a "Successful Final
Remarketing"), the Remarketing Agent will on the Remarketing Date (i) deduct and
retain for itself the Remarketing Fee pursuant to the Remarketing Agreement,
(ii) cause the remaining Proceeds of the Remarketing with respect to the Pledged
Senior Notes in an amount equal to the aggregate principal amount of such Senior
Notes to be delivered to the Purchase Contract Agent, on the Remarketing
Settlement Date, (iii), if any Separated Senior Notes were remarketed, remit to
the Collateral Agent for payment to the holders of such Separated Senior Notes
sold in the Remarketing the remaining proceeds from such Successful Remarketing
attributable to the Separated Senior Notes in an amount equal to the principal
amount of such Senior Notes and (iv) if there then remains any proceeds from
such Successful Remarketing, after the application of such proceeds as set forth
in clauses (i) through (iii) above, remit any excess Proceeds of the Remarketing
to the Purchase Contract Agent for the benefit of the Holders of Corporate PIES
whose Pledged Senior Notes were remarketed and to the Collateral Agent for the
benefit of the holders of any remarketed Separated Senior Notes, on a pro rata
basis. Holders of the Remarketing Senior Notes that are so remarketed will not
otherwise be responsible for the payment of any remarketing fee or expenses in
connection with the Remarketing. The Purchase Contract Agent shall give written
directions to the Collateral Agent, and the Collateral Agent shall instruct the
Securities Intermediary, to apply a portion of the Proceeds with respect to the
Pledged Senior Notes from such Remarketing, on the Purchase Contract Settlement
Date, equal to the aggregate principal amount of such Pledged Senior Notes to
satisfy in full the obligations of such Holders of Corporate PIES to pay the
Purchase Price to purchase the shares of Common Stock under the related Purchase
Contracts.

                  If a Failed Remarketing occurs, the Collateral Agent, having
received notice of such Failed Remarketing from the Remarketing Agent pursuant
to the Remarketing Agreement, shall, on the written direction of the Company,
exercise for the benefit of the Company, its rights as a secured creditor with
respect to the Pledged Senior Notes related to this Corporate PIES Certificate
and, subject to applicable law, may (i) retain such Pledged Senior Notes in full
satisfaction of the Holders' obligations under the Purchase Contracts or (ii)
sell such Pledged Senior Notes in one or more public or private sales, the
proceeds, if any, of such sale to constitute full satisfaction of the Holders'
obligations under the Purchase Contracts.

                  (c) Unless a Termination Event has occurred or a Holder has
effected a Cash Settlement, an Early Settlement or a Merger Early Settlement, if
a Successful Initial Remarketing or a Successful Subsequent Remarketing has
occurred, a Holder shall be deemed to have elected to pay for the shares of
Common Stock to be issued under such Purchase Contracts from the Proceeds of the
Pledged Treasury Portfolio, in the case of Holders of Corporate PIES, and the
related Pledged Treasury Securities, in the case of Holders of Treasury PIES.

                  (d) In the event that all or any portion of the Pledged
Treasury Securities matures before the Purchase Contract Settlement Date, the
Collateral Agent shall invest the Cash

<PAGE>

                                                                              20

Proceeds therefrom in Permitted Investments in clause 6 of the definition of
Permitted Investments, unless the Company shall otherwise instruct the
Securities Intermediary and the Collateral Agent as to the type of Permitted
Investments in which any such Cash Proceeds shall be invested.

                  (e) Without receiving any instruction from any such Holder of
Treasury PIES, the Collateral Agent shall apply, on the Purchase Contract
Settlement Date, the Cash Proceeds of the maturing Pledged Treasury Securities
and of the investment earnings from the related investment in Permitted
Investments, in each case, in an amount equal to the aggregate Purchase Price
applicable to such Treasury PIES to satisfy in full such Holder's obligations to
pay the Purchase Price to purchase the shares of Common Stock under the related
Purchase Contracts on the Purchase Contract Settlement Date. In the event the
sum of the Proceeds from the related Pledged Treasury Securities and the
investment earnings from the related investment in Permitted Investments exceeds
the aggregate Purchase Price of the Purchase Contracts being settled thereby,
the Collateral Agent shall instruct the Securities Intermediary to distribute
such excess, when received, to the Purchase Contract Agent for distribution to
the Holders whose Purchase Contracts were settled with such Proceeds, on a pro
rata basis.

                  (f) Notwithstanding the Pledge and, if applicable, the
delivery of Separated Senior Notes to the Collateral Agent for Remarketing, in
each case, as set forth herein, the Company's obligation to pay interest,
including any accrued and unpaid, on all outstanding Senior Notes (whether then
comprising a part of Corporate PIES or as Separated Senior Notes) pursuant to
the Indenture shall remain.

Section 6.        VOTING RIGHTS.

                  The Purchase Contract Agent may exercise, or refrain from
exercising, any and all voting and other consensual rights pertaining to the
Pledged Senior Notes or any part thereof in accordance with the terms of the
Purchase Contract Agreement. The Purchase Contract Agent shall give the Company
and the Collateral Agent at least five calendar days' prior written notice of
the manner in which it intends to exercise, or its reasons for refraining from
exercising, any such right. Upon receipt of any notices and other communications
in respect of any Pledged Senior Notes, including notice of any meeting at which
holders of the Senior Notes are entitled to vote or solicitation of consents,
waivers or proxies of holders of the Senior Notes, the Collateral Agent shall
use its reasonable efforts to send promptly to the Purchase Contract Agent such
notice or communication, and as soon as reasonably practicable after receipt of
a written request therefor from the Purchase Contract Agent, execute and deliver
to the Purchase Contract Agent such proxies and other instruments in respect of
such Pledged Senior Notes (in form and substance satisfactory to the Collateral
Agent) as are prepared by the Purchase Contract Agent with respect to the
Pledged Senior Notes.

Section 7.        RIGHTS AND REMEDIES.

         SECTION 7.1 RIGHTS AND REMEDIES OF THE COLLATERAL AGENT.

                  (a) In addition to the rights and remedies specified in
Section 5.5 hereof or otherwise available at law or in equity, after an event of
default (as specified in Section 7.1(b) below) hereunder, the Collateral Agent
shall have all of the rights and remedies with respect to

<PAGE>

                                                                              21

the Collateral of a secured party under the UCC (whether or not the UCC is in
effect in the jurisdiction where the rights and remedies are asserted) and the
TRADES Regulations and such additional rights and remedies to which a secured
party is entitled under the laws in effect in any jurisdiction where any rights
and remedies hereunder may be asserted. Without limiting the generality of the
foregoing, such remedies may include, to the extent permitted by applicable law,
(i) retention of the Pledged Senior Notes, Pledged Treasury Portfolio Interest
or Pledged Treasury Securities in full satisfaction of the Holders' obligations
under the Purchase Contracts or (ii) sale of the Pledged Senior Notes, Pledged
Treasury Portfolio Interest or Pledged Treasury Securities in one or more public
or private sales.

                  (b) Without limiting any rights or powers otherwise granted by
this Agreement to the Collateral Agent, in the event the Collateral Agent is
unable to make payments to the Company on account of principal payments of any
Pledged Treasury Securities or on account of any Pledged Treasury Portfolio
Interest as provided in Section 3 hereof, in satisfaction of the Obligations of
the Holder of the PIES of which such Pledged Treasury Securities or Pledged
Treasury Portfolio Interest are a part under the related Purchase Contracts, the
inability to make such payments shall constitute an event of default hereunder
and the Collateral Agent shall have and may exercise, with reference to such
Pledged Treasury Securities or Pledged Treasury Portfolio Interest, as
applicable, any and all of the rights and remedies available to a secured party
under the UCC and the TRADES Regulations after default by a debtor, and as
otherwise granted herein or under any other law.

                  (c) Without limiting any rights or powers otherwise granted by
this Agreement to the Collateral Agent, the Collateral Agent is hereby
irrevocably authorized to receive and collect all payments of (i) the principal
amount of the Pledged Senior Notes, (ii) the principal amount of the Pledged
Treasury Securities and (iii) the principal amount of the Pledged Treasury
Portfolio Interest, subject, in each case, to the provisions of Section 3
hereof, and as otherwise granted herein.

                  (d) The Purchase Contract Agent and each Holder of PIES agrees
that, from time to time, upon the written request of the Collateral Agent, the
Purchase Contract Agent or such Holder shall execute and deliver such further
documents and do such other acts and things as the Collateral Agent may
reasonably request in order to maintain the Pledge, and the perfection and
priority thereof, and to confirm the rights of the Collateral Agent hereunder.
The Purchase Contract Agent shall have no liability to any Holder for executing
any documents or taking any such acts requested by the Collateral Agent
hereunder, except for liability for its own grossly negligent acts, its own
grossly negligent failure to act or its own willful misconduct.

         SECTION 7.2 SUBSTITUTIONS.

                  Whenever a Holder has the right to substitute Treasury
Securities, Senior Notes or security entitlements to either of them for
financial assets held in the Collateral Account, such substitution shall not
constitute a novation of the security interest created hereby.

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                                                                              22

Section 8.        REPRESENTATIONS AND WARRANTIES; COVENANTS.

         SECTION 8.1 REPRESENTATIONS AND WARRANTIES.

                  Each Holder from time to time, acting through the Purchase
Contract Agent as attorney-in-fact (it being understood that the Purchase
Contract Agent shall not be liable for any representation or warranty made by or
on behalf of a Holder), hereby represents and warrants to the Collateral Agent
(with respect to its interest in the Collateral), which representations and
warranties shall be deemed repeated on each day a Holder Transfers Collateral
that:

                  (1) such Holder has the power to grant a security interest in
         and lien on the Collateral;

                  (2) such Holder is the sole beneficial owner of the Collateral
         and, in the case of Collateral delivered in physical form, is the sole
         holder of such Collateral and is the sole beneficial owner of, or has
         the right to Transfer, the Collateral it Transfers to the Securities
         Intermediary for credit to the Collateral Account, free and clear of
         any security interest, lien, encumbrance, call, liability to pay money
         or other restriction other than the security interest and lien granted
         under Section 2 hereof;

                  (3) upon the Transfer of the Collateral to the Securities
         Intermediary for credit to the Collateral Account, the Collateral
         Agent, for the benefit of the Company, will have a valid and
         perfected first priority security interest therein (assuming that
         any central clearing operation or any Securities Intermediary or
         other entity not within the control of the Holder involved in the
         Transfer of the Collateral, including the Collateral Agent and the
         Securities Intermediary, gives the notices and takes the action
         required of it hereunder and under applicable law for perfection of
         that interest and assuming the establishment and exercise of control
         pursuant to Section 4 hereof); and

                  (4) the execution and performance by the Holder of its
         obligations under this Agreement will not result in the creation of any
         security interest, lien or other encumbrance on the Collateral other
         than the security interest and lien granted under Section 2 hereof or
         violate any provision of any existing law or regulation applicable to
         it or of any mortgage, charge, pledge, indenture, contract or
         undertaking to which it is a party or which is binding on it or any of
         its assets.

         SECTION 8.2 COVENANTS.

                  The Purchase Contract Agent and the Holders from time to time,
acting through the Purchase Contract Agent as their attorney-in-fact (it being
understood that the Purchase Contract Agent shall not be liable for any covenant
made by or on behalf of a Holder), hereby covenant to the Collateral Agent that
for so long as the Collateral remains subject to the Pledge:

                  (1) neither the Purchase Contract Agent nor such Holders will
         create or purport to create or allow to subsist any mortgage, charge,
         lien, pledge or any other security interest whatsoever over the
         Collateral or any part of it other than pursuant to this Agreement; and

<PAGE>

                                                                              23

                  (2) neither the Purchase Contract Agent nor such Holders will
         sell or otherwise dispose (or attempt to dispose) of the Collateral or
         any part of it except for the beneficial interest therein, subject to
         the Pledge hereunder, transferred in connection with the Transfer of
         the PIES.

Section 9.        THE COLLATERAL AGENT AND THE SECURITIES INTERMEDIARY.

                  It is hereby agreed as follows:

         SECTION 9.1 APPOINTMENT, POWERS AND IMMUNITIES.

                  The Collateral Agent and the Securities Intermediary shall
each act solely as agent for the Company hereunder and not in its individual
capacity with such powers as are specifically vested in the Collateral Agent or
the Securities Intermediary, as the case may be, by the terms of this Agreement,
together with such other powers as are reasonably incidental thereto. The
Collateral Agent and the Securities Intermediary shall:

                  (1) have no duties or responsibilities except those expressly
         set forth in this Agreement and no implied covenants or obligations
         shall be inferred from this Agreement against the Collateral Agent or
         the Securities Intermediary, nor shall the Collateral Agent or the
         Securities Intermediary be bound by the provisions of any agreement by
         any party hereto beyond the specific terms hereof;

                  (2) not be responsible for, and neither the Collateral Agent
         nor the Securities Intermediary makes any representation or warranty
         with respect to, any recitals contained in this Agreement, or in any
         certificate or other document referred to or provided for in, or
         received by it under, this Agreement, the PIES or the Purchase Contract
         Agreement, or for the value, validity, effectiveness, genuineness,
         enforceability or sufficiency of this Agreement (other than as against
         the Collateral Agent or the Securities Intermediary, as the case may
         be), the PIES or the Purchase Contract Agreement or any other document
         referred to or provided for herein or therein or for any failure by the
         Company or any other Person (except the Collateral Agent or the
         Securities Intermediary, as the case may be) to perform any of its
         obligations hereunder or thereunder or for the due creation,
         perfection, priority or, except, in the case of the Collateral Agent,
         as expressly required hereby, maintenance of any security interest
         created hereunder;

                  (3) not be required to initiate or conduct any litigation or
         collection proceedings hereunder (except, in the case of the Collateral
         Agent, pursuant to directions furnished under Section 9.2 hereof,
         subject to Section 9.6 hereof);

                  (4) not be responsible for any action taken or omitted to be
         taken by it hereunder or under any other document or instrument
         referred to or provided for herein or in connection herewith or
         therewith, except for its own gross negligence or willful misconduct;
         and

                  (5) not be required to advise any party as to selling or
         retaining, or taking or refraining from taking any action with respect
         to, any securities or other property deposited hereunder.

<PAGE>

                                                                              24

Subject to the foregoing, during the term of this Agreement, the Collateral
Agent shall take all reasonable action in connection with the safekeeping and
preservation of the Collateral hereunder.

                  No provision of this Agreement shall require the Collateral
Agent to expend or risk its own funds or otherwise incur any financial liability
in the performance of any of its duties hereunder. Notwithstanding the
foregoing, each of the Collateral Agent and the Securities Intermediary in its
individual capacity hereby waives any right of setoff, bankers' lien, liens or
perfection rights as Securities Intermediary or any counterclaim with respect to
any of the Collateral.

         SECTION 9.2 INSTRUCTIONS OF THE COMPANY.

                  The Company shall have the right, by one or more instruments
in writing executed and delivered to the Collateral Agent, to direct the time,
method and place of conducting any proceeding for the realization of any right
or remedy available to the Collateral Agent, or of exercising any power
conferred on the Collateral Agent, or to direct the taking or refraining from
taking of any action authorized by this Agreement; PROVIDED, HOWEVER, that (i)
such direction shall not conflict with the provisions of any law or of this
Agreement and (ii) the Collateral Agent shall be adequately indemnified as
provided herein. Nothing contained in this Section 9.2 shall impair the right of
the Collateral Agent in its discretion to take any action or omit to take any
action which it deems proper and which is not inconsistent with such direction.

         SECTION 9.3 RELIANCE BY COLLATERAL AGENT AND SECURITIES INTERMEDIARY.

                  Each of the Securities Intermediary and the Collateral Agent
shall be entitled to rely upon, and shall not incur any liability to anyone in
acting upon, any certification, order, judgment, opinion, notice, instructions
or other communication (including, without limitation, any thereof by telephone,
telecopy, telex or facsimile) believed by it to be genuine and correct and to
have been signed or sent by or on behalf of the proper Person or Persons
(without being required to determine the correctness of any fact or matter
stated therein) and upon advice and statements of legal counsel and other
experts selected by the Collateral Agent or the Securities Intermediary, as the
case may be. As to any matters not expressly provided for by this Agreement, the
Collateral Agent and the Securities Intermediary shall in all cases be fully
protected in acting, or in refraining from acting, hereunder in accordance with
instructions given by the Company in accordance with Section 9.2 of this
Agreement.

         SECTION 9.4 RIGHTS IN OTHER CAPACITIES.

                  The Collateral Agent and the Securities Intermediary and their
affiliates may (without having to account therefor to the Company) accept
deposits from, lend money to, make their investments in and generally engage in
any kind of banking, trust or other business with the Purchase Contract Agent or
the Securities Intermediary, as the case may be, any other Person interested
herein and any Holder of PIES (and any of their respective subsidiaries or
affiliates) as if it were not acting as the Collateral Agent or the Securities
Intermediary, as the case may be, and the Collateral Agent, the Securities
Intermediary and their affiliates may accept fees and other consideration from
the Purchase Contract Agent and any Holder of PIES without having to

<PAGE>

                                                                              25

account for the same to the Company; PROVIDED that each of the Securities
Intermediary and the Collateral Agent covenants and agrees with the Company that
it shall not accept, receive or permit there to be created in favor of itself
and shall take no affirmative action to permit there to be created in favor of
any other Person, any security interest, lien or other encumbrance of any kind
in or upon the Collateral other than the lien created by the Pledge.

         SECTION 9.5 NON-RELIANCE ON COLLATERAL AGENT AND SECURITIES
INTERMEDIARY.

                  Neither the Securities Intermediary nor the Collateral Agent
shall be required to keep itself informed as to the performance or observance by
the Purchase Contract Agent or any Holder of PIES of this Agreement, the
Purchase Contract Agreement, the PIES or any other document referred to or
provided for herein or therein or to inspect the properties or books of the
Purchase Contract Agent or any Holder of PIES. Neither the Collateral Agent nor
the Securities Intermediary shall have any duty or responsibility to provide the
Company with any credit or other information concerning the affairs, financial
condition or business of the Purchase Contract Agent or any Holder of PIES (or
any of their respective affiliates) that may come into the possession of the
Collateral Agent or the Securities Intermediary or any of their respective
affiliates.

         SECTION 9.6 COMPENSATION AND INDEMNITY.

                  The Company agrees to:

                  (1) pay the Collateral Agent and the Securities Intermediary
         from time to time such compensation as shall be agreed in writing
         between the Company and the Collateral Agent or the Securities
         Intermediary, as the case may be, for all services rendered by them
         hereunder; and

                  (2) indemnify the Collateral Agent and the Securities
         Intermediary for, and to hold each of them harmless from and against,
         any loss, liability or reasonable out-of-pocket expense incurred
         without gross negligence, willful misconduct or bad faith on its part,
         arising out of or in connection with the acceptance or administration
         of its powers and duties under this Agreement, including the reasonable
         costs and expenses (including reasonable fees and expenses of counsel)
         of defending itself against any claim or liability in connection with
         the exercise or performance of such powers and duties.

         SECTION 9.7 FAILURE TO ACT.

                  Subject to Section 9.2 of this Agreement, in the event of any
dispute between or conflicting claims by or among the parties hereto or any
other Person with respect to any funds or property deposited hereunder, the
Collateral Agent and the Securities Intermediary shall be entitled, after prompt
notice to the Company and the Purchase Contract Agent, at its sole option, to
refuse to comply with any and all claims, demands or instructions with respect
to such property or funds so long as such dispute or conflict shall continue,
and the Collateral Agent and the Securities Intermediary shall not be or become
liable in any way to any of the parties hereto for its failure or refusal to
comply with such conflicting claims, demands or instructions. The Collateral
Agent and the Securities Intermediary shall be entitled to refuse to act until
either:

<PAGE>

                                                                              26

                  (1) such conflicting or adverse claims or demands shall have
         been finally determined by a court of competent jurisdiction or settled
         by agreement between the conflicting parties as evidenced in a writing
         satisfactory to the Collateral Agent or the Securities Intermediary; or

                  (2) the Collateral Agent or the Securities Intermediary shall
         have received security or an indemnity satisfactory to it sufficient to
         save it harmless from and against any and all loss, liability or
         reasonable out-of-pocket expense which it may incur by reason of its
         acting.

The Collateral Agent and the Securities Intermediary may in addition elect to
commence an interpleader action or seek other judicial relief or orders as the
Collateral Agent or the Securities Intermediary may deem necessary.
Notwithstanding anything contained herein to the contrary, neither the
Collateral Agent nor the Securities Intermediary shall be required to take any
action that is in its opinion contrary to law or to the terms of this Agreement,
or which would in its opinion subject it or any of its officers, employees or
directors to liability.

         SECTION 9.8 RESIGNATION OF COLLATERAL AGENT AND SECURITIES
INTERMEDIARY.

                  (a) Subject to the appointment and acceptance of a successor
         Collateral Agent as provided below:

                  (1) the Collateral Agent may resign at any time by giving
         notice thereof to the Company, the Purchase Contract Agent as
         attorney-in-fact for the Holders of PIES and the Trustee;

                  (2) the Collateral Agent may be removed at any time by the
         Company; and

                  (3) if the Collateral Agent fails to perform any of its
         material obligations hereunder in any material respect for a period of
         not less than 20 days after receiving written notice of such failure by
         the Purchase Contract Agent and such failure shall be continuing, the
         Collateral Agent may be removed by the Purchase Contract Agent;
         provided, however, that neither this provision nor any other provision
         of this Agreement or the Purchase Contract Agreement shall require the
         Purchase Contract Agent to keep itself informed as to or to monitor the
         performance or observance by the securities intermediary of its
         obligations hereunder.

The Purchase Contract Agent shall promptly notify the Company of any removal of
the Collateral Agent pursuant to clause (3) of the immediately preceding
sentence. Upon any such resignation or removal, the Company shall have the right
to appoint a successor Collateral Agent. If no successor Collateral Agent shall
have been so appointed and shall have accepted such appointment within 30 days
after the retiring Collateral Agent's giving of notice of resignation or such
removal, then the retiring Collateral Agent may petition any court of competent
jurisdiction for the appointment of a successor Collateral Agent. The Collateral
Agent shall be a bank which has [an office in New York, New York] with a
combined capital and surplus of at least $50,000,000 and shall not be the
Purchase Contract Agent or any of its affiliates. Upon the acceptance of any
appointment as Collateral Agent hereunder by a successor Collateral Agent, such
successor Collateral Agent shall thereupon succeed to and become vested with all
the

<PAGE>

                                                                              27

rights, powers, privileges and duties of the retiring Collateral Agent, and
the retiring Collateral Agent shall take all appropriate action to transfer any
money and property held by it hereunder (including the Collateral) to such
successor Collateral Agent. The retiring Collateral Agent shall, upon such
succession, be discharged from its duties and obligations as Collateral Agent
hereunder. After any retiring Collateral Agent's resignation hereunder as
Collateral Agent, the provisions of this Section 9 shall continue in effect for
its benefit in respect of any actions taken or omitted to be taken by it while
it was acting as the Collateral Agent. Any resignation or removal of the
Collateral Agent hereunder shall be deemed for all purposes of this Agreement as
the simultaneous resignation or removal, as the case may be, of the Securities
Intermediary.

                  (b) Subject to the appointment and acceptance of a successor
Securities Intermediary as provided below:

                  (1) the Securities Intermediary may resign at any time by
         giving notice thereof to the Company, the Purchase Contract Agent as
         attorney-in-fact for the Holders of PIES and the Trustee;

                  (2) the Securities Intermediary may be removed at any time by
         the Company; and

                  (3) if the Securities Intermediary fails to perform any of its
         material obligations hereunder in any material respect for a period of
         not less than 20 days after receiving written notice of such failure by
         the Purchase Contract Agent and such failure shall be continuing, the
         Securities Intermediary may be removed by the Purchase Contract Agent.

The Purchase Contract Agent shall promptly notify the Company of any removal of
the Securities Intermediary pursuant to clause (3) of the immediately preceding
sentence. Upon any such resignation or removal, the Company shall have the right
to appoint a successor Securities Intermediary. If no successor Securities
Intermediary shall have been so appointed and shall have accepted such
appointment within 30 days after the retiring Securities Intermediary's giving
of notice of resignation or such removal, then the retiring Securities
Intermediary may petition any court of competent jurisdiction for the
appointment of a successor Securities Intermediary. The Securities Intermediary
shall be a bank which has an office in New York, New York with a combined
capital and surplus of at least $50,000,000 and shall not be the Purchase
Contract Agent or any of its affiliates. Upon the acceptance of any appointment
as Securities Intermediary hereunder by a successor Securities Intermediary,
such successor Securities Intermediary shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring
Securities Intermediary, and the retiring Securities Intermediary shall take all
appropriate action to transfer any money and property held by it hereunder
(including the Collateral) to such successor Securities Intermediary. The
retiring Securities Intermediary shall, upon such succession, be discharged from
its duties and obligations as Securities Intermediary hereunder. After any
retiring Securities Intermediary's resignation hereunder as Securities
Intermediary, the provisions of this Section 9 shall continue in effect for its
benefit in respect of any actions taken or omitted to be taken by it while it
was acting as the Securities Intermediary.

<PAGE>

                                                                              28

         SECTION 9.9 RIGHT TO APPOINT AGENT OR ADVISOR.

                  The Collateral Agent shall have the right to appoint agents or
advisors in connection with any of its duties hereunder, and the Collateral
Agent shall not be liable for any action taken or omitted by, or in reliance
upon the advice of, such agents or advisors selected in good faith. The
appointment of agents pursuant to this Section 9.9 shall be subject to prior
consent of the Company, which consent shall not be unreasonably withheld.

         SECTION 9.10 SURVIVAL.

                  The provisions of this Section 9 shall survive termination of
this Agreement and the resignation or removal of the Collateral Agent or the
Securities Intermediary.

         SECTION 9.11 EXCULPATION.

                  Anything contained in this Agreement to the contrary
notwithstanding, in no event shall the Collateral Agent or the Securities
Intermediary or their officers, directors, employees or agents be liable under
this Agreement to any third party for indirect, special, punitive or
consequential loss or damage of any kind whatsoever, including lost profits,
whether or not the likelihood of such loss or damage was known to the Collateral
Agent or the Securities Intermediary, or any of them, incurred without any act
or deed that is found to be attributable to gross negligence or willful
misconduct on the part of the Collateral Agent or the Securities Intermediary.
Any and all exculpatory provisions, immunities and indemnities in favor of the
Collateral Agent or the Securities Intermediary under this Agreement shall inure
to the benefit of the Collateral Agent or the Securities Intermediary, as
applicable, in its individual capacity or as a party to any agreement referred
to herein or therein, whether or not expressly so provided.

Section 10.       AMENDMENT.

         SECTION 10.1 AMENDMENT WITHOUT CONSENT OF HOLDERS.

                  Without the consent of any Holders, the Company (when
authorized by a Board Resolution), the Collateral Agent, the Securities
Intermediary and the Purchase Contract Agent, at any time and from time to time,
may amend this Agreement, in form satisfactory to the Company, the Collateral
Agent, the Securities Intermediary and the Purchase Contract Agent, to:

                  (1) evidence the succession of another Person to the Company,
         and the assumption to by any such successor of the covenants of the
         Company;

                  (2) evidence and provide for the acceptance of appointment
         hereunder by a successor Collateral Agent, Securities Intermediary or
         Purchase Contract Agent;

                  (3) add to the covenants of the Company for the benefit of the
         Holders, or to surrender any right or power herein conferred upon the
         Company, PROVIDED such covenants or such surrender do not adversely
         affect the validity, perfection or priority of the Pledge created
         hereunder; or

                  (4) cure any ambiguity (or formal defect), to correct or
         supplement any provisions herein which may be inconsistent with any
         other such provisions herein, or to

<PAGE>

                                                                              29

         make any other provisions with respect to such matters or questions
         arising under this Agreement, PROVIDED such action shall not adversely
         affect the interests of the Holders.

         SECTION 10.2 AMENDMENT WITH CONSENT OF HOLDERS.

                  With the consent of the Holders of not less than a majority of
the Purchase Contracts at the time outstanding, by Act of said Holders delivered
to the Company, the Purchase Contract Agent, the Securities Intermediary and the
Collateral Agent, the Company, when duly authorized by a Board Resolution, the
Purchase Contract Agent, the Securities Intermediary and the Collateral Agent
may amend this Agreement for the purpose of modifying in any manner the
provisions of this Agreement or the rights of the Holders in respect of the
PIES; PROVIDED, HOWEVER, that no such supplemental agreement shall, without the
unanimous consent of the Holders of each Outstanding PIES adversely affected
thereby, other than as expressly contemplated by the Agreement,

                  (1) change the amount or type of Collateral underlying a PIES,
         impair the right of the Holder of any PIES to receive distributions on
         the underlying Collateral or otherwise adversely affect the Holder's
         rights in or to such Collateral;

                  (2) otherwise effect any action that would require the consent
         of the Holder of each Outstanding PIES affected thereby pursuant to the
         Purchase Contract Agreement if such action were effected by an
         agreement supplemental thereto; or

                  (3) reduce the percentage of Purchase Contracts the consent of
         whose Holders is required for any such amendment;

PROVIDED that if any amendment or proposal referred to above would adversely
affect only the Corporate PIES or only the Treasury PIES after PIES of such
class are created and remain Outstanding, then only the affected class of Holder
as of the record date for the Holders entitled to vote thereon will be entitled
to vote on such amendment or proposal, and such amendment or proposal shall not
be effective except with the consent of Holders of not less than a majority of
such class; PROVIDED, FURTHER, that the unanimous consent of the Holders of each
outstanding Purchase Contract of such class affected thereby shall be required
to approve any amendment or proposal specified in clauses (1) through (3) above.

                  It shall not be necessary for any Act of Holders under this
Section to approve the particular form of any proposed amendment, but it shall
be sufficient if such Act shall approve the substance thereof.

         SECTION 10.3 EXECUTION OF AMENDMENTS.

                  In executing any amendment permitted by this Section, the
Collateral Agent, the Securities Intermediary and the Purchase Contract Agent
shall be entitled to receive and (subject to Section 7.1 of the Purchase
Contract Agreement with respect to the Purchase Contract Agent) shall be fully
protected in relying upon, an Opinion of Counsel (as defined in the Purchase
Contract Agreement) stating that the execution of such amendment is authorized
or permitted by this Agreement and that all conditions precedent, if any, to the
execution and delivery of such amendment have been satisfied.

<PAGE>

                                                                              30

         SECTION 10.4 EFFECT OF AMENDMENTS.

                  Upon the execution of any amendment under this Section, this
Agreement shall be modified in accordance therewith, and such amendment shall
form a part of this Agreement for all purposes; and every Holder of Certificates
theretofore or thereafter authenticated, executed on behalf of the Holders and
delivered under the Purchase Contract Agreement shall be bound thereby.

         SECTION 10.5 REFERENCE TO AMENDMENTS.

                  Certificates authenticated, executed on behalf of the Holders
and delivered after the execution of any amendment pursuant to this Section may,
and shall if required by the Collateral Agent or the Purchase Contract Agent,
bear a notation in form approved by the Purchase Contract Agent and the
Collateral Agent as to any matter provided for in such amendment. If the Company
shall so determine, new Security Certificates so modified as to conform, in the
opinion of the Collateral Agent, the Purchase Contract Agent and the Company, to
any such amendment may be prepared and executed by the Company and
authenticated, executed on behalf of the Holders and delivered by the Purchase
Contract Agent in accordance with the Purchase Contract Agreement in exchange
for Outstanding PIES Certificates.

Section 11.       MERGER, CONSOLIDATION, SALE OR CONVEYANCE.

         SECTION 11.1 WHEN COMPANY MAY MERGE, ETC.

                  The Company shall not consolidate with or merge into, or sell,
lease (for a term extending beyond the last stated maturity of the PIES and the
Senior Notes then Outstanding) or convey all or substantially all of its assets
to, any Person or group of Affiliated Persons in one transaction or a series of
related transactions, unless the Company shall be the continuing corporation, or
the successor or transferee Person expressly assumes by one or more supplemental
agreements, in form satisfactory to the Collateral Agent, all the obligations of
the Company with respect to this Agreement, and the Company or the successor or
transferee Person, as the case may be, (i) shall be a Corporation organized and
existing under the laws of one of the states in the United States and (ii) shall
not, immediately after such consolidation or merger or sale, lease or
conveyance, be in default in the performance or any covenant or condition
hereunder. The Company shall deliver to the Collateral Agent an Officers'
Certificate (as defined in the Original Indenture) and an Opinion of Counsel (as
defined in the Original Indenture), each stating that such consolidation, merger
sale, lease or conveyance and such supplemental agreement comply with this
Agreement and that all conditions precedent to the consummation of any such
consolidation, or merger, or any sale, lease or conveyance have been met.

         SECTION 11.2 SUCCESSOR CORPORATION SUBSTITUTED.

                  Upon any consolidation or merger, or any sale, lease or
conveyance of all or substantially all of the assets of the Company in
accordance with Section 11.1, the successor corporation or the transferee
corporation formed by such consolidation or into which the Company is merged or
to which such transfer is made shall succeed to, and be substituted for,

<PAGE>

                                                                              31

and may exercise every right and power of, the Company under this Agreement with
the same effect as if such successor corporation had been named as the Company
herein.

                  Such successor or transferee Person thereupon may cause to be
signed, and may issue either in its own name or in the name of Sierra Pacific
Resources, any or all of the Certificates evidencing PIES issuable hereunder
which theretofore shall not have been signed by the Company and delivered to the
Purchase Contract Agent; and, upon the order of such successor or such
transferee Person, instead of the Company, and subject to all the terms,
conditions and limitations in this Agreement prescribed, the Purchase Contract
Agent shall authenticate and execute on behalf of the Holders and deliver any
Certificates which previously shall have been signed and delivered by the
officers of the Company to the Purchase Contract Agent for authentication and
execution, and any Certificate evidencing PIES which such successor corporation
or transferee corporation thereafter shall cause to be signed and delivered to
the Purchase Contract Agent for that purpose. All the Certificates issued shall
in all respects have the same legal rank and benefit under this Agreement as the
Certificates theretofore or thereafter issued in accordance with the terms of
this Agreement as though all of such Certificates had been issued at the date of
the execution hereof.

                  In case of any such merger, consolidation, share exchange,
sale, assignment, transfer, lease or conveyance such change in phraseology and
form (but not in substance) may be made in the Certificates evidencing PIES
thereafter to be issued as may be appropriate.

         SECTION 11.3 LIMITATION.

                  Nothing in this Agreement shall be deemed to prevent or
restrict; (a) any consolidation or merger after the consummation of which the
Company would be the surviving or resulting entity or any conveyance or other
transfer or lease of any part of the properties of the Company which does not
constitute the entirety, or substantially the entirety, thereof; or (b) the
approval by the Company of, or the consent by the Company to, any consolidation
or merger to which any Restricted Subsidiary (as defined in the Original
Indenture) or any other subsidiary or affiliate of the Company may be a party or
any conveyance, transfer or lease by any Subsidiary (as defined in the Original
Indenture) or any such other subsidiary or affiliate of any of its assets.

Section 12.       MISCELLANEOUS.

         SECTION 12.1 NO WAIVER.

                  No failure on the part of the Collateral Agent or any of its
agents to exercise, and no course of dealing with respect to, and no delay in
exercising, any right, power or remedy hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise by the Collateral Agent or any
of its agents of any right, power or remedy hereunder preclude any other or
further exercise thereof or the exercise of any other right, power or remedy.
The remedies herein are cumulative and are not exclusive of any remedies
provided by law.

         SECTION 12.2 GOVERNING LAW; JURISDICTION AND VENUE.

                  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

<PAGE>

                                                                              32

                  The Company, the Collateral Agent, the Securities
Intermediary, the Purchase Contract Agent and the Holders from time to time of
the PIES, acting through the Purchase Contract Agent as their attorney-in-fact,
hereby submit to the nonexclusive jurisdiction of the United States District
Court for the Southern District of New York and of any New York state court
sitting in New York City for the purposes of all legal proceedings arising out
of or relating to this Agreement or the transactions contemplated hereby. The
Company, the Collateral Agent, the Securities Intermediary and the Holders from
time to time of the PIES, acting through the Purchase Contract Agent as their
attorney-in-fact, irrevocably waive, to the fullest extent permitted by
applicable law, any objection which they may now or hereafter have to the laying
of the venue of any such proceeding brought in such a court and any claim that
any such proceeding brought in such a court has been brought in an inconvenient
forum.

         SECTION 12.3 NOTICES.

                  All notices, requests, consents and other communications
provided for herein (including, without limitation, any modifications of, or
waivers or consents under, this Agreement) shall be given or made in writing
(including, without limitation, by telecopy) delivered to the intended recipient
specified below. Except as otherwise provided in this Agreement, all such
communications shall be deemed to have been duly given when transmitted by
telecopier or personally delivered or, in the case of a mailed notice, upon
receipt, in each case given or addressed as aforesaid.

                  If to the Company:

                  Sierra Pacific Resources
                  6100 Neil Road
                  P.O. Box 30150
                  Reno, Nevada  89520-0400
                  Telecopier No.:__________
                  Attention:  (775) _________

                  If to the Collateral Agent or the Securities Intermediary:

                  Wells Fargo Bank Minnesota, N.A.
                  Sixth and Marquette
                  MAC N9303-120
                  Minneapolis, Minnesota  55479
                  Telecopier No.:   (612) 667-9825
                  Attention:  Jane Schweiger

                  If to the Purchase Contract Agent or the Trustee:

                  The Bank of New York
                  5 Penn Plaza, 13th Floor
                  New York, New York  10001
                  Telecopier No.:   (212) 896-7298
                  Attention:  Corporate Trust Administration

<PAGE>

                                                                              33

         SECTION 12.4 SUCCESSORS AND ASSIGNS.

                  This Agreement shall be binding upon and inure to the benefit
of the respective successors and assigns of the Company, the Collateral Agent,
the Securities Intermediary and the Purchase Contract Agent, and the Holders
from time to time of the PIES, by their acceptance of the same, shall be deemed
to have agreed to be bound by the provisions hereof and to have ratified the
agreements of, and the grant of the Pledge hereunder by, the Purchase Contract
Agent.

         SECTION 12.5 COUNTERPARTS.

                  This Agreement may be executed in any number of counterparts,
all of which taken together shall constitute one and the same instrument, and
any of the parties hereto may execute this Agreement by signing any such
counterpart.

         SECTION 12.6 EFFECT OF HEADINGS AND TABLE OF CONTENTS.

                  The headings and table of contents contained in this
Agreement shall not constitute a part, or to effect the meaning or
interpretation of, this Agreement.

         SECTION 12.7 SEVERABILITY.

                  If any provision hereof is invalid and unenforceable in any
jurisdiction, then, to the fullest extent permitted by law, (i) the other
provisions hereof shall remain in full force and effect in such jurisdiction and
shall be liberally construed in order to carry out the intentions of the parties
hereto as nearly as may be possible and (ii) the invalidity or unenforceability
of any provision hereof in any jurisdiction shall not affect the validity or
enforceability of such provision in any other jurisdiction.

         SECTION 12.8 EXPENSES, ETC.

                  The Company agrees to reimburse the Collateral Agent and the
Securities Intermediary for:

                  (1) all reasonable costs and expenses of the Collateral Agent
         and the Securities Intermediary (including, without limitation, the
         reasonable fees and expenses of counsel to the Collateral Agent and the
         Securities Intermediary), in connection with (i) the negotiation,
         preparation, execution and delivery or performance of this Agreement
         and (ii) any modification, supplement or waiver of any of the terms of
         this Agreement;

                  (2) all reasonable costs and expenses of the Collateral Agent
         and the Securities Intermediary (including, without limitation,
         reasonable fees and expenses of counsel) in connection with (i) any
         enforcement or proceedings resulting or incurred in connection with
         causing any Holder of PIES to satisfy its obligations under the
         Purchase Contracts forming a part of the PIES and (ii) the enforcement
         of this Section 12.8; and

                  (3) all transfer, stamp, documentary or other similar taxes,
         assessments or charges levied by any governmental or revenue authority
         in respect of this Agreement or any other document referred to herein
         and all costs, expenses, taxes, assessments and

<PAGE>

                                                                              34

         other charges incurred in connection with any filing, registration,
         recording or perfection of any security interest contemplated hereby.

         SECTION 12.9 SECURITY INTEREST ABSOLUTE.

                  All rights of the Collateral Agent and security interests
hereunder, and all obligations of the Holders from time to time hereunder, shall
be absolute and unconditional irrespective of:

                  (1) any lack of validity or enforceability of any provision of
         the Purchase Contracts or the PIES or any other agreement or instrument
         relating thereto;

                  (2) any change in the time, manner or place of payment of, or
         any other term of, or any increase in the amount of, all or any of the
         obligations of Holders of the PIES under the related Purchase
         Contracts, or any other amendment or waiver of any term of, or any
         consent to any departure from any requirement of, the Purchase Contract
         Agreement or any Purchase Contract or any other agreement or instrument
         relating thereto; or

                  (3) any other circumstance which might otherwise constitute a
         defense available to, or discharge of, a borrower, a guarantor or a
         pledgor.

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

                                           SIERRA PACIFIC RESOURCES

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

                                           THE BANK OF NEW YORK, not
                                           individually but solely as
                                           Purchase Contract Agent and
                                           as attorney-in-fact of the
                                           Holders from time to time
                                           of the PIES

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

                                           WELLS FARGO BANK MINNESOTA, N.A., as
                                           Collateral Agent

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

                                           WELLS FARGO BANK MINNESOTA, N.A., as
                                           Securities Intermediary

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

<PAGE>

                                                                      EXHIBIT A

                                     NOTICE
                FROM PURCHASE CONTRACT AGENT TO COLLATERAL AGENT
                           (Creation of Treasury PIES)

Wells Fargo Bank Minnesota, N.A., as Collateral Agent
Sixth and Marquette
MAC N9303-120
Minneapolis, Minnesota  55479
Attention: Jane Schweiger
Fax (612) 667-9825

                  Re: PIES OF SIERRA PACIFIC RESOURCES

         Reference is made to the Pledge Agreement dated as of November __, 2001
(the "Pledge Agreement"), among Sierra Pacific Resources (the "Company"), you,
as Collateral Agent and as Securities Intermediary, and the undersigned, as
Purchase Contract Agent and as attorney-in-fact for the holders of PIES from
time to time. Capitalized terms used herein but not defined shall have the
meanings attributable to them in the Pledge Agreement.

         We hereby notify you that, in accordance with Section 5.2 of the Pledge
Agreement and Section 3.13 of the Purchase Contract Agreement, the holder of
securities named below (the "Holder") has elected to substitute $__________
Value of Treasury Securities in exchange for an equal Value of Pledged Senior
Notes and has delivered to the undersigned Purchase Contract Agent a notice
stating that the Holder has Transferred such Treasury Securities to the
Securities Intermediary, for credit to the Collateral Account.

         We hereby request that you instruct the Securities Intermediary, upon
confirmation that such Treasury Securities have been credited to the Collateral
Account, to release to the undersigned Holder an equal Value of Pledged Senior
Notes in accordance with Section 5.2 of the Pledge Agreement.

                                              THE BANK OF NEW YORK,
                                              as Purchase Contract Agent

                                              By:______________________________
                                                 Name:
                                                 Title:
                                                 Date:

         Please print name and address of Holder electing to substitute Treasury
Securities or security entitlements thereto for the Pledged Senior Notes:

----------------------------------------------------
         Name of Holder

----------------------------------------------------
Social Security or Taxpayer Identification Number

----------------------------------------------------
         Address

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

<PAGE>

                                                                      EXHIBIT B

                                     NOTICE
                FROM COLLATERAL AGENT TO SECURITIES INTERMEDIARY
                           (Creation of Treasury PIES)

Wells Fargo Bank Minnesota, N.A., as Securities Intermediary
Sixth and Marquette
MAC N9303-120
Minneapolis, Minnesota  55479
Attention: Jane Schweiger
Fax (612) 667-9825

                  Re: PIES OF SIERRA PACIFIC RESOURCES

                      Securities Account No. _________ entitled "Wells Fargo
                      Bank Minnesota, N.A., as Collateral Agent, Securities
                      Account (Sierra Pacific Resources)" (the "Collateral
                      Account")

         Reference is made to the Pledge Agreement, dated as of November __,
2001 (the "Pledge Agreement"), among Sierra Pacific Resources (the "Company"),
you, as Securities Intermediary, The Bank of New York, as Purchase Contract
Agent and as attorney-in-fact for the holders of PIES from time to time, and the
undersigned, as Collateral Agent. Capitalized terms used herein but not defined
shall have the meanings attributable to them in the Pledge Agreement.

         When you have confirmed that $__________ Value of Treasury Securities
has been credited to the Collateral Account by or for the benefit of _________,
as Holder of PIES (the "Holder"), you are hereby instructed to release from the
Collateral Account an equal Value of Senior Notes by Transfer to the Purchase
Contract Agent in accordance with Section 5.2 of the Pledge Agreement.

                                   WELLS FARGO BANK MINNESOTA, N.A.,
                                   as Collateral Agent

                                   By:______________________________
                                      Name:
                                      Title:
                                      Date:

         Please print name and address of Holder:

----------------------------------------------------
         Name

----------------------------------------------------
Social Security or Taxpayer Identification Number

----------------------------------------------------
         Address

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

<PAGE>

                                                                      EXHIBIT C

                                     NOTICE
                FROM PURCHASE CONTRACT AGENT TO COLLATERAL AGENT
                         (Recreation of Corporate PIES)

Wells Fargo Bank Minnesota, N.A., as Collateral Agent
Sixth and Marquette
MAC N9303-120
Minneapolis, Minnesota  55479
Attention: Jane Schweiger
Fax (612) 667-9825

                  Re: PIES OF SIERRA PACIFIC RESOURCES

         Reference is made to the Pledge Agreement, dated as of November __,
2001 (the "Pledge Agreement"), among Sierra Pacific Company (the "Company"),
you, as Collateral Agent and as Securities Intermediary, and the undersigned, as
Purchase Contract Agent and as attorney-in-fact for the holders of PIES from
time to time. Capitalized terms used herein but not defined shall have the
meanings attributable to them in the Pledge Agreement.

         We hereby notify you that, in accordance with Section 5.3 of the Pledge
Agreement and Section 3.14 of the Purchase Contract Agreement, the holder of
securities listed below (the "Holder") has elected to substitute $__________
Value of Senior Notes in exchange for $__________ Value of Pledged Treasury
Securities and has delivered to the undersigned a notice stating that the Holder
has Transferred such Senior Notes or security entitlements thereto to the
Securities Intermediary, for credit to the Collateral Account.

         We hereby request that you instruct the Securities Intermediary, upon
confirmation that such Senior Notes have been credited to the Collateral
Account, to release to the undersigned Purchase Contract Agent an equal Value of
Treasury Securities or security entitlements thereto related to _____ Treasury
PIES of such Holder in accordance with Section 5.3 of the Pledge Agreement and
Section 3.14 of the Purchase Contract Agreement.

                                  THE BANK OF NEW YORK,
                                  as Purchase Contract Agent

                                  By:______________________________
                                     Name:
                                     Title:
                                     Date:

Please print name and address of Holder electing to substitute Pledged Senior
Notes or security entitlements thereto for Pledged Treasury Securities:

----------------------------------------------------
          Name

----------------------------------------------------
Social Security or Taxpayer Identification Number

----------------------------------------------------
          Address

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

<PAGE>

                                                                      EXHIBIT D

                                     NOTICE
                FROM COLLATERAL AGENT TO SECURITIES INTERMEDIARY
                         (Recreation of Corporate PIES)

Wells Fargo Bank Minnesota, N.A., as Securities Intermediary
Sixth and Marquette
MAC N9303-120
Minneapolis, Minnesota  55479
Attention: Jane Schweiger
Fax (612) 667-9825

                  Re: PIES OF SIERRA PACIFIC RESOURCES

                      Securities Account No. _________ entitled "Wells Fargo
                      Bank Minnesota, N.A., as Collateral Agent, Securities
                      Account (Sierra Pacific Resources)"

         Reference is made to the Pledge Agreement, dated as of November __,
2001 (the "Pledge Agreement"), among Sierra Pacific Resources (the "Company"),
you, as Securities Intermediary, The Bank of New York, as Purchase Contract
Agent and as attorney-in-fact for the holders of PIES from time to time, and the
undersigned, as Collateral Agent. Capitalized terms used herein but not defined
shall have the meanings attributable to them in the Pledge Agreement.

         When you have confirmed that $_________ Value of Senior Notes has been
credited to the Collateral Account by or for the benefit of _________, as Holder
of PIES (the "Holder"), you are hereby instructed to release from the Collateral
Account $__________ Value of Treasury Securities or security entitlements
thereto by Transfer to the Purchase Contract Agent in accordance with Section
5.3 of the Pledge Agreement.

                                           WELLS FARGO BANK MINNESOTA, N.A., as
                                           Collateral Agent

                                           By:______________________________
                                              Name:
                                              Title:
                                              Date:

Please print name and address of Holder:

----------------------------------------------------
          Name

----------------------------------------------------
Social Security or Taxpayer Identification Number

----------------------------------------------------
          Address

<PAGE>

                                                                      EXHIBIT E

                            NOTICE OF CASH SETTLEMENT
             FROM SECURITIES INTERMEDIARY TO PURCHASE CONTRACT AGENT
                            (Cash Settlement Amounts)

The Bank of New York, as Purchase Contract Agent
5 Penn Plaza, 13th Floor
New York, New York  10001
Attention: Corporate Trust Administration
Fax: (212) 896-7298

                  Re: PIES OF SIERRA PACIFIC RESOURCES

         Reference is made to the Pledge Agreement, dated as of November __,
2001 (the "Pledge Agreement"), among Sierra Pacific Resources (the "Company"),
you, as Purchase Contract Agent and as attorney-in-fact for the holders of PIES
from time to time, as Collateral Agent and the undersigned, as Securities
Intermediary. Capitalized terms used herein but not defined shall have the
meanings attributable to them in the Pledge Agreement.

         In accordance with Section [5.5(d)] [5.5(e)] of the Pledge Agreement,
we hereby notify you that as of 11:00 a.m. (New York City time), [on the fifth
Business Day immediately preceding the Purchase Contract Settlement Date] [on
the Business Day immediately preceding the Purchase Contract Settlement Date],
we have received [$_____ in immediately available funds paid in an aggregate
amount equal to the Purchase Price to the Company on the Purchase Contract
Settlement Date with respect to __________ Corporate PIES] [$_________ in
immediately available funds paid in an aggregate amount equal to the Purchase
Price to the Company on the Purchase Contract Settlement Date with respect to
______ Treasury PIES.]

                                              WELLS FARGO BANK MINNESOTA, N.A.,
                                              as Securities Intermediary

                                              By:______________________________
                                                 Name:
                                                 Title:
                                                 Date:

<PAGE>

                                                                      EXHIBIT F

                 NOTICE FROM HOLDER OF SEPARATED SENIOR NOTES TO
                     COLLATERAL AGENT REGARDING REMARKETING

Wells Fargo Bank Minnesota, N.A., as Collateral Agent
Sixth and Marquette
MAC N9303-120
Minneapolis, Minnesota  55479
Attention: Jane Schweiger
Fax (612) 667-9825

                  Re: SENIOR NOTES OF SIERRA PACIFIC RESOURCES

         Reference is made to the Pledge Agreement, dated as of November __,
2001 (the "Pledge Agreement"), among Sierra Pacific Resources (the "Company"),
you, as Collateral Agent, and as Securities Intermediary, and The Bank of New
York, as Purchase Contract Agent and as attorney-in-fact for the holders of PIES
from time to time. Capitalized terms used herein but not defined shall have the
meanings attributable to them in the Pledge Agreement.

         The undersigned hereby notifies you in accordance with Section 5.7 of
the Pledge Agreement, that the undersigned elects to have $_________ principal
amount of Senior Notes for delivery to the Remarketing Agent on the Business Day
immediately preceding the Initial Remarketing Date for such Senior Notes to be
included in any Remarketing. The undersigned will, upon request of the
Remarketing Agent, promptly execute and deliver any additional documents deemed
by the Remarketing Agent or by the Company to be necessary or desirable to
complete the sale, assignment and transfer of the Senior Notes which are the
subject of this notice.

         The undersigned hereby instructs the you, upon receipt of the Proceeds
of such Remarketing from the Remarketing Agent to deliver such Proceeds to the
undersigned in accordance with the instructions indicated below under "Payment
Instructions." The undersigned hereby instructs you, in the event of a
unsuccessful Remarketing, upon receipt of the Senior Notes tendered herewith
from the Remarketing Agent, to deliver the Senior Notes to the person(s) and at
the address(es) indicated below under "Delivery Instructions." The undersigned
acknowledges and agrees that the Collateral Agent and the Remarketing Agent may
withhold from the Proceeds such amounts as they may determine to be appropriate
in respect of taxes which may be applicable.

         With this notice, the undersigned hereby (i) represents and warrants
that the undersigned has full power and authority to tender, sell, assign and
transfer the Notes tendered hereby and that the undersigned is the record owner
of any Notes tendered herewith in physical form or a participant in The
Depository Trust Company ("DTC") and the beneficial owner of any Notes tendered
herewith by book-entry transfer to your account at DTC and (ii) agrees to be
bound by the terms and conditions of the Pledge Agreement.

Please print name and address of Holder:

----------------------------------------------------
          Name

----------------------------------------------------
Social Security or Taxpayer Identification Number

----------------------------------------------------
          Address

<PAGE>

                              HOLDER'S INSTRUCTIONS

(A) Payment Instructions

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

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

(B) Delivery Instructions

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

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

<PAGE>

                                                                      EXHIBIT G

                       NOTICE FROM PURCHASE CONTRACT AGENT
                               TO COLLATERAL AGENT

Wells Fargo Bank Minnesota, N.A., as Collateral Agent
Sixth and Marquette
MAC N9303-120
Minneapolis, Minnesota  55479
Attention: Jane Schweiger
Fax (612) 667-9825

                  Re:SENIOR NOTES OF SIERRA PACIFIC RESOURCES

                  Reference is made to the Pledge Agreement, dated as of
November __, 2001 (the "Pledge Agreement"), among Sierra Pacific Resources (the
"Company"), you, as Collateral Agent and Securities Intermediary, and the
undersigned, as Purchase Contract Agent and as attorney-in-fact for the holders
of PIES from time to time. Capitalized terms used herein but not defined shall
have the meanings attributable to them in the Pledge Agreement.

                  The undersigned hereby notifies you, in accordance with
paragraph 19(i)(B) of the Indenture Officers' Certificate and Section 5.8 of the
Pledge Agreement, that the undersigned has received notice from the Holder named
below (the "Holder") that the Holder has elected not to participate in the
Remarketing through compliance with the procedures for creating Treasury PIES
set forth in Section 3.13 of the Purchase Contract Agreement and Section 5.2 of
the Pledge Agreement.

                  Accordingly, the undersigned hereby notifies you in accordance
with Section 3.13 of the Purchase Contract Agreement and Section 5.2 of the
Pledge Agreement that the Holder has elected to substitute $______________ Value
of Treasury Securities in exchange for an equal Value of Pledged Senior Notes
and has delivered to the undersigned a notice stating that the Holder has
Transferred such Treasury Securities to the Securities Intermediary, for credit
to the Collateral Account.

                  The undersigned hereby requests that you as the Collateral
Agent, upon confirmation from the Securities Intermediary that such Treasury
Securities have been credited to the Collateral Account, release to us for
delivery to such Holder _________ principal amount of the Pledged Senior Note in
accordance with Section 5.2 of the Pledge Agreement.

                                     THE BANK OF NEW YORK,
                                     as Purchase Contract Agent

                                     By:______________________________
                                        Name:
                                        Title:
                                        Date:<Page>

                                                                    Exhibit 4.10

================================================================================

                                     FORM OF

                              REMARKETING AGREEMENT

                                     BETWEEN

                            SIERRA PACIFIC RESOURCES

                                       AND

                   LEHMAN BROTHERS INC., AS REMARKETING AGENT

                                     ------

                          DATED AS OF NOVEMBER __, 2001

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                               PAGE
                                                                                                               ----
<S>               <C>                                                                                          <C>
Section 1.        Definitions.....................................................................................1

Section 2.        Appointment and Obligations of the Remarketing Agent............................................5

Section 3.        Representations, Warranties and Agreements of the Company.......................................8

Section 4.        Reimbursement of Expenses......................................................................17

Section 5.        Further Agreements of the Company..............................................................17

Section 6.        Conditions to the Remarketing Agent's Obligations..............................................19

Section 7.        Indemnification and Contribution...............................................................28

Section 8.        Resignation and Removal of the Remarketing Agent...............................................32

Section 9.        Dealing in the Remarketing Senior Notes........................................................32

Section 10.       Remarketing Agent's Performance; Duty of Care..................................................33

Section 11.       Merger Consolidation, Sale or Conveyance.......................................................33

Section 12.       Termination....................................................................................34

Section 13.       Notices........................................................................................35

Section 14.       Persons Entitled to Benefit of Agreement.......................................................35

Section 15.       Survival.......................................................................................35

Section 16.       Governing Law..................................................................................36

Section 17.       Jurisdiction; Venue............................................................................36

Section 18.       Counterparts...................................................................................36

Section 19.       Headings.......................................................................................36

Section 20.       Severability...................................................................................36
</Table>

                                      -i-

<PAGE>

                            SIERRA PACIFIC RESOURCES

                           ___% SENIOR NOTES DUE 2007

                              REMARKETING AGREEMENT

                                                               November __, 2001

LEHMAN BROTHERS INC.
Three World Financial Center
New York, New York  10285

Ladies and Gentlemen:

       Lehman Brothers Inc. is undertaking to remarket the ___% Senior Notes due
2007 (the "Senior Notes") of Sierra Pacific Resources, a Nevada corporation (the
"Company"), pursuant to the Indenture, dated as of May 1, 2000 (the "Original
Indenture"), and the Officers' Certificate, dated as of November __, 2001,
establishing the terms and the other provisions of the Senior Notes (the
"Indenture Officers' Certificate" and, together with the Original Indenture, the
"Indenture"), in each case, between the Company and The Bank of New York, as
Trustee (the "Trustee").

       Section 1. DEFINITIONS.

       For all purposes of this Agreement, except as otherwise expressly
provided or unless the context otherwise requires:

       (a) the terms defined in this Section have the meanings assigned to them
in this Section and include the plural as well as the singular;

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

       (c) capitalized terms used and not defined in this Agreement shall have
the meanings set forth in the Purchase Contract Agreement, dated as of November
__, 2001 (the "Purchase Contract Agreement"), between the Company and The Bank
of New York, as Purchase Contract Agent (the "Purchase Contract Agent"), or in
the Indenture, as each of the same may be amended, modified or supplemented from
time to time in accordance with the terms thereof; and

       (d) as used in this Agreement, the following terms have the following
meanings:

            "Agreement" means this Remarketing Agreement as the same may be
       amended, modified or supplemented from time to time in accordance with
       the terms hereof.

            "Applicable Spread" means the spread corresponding to the Prevailing
       Rating of the Senior Notes, as set forth below, in effect at the close of
       business on the Business Day immediately preceding the date of the Failed
       Remarketing, if applicable:

<Page>

                                                                               2

<Table>
<Caption>
                  PREVAILING RATING                                                    SPREAD
                  -----------------                                                    ------
<S>                                                                                    <C>
                  AA/Aa2.............................................................  3.00%
                  A/A2...............................................................  4.00%
                  BBB/Baa2...........................................................  5.00%
                  Below BBB/Baa2.....................................................  7.00%
</Table>
            "Authorized Newspaper" means THE WALL STREET JOURNAL, another daily
       newspaper in the English language of general circulation in New York, New
       York that is acceptable to the Remarketing Agent or, at the discretion of
       the Remarketing Agent after consultation with the Company, a nationally
       recognized quotation system that would be an effective medium of
       publicizing the event to be publicized.

            "Blue Sky Application" has the meaning set forth in Section 7(a).

            "Commencement Date" has the meaning set forth in Section 3.

            "Commission" has the meaning set forth in Section 3(b).

            "Depositary Participant" has the meaning set forth in Section
       2(d)(i).

            "Effective Date" has the meaning set forth in Section 3(b).

            "Effective Time" has the meaning set forth in Section 3(b).

            "Exchange Act" has the meaning set forth in Section 3(b).

            "Failed Remarketing" has the meaning set forth in Section 2(f).

            "Final Remarketing" has the meaning set forth in Section 2(c).

            "Final Remarketing Date" has the meaning set forth in Section 2(c).

            "Initial Remarketing" has the meaning set forth in Section 2(b).

            "Initial Remarketing Date" has the meaning set forth in Section
       2(b).

            "Investment Company Act" has the meaning set forth in Section
       [3(k).]

            "Material Adverse Effect" has the meaning set forth in Section 3(h).

            "Pledge Agreement" means the Pledge Agreement, dated as of the date
       hereof, among the Company, the Collateral Agent, the Securities
       Intermediary and the Purchase Contract Agent, on its own behalf and as
       attorney-in-fact for the Holders from time to time of the Securities, as
       the same may be amended, modified or supplemented from time to time in
       accordance with the terms thereof.

            "Pledged Senior Notes" has the meaning set forth in Section 1 of the
       Pledge Agreement.

            "Preliminary Prospectus" has the meaning set forth in Section 3(b).

<Page>

                                                                               3

            "Prevailing Rating," for the purposes of the definition of
       Applicable Spread, means:

            (a) AA/Aa2 if the Senior Notes have a credit rating of AA or better
       by Standard & Poor's Ratings Services, Inc. ("S&P") AND Aa2 or better by
       Moody's Corporation ("Moody's") or the equivalent of such ratings by such
       agencies or a substitute rating agency or substitute rating agencies
       selected by the Remarketing Agent;

            (b) if not under clause (i) above, then A/A2 if the Senior Notes
       have a credit rating of A or better by S&P AND A2 or better by Moody's or
       the equivalent of such ratings by such agencies or a substitute rating
       agency or substitute rating agencies selected by the Remarketing Agent;

            (c) if not under clauses (i) or (ii) above, then BBB/Baa2 if the
       Senior Notes have a credit rating of BBB or better by S&P AND Baa2 or
       better by Moody's or the equivalent of such ratings by such agencies or a
       substitute rating agency or substitute rating agencies selected by the
       Remarketing Agent; or

            (d) if not under clauses (i), (ii) or (iii) above, then Below
       BBB/Baa2.

            Notwithstanding the foregoing, (A) if (i) the credit rating of the
       Senior Notes by S&P shall be on the "Credit Watch" of S&P with a
       designation of "negative implications" or "developing", or (ii) the
       credit rating of the Senior Notes by Moody's shall be on the "Corporate
       Credit Watch List" of Moody's with a designation of "downgrade" or
       "uncertain", or, in each case, on any successor list of S&P or Moody's
       with a comparable designation, the Prevailing Ratings of the Senior Notes
       shall be deemed to be within a range one full level lower in the table
       set forth in the definition of Applicable Spread than those actually
       assigned to the Senior Notes by S&P and Moody's and (B) if the Senior
       Notes are rated by only one rating agency prior to or on the Remarketing
       Date, the Prevailing Rating shall at all times be determined without
       reference to the rating of any other rating agency; PROVIDED that, if no
       such rating agency shall have in effect a rating for the Senior Notes and
       the Remarketing Agent is unable to identify a substitute rating agency or
       rating agencies, the Prevailing Rating shall be Below BBB/Baa2.

            "Principal Amount" means the principal amount of a Senior Note, or
       $50.

            "Proceeds" has the meaning set forth in Section 1 of the Pledge
       Agreement.

            "Prospectus" has the meaning set forth in Section 3(b).

            "Registration Statement" has the meaning set forth in Section 3(b).

            "Remarketing" means the remarketing of the Remarketing Senior Notes
       pursuant to the Remarketing Procedures.

            "Remarketing Agent" has the meaning set forth in Section 2(a).

            "Remarketing Date" has the meaning set forth in Section 2(d).

            "Remarketing Materials" has the meaning set forth in Section 3(b).

<Page>

                                                                               4

            "Remarketing Procedures" means, collectively, the procedures and
       requirements relating to the Remarketing and the determination of the
       Reset Rate as set forth in the Indenture Officers' Certificate, the
       Purchase Contract Agreement, the Pledge Agreement and this Agreement.

            "Remarketing Senior Notes" means collectively (1) the Pledged Senior
       Notes that comprise part of Corporate PIES, other than those Pledged
       Senior Notes of Holders that have elected not to participate in the
       Remarketing pursuant to Section 5.3(e) of the Purchase Contract
       Agreement, and (2) the Separated Senior Notes of holders that have
       elected to participate in the Remarketing pursuant to paragraph 19(i) of
       the Indenture Officers' Certificate and Section 5.7 of the Pledge
       Agreement, in each case, which are subject to the Remarketing, as
       identified to the Remarketing Agent by the Purchase Contract Agent (with
       respect to the Pledged Senior Notes to be remarketed) and the Collateral
       Agent (with respect to the Separated Senior Notes to be remarketed) by
       11:00 a.m. (New York City time), on the Business Day preceding the
       Initial Remarketing Date and, if applicable, the Final Remarketing Date,
       the Remarketing Agent having been notified of the aggregate principal
       amount of such Remarketing Senior Notes by the Purchase Contract Agent,
       the Collateral Agent or the Trustee, pursuant to the Purchase Contract
       Agreement, Pledge Agreement or Indenture, as the case may be.

            "Remarketing Settlement Date" has the meaning set forth in Section
       2(d).

            "Reset Rate" has the meaning set forth in the Indenture.

            "Securities" has the meaning set forth in Section 3(j).

            "Securities Act" has the meaning set forth in Section 3(b).

            "Significant Subsidiary" has the meaning set forth in Section 3(i).

            "Subsequent Remarketing" has the meaning set forth in Section 2(c).

            "Subsequent Remarketing Date" has the meaning set forth in Section
       2(c).

            "Successful Remarketing" has the meaning set forth in Section 2(d).

            "Transaction" has the meaning set forth in Section 3(j).

            "Two-Year Benchmark Rate" means the bid side rate displayed at 10:00
       a.m., New York City time, on the third Business Day preceding the
       Purchase Contract Settlement Date for direct obligations of the United
       States having a maturity comparable to the remaining term to the Stated
       Maturity of the Senior Notes, as agreed upon by the Company and the
       Remarketing Agent as displayed in the Telerate system or, if the Telerate
       system is no longer available or, in the judgment of the Remarketing
       Agent (after consultation with the Company), no longer an appropriate
       system from which to obtain such rate, such other nationally recognized
       quotation system as, in the judgment of the Remarketing Agent (after
       consultation with the Company) is appropriate. If this rate is not so
       displayed, the Two-Year Benchmark Rate will be calculated by the
       Remarketing Agent as the yield to maturity for direct obligations of the
       United States having a maturity comparable to the remaining

<Page>

                                                                               5

       term to the Stated Maturity of the Senior Notes, expressed as a bond
       equivalent on the basis of a year of 365 or 366 days, as applicable, and
       applied on a daily basis, and computed by taking the arithmetic mean of
       the secondary market bid rates, as of 10:30 a.m. (New York City time) on
       the third Business Day preceding the Purchase Contract Settlement Date of
       three leading United States government securities dealers selected by the
       Remarketing Agent (after consultation with the Company) (which may
       include the Remarketing Agent or an Affiliate thereof). However, if, in
       the judgment of the Remarketing Agent, after consultation with the
       Company, direct obligations of the United States are no longer
       appropriate benchmarks for the purpose of setting the Reset Rate if a
       Failed Remarketing has occurred, the Remarketing Agent and the Company
       will agree upon another Two-Year Benchmark Rate.

       Section 2. APPOINTMENT AND OBLIGATIONS OF THE REMARKETING AGENT.

       (a) The Company hereby appoints Lehman Brothers Inc. as exclusive
remarketing agent (the "Remarketing Agent"), and, upon the terms and subject to
the conditions set forth in this Agreement, Lehman Brothers Inc. hereby accepts
such appointment. The Remarketing Agent agrees to (1) use its commercially
reasonable efforts to remarket the Remarketing Senior Notes tendered to the
Remarketing Agent, pursuant to the Indenture and the Purchase Contract
Agreement, in the Remarketing and, in connection therewith, to determine the
Reset Rate as set forth in this Agreement and the Indenture and (2) carry out
such other duties as are assigned to the Remarketing Agent herein, in each case,
in accordance with the Remarketing Procedures.

       (b) On __________, 2005 (the "Initial Remarketing Date"), the Remarketing
Agent shall use its commercially reasonable efforts to remarket (the "Initial
Remarketing"), at a price at least equal to the Remarketing Value, the
Remarketing Senior Notes tendered for purchase, pursuant to the Remarketing
Procedures having been notified of the aggregate principal amount of such
Remarketing Senior Notes by the Purchase Contract Agent and the Collateral Agent
pursuant to Section 5.3 of the Purchase Contract Agreement. If, as a result of
such efforts, the Remarketing Agent determines that it will be able to remarket
all of the Remarketing Senior Notes tendered or deemed tendered for purchase at
a price at least equal to the Remarketing Value prior to 4:00 p.m. (New York
City time) on the Initial Remarketing Date, the Remarketing Agent shall
determine the Reset Rate that will enable it to remarket all Remarketing Senior
Notes tendered or deemed tendered for Remarketing at an interest rate on the
Initial Remarketing Date sufficient to allow the Remarketing to occur at a price
equal to the Remarketing Value.

       (c) If, despite the commercially reasonable efforts described in the
preceding paragraph, the Remarketing Agent cannot remarket the Remarketing
Senior Notes on the Initial Remarketing Date, the Remarketing Agent will
continue to use its commercially reasonable efforts to remarket the Remarketing
Senior Notes (i) on one or more subsequent occasions from the Initial
Remarketing Date to, and including, the ninth Business Day preceding the
Purchase Contract Settlement Date and (ii) if necessary, on the third Business
Day preceding the Purchase Contract Settlement Date, and in connection therewith
to determine the Reset Rate at an interest rate on the Remarketing Date, if any,
sufficient to allow the Remarketing at a price equal to the Remarketing Value as
set forth herein and (each such subsequent Remarketing up to and including the
ninth Business Day preceding the Purchase Contract Settlement Date being
referred to as a "Subsequent Remarketing," and each such date to be referred to
as, a "Subsequent Remarketing Date"; and the Remarketing on the third Business
Day preceding the Purchase Contract Settlement Date, being referred to as the
"Final Remarketing," and such date to be referred to as, the "Final Remarketing

<Page>

                                                                               6

Date;"), in each case in accordance with the Remarketing Procedures, PROVIDED
that, the Final Remarketing, if at all, must occur no later than on the third
Business Day immediately preceding the Purchase Contract Settlement Date.

       (d) If any Remarketing is successful (a "Successful Remarketing" and,
such date to be referred to as the "Remarketing Date"), then:

            (i) By approximately 4:30 p.m. (New York City time) on such
       Remarketing Date, (A) the Remarketing Agent shall advise by telephone the
       Company, the Purchase Contract Agent, the Collateral Agent, the
       Securities Intermediary, the Depositary and the Trustee, of the Reset
       Rate determined in the Remarketing, (B) the Remarketing Agent shall
       advise each purchaser or DTC participant (the "Depositary Participant")
       thereof purchasing Senior Notes sold in the Remarketing of the Reset Rate
       and the number of Senior Notes such purchaser is to purchase and (C) the
       Remarketing Agent shall request each purchaser to give instructions to
       its Depositary Participant to pay the purchase price on the third
       Business Day after the Remarketing Date (the "Remarketing Settlement
       Date") in same day funds against delivery of the remarketed Remarketing
       Senior Notes purchased through the facilities of the Depositary.

            In accordance with the Depositary's normal procedures, on the
       Remarketing Settlement Date or the Purchase Contract Settlement Date, as
       applicable, the transactions described above with respect to each Senior
       Notes remarketed in the Remarketing shall be executed through the
       Depositary, and the accounts of the respective Depositary Participants
       shall be debited and credited, respectively, and such Remarketing Senior
       Notes delivered by book-entry, as necessary to effect purchases and sales
       of such Remarketing Senior Notes; PROVIDED that, the settlement
       procedures set forth herein, including provisions for payment by
       purchasers of the Remarketing Senior Notes in the Remarketing, shall be
       subject to modification to the extent required by the Depositary or if
       the book-entry system is no longer available for the Remarketing Senior
       Notes at the time of the Remarketing, to facilitate the remarketing of
       the Remarketing Senior Notes in certificated form and the Remarketing
       Agent may modify such settlement procedures in order to facilitate the
       settlement process.

            (ii) Upon receipt of the proceeds from a Successful Remarketing, the
       Remarketing Agent shall:

                   (A) deduct and retain for itself an amount equal to .25% of
            the principal amount of the remarketed Remarketing Senior Notes as a
            fee for the performance of its services as Remarketing Agent
            hereunder;

                   (B) (I) if the Successful Remarketing occurs prior to the
            third Business Day preceding the Purchase Contract Settlement Date,
            use the remaining proceeds with respect to the Pledged Senior Notes
            from such Successful Remarketing to purchase the Treasury Portfolio,
            in open market transactions and/or at Treasury auctions, in the
            amount and types of Treasury securities describe in clauses (1)(i)
            and (2)(ii) of the definition of Remarketing Value related to the
            Pledged Senior Notes, deliver such Treasury Portfolio to the
            Collateral Agent on the Remarketing Settlement Date or as soon
            thereafter as is practicable, or (II) if such Successful Remarketing
            occurs on the Final Remarketing Date, remit to the Collateral Agent
            the portion of the remaining

<Page>

                                                                               7

            proceeds with respect to the Pledged Senior Notes from such
            Successful Remarketing to be delivered to the Purchase Contract
            Agent in settlement of the Purchase Contracts on the Purchase
            Contract Settlement Date;

                   (C) if any Separated Senior Notes were included in such
            successful Remarketing, remit to the Collateral Agent for payment to
            the holders of such Separated Senior Notes sold in such Successful
            Remarketing the remaining proceeds with respect to such remarketed
            Separated Senior Notes from the Remarketing less the remarketing fee
            in an amount equal to 100% of the principal amount of such
            Remarketing Senior Notes; and

                   (D) remit any remaining balance of such proceeds after the
            application of such proceeds as set forth in clauses (A) through (C)
            above, if any, to the Purchase Contract Agent for the benefit of the
            Holders of the remarketed Pledged Senior Notes and to the Collateral
            Agent for the for the holders of any remarketed Separated Senior
            Notes, on a pro rata basis;

PROVIDED, HOWEVER, that if such Successful Remarketing is consummated after 4:30
p.m. (New York City time) on such Remarketing Date and, despite using its
commercially reasonable efforts, the Remarketing Agent cannot cause the
applications of the proceeds specified above to occur on such Remarketing Date,
then the Remarketing Agent may make such applications and remittances on the
next succeeding Business Day. The Remarketing Agent may, in its discretion,
communicate with holders of the Senior Notes, and prospective purchasers of
Remarketing Senior Notes, in connection with its remarketing efforts in order to
facilitate the remarketing and the intent and purpose of this Agreement despite
the fact that such communication may not be expressly required herein.

       (e) If, by 4:00 p.m. (New York City time) on the ninth Business Day
preceding the Purchase Contract Settlement Date, the Remarketing Agent, despite
using its commercially reasonable efforts, has been and is unable to remarket
all of the Remarketing Senior Notes tendered for purchase at a price equal to at
least the Remarketing Value, the Remarketing Agent shall Transfer to the
Collateral Agent, by the sixth Business Day preceding the Purchase Contract
Settlement Date, the Pledged Senior Notes that were to be remarketed in the
Initial Remarketing or Subsequent Remarketing, whereupon the Collateral Agent
shall, for the benefit of the Company, apply such Pledged Senior Notes, to
secure the obligation of the related Holders of Corporate PIES to purchase
Common Stock under the related Purchase Contracts.

       (f) If, (1) by 4:00 p.m. (New York City time), on the Final Remarketing
Date, the Remarketing Agent, despite using its commercially reasonable efforts,
has been and is unable to remarket all of the Remarketing Senior Notes tendered
for purchase at a price equal to at least the Remarketing Value, or (2) the
Remarketing Agent has determined that the Remarketing may not be commenced or
consummated as contemplated herein and by the Remarketing Procedures under
applicable law, a failed Remarketing (a "Failed Remarketing") shall be deemed to
have occurred. If a Failed Remarketing occurs, the Remarketing Agent and the
Company, as applicable, shall take the following actions:

            (i) The Remarketing Agent shall notify by telephone the Company,
       Purchase Contract Agent, the Collateral Agent and the Trustee, that a
       Failed Remarketing has

<Page>

                                                                               8

       occurred, whereupon the Company shall notify the Depositary, by
       telephone, that a Failed Remarketing has occurred.

            (ii) The Company shall cause a notice of the Failed Remarketing to
       be sent to the holders of all Senior Notes and to be published, in an
       Authorized Newspaper, in each case, no later than the Business Day
       preceding Purchase Contract Settlement Date.

            (iii) The Remarketing Agent shall determine the Reset Rate that will
       be equal to the Two Year Benchmark Treasury plus the Applicable Spread in
       accordance to paragraph 19(ii) of the Indenture Officers' Certificate.

            (iv) The Remarketing Agent shall remit the Pledged Senior Notes that
       were to be remarketed to the Purchase Contract Agent and the Separated
       Senior Notes that were to be remarketed to the Collateral Agent.

       (g) If all of the holders of Corporate PIES elect not to participate in
the Remarketing and no holders of Separated Senior Notes elect to participate in
the Remarketing and deliver such Separated Senior Notes and a notice of such
election to the Collateral Agent by the Election Date, in accordance with the
Indenture Officers' Certificate, then:

            (i) the Remarketing Agent shall, in its sole discretion, determine
       the rate that, in its judgment, would have been established had a
       Remarketing been held on the Final Remarketing Date, and such rate shall
       be the Reset Rate;

            (ii) the Remarketing Agent shall advise by telephone the Company and
       the Trustee of such Reset Rate, whereupon the Company shall notify the
       Depositary in writing of such Reset Rate; and

            (iii) the Company shall cause a notice of such Reset Rate to be sent
       to the holders of all Senior Notes and to be published in an Authorized
       Newspaper, in each case, no later than the Business Day preceding the
       Purchase Contract Settlement Date.

       Section 3. REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF THE COMPANY.

       The Company represents, warrants and agrees (i) on and as of the date
hereof, (ii) on and as of the date of any Remarketing Materials (each as defined
in Section 3(a) below) are first distributed in connection with the Remarketing
(the "Commencement Date"), (iii) on and as of the Remarketing Date and (iv) on
and as of the Purchase Contract Settlement Date that:

            (a) Registration statements on Form S-3 (File No.'s 333-80149 and
       333-72160) and an amendment or amendments thereto with respect to the
       initial offering of the Senior Notes and other securities of the Company
       (together, the "Registration Statement") have (i) been prepared by the
       Company in conformity with the requirements of the Securities Act of
       1933, as amended, and the rules and regulations of the Securities and
       Exchange Commission (the "Commission") thereunder (collectively, the
       "Securities Act"), (ii) been filed with the Commission under the
       Securities Act and (iii) become effective under the Securities Act. In
       addition, a registration statement on Form S-3 of the Company, if
       required to be filed in connection with the Remarketing, will also be
       prepared by the Company in conformity with the requirements of the
       Securities Act and filed with the

<Page>

                                                                               9

       Commission under the Securities Act and be effective on or before the
       Initial Remarketing Date and such registration statement shall be
       included in the definition of "Registration Statement" herein. Copies of
       such registration statements that have become effective, and the
       amendment or amendments to such registration statements, have been
       delivered by the Company to the Remarketing Agent, in the case of
       documents not electronically available through the Commission's EDGAR
       filing system and, in the case of documents that are so available, to the
       extent requested by the Remarketing Agent.

            As used in this Agreement, "Effective Time" means the date and time
       as of which the last of such registration statements that have become
       effective or may be filed, or the most recent post-effective amendment
       thereto, if any, was declared effective by the Commission; "Effective
       Date" means the date of the Effective Time of such last registration
       statement; "Preliminary Prospectus" means each prospectus relating to the
       Remarketing Senior Notes included in such last registration statement, or
       amendment thereto, before it became effective under the Securities Act
       and any prospectus relating to the Remarketing Senior Notes filed by the
       Company pursuant to Rule 424(a) of the Securities Act; "Registration
       Statement" means such last registration statement, as amended at its
       Effective Time, including documents incorporated by reference therein at
       such time and, if applicable, all information contained in the final
       prospectus filed with the Commission pursuant to Rule 424(b) of the
       Securities Act, including any information deemed to be part of such
       Registration Statement as of the Effective Time pursuant to paragraph (b)
       of Rule 430A of the Securities Act; and "Prospectus" means each final
       prospectus relating to the Remarketing Senior Notes, as first filed
       pursuant to Rule 424(b) of the Securities Act.

            Reference made herein to any Preliminary Prospectus, the Prospectus
       or any other information furnished by the Company to the Remarketing
       Agent for distribution to investors in connection with the Remarketing
       (such other information, the "Remarketing Materials") shall be deemed to
       refer to and include any documents incorporated by reference therein
       pursuant to Item 12 of Form S-3 under the Securities Act as of the date
       of such Preliminary Prospectus or the Prospectus, as the case may be, or,
       in the case of Remarketing Materials, referred to as incorporated by
       reference therein, and any reference to any amendment or supplement to
       any Preliminary Prospectus, the Prospectus or the Remarketing Materials
       shall be deemed to refer to and include any document filed under the
       Securities Exchange Act of 1934, as amended, and the rules and
       regulations of the Commission thereunder (collectively, the "Exchange
       Act"), after the date of such Preliminary Prospectus or the Prospectus
       incorporated by reference therein pursuant to Item 12 of Form S-3 or, if
       so incorporated, the Remarketing Materials, as the case may be; and any
       reference to any amendment to the Registration Statement shall be deemed
       to include any annual report of the Company filed with the Commission
       pursuant to Section 13(a) or 15(d) of the Exchange Act after the
       Effective Time that is incorporated by reference in the Registration
       Statement.

            (b) The Commission has not issued an order preventing or suspending
       the use of the Registration Statement, any Preliminary Prospectus, the
       Prospectus or any Remarketing Materials.

            (c) The Registration Statement conforms (and the Prospectus and any
       further amendments or supplements to the Registration Statement or the
       Prospectus, when they become effective or are filed with the Commission,
       as the case may be, will conform) in all

<Page>

                                                                              10

       respects to the requirements of the Securities Act; and the Registration
       Statement, the Prospectus and the Remarketing Materials do not and will
       not, as of the Effective Date (as to the Registration Statement and any
       amendment thereto), as of the applicable filing date (as to the
       Prospectus and any amendment or supplement thereto) and (as to the
       Registration Statement, the Prospectus and any Remarketing Materials)
       contain and will contain any untrue statement of a material fact or omit
       to state a material fact required to be stated therein or necessary to
       make the statements therein not misleading; PROVIDED that no
       representation and warranty is made as to the statement of eligibility
       and qualification on Form T-1 of the Trustee under the Trust Indenture
       Act, or as to information contained in or omitted from the Registration
       Statement, the Prospectus or the Remarketing Materials in reliance upon
       and in conformity with written information furnished to the Company by
       the Remarketing Agent specifically for inclusion therein; the Indenture
       conforms in all material respects to the requirements of the Trust
       Indenture Act.

            (d) The conditions for use of Form S-3, as set forth in the General
       Instructions thereto, have been satisfied.

            (e) The Registration Statement conforms, and the Prospectus and any
       further amendments or supplements to the Registration Statement or the
       Prospectus will, when they become effective or are filed with the
       Commission, as the case may be, conform in all respects to the
       requirements of the Securities Act and do not and will not, as of the
       applicable Effective Date (as to the Registration Statement and any
       amendment thereto) and as of the applicable filing date (as to the
       Prospectus and any amendment or supplement thereto) contain an untrue
       statement of a material fact or omit to state a material fact required to
       be stated therein or necessary to make the statements therein not
       misleading; provided that, the Company makes no representation or
       warranty as to information contained in or omitted from the Registration
       Statement or the Prospectus in reliance upon and in conformity with
       written information furnished to the Company by the Remarketing Agreement
       specifically for inclusion therein. The Indenture conforms in all
       material respects to the requirements of the Trust Indenture Act.

            (f) The documents incorporated by reference in the Registration
       Statement or the Prospectus when they became effective or were filed with
       the Commission, as the case may be, conformed in all material respects to
       the requirements of the Securities Act or the Exchange Act, as
       applicable, and none of such documents contained any untrue statement of
       a material fact or omitted to state any material fact required to be
       stated therein or necessary to make the statements therein not
       misleading; and any further documents so filed and incorporated by
       reference in the Prospectus, when such documents are filed with the
       Commission, will conform in all material respects to the requirements of
       the Exchange Act and will not contain any untrue statement of a material
       fact or omit to state any material fact required to be stated therein or
       necessary to make the statements therein, in light of the circumstances
       in which they were made, not misleading.

            (g) Each of the Company and its Significant Subsidiaries (as defined
       below) has been duly organized and is validly existing as a corporation
       in good standing under the laws of the State of Nevada, is duly qualified
       to do business and is in good standing as a foreign business entity in
       each jurisdiction in which its ownership or lease of property or the
       conduct of its businesses requires such qualification, and has all
       corporate power and authority necessary to own, lease or hold its
       properties and to conduct the businesses in

<Page>

                                                                              11

       which it is engaged, except where the failure to so qualify or to be in
       good standing would not have a material adverse effect on the business,
       affairs, management, condition (financial or otherwise), stockholders'
       equity or results of operations of the Company and its subsidiaries
       considered as a whole (a "Material Adverse Effect"); and none of the
       subsidiaries of the Company other than Nevada Power Company and Sierra
       Pacific Power Company is a "significant subsidiary", as such term is
       defined in Rule 405 of the Securities Act (each, a "Significant
       Subsidiary").

            (h) The Company has an authorized capitalization as set forth in the
       Company's consolidated statement of capitalization as of December 31,
       2001 incorporated by reference in the Prospectus; all of the issued
       shares of capital stock of the Company have been duly and validly
       authorized and issued and are fully paid and non-assessable; all of the
       issued shares of capital stock or other ownership interests of each
       subsidiary of the Company have been duly and validly authorized and
       issued and are fully paid and non-assessable; and all shares of the
       issued and outstanding common stock of the Company's Significant
       Subsidiaries are owned by the Company; and all shares of capital stock or
       other ownership interests of each subsidiary of the Company which are
       owned, directly or indirectly, by the Company are so owned free and clear
       of all liens, encumbrances, equities, claims or adverse interests
       (collectively, "Liens") of any nature. There has been no change in the
       outstanding capital stock of the Company or any of its subsidiaries since
       September 30, 2001 in the Prospectus except with respect to changes in
       outstanding Common Stock resulting from transactions relating to employee
       benefit plans, non-employee director plans or the common stock investment
       plan existing on the date hereof.

            (i) Except as described in the Prospectus, there are no legal or
       governmental proceedings pending to which the Company or any of its
       subsidiaries is a party or of which any property or assets of the Company
       or any of its subsidiaries is the subject which, if determined adversely
       to the Company or such subsidiary, would be reasonably likely to result
       in a Material Adverse Effect; and, to the best of the Company's
       knowledge, no such proceedings are threatened or contemplated by
       governmental authorities or threatened by others.

            (j) Except circumstances which are not reasonably likely,
       individually or in the aggregate, to result in a Material Adverse Effect,
       neither the Company nor any of its subsidiaries (i) is in violation of
       its charter or by-laws, (ii) is in default, and no event has occurred
       which, with notice or lapse of time or both, would constitute such a
       default, in the due performance or observance of any term, covenant or
       condition contained in any indenture, mortgage, deed of trust, loan
       agreement or other agreement or instrument to which it is a party or by
       which it is bound or to which any of its properties or assets is subject
       or (iii) is in violation of any law, ordinance, governmental rule,
       regulation or court decree to which it or its property or assets may be
       subject or has failed to obtain any license, permit, certificate,
       franchise or other governmental authorization or permit relating to the
       ownership of its property or to the conduct of its business.

            (k) Except as described in the Prospectus, there are no contracts,
       agreements or understandings between the Company and any person granting
       such person the right to require the Company to file a registration
       statement under the Securities Act with respect to any securities of the
       Company owned or to be owned by such person.

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                                                                              12

            (l) Except as set forth in or contemplated by the Prospectus, (i)
       neither the Company nor any of its subsidiaries has sustained, since the
       date of the latest audited financial statements included in the
       Prospectus, any material loss or interference with its business from
       fire, explosion, flood or other calamity, whether or not covered by
       insurance, or from any labor dispute or court or governmental action,
       order or decree (a "Material Loss"); and, (ii) since such date, there has
       not been any change in the capital stock, short-term debt or long-term
       debt of the Company or any of its subsidiaries or any material adverse
       change, or any development reasonably likely to result in a material
       adverse change, in or affecting the business, general affairs,
       management, consolidated financial position, stockholders' equity, or
       results of operations of the Company and its subsidiaries considered as a
       whole (a "Material Adverse Change").

            (m) The financial statements (including the related notes and
       supporting schedules) incorporated by reference in the Prospectus (and
       any supplement thereto) present fairly the financial condition, the
       results of operations and the changes in financial position of the
       Company and its consolidated subsidiaries on the basis stated therein at
       the respective dates or for the respective periods to which they apply;
       such statements and related schedules and notes have been prepared in
       accordance with generally accepted accounting principles consistently
       applied, except as noted therein, throughout the periods involved; the
       supporting schedules, if any, incorporated by reference in the Prospectus
       present fairly in accordance with generally accepted accounting
       principles the information required to be stated therein; and the other
       financial and statistical information and data set forth or incorporated
       by reference in the Prospectus (and any supplement thereto) are, in all
       material respects, accurately presented and prepared on a basis
       consistent with such financial statements and the books and records of
       the Company.

            [(n) The pro forma financial statements of the Company and its
       consolidated subsidiaries and the related notes thereto in the Prospectus
       (and any supplement thereto), if any, have been prepared on a basis
       consistent with the historical financial statements of the Company and
       its consolidated subsidiaries, give effect to the assumptions used in the
       preparation thereof on a reasonable basis and in good faith and present
       fairly the transactions purported to be presented. Such pro forma
       financial statements have been prepared in accordance with the applicable
       requirements of Rule 11-02 of Regulation S-X promulgated by the
       Commission. The other pro forma financial and statistical information and
       data incorporated by reference in the Prospectus (and any supplement
       thereto) are, in all material respects, accurately presented and prepared
       on a basis consistent with the pro forma financial statements.]

            (o) Deloitte & Touche LLP (the "Accountants"), who have certified
       the financial statements of the Company and whose report is incorporated
       by reference in the Prospectus are independent public accountants as
       required by the Securities Act; and the Accountants were independent
       accountants as required by the Securities Act during the periods covered
       by the financial statements on which they reported.

            (p) The Company and its Significant Subsidiaries have good and
       marketable title in fee simple to all real property and good and
       marketable title to all personal property owned by them, in each case
       free and clear of all liens, encumbrances and defects, except such as are
       (i) described or referred to in the Prospectus or (ii) do not,
       individually or in the aggregate, affect the value of such property or
       interfere with the use made and proposed to

<Page>

                                                                              13

       be made of such property to such extent as might reasonably be expected
       to result in a Material Adverse Effect; and all assets held under lease
       by the Company and its Significant Subsidiaries are held by them under
       valid, subsisting and enforceable leases, with such exceptions as are not
       material to the Company and its subsidiaries considered as a whole, and
       such leases do not interfere with the use made and proposed to be made of
       such property and buildings by the Company and its Significant
       Subsidiaries to such extent as would be reasonably likely to result in a
       Material Adverse Effect.

            (q) Each of the Company and its Significant Subsidiaries has such
       permits, licenses, consents, exemptions, franchises, authorizations and
       other approvals (each, an "Authorization") of, and has made all filings
       with and notices to, all governmental or regulatory authorities and
       self-regulatory organizations and all courts and other tribunals,
       including, without limitation, under any applicable environmental law,
       ordinance, rule, regulation, order, judgment, decree or permit, as are
       necessary to own, lease, license and operate its respective properties
       and to conduct its business, except where the failure to have any such
       Authorization or to make any such filing or notice would not have a
       Material Adverse Effect. Except for circumstances which are not
       reasonably likely to result in a Material Adverse Effect, (i) each such
       Authorization is valid and in full force and effect and each of the
       Company and its Significant Subsidiaries, as the case may be, is in
       compliance with all the terms and conditions thereof and with the rules
       and regulations of the authorities and governing bodies having
       jurisdiction with respect thereto; (ii) no event has occurred (including,
       without limitation, the receipt of any notice from any authority or
       governing body) which allows or, after notice or lapse of time or both,
       would allow, revocation, suspension or termination of any such
       Authorization or results or, after notice or lapse of time or both, would
       result in any other impairment of the rights of the holder of any such
       Authorization; and (iii) except as disclosed in the Prospectus, such
       Authorizations contain no restrictions that are burdensome to the Company
       or any of its Significant Subsidiaries.

            (r) Since the date as of which information is given in the
       Prospectus and except as otherwise disclosed in the Prospectus, (i)
       neither the Company nor any of its Significant Subsidiaries has incurred
       any liability or obligation, direct or contingent, or entered into any
       transaction which liability, obligation or transaction is (A) not in the
       ordinary course of business and (B) material with respect to the Company
       and its subsidiaries considered as a whole, and (ii) the Company has not
       declared or paid any dividend on any of its capital stock except for
       dividends on the Common Stock in amounts per share that are consistent
       with past practice.

            (s) The Company has all power and authority necessary to execute and
       deliver this Agreement and perform its obligations hereunder; this
       Agreement and the transactions contemplated hereby have been duly
       authorized by the Company; this Agreement has been duly executed and
       delivered by the Company, and this Agreement conforms in all material
       respects to the description thereof contained in the Prospectus.

            (t) The Company has all power and authority necessary to execute and
       deliver the Purchase Contract Agreement and perform its obligations
       thereunder; the Purchase Contract Agreement and the transactions
       contemplated thereby have been duly authorized by the Company; the
       Purchase Contract Agreement has been duly executed and delivered by the
       Company and, assuming due authorization, execution and delivery by the
       Purchase

<Page>

                                                                              14

       Contract Agent, it constitutes a legally valid and binding agreement of
       the Company, enforceable against the Company in accordance with its
       terms, subject to the effects of bankruptcy, insolvency, fraudulent
       conveyance, reorganization, moratorium and other similar laws relating to
       or affecting creditors' rights generally, general equitable principles
       (whether considered in a proceeding in equity or at law) and an implied
       covenant of good faith and fair dealing; and the Purchase Contract
       Agreement conforms or will conform, as the case may be, in all material
       respects to the description thereof contained in the Prospectus.

            (u) The Corporate PIES have been duly executed and delivered by the
       Company (assuming due execution by the Purchase Contract Agent as
       attorney-in-fact for the holders thereof and due authentication by the
       Purchase Contract Agent), have been duly and validly issued and
       outstanding and constitute legally valid and binding obligations of the
       Company, entitled to the benefits of the Purchase Contract Agreement and
       enforceable against the Company in accordance with their terms, subject
       to the effects of bankruptcy, insolvency, fraudulent conveyance,
       reorganization, moratorium and other similar laws relating to or
       affecting creditors rights generally, general equitable principles
       (whether considered in a proceeding in equity or at law) and an implied
       covenant of good faith and fair dealing; and the Corporate PIES conform
       or will conform, as the case may be, in all material respects to the
       description thereof contained in the Prospectus.

            (v) The Treasury PIES have been executed and delivered by the
       Company (assuming due execution by the Purchase Contract Agent as
       attorney-in-fact for the holders thereof and due authentication by the
       Purchase Contract Agent) and, upon substitution of the requisite number
       of Treasury Securities for the applicable Senior Notes as set forth in
       the Prospectus, will be duly and validly issued and outstanding and will
       constitute legally valid and binding obligations of the Company, entitled
       to the benefits of the Purchase Contract Agreement and enforceable
       against the Company in accordance with their terms, subject to the
       effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
       moratorium and other similar laws relating to or affecting creditors
       rights generally, general equitable principles (whether considered in a
       proceeding in equity or at law) and an implied covenant of good faith and
       fair dealing; and the Treasury PIES will conform, if issued, to the
       description thereof contained in the Prospectus.

            (w) The Company had all necessary corporate power and authority to
       execute and deliver the Indenture and had and continues to have all
       necessary corporate power and authority to perform its obligations
       thereunder; the Indenture and the transactions contemplated thereby have
       been duly authorized by the Company; the Indenture has been duly executed
       and delivered by the Company and, assuming due authorization, execution
       and delivery by the Trustee, it constitutes a legally valid and binding
       agreement of the Company, enforceable against the Company in accordance
       with its terms, subject to the effects of bankruptcy, insolvency,
       fraudulent conveyance, reorganization, moratorium and other similar laws
       relating to or affecting creditors' rights generally, general equitable
       principles (whether considered in a proceeding in equity or at law) and
       an implied covenant of good faith and fair dealing; the Indenture has
       been duly qualified under the Trust Indenture Act; and the Indenture
       conforms or will conform, as the case may be, in all material respects to
       the description thereof contained in the Prospectus.

<Page>

                                                                              15

            (x) The Senior Notes have been duly executed, authenticated, issued
       and delivered as contemplated by the Indenture against payment of the
       agreed consideration therefor, have been duly and validly issued and
       outstanding and constitute legally valid and binding obligations of the
       Company, entitled to the benefits of the Indenture and enforceable
       against the Company in accordance with their terms, subject to the
       effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
       moratorium and other similar laws relating to or affecting creditors'
       rights generally, general equitable principles (whether considered in a
       proceeding in equity or at law) and an implied covenant of good faith and
       fair dealing; and the Senior Notes conform or will conform, as the case
       may be, in all material respects to the description thereof contained in
       the Prospectus.

            (y) The Company has all necessary power and authority to execute and
       deliver the Pledge Agreement and perform its obligations thereunder; the
       Pledge Agreement and the transactions contemplated thereby have been duly
       authorized by the Company; the Pledge Agreement has been duly executed
       and delivered by the Company and, assuming due authorization, execution
       and delivery by the Purchase Contract Agent, the Securities Intermediary
       and the Collateral Agent, it constitutes a legally valid and binding
       agreement of the Company, enforceable against the Company in accordance
       with its terms, subject to the effects of bankruptcy, insolvency,
       fraudulent conveyance, reorganization, moratorium and other similar laws
       relating to or affecting creditors' rights generally, general equitable
       principles (whether considered in a proceeding in equity or at law) and
       an implied covenant of good faith and fair dealing; and the Pledge
       Agreement conforms or will conform, as the case may be, in all material
       respects to the description thereof contained in the Prospectus.

            (z) The Company has all necessary power and authority to execute and
       deliver the Remarketing Agreement and perform its obligations thereunder;
       the Remarketing Agreement and the transactions contemplated thereby have
       been duly authorized by the Company and, assuming due authorization,
       execution and delivery by the Remarketing Agent, it constitutes a legally
       valid and binding agreement of the Company, enforceable against the
       company in accordance with its terms, subject to the effect of
       bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium
       and other similar laws relating to or affecting creditors' rights
       generally, general equitable principles (whether considered in a
       proceeding in equity or at law) and an implied covenant of good faith and
       fair dealing, and except with respect to the rights of indemnification
       and contribution hereunder, where enforcement hereof may be limited by
       federal or state securities laws or the policies underlying such laws;
       the Remarketing Agreement has been duly executed and delivered by the
       Company; and the Remarketing Agreement conform or will conform, as the
       case may be, in all material respects to the description thereof
       contained in the Prospectus.

            (aa) The unissued shares of common stock to be issued and sold by
       the Company upon settlement of the Purchase Contracts have been duly
       authorized and reserved for issuance and, when issued and delivered in
       accordance with the provisions of the Purchase Contracts, will be duly
       and validly issued, fully paid and non-assessable and will conform in all
       material respects to the description thereof contained in the Prospectus.

            (bb) [Except as described in the Prospectus,] there are no
       preemptive or other rights to subscribe for or to purchase, nor is there
       any restriction on the voting or transfer of, any of the Corporate PIES,
       the Treasury PIES, the Stock Purchase Contracts, the Senior

<Page>

                                                                              16

       Notes or any shares of Common Stock (collectively, the "Securities")
       pursuant to the Company's articles of incorporation or by-laws or any
       agreement or instrument, except such preemptive or other rights and/or
       restrictions as relate to the transactions contemplated by the Stock
       Purchase Agreement, the Pledge Agreement and the Indenture.

            (cc) The execution, delivery and performance of this Agreement, the
       Purchase Contract Agreement, the Indenture and the Pledge Agreement
       (collectively, the "Transaction Agreements") and the consummation by the
       Company of the transactions contemplated hereby and thereby, including
       without limitation the Remarketing of the Remarketing Senior Notes
       (collectively, the "Transactions"), did not and will not, as the case may
       be, (i) conflict with or result in a breach or violation of any of the
       terms or provisions of, or constitute a default under, any indenture,
       mortgage, deed of trust, loan agreement or other agreement or instrument
       to which the Company or any of its subsidiaries is a party or by which
       the Company or any of its subsidiaries is bound or to which any of the
       properties or assets of the Company or any of its subsidiaries is
       subject, which would be reasonably likely to result in a Material Adverse
       Effect, (ii) result in any violation of the provisions of the charter or
       by-laws of the Company or any of its subsidiaries, (iii) result in any
       violation of any statute or any order, rule or regulation of any court or
       governmental agency or body having jurisdiction over the Company or any
       of its subsidiaries or any of their respective properties or assets,
       which would be reasonably likely to result in a Material Adverse Effect
       or (iv) require any material consent, approval, authorization or order
       of, or filing or registration with, any such court or governmental agency
       or body for the consummation of the Transactions, except for (A) the
       registration of the Remarketing Senior Notes in connection with the
       Remarketing under the Securities Act, if applicable, (B) the
       qualification of the Indenture under the Trust Indenture Act and (C) such
       consents, approvals, authorizations, registrations or qualifications as
       may be required under the Exchange Act and applicable state securities
       laws in connection with the Remarketing of the Senior Notes, if
       applicable.

            (dd) Neither the Company nor any subsidiary is or an "investment
       company" as defined, and subject to regulation, under the Investment
       Company Act of 1940, as amended, and the rules and regulations of the
       Commission thereunder (the "Investment Company Act").

            (ee) The Company is a "holding company" under the Public Utility
       Holding Company Act of 1935, as amended (the "Holding Company Act"), but,
       pursuant to Section 3(a)(1) of the Holding Company Act, is exempt from
       all provisions of the Holding Company Act except Section 9(a)(2) thereof.

            (ff) Each certificate signed by any officer of the Company and
       delivered to the Remarketing Agent or counsel for the Remarketing Agent
       shall be deemed to be a representation and warranty by the Company to the
       Remarketing Agent as to the matters covered thereby.

       Any certificate signed by any officer of the Company or any of its
subsidiaries and delivered to the Remarketing Agent or to counsel for the
Remarketing Agent in connection with the Remarketing shall be deemed a
representation and warranty by the Company to the Remarketing Agent as to the
matters covered thereby on the date of such certificate.

<Page>

                                                                              17

       Section 4. REIMBURSEMENT OF EXPENSES.

       The Company agrees to pay the following expenses, whether or not the
Remarketing is consummated or this Agreement is terminated, promptly upon
receipt of a request therefor:

            (1) the costs incident to the preparation and printing of the
       Registration Statement, Prospectus and any Remarketing Materials and any
       amendments or supplements thereto, including all related registration and
       filing fees;

            (2) the costs of distributing the Registration Statement, Prospectus
       and any Remarketing Materials and any amendments or supplements thereto;

            (3) the fees and expenses of qualifying the Remarketing Senior Notes
       under the securities laws of the several jurisdictions as provided in
       Section 6(f) and of preparing, printing and distributing a U.S. and, if
       necessary, a Canadian, Blue Sky Memorandum (including related fees and
       expenses of counsel to the Remarketing Agent);

            (4) all other costs and expenses incident to the performance of the
       obligations of the Company hereunder, including the fees and expenses of
       the Company's counsel; and

            (5) the fees and expenses of outside counsel to the Remarketing
       Agent in connection with its duties hereunder.

       Section 5. FURTHER AGREEMENTS OF THE COMPANY.

       The Company covenants and agrees as follows:

            (a) (1) To use its reasonable best efforts to file with and cause to
       be declared effective by the Commission under the Securities Act, prior
       to fifth Business Day preceding the Initial Remarketing Date, an
       additional registration statement relating to the Remarketing Senior
       Notes in connection with the Remarketing, in a form approved by the
       Remarketing Agent, if in the opinion of counsel to the Remarketing Agent
       such additional registration statement is required in connection with the
       Remarketing under applicable law;

                   (2) to advise the Remarketing Agent, promptly after it
            receives notice thereof, of the time when any amendment to the
            Registration Statement has been filed or becomes effective or any
            supplement to the Prospectus or any amended Prospectus has been
            filed, in each such case excluding any documents filed under the
            Exchange Act and which are incorporated by reference therein, and to
            furnish the Remarketing Agent with copies thereof; PROVIDED,
            HOWEVER, that the Company shall not be required to provide the
            Remarketing Agent with any such reports or similar forms that have
            been filed with the Commission by electronic transmission pursuant
            to EDGAR;

                   (3) to prepare the Prospectus for the Remarketing and to
            timely file it with the Commission under the Securities Act and to
            file promptly all reports and any definitive proxy or information
            statements required to be filed by the Company

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                                                                              18

            with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of
            the Exchange Act subsequent to the date of the Prospectus and for so
            long as the delivery of a prospectus is required in connection with
            the offering or sale of the Remarketing Senior Notes; and

                   (4) to advise the Remarketing Agent, promptly after it
            receives notice thereof, of the issuance by the Commission of any
            stop order or of any order preventing or suspending the use of the
            Prospectus, of the suspension of the qualification of any of the
            Remarketing Senior Notes for offering or sale in any jurisdiction,
            of the initiation or threatening of any proceeding for any such
            purpose, or of any request by the Commission for the amending or
            supplementing of the Registration Statement or the Prospectus or for
            additional information; and, in the event of the issuance of any
            stop order or of any order preventing or suspending the use of any
            Prospectus or suspending any such qualification, to use promptly its
            best efforts to obtain its withdrawal.

            (b) To deliver to the Remarketing Agent in New York City such number
       of the following documents as the Remarketing Agent shall reasonably
       request at the times specified below: (i) conformed copies of the
       Registration Statement as originally filed with the Commission and each
       amendment thereto (in each case excluding exhibits other than this
       Agreement and the Indenture) promptly after such filing, (ii) the
       Prospectus and any amended or supplemented Prospectus promptly after the
       preparation and/or printing thereof, as applicable, but in no event later
       than the third Business Day prior to the Initial Remarketing Date, (iii)
       any document incorporated by reference in the Prospectus (excluding
       exhibits thereto) promptly after their filing with the Commission and
       (iv) any Remarketing Materials promptly after their preparation, if at
       all; and, if the delivery of a prospectus is required at any time in
       connection with the Remarketing and if, at such time, any event shall
       have occurred as a result of which the Prospectus as then amended or
       supplemented would include any untrue statement of a material fact or
       omit to state any material fact necessary in order to make the statements
       therein, in the light of the circumstances under which they were made
       when such Prospectus is delivered, not misleading, or if for any other
       reason in the opinion of counsel to the Company or the Remarketing Agent
       it shall be necessary during such same period to amend or supplement the
       Registration Statement or Prospectus or to file under the Exchange Act
       any document incorporated by reference in the Prospectus in order to
       comply with the Securities Act or the Exchange Act, to notify the
       Remarketing Agent and to file such document and to prepare and furnish
       without charge to the Remarketing Agent and to any dealer in Senior Notes
       as many copies as the Remarketing Agent may from time to time request of
       an amended or supplemented Prospectus which will correct such statement
       or omission or effect such compliance, promptly after their preparation
       and/or filing, if at all.

            (c) To file promptly with the Commission any amendment to the
       Registration Statement, the Prospectus or any supplement to the
       Prospectus that may, in the judgment of the Company or the Remarketing
       Agent, be required by the Securities Act or requested by the Commission.

            (d) Prior to filing with the Commission (i) any amendment to the
       Registration Statement or supplement to the Prospectus (excluding
       documents filed under the Exchange Act incorporated by reference) or (ii)
       any Prospectus pursuant to Rule 424 of the Securities

<Page>

                                                                              19

       Act, to furnish a copy thereof to the Remarketing Agent and counsel to
       the Remarketing Agent, and not to file any such amendment or supplement
       which shall be reasonably disapproved by the Remarketing Agent promptly
       after reasonable notice.

            (e) As soon as practicable after the Effective Date to make
       generally available to the Company's security holders and to deliver to
       the Remarketing Agent an earnings statement of the Company and its
       subsidiaries (which need not be audited) complying with Section 11(a) of
       the Securities Act (including, at the option of the Company, Rule 158 of
       the Securities Act).

            (f) Promptly from time to time to take such action as the
       Remarketing Agent may reasonably request to qualify any of the
       Remarketing Senior Notes for offer and sale under the securities laws of
       such jurisdictions as the Remarketing Agent may request and to comply
       with such laws so as to permit the continuance of sales and dealings
       therein in such jurisdictions for as long as may be necessary to complete
       the Remarketing; PROVIDED that, in connection therewith, the Company
       shall not be required to qualify as a foreign corporation or to file a
       general consent to service of process in any jurisdiction in which it is
       not so qualified or to submit to any requirements which it deems unduly
       burdensome.

            (g) For a period of two years following the Effective Date or so
       long as any of the Senior Notes shall remain outstanding, whichever is
       shorter, to furnish to the Remarketing Agent copies of such materials
       furnished by the Company to the holders of any class of its capital stock
       and to furnish to the Remarketing Agent a copy of each annual or other
       report it shall be required to file with the Commission and such other
       information concerning the Company and its subsidiaries as the
       Remarketing Agent may reasonably request; PROVIDED, HOWEVER, that the
       Company shall not be required to provide the Remarketing Agent with any
       such reports or similar forms that have been filed with the Commission by
       electronic transmission pursuant to EDGAR.

            (h) To request, not later than 15 calendar days nor more than 30
       calendar days prior to the Initial Remarketing Date, that the Depositary
       notify its Participants holding Corporate PIES or Separated Senior Notes
       of the impending Initial Remarketing.

       Section 6. CONDITIONS TO THE REMARKETING AGENT'S OBLIGATIONS.

       The obligations of the Remarketing Agent hereunder are subject to (i) the
accuracy, on and as of the date when made, of the representations and warranties
of the Company contained herein or in any certificates of any officer of the
Company delivered pursuant hereto, (ii) the performance by the Company of the
covenants set forth in Section 5 hereof and its other obligations hereunder and
(iii) each of the following additional conditions:

            (a) The Prospectus shall have been filed with the Commission
       pursuant to Section 5(a) hereof; no stop order suspending the
       effectiveness of the Registration Statement or any part thereof or
       suspending the qualification of the Indenture, shall have been issued and
       no proceeding for that purpose shall have been initiated or threatened by
       the Commission; and any request of the Commission for inclusion of
       additional information in the Registration Statement or the Prospectus or
       otherwise shall have been complied with.

<Page>

                                                                              20

            (b) The Remarketing Agent shall not have discovered and disclosed to
       the Company on or prior to the Remarketing Date that the Registration
       Statement, the Prospectus or the Remarketing Materials or any amendment
       or supplement thereto contains any untrue statement of a fact which, in
       the opinion of counsel to the Remarketing Agent, is material or omits to
       state any fact which, in the opinion of such counsel, is material and is
       required to be stated therein or is necessary to make the statements
       therein not misleading and the Company shall not have filed an amendment
       or supplement to the Registration Statement or otherwise acted to correct
       the matter so disclosed.

            (c) All corporate proceedings and other legal matters incident to
       the authorization, form and validity of this Agreement, the Indenture,
       the Remarketing Senior Notes, the Prospectus, the Registration Statement,
       the Remarketing Materials and all other legal matters relating to this
       Agreement and the transactions contemplated hereby, including
       satisfaction of relevant conditions of applicable law, shall be
       reasonably satisfactory in all material respects to counsel to the
       Remarketing Agent, and the Company shall have furnished to such counsel
       all documents and information that they may reasonably request to enable
       them to pass upon such matters.

            (d) The Company, the Purchase Contract Agent, the Collateral Agent
       and the Trustee shall have performed their respective obligations in
       connection with the Initial Remarketing, any Subsequent Remarketing or,
       if applicable, Final Remarketing, in each case pursuant to the Stock
       Purchase Agreement, the Pledge Agreement, the Indenture and this
       Agreement, including, without limitation, by providing the Remarketing
       Agent with timely and accurate notice of the aggregate principal amount
       of the Remarketing Senior Notes to be remarketed pursuant to the Purchase
       Contract Agreement, the Pledge Agreement and the Indenture.

            (e) Woodburn and Wedge, Nevada counsel to the Company, shall have
       furnished to the Remarketing Agent its written opinion, addressed to the
       Remarketing Agent and dated the Remarketing Settlement Date, in form and
       substance satisfactory to the Remarketing Agent, to the effect that:

                   [(i) The Company and each of its Significant Subsidiaries
            have been duly incorporated and are validly existing as
            corporations in good standing under the laws of the State of
            Nevada, are duly qualified to do business and are in good
            standing as foreign corporations in each jurisdiction in which
            their respective ownership or lease of property or the conduct of
            their respective businesses requires such qualification and have
            all corporate power and authority necessary to own or hold their
            respective properties and conduct the businesses in which they
            are engaged, except where the failure to so qualify or to be in
            good standing would not have a Material Adverse Effect.

                   (ii) The Company has all power and authority necessary to
            execute and deliver each of the Transaction Agreements, to perform
            its obligations thereunder and to issue the Securities; and the
            Company has duly authorized, executed and delivered each of the
            Transaction Agreements.

                   (iii) The execution, delivery and performance of the
            Transaction Agreements and the consummation by the Company of the
            Transactions, did not and

<Page>

                                                                              21

            will not, as the case may be, (i) conflict with or result in a
            breach or violation of any of the terms or provisions of, or
            constitute a default under, any indenture, mortgage, deed of trust,
            loan agreement or other agreement or instrument to which the Company
            or any of its subsidiaries is a party or by which the Company or any
            of its subsidiaries is bound or to which any of the properties or
            assets of the Company or any of its subsidiaries is subject, which
            would be reasonably likely to result in a Material Adverse Effect,
            (ii) result in any violation of the provisions of the charter or
            by-laws of the Company or any of its subsidiaries, (iii) result in
            any violation of any statute or any order, rule or regulation of any
            court or governmental agency or body having jurisdiction over the
            Company or any of its subsidiaries or any of their respective
            properties or assets, which would be reasonably likely to result in
            a Material Adverse Effect or (iv) require any material consent,
            approval, authorization or order of, or filing or registration with,
            any such court or governmental agency or body for the consummation
            of the Transactions, except for (A) the registration of the
            Remarketing Senior Notes in connection with the Remarketing under
            the Securities Act, if applicable, (B) the qualification of the
            Indenture under the Trust Indenture Act and (C) such consents,
            approvals, authorizations, registrations or qualifications as may be
            required under the Exchange Act and applicable state securities laws
            in connection with the Remarketing of the Senior Notes, if
            applicable.

                   (iv) The Corporate PIES have been duly executed and delivered
            by the Company (assuming due execution by the Purchase Contract
            Agent as attorney-in-fact for the holders thereof and due
            authentication by the Purchase Contract Agent) and have duly and
            validly issued and outstanding.

                   (v) The Treasury PIES have been duly executed and delivered
            by the Company (assuming due execution by the Purchase Contract
            Agent as attorney-in-fact for the holders thereof and due
            authentication by the Purchase Contract Agent) and, upon
            substitution of the requisite number of Treasury Securities for the
            applicable Senior Notes as set forth in the Purchase Contract
            Agreement, and will be duly and validly issued and outstanding.

                   (vi) The Senior Notes have been duly executed, authenticated,
            issued and delivered as contemplated by the Indenture against
            payment of the agreed consideration therefor, and have been duly and
            validly issued and outstanding.

                   (vii) The provisions of the Pledge Agreement are effective to
            create, in favor of the Collateral Agent for the benefit of the
            Company, a valid security interest under the Uniform Commercial Code
            as in effect on the date of such opinion in the State of New York
            (the "New York UCC") in the Pledged Senior Notes, Applicable
            Ownership Interests (as specified in clause (A) of the definition
            thereof in the [Indenture Officers' Certificate]) of the Treasury
            Portfolio and Pledged Treasury Securities from time to time credited
            to the Collateral Account in accordance with the Pledge Agreement.
            For purposes of this opinion, capitalized terms used in this
            paragraph, which are not defined in this Agreement, shall have the
            meanings ascribed to such terms in the Pledge Agreement.

                   (viii) The unissued shares of Common Stock to be issued and
            sold by the Company upon settlement of the Purchase Contracts have
            been duly authorized and

<Page>

                                                                              22

            reserved for issuance and, when issued, sold and delivered, against
            payment, in accordance with the provisions of the Purchase
            Contracts, will be duly and validly issued, fully paid and
            non-assessable and will conform to the description thereof contained
            in the Prospectus.]

            The opinion of such counsel may be limited to the extent the matters
       set forth therein are governed by or relate to the law of the State of
       Nevada or instruments governed thereby, or relate to the State of Nevada
       or agencies thereof.

            (f) Choate, Hall and Stewart, counsel to the Company, shall have
       furnished to the Remarketing Agent a written opinion, addressed to the
       Remarketing Agent and dated the Remarketing Settlement Date, in form and
       substance satisfactory to the Remarketing Agent, to the effect that:

                   [(i) The Company and each of its Significant Subsidiaries
            have been duly incorporated and are validly existing as
            corporations in good standing under the laws of the State of
            Nevada, are duly qualified to do business and are in good
            standing as foreign corporations in each jurisdiction in which
            their respective ownership or lease of property or the conduct of
            their respective businesses requires such qualification and have
            all corporate power and authority necessary to own or hold their
            respective properties and conduct the businesses in which they
            are engaged, except where the failure to so qualify or to be in
            good standing would not have a Material Adverse Effect.

                   (ii) The Company has all power and authority necessary to
            execute and deliver each of the Transaction Agreements, to perform
            its obligations thereunder and to issue the Securities; and the
            Company has duly authorized, executed and delivered each of the
            Transaction Agreements.

                   (iii) The execution, delivery and performance of the
            Transaction Agreements and the consummation by the Company of the
            Transactions, did not and will not, as the case may be, (i) conflict
            with or result in a breach or violation of any of the terms or
            provisions of, or constitute a default under, any indenture,
            mortgage, deed of trust, loan agreement or other agreement or
            instrument to which the Company or any of its subsidiaries is a
            party or by which the Company or any of its subsidiaries is bound or
            to which any of the properties or assets of the Company or any of
            its subsidiaries is subject, which would be reasonably likely to
            result in a Material Adverse Effect, (ii) result in any violation of
            the provisions of the charter or by-laws of the Company or any of
            its subsidiaries, (iii) result in any violation of any statute or
            any order, rule or regulation of any court or governmental agency or
            body having jurisdiction over the Company or any of its subsidiaries
            or any of their respective properties or assets, which would be
            reasonably likely to result in a Material Adverse Effect or (iv)
            require any material consent, approval, authorization or order of,
            or filing or registration with, any such court or governmental
            agency or body for the consummation of the Transactions, except for
            (A) the registration of the Remarketing Senior Notes in connection
            with the Remarketing under the Securities Act, if applicable, (B)
            the qualification of the Indenture under the Trust Indenture Act and
            (C) such consents, approvals, authorizations, registrations or
            qualifications

<Page>

                                                                              23

            as may be required under the Exchange Act and applicable state
            securities laws in connection with the Remarketing of the Senior
            Notes, if applicable.

                   (iv) Assuming due authorization, execution and delivery of
            the Purchase Contract Agreement by the Purchase Contract Agent, the
            Purchase Contract Agreement constitutes a legally valid and binding
            agreement of the Company, enforceable against the Company in
            accordance with its terms, subject to the effects of bankruptcy,
            insolvency, fraudulent conveyance, reorganization, moratorium and
            other similar laws relating to or affecting creditors' rights
            generally, general equitable principles (whether considered in a
            proceeding in equity or at law) and an implied covenant of good
            faith and fair dealing; the Purchase Contract Agreement is not
            required to be qualified as an indenture under the Trust Indenture
            Act; and the Purchase Contract Agreement conforms or will conform,
            as the case may be, in all material aspects to the description
            thereof contained in the Prospectus.

                   (v) The Corporate PIES have been duly executed and delivered
            by the Company (assuming due execution by the Purchase Contract
            Agent as attorney-in-fact for the holders thereof and due
            authentication by the Purchase Contract Agent), have duly and
            validly issued and outstanding, and constitute valid and binding
            obligations of the Company, entitled to the benefits of the Purchase
            Contract Agreement and enforceable against the Company in accordance
            with their terms, subject to the effects of bankruptcy, insolvency,
            fraudulent conveyance, reorganization, moratorium and other similar
            laws relating to or affecting creditors rights generally, general
            equitable principles (whether considered in a proceeding in equity
            or at law) and an implied covenant of good faith and fair dealing;
            and the Corporate PIES conform or will conform, as the case may be,
            in all material respects to the description thereof contained in the
            Prospectus.

                   (vi) The Treasury PIES have been duly executed and delivered
            by the Company (assuming due execution by the Purchase Contract
            Agent as attorney-in-fact for the holders thereof and due
            authentication by the Purchase Contract Agent) and, upon
            substitution of the requisite number of Treasury Securities for the
            applicable Senior Notes as set forth in the Purchase Contract
            Agreement, will be duly and validly issued and outstanding, and will
            constitute valid and binding obligations of the Company, entitled to
            the benefits of the Purchase Contract Agreement and enforceable
            against the Company in accordance with their terms, subject to the
            effects of bankruptcy, insolvency, fraudulent conveyance,
            reorganization, moratorium and other similar laws relating to or
            affecting creditors rights generally, general equitable principles
            (whether considered in a proceeding in equity or at law) and an
            implied covenant of good faith and fair dealing; and the Treasury
            PIES conform or will conform, as the case may be, if issued, to the
            description thereof contained in the Prospectus.

                   (vii) Assuming due authorization, execution and delivery of
            the Indenture by the Indenture Trustee, the Indenture constitutes a
            legally valid and binding agreement of the Company, enforceable
            against the Company in accordance with its terms, subject to the
            effects of bankruptcy, insolvency, fraudulent conveyance,
            reorganization, moratorium and other similar laws relating to or
            affecting creditors' rights generally, general equitable principles
            (whether considered in a proceeding in

<Page>

                                                                              24

            equity or at law) and an implied covenant of good faith and fair
            dealing; the Indenture has been duly qualified under the Trust
            Indenture Act; and the Indenture conforms or will conform, as the
            case may be, when executed and delivered, in all material respects
            to the description thereof contained in the Prospectus.

                   (viii) The Senior Notes have been duly executed,
            authenticated, issued and delivered as contemplated by the Indenture
            against payment of the agreed consideration therefor, have been duly
            and validly issued and outstanding and constitute legally valid and
            binding obligations of the Company, entitled to the benefits of the
            Indenture and enforceable against the Company in accordance with
            their terms, subject to the effects of bankruptcy, insolvency,
            fraudulent conveyance, reorganization, moratorium and other similar
            laws relating to or affecting creditors' rights generally, general
            equitable principles (whether considered in a proceeding in equity
            or at law) and an implied covenant of good faith and fair dealing;
            and the Senior Notes conform or will conform, as the case may be, in
            all material respects with the description thereof contained in the
            Prospectus Supplement.

                   (ix) Assuming due authorization, execution and delivery of
            the Pledge Agreement by the Purchase Contract Agent, the Securities
            Intermediary and the Collateral Agent, the Pledge Agreement
            constitutes a legally valid and binding agreement of the Company,
            enforceable against the Company in accordance with its terms,
            subject to the effects of bankruptcy, insolvency, fraudulent
            conveyance, reorganization, moratorium and other similar laws
            relating to or affecting creditors' rights generally, general
            equitable principles (whether considered in a proceeding in equity
            or at law) and an implied covenant of good faith and fair dealing;
            and the Pledge Agreement conforms or will conform, as the case may
            be, in all material respects to the description thereof contained in
            the Prospectus.

                   (x) Assuming due authorization, execution and delivery of the
            Remarketing Agreement by the Remarketing Agent, the Remarketing
            Agreement constitutes a legally valid and binding agreement of the
            Company, enforceable against the Company in accordance with its
            terms, subject to the effects of bankruptcy, insolvency, fraudulent
            conveyance, reorganization, moratorium and other similar laws
            relating to or affecting creditors' rights generally, general
            equitable principles (whether considered in a proceeding in equity
            or at law) and an implied covenant of good faith and fair dealing,
            and except with respect to the rights of indemnification and
            contribution under the Remarketing Agreement, where enforcement
            hereof may be limited by federal or state securities laws or the
            policies underlying such laws; and the Remarketing Agreement
            conforms or will conform, as the case may be, in all material
            respects to the description thereof contained in the Prospectus.

                   (xi) The provisions of the Pledge Agreement are effective to
            create, in favor of the Collateral Agent for the benefit of the
            Company, a valid security interest under the Uniform Commercial Code
            as in effect on the date of such opinion in the State of New York
            (the "New York UCC") in the Pledged Senior Notes, Applicable
            Ownership Interests (as specified in clause (A) of the definition
            thereof in the [Indenture Officers' Certificate]) of the Treasury
            Portfolio and Pledged Treasury Securities from time to time credited
            to the Collateral Account in

<Page>

                                                                              25

            accordance with the Pledge Agreement. For purposes of this opinion,
            capitalized terms used in this paragraph, which are not defined in
            this Agreement, shall have the meanings ascribed to such terms in
            the Pledge Agreement.

                   (xii) The unissued shares of Common Stock to be issued and
            sold by the Company upon settlement of the Purchase Contracts have
            been duly authorized and reserved for issuance and, when issued,
            sold and delivered, against payment, in accordance with the
            provisions of the Purchase Contracts, will be duly and validly
            issued, fully paid and non-assessable and will conform to the
            description thereof contained in the Prospectus.

                   (xiii) There are no preemptive or other rights to subscribe
            for or to purchase, nor is there any restriction on the voting or
            transfer of, any of the Securities pursuant to the Company's
            articles of incorporation or by-laws or any agreement or instrument,
            except such preemptive or other rights and/or restrictions as relate
            to the transactions contemplated by the Purchase Contract Agreement,
            the Pledge Agreement and the Indenture.

                   (xiv) The Registration Statement was declared effective under
            the Securities Act, and the Indenture was qualified under the Trust
            Indenture Act at ________ [a.m.] [p.m.] on November __, 2001, the
            Prospectus was filed with the Commission pursuant to Rule 424(b)[__]
            under the Securities Act specified in such opinion on the date
            specified therein; and no stop order suspending the effectiveness of
            the Registration Statement has been issued and, to the best
            knowledge of such counsel, no proceeding for that purpose is pending
            or threatened by the Commission.

                   (xv) The Registration Statement and the Prospectus documents
            incorporated by reference therein (other than the financial
            statements and related schedules therein, as to which we express no
            opinion), when they became effective or were filed with the
            Commission, as the case may be, complied as to form in all material
            respects with the requirements of the Securities Act or the Exchange
            Act, as applicable, and the Trust Indenture Act; and the Indenture
            conforms in all material respects to the requirements of the Trust
            Indenture Act.

                   (xvi) The statements made in the Prospectus under the
            captions "Description of Debt Securities," "Description of the
            Common Stock," "Description of Stock Purchase Contracts and Stock
            Purchase Units," "Prospectus Supplement Summary--The Offering,"
            "Description of the PIES, "Description of the Purchase Contracts,"
            "Certain Provisions of the Purchase Contracts, the Purchase Contract
            Agreement and the Pledge Agreement," and "Description of the Senior
            Notes", insofar as they purpose to constitute summaries of certain
            terms of documents referred to therein, and considered together,
            constitute accurate summaries of the terms of such documents in all
            material respects.

                   (xvii) The statements in the Prospectus Supplement under the
            captions "United States Federal Income Tax Consequences" and
            "Certain ERISA Considerations", insofar as they purport to
            constitute summaries of matters of United States federal statutes or
            regulations or legal conclusions with respect

<Page>

                                                                              26

            thereto, constitute accurate summaries of the matters described
            therein in all material respects.

                   (xviii) The Company is not an "investment company" within the
            meaning of, and subject to regulation, under the Investment Company
            Act.

                   (xix) The Company is a "holding company" under the Holding
            Company Act, but, pursuant to Section (3)(a)(1) of the Holding
            Company, is exempt from all provisions of the Holding Company Act
            except Section 9(a)(2) thereof.

                   (xx) To the best knowledge of such counsel, there are no
            contracts or other documents which are required by the Securities
            Act to be described in the Prospectus or filed as exhibits to the
            Registration Statement which have not been so described or filed as
            required.

                   (xxi) To the best knowledge of such counsel and except as set
            forth in the Prospectus, there are no legal or governmental
            proceedings pending to which the Company or any of its subsidiaries
            is a party or of which any property or assets of the Company or any
            of its subsidiaries is the subject which, if determined adversely to
            the Company or such subsidiary, would be reasonably likely to result
            in a Material Adverse Effect; and, to the actual knowledge of such
            counsel, no such proceedings are overtly threatened or contemplated
            by governmental authorities or threatened by others.

                   (xxii) To the best knowledge of such counsel and except as
            set forth in the Prospectus, there are no contracts, agreements or
            understandings between the Company and any person granting such
            person the right to require the Company to file a registration
            statement under the Securities Act with respect to any securities of
            the Company owned or to be owned by such person or to require the
            Company to include such securities in the securities registered
            pursuant to the Registration Statement or in any securities being
            registered pursuant to any other registration statement filed by the
            Company under the Securities Act.]

            In addition, the opinion of such counsel shall state that nothing
       has come to the attention of such counsel which lead such counsel to
       believe that the Registration Statement (except for the financial
       statements and financial data included or incorporated by reference
       therein, as to which such counsel need express no belief), as of the
       Effective Date, contained any untrue statement of a material fact or
       omitted to state a material fact required to be stated therein or
       necessary in order to make the statements therein not misleading, or that
       the Prospectus (except as stated above), as of the applicable Delivery
       Date, includes any untrue statement of a material fact or omits to state
       a material fact required to be stated therein or necessary in order to
       make the statements therein, in the light of the circumstances under
       which they were made, not misleading.

            The opinion of such counsel may rely, as to all matters of law of
       the State of Nevada, on the opinion of Woodburn and Wedge.

            (g) On the Remarketing Settlement Date, the Company shall have
       caused to be furnished to the Remarketing Agent a letter addressed to the
       Remarketing Agent and dated

<Page>

                                                                              27

       such date, in form and substance satisfactory to the Remarketing Agent,
       of Deloitte & Touche LLP or such other firm of nationally recognized
       independent public accountants satisfactory to the Remarketing Agent,
       containing statements and information of the type ordinarily included in
       accountants' "comfort letters" with respect to certain financial
       information contained in the Prospectus and the Remarketing Materials.

            (h) The Company shall have furnished to the Remarketing Agent a
       certificate, dated the Remarketing Settlement Date, of its President or
       any Vice President and a principal financial or accounting officer of the
       Company, stating that:

                   (i) the representations and warranties of the Company
            contained in this Agreement are true and correct as of the
            Remarketing Settlement Date, and the Company performed all covenants
            and obligations and satisfied all conditions required of it under
            this Agreement;

                   (ii) no stop order suspending the effectiveness of the
            Registration Statement or of any part thereof shall have been
            issued, and no proceedings for that purpose shall have been
            instituted or, to the knowledge of the Company, shall be
            contemplated by the Commission;

                   (iii) since the respective dates as of which information is
            given in the Prospectus other than as set forth in the Prospectus
            (exclusive of any amendments or supplements thereto subsequent to
            the date of this Agreement), (A) there has not occurred any change
            or any development that might have a material adverse effect, (B)
            there has not been any change in the capital stock, the short-term
            debt, or the long-term debt of the Company or any of its
            subsidiaries that might have a Material Adverse Effect, (C) neither
            the Company nor any of its subsidiaries has incurred any material
            liability or obligation, direct or contingent and (D) a Material
            Loss has not occurred; and

                   (iv) they have examined the Registration Statement and the
            Prospectus and, in their opinion (A) as of the Effective Date, the
            Registration Statement and Prospectus did not include any untrue
            statement of a material fact and did not omit to state a material
            fact required to be stated therein or necessary to make the
            statements therein not misleading, and (B) since the Effective Date
            no event has occurred which should have been set forth in a
            supplement or amendment to the Registration Statement or the
            Prospectus.

            (i) Without the prior written consent of the Remarketing Agent, the
       Indenture shall not have been amended in any manner, that, in the
       reasonable judgment of the Remarketing Agent, materially changes the
       nature of the Remarketing Senior Notes or the Remarketing Procedures.

            (j) Except as disclosed in the Prospectus (exclusive of any
       amendment or supplements thereto subsequent to the date of this
       Agreement), neither the Company nor any of its subsidiaries shall have
       sustained since the date of the latest audited financial statements
       incorporated by reference into the Prospectus (A) any loss or
       interference with its business from fire, explosion, flood or other
       calamity, whether or not covered by insurance, or from any labor dispute
       or court and/or governmental action, order or decree

<Page>

                                                                              28

       and (B) since such date there shall not have been any change or any
       development reasonably likely to result in a change in of affecting the
       business, general affairs, management, condition (financial or
       otherwise), stockholders' equity or results of operations of the Company
       and its subsidiaries, the effect of which, in any such case described in
       clause (A) or (B), is, in the judgment of the Remarketing Agent, so
       material (with respect to the Company and its subsidiaries taken as a
       whole) and adverse as to make it impracticable or inadvisable to proceed
       with the Remarketing on the terms and in the manner contemplated in the
       Prospectus, the Remarketing Materials, the Indenture and this Agreement.

            (k) Subsequent to the execution and delivery of this Agreement, (i)
       no downgrading shall have occurred in the rating accorded the Company's
       or any of the Company's subsidiaries' debt securities or preferred stock
       by any "nationally recognized statistical rating organization," as that
       term is defined by the Commission for purposes of Rule 436(g)(2) of the
       Securities Act and (ii) no such organization shall have publicly
       announced, or privately informed the Company, that it has under
       surveillance or review, with possible negative implications, its rating
       of any of the Company's or any of the Company's subsidiaries' debt
       securities or preferred stock.

            (l) Subsequent to the execution and delivery of this Agreement,
       there shall not have occurred any of the following: (i) trading in
       securities generally on the New York Stock Exchange, the American Stock
       Exchange, the NASDAQ or the over-the-counter market, or trading in any
       securities of the Company on any exchange or in the over-the-counter
       market, shall have been suspended or the settlement of such trading
       generally shall have been materially disrupted or minimum prices shall
       have been established on any such exchange or such market by the
       Commission, by such exchange or by any other regulatory body or
       governmental authority having jurisdiction, (ii) a banking moratorium
       shall have been declared by Federal or state authorities or a material
       disruption in commercial banking or securities settlement or clearance
       services in the United States, (iii) the United States shall have become
       engaged in hostilities, there shall have been an escalation in
       hostilities involving the United States, there shall have been a
       declaration of a national emergency or war by the United States, or an
       act of terrorism shall have been committed against the United States or
       any of its nationals or properties or (iv) there shall have occurred a
       calamity or crisis or such a material adverse change in general domestic
       or international economic, political or financial conditions, including
       without limitation as a result of terrorist activities, or the effect of
       international conditions on the financial markets in the United States
       shall be such, as to make it, in the judgment of the Remarketing Agent,
       impracticable or inadvisable to proceed with the Remarketing on the terms
       and in the manner contemplated in the Prospectus, the Remarketing
       Materials, the Indenture and this Agreement.

       All opinions, letters, evidence and certificates mentioned above or
elsewhere in this Agreement shall be deemed to be in compliance with the
provisions hereof only if they are in form and substance reasonably satisfactory
to counsel for the Remarketing Agent.

       Section 7. INDEMNIFICATION AND CONTRIBUTION.

       (a) The Company shall indemnify and hold harmless the Remarketing Agent,
its officers, employees and each of its directors and each person, if any, who
controls the Remarketing

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                                                                              29

Agent within the meaning of the Securities Act, from and against any loss,
claim, damage or liability, joint or several, or any action in respect thereof
(including, but not limited to, any loss, claim, damage, liability or action
relating to the Remarketing), to which the Remarketing Agent, officer, employee
or controlling person may become subject, under the Securities Act or otherwise,
insofar as such loss, claim, damage, liability or action arises out of, or is
based upon, (i) any untrue statement or alleged untrue statement of a material
fact contained in (A) the Registration Statement or the Prospectus or in any
amendment or supplement thereto or (B) any blue sky application or other
document prepared or executed by the Company (or based upon any written
information furnished by the Company) filed in any jurisdiction specifically for
the purpose of qualifying any or all of the Remarketing Senior Notes under the
securities laws of any state or other jurisdiction (such application, document
or information being hereinafter called a "Blue Sky Application"), (ii) the
omission or alleged omission to state in the Registration Statement, the
Prospectus, or in any amendment or supplement thereto or in any Blue Sky
Application any material fact required to be stated therein or necessary to make
the statements therein not misleading or (iii) any act or failure to act or any
alleged act or failure to act by the Remarketing Agent in connection with, or
relating in any manner to, the Remarketing Senior Notes, and which is included
as part of or referred to in any loss, claim, damage, liability or action
arising out of or based upon matters covered by clause (i) or (ii) above
(PROVIDED that, the Company shall not be liable under this clause (iii) to the
extent that it is determined in a final judgment by a court of competent
jurisdiction that such loss, claim, damage, liability or action resulted
directly from any such acts or failure to act undertaken or omitted to be taken
by the Remarketing Agent through its gross negligence or willful misconduct),
and shall reimburse the Remarketing Agent and each such officer, employee,
Director or controlling person promptly upon demand for any legal or other
expenses reasonably incurred by the Remarketing Agent, officer, employee,
director or controlling person in connection with investigating or defending or
preparing to defend against any such loss, claim, damage, liability or action as
such expenses are incurred; PROVIDED, HOWEVER, that the Company shall not be
liable in any such case to the extent that any such loss, claim, damage,
liability or action arises out of, or is based upon, any untrue statement or
alleged untrue statement or omission or alleged omission made in the
Registration Statement, the Prospectus or in any Remarketing Materials, or in
any such amendment or supplement, in reliance upon and in conformity with the
written information concerning the Remarketing Agent furnished to the Company by
the Remarketing Agent specifically for inclusion therein which information is
specifically identified to the Company in a letter sent by the Remarketing
Agent, and PROVIDED, FURTHER, that the Company shall not be liable to indemnify
the Remarketing Agent or any person who controls the Remarketing Agent on
account of any such loss, liability, claim, damage or expense arising out of any
such defect or alleged defect in any Prospectus if a copy of the Prospectus
(exclusive of any documents incorporated by reference therein) shall not have
been given or sent by the Remarketing Agent with or prior to the written
confirmation of the sale in connection with the Remarketing involved to the
extent that (i) the Prospectus would have cured such defect or alleged defect
and (ii) sufficient quantities of the Prospectus were timely made available to
the Remarketing Agent. The foregoing indemnity agreement is in addition to any
liability which the Company may otherwise have to the Remarketing Agent or to
any officer, employee or controlling person of the Remarketing Agent.

       (b) The Remarketing Agent shall indemnify and hold harmless the Company,
its officers and employees, each of its directors, and each person, if any, who
controls the Company within the meaning of the Securities Act from and against
any loss, claim, damage or liability, joint or several, or any action in respect
thereof, to which the Company or any such director, officer or controlling
person may become subject, under the Securities Act or otherwise, insofar as
such loss,

<Page>

                                                                              30

claim, damage, liability or action arises out of, or is based upon, (i) any
untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement or the Prospectus or in any amendment or supplement
thereto, in any Blue Sky Application or in the Remarketing Materials or (ii) the
omission or alleged omission to state in the Registration Statement, the
Prospectus or in any amendment or supplement thereto, in any Blue Sky
Application or in the Remarketing Materials, any material fact required to be
stated therein or necessary to make the statements therein not misleading, but
in each case only to the extent that the untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in
conformity with the written information furnished to the Company by the
Remarketing Agent specifically for inclusion therein and described in Section
7(c), and shall reimburse the Company and any such director, officer or
controlling person promptly upon demand for any legal or other expenses
reasonably incurred by the Company or any such director, officer or controlling
person in connection with investigating or defending or preparing to defend
against any such loss, claim, damage, liability or action as such expenses are
incurred. The foregoing indemnity agreement is in addition to any liability
which the Remarketing Agent may otherwise have to the Company or any such
director, officer, employee or controlling person.

       (c) Promptly after receipt by an indemnified party under this Section 7
of notice of any claim or the commencement of any action, the indemnified party
shall, if a claim in respect thereof is to be made against the indemnifying
party under this Section 7, notify the indemnifying party in writing of the
claim or the commencement of that action; PROVIDED, HOWEVER, that the failure to
notify the indemnifying party shall not relieve it from any liability which it
may have under this Section 7 except to the extent it has been materially
prejudiced by such failure and, PROVIDED, FURTHER, that the failure to notify
the indemnifying party shall not relieve it from any liability which it may have
to an indemnified party otherwise than under this Section 7. If any such claim
or action shall be brought against an indemnified party, and it shall notify the
indemnifying party thereof, the indemnifying party shall be entitled to
participate therein and, to the extent that it wishes, jointly with any other
similarly notified indemnifying party, to assume the defense thereof with
counsel satisfactory to the indemnified party. After notice from the
indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to
the indemnified party under this Section 7 for any legal or other expenses
subsequently incurred by the indemnified party in connection with the defense
thereof other than reasonable costs of investigation; PROVIDED, HOWEVER, that,
if the defendants (including impleaded parties) in any such action include both
the indemnified party and the indemnifying party (or parties) and the
indemnified party shall have reasonably concluded that there may be legal
defenses available to it and/or other indemnified parties which are different
from or additional to those available to the indemnifying party (or parties),
the indemnified party shall have the right to select separate counsel to assert
such legal defenses and to participate otherwise in the defense of such action
on behalf of such indemnified party. The indemnifying party shall bear the
reasonable fees and expenses of outside counsel retained by the indemnified
party if (i) the indemnified party shall have retained such counsel in
connection with the assertion of legal defenses in accordance with the proviso
to the preceding sentence (it being understood, however, that the indemnifying
party shall not be liable for the expenses of more than one separate counsel (in
addition to one local counsel), representing the indemnified parties under
Section 7(a) or 7(b), as the case may be, who are parties to such action), (ii)
the indemnifying party shall have elected not to assume the defense of such
action, (iii) the indemnifying party shall not have employed counsel
satisfactory to the indemnified party to represent the indemnified party within
a reasonable time after notice of the commencement of the action, or (iv) the
indemnifying party has authorized the employment of

<Page>

                                                                              31

counsel for the indemnified party at the expense of the indemnifying party.
Notwithstanding the foregoing sentence, an indemnifying party shall not be
liable for any settlement of any proceeding effected without its written consent
(such consent not to be unreasonably withheld), but if settled with such consent
or if there be a final judgment for the plaintiff, the indemnifying party agrees
to indemnify the indemnified party from and against any loss or liability by
reason of such settlement or judgment. No indemnifying party shall, (i) without
the prior written consent of the indemnified parties (which consent shall not be
unreasonably withheld), settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability
arising out of such claim, action, suit or proceeding, or (ii) be liable for any
settlement of any such action effected without its written consent (which
consent shall not be unreasonably withheld), but if settled with its written
consent or if there be a final judgment of the plaintiff in any such action, the
indemnifying party shall indemnify and hold harmless any indemnified party from
and against any loss or liability by reason of such settlement or judgment.

       (d) If the indemnification provided for in this Section 7 shall for any
reason be unavailable or insufficient to hold harmless an indemnified party
under Section 7(a) or 7(b) in respect of any loss, claim, damage or liability,
or any action in respect thereof, referred to therein, then each indemnifying
party shall, in lieu of indemnifying such indemnified party, contribute to the
amount paid or payable by such indemnified party as a result of such loss,
claim, damage or liability, or action in respect thereof, (i) in such proportion
as shall be appropriate to reflect the relative benefits received by the Company
on the one hand and the Remarketing Agent on the other from the Remarketing or
(ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of
the Company on the one hand and the Remarketing Agent on the other with respect
to the statements or omissions which resulted in such loss, claim, damage or
liability, or action in respect thereof, as well as any other relevant equitable
considerations. The relative benefits received by the Company on the one hand
and the Remarketing Agent on the other with respect to the Remarketing shall be
deemed to be in the same proportion as the total proceeds from the Remarketing
(before deducting expenses) bear to the total fees received by the Remarketing
Agent with respect to the Remarketing. The relative fault shall be determined by
reference to whether the untrue or alleged untrue statement of a material fact
or omission or alleged omission to state a material fact relates to information
supplied by the Company or the Remarketing Agent, the intent of the parties and
their relative knowledge, access to information and opportunity to correct or
prevent such statement or omission. The Company and the Remarketing Agent agree
that it would not be just and equitable if contributions pursuant to this
Section 7(d) were to be determined by pro rata allocation or by any other method
of allocation which does not take into account the equitable considerations
referred to herein. The amount paid or payable by an indemnified party as a
result of the loss, claim, damage or liability, or action in respect thereof,
referred to above in this Section shall be deemed to include, for purposes of
this Section 7(d), any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action
or claim. Notwithstanding the provisions of this Section 7(d), the Remarketing
Agent shall not be required to contribute any amount in excess of its fees under
Section 5 exceeds the amount of any damages which the Remarketing Agent has
otherwise paid or become liable to pay by reason of any untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation

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                                                                              32

(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation.

       Section 8. RESIGNATION AND REMOVAL OF THE REMARKETING AGENT.

       The Remarketing Agent may resign and be discharged from its duties and
obligations hereunder by giving 60 days' prior written notice to the Company,
the Depositary and the Trustee. The Company may remove the Remarketing Agent by
giving 60 days' prior written notice to the removed Remarketing Agent, the
Depositary and the Trustee upon any of the following events:

            (i) the Remarketing Agent becomes involved as a debtor in a
       bankruptcy, insolvency or similar proceeding;

            (ii) the Remarketing Agent shall not be among the ten underwriters
       with the largest volume underwritten in dollars, on a lead managed basis,
       of U.S. domestic debt securities during the twelve-month period ended as
       of the last calendar quarter preceding the Remarketing Date;

            (iii) the Remarketing Agent shall be subject to one or more legal
       restrictions preventing the performance of its obligations hereunder;

            (iv) the Remarketing Agent shall determine that, because there has
       occurred an event of the kind described under Section 6(k), 6(l) or 6(m)
       using its commercially reasonable efforts, the Remarketing Agent would be
       unable to consummate the Remarketing on the terms and in the manner
       contemplated in the Prospectus and the Remarketing Materials; or

            (v) the Company shall determine in its sole discretion that the
       Remarketing Agent, using its commercially reasonable efforts, would be
       unable to consummate the Remarketing on the terms and in the manner
       contemplated herein and in the Indenture and the Stock Purchase
       Agreement.

If any Remarketing Agent resigns or is removed, the Company shall use its best
efforts to appoint a successor Remarketing Agent and enter into a remarketing
agreement, as described in the preceding sentence, as soon as reasonably
practicable. The provisions of Sections 4, 7 and 8 shall survive the resignation
or removal of any Remarketing Agent pursuant to this Agreement.

       Section 9. DEALING IN THE REMARKETING SENIOR NOTES.

       The Remarketing Agent, when acting as a Remarketing Agent or in its
individual or any other capacity, may, to the extent permitted by law, buy,
sell, hold and deal in any of the Remarketing Senior Notes, including in
connection with the Remarketing. The Remarketing Agent may exercise any vote or
join in any action which any beneficial owner of Remarketing Senior Notes may be
entitled to exercise or take pursuant to the Indenture with like effect as if it
did not act in any capacity hereunder. The Remarketing Agent, in its individual
capacity, either as principal or agent, may also engage in or have an interest
in any financial or other transaction with the Company as freely as if it did
not act in any capacity hereunder.

<Page>

                                                                              33

       Section 10. REMARKETING AGENT'S PERFORMANCE; DUTY OF CARE.

       (a) The duties and obligations of the Remarketing Agent shall be
determined solely by the express provisions of this Agreement, and, to the
extent the Remarketing Procedures are set forth elsewhere, in the Indenture and
the Purchase Contract Agreement. No implied covenants or obligations of or
against the Remarketing Agent shall be read into this Agreement, the Indenture
or the Purchase Contract Agreement.

       (b) In the absence of bad faith on the part of the Remarketing Agent, the
Remarketing Agent may conclusively rely upon any document furnished to it, which
purports to conform to the requirements of this Agreement, the Indenture or the
Purchase Contract Agreement as to the truth of the statements expressed in any
of such documents. The Remarketing Agent shall be protected in acting upon any
document or communication reasonably believed by it to have been signed,
presented or made by the proper party or parties. The Remarketing Agent, acting
under this Agreement, shall incur no liability to the Company or to any holder
of Remarketing Senior Notes in its individual capacity or as Remarketing Agent
for any action or failure to act, on its part in connection with a Remarketing
or otherwise (including, but not limited to, in respect of the settlement of any
Successful Remarketing that is delayed, incomplete or abandoned for any reason),
except if such liability is judicially determined to have resulted from the
gross negligence or willful misconduct on its part.

       (c) If at any time during the term of this Agreement, any Event of
Default (as defined in the Indenture) under the Indenture, or any event that
with the passage of time or the giving of notice or both would become on Event
of Default under the Indenture, has occurred and is continuing under the
Indenture, then the obligations and duties of the Remarketing Agent under this
Agreement shall be suspended until such default or event has been cured. The
Company will cause the Trustee and the Purchase Contract Agent to give the
Remarketing Agent notice of all such defaults and events of which such Trustee,
agent or administrator is aware.

       (d) The Remarketing Agent may purchase Remarketing Senior Notes for its
own account. However, under no circumstances, shall the Remarketing Agent or the
Company be obligated to purchase any Senior Notes in connection with a
Remarketing.

       (e) The right of each Holder of Senior Notes to have its Senior Notes
remarketed, pursuant to the Indenture, will be limited, however, to the extent
that (i) the Remarketing Agent conducts a Remarketing pursuant to the terms of
this Agreement, (ii) the Remarketing Agent is able to find a purchaser or
purchasers for the tendered Senior Notes, (iii) such purchaser or purchasers
deliver the purchase price therefor to the Remarketing Agent and (iv) the
Remarketing may not commence or be consummated pursuant to applicable law.

       Section 11. MERGER CONSOLIDATION, SALE OR CONVEYANCE.

       (a) The Company shall not consolidate with or merge into, or sell, lease
(for a term extending beyond the last stated maturity of the PIES and the Senior
Notes then Outstanding) or convey all or substantially all of its assets to, any
Person or group of Affiliated Persons in one transaction or a series of related
transactions, unless the Company shall be the continuing corporation, or the
successor or transferee Person expressly assumes by one or more supplemental
agreements, in form satisfactory to the Remarketing Agent, all the obligations
of the Company with respect to this Agreement, and the Company or the successor
or transferee Person, as the case may

<Page>

                                                                              34

be, (i) shall be a Corporation organized and existing under the laws of one of
the states in the United States and (ii) shall not, immediately after such
consolidation or merger or sale, lease or conveyance, be in default in the
performance or any covenant or condition hereunder. The Company shall deliver to
the Remarketing Agent an Officers' Certificate (as defined in the Original
Indenture) and an Opinion of Counsel (as defined in the Original Indenture),
each stating that such consolidation, merger sale, lease or conveyance and such
supplemental agreement comply with this Agreement and that all conditions
precedent to the consummation of any such consolidation, or merger, or any sale,
lease or conveyance have been met.

       (b) Upon any consolidation or merger, or any sale, lease or conveyance of
all or substantially all of the assets of the Company in accordance with Section
11(a), the successor corporation or the transferee corporation formed by such
consolidation or into which the Company is merged or to which such transfer is
made shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Agreement with the same effect as if such
successor corporation had been named as the Company herein.

       Such successor or transferee Person thereupon may cause to be signed, and
may issue either in its own name or in the name of Sierra Pacific Resources, any
or all of the Certificates evidencing PIES issuable hereunder which theretofore
shall not have been signed by the Company and delivered to the Purchase Contract
Agent; and, upon the order of such successor or such transferee Person, instead
of the Company, and subject to all the terms, conditions and limitations in this
Agreement prescribed, the Purchase Contract Agent shall authenticate and execute
on behalf of the Holders and deliver any Certificates which previously shall
have been signed and delivered by the officers of the Company to the Purchase
Contract Agent for authentication and execution, and any Certificate evidencing
PIES which such successor corporation or transferee corporation thereafter shall
cause to be signed and delivered to the Purchase Contract Agent for that
purpose. All the Certificates issued shall in all respects have the same legal
rank and benefit under this Agreement as the Certificates theretofore or
thereafter issued in accordance with the terms of this Agreement as though all
of such Certificates had been issued at the date of the execution hereof.

       In case of any such merger, consolidation, share exchange, sale,
assignment, transfer, lease or conveyance such change in phraseology and form
(but not in substance) may be made in the Certificates evidencing PIES
thereafter to be issued as may be appropriate.

       (c) Nothing in this Agreement shall be deemed to prevent or restrict; (a)
any consolidation or merger after the consummation of which the Company would be
the surviving or resulting entity or any conveyance or other transfer or lease
of any part of the properties of the Company which does not constitute the
entirety, or substantially the entirety, thereof; or (b) the approval by the
Company of, or the consent by the Company to, any consolidation or merger to
which any Restricted Subsidiary (as defined in the Original Indenture) or any
other subsidiary or affiliate of the Company may be a party or any conveyance,
transfer or lease by any Subsidiary (as defined in the Original Indenture) or
any such other subsidiary or affiliate of any of its assets.

       Section 12. TERMINATION.

       This Agreement shall terminate as to the Remarketing Agent on the
effective date of the resignation or removal of the Remarketing Agent pursuant
to Section 10. In addition, the obligations of the Remarketing Agent hereunder
may be terminated by it by notice given to the

<Page>

                                                                              35

Company prior to 10:00 a.m. (New York City time) on the Remarketing Date if,
prior to that time, any of the events described in Section 6(k), 6(l) or 6(m)
shall have occurred.

       Section 13. NOTICES.

       All requests and notices hereunder shall be in writing, and:

            (a) if to the Remarketing Agent, shall be delivered or sent by mail,
       or facsimile transmission to Lehman Brothers Inc., 101 Hudson St., Jersey
       City, New Jersey 07302, Attention: Syndicate Department (Fax: (201)
       545-2618), with copy to, in the case of any notice pursuant to Section
       7(c), to Lehman Brothers Inc., 101 Hudson St., Jersey City, New Jersey
       07302, General Counsel's Office (Fax: (201-321-2207);

            with a copy to Simpson Thacher & Bartlett, 425 Lexington Avenue, New
       York, New York 10017, Attention: John D. Lobrano, Esq. (Fax: (212)
       455-2502);

            (b) if to the Company shall be delivered or sent by mail or
       facsimile transmission to Sierra Pacific Resources, 6100 Neil Road, Reno,
       Nevada 89511, Attention: Mr. Richard K. Atkinson (Fax: (775) 834-5462).

            with a copy to Choate, Hall and Stewart, Exchange Place, 53 State
       Street, Boston, Massachusetts 02109, Attention: William C. Rogers, Esq.
       (Fax: (617) 248-4000);

or such other address and fax number as specified in writing by one party hereto
to another. Any such statements, requests, notices or agreements shall take
effect at the time of receipt thereof.

       Section 14. PERSONS ENTITLED TO BENEFIT OF AGREEMENT.

       This Agreement shall inure to the benefit of and be binding upon the
Remarketing Agent, the Company and their respective successors. This Agreement
and the terms and provisions hereof are for the sole benefit of only those
persons, except that (x) the representations, warranties, indemnity and
contribution agreements and other agreements of the Company contained in this
Agreement shall also be deemed to be for the benefit of the officers and
employees of the Remarketing Agent and the person or persons, if any, who
control the Remarketing Agent within the meaning of Section 15 of the Securities
Act and (y) the indemnity and contribution agreements of the Remarketing Agent
contained in Sections 7(b) and 8 of this Agreement shall be deemed to be for the
benefit of directors, officers and employees of the Company and any person
controlling the Company within the meaning of Section 15 of the Securities Act.
Nothing contained in this Agreement is intended or shall be construed to give
any person, other than the persons referred to herein, any legal or equitable
right, remedy or claim under or in respect of this Agreement or any provision
contained herein.

       Section 15. SURVIVAL.

       The respective indemnities, representations, warranties and agreements of
the Company and the Remarketing Agent contained in this Agreement or made by or
on behalf of them, respectively, pursuant to this Agreement, shall survive the
Remarketing and shall remain in full force and effect, regardless of any
investigation made by or on behalf of any of them or any person controlling any
of them.

<Page>

                                                                              36

       Section 16. GOVERNING LAW.

       THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK.

       Section 17. JURISDICTION; VENUE.

       The Company hereby submits to the nonexclusive jurisdiction of the United
States District Court for the Southern District of New York and of any New York
state court sitting in New York City for the purposes of all legal proceedings
arising out of or relating to this Agreement or the transactions contemplated
hereby. The Company irrevocably waives, to the fullest extent permitted by
applicable law, any objection which the Company may now or hereafter have to the
laying of the venue of any such proceeding brought in such a court and any claim
that any such proceeding brought in such a court has been brought in an
inconvenient forum.

       Section 18. COUNTERPARTS.

       This Agreement may be executed in one or more counterparts and, if
executed in more than one counterpart, the executed counterparts shall each be
deemed to be an original but all such counterparts shall together constitute one
and the same instrument.

       Section 19. HEADINGS.

       The headings herein are inserted for convenience of reference only and
are not intended to be part of, or to affect the meaning or interpretation of,
this Agreement.

       Section 20. SEVERABILITY.

       If any provision in this Agreement is invalid or unenforceable in any
jurisdiction, then, to the fullest extent permitted by law, (i) the other
provisions of this Agreement shall remain in full force and effect in such
jurisdiction and shall be liberally construed in order to carry out the
intentions of the parties hereto as nearly as may be possible and (ii) the
invalidity or unenforceability of any provision of this Agreement in any
jurisdiction shall not in any way affect the validity or enforceability of such
provision in any other jurisdiction.

<PAGE>

                                                                              37

       If the foregoing correctly sets forth the agreement between the Company
and the Remarketing Agent, please indicate your acceptance in the space provided
for that purpose below.

                                         Very truly yours,

                                         SIERRA PACIFIC RESOURCES

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

Accepted:

LEHMAN BROTHERS INC.

BY:
   ------------------------------------
        AUTHORIZED REPRESENTATIVE

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