Document:

<PAGE>

                                                                   Exhibit 10.14

The attached form of employment agreement between TNPC, Inc. and the executive
officers of TNPC has been executed by each of the following individuals:

H. Eugene Lockhart
William I Jacobs
James P. Badum
Marc E. Manly
A.S.A. Wyatt
John Henderson
David A. Eichinger
Kathryn A. Johnson

Also attached to the form of employment agreement as Exhibit A thereto are the
specific details of the employment arrangement of each of the individuals listed
above.

<PAGE>

                     EXECUTIVE OFFICER EMPLOYMENT AGREEMENT

         This Agreement, including the attached "Exhibit A," is entered into
between TNPC, Inc., a Delaware corporation ("TNPC"), on its behalf and on behalf
of its subsidiaries, and _____________ ("Employee"), to be effective as of
_____________, 2000 (the "Effective Date"). TNPC and Employee agree as follows:

ARTICLE 1:  EMPLOYMENT, COMPENSATION AND BENEFITS

         1.1 TERM AND POSITION. TNPC agrees to employ Employee, and Employee
agrees to be employed by TNPC, in the position, at the location, and for the
term described on Exhibit A, as that term may be extended under Section 1.4
hereof (hereinafter "Term"). Employee agrees to discharge to the best of his or
her ability the duties of this position, and to serve in such other capacity and
perform such other duties consistent with the identified position as TNPC may
direct. Employee agrees to devote Employee's entire working time to this
position and not to engage in any other business interest or activities except
with written consent of the TNPC Board of Directors, or to such person or
committee as they may delegate.

         1.2 COMPENSATION. Employee shall be paid as set forth on Exhibit A.
Employee's Monthly Base Salary shall be paid in semi-monthly installments,
subject to withholding of all federal, state, city, or other taxes or
withholdings as may be required by law.

          1.3 BENEFITS. Employee shall be allowed to participate, on the same
basis generally as other employees employed in the same or similar positions, in
all general employee benefit plans and programs that TNPC has made available to
other similarly-situated employees. Nothing in this Agreement is to be construed
to provide greater rights, participation, coverage, or benefits than provided to
similarly-situated employees pursuant to the terms of such benefit plans and
programs. TNPC is not obligated to institute, maintain, or refrain from
changing, amending, or discontinuing any such benefit program or plan, so long
as such actions are similarly applicable to covered employees generally. Copies
of any applicable benefit plans will be made available to Employee upon request.

          1.4 EXTENSION OF TERM. TNPC may extend the Term of this Agreement
specified in Exhibit A for a period of one year upon written notice to the
Employee that the Term has been extended and upon written acceptance by
Employee to such effect. Such notice shall occur on or before six months
prior to the end of the Term, and, with respect to any previous extensions,
on or before six months prior to the conclusion of such extension.

ARTICLE 2:  TERMINATION OF EMPLOYMENT

         2.1 TERMINATION BY TNPC. TNPC may terminate Employee's employment
before the Term expires for the following reasons:

                  a. CAUSE. TNPC may discharge Employee for cause and terminate
         this Agreement without any further liability hereunder to Employee or
         his or her estate, other

<PAGE>

         than the obligation to pay the Employee's Monthly Base Salary accrued
         to the date of termination. A discharge for cause will include a
         discharge following a determination by TNPC that Employee:

                            1. has materially failed to perform the duties
                  assigned to Employee under this Agreement, or has abandoned
                  those assigned duties, and has not remedied the situation
                  within 15 days after receipt of written notice from TNPC
                  specifying the failure or abandonment;

                           2. has failed to abide by TNPC's policies, rules,
                  procedures or directives and has not remedied the situation
                  within 15 days after receipt of written notice from TNPC
                  specifying the failures;

                           3. has acted with gross negligence or with willful
                  misconduct in his or her conduct which resulted or could have
                  resulted in harm to TNPC's standing among stockholders,
                  customers, suppliers, employees or other business
                  relationships;

                           4. has been found guilty by, or has entered a plea of
                  NOLO CONTENDERE with, a court of law with respect to fraud,
                  dishonesty and/or a felony crime; or

                           5. has engaged in other misconduct, including but not
                  limited to, breach of fiduciary duty, theft, fraud,
                  dishonesty, embezzlement, violation of securities laws,
                  violation of employment-related laws (including but not
                  limited to laws prohibiting discrimination of employment), or
                  falsification of employment applications or other business
                  records.

                  b. INVOLUNTARY TERMINATION. TNPC may involuntarily terminate
         Employee's employment, including a termination without cause. Upon an
         Involuntary Termination before the Term expires, Employee is entitled
         to receive the then-current Monthly Base Salary and Annual Target Bonus
         (for each year or portion of a year on a pro rata basis) for the
         remaining Term set forth in Exhibit A as if Employee's employment had
         continued for the full Term of this Agreement; provided, however, that
         once the final year of the initial Term specified in Exhibit A is
         reached, and with respect to any extension of that Term as may occur
         under Section 1.4, Employee shall, notwithstanding any then-extended
         Term, be entitled to receive a maximum of twelve months of Employee's
         Monthly Base Salary and the Annual Target Bonus for one year
         (determined at the then-current levels), and further provided that if
         Employee subsequently accepts employment with a competitor of TNPC, or
         with a firm or enterprise considering becoming a competitor of TNPC, no
         further payments of salary or bonus amounts (including, without
         limitation, any Monthly Base Salary or Annual Target Bonus) are
         required as of the first day of such employment by Employee. Employee
         will also be entitled to the value of all vacation days accrued as of
         the date of his or her Involuntary Termination; all other benefits,
         other than benefits to which Employee is entitled under the terms of
         applicable benefit, stock, or other such plans, shall cease.

<PAGE>

                  c. DEATH/DISABILITY. Termination of employment shall occur
         upon Employee's (i) death, or (ii) becoming incapacitated or disabled
         so as to entitle Employee to benefits under TNPC's long-term disability
         plan (which entitlement, for purposes of this Agreement, shall be
         determined by TNPC), or (iii) becoming permanently and totally unable
         to perform Employee's duties, even with reasonable accommodation as a
         result of any physical or mental impairment, which determination is
         supported by a written opinion by a physician selected by TNPC. Upon
         termination of employment under this subsection, Employee or Employee's
         heirs or beneficiaries shall be entitled only to Employee's pro rata
         Monthly Base Salary through the date of such termination, the pro rata
         portion of Employee's Annual Target Bonus opportunity applicable to the
         year in which death or disability occurred, and the value of all
         accrued vacation days as of the date of death or disability; all future
         compensation and benefits, other than benefits to which Employee is
         entitled under the terms of applicable benefit, stock, or other such
         plans, shall cease.

         2.2 EFFECT OF A CHANGE OF CONTROL. In the event of a Change of Control
as defined in Section 2.3 of the TNPC 2000 Stock Plan in effect as of the
Effective Date, and as qualified by Article 9 thereof with respect to the period
prior to a "Trigger Event" as defined therein, Employee shall have one year from
the consummation of a Change of Control to determine whether to terminate his or
her employment on account of the Change of Control by providing written notice
to TNPC to such effect within such one year period. In the event Employee so
elects to terminate his or her employment, and unless Employee enters into a new
employment agreement with TNPC or the entity existing subsequent to the Change
of Control, Employee is entitled to receive the then-current Monthly Base Salary
and Annual Target Bonus (for each year or portion of a year on a pro rata basis)
for the remaining Term set forth in Exhibit A as if Employee's employment had
continued for the full Term of this Agreement; provided, however, that once the
final year of the initial Term specified in Exhibit A is reached, and with
respect to any extensions of that Term as may occur under Section 1.4, Employee
shall, notwithstanding any then-extended Term, be entitled to receive a maximum
of twelve months of Employee's Monthly Base Salary and the Annual Target Bonus
for one year (determined at the then-current levels). With such election to
terminate his or her employment, Employee shall also be entitled to the value of
all vacation days accrued as of the date of Termination by Change of Control;
all other benefits, other than benefits to which Employee is entitled under the
terms of applicable benefit, stock, or other such plans, shall cease.

         2.3 TERMINATION BY EMPLOYEE. Employee may terminate the employment
relationship before the Term expires for the following reasons:

                  a. BREACH BY TNPC. A material breach by TNPC of any material
         provision of this Agreement which remains uncorrected for 30 days
         following Employee's written notice to TNPC of such breach. Upon such a
         termination, Employee shall be entitled to receive the Monthly Base
         Salary and Annual Target Bonus (for each year or portion of a year on a
         pro rata basis) for the remaining Term set forth in Exhibit A as if
         Employee's employment had continued for the full Term of this
         Agreement; provided, however, that once the final year of the initial
         Term specified in Exhibit A is reached, and with respect to any
         extensions of that Term as may occur under Section 1.4, Employee shall,
         notwithstanding any then-extended Term, be entitled to receive a
         maximum of twelve months of Employee's Monthly Base Salary and the
         Annual Target Bonus for one year (determined at the then-current

<PAGE>

         levels), and further provided that if Employee accepts employment with
         a competitor of TNPC, or with a firm or enterprise considering becoming
         a competitor of TNPC, no further payments of salary or bonus amounts
         (including, without limitation, any Monthly Base Salary or Annual
         Target Bonus) are required as of the first day of such employment by
         Employee. Employee will also be entitled to the value of all vacation
         days accrued as of the date of his or her termination; all other
         benefits, other than benefits to which Employee is entitled under the
         terms of applicable benefit, stock, or other such plans, shall cease.

                  b. VOLUNTARY TERMINATION. Employee's resignation, for any
         other reason whatsoever, in Employee's sole discretion. Upon a
         Voluntary Termination before the Term expires, all of Employee's future
         compensation and benefits, other than benefits to which Employee is
         entitled under the terms of applicable benefit, stock, or other such
         plans, shall cease as of the date of termination, and Employee shall be
         entitled only to payment of the pro rata Monthly Base Salary and the
         value of accrued vacation days through the date of such termination.

         2.4 PAYMENTS; OFFSET. Upon termination of Employee's employment, any
and all salary, bonus, or other payments due Employee under this Agreement,
unless otherwise agreed to by TNPC, shall be paid to Employee (or Employee's
estate or legal representative, as the case may be) at the times and in the
amounts as would have been paid to Employee had Employee's employment continued,
and such amounts shall not be paid in a lump sum. In all cases where TNPC pays
additional salary or bonus, those amounts shall be offset by any amounts to
which Employee otherwise may be entitled under any severance plans, voluntary
payments, and related policies of TNPC. Similarly, any amount owed to Employee
shall be offset by any amounts (including the value of TNPC property that
Employee may retain) that Employee owes to TNPC.

         2.5 CERTAIN OBLIGATIONS CONTINUE. Neither termination of employment nor
expiration of the Term terminates the continuing obligations of this Agreement,
including obligations under Articles 3, 4.1, and 4.4.

         2.6 EMPLOYMENT BEYOND TERM. Should Employee remain employed by TNPC
after the Term expires, such employment shall convert to an employment-at-will
relationship, terminable at any time by either TNPC or Employee for any reason
whatsoever, with or without cause, and with or without prior notice, and no
additional payments other than those for earned salary and accrued vacation will
be owed by TNPC.

ARTICLE 3: CONFIDENTIAL INFORMATION; POST-EMPLOYMENT OBLIGATIONS

         3.1 THIS AGREEMENT. The terms of this Agreement constitute Confidential
Information, and Employee shall not disclose these terms to anyone other than
Employee's spouse, attorneys, tax advisors, or as required by law. Disclosure of
these terms by Employee is a material breach of this Agreement and could subject
Employee to disciplinary action, including termination for cause.

         3.2 PROPERTY OF TNPC. All written or electronic materials, records,
data, and other documents prepared or possessed by Employee during and in the
course of Employee's employment by TNPC are the property of TNPC. All
information, ideas, concepts, improvements, discoveries,

<PAGE>

and inventions that are conceived, made, developed, or acquired by Employee
individually or in conjunction with others during Employee's employment
(whether during business hours and whether on TNPC premises or otherwise)
which relate to the business, products, or services of TNPC are the sole and
exclusive property of TNPC. All memoranda, notes, records, files,
correspondence, drawings, manuals, models, specifications, computer programs,
maps, and all other documents, data, or materials of any type embodying such
information, ideas, concepts, improvements, discoveries, and inventions are
the property of TNPC. At the termination of Employee's employment with TNPC
for any reason, Employee shall return all of TNPC's documents, data, or other
TNPC property to TNPC and shall not retain any copies thereof.

         3.3 CONFIDENTIAL INFORMATION. Employee acknowledges that the business
of TNPC is subject to competition and that TNPC will provide Employee with
access to Confidential Information and specialized training relating to the
business of TNPC. "Confidential Information" means and includes confidential
and/or proprietary information and/or trade secrets that have been developed or
used and/or will be developed and that cannot be obtained readily by third
parties from outside sources. Confidential Information includes, by way of
example and without limitation, the following: information regarding customers,
employees, contractors, and the industry not generally known to the public;
strategies, methods, books, records, and documents; technical information
concerning products, equipment, services, and processes; procurement procedures
and pricing techniques; the names of and other information concerning customers,
investors, and business affiliates (such as contact name, service provided,
pricing for that customer, type and amount of services used, credit and
financial data, and/or other information relating to TNPC's relationship with
that customer); pricing strategies and price curves; positions; plans and
strategies for expansion or acquisitions; budgets; customer lists; research;
weather data; financial and sales data; trading methodologies and terms;
evaluations, opinions, and interpretations of information and data; marketing
and merchandising techniques; prospective customers' names and marks; grids and
maps; electronic databases; models; specifications; computer programs; internal
business records; contracts benefiting or obligating TNPC; bids or proposals
submitted to any third party; technologies and methods; training methods and
training processes; organizational structure; personnel information, including
salaries of personnel; payment amounts or rates paid to consultants or other
service providers; and other such confidential or proprietary information.
Employee may also have access to, or knowledge of, confidential information of
third parties, including but not limited to actual and potential customers,
suppliers, partners, joint venturers, investors, and financing sources, which
shall likewise be considered Confidential Information.

         3.4 NON-DISCLOSURE OF CONFIDENTIAL INFORMATION. Employee agrees that
Employee will not, at any time during or after Employee's employment with TNPC,
make any unauthorized disclosure of any Confidential Information or specialized
training of TNPC, or make any use thereof, except in the carrying out of his or
her employment responsibilities hereunder. Employee also agrees to preserve and
protect the confidentiality of third party Confidential Information to the same
extent, and on the same basis, as TNPC's Confidential Information. Employee
acknowledges that this Confidential Information constitutes a valuable, special,
and unique asset used by TNPC in its businesses to obtain a competitive
advantage. Employee further acknowledges that protection of such Confidential
Information against unauthorized disclosure and use is of critical importance in
maintaining the competitive position of TNPC.

<PAGE>

         3.5 NON-COMPETITION OBLIGATIONS. Employee agrees that during the Period
of Post-Employment Non-Competition Obligations defined in Exhibit A, Employee
will not, directly or indirectly, for Employee or for others, in the Geographic
Region of Responsibility described on Exhibit A (or, if Employee's Geographic
Region of Responsibility has changed, in any and all additional geographic
regions in which Employee has worked during the 12-month period immediately
preceding Employee's termination of Employment):

                  a. engage in the business of buying, selling, trading,
         structuring, or executing transactions in commodities, assets, or
         products in which TNPC is doing business, has plans to engage in
         business, or has engaged in business in the preceding 12-month period,
         including, but not limited to, the provision of energy commodities to
         residential or small business customers, or the development of systems,
         information technology, accounting, or risk management with respect to
         the provision of energy commodities or other services or products that
         TNPC is offering or has plans to offer;

                  b. engage in other types of business performed by TNPC,
         including the acquiring or disposing of assets or equity investments or
         providing or raising capital, through loans, equity, joint ventures,
         partnerships, working interests, production payments, or similar
         arrangements into products, commodities, futures, derivatives, or other
         items in which TNPC currently is engaging in business, has plans to
         engage in business, or has engaged in business in the preceding
         12-month period without the written consent of the TNPC Board of
         Directors, or to such person or committees as they may delegate;

                  c. perform any job, task, function, skill, or responsibility
         that Employee has provided for TNPC in the preceding 12-month period
         for any actual competitor or organization or firm that is considering
         becoming a competitor to TNPC; or

                  d. render advice or services to, or otherwise assist, any
         other person, association or entity in the business of "a," "b," or "c"
         above.

         Employee understands that the foregoing restrictions may limit his or
her ability to engage in certain businesses in the geographic region and during
the period provided for above, but acknowledges that these restrictions are
necessary to protect the Confidential Information obtained by Employee.

         3.6 NON-SOLICITATION OF CUSTOMERS. For the Period of Non-Solicitation
of Customers described on Exhibit A, Employee will not call on, service, or
solicit competing business from customers of TNPC, as to whom that Employee,
within the previous twenty-four (24) months, (i) had or made contact, or (ii)
had access to Confidential Information.

         3.7 NON-SOLICITATION OF EMPLOYEES. During Employee's employment, and
for a period of twelve (12) months following the termination of employment for
any reason, Employee will not, either directly or indirectly, call on, solicit,
or induce any other employee or officer of TNPC to leave the employ of TNPC, and
will not assist any other person or entity in such a solicitation.

<PAGE>

         3.8 WARRANTY AND INDEMNIFICATION. Employee warrants that Employee is
not a party to any restrictive agreement limiting Employee's activities in his
or her employment by TNPC. Employee further warrants that at the time of the
signing of this Agreement, Employee knows of no written or oral contract or of
any other impediment that would inhibit or prohibit employment with TNPC, and
that Employee will not knowingly use any trade secret, confidential information,
or other intellectual property right of any other party in the performance of
Employee's duties hereunder. Employee shall hold TNPC harmless from any and all
suits and claims arising out of any breach of such restrictive agreement or
contracts.

ARTICLE 4:  MISCELLANEOUS

         4.1 STATEMENTS ABOUT TNPC. Employee shall refrain, both during and
after Employee's employment, from publishing or providing any oral or written
statements about TNPC, or any of such entities' officers, directors, employees,
agents, or representatives that are disparaging, slanderous, libelous, or
defamatory; or that disclose private or confidential information about their
business affairs; or that constitute an intrusion into their private lives; or
that give rise to unreasonable publicity about their private lives; or that
place them in a false light before the public; or that constitute a
misappropriation of their name or likeness.

         4.2 NOTICES. Notices and all other communications shall be in writing
and shall be deemed to have been duly given when personally delivered or when
mailed by United States registered or certified mail. Notices to TNPC shall be
sent to TNPC, Inc., 10 Glenville St., Greenwich, Connecticut 06831, Attention:
CEO, with a copy to at the same address, Attention: General Counsel. Notices and
communications to Employee shall be sent to the address Employee most recently
provided to TNPC.

         4.3 NO WAIVER. No failure by either party at any time to give notice of
any breach by the other party of, or to require compliance with, any condition
or provision of this Agreement shall be deemed a waiver of any provisions or
conditions of this Agreement.

         4.4 ARBITRATION. Any controversy or claim arising out of or relating to
this Agreement, the breach thereof, Employee's employment with TNPC, or the
termination thereof, except for injunctive relief which may be obtained to
enforce the provisions of Article 3 of this Agreement, shall be resolved by
binding arbitration, commenced by the delivery of a notice of demand for
arbitration sufficient to explain the claim made and the remedy requested.

                  a. NOTICE OF A DEMAND FOR ARBITRATION; SELECTION OF
         ARBITRATOR. The notice of any demand for arbitration shall be sent to
         the opposing party as specified under Article 4.2, with a copy also
         delivered to JAMS/Endispute, located at 45 Broadway St., 28th Floor,
         New York, NY 10006. The arbitration shall be conducted by a single
         arbitrator mutually agreed to by the parties to this Agreement from a
         panel submitted by JAMS/Endispute, or otherwise. If the parties do not
         reach agreement as to an arbitrator within 30 days of the notice of
         arbitration, JAMS/Endispute shall appoint an arbitrator.

                  b. DISCOVERY AND SCHEDULING. The arbitration proceeding shall
         be governed by the procedures specified by JAMS/Endispute to the extent
         they do not conflict with this

<PAGE>

         Agreement. Within 30 days of the notice of a demand for arbitration,
         both parties shall exchange with one another documents in their
         respective possession that are relevant to the dispute. There shall
         be no interrogatories or depositions taken in preparation for the
         arbitration; provided, however, that the arbitrator may permit
         limited deposition discovery in extraordinary circumstances and if
         necessary to avoid manifest injustice. The grieving party shall file
         a written statement explaining his, her, or in the case of TNPC, its
         claim, including relevant documentation, within 45 days of the
         notice for arbitration; the opposing party shall respond within 30
         days thereafter; and the grieving party may reply within 15 days of
         the response. The arbitrator shall use best efforts to resolve the
         dispute within 30 days of the submission of these written materials,
         and shall render an award, together with a short explanation of the
         basis for that award. The parties do not contemplate that live
         testimony or hearing would be required for resolving any dispute,
         but the arbitrator may require limited hearings if he or she believes
         it would be necessary to a fair resolution of the dispute and the
         hearings can be conducted within the schedule specified herein.

                  c. AUTHORITY OF THE ARBITRATOR. The arbitrator shall not have
         the power to add or to ignore any of the terms and conditions of this
         Agreement. His or her decision shall not go beyond what is necessary
         for the interpretation and application of this Agreement and the
         obligations of the parties under this Agreement. The parties shall
         share the fees of the arbitrator equally and each party will bear its
         own costs. If the arbitrator awards a monetary amount to either party
         in excess of $1 million, the party against whom the award was made may
         seek judicial resolution of the dispute under a DE novo standard before
         any court with appropriate jurisdiction over the matter.

                  d. NO PUNITIVE DAMAGES. Neither party is entitled to punitive
         damages, whether in arbitration or in a proceeding before a court with
         appropriate jurisdiction and authority to consider claims under this
         Agreement.

         4.5 CHOICE OF LAW. This Agreement shall be governed by the law of the
State of Delaware, without giving effect to principles of conflicts of laws.

         4.6 ASSIGNMENT. This Agreement shall be binding upon and inure to the
benefit of TNPC and any other person, association, or entity that may acquire or
succeed to all or substantially all of the business or assets of TNPC. TNPC may
assign this Agreement to any affiliate or other entity. Employee's rights and
obligations under this Agreement are personal, and they shall not be assigned or
transferred without the prior written consent of TNPC's CEO or General Counsel.

         4.7 OTHER AGREEMENTS. This Agreement replaces and merges other previous
agreements, including those Employee may have had with Enron Corp. or any of its
affiliates or subsidiaries, and discussions pertaining to the nature of, term,
and termination of Employee's employment relationship with TNPC, and this
Agreement constitutes the entire agreement of the parties with respect to such
subject matters. No representation, inducement, promise, or agreement has been
made by either party with respect to such subject matters, and no agreement,
statement, or promise relating to the employment of Employee by TNPC that is not
contained in this Agreement shall be valid or binding. Any modification of this
Agreement will be effective only if it is in writing and signed by Employee and
TNPC's CEO, General Counsel, or Chairman of the Board of Directors.

<PAGE>

         4.8 REFERENCES TO THE CEO OR GENERAL COUNSEL. In the case of the Chief
Executive Officer and the General Counsel of TNPC, to the extent that their
respective employment agreements refer to notices to or approvals by the CEO or
the General Counsel, then as to the CEO, notice or approval shall be to or by
the Board of Directors, and as to the General Counsel, notice or approval shall
be to or by the CEO.

         4.9 INVALIDITY. Should any provision(s) in this Agreement be held by a
court of competent jurisdiction to be invalid, void, or unenforceable, the
remaining provisions shall be unaffected and shall continue in full force and
effect, and the invalid, void or unenforceable provision(s) shall be deemed not
to be part of this Agreement.

         IN WITNESS WHEREOF, TNPC and Employee have executed this Agreement to
be effective on the first date of the Term.

TNPC, INC.                                  EMPLOYEE

By:
         ------------------------           ---------------------------------
         Name:                              This ____ day of ___________, 2000
               ------------------
         Title:
               ------------------
         This ___ day of _______, 2000

<PAGE>

                                 "EXHIBIT A" TO
                              EMPLOYMENT AGREEMENT
                                     BETWEEN
                           TNPC AND H. EUGENE LOCKHART

<TABLE>

<S>                                 <C>
Term:                               Four (4) years

Position:                           President and Chief Executive Officer of
                                    TNPC, Inc.

Reporting Relationship:             Reporting to the Board of Directors

Location:                           Greenwich, Connecticut or within 20 miles of
                                    current location

Annual and Monthly Base Salary:     $700,000 annually; $58,333.33 monthly

Annual Target Bonus Opportunity:    150% of Annual Base Salary for calendar
                                    years 2000 through 2003. Target bonus
                                    payments are determined at the discretion
                                    of the Board, based on Employee performance
                                    and the overall performance of TNPC for that
                                    year. Such bonus payments will be payable in
                                    the first quarter of the subsequent year.

Stock Option Grants:                The Stock Options identified in the S-1
                                    Registration Statement (First Amendment),
                                    will be granted under a Stock Option
                                    Agreement pursuant to and governed by the
                                    TNPC 2000 Stock Plan.

Other Financial Consideration:      Company shall pay Employee other
                                    consideration in the amount of $780,000 on
                                    or about February 17, 2000. If the employee
                                    terminates his employment within one (1)
                                    year of signing this Agreement, Employee
                                    must repay the above payment in full to
                                    Company. The foregoing obligation of
                                    Employee shall be secured by a pledge of any
                                    and all shares of Common Stock (as hereafter
                                    defined) issued to employee.

                                    Company will provide to Employee, at no cost
                                    to Employee, a split dollar whole life
                                    insurance policy with a cash balance at
                                    inception in the amount of $4,000,000.00.

                                    The Restricted Stock identified in the S-1
                                    Registration Statement (First Amendment)
                                    will be granted under a

<PAGE>

                                    Restricted Stock Agreement pursuant to and
                                    governed by the TNPC Inc., 2000 Stock Plan.

Period of Post-Employment
Non-Competition Obligations
and Period of Non-Solicitation of
Customers:                          Employee's obligations in section 3.5,
                                    Non-Competition Obligations, and section
                                    3.6, Non-Solicitation of Customers, shall
                                    survive the termination of employment and
                                    extend twelve months after Employee's
                                    termination of employment, except that this
                                    period shall be reduced to six months in the
                                    event of an involuntary termination or a
                                    termination on account of material breach by
                                    TNPC.

Geographic Region of                All fifty states in the United States, as
Responsibility:                     well as the District of Columbia.

</TABLE>

This Agreement supercedes the Employment Agreement dated January 24, 2000
between EMW Energy Services Corp. and H. Eugene Lockhart.

TNPC, INC.                                      H. EUGENE LOCKHART

By:        /s/ LOU L. PAI                             /s/ H. E. LOCKART
     -------------------------                  --------------------------------
     Name:  Lou L. Pai                          This 14th day of September, 2000
            ------------------
     Title: Non-Executive Chairman
            ----------------------
     This 13th day of September, 2000

<PAGE>

                                 "EXHIBIT A" TO
                              EMPLOYMENT AGREEMENT
                                     BETWEEN
                           TNPC AND WILLIAM I. JACOBS

<TABLE>

<S>                                 <C>
Term:                               Four (4) years

Position:                           Managing Director, Chief Financial Officer

Reporting Relationship:             Reporting to H. Eugene Lockhart, President
                                    and CEO

Location:                           Greenwich, Connecticut or within 20 miles of
                                    current location

Annual and Monthly Base Salary:     $600,000 annually; $50,000 monthly

Annual Target Bonus Opportunity:    100% of Annual Base Salary.
                                    Target bonus payments are determined at the
                                    recommendation of the CEO and as reviewed
                                    and approved by the Compensation Committee,
                                    based on Employee performance and the
                                    overall performance of TNPC for that year.
                                    Such bonus payments will be payable in the
                                    first quarter of the subsequent year.

Stock Option Grants:                The Stock Options identified in the S-1
                                    Registration Statement (First Amendment),
                                    will be granted under a Stock Option
                                    Agreement pursuant to and governed by the
                                    TNPC 2000 Stock Plan.

Other Financial Consideration:      "Make whole" arrangement: $6,700,000,
                                    subject to the accumulation of interest or
                                    other earnings, which begins at employee's
                                    start of employment, and with reasonable
                                    efforts to minimize income and other taxes
                                    that might otherwise be applicable, will be
                                    placed in a deferred compensation plan that
                                    is being prepared. Subject to tax
                                    considerations and changes upon the mutual
                                    agreement of the parties, these amounts will
                                    vest in equal amounts (1/5) as follows: 20%
                                    at start date of employment; 20% on December
                                    31st of 2000, 2001, 2002 and 2003.

                                    The restricted stock identified in the S-1
                                    Registration statement (First Amendment)
                                    will be granted under a Restricted Stock
                                    Agreement pursuant to and governed by the
                                    TNPC Inc., 2000 Stock Plan.

<PAGE>

Period of Post-Employment
Non-Competition Obligations
and Period of Non-Solicitation of
Customers:                          Employee's obligations in section 3.5,
                                    Non-Competition Obligations, and section
                                    3.6, Non-Solicitation of Customers, shall
                                    survive the termination of employment and
                                    extend twelve months after Employee's
                                    termination of employment, except that this
                                    period shall be reduced to six months in the
                                    event of an involuntary termination or a
                                    termination on account of material breach by
                                    TNPC.

Geographic Region of                All fifty states in the United States, as
Responsibility:                     well as the District of Columbia.

</TABLE>

TNPC, INC.                                      WILLIAM I. JACOBS

By:      /s/ H. E. LOCKART                            /s/ WILLIAM I JACOBS
   ---------------------------------            --------------------------------
         Name:  H. Eugene Lockhart              This 12th day of September, 2000
                -------------------
         Title: CEO
                -------------------
         This 11th day of September, 2000

<PAGE>

                                 "EXHIBIT A" TO
                              EMPLOYMENT AGREEMENT
                                     BETWEEN
                              TNPC AND JAMES BADUM

Term:                               Four (4) years

Position:                           Managing Director, Chief Marketing Officer

Reporting Relationship:             Reporting to H. Eugene Lockhart, President
                                    and CEO

Location:                           Greenwich, Connecticut or within 20 miles of
                                    current location

Annual and Monthly Base Salary:     Annual Base Salary of $257,000 ($21,417.67
                                    monthly); increased to $360,000 ($30,000
                                    monthly) upon relocation to the Greenwich,
                                    Connecticut area.

Annual Target Bonus Opportunity:    100% of Average Base Salary. Target bonus
                                    payments are determined at the
                                    recommendation of the CEO and as reviewed
                                    and approved by the Compensation Committee,
                                    based on Employee performance and the
                                    overall performance of TNPC for that year.
                                    Such bonus payments will be payable in the
                                    first quarter of the subsequent year.

Stock Option Grants:                The Stock Options identified in the S-1
                                    Registration Statement (First Amendment),
                                    will be granted under a Stock Option
                                    Agreement pursuant to and governed by the
                                    TNPC 2000 Stock Plan.

Other Financial Consideration:      Home purchase assistance loan in the amount
                                    of $638,000, with principal amount forgiven
                                    in equal increments over a five (5) year
                                    period, subject to the loan agreement.

Period of Post-Employment
Non-Competition Obligations
and Period of Non-Solicitation of
Customers:                          Employee's obligations in section 3.5,
                                    Non-Competition Obligations, and section
                                    3.6, Non-Solicitation of Customers, shall
                                    survive the termination of employment and
                                    extend twelve months after Employee's
                                    termination of employment, except that this
                                    period shall be reduced to six months in the

<PAGE>

                                    event of an involuntary termination or a
                                    termination on account of material breach by
                                    TNPC.

Geographic Region of                All fifty states in the United States, as
Responsibility:                     well as the District of Columbia.

TNPC, INC.                                   JAMES BADUM

By:  /s/ H.E. Lockhart                               /s/ Jim Badum
   ----------------------------------        --------------------------------
     Name:  H. Eugene Lockhart               This 12th day of September, 2000
          -----------------------
     Title: CEO
           ----------------------
     This 11th day of September, 2000

<PAGE>

                                 "EXHIBIT A" TO
                              EMPLOYMENT AGREEMENT
                                     BETWEEN
                               TNPC AND MARC MANLY

Term:                               Four (4) years

Position:                           Managing Director, Law and Government
                                    Affairs

Reporting Relationship:             Reporting to H. Eugene Lockhart, President
                                    and CEO

Location:                           Greenwich, Connecticut or within 20 miles
                                    of current location

Annual and Monthly Base Salary:     $350,000 annually; $29,166.66 monthly

Annual Target Bonus Opportunity:    100% of Annual Base Salary. Target bonus
                                    payments are determined at the
                                    recommendation of the CEO and as reviewed
                                    and approved by the Compensation Committee,
                                    based on Employee performance and the
                                    overall performance of TNPC for that year.
                                    Such bonus payments will be payable in the
                                    first quarter of the subsequent year.

Stock Option Grants:                The Stock Options identified in the S-1
                                    Registration Statement (First Amendment),
                                    will be granted under a Stock Option
                                    Agreement pursuant to and governed by the
                                    TNPC 2000 Stock Plan.

Other Financial Consideration:      "Make whole" arrangement: $5,000,000,
                                    subject to the accumulation of interest or
                                    other earnings, which begin at employee's
                                    start of employment, and with reasonable
                                    efforts to minimize income and other taxes
                                    that might be applicable, will be placed in
                                    a deferred compensation plan that is being
                                    prepared. Subject to tax considerations and
                                    changes upon the mutual agreement of the
                                    parties, these amounts will vest in equal
                                    annual installments (1/3) on December 31st
                                    of each of the following years: 2000, 2001
                                    and 2002.

                                    Moving expense reimbursement for moving
                                    within two (2) years of start of employment
                                    under plan similar to the applicable Enron
                                    plan, but which reimburses all reasonable
                                    out-of-pocket expenses associated with the
                                    move, including moving costs, real estate
                                    sales commissions, and closing or

<PAGE>

                                    other transaction costs in selling one home
                                    and buying another.

Period of Post-Employment
Non-Competition Obligations
and Period of Non-Solicitation of
Customers:                          Employee's obligations in section 3.5,
                                    Non-Competition Obligations, and section
                                    3.6, Non-Solicitation of Customers, shall
                                    survive the termination of employment and
                                    extend twelve months after Employee's
                                    termination of employment, except that this
                                    period shall be reduced to six months in the
                                    event of an involuntary termination or a
                                    termination on account of material breach by
                                    TNPC.

Geographic Region of                All fifty states in the United States, as
Responsibility:                     well as the District of Columbia.

TNPC, INC.                                   MARC MANLY

By:  /s/ H. E. Lockhart                            /s/ Marc E. Manly
   -----------------------------------       --------------------------------
     Name:    H. Eugene Lockhart             This 12th day of September, 2000
          ----------------------------
     Title:   CEO
           ---------------------------
     This 11th day of September, 2000

<PAGE>

                                 "EXHIBIT A" TO
                              EMPLOYMENT AGREEMENT
                                     BETWEEN
                              TNPC AND A.S.A WYATT

<TABLE>

<S>                                 <C>
Term:                               Four (4) years

Position:                           Managing Director, Operations and Technology

Reporting Relationship:             Reporting to H. Eugene Lockhart, President
                                    and CEO

Location:                           Greenwich, Connecticut

Annual and Monthly Base Salary:     $300,000 annually; $25,000 monthly

Annual Target Bonus Opportunity:    100% of Annual Base Salary. Target bonus
                                    payments are determined at the
                                    recommendation of the CEO and as reviewed
                                    and approved by the Compensation Committee,
                                    based on Employee performance and the
                                    overall performance of TNPC for that year.
                                    Such bonus payments will be payable in the
                                    first quarter of the subsequent year.

Stock Option Grants:                The Stock Options identified in the S-1
                                    Registration Statement (First Amendment),
                                    will be granted under a Stock Option
                                    Agreement pursuant to and governed by the
                                    TNPC 2000 Stock Plan.

Other Financial Consideration:      "Make whole" payment of $100,000 payable
                                    upon commencement of employment.

Period of Post-Employment
Non-Competition Obligations
and Period of Non-Solicitation of
Customers:                          Employee's obligations in section 3.5,
                                    Non-Competition Obligations, and section
                                    3.6, Non-Solicitation of Customers, shall
                                    survive the termination of employment and
                                    extend twelve months after Employee's
                                    termination of employment, except that this
                                    period shall be reduced to six months in the
                                    event of an involuntary termination or a
                                    termination on account of material breach by
                                    TNPC.

<PAGE>

Geographic Region of                All fifty states in the United States, as
Responsibility:                     well as the District of Columbia.

</TABLE>

TNPC, INC.                                      A.S.A WYATT

By:      /s/ H. E. LOCKHART                             /s/ A.S.A. WYATT
   --------------------------------------       --------------------------------
         Name:  H. Eugene Lockhart              This 12th day of September, 2000
                -------------------------
         Title: CEO
                -------------------------
         This 11th day of September, 2000

<PAGE>

                                 "EXHIBIT A" TO
                              EMPLOYMENT AGREEMENT
                                     BETWEEN
                             TNPC AND JOHN HENDERSON

<TABLE>

<S>                                 <C>
Term:                               Four (4) years

Position:                           Vice President, Risk Management

Reporting Relationship:             Reporting to H. Eugene Lockhart, President
                                    and CEO

Location:                           Houston, Texas

Annual and Monthly Base Salary:     $300,000 annually; $25,000 monthly

Stock Option Grants:                The Stock Options identified in the offer
                                    letter of April 13, 2000, will be granted
                                    under a Stock Option Agreement pursuant to
                                    and governed by the TNPC 2000 Stock Plan.

Period of Post-Employment
Non-Competition Obligations
and Period of Non-Solicitation of
Customers:                          Employee's obligations in section 3.5,
                                    Non-Competition Obligations, and section
                                    3.6, Non-Solicitation of Customers, shall
                                    survive the termination of employment and
                                    extend twelve months after Employee's
                                    termination of employment, except that this
                                    period shall be reduced to six months in the
                                    event of an involuntary termination or a
                                    termination on account of material breach by
                                    TNPC.

Geographic Region of                All fifty states in the United States, as
Responsibility:                     well as the District of Columbia.

</TABLE>

<PAGE>

TNPC, INC.                                      JOHN HENDERSON

By:      /s/ H. E. LOCKHART                            /s/ JOHN HENDERSON
   --------------------------------------       --------------------------------
         Name:  H. Eugene Lockhart              This 12th day of September, 2000
                -------------------------
         Title: CEO
                -------------------------
         This 11th day of September, 2000

<PAGE>

                                 "EXHIBIT A" TO
                              EMPLOYMENT AGREEMENT
                                     BETWEEN
                            TNPC AND DAVID EICHINGER

<TABLE>

<S>                                 <C>
Term:                               Four (4) years

Position:                           Vice President, Corporate Development

Reporting Relationship:             Reporting to H. Eugene Lockhart, President
                                    and CEO

Location:                           Greenwich, Connecticut or within 20 miles of
                                    current location

Annual and Monthly Base Salary:     Annual Base Salary of $160,000 ($13,333.33
                                    monthly); increased to $240,000 ($20,000
                                    monthly) upon relocation to the Greenwich,
                                    Connecticut area.

Annual Target Bonus Opportunity:    For the year 2000, a guaranteed target bonus
                                    of 80% of average Annual Base Salary in
                                    2000, prorated for the period of employment.
                                    Beginning in 2001, Annual Target Bonus
                                    opportunity will be 100% of Annual Base
                                    Salary. Target bonus payments are determined
                                    at the recommendation of the CEO and as
                                    reviewed and approved by the Compensation
                                    Committee, based on Employee performance and
                                    the overall performance of TNPC for that
                                    year. Such bonus payments will be payable in
                                    the first quarter of the subsequent year.

Stock Option Grants:                The Stock Options identified in the offer
                                    letter of April 13, 2000, will be granted
                                    under a Stock Option Agreement pursuant to
                                    and governed by the TNPC 2000 Stock Plan.

Other Financial Consideration:      Home purchase assistance loan in the amount
                                    of $590,000 with principal amount forgiven
                                    in equal increments over a five (5) year
                                    period, subject to the loan agreement. .

Period of Post-Employment
Non-Competition Obligations
and Period of Non-Solicitation of
Customers:                          Employee's obligations in section 3.5,
                                    Non-Competition Obligations, and section
                                    3.6, Non-Solicitation of Customers, shall
                                    survive the termination of employment and
                                    extend twelve months after Employee's
                                    termination of employment,

<PAGE>

                                    except that this period shall be reduced to
                                    six months in the event of an involuntary
                                    termination or a termination on account of
                                    material breach by TNPC.

Geographic Region of                All fifty states in the United States, as
Responsibility:                     well as the District of Columbia.

</TABLE>

TNPC, INC.                                     DAVID EICHINGER

By:      /s/ H. E. LOCKHART                           /s/ DAVID EICHINGER
   ---------------------------------           ---------------------------------
         Name:   H. Eugene Lockhart            This 12th day of September, 2000
                 -------------------
         Title:  CEO
                 -------------------
         This 11th day of September, 2000

<PAGE>

                                 "EXHIBIT A" TO
                              EMPLOYMENT AGREEMENT
                                     BETWEEN
                           TNPC AND KATHRYN A. JOHNSON

<TABLE>

<S>                                 <C>
Term:                               Four (4) years

Position:                           Vice President, Human Resources and
                                    Communications

Reporting Relationship:             Reporting to H. Eugene Lockhart, President
                                    and CEO

Location:                           Greenwich, Connecticut or within 20 miles of
                                    current location

Annual and Monthly Base Salary:     $240,000 annually; $20,000 monthly

Annual Target Bonus Opportunity:    80% of Annual Base Salary.
                                    Target bonus payments are determined at the
                                    recommendation of the CEO and as reviewed
                                    and approved by the Compensation Committee,
                                    based on Employee performance and the
                                    overall performance of TNPC for that year.
                                    Such bonus payments will be payable in the
                                    first quarter of the subsequent year.

Stock Option Grants:                The Stock Options identified in the offer
                                    letter of April 13, 2000, will be granted
                                    under a Stock Option Agreement pursuant to
                                    and governed by the TNPC 2000 Stock Plan.

Other Financial Consideration:      Home purchase assistance loan in the amount
                                    currently being determined under the
                                    employee loan agreements.

Period of Post-Employment
Non-Competition Obligations
and Period of Non-Solicitation of
Customers:                          Employee's obligations in section 3.5,
                                    Non-Competition Obligations, and section
                                    3.6, Non-Solicitation of Customers, shall
                                    survive the termination of employment and
                                    extend twelve months after Employee's
                                    termination of employment, except that this
                                    period shall be reduced to six months in the
                                    event of an involuntary termination or a
                                    termination on account of material breach by
                                    TNPC.

<PAGE>

Geographic Region of                All fifty states in the United States, as
Responsibility:                     well as the District of Columbia.

</TABLE>

TNPC, INC.                                     KATHRYN A. JOHNSON

By:      /s/ H. E. LOCKHART                          /s/ KATHRYN A. JOHNSON
   ---------------------------------           ---------------------------------
         Name:   H. Eugene Lockhart            This 12th day of September, 2000
                 -------------------
         Title:  CEO
                 -------------------
         This 11th day of September, 2000<PAGE>

                                 TNPC 2000 STOCK PLAN

       This 2000 Stock Plan (the "Plan") is hereby established by TNPC, Inc., a
Delaware corporation (the "Company"), and adopted by its Board of Directors as
of the effective date set forth on the signature page hereto (the "Effective
Date").

                                     ARTICLE I

                                PURPOSES OF THE PLAN

       1.1    PURPOSES.  The purposes of the Plan are (a) to enhance the
Company's ability to attract and retain the services of qualified directors,
officers, employees, consultants and other service providers upon whose
judgment, initiative and efforts the successful conduct and development of the
Company's business largely depends, and (b) to provide additional incentives to
such persons or entities to devote their utmost effort and skill to the
advancement and betterment of the Company, by providing them an opportunity to
participate in the ownership of the Company and thereby have an interest in the
success and increased value of the Company.

                                     ARTICLE 2

                                    DEFINITIONS

       For purposes of this Plan and in addition to those terms defined in the
preamble to this document, the following terms shall have the meanings
indicated:

       2.1    AFFILIATED COMPANY.  "Affiliated Company" means any "parent
corporation" or "subsidiary corporation" of the Company, whether now existing or
hereafter created or acquired, as those terms are defined in Sections 424(e) and
424(f) of the Code, respectively.

       2.2    BOARD.  "Board" means the Board of Directors of the Company.

       2.3    CHANGE OF CONTROL.  "Change of Control" means that one of the
following events has occurred:

                     (a)    The acquisition by any Person of beneficial
              ownership (within the meaning of Rule 13d-3 promulgated under the
              Securities Exchange Act of 1934, as amended (the "Exchange Act"))
              of 25% or more of either (i) the then-outstanding shares of common
              stock of the Company (the "Outstanding Common Stock") or (ii) the
              combined voting power of the then outstanding voting securities of
              the Company entitled to vote generally in the election of
              directors (the "Outstanding Voting Securities"); provided,
              however, that for purposes of this subsection (a), the following
              acquisitions shall not constitute a Change of Control:  (i) any
              acquisition by the Company or its subsidiaries, (ii) any
              acquisition by an employee benefit plan (or related trust)
              sponsored or maintained by the Company, (iii) any acquisition by
              any Person pursuant to a transaction which complies with clauses
              (i), (ii), (iii) and (iv) of subsection (c) below, (iv) prior to a
              Trigger Event, any acquisition by a Permitted Person, or (v) on or
              after a Trigger Event, any acquisition by a Permitted Person if
              either (x) such acquisition has been approved unanimously by all
              members of the Board prior to the consummation of such acquisition
              (excluding, however, any member of the Board who abstains from
              such approval) or (y) immediately after such

<PAGE>

              acquisition such Permitted Person does not have beneficial
              ownership (within the meaning of Rule 13d-3 promulgated under
              the Exchange Act) of more than 50% (unless such Person
              beneficially owned, directly or indirectly, more than 50% of
              the Outstanding Common Stock or Outstanding Voting Securities
              immediately prior to such acquisition, in which event such
              reference to 50% shall be to such higher percentage) of either
              the then Outstanding Common Stock or the then Outstanding
              Voting Securities; and provided further that for purposes of
              this subsection (a) or subsection 2.3(c), all shares of common
              stock or other securities acquirable upon exercise in full of
              all warrants issued by the Company that are issued prior to any
              Trigger Event and that are then outstanding (whether or not
              then exercisable) shall be deemed outstanding and owned by the
              holders of such warrants;

                     (b)    Individuals who, as of the consummation of an IPO,
              constitute the Board (the "Incumbent Board") cease for any reason
              to constitute at least a majority of the Board; provided, however,
              that any individual becoming a director whose election, or
              nomination for election by the Company's shareholders, was
              approved by a vote of at least a majority of the directors then
              comprising the Incumbent Board (either by specific vote or by
              approval of the proxy statement of the Company in which such
              person was proposed as a nominee for director without objection to
              such nomination) shall be considered as though such individual
              were a member of the Incumbent Board;

                     (c)    Consummation of a merger, consolidation or sale or
              other disposition (other than a pledge or similar encumbrance) of
              all or substantially all of the assets of the Company (a "Business
              Combination"), in each case, unless, immediately following such
              Business Combination, (i) the Persons who were the beneficial
              owners, respectively, of the Outstanding Common Stock and
              Outstanding Voting Securities immediately prior to such Business
              Combination beneficially own, directly or indirectly, immediately
              following such Business Combination, 70% of the then outstanding
              shares of common stock and 70% of the combined voting power of the
              then outstanding voting securities entitled to vote generally in
              the election of directors, as the case may be, of the Person
              resulting from such Business Combination (which resulting Person
              in connection with a merger for purposes of this subsection (c)
              shall be the surviving Person unless such surviving Person is or
              shall become a subsidiary of another Person and the owners of the
              Outstanding Common Stock and Outstanding Voting Securities receive
              stock of such other Person, in which case the resulting Person
              shall be such other Person) (provided, however, that, for the
              purposes of this clause (i), any shares of common stock or voting
              securities of such resulting Person received or otherwise owned by
              such beneficial owners (other than Permitted Persons) in such
              Business Combination other than as the result of such beneficial
              owners' ownership of Outstanding Common Stock or Outstanding
              Voting Securities immediately prior to such Business Combination
              shall not be considered to be owned by such beneficial owners for
              the purposes of calculating their percentage of ownership of the
              outstanding common stock and voting power of the resulting
              Person); (ii) no Person (excluding any Person resulting from such
              Business Combination or any employee benefit plan (or related
              trust) of the Company or such Person resulting from such Business
              Combination),

                                     -2-
<PAGE>

              other than a Permitted Person, beneficially owns, directly or
              indirectly, 25% or more of the then-outstanding shares of
              common stock of the Person resulting from such Business
              Combination or the combined voting power of the then-outstanding
              voting securities of such Person unless such Person owned 25% or
              more of the Outstanding Common Stock or Outstanding Voting
              Securities or common stock or combined voting power of the
              resulting Person immediately prior to the Business Combination;
              (iii) if such Business Combination is consummated on or after a
              Trigger Event, no Person, including a Permitted Person,
              beneficially owns, directly or indirectly, more than 50% (unless
              such Person beneficially owned, directly or indirectly, more than
              50% of the Outstanding Common Stock or Outstanding Voting
              Securities immediately prior to the consummation of such Business
              Combination, in which event such reference to 50% shall be to
              such higher percentage) of the then-outstanding shares of
              common stock of the Person resulting from such Business
              Combination or the combined voting power of the
              then-outstanding voting securities of the Person resulting from
              such Business Combination except that a Permitted Person may
              beneficially own in excess of such amounts if such Business
              Combination has been approved by all members of the Board prior
              to the consummation of such Business Combination (excluding,
              however, any member of the Board who abstains from such
              approval); (iv) immediately following such Business Combination
              at least a majority of the members of the board of directors of
              the Person resulting from such Business Combination were
              members of the Board at the time of the execution of the
              initial agreement, or of the action of the Board, providing for
              such Business Combination (but treating as a member of the
              board of directors of the Person resulting from such Business
              Combination any such member of the Board who has died or who
              has otherwise become physically or mentally unable to serve or
              who has on his or her own volition resigned or refused to serve
              who but for such condition or action would have been a director
              immediately after such Business Combination);

                     (d)    Approval by the shareholders of the Company of a
              complete liquidation or dissolution of the Company pursuant to the
              corporation laws of the jurisdiction of incorporation of the
              Company; or

                     (e)    Notwithstanding the foregoing, a Change of Control
              shall not be deemed to occur if an acquisition, transfer or other
              event that would otherwise result in a Change of Control under
              this Section 2.3 is approved unanimously by all members of the
              Board prior to the consummation of such acquisition, transaction
              or other event (excluding, however, any member of the Board who
              abstains from such approval).

       2.4    CODE.  "Code" means the Internal Revenue Code of 1986, as amended
from time to time.

       2.5    COMMITTEE.  "Committee" means a committee of two or more members
of the Board appointed to administer the Plan, as set forth in Article 10
hereof.

                                     -3-
<PAGE>

       2.6    COMMON STOCK.  "Common Stock" means the common stock of the
Company, subject to adjustment pursuant to Section 4.2 hereof and further
subject to the provisions of Section 9.6 hereof for the period prior to a
Trigger Event.

       2.7    EXERCISE PRICE.  "Exercise Price" means the purchase price per
share of Common Stock payable upon exercise of an Option as specified in an
Option Agreement.

       2.8    FAIR MARKET VALUE.  "Fair Market Value" on any given date means
the value of one share of Common Stock, determined as follows:

              (a)    If the Common Stock is then listed or admitted to trading
       on a stock exchange or a NASDAQ market which reports closing sale prices,
       the Fair Market Value shall be the closing sale price on such principal
       stock exchange or NASDAQ market system on which the Common Stock is then
       listed or admitted to trading on the date of valuation, or, if no closing
       sale price is so quoted, then the Fair Market Value shall be the closing
       sale price of the Common Stock on such exchange or market system on the
       next preceding day for which a closing sale price is reported.

              (b)    If the Common Stock is not then listed or admitted to
       trading on a stock exchange or NASDAQ market system which reports closing
       sale prices, the Fair Market Value shall be the average of the closing
       bid and asked prices of the Common Stock in the over-the-counter market
       on the date of valuation.

              (c)    If neither (a) nor (b) is applicable as of the date of
       valuation, then the Fair Market Value shall be determined by the Board in
       good faith using any reasonable method of valuation, which determination
       shall be conclusive and binding on all interested parties.

       2.9    IPO.  "IPO" means the first consummation of a firm commitment
underwritten public offering of shares of Common Stock registered under the
Securities Act of 1933.

       2.10   NASD DEALER.  "NASD Dealer" means a broker-dealer that is a member
of the National Association of Securities Dealers, Inc.

       2.11   OPTION.  "Option" means any option to purchase Common Stock
granted pursuant to the Plan.

       2.12   OPTION AGREEMENT.  "Option Agreement" means the written agreement
between the Company and the Optionee with respect to an Option granted under the
Plan.

       2.13   OPTIONEE.  "Optionee" means a Participant who holds an Option.

       2.14   PARTICIPANT.  "Participant" means an individual or entity that has
received a grant of an Option or a grant of Restricted Stock under the Plan, and
where permitted under the Plan, includes such person's successors, heirs, legal
representatives and assigns.

       2.15   PERMITTED PERSON.  "Permitted Person" means (i) before, on or
after a Trigger Event any or all of Enron Corp., Enron Energy Services LLC or
Cortez Energy Services, LLC or any of their affiliates (as such term is defined
in Rule 12b-2 promulgated under the Exchange Act), (ii) before, on or after a
Trigger Event, any transferee of Common Stock or warrants to acquire Common
Stock from a Person referred to in clause (i) if such Person and its affiliates
retain

                                     -4-
<PAGE>

substantially all (i.e., at least 80%) of the economic risks and benefits of
ownership, and other than with respect to warrants to acquire Common Stock,
voting rights of such transferred Common Stock and (iii) on or after a
Trigger Event, any other Person who immediately prior to such Trigger Event
owns Outstanding Common Stock or Outstanding Voting Securities and who on or
after such Trigger Event does not acquire any additional beneficial ownership
of Outstanding Common Stock or Outstanding Voting Securities other than or as
 a result of acquisition by the Company or its subsidiaries.  For purposes of
this Plan, Enron Corp. and Enron Energy Services LLC shall be deemed to
beneficially own all Outstanding Common Stock and Outstanding Voting
Securities beneficially owned by Cortez Energy Services, LLC.

       2.16   PERSON.  "Person" means any individual, entity or group within the
meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act.

       2.17   RESTRICTED STOCK.  "Restricted Stock" means shares of Common Stock
issued pursuant to Article 6 hereof, subject to any restrictions and conditions
as are established pursuant to such Article 6.

       2.18   RESTRICTED STOCK AGREEMENT.  "Restricted Stock Agreement" means
the written agreement entered into between the Company and a Participant with
respect to Restricted Stock granted under the Plan to such Participant.

       2.19   SERVICE PROVIDER.  "Service Provider" means a consultant or other
person or entity that provides services to the Company or an Affiliated Company
and who the Board authorizes to become a Participant in the Plan.

       2.20   TERMINATION OF EMPLOYMENT FOR CAUSE.  "Termination of Employment
for Cause" means that the Company has discharged an employee for cause following
a determination by the Company that the employee:

                     (a)    has materially failed to perform the duties assigned
              to employee under an employment agreement (or otherwise as those
              duties are assigned in the event there is no employment agreement
              between the Company and the employee), or has abandoned those
              assigned duties, and has not remedied the situation within 15 days
              after receipt of written notice from the Company specifying the
              failure or abandonment;

                     (b)    has failed to abide by the Company's policies,
              rules, procedures or directives and has not remedied the situation
              within 15 days after receipt of written notice from the Company
              specifying the failures;

                     (c)    has acted with gross negligence or with willful
              misconduct in his or her conduct which resulted or could have
              resulted in harm to the Company's standing among stockholders,
              customers, suppliers, employees or other business relationships;

                     (d)    has been found guilty by, or has entered a plea of
              NOLO CONTENDERE with, a court of law with respect to fraud,
              dishonesty and/or a felony crime; or

                     (e)    has engaged in other misconduct, including but not
              limited to, breach of fiduciary duty, theft, fraud, dishonesty,
              embezzlement, violation of securities laws,

                                     -5-
<PAGE>

              violation of employment-related laws (including but not limited
              to laws prohibiting discrimination of employment), or
              falsification of employment applications or other business
              records.

       2.21   TERMINATION OF EMPLOYMENT BY REASON OF DEATH OR DISABILITY.
"Termination of Employment by Reason of Death or Disability" means that an
employee's employment with the Company has been terminated as a result of
employee's (i) death, or (ii) becoming incapacitated or disabled so as to
entitle employee to benefits under the Company's long-term disability plan
(which entitlement, for purposes of administration of the Plan, shall be
determined by the Committee), or (iii) becoming permanently and totally unable
to perform employee's duties, even with reasonable accommodation as a result of
any physical or mental impairment, which determination is supported by a written
opinion by a physician selected by the Company.

       2.22   TERMINATION OF EMPLOYMENT BY REASON OF RETIREMENT.  "Termination
of Employment by Reason of Retirement" means that an employee's employment with
the Company has terminated after the employee has either (i) attained the age of
65 or (ii) both attained the age of 60 and completed 10 or more years of
continuous service with the Company.

       2.23   TERMINATION OF EMPLOYMENT WITHOUT CAUSE.  "Termination of
Employment Without Cause" with respect to an employee means that:

                     (a)    The employment of the employee was involuntarily
              terminated by the Company for reasons other than Termination of
              Employment for Cause, Termination of Employment by Reason of Death
              or Disability, Termination of Employment by Reason of Retirement,
              or Voluntary Termination of Employment; provided, however, that
              the Company's failure to renew or extend an employment agreement
              such that the term of the agreement concludes, or the Company's
              termination of employment of an employee serving as an employee at
              will, shall not constitute an involuntary termination or
              Termination of Employment Without Cause; or

                     (b)    The Company has breached a material provision of the
              employee's employment agreement, such breach remained uncorrected
              for 30 days following employee's written notice to the Company of
              such breach and the employee has terminated his employment with
              the Company after such 30 day period as a result of such uncured
              breach.

       2.24   TRIGGER EVENT.  "Trigger Event" means the first to occur of (a) a
consummation of an IPO or (b) any consolidation or merger of the Company with or
into any Person as a result of which the Common Stock is converted into or
exchanged for securities of any Person that are publicly traded on a national
securities exchange or automated quotation system or for cash or for a
combination of the foregoing.

       2.25   VOLUNTARY TERMINATION OF EMPLOYMENT.  "Voluntary Termination of
Employment" means that employee's employment with the Company has terminated
because:

                     (a)    the employee has resigned or otherwise left the
              employ of the Company on his or her own volition, other than in
              circumstances constituting a Termination of Employment for Cause,
              a Termination of Employment Without

                                     -6-
<PAGE>

              Cause, a Termination of Employment by Reason of Death or
              Disability, or a Termination of Employment by Reason of
              Retirement; or

                     (b)    the Company has terminated the employment of an
              employee serving as an employee at will.

                                     ARTICLE 3

                           ELIGIBILITY AND PARTICIPATION

       3.1    EMPLOYEES.  All employees of the Company or of an Affiliated
Company are eligible to receive grants of Options or grants of Restricted Stock
under the Plan.  Where grants of Options or grants of Restricted Stock are made
to or held by employees of an Affiliated Company, provisions in this Plan
referring to the "Company" (E.G.,  Sections 2.20, 2.21, 2.22, 2.23 and 2.25)
shall be read such that the Affiliated Company may act, operate or make
determinations as if it were the Company for these purposes and otherwise
Affiliated Company shall be inserted in substitution for Company where the
context requires; provided, however, that only the Company may exercise the
powers conferred upon the Company in Articles 9, 11 and 12 of the Plan, and that
references to the Company in Sections 2.3, 2.9 and 2.24 refer to the Company
only.

       3.2    NON EMPLOYEES.  Members of the Board, officers of the Company and
Service Providers who are not employees of the Company or an Affiliated Company
are eligible to receive grants of Options or grants of Restricted Stock under
the Plan.

       3.3    RIGHTS OF PARTICIPANTS.  Upon the grant of Options or Restricted
Stock pursuant to this Plan, the rights of the Participants with respect to the
grant shall be as established by the grant agreement (the Option Agreement or
the Restricted Stock Agreement, as applicable) and this Plan as administered by
the Committee.  The terms of any grant under this Plan cannot be modified,
altered or amended unless such action is approved in writing by the Committee,
and no other statements, representations, or writings of any kind not so
approved by the Committee shall operate to modify those terms.

                                     ARTICLE 4

                                    PLAN SHARES

       4.1    SHARES SUBJECT TO THE PLAN.  A total of 92,097 shares of Common
Stock may be issued under the Plan, subject to adjustment as to the number and
kind of shares pursuant to Section 4.2 hereof.  In the event that (a) all or any
portion of any Option or Restricted Stock granted or offered under the Plan can
no longer under any circumstances be exercised or become vested, or (b) any
shares of Common Stock are reacquired by the Company pursuant to an Option
Agreement or Restricted Stock Agreement, where in the case of either clause (a)
or (b) no alternative consideration has been provided to the Participant, then
the shares of Common Stock allocable to the unexercised portion of such Option
or such grant of Restricted Stock shall again be available for grant or issuance
under the Plan.

       4.2    CHANGES IN CAPITAL STRUCTURE; BUSINESS COMBINATIONS.

              (a)    In the event that the outstanding shares of Common Stock
       are hereafter increased or decreased or changed into or exchanged for a
       different number or kind of shares or other securities of the Company by
       reason of a recapitalization, stock split, combination

                                     -7-
<PAGE>

       of shares, reclassification, stock dividend, or other similar change
       in the capital structure of the Company, then appropriate adjustments
       shall be made by the Committee to the aggregate number and kind of
       shares subject to this Plan, and the number and kind of shares and the
       price per share subject to outstanding Option Agreements and
       Restricted Stock Agreements shall be adjusted in order to preserve, as
       nearly as practical, but not to increase, the benefits to Participants.
       Further, if an equity capital contribution is made to the Company,
       stockholders and Plan Participants will experience a dilution in their
       shares of Common Stock, Options, and rights to acquire Restricted Stock
       as a result of such contribution, but Plan Participants shall have no
       recourse with respect to that dilution.

              (b)    In the event of any consolidation with or merger of the
       Company with or into another Person (except for a merger in which there
       is no change in or distribution with respect to the Common Stock), or in
       case of any sale or disposition to another Person of all or substantially
       all of the assets of the Company, then appropriate adjustments shall be
       made by the Committee so that the number and kind of shares and the price
       per share subject to outstanding Option Agreements and Restricted Stock
       Agreements shall thereafter cover, and shall only cover, the number and
       kind of shares of stock, other securities, property (including, without
       limitation, cash) or combination thereof to which the holder of the
       Option Agreements or Restricted Stock Agreements, as the case may be,
       would have received in connection with such merger, consolidation, sale
       or disposition of assets as if, immediately prior to such merger,
       consolidation or sale or disposition of assets, the holder of such Option
       Agreement or Restricted Stock Agreement had been the holder of the number
       of shares of Common Stock then subject to each Option or Restricted
       Stock, and the holder of each Option Agreement shall thereafter not have
       the right to acquire any Common Stock.  For purposes of this Section
       4.2(b), if holders of Common Stock have the right to make an election as
       to the form of consideration to be received in connection with any such
       transaction, then such adjustment shall provide for the holders of an
       Option Agreement or a Restricted Stock Agreement to receive the form of
       consideration or combination of consideration with respect to which the
       holders of the greatest number of shares of Common Stock so elect.  Upon
       any consolidation with or merger of the Company with or into another
       Person in which Outstanding Option Agreements shall, pursuant to this
       Section 4.2(b), only represent the right to receive cash, the Committee
       shall have the right to cash-out or otherwise defease all outstanding
       Options by delivery of cash to the holders of Option Agreements in an
       amount equal to the difference between the applicable exercise price and
       the cash payable in respect of a share of Common Stock in connection with
       such merger or consolidation and holders of Option Agreements shall no
       longer have any claim or entitlement with respect to the Option
       Agreements.

              (c)    In the event of any dividend or distribution in respect of
       shares of Common Stock other than an ordinary cash dividend or a dividend
       or distribution of additional shares of Common Stock (in which event the
       provisions of Section 4.2(a) shall apply), then the Committee shall have
       the power, but not the obligation, to adjust the number and kind of
       shares and the price per share subject to outstanding Option Agreements
       and Restricted Stock Agreements to the extent the Committee determines is
       necessary to preserve, as nearly as practical, but not to increase, the
       benefits to Participants.

                                     -8-
<PAGE>

              (d)    The existence of the Plan and the Options granted hereunder
       shall not affect in any way the right or power of the Board or the
       shareholders of the Company to make or authorize any adjustment,
       recapitalization, reorganization or other change in the Company's capital
       structure or its business, any merger or consolidation of the Company,
       any issue of debt or equity securities, the dissolution or liquidation of
       the Company or any sale, lease, exchange or other disposition of all or
       any part of its assets or business or any other corporate act or
       proceeding.

                                     ARTICLE 5

                                      OPTIONS

       5.1    NATURE OF OPTIONS.  Options granted under the Plan are not
intended to constitute incentive stock options within the meaning of Section
422(b) of the Code.

       5.2    GRANTS OF OPTIONS.  An Option entitles the Optionee to acquire
shares of Common Stock by payment to the Company of the Exercise Price, subject
to such terms, restrictions, and conditions as the Committee may determine at
the time of grant.  Notwithstanding any provision in the Plan to the contrary,
the maximum number of shares that may be subject to Options granted under the
Plan to an individual Optionee during any calendar year may not exceed, with
respect to Options granted prior to September 1, 2000, 15,000 (subject to
adjustment as to the number and kind of shares pursuant to Section 4.2 hereof)
and may not exceed, with respect to Options granted on or after September 1,
2000, 7,500 (subject to adjustment as to the number and kind of shares pursuant
to Section 4.2 hereof).  The limitations set forth in the preceding sentence
shall be applied in a manner which will permit compensation generated under the
Plan with respect to Options to constitute "performance-based" compensation for
purposes of Section 162(m) of the Code, including, without limitation, counting
against such maximum number of shares, to the extent required under Section
162(m) of the Code and applicable authority thereunder, any shares subject to
Options that are canceled or repriced.

       5.3    OPTION AGREEMENT.  Each Option granted pursuant to this Plan shall
be evidenced by an Option Agreement, executed by both the Company and the
Optionee, which shall specify the number of shares subject thereto, vesting
provisions relating to such Option, the Exercise Price per share, and the date
upon which the grant will expire unless terminated earlier by other provisions
of the Plan.  As soon as is practical following the grant of an Option, an
Option Agreement shall be duly executed and delivered by or on behalf of the
Company to the Optionee to whom such Option was granted.  No Option Agreement
may amend or otherwise be inconsistent with the terms of the Plan.

       5.4    EXERCISE PRICE.  The Exercise Price per share of Common Stock
covered by each Option shall be determined by the Committee, but, on or after
September 1, 2000, shall not be less than 100% of Fair Market Value on the date
the Option is granted.

       5.5    PAYMENT OF EXERCISE PRICE.  Payment of the Exercise Price shall be
made upon exercise of an Option and may be made, in the discretion or the
Committee, subject to any legal restrictions, by: (a) cash; (b) check; (c)
provided that a public market for the Common Stock exists, the surrender of
shares of Common Stock owned by the Optionee that have been held by the Optionee
for at least six (6) months, which surrendered shares shall be valued at Fair
Market Value as of the date of such exercise, and further provided that shares
of Restricted Stock that have not then

                                     -9-
<PAGE>

vested do not qualify for this purpose; (d) the cancellation of indebtedness
of the Company to the Optionee; (e) provided that a public market for the
Common Stock exists, a "same day sale" commitment from the Optionee and an
NASD Dealer whereby the Optionee irrevocably elects to exercise the Option
and to sell a portion of the shares so purchased to pay for the Exercise
Price and whereby the NASD Dealer irrevocably commits upon receipt of such
shares to forward the Exercise Price directly to the Company; (f) provided
that a public market for the Common Stock exists, a "margin" commitment from
the Optionee and an NASD Dealer whereby the Optionee irrevocably elects to
exercise the Option and to pledge the shares so purchased to the NASD Dealer
in a margin account as security for a loan from the NASD Dealer in the amount
of the Exercise Price, and whereby the NASD Dealer irrevocably commits upon
receipt of such shares to forward the Exercise Price directly to the Company;
or (g) any combination of the foregoing methods of payment or any other
consideration or method of payment as shall be permitted by applicable
corporate law and acceptable to the Committee.

       5.6    TERM AND TERMINATION OF OPTIONS.  The term and provisions for
termination of each Option shall be administered by the Committee and specified
in the Option Agreement.  The term for exercise of any Option granted to any
employee shall be ten years from the effective date of the Option Agreement and
such term shall not be extended by the Committee, although that term may be
shortened by the Committee or by operation of other provisions of this Plan.  As
to Options granted to non-employees pursuant to Section 3.2, the Committee shall
determine the period of exercise, provided that no Option may be exercisable
more than ten years after the date it is granted.

       5.7    VESTING AND EXERCISE OF OPTIONS.  Each Option shall vest and
become exercisable in one or more installments at such time or times, and
subject to such conditions for accelerated vesting, including without limitation
the achievement of specified performance goals or objectives, as shall be
determined by the Committee.

       5.8    NON-TRANSFERABILITY OF OPTIONS.  No Option shall be assignable or
transferable except by will or the laws of descent and distribution and in
accordance with Article 7, and during the life of the Optionee any Option shall
be exercisable only by such Optionee or his or her legal representative;
provided, however, that, in the discretion of and subject to the approval (which
need not be given) of the Committee, an Option may be assigned or transferred in
any manner which any such option is permitted to be assigned or transferred
under the Code.

       5.9    RIGHTS AS SHAREHOLDER. An Optionee or permitted transferee of an
Option shall have no rights or privileges as a shareholder with respect to any
shares covered by an Option until such Option has been duly exercised and
certificates representing shares purchased upon such exercise have been issued
to such person.

                                     ARTICLE 6

                                  RESTRICTED STOCK

       6.1    GRANTS OF RESTRICTED STOCK.  A grant of Restricted Stock pursuant
to a Restricted Stock Agreement entitles the recipient to acquire shares of
Common Stock subject to such terms, restrictions and conditions as the Committee
may determine at the time of grant.

       6.2    GRANTS OF PERFORMANCE-BASED RESTRICTED STOCK.  The Committee is
authorized, but not required, to make grants of Restricted Stock which qualify
as performance-based compensation

                                     -10-
<PAGE>

under Section 162(m) of the Code such that the issuance of such Restricted
Stock is contingent upon the attainment of pre-established performance
criteria or such that the forfeiture restrictions with respect to such
Restricted Stock lapse contingent upon attainment of pre-established
performance criteria.  The performance criteria to be used with respect to
such Restricted Stock awards shall be any or a combination of:  net income
performance criteria, cash-flow performance criteria, earnings per share
performance criteria, stock appreciation performance criteria, or total
shareholder return performance criteria, as determined by the Committee.
Performance criteria with respect to Restricted Stock grants made for each
performance period, defined as each calendar year, shall be established by
the Committee prior to the January 1 of each calendar year or such later date
as may be permitted under Section 162(m) of the Code and interpreting
authority promulgated thereunder. Notwithstanding any other provision of the
Plan, no individual shall receive a grant of Restricted Stock pursuant to
this Section 6.2 totaling more than, with respect to grants of Restricted
Stock prior to September 1, 2000, 5,000 shares of stock in any calendar year
performance period (subject to adjustment as to the number and kind of shares
pursuant to Section 4.2 hereof) or more than, with respect to grants of
Restricted Stock on or after September 1, 2000, 2,500 shares of stock in any
calendar year performance period (subject to adjustment as to the number and
kind of shares pursuant to Section 4.2 hereof).

       6.3    RESTRICTED STOCK AGREEMENT.  Each Restricted Stock Agreement shall
be executed by both the Company and the holder of the Restricted Stock and shall
be in such form, and shall set forth the terms, conditions and restrictions of
the Restricted Stock, not inconsistent with the provisions of this Plan, as the
Committee shall, from time to time, deem desirable.  Each Restricted Stock
Agreement may be different from each other Restricted Stock Agreement.  No
Restricted Stock Agreement may amend or otherwise be inconsistent with the terms
of the Plan.

       6.4    RIGHTS AS A SHAREHOLDER.  Upon issuance of Restricted Stock, a
Participant shall have the rights of a shareholder with respect to the
Restricted Stock, including voting and dividend rights, subject to the terms,
restrictions and conditions as are set forth herein and in the Restricted Stock
Agreement.  Unless the Committee shall determine otherwise, certificates
evidencing shares of Restricted Stock shall remain in the possession of the
Company until such shares have vested and are no longer subject to any
restrictions on transfer in accordance with the terms of the Restricted Stock
Agreement.

       6.5    VESTING OF RESTRICTED STOCK.  The Restricted Stock Agreement shall
specify the date or dates, the performance goals or objectives that must be
achieved, if any, and any other conditions on which the Restricted Stock may
vest.

       6.6    DIVIDENDS.  All dividends and distributions, or cash equivalent
thereof (whether cash, stock or otherwise), on unvested Restricted Stock shall
be withheld from the respective Participant and credited by the Company to the
Participant's account in the general accounts of the Company and not in any
trust or related account for the benefit of the Participant.  At such time as a
Participant becomes vested in a portion of the grant of Restricted Stock, all
accumulated credits for dividends and distributions, or cash equivalent thereof
attributable to such vested Restricted Stock, shall be released or made
available to the Participant.  Interest shall not be paid on any dividends or
distributions or cash equivalent thereof which have been credited by the Company
for the account of a Participant.  The Company shall have the option of paying
such credits for accumulated dividends or distributions or cash equivalent
thereof, in shares of Common Stock of the Company

                                     -11-
<PAGE>

rather than in cash.  If payment is made in shares, the conversion to shares
shall be at the Fair Market Value.  Dividends and distributions, or cash
equivalent thereof credited on non-vested Restricted Stock shall be forfeited
in the same manner and at the same time as the respective shares of
Restricted Stock to which they are attributable are forfeited.

       6.7    NON-ASSIGNABILITY OF RIGHTS.  No Participant's right to acquire
shares of Restricted Stock shall be assignable or transferable except by will or
the laws of descent and distribution and in accordance with Article 7; provided,
however, in the discretion of and subject to the approval (which need not be
given) of the Committee, Restricted Stock may be assigned or transferred in any
manner which any such grant is permitted to be assigned or transferred under the
Code.  In the event of any such assignment or transfer, the shares of Restricted
Stock held by the transferee shall remain subject to forfeiture pursuant to the
application of Section 7.1(d) or (e) as if no transfer had occurred.

                                     ARTICLE 7

                             TERMINATION OF EMPLOYMENT,
                       OR TERMINATION OF STATUS AS DIRECTOR,
                     NON-EMPLOYEE OFFICER, OR SERVICE PROVIDER

       7.1    EFFECT OF TERMINATION OF EMPLOYMENT. Unless otherwise provided
pursuant to an Option Agreement or Restricted Stock Agreement and approved by
the Committee, in the event of a termination of employment of a Participant who
is an employee of the Company, Options that have been granted to that employee
and are outstanding but which have not been exercised (whether or not then
subject to the right to exercise) and Restricted Stock granted to that employee
which is outstanding and which has not vested, shall be treated as follows:

              (a)    Upon Termination of Employment by Reason of Death or
       Disability, any then-outstanding (whether or not otherwise exercisable at
       that time) Options shall become immediately exercisable by the Optionee
       or his or her legal representative, and shall remain exercisable until
       the earlier of three years after the date of the termination of
       employment or the expiration of the grant, and any prior grant of
       Restricted Stock that is outstanding shall immediately vest to the extent
       it has not vested and shall be available for sale or other disposition
       subject to the terms of the Plan;

              (b)    Upon Termination of Employment Without Cause or Termination
       of Employment by Reason of Retirement, any then-outstanding (whether or
       not otherwise exercisable at that time) Options shall become immediately
       exercisable and shall remain subject to exercise until the earlier of
       three years after the date of the termination of employment or the
       expiration of the grant;

              (c)    Upon Termination of Employment Without Cause or upon
       attaining the age or age and service requirement to qualify for a
       Termination of Employment by Reason of Retirement, any prior grant of
       Restricted Stock that is outstanding to the extent it has not vested
       shall immediately vest and shall be available for sale or other
       disposition subject to the terms of the Plan;

              (d)    Upon Voluntary Termination of Employment, any
       then-outstanding (whether or not otherwise exercisable at that time)
       Options shall be cancelled at the time of

                                     -12-
<PAGE>

       termination and shall no longer be exercisable, and any then-outstanding
       Restricted Stock that has not then vested shall be cancelled and rendered
       null and void at the time of such termination; provided, however, that
       if the date of Voluntary Termination occurs after the earlier of a
       Trigger Event or June 30, 2001, any then-outstanding Options that were
       exercisable as of the date of Voluntary Termination of Employment may
       be exercised within 60 days of the date of Voluntary Termination of
       Employment; or

              (e)    Upon Termination of Employment for Cause, any
       then-outstanding (whether or not otherwise exercisable at that time)
       Options shall be cancelled at the time of termination and shall no longer
       be exercisable, and any then-outstanding Restricted Stock that has not
       then vested shall likewise be cancelled and rendered null and void.

       7.2    CHANGE IN STATUS FROM EMPLOYEE TO SERVICE PROVIDER.  If an
employee terminates his or her employment and immediately thereafter commences
as a Service Provider, the Committee may, but is not required to, waive the
provisions of either Section 7.1(b), 7.1(c) or 7.1(d) above and treat that
individual as if he or she remained as an employee for purposes of the
administration of the Plan and the operation of any Option Agreement or
Restricted Stock Agreement between the Company and such individual, as long as
such individual remains a Service Provider of the Company.

       7.3    EFFECT OF TERMINATION OF STATUS AS DIRECTOR.  Unless otherwise
provided pursuant to an Option Agreement or Restricted Stock Agreement, in the
event of termination of an individual's status as director of the Company,
Options that have been granted to that director and are outstanding but which
have not been exercised (whether or not then subject to the right to exercise)
and Restricted Stock granted to that director which is outstanding and has not
become vested, shall be treated as follows:

              (a)    Upon termination of status as a director by reason of (i)
       retirement as a director at or after the retirement age specified in the
       Company's bylaws or by a resolution adopted by the Board and with the
       consent of the Board, (ii) the director's total or permanent disability,
       (iii) the director's death (iv) the director's resignation from the Board
       and in connection therewith the Board has consented to the full vesting
       of Options and Restricted Stock held by such director, or (v) the
       director's not standing for election at a shareholders' meeting and in
       connection therewith the Board has consented to the full vesting of
       Options and Restricted Stock held by such director, any then outstanding
       (whether or not exercisable at that time) Options shall become available
       for exercise by the director or his or her legal representative and shall
       remain exercisable until the earlier of the expiration of three years or
       the expiration of the grant, and any prior grant of Restricted Stock then
       outstanding shall immediately vest to the extent it has not vested and
       shall be available for sale or other disposition subject to the terms of
       the Plan; or

              (b)    Upon termination of status as director other than as
       described in subsection (a) above, all Options to the extent not
       theretofore exercised shall be cancelled at the time of termination and
       shall no longer be exercisable, and all Restricted Stock to the extent
       then not vested shall likewise be cancelled and rendered null and void.

              (c)    If an individual is a director of the Company and also an
       employee of the Company or a Service Provider, the provisions of this
       Section 7.3 shall apply only to the

                                     -13-
<PAGE>

       Option Agreements and Restricted Stock Agreements which expressly
       provide that they are granted to such Participant in his or her
       capacity as a director and not as an employee or Service Provider
       (in which event the provisions of Article 7 shall apply).

       7.4    CHANGE IN STATUS FROM DIRECTOR TO SERVICE PROVIDER.  If a
director terminates his or her directorship and immediately thereafter
commences as a Service Provider, the Committee may, but is not required to,
waive the provisions of Section 7.3(b) above and treat that individual as if
he or she remained as a director for purposes of the administration of the
Plan and the operation of any Option Agreement or Restricted Stock Agreement
between the Company and such individual, as long as such individual remains a
Service Provider.

       7.5    EFFECT OF TERMINATION AS NON-EMPLOYEE OFFICER OR SERVICE
PROVIDER. Unless otherwise provided pursuant to an Option Agreement or
Restricted Stock Agreement, in the event of the termination of a Person's
status as (a) an officer of the Company who is not an employee of the Company
or Affiliated Company, or (b) as a Service Provider, any then-outstanding
(whether or not otherwise exercisable at that time) options shall be cancelled
at the time of such termination and shall no longer be exercisable, and any
then-outstanding Restricted Stock that has not then vested shall be cancelled
and rendered null and void at the time of such termination.

                                     ARTICLE 8
                                 CHANGE OF CONTROL

       8.1    CHANGE OF CONTROL.  Unless otherwise provided pursuant to an
Option Agreement or Restricted Stock Agreement, upon the occurrence of any
Change of Control, (a) any then-outstanding (whether or not otherwise
exercisable at that time) Options held by any then director, employee, officer
or Service Provider shall become immediately exercisable and shall remain
subject to exercise until the later of (i) the date such Option would remain
subject to exercise but for this Section 8.1 and (ii) the earlier of three
years after the date of the Change of Control or the expiration of the grant;
and (b) any prior grant of Restricted Stock that is outstanding to the extent
it has not vested shall immediately vest and shall be available for sale or
other disposition subject to the terms of the Plan.

                                     ARTICLE 9
                       PROVISIONS RELATING TO A TRIGGER EVENT

       9.1    ARTICLE CONTROLS.  Any provisions of the Plan, any Option
Agreement or any Restricted Stock Agreement to the contrary notwithstanding,
the provisions of this Article 9 shall control with respect to all periods
prior to the consummation of a Trigger Event and, with respect to Sections 9.2
and 9.3, after the consummation of a Trigger Event to the extent provided
therein; provided, however, that an Option Agreement or a Restricted Stock
Agreement may modify the terms of this Article 9 to the extent expressly
permitted under this Article 9.

       9.2    RESTRICTIONS ON EXERCISE OF OPTIONS.  No Option granted under
the Plan may be exercised in whole or in part at any time prior to the earlier
of the consummation of a Trigger Event or December 31, 2008 (the "First
Exercise Date") except that the Committee, in its sole discretion and subject
to such terms and conditions as the Board may impose, may allow the exercise
of such Option; provided, however, that if an Optionee's employment with the
Company terminates prior to the First Exercise Date for any reason other than
Termination of Employment for Cause or, prior

                                      -14-

<PAGE>

to June 30, 2001, for any reason other than Termination of Employment for
Cause or a Voluntary Termination of Employment, or an Optionee's directorship
terminates prior to the First Exercise Date for any reason referred to in
Section 7.3(a), the exercise period of such Optionee with respect to vested
Options shall be extended (except to the extent the Option Agreement expressly
provides for a shorter exercise period under such circumstances prior to the
First Exercise Date) until the later of (i) the date the Option would cease to
be exercisable but for this Article 9, and (ii) the earlier of (x) the date
which is six months after the earlier of (I) the First Exercise Date (unless
the First Exercise Date results from the consummation of an IPO in which event
the date which is six months after the expiration of any applicable lock-up
period referred to in the last sentence of this Section 9.2) or (II) the first
date the Committee allows exercise of such Option or (y) the expiration of the
term of exercise of such Option without regard to the termination of
employment or the termination of directorship.  Notwithstanding the foregoing,
if the First Exercise Date results from the consummation of an IPO, then no
Option granted under the Plan may be exercised in whole or in part at any time
prior to the 180th day following the consummation of the IPO unless prior to
such exercise the Optionee executes and delivers to the Company a "lock-up"
agreement in the form requested by the Company prohibiting such Optionee from
selling Common Stock or taking similar action until after such 180th day
unless the Company waives such requirement.

       9.3    RESTRICTIONS ON TRANSFER OF RESTRICTED STOCK.  Unless the Board
otherwise consents, prior to the consummation of a Trigger Event (or if the
Trigger Event results from the consummation of an IPO, then prior to the 180th
day following the consummation of the IPO), no Restricted Stock or shares of
Common Stock acquired upon the vesting of Restricted Stock may be assigned or
transferred.

       9.4    BENEFICIAL OWNERSHIP.  In determining the beneficial ownership
of Outstanding Common Stock or Outstanding Voting Securities of a Person for
purposes of the definition of Change of Control, such beneficial ownership
shall be determined as if the Stockholders Agreement dated as of January 6,
2000 among the Company and the Stockholders named therein, as amended, did not
exist.

       9.5    CHANGE OF CONTROL.  Prior to a Trigger Event, the references to
"25%" in subsection 2.3(a) and subsection 2.3(c) shall be deemed to be
references to "40%", and the references to "70%" in subsection 2.3(c) shall be
deemed to be references to "a majority."

       9.6    COMMON STOCK.  Prior to a Trigger Event, the term "Common Stock"
shall mean the non-voting common stock of the Company, subject to adjustment
pursuant to Section 4.2 hereof; provided, however, that term "Common Stock" as
used in Sections 2.3 and 2.24 shall mean the common stock and the non-voting
common stock of the Company, and the term "Common Stock" as used in Section
2.9 shall mean the common stock or the non-voting common stock of the Company.

       9.7    AFFILIATED COMPANY.  Prior to a Trigger Event, the term
"Affiliated Company" shall also include any Permitted Person.

                                      -15-

<PAGE>

                                     ARTICLE 10
                             ADMINISTRATION OF THE PLAN

       10.1   COMMITTEE.  The Plan shall be administered by the Committee,
which shall be appointed by the Board; provided, however, that prior to the
consummation of an IPO and unless the Board acts otherwise, the Committee
shall be the Special Committee of the Board.  For any period during which
compensation derived with respect to awards made under the Plan would be
potentially subject to the compensation deduction limitations of Section
162(m) of the Code, the members of the Committee shall be comprised solely of
two or more outside directors (within the meaning of Section 162(m) of the
Code and applicable interpretative authority thereunder).

       10.2   POWERS OF THE COMMITTEE.  In addition to any other powers or
authority conferred upon the Committee elsewhere in the Plan or by law and
subject to the limitations provided elsewhere herein, the Committee shall have
full power and authority:  (a) to determine, or to delegate the determination
to the chief executive officer of the Company subject to any limitations
imposed by the Committee, the persons to whom, and the time or times at which,
Options and awards of Restricted Stock shall be granted, the number of shares
to be represented by each Option and grant of Restricted Stock and the
consideration, if any, to be received by the Company upon the exercise
thereof; (b) to construe and interpret provisions of the Plan and other
documents and agreements pertaining to the Plan; (c) to create, amend or
rescind rules and regulations relating to the Plan; (d) to determine the
terms, conditions and restrictions contained in, and the form of, Option
Agreements and Restricted Stock Agreements; (e) to determine the identity or
capacity of any persons who may be entitled to exercise a Participant's rights
under any Option or Restricted Stock Agreement granted under the Plan; (f) to
correct any defect or supply any omission or reconcile any inconsistency in
the Plan or in any Option Agreement or Restricted Stock Agreement; (g) to
accelerate the vesting of any Option or grant of Restricted Stock; (h) to
extend the exercise date of any Option and vesting date of any grant of
Restricted Stock, but not beyond ten years from the date of grant of such
Option or Restricted Stock; (i) to amend outstanding Option Agreements and
Restricted Stock Agreements to provide for, among other things, any change or
modification which the Committee could have provided for upon the grant of an
Option or Restricted Stock or in furtherance of the powers provided for
herein; and (j) to make all other determinations necessary or advisable for
the administration of the Plan, but only to the extent not contrary to the
express provisions of the Plan. Any action, decision, interpretation or
determination made in good faith by the Committee in the exercise of its
authority conferred upon it under the Plan shall be final and binding on the
Company and all Participants.

       10.3   LIMITATION ON LIABILITY.  No employee of the Company or member
of the Board or Committee shall be subject to any liability with respect to
duties under the Plan unless the person acts fraudulently or in bad faith.

                                      -16-

<PAGE>

                                      ARTICLE 11
                       AMENDMENT AND TERMINATION OF THE PLAN

       11.1   AMENDMENTS.  The Board may from time to time alter, amend,
suspend or terminate the Plan in such respects as the Board may deem
advisable. No such alteration, amendment, suspension or termination shall be
made which shall substantially affect or impair the rights of any Participant
under an outstanding Option Agreement or Restricted Stock Agreement without
such Participant's consent.  The Board may alter or amend the Plan to comply
with requirements under the Code relating to options which give Optionees more
favorable tax treatment than that applicable to Options granted under this
Plan as of the date of its adoption. Upon any such alteration or amendment,
any outstanding Option granted hereunder may, if the Committee so determines
and if permitted by applicable law, be subject to the more favorable tax
treatment afforded to an Optionee pursuant to such terms and conditions.

       11.2   TERMINATION.  Unless the Plan shall  have been terminated by
prior authorized or required act, no Options or grants of Restricted Stock may
be granted under the Plan after January 6, 2010, but Option Agreements and
Restricted Stock Agreements then outstanding shall continue in effect in
accordance with their respective terms and provisions.

                                      ARTICLE 12
                                  TAX WITHHOLDING

       12.1   WITHHOLDING.  The Company shall have the power to withhold, or
require a Participant to remit to the Company, an amount sufficient to satisfy
any applicable Federal, state, and local tax withholding requirements with
respect to any Options exercised or Restricted Stock issued under the Plan.
To the extent permissible under applicable tax, securities and other laws, the
Committee may, in its sole discretion and upon such terms and conditions as it
may deem appropriate, permit a Participant to satisfy his or her obligation to
pay any such tax, in whole or in part, up to an amount determined on the basis
of the highest marginal tax rate applicable to such Participant, by (a)
directing the Company to apply shares of Common Stock to which the Participant
is entitled as a result of the exercise of an Option or as a result of the
purchase of or lapse of restrictions on Restricted Stock up to, but not more
than, an amount calculated by the Company at the minimum withholding rate or
(b) delivering to the Company shares of Common Stock owned by the Participant
without restriction for a period of at least six months. The shares of Common
Stock so applied or delivered in satisfaction of the Participant's tax
withholding obligation shall be valued at their Fair Market Value as of the
date of measurement of the amount of income subject to withholding.

                                     ARTICLE 13
                                   MISCELLANEOUS

       13.1   STOCKHOLDER APPROVAL.  Notwithstanding anything to the contrary
herein, no Option shall be exercisable nor shall any Restricted Stock vest
unless the Plan is approved by the shareholders of the Company within twelve
months of the Effective Date.

                                      -17-

<PAGE>

       13.2   GOVERNING LAW.  This Plan shall be governed by and construed in
accordance with the substantive law of the State of Delaware without giving
effect to the choice of law rules of the State of Delaware.

       13.3   SUCCESSORS.  The terms and conditions of this Plan shall inure
to the benefit of and bind the Company and the Participants and their
successors, permitted assignees, and representatives.

       13.4   BENEFITS NOT ALIENABLE.  Other than as provided by this Plan,
benefits under the Plan may not be assigned or alienated, whether voluntarily
or involuntarily.  Any unauthorized attempt at assignment, transfer, pledge or
other disposition shall be without effect and shall operate, in the
Committee's discretion, to cancel the grant of Options or Restricted Stock at
issue.

       13.5   NO ENLARGEMENT OF RIGHTS.  This Plan is strictly a voluntary
undertaking of the Company and shall not be deemed to constitute a contract
between the Company and any Participant to be consideration for, or an
inducement to, or a condition of, the employment of any Participant or, in the
case of directors, officers or Service Providers, consideration for, or an
inducement to, or a condition of the Participant's respective services to the
Company.  Nothing contained in the Plan shall be deemed to give the right to
any Participant to be retained as an employee, director, officer or Service
Provider of the Company or any Affiliated Company or to interfere with the
right of the Company or any Affiliated Company to discharge any Participant at
any time.

       13.6   NOTICES.  All notices required in connection with the Plan shall
be in writing and sent by first class mail with postage prepaid.  Any notice
to the Company shall be addressed to the attention of its then Chief Executive
Officer at the principal office of the Company.  Any notice to Participant
shall be addressed to the Participant at the most recent address for such
person in the Company's records.

       13.7   GENDER, SINGULAR AND PLURAL.  All pronouns, and any variations
thereof, shall be deemed to refer to the masculine, feminine, or neuter, as
the identity of the person(s) or entity(s) may require.  As the context may
require, the singular may be read as the plural and the plural as the singular.

       13.8   CAPTIONS.  The captions to the articles, sections, and
paragraphs of this Plan are for convenience only and shall not control or
affect the meaning or construction of any of its provisions.

                                      -18-

<PAGE>

       Adopted pursuant to resolution of the Board of Directors of the Company
this 6th day of September, 2000, effective as of the 6th day of January, 2000.

TNPC, INC.

BY:
   ------------------------------
TITLE

                                      -19-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}]]