Document:

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                                                                     EXHIBIT 4.6

                        NRG SOUTH CENTRAL GENERATING LLC
                                      and
                            LOUISIANA GENERATING LLC

           $500,000,000 8.962% Series A Senior Secured Bonds due 2016
           $300,000,000 9.479% Series B Senior Secured Bonds due 2024

                    EXCHANGE AND REGISTRATION RIGHTS AGREEMENT

                                                                  March 30, 2000

CHASE SECURITIES INC.
LEHMAN BROTHERS INC.
On behalf of the Initial Purchasers
Named in Schedule 1 hereto

 Ladies and Gentlemen:

                  NRG South Central Generating LLC, a Delaware limited liability
company (the "Issuer"), proposes to issue and sell to the Initial Purchasers
named in Schedule 1 hereto (the "Initial Purchasers"), upon the terms and
subject to the conditions set forth in a purchase agreement dated March 30, 2000
(the "Purchase Agreement"), between the Issuer, the Subsidiary Guarantor and the
Initial Purchasers, $500,000,000 aggregate principal amount of its 8.962% Series
A Senior Secured Bonds due 2016 and $300,000,000 aggregate principal amount of
its 9.479% Series B Senior Secured Bonds due 2024 (the "Bonds"). Capitalized
terms used but not defined herein shall have the meanings given to such terms in
the Purchase Agreement.

                  As an inducement to the Initial Purchasers to enter into the
Purchase Agreement and in satisfaction of a condition to the obligations of the
Initial Purchasers thereunder, the Issuer and the Subsidiary Guarantor (together
with the Issuer, the "Registrants") agrees with the Initial Purchasers, for the
benefit of the holders (including the Initial Purchasers) of the Bonds, the
Exchange Bonds (as defined herein) and the Private Exchange Bonds (as defined
herein) (collectively, the "Holders"), as follows:

                  1.       Registered Exchange Offer. The Registrants shall use
                           their reasonable best efforts to (i) prepare and file
                           with the Commission a registration statement (the
                           "Exchange Offer Registration Statement") on an
                           appropriate form under the Securities Act with
                           respect to a proposed offer to the Holders of the
                           Bonds (the "Registered Exchange Offer") to issue
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                           and deliver to such Holders, in exchange for the
                           Bonds, a like aggregate principal amount of debt
                           securities of the Issuer guaranteed by the Subsidiary
                           Guarantor (the "Exchange Bonds") that are identical
                           in all material respects to the Bonds, except for the
                           transfer restrictions relating to the Bonds and the
                           rights relating to this Agreement, (ii) use their
                           reasonable best efforts to cause the Exchange Offer
                           Registration Statement to become effective under the
                           Securities Act no later than 270 days following the
                           date of original issuance of the Bonds (the "Issue
                           Date") and (iii) unless the Exchange Offer would not
                           be permitted by applicable law, or the applicable
                           interpretations of the Commission's staff, keep the
                           Exchange Offer Registration Statement effective for
                           not less than 30 days (or longer, if required by
                           applicable law) after the date on which notice of the
                           Registered Exchange Offer is mailed to the Holders
                           (such period being called the "Exchange Offer
                           Registration Period"). The Exchange Bonds will be
                           issued under the Indenture or an indenture (the
                           "Exchange Bonds Indenture") between the Registrants
                           and the Bond Trustee or such other bank or trust
                           company that is reasonably satisfactory to the
                           Initial Purchasers, as trustee (the "Exchange Bonds
                           Trustee").

                  Upon the effectiveness of the Exchange Offer Registration
Statement, the Registrants shall promptly commence the Registered Exchange
Offer, it being the objective of such Registered Exchange Offer to enable each
Holder electing to exchange Bonds for Exchange Bonds (assuming that such Holder
(a) is not an affiliate (as defined in Section 10(e) below) of any of the
Registrants or of an Exchanging Dealer (as defined herein) not complying with
the requirements of the next sentence, (b) is not an Initial Purchaser holding
Bonds that have, or that are reasonably likely to have, the status of an unsold
allotment in an initial distribution, (c) acquires the Exchange Bonds in the
ordinary course of such Holder's business and (d) has no arrangements or
understandings with any person to participate in the distribution of the
Exchange Bonds) and to trade such Exchange Bonds from and after their receipt
without any limitations or restrictions under the Securities Act and without
material restrictions under the securities laws of the several states of the
United States. The Registrants, the Initial Purchasers and each Exchanging
Dealer acknowledge that, pursuant to current interpretations by the Commission's
staff of Section 5 of the Securities Act, (i) each Holder that is a
broker-dealer electing to exchange Bonds, acquired for its own account as a
result of market-making activities or other trading activities, for Exchange
Bonds (an "Exchanging Dealer"), is required to deliver a prospectus containing
substantially the information set forth in Annex A hereto on the cover, in Annex
B hereto in the "Exchange Offer Procedures" section and the "Purpose of the
Exchange Offer" section and in Annex C hereto in the "Plan of Distribution"
section of such prospectus in connection with a sale of any such Exchange Bonds
received by such Exchanging Dealer pursuant to the Registered Exchange Offer and
(ii) if any Initial Purchaser elects to sell the Exchange Bonds acquired in
exchange for Bonds constituting any portion of an unsold allotment, it is
required to deliver a prospectus containing the information required by Items
507 and/or 508 of Regulation S-K under the Securities Act, as applicable, in
connection with such a sale.

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                  If, prior to the consummation of the Registered Exchange
Offer, any Holder holds any Bonds acquired by it that have, or that are
reasonably likely to be determined to have, the status of an unsold allotment in
an initial distribution, or any Holder is not entitled to participate in the
Registered Exchange Offer, the Issuer shall, upon the written request of any
such Holder, simultaneously with the delivery of the Exchange Bonds in the
Registered Exchange Offer, issue and deliver to any such Holder, in exchange for
the Bonds held by such Holder (the "Private Exchange"), a like aggregate
principal amount of debt securities of the Issuer guaranteed by the Subsidiary
Guarantor (the "Private Exchange Bonds") that are identical in all material
respects to the Exchange Bonds, except for the transfer restrictions relating to
such Private Exchange Bonds. The Private Exchange Bonds will be issued under the
same Indenture as the Exchange Bonds, and the Registrants shall use their
reasonable best efforts to cause the Private Exchange Bonds to bear the same
CUSIP number as the Exchange Bonds, upon resale of the Private Exchange Bonds
pursuant to a registration statement declared by the Commission.

                  In connection with the Registered Exchange Offer, the
Registrants shall:

                           (a) mail to each Holder a copy of the prospectus
         forming part of the Exchange Offer Registration Statement, together
         with an appropriate letter of transmittal and related documents;

                           (b) keep the Registered Exchange Offer open for not
         less than 30 days (or longer, if required by applicable law) after the
         date on which notice of the Registered Exchange Offer is mailed to the
         Holders;

                           (c) utilize the services of a depositary for the
         Registered Exchange Offer with an address in the Borough of Manhattan,
         The City of New York;

                           (d) permit Holders to withdraw tendered Bonds at any
         time prior to the close of business, New York City time, on the last
         business day on which the Registered Exchange Offer shall remain open;
         and

                           (e) otherwise comply in all respects with all laws
         that are applicable to the Registered Exchange Offer.

                  As soon as practicable after the close of the Registered
 Exchange Offer and any Private Exchange, as the case may be, the Registrants
 shall:

                           (a) accept for exchange all Bonds properly tendered
         and not validly withdrawn pursuant to the Registered Exchange Offer and
         the Private Exchange;

                           (b) deliver to the Bond Trustee for cancellation all
         Bonds so accepted for exchange; and

                           (c) cause the Bond Trustee or the Exchange Bonds
         Trustee, as the case may be, promptly to authenticate and deliver to
         each Holder who has properly tendered,

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         Exchange Bonds or Private Exchange Bonds, as the case may be, equal in
         principal amount to the Bonds of such Holder so accepted for exchange.

                  The Registrants shall use their reasonable best efforts to
keep the Exchange Offer Registration Statement effective and to amend and
supplement the prospectus contained therein in order to permit such prospectus
to be used by all persons subject to the prospectus delivery requirements of the
Securities Act for such period of time as such persons must comply with such
requirements in order to resell the Exchange Bonds; provided that (i) in the
case where such prospectus and any amendment or supplement thereto must be
delivered by an Exchanging Dealer, such period shall end on the earlier of 90
days from the date of the consummation of the Exchange Offer and the date on
which all Exchanging Dealers have sold all Exchange Bonds held by them and (ii)
the Registrants shall make such prospectus and any amendment or supplement
thereto available to any broker-dealer for use in connection with any resale of
any Exchange Bonds for a period of not less than 90 days after the consummation
of the Registered Exchange Offer.

                  The Indenture or the Exchange Bonds Indenture, as the case may
be, shall provide that the Bonds, the Exchange Bonds and the Private Exchange
Bonds shall vote and consent together on all matters as one class and that none
of the Bonds, the Exchange Bonds or the Private Exchange Bonds will have the
right to vote or consent as a separate class on any matter.

                  Interest on each Exchange Bond and Private Exchange Bond
issued pursuant to the Registered Exchange Offer and in the Private Exchange
will accrue from the last interest payment date on which interest was paid on
the Bonds surrendered in exchange therefor or, if no interest has been paid on
the Bonds, from the Issue Date.

                  Each Holder participating in the Registered Exchange Offer
 shall be required to represent to the Issuer that at the time of the
 consummation of the Registered Exchange Offer (i) any Exchange Bonds received
 by such Holder will be acquired in the ordinary course of business, (ii) such
 Holder will have no arrangements or understanding with any person to
 participate in the distribution of the Bonds or the Exchange Bonds within the
 meaning of the Securities Act and (iii) such Holder is not an affiliate of the
 Registrants or, if it is such an affiliate, such Holder will comply with the
 registration and prospectus delivery requirements of the Securities Act to the
 extent applicable.

                  Notwithstanding any other provisions hereof, the Registrants
 will ensure that (i) any Exchange Offer Registration Statement and any
 amendment thereto and any prospectus forming part thereof and any supplement
 thereto complies in all material respects with the Securities Act and the rules
 and regulations of the Commission thereunder, (ii) any Exchange Offer
 Registration Statement and any amendment thereto does not, when it becomes
 effective, contain an untrue statement of a material fact or omit to state a
 material fact required to be stated therein or necessary to make the statements
 therein not misleading and (iii) any prospectus forming part of any Exchange
 Offer Registration Statement, and any supplement to such prospectus, does not,
 as of the consummation of the Registered Exchange Offer, include an untrue
 statement of a material fact or omit to state a material fact necessary in
 order to make the

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statements therein, in the light of the circumstances under which they were
made, not misleading.

                  2.       Shelf Registration. If (i) because of any change in
                           law or applicable interpretations thereof by the
                           Commission's staff the Registrants are not permitted
                           to effect the Registered Exchange Offer as
                           contemplated by Section 1 hereof, or (ii) any Bonds
                           validly tendered pursuant to the Registered Exchange
                           Offer are not exchanged for Exchange Bonds within 315
                           days after the Issue Date (unless the Exchange Offer
                           is still in process), or (iii) any Initial Purchaser
                           so requests with respect to Bonds or Private Exchange
                           Bonds not eligible to be exchanged for Exchange Bonds
                           in the Registered Exchange Offer and held by it
                           following the consummation of the Registered Exchange
                           Offer, or (iv) any applicable law or interpretations
                           do not permit any Holder (other than an Initial
                           Purchaser) to participate in the Registered Exchange
                           Offer or (v) any Holder (other than an Initial
                           Purchaser) that participates in the Registered
                           Exchange Offer does not receive freely transferable
                           Exchange Bonds in exchange for tendered Bonds, or
                           (vi) the Issuer so elects, then the following
                           provisions shall apply:

                           (a)      The Registrants shall use their reasonable
                                    best efforts to file as promptly as
                                    practicable with the Commission, and
                                    thereafter shall use their reasonable best
                                    efforts to cause to be declared effective, a
                                    shelf registration statement on an
                                    appropriate form under the Securities Act
                                    relating to the offer and sale of the
                                    Transfer Restricted Bonds (as defined below)
                                    by the Holders thereof from time to time in
                                    accordance with the methods of distribution
                                    set forth in such registration statement
                                    (hereafter, a "Shelf Registration Statement"
                                    and, together with any Exchange Offer
                                    Registration Statement, a "Registration
                                    Statement").

                           (b)      The Registrants shall use their reasonable
                                    best efforts to keep the Shelf Registration
                                    Statement continuously effective in order to
                                    permit the prospectus forming part thereof
                                    to be used by Holders of Transfer Restricted
                                    Bonds for a period ending on the earlier of
                                    (i) two years from the Issue Date or such
                                    shorter period that will terminate when all
                                    the Transfer Restricted Bonds covered by the
                                    Shelf Registration Statement have been sold
                                    pursuant thereto and (ii) the date on which
                                    the Bonds become eligible for resale without
                                    volume restrictions pursuant to Rule 144
                                    under the Securities Act (in any such case,
                                    such period being called the "Shelf
                                    Registration Period"); provided that with
                                    respect to Exchange Bonds received by an
                                    Initial Purchaser in exchange for Bonds
                                    constituting any portion of an unsold
                                    allotment, the Issuer may, if permitted by
                                    current interpretations by the Commission's
                                    staff, file a post-

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                                    effective amendment to the Exchange Offer
                                    Registration Statement containing the
                                    information required by Regulation S-K Items
                                    507 and/or 508, as applicable, in
                                    satisfaction of its obligations under this
                                    Section 2 with respect thereto, and any such
                                    Exchange Offer Registration Statement, as so
                                    amended shall be referred to herein as, and
                                    governed by the provisions herein applicable
                                    to, a Shelf Registration Statement. The
                                    Registrants shall be deemed not to have used
                                    their reasonable best efforts to keep the
                                    Shelf Registration Statement effective
                                    during the requisite period if they
                                    voluntarily take any action that would
                                    result in Holders of Transfer Restricted
                                    Bonds covered thereby not being able to
                                    offer and sell such Transfer Restricted
                                    Bonds during that period, unless such action
                                    is (i) required by applicable law or (ii)
                                    such action is taken by the Issuer in good
                                    faith and for valid business reasons,
                                    including the acquisition or divestiture of
                                    assets.

                           (c)      Notwithstanding any other provisions hereof,
                                    the Registrants will ensure that (i) any
                                    Shelf Registration Statement and any
                                    amendment thereto and any prospectus forming
                                    part thereof and any supplement thereto
                                    complies in all material respects with the
                                    Securities Act and the rules and regulations
                                    of the Commission thereunder, (ii) any Shelf
                                    Registration Statement and any amendment
                                    thereto (in either case, other than with
                                    respect to information included therein in
                                    reliance upon or in conformity with written
                                    information furnished to the Registrants by
                                    or on behalf of any Holder specifically for
                                    use therein (the "Holders' Information"))
                                    does not, when it becomes effective, contain
                                    an untrue statement of a material fact or
                                    omit to state a material fact required to be
                                    stated therein or necessary to make the
                                    statements therein not misleading and (iii)
                                    any prospectus forming part of any Shelf
                                    Registration Statement, and any supplement
                                    to such prospectus (in either case, other
                                    than with respect to Holders' Information),
                                    does not include an untrue statement of a
                                    material fact or omit to state a material
                                    fact necessary in order to make the
                                    statements therein, in the light of the
                                    circumstances under which they were made,
                                    not misleading.

                  3.       Liquidated Damages. (a) The parties hereto agree that
                           the Holders of Transfer Restricted Bonds will suffer
                           damages if the Registrants fail to fulfill their
                           obligations under Section 1 or Section 2, as
                           applicable, and that it would not be feasible to
                           ascertain the extent of such damages. Accordingly, if
                           (i) the Registered Exchange Offer is not consummated
                           on or prior to 315 days (or if the 315th day is not a
                           business day, the next business day following the
                           315th day) after the Issue Date or (ii) the Exchange
                           Offer Registration Statement or the Shelf
                           Registration

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                           Statement, as the case may be, is not declared
                           effective within 270 days (or, if the 270th day is
                           not a business day, the next business day following
                           the 270th day) after the Issue Date (or in the case
                           of a Shelf Registration Statement required to be
                           filed in response to a change in law or the
                           applicable interpretations of the Commission's staff,
                           if later, within 45 days (or if the 45th day is not a
                           business day, the next business day following the
                           45th day) after publication of the change in law or
                           interpretation), (iii) the Shelf Registration
                           Statement is filed and declared effective within 270
                           days after the Issue Date (or in the case of a Shelf
                           Registration Statement required to be filed in
                           response to a change in law or the applicable
                           interpretations of Commission's staff, if later,
                           within 45 days after publication of the change in law
                           or interpretation) but shall thereafter cease to be
                           effective or usable (at any time that the Registrants
                           are obligated to maintain the effectiveness thereof)
                           without being succeeded within 45 days by an
                           additional Registration Statement filed and declared
                           effective (each such event referred to in clauses (i)
                           through (iii), a "Registration Default"), the
                           Registrants will be obligated to pay liquidated
                           damages to each Holder of Transfer Restricted Bonds,
                           during the period of one or more such Registration
                           Defaults, in the form of additional interest (in
                           addition to the interest otherwise payable with
                           respect to the Transfer Restricted Bonds) at a rate
                           of one half of one percent (0.50%) per annum, which
                           additional interest shall be payable by the
                           Registrants to each Holder of Transfer Restricted
                           Bonds at the time, in the manner and subject to the
                           same terms and conditions set forth in the Indenture
                           and the Bonds, until (i) the Exchange Offer
                           Registration Statement is declared effective and/or
                           the Registered Exchange Offer is consummated, (ii)
                           the Shelf Registration Statement is declared
                           effective or (iii) the Shelf Registration Statement
                           again becomes effective, as the case may be.
                           Following the cure of all Registration Defaults, the
                           accrual of liquidated damages will cease. As used
                           herein, the term "Transfer Restricted Bonds" means
                           (i) each Bond until the date on which such Bond has
                           been exchanged for a freely transferable Exchange
                           Bond in the Registered Exchange Offer, (ii) each Bond
                           or Private Exchange Bond until the date on which it
                           has been effectively registered under the Securities
                           Act and disposed of in accordance with the Shelf
                           Registration Statement or (iii) each Bond or Private
                           Exchange Bond until the date on which it is
                           distributed to the public pursuant to Rule 144 under
                           the Securities Act or is saleable pursuant to Rule
                           144(k) under the Securities Act. Notwithstanding
                           anything to the contrary in this Section 3(a), the
                           Registrants shall not be required to pay liquidated
                           damages to a Holder of Transfer Restricted Bonds if
                           such Holder failed to comply with its obligations to
                           make the representations set forth in the second to
                           last paragraph of Section 1, failed to provide the
                           information required to be provided by it, if any,
                           pursuant to Section 4(n) or failed to properly tender
                           Bonds for Exchange Bonds in the Exchange Offer.

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                  (b)      The Registrants shall notify the Bond Trustee and the
                           Paying Agent under the Indenture immediately upon the
                           happening of each and every Registration Default. The
                           Registrants shall pay the liquidated damages due on
                           the Transfer Restricted Bonds by depositing with the
                           Paying Agent (which may not be the Issuer for these
                           purposes), in trust, for the benefit of the Holders
                           thereof, prior to 10:00 a.m., New York City time, on
                           the next interest payment date specified by the
                           Indenture and the Bonds, sums sufficient to pay the
                           liquidated damages then due. The liquidated damages
                           due shall be payable on each interest payment date
                           specified by the Indenture and the Bonds to the
                           record holder entitled to receive the interest
                           payment to be made on such date. Each obligation to
                           pay liquidated damages shall be deemed to accrue from
                           and including the date of the applicable Registration
                           Default.

                  (c)      The parties hereto agree that the liquidated damages
                           provided for in this Section 3 constitute a
                           reasonable estimate of and are intended to constitute
                           the sole damages that will be suffered by Holders of
                           Transfer Restricted Bonds by reason of the failure of
                           (i) the Shelf Registration Statement to become or
                           remain effective or (ii) the Exchange Offer
                           Registration Statement to be declared effective
                           and/or the Registered Exchange Offer to be
                           consummated, in each case to the extent required by
                           this Agreement.

         4.       Registration Procedures. In connection with any Registration
                  Statement, the following provisions shall apply:

                  (a)      The Registrants shall (i) furnish to each Initial
                           Purchaser, prior to the filing thereof with the
                           Commission, a copy of the Registration Statement and
                           each amendment thereof and each supplement, if any,
                           to the prospectus included therein and shall use
                           their reasonable best efforts to reflect in each such
                           document, when so filed with the Commission, such
                           comments as any Initial Purchaser may reasonably
                           propose; (ii) include information substantially
                           similar to that set forth in Annex A hereto on the
                           cover, in Annex B hereto in the "Exchange Offer
                           Procedures" section and the "Purpose of the Exchange
                           Offer" section and in Annex C hereto in the "Plan of
                           Distribution" section of the prospectus forming a
                           part of the Exchange Offer Registration Statement,
                           and include information substantially similar to that
                           set forth in Annex D hereto in the Letter of
                           Transmittal delivered pursuant to the Registered
                           Exchange Offer; and (iii) if requested by any Initial

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                           Purchaser, include the information required by Items
                           507 or 508 of Regulation S-K, as applicable, in the
                           prospectus forming a part of the Exchange Offer
                           Registration Statement.

                  (b)      The Registrants shall advise each Initial Purchaser,
                           each Exchanging Dealer which has identified itself to
                           the Issuer and provided the Issuer a facsimile number
                           or address for notices and the Holders (if applicable
                           in the case of a Shelf Registration Statement) and,
                           if requested by any such person, confirm such advice
                           in writing (which, if after the effectiveness of the
                           Registration Statement, advice pursuant to clauses
                           (ii)(v) hereof shall be accompanied by an instruction
                           to suspend the use of the prospectus until the
                           requisite changes have been made):

                           (i)      when any Registration Statement and any
                                    amendment thereto has been filed with the
                                    Commission and when such Registration
                                    Statement or any post-effective amendment
                                    thereto has become effective;

                           (ii)     of any request by the Commission for
                                    amendments or supplements to any
                                    Registration Statement or the prospectus
                                    included therein or for additional
                                    information;

                           (iii)    of the issuance by the Commission of any
                                    stop order suspending the effectiveness of
                                    any Registration Statement or the initiation
                                    of any proceedings for that purpose;

                           (iv)     of the receipt by the any of the Registrants
                                    of any notification with respect to the
                                    suspension of the qualification of the
                                    Bonds, the Exchange Bonds or the Private
                                    Exchange Bonds which are registered pursuant
                                    to such Registration Statement for sale in
                                    any jurisdiction or the initiation or
                                    threatening of any proceeding for such
                                    purpose; and

                           (v)      of the happening of any event that requires
                                    the making of any changes in any
                                    Registration Statement or the prospectus
                                    included therein in order that the
                                    statements therein, in the case of the
                                    prospectus, in light of the circumstances
                                    under which they were made, are not
                                    misleading and do not omit to state a
                                    material fact required to be stated therein
                                    or necessary to make the statements therein,
                                    in the case of the prospectus, in light of
                                    the circumstances under which they were
                                    made, not misleading.

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                  (c)      Subject to the last sentence of Section 2(b), the
                           Registrants will use its reasonable best efforts to
                           obtain the withdrawal at the earliest possible time
                           of any order suspending the effectiveness of any
                           Registration Statement.

                  (d)      The Registrants will furnish to each Holder of
                           Transfer Restricted Bonds included within the
                           coverage of any Shelf Registration Statement, without
                           charge, at least one conformed copy of such Shelf
                           Registration Statement and any posteffective
                           amendment thereto, including financial statements and
                           schedules and, if any such Holder so requests in
                           writing, all exhibits thereto (including those, if
                           any, incorporated by reference).

                  (e)      The Registrants will, during the Shelf Registration
                           Period, promptly deliver to each Holder of Transfer
                           Restricted Bonds included within the coverage of any
                           Shelf Registration Statement, without charge, as many
                           copies of the prospectus (including each preliminary
                           prospectus) included in such Shelf Registration
                           Statement and any amendment or supplement thereto as
                           such Holder may reasonably request; and the
                           Registrants consent to the use (in accordance with
                           applicable law) of such prospectus or any amendment
                           or supplement thereto by each of the selling Holders
                           of Transfer Restricted Bonds in connection with the
                           offer and sale of the Transfer Restricted Bonds
                           covered by such prospectus or any amendment or
                           supplement thereto.

                  (f)      The Registrants will furnish to each Initial
                           Purchaser and each Exchanging Dealer, without charge,
                           at least one conformed copy of the Exchange Offer
                           Registration Statement and any posteffective
                           amendment thereto, including financial statements and
                           schedules and, if any Initial Purchaser or Exchanging
                           Dealer so requests in writing, all exhibits thereto
                           (including those, if any, incorporated by reference).

                  (g)      The Registrants will, during the Exchange Offer
                           Registration Period or the Shelf Registration Period,
                           as applicable, promptly deliver to each Initial
                           Purchaser, each Exchanging Dealer and such other
                           persons that are required by law to deliver a
                           prospectus following the Registered Exchange Offer,
                           or during the Shelf Registration Period, as
                           applicable, without charge, as many copies of the
                           final prospectus included in the Exchange Offer
                           Registration Statement or the Shelf Registration
                           Statement and any amendment or supplement thereto as
                           such Initial Purchaser, Exchanging Dealer or other
                           persons may reasonably request; and the Registrants

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                           consent to the use (in accordance with applicable
                           law) of such prospectus or any amendment or
                           supplement thereto by any such Initial Purchaser,
                           Exchanging Dealer or other persons, as applicable, as
                           aforesaid.

                  (h)      Prior to the effective date of any Registration
                           Statement, the Registrants will use their reasonable
                           best efforts to cooperate with the Holders of Bonds,
                           Exchange Bonds or Private Exchange Bonds included
                           therein and their respective counsel in connection
                           with the registration or qualification of, such
                           Bonds, Exchange Bonds or Private Exchange Bonds for
                           offer and sale under the securities or blue sky laws
                           of such jurisdictions as any such Holder reasonably
                           requests in writing and do any and all other acts or
                           things necessary to enable the offer and sale in such
                           jurisdictions of the Bonds, Exchange Bonds or Private
                           Exchange Bonds covered by such Registration
                           Statement; provided that the Registrants will not be
                           required to qualify generally to do business in any
                           jurisdiction where it is not then so qualified or to
                           take any action which would subject it to general
                           service of process or to taxation in any such
                           jurisdiction where it is not then so subject.

                  (i)      Unless the applicable securities shall be in
                           book-entry only form, the Registrants will cooperate
                           with the Holders of Bonds, Exchange Bonds or Private
                           Exchange Bonds to facilitate the timely preparation
                           and delivery of certificates representing Bonds,
                           Exchange Bonds or Private Exchange Bonds issued or
                           sold pursuant to any Registration Statement free of
                           any restrictive legends and in such denominations and
                           registered in such names as the Holders thereof may
                           request in writing prior to sales of Bonds, Exchange
                           Bonds or Private Exchange Bonds pursuant to such
                           Registration Statement.

                  (j)      Subject to the last sentence of Section 2(b), after
                           effectiveness of a Registration Statement, if any
                           event contemplated by Section 4(b)(ii) through (v)
                           occurs during the period for which the Registrants
                           are required to maintain the effectiveness of such
                           Registration Statement, the Registrants will promptly
                           prepare and file with the Commission a posteffective
                           amendment to the Registration Statement or a
                           supplement to the related prospectus or file any
                           other required document so that, as thereafter
                           delivered to purchasers of the Bonds, Exchange Bonds
                           or Private Exchange Bonds from a Holder, the
                           prospectus will not include an untrue statement of a
                           material fact or omit to state a material fact
                           necessary in order to make the statements therein, in
                           the light of the circumstances under which they were
                           made, not misleading.

                                       11
<PAGE>   12
                  (k)      Not later than the effective date of the applicable
                           Registration Statement, the Registrants will provide
                           a CUSIP number for the Bonds, the Exchange Bonds and
                           the Private Exchange Bonds, as the case may be, and
                           provide the applicable trustee with printed
                           certificates for the Bonds, the Exchange Bonds or the
                           Private Exchange Bonds, as the case may be, in a form
                           eligible for deposit with The Depository Trust
                           Issuer.

                  (l)      The Issuer will comply with all applicable rules and
                           regulations of the Commission and will make generally
                           available to its security holders as soon as
                           practicable after the effective date of the
                           applicable Registration Statement an earning
                           statement satisfying the provisions of Section 11(a)
                           of the Securities Act.

                  (m)      The Registrants will cause the Indenture or the
                           Exchange Bonds Indenture, as applicable, to be
                           qualified under the Trust Indenture Act as required
                           by applicable law in a timely manner.

                  (n)      The Issuer may require each Holder of Transfer
                           Restricted Bonds to be registered pursuant to any
                           Shelf Registration Statement to furnish to the Issuer
                           such information (including supplements thereto)
                           concerning the Holder and the distribution of such
                           Transfer Restricted Bonds as the Registrants may from
                           time to time reasonably require for inclusion in such
                           Shelf Registration Statement, and the Issuer may
                           exclude from such registration the Transfer
                           Restricted Bonds of any Holder that fails to furnish
                           such information (including supplements thereto)
                           within a reasonable time after receiving such
                           request.

                  (o)      In the case of a Shelf Registration Statement, each
                           Holder of Transfer Restricted Bonds to be registered
                           pursuant thereto agrees that, upon receipt of any
                           notice from the Registrants pursuant to Section
                           4(b)(ii) through (v), such Holder will discontinue
                           disposition of such Transfer Restricted Bonds until
                           such Holder's receipt of copies of the supplemental
                           or amended prospectus contemplated by Section 4(j) or
                           until advised in writing (the "Advice") by the Issuer
                           that the use of the applicable prospectus may be
                           resumed. If the Registrants shall give any notice
                           under Section 4(b)(ii) through (v) during the period
                           that the Registrants are required to maintain an
                           effective Registration Statement (the "Effectiveness
                           Period"), such Effectiveness Period shall be extended
                           by the number of days during such period from and
                           including the date of the giving of such notice to
                           and including the date when each seller of Transfer
                           Restricted Bonds covered by

                                       12
<PAGE>   13
                           such Registration Statement shall have received (x)
                           the copies of the supplemental or amended prospectus
                           contemplated by Section 4(j) (if an amended or
                           supplemental prospectus is required) or (y) the
                           Advice (if no amended or supplemental prospectus is
                           required).

                  (p)      In the case of a Shelf Registration Statement, the
                           Registrants shall enter into such customary
                           agreements (including, if requested, an underwriting
                           agreement in customary form) and take all such other
                           action, if any, as Holders of a majority in aggregate
                           principal amount of the Bonds, Exchange Bonds and
                           Private Exchange Bonds being sold or the managing
                           underwriters (if any) shall reasonably request in
                           order to facilitate any disposition of Bonds,
                           Exchange Bonds or Private Exchange Bonds pursuant to
                           such Shelf Registration Statement.

                  (q)      In the case of a Shelf Registration Statement, the
                           Registrants shall (i) make reasonably available for
                           inspection by a representative of, and Special
                           Counsel (as defined below) acting for, Holders of a
                           majority in aggregate principal amount of the Bonds,
                           Exchange Bonds and Private Exchange Bonds being sold
                           pursuant to such Shelf Registration Statement and any
                           underwriter participating in any disposition of
                           Bonds, Exchange Bonds or Private Exchange Bonds
                           pursuant to such Shelf Registration Statement, all
                           relevant financial and other records, pertinent
                           corporate documents and properties of the Registrants
                           and their subsidiaries and (ii) use their reasonable
                           best efforts to have their officers, directors,
                           employees, accountants and counsel supply all
                           relevant information reasonably requested by such
                           representative, Special Counsel or any such
                           underwriter (an "Inspector") in connection with such
                           Shelf Registration Statement; provided, however, that
                           any information that is designated in writing by the
                           Issuer, in good faith, as confidential at the time of
                           delivery of such information shall be kept
                           confidential by the Holders or any such Inspector.

                  (r)      In the case of a Shelf Registration Statement, the
                           Registrants shall, if requested by Holders of a
                           majority in aggregate principal amount of the Bonds,
                           Exchange Bonds and Private Exchange Bonds being sold
                           pursuant to such Shelf Registration Statement, their
                           Special Counsel or the managing underwriters (if any)
                           in connection with such Shelf Registration Statement,
                           use their reasonable best efforts to cause (i) their
                           counsel to deliver an opinion relating to the Shelf
                           Registration Statement and the Bonds, Exchange Bonds
                           or Private Exchange Bonds being registered, as
                           applicable, in customary form, (ii) their officers to
                           execute and deliver all customary documents and
                           certificates reasonably

                                       13
<PAGE>   14
                                 requested by Holders of a majority in aggregate
                                 principal amount of the Bonds, Exchange Bonds
                                 and Private Exchange Bonds being sold pursuant
                                 to such Shelf Registration Statement, their
                                 Special Counsel or the managing underwriters
                                 (if any) and (iii) their independent public
                                 accountants to provide a comfort letter or
                                 letters in customary form, subject to receipt
                                 of appropriate documentation as contemplated,
                                 and only if permitted, by Statement of Auditing
                                 Standards No. 72.

                  5.       Registration Expenses. The Registrants will bear all
                           expenses incurred in connection with the performance
                           of their obligations under Sections 1, 2, 3 and 4 and
                           the Registrants will reimburse the Initial Purchasers
                           and the Holders for the reasonable fees and
                           disbursements of one firm of attorneys chosen by the
                           Holders of a majority in aggregate principal amount
                           of the Bonds, the Exchange Bonds and the Private
                           Exchange Bonds to be sold pursuant to a Shelf
                           Registration Statement (the "Special Counsel") acting
                           for the Initial Purchasers or Holders in connection
                           therewith.

                  6.       Indemnification. (a) In the event of a Shelf
                           Registration Statement or in connection with any
                           prospectus delivery pursuant to an Exchange Offer
                           Registration Statement by an Initial Purchaser or
                           Exchanging Dealer, as applicable, the Registrants
                           shall indemnify and hold harmless each Holder
                           (including, without limitation, any such Initial
                           Purchaser or Exchanging Dealer), its affiliates,
                           their respective officers, directors, employees,
                           representatives and agents, and each person, if any,
                           who controls such Holder within the meaning of the
                           Securities Act or the Exchange Act (collectively
                           referred to for purposes of this Section 6 and
                           Section 7 as a Holder) from and against any loss,
                           claim, damage or liability, joint or several, or any
                           action in respect thereof (including, without
                           limitation, any loss, claim, damage, liability or
                           action relating to purchases and sales of Bonds,
                           Exchange Bonds or Private Exchange Bonds), to which
                           that Holder may become subject, whether commenced or
                           threatened, under the Securities Act, the Exchange
                           Act, any other federal or state statutory law or
                           regulation, at common law or otherwise, insofar as
                           such loss, claim, damage, liability or action arises
                           out of, or is based upon, (i) any untrue statement or
                           alleged untrue statement of a material fact contained
                           in any such Registration Statement or any prospectus
                           forming part thereof or in any amendment or
                           supplement thereto or (ii) the omission or alleged
                           omission to state therein a material fact required to
                           be stated therein or necessary in order to make the
                           statements therein, in the light of the circumstances
                           under which they were made, not misleading, and shall
                           reimburse each Holder promptly upon demand for any
                           legal or other expenses reasonably incurred by that
                           Holder in connection with investigating or defending
                           or preparing to defend against or appearing as a
                           third party witness in connection with any such loss,
                           claim, damage,

                                       14
<PAGE>   15
                           liability or action as such expenses are incurred;
                           provided, however, that the Registrants shall not be
                           liable in any such case to the extent that any such
                           loss, claim, damage, liability or action arises out
                           of, or is based upon, an untrue statement or alleged
                           untrue statement in or omission or alleged omission
                           from any of such documents in reliance upon and in
                           conformity with any Holders' Information; and
                           provided, further, that with respect to any such
                           untrue statement in or omission from any related
                           prospectus, the indemnity agreement contained in this
                           Section 6(a) shall not inure to the benefit of any
                           Holder from whom the person asserting any such loss,
                           claim, damage, liability or action received Bonds,
                           Exchange Bonds or Private Exchange Bonds to the
                           extent that such loss, claim, damage, liability or
                           action of or with respect to such Holder results from
                           the fact that both (A) a copy of the final prospectus
                           or any amendment or supplement thereto was not sent
                           or given to such person at or prior to the written
                           confirmation of the sale of such Bonds, Exchange
                           Bonds or Private Exchange Bonds to such person and
                           (B) the untrue statement in or omission from the
                           related prospectus was corrected in such final
                           prospectus as so amended or supplemented unless, in
                           either case, such failure to deliver such final
                           prospectus as so amended of supplemented was a result
                           of non-compliance by the Registrants with Section
                           4(e) or 4(g).

                           (b)      In the event of a Shelf Registration
                                    Statement or in connection with any
                                    prospectus delivered pursuant to an Exchange
                                    Offer Registration Statement by an Initial
                                    Purchaser of an Exchanging Dealer, each
                                    Holder or such Initial Purchaser or
                                    Exchanging Dealer shall indemnify and hold
                                    harmless the Registrants, their affiliates,
                                    their respective officers, directors,
                                    employees, representatives and agents, and
                                    each person, if any, who controls the
                                    Registrants within the meaning of the
                                    Securities Act or the Exchange Act
                                    (collectively referred to for purposes of
                                    this Section 6(b) and Section 7 as the
                                    Issuer), from and against any loss, claim,
                                    damage or liability, joint or several, or
                                    any action in respect thereof, to which the
                                    Registrants may become subject, whether
                                    commenced or threatened, under the
                                    Securities Act, the Exchange Act, any other
                                    federal or state statutory law or
                                    regulation, at common law or otherwise,
                                    insofar as such loss, claim, damage,
                                    liability or action arises out of, or is
                                    based upon, (i) any untrue statement or
                                    alleged untrue statement of a material fact
                                    contained in any such Registration Statement
                                    or any prospectus forming part thereof or in
                                    any amendment or supplement thereto or (ii)
                                    the omission or alleged omission to state
                                    therein a material fact required to be
                                    stated therein or necessary in order to make
                                    the statements therein, in the light of the
                                    circumstances under which they were made,
                                    not misleading, but in each case only to the
                                    extent

                                       15
<PAGE>   16
                                    that the untrue statement or alleged untrue
                                    statement or omission or alleged omission
                                    was made in reliance upon and in conformity
                                    with, in the case of any Holder, any
                                    Holders' Information furnished to the
                                    Registrants by such Holder and, in the case
                                    of an Initial Purchaser or Exchanging
                                    Dealer, any information furnished to the
                                    Registrants by any Initial Purchaser or
                                    Exchanging Dealer for use in the Exchange
                                    Offer Registration Statement, and shall
                                    reimburse the Registrants for any legal or
                                    other expenses reasonably incurred by the
                                    Registrants in connection with investigating
                                    or defending or preparing to defend against
                                    or appearing as a third party witness in
                                    connection with any such loss, claim,
                                    damage, liability or action as such expenses
                                    are incurred; provided, however, that no
                                    such Holder shall be liable for any
                                    indemnity claims hereunder in excess of the
                                    amount of net proceeds received by such
                                    Holder from the sale of Bonds, Exchange
                                    Bonds or Private Exchange Bonds pursuant to
                                    such Shelf Registration Statement.

                           (c)      Promptly after receipt by an indemnified
                                    party under this Section 6 of notice of any
                                    claim or the commencement of any action, the
                                    indemnified party shall, if a claim in
                                    respect thereof is to be made against the
                                    indemnifying party pursuant to Section 6(a)
                                    or 6(b), notify the indemnifying party in
                                    writing of the claim or the commencement of
                                    that action; provided, however, that the
                                    failure to notify the indemnifying party
                                    shall not relieve it from any liability
                                    which it may have under this Section 6
                                    except to the extent that it has been
                                    materially prejudiced (through the
                                    forfeiture of substantive rights or
                                    defenses) by such failure; and provided,
                                    further, that the failure to notify the
                                    indemnifying party shall not relieve it from
                                    any liability which it may have to an
                                    indemnified party otherwise than under this
                                    Section 6. If any such claim or action shall
                                    be brought against an indemnified party, and
                                    it shall notify the indemnifying party
                                    thereof, the indemnifying party shall be
                                    entitled to participate therein and, to the
                                    extent that it wishes, jointly with any
                                    other similarly notified indemnifying party,
                                    to assume the defense thereof with counsel
                                    reasonably satisfactory to the indemnified
                                    party. After notice from the indemnifying
                                    party to the indemnified party of its
                                    election to assume the defense of such claim
                                    or action, the indemnifying party shall not
                                    be liable to the indemnified party under
                                    this Section 6 for any legal or other
                                    expenses subsequently incurred by the
                                    indemnified party in connection with the
                                    defense thereof other than the reasonable
                                    costs of investigation; provided, however,
                                    that an indemnified party shall have the
                                    right to employ its own counsel in any such
                                    action, but the fees, expenses and other
                                    charges of such counsel for the indemnified
                                    party will be at the expense of such
                                    indemnified party

                                       16
<PAGE>   17
                                    unless (1) the employment of counsel by the
                                    indemnified party has been authorized in
                                    writing by the indemnifying party, (2) the
                                    indemnified party has reasonably concluded
                                    (based upon advice of counsel to the
                                    indemnified party) that there may be legal
                                    defenses available to it or other
                                    indemnified parties that are different from
                                    or in addition to those available to the
                                    indemnifying party, (3) a conflict or
                                    potential conflict exists (based upon advice
                                    of counsel to the indemnified party) between
                                    the indemnified party and the indemnifying
                                    party (in which case the indemnifying party
                                    will not have the right to direct the
                                    defense of such action on behalf of the
                                    indemnified party) or (4) the indemnifying
                                    party has not in fact employed counsel
                                    reasonably satisfactory to the indemnified
                                    party to assume the defense of such action
                                    within a reasonable time after receiving
                                    notice of the commencement of the action, in
                                    each of which cases the reasonable fees,
                                    disbursements and other charges of counsel
                                    will be at the expense of the indemnifying
                                    party or parties. It is understood that the
                                    indemnifying party or parties shall not, in
                                    connection with any proceeding or related
                                    proceedings in the same jurisdiction, be
                                    liable for the reasonable fees,
                                    disbursements and other charges of more than
                                    one separate firm of attorneys (in addition
                                    to any local counsel) at any one time for
                                    all such indemnified party or parties. Each
                                    indemnified party, as a condition of the
                                    indemnity agreements contained in Sections
                                    6(a) and 6(b), shall use all reasonable
                                    efforts to cooperate with the indemnifying
                                    party in the defense of any such action or
                                    claim. No indemnifying party shall be liable
                                    for any settlement of any such action
                                    effected without its written consent, but if
                                    settled with its written consent or if there
                                    be a final judgment for the plaintiff in any
                                    such action, the indemnifying party agrees
                                    to indemnify and hold harmless any
                                    indemnified party from and against any loss
                                    or liability by reason of such settlement or
                                    judgment. No indemnifying party shall,
                                    without the prior written consent of the
                                    indemnified party (which consent shall not
                                    be unreasonably withheld), effect any
                                    settlement of any pending or threatened
                                    proceeding in respect of which any
                                    indemnified party is or could have been a
                                    party and indemnity could have been sought
                                    hereunder by such indemnified party, unless
                                    such settlement includes an unconditional
                                    release of such indemnified party from all
                                    liability on claims that are the subject
                                    matter of such proceeding.

                  7.       Contribution. If the indemnification provided for in
                           Section 6 is unavailable or insufficient to hold
                           harmless an indemnified party under Section 6(a) or
                           6(b), then each indemnifying party shall, in lieu of
                           indemnifying such indemnified party, contribute to
                           the amount paid or payable by such indemnified party
                           as a result of such loss, claim, damage

                                       17
<PAGE>   18
                           or liability, or action in respect thereof, (i) in
                           such proportion as shall be appropriate to reflect
                           the relative benefits received by the Registrants
                           from the offering and sale of the Bonds, on the one
                           hand, and a Holder, Initial Purchaser or Exchange
                           Dealer with respect to the sale by such Holder,
                           Initial Purchaser or Exchange Dealer of Bonds,
                           Exchange Bonds or Private Exchange Bonds, on the
                           other, or (ii) if the allocation provided by clause
                           (i) above is not permitted by applicable law, in such
                           proportion as is appropriate to reflect not only the
                           relative benefits referred to in clause (i) above but
                           also the relative fault of the Registrants on the one
                           hand and such Holder, Initial Purchaser or Exchange
                           Dealer on the other with respect to the statements or
                           omissions that resulted in such loss, claim, damage
                           or liability, or action in respect thereof, as well
                           as any other relevant equitable considerations. The
                           relative benefits received by the Registrants on the
                           one hand and a Holder on the other with respect to
                           such offering and such sale shall be deemed to be in
                           the same proportion as the total net proceeds from
                           the offering of the Bonds (before deducting expenses)
                           received by or on behalf of the Registrants, on the
                           one hand, bear to the total proceeds received by such
                           Holder, Initial Purchaser or Exchange Dealer with
                           respect to its sale of Bonds, Exchange Bonds or
                           Private Exchange Bonds on the other. The relative
                           fault shall be determined by reference to, among
                           other things, whether the untrue or alleged untrue
                           statement of a material fact or the omission or
                           alleged omission to state a material fact relates to
                           the Registrants or information supplied by the
                           Registrants on the one hand or to any Holders'
                           Information supplied by such Holder or information
                           furnished by such Initial Purchaser or Exchange
                           Dealer, on the other, the intent of the parties and
                           their relative knowledge, access to information and
                           opportunity to correct or prevent such untrue
                           statement or omission. The parties hereto agree that
                           it would not be just and equitable if contributions
                           pursuant to this Section 7 were to be determined by
                           pro rata allocation or by any other method of
                           allocation that does not take into account the
                           equitable considerations referred to herein. The
                           amount paid or payable by an indemnified party as a
                           result of the loss, claim, damage or liability, or
                           action in respect thereof, referred to above in this
                           Section 7 shall be deemed to include, for purposes of
                           this Section 7, subject to the limitations set forth
                           above, any legal or other expenses reasonably
                           incurred by such indemnified party in connection with
                           investigating or defending or preparing to defend or
                           appearing as a third party witness in connection with
                           any such action or claim. Notwithstanding the
                           provisions of this Section 7, an indemnifying party
                           that is a Holder of Bonds, Exchange Bonds or Private
                           Exchange Bonds shall not be required to contribute
                           any amount in excess of the amount by which the total
                           price at which the Bonds, Exchange Bonds or Private
                           Exchange Bonds sold by such indemnifying party to any
                           purchaser exceeds the amount of any damages which
                           such indemnifying party has otherwise paid or become

                                       18
<PAGE>   19
                           liable to pay by reason of any untrue or alleged
                           untrue statement or omission or alleged omission. No
                           person guilty of fraudulent misrepresentation (within
                           the meaning of Section 11(f) of the Securities Act)
                           shall be entitled to contribution from any person who
                           was not guilty of such fraudulent misrepresentation.

                  8.       Rules 144 and 144A. The Registrants shall use their
                           reasonable best efforts to file the reports required
                           to be filed by it under the Securities Act and the
                           Exchange Act in a timely manner and, if at any time
                           the Registrants are not required to file such
                           reports, they will, upon the written request of any
                           Holder of Transfer Restricted Bonds, make available
                           to such Holder information that is necessary to
                           permit sales of such Holder's securities pursuant to
                           Rules 144 and 144A. The Registrants covenant that
                           they will use their reasonable best efforts to take
                           such further action as any Holder of Transfer
                           Restricted Bonds may reasonably request, all to the
                           extent required from time to time to enable such
                           Holder to sell Transfer Restricted Bonds without
                           registration under the Securities Act within the
                           limitation of the exemptions provided by Rules 144
                           and 144A (including, without limitation, the
                           requirements of Rule 144A(d)(4)). Upon the written
                           request of any Holder of Transfer Restricted Bonds,
                           the Registrants shall deliver to such Holder a
                           written statement as to whether it has complied with
                           such requirements. Notwithstanding the foregoing,
                           nothing in this Section 8 shall be deemed to require
                           the Registrants to register any of their securities
                           pursuant to the Exchange Act.

                  9.       Underwritten Registrations. If any of the Transfer
                           Restricted Bonds covered by any Shelf Registration
                           Statement are to be sold in an underwritten offering,
                           the investment banker or investment bankers and
                           manager or managers that will administer the offering
                           will be selected by the Holders of a majority in
                           aggregate principal amount of such Transfer
                           Restricted Bonds included in such offering, subject
                           to the consent of the Registrants, and such Holders
                           shall be responsible for all underwriting commissions
                           and discounts in connection therewith.

                  No person may participate in any underwritten registration
hereunder unless such person (i) agrees to sell such person's Transfer
Restricted Bonds on the basis reasonably provided in any underwriting
arrangements approved by the persons entitled hereunder to approve such
arrangements and (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements.

                  10.      Miscellaneous. (a) Amendments and Waivers. The
                           provisions of this Agreement may not be amended,
                           modified or supplemented, and waivers or consents to
                           departures from the provisions hereof may not be
                           given, unless the Registrants have obtained the
                           written consent of Holders of a

                                       19
<PAGE>   20
                           majority in aggregate principal amount of the Bonds,
                           the Exchange Bonds and the Private Exchange Bonds,
                           taken as a single class. Notwithstanding the
                           foregoing, a waiver or consent to depart from the
                           provisions hereof with respect to a matter that
                           relates exclusively to the rights of Holders whose
                           Bonds, Exchange Bonds or Private Exchange Bonds are
                           being sold pursuant to a Registration Statement or to
                           Holders of Transfer Restricted Bonds and that does
                           not directly or indirectly affect the rights of other
                           Holders may be given by Holders of a majority in
                           aggregate principal amount of the Bonds, the Exchange
                           Bonds and the Private Exchange Bonds being sold by
                           such Holders pursuant to such Registration Statement
                           or Holders of Transfer Restricted Bonds, as the case
                           may be.

                           (b)      Notices. All notices and other
                                    communications provided for or permitted
                                    hereunder shall be made in writing by hand
                                    delivery, first class mail, telecopier or
                                    air courier guaranteeing next-day delivery:

                                    (1)      if to a Holder, at the most current
                                             address given by such Holder to the
                                             Registrants in accordance with the
                                             provisions of this Section 10(b),
                                             which address initially is, with
                                             respect to each Holder, the address
                                             of such Holder maintained by the
                                             Registrar under the Indenture, with
                                             a copy in like manner to Chase
                                             Securities Inc. and Lehman Brothers
                                             Inc.;

                                    (2)      if to an Initial Purchaser,
                                             initially at its address set forth
                                             in the Purchase Agreement; and

                                    (3)      if to the Registrants, initially at
                                             the addresses of each Registrant
                                             set forth in the Purchase
                                             Agreement.

                  All such notices and communications shall be deemed to have
 been duly given: when delivered by hand, if personally delivered; one business
 day after being delivered to a next day air courier; five business days after
 being deposited in the mail; and when receipt is acknowledged by the
 recipient's telecopier machine, if sent by telecopier.

                           (c)      Successors And Assigns. This Agreement shall
                                    be binding upon the Registrants and its
                                    successors and assigns.

                           (d)      Counterparts. This Agreement may be
                                    executed in any number of counterparts
                                    (which may be delivered in original form or
                                    by telecopier) and by the parties hereto in
                                    separate counterparts, each of which when so
                                    executed shall be deemed to be an original
                                    and all of which taken together shall
                                    constitute one and the same

                                       20
<PAGE>   21
                                    agreement.

                           (e)      Definition of Terms. For purposes of this
                                    Agreement, (a) the term "business day" means
                                    any day on which the New York Stock
                                    Exchange, Inc. is open for trading, (b) the
                                    term "subsidiary" has the meaning set forth
                                    in Rule 405 under the Securities Act and (c)
                                    except where otherwise expressly provided,
                                    the term "affiliate" has the meaning set
                                    forth in Rule 405 under the Securities Act.

                           (f)      Headings. The headings in this Agreement are
                                    for convenience of reference only and shall
                                    not limit or otherwise affect the meaning
                                    hereof.

                           (g)      Governing Law. This Agreement shall be
                                    governed by and construed in accordance with
                                    the laws of the State of New York, without
                                    reference to the conflict of law rules
                                    thereof.

                           (h)      Remedies. In the event of a breach by any of
                                    the Registrants or by any Holder of any of
                                    their obligations under this Agreement, each
                                    Holder or each of the Registrants, as the
                                    case may be, in addition to being entitled
                                    to exercise all rights granted by law,
                                    including recovery of damages (other than
                                    the recovery of damages for a breach by the
                                    Registrants of its obligations under
                                    Sections 1 or 2 hereof for which liquidated
                                    damages have been paid pursuant to Section 3
                                    hereof), will be entitled to specific
                                    performance of its rights under this
                                    Agreement. Each Registrant and each Holder
                                    agrees that monetary damages would not be
                                    adequate compensation for any loss incurred
                                    by reason of a breach by it of any of the
                                    provisions of this Agreement and hereby
                                    further agree that, in the event of any
                                    action for specific performance in respect
                                    of such breach, it shall waive the defense
                                    that a remedy at law would be adequate.

                                       21
<PAGE>   22
                           (i)      No Inconsistent Agreements. Each Registrant
                                    represents, warrants and agrees that (i) it
                                    has not entered into, shall not, on or after
                                    the date of this Agreement, enter into any
                                    agreement that conflicts with the provisions
                                    hereof, (ii) it has not previously entered
                                    into any agreement which remains in effect
                                    granting any registration rights with
                                    respect to any of its debt securities to any
                                    person and (iii) without limiting the
                                    generality of the foregoing, without the
                                    written consent of the Holders of a majority
                                    in aggregate principal amount of the then
                                    outstanding Transfer Restricted Bonds, it
                                    shall not grant to any person the right to
                                    request the Registrants to register any debt
                                    securities of the Issuer under the
                                    Securities Act unless the rights so granted
                                    are not in conflict or inconsistent with the
                                    provisions of this Agreement.

                           (j)      Severability. The remedies provided herein
                                    are cumulative and not exclusive of any
                                    remedies provided by law. If any term,
                                    provision, covenant or restriction of this
                                    Agreement is held by a court of competent
                                    jurisdiction to be invalid, illegal, void or
                                    unenforceable, the remainder of the terms,
                                    provisions, covenants and restrictions set
                                    forth herein shall remain in full force and
                                    effect and shall in no way be affected,
                                    impaired or invalidated, and the parties
                                    hereto shall use their reasonable best
                                    efforts to find and employ an alternative
                                    means to achieve the same or substantially
                                    the same result as that contemplated by such
                                    term, provision, covenant or restriction. It
                                    is hereby stipulated and declared to be the
                                    intention of the parties that they would
                                    have executed the remaining terms,
                                    provisions, covenants and restrictions
                                    without including any of such that may be
                                    hereafter declared invalid, illegal, void or
                                    unenforceable.

                                       22
<PAGE>   23
                  Please confirm that the foregoing correctly sets forth the
agreement among the Registrants and the Initial Purchasers.

                                      Very truly yours,

                                      NRG SOUTH CENTRAL GENERATING LLC

                                      By: /s/ Craig A. Mataczynski
                                          --------------------------------
                                          Name:  Craig A. Mataczynski
                                          Title: President

                                      LOUISIANA GENERATING  LLC

                                      By: /s/ Craig A. Mataczynski
                                          --------------------------------
                                          Name: Craig A. Mataczynski
                                          Title: Vice President

                                       23
<PAGE>   24
Accepted on behalf of each of the Initial Purchasers:

CHASE SECURITIES INC.

By  /s/ Christopher Lowe
    ----------------------------
        Authorized Signatory
        Christopher Lowe, Vice President

LEHMAN BROTHERS INC.

 By  /s/ Illegible
     ---------------------------
        Authorized Signatory

                                       24
<PAGE>   25
                                   SCHEDULE 1

<TABLE>
<CAPTION>
                                                   Principal Amount
         Initial Purchasers                        of Series A Bonds
         ------------------                        -----------------
<S>                                                <C>
         Chase Securities Inc.                       $275,000,000
         Lehman Brothers Inc.                        $175,000,000
         Credit Suisse First Boston Corporation      $ 25,000,000
         Salomon Smith Barney Inc.                   $ 25,000,000
                                                     ------------
                    Total                            $500,000,000
</TABLE>

<TABLE>
<CAPTION>
                                                    Principal Amount
         Initial Purchasers                         of Series B Bonds
         ------------------                         -----------------
<S>                                                 <C>
         Chase Securities Inc.                        $165,000,000
         Lehman Brothers Inc.                         $105,000,000
         Credit Suisse First Boston Corporation       $ 15,000,000
         Salomon Smith Barney Inc.                    $ 15,000,000
                                                      ------------
                  Total                               $300,000,000
</TABLE>

                                       25
<PAGE>   26
                                                                         ANNEX A

                  Each brokerdealer that receives Exchange Bonds for its own
 account pursuant to the Registered Exchange Offer must acknowledge that it will
 deliver a prospectus in connection with any resale of such Exchange Bonds. The
 Letter of Transmittal states that by so acknowledging and by delivering a
 prospectus, a brokerdealer will not be deemed to admit that it is an
 "underwriter" within the meaning of the Securities Act. This Prospectus, as it
 may be amended or supplemented from time to time, may be used by a
 broker-dealer in connection with resales of Exchange Bonds received in exchange
 for Bonds where such Bonds were acquired by such brokerdealer as a result of
 marketmaking activities or other trading activities. The Registrants have
 agreed that, for a period of 90 days after the Expiration Date (as defined
 herein), it will make this Prospectus available to any brokerdealer for use in
 connection with any such resale. See "Plan of Distribution."

                                       26
<PAGE>   27
                                                                         ANNEX B

                  Each brokerdealer that receives Exchange Bonds for its own
account in exchange for Bonds, where such Bonds were acquired by such
brokerdealer as a result of marketmaking activities or other trading activities,
must acknowledge that it will deliver a prospectus in connection with any resale
of such Exchange Bonds. See "Plan of Distribution."

                                       27
<PAGE>   28
                                                                         ANNEX C

                              PLAN OF DISTRIBUTION

                  Each brokerdealer that receives Exchange Bonds for its own
 account pursuant to the Registered Exchange Offer must acknowledge that it will
 deliver a prospectus in connection with any resale of such Exchange Bonds. This
 Prospectus, as it may be amended or supplemented from time to time, may be used
 by a brokerdealer in connection with resales of Exchange Bonds received in
 exchange for Bonds where such Bonds were acquired as a result of marketmaking
 activities or other trading activities. The Registrants have agreed that, for a
 period of 90 days after the Expiration Date, it will make this prospectus, as
 amended or supplemented, available to any brokerdealer for use in connection
 with any such resale. In addition, until_______________, 2000, all dealers
 effecting transactions in the Exchange Bonds may be required to deliver a
 prospectus.

                  The Registrants will not receive any proceeds from any sale of
 Exchange Bonds by broker-dealers. Exchange Bonds received by brokerdealers for
 their own account pursuant to the Registered Exchange Offer may be sold from
 time to time in one or more transactions in the over-the-counter market, in
 negotiated transactions, through the writing of options on the Exchange Bonds
 or a combination of such methods of resale, at market prices prevailing at the
 time of resale, at prices related to such prevailing market prices or at
 negotiated prices. Any such resale may be made directly to purchasers or to or
 through brokers or dealers who may receive compensation in the form of
 commissions or concessions from any such brokerdealer or the purchasers of any
 such Exchange Bonds. Any broker-dealer that resells Exchange Bonds that were
 received by it for its own account pursuant to the Registered Exchange Offer
 and any broker or dealer that participates in a distribution of such Exchange
 Bonds may be deemed to be an "underwriter" within the meaning of the Securities
 Act and any profit on any such resale of Exchange Bonds and any commission or
 concessions received by any such persons may be deemed to be underwriting
 compensation under the Securities Act. The Letter of Transmittal states that,
 by acknowledging that it will deliver and by delivering a prospectus, a
 brokerdealer will not be deemed to admit that it is an "underwriter" within the
 meaning of the Securities Act.

                  For a period of 90 days after the Expiration Date the Issuer
 will promptly send additional copies of this Prospectus and any amendment or
 supplement to this Prospectus to any brokerdealer that requests such documents
 in the Letter of Transmittal. The Issuer has agreed to pay all expenses
 incident to the Registered Exchange Offer (including the expenses of one
 counsel for the Holders of the Bonds) other than commissions or concessions of
 any brokerdealers and will indemnify the Holders of the Bonds (including any
 brokerdealers) against certain liabilities, including liabilities under the
 Securities Act.

                                       28
<PAGE>   29
                                                                         ANNEX D

         -        CHECK HERE IF YOU ARE A BROKERDEALER AND WISH TO RECEIVE 10
                  ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY
                  AMENDMENTS OR SUPPLEMENTS THERETO.

                          Name: _________________________________
                          Address: ______________________________
                                   ______________________________

If the undersigned is not a brokerdealer, the undersigned represents that it is
not engaged in, and does not intend to engage in, a distribution of Exchange
Bonds. If the undersigned is a brokerdealer that will receive Exchange Bonds for
its own account in exchange for Bonds that were acquired as a result of
marketmaking activities or other trading activities, it acknowledges that it
will deliver a prospectus in connection with any resale of such Exchange Bonds;
however, by so acknowledging and by delivering a prospectus, the undersigned
will not be deemed to admit that it is an "underwriter" within the meaning of
the Securities Act.

                                       29<PAGE>   1
                                                                     Exhibit 4.7

                  COLLATERAL AGENCY AND INTERCREDITOR AGREEMENT

                           Dated as of March 30, 2000

                                      among

                NRG SOUTH CENTRAL GENERATING LLC, as the Issuer,

                   LOUISIANA GENERATING LLC, as the Subsidiary
                                   Guarantor,

                 THE CHASE MANHATTAN BANK, as the Bond Trustee,

                THE CHASE MANHATTAN BANK, as the Depositary Bank,

                                       and

                THE CHASE MANHATTAN BANK, as the Collateral Agent
<PAGE>   2
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                   Page
<S>                                                                                <C>
                             ARTICLE 1

DEFINED TERMS: PRINCIPALS OF CONSTRUCTION                                             2

Section 1.1   Defined Terms                                                           2
Section 1.2   Principles of Construction                                              5

                             ARTICLE 2

              COLLATERAL AGENT; RELATIONS
              AMONG SECURED PARTIES                                                   5

Section 2.1   Appointment and Duties of Collateral Agent                              5
Section 2.2   Rights of Collateral Agent                                              6
Section 2.3   Lack of Reliance on the Collateral Agent                                9
Section 2.4   Indemnification; Bankruptcy                                            10
Section 2.5   Resignation or Removal of the Collateral Agent                         12
Section 2.6   Documents                                                              12
Section 2.7   Authorization                                                          13
Section 2.8   Additional Collateral Agents                                           14
Section 2.9   Power of Attorney from Secured Parties                                 16
Section 2.10  The Issuer as a Secured Party                                          17
Section 2.11  Additional Guarantors                                                  17
Section 2.12  Assignment of Rights, No Assumption of Duties                          17
Section 2.13  Miscellaneous                                                          17

                             ARTICLE 3

              DEPOSITARY BANK                                                        18

Section 3.1   Appointment of Depositary Bank, Powers and Immunities                  18
Section 3.2   Reliance by Depositary Bank                                            20
Section 3.3   Court Orders                                                           21
Section 3.4   Resignation or Removal                                                 21
Section 3.5   Expenses; Indemnification; Fees                                        22
Section 3.6   Direction to Depositary Bank                                           23
Section 3.7   Action by Depositary Bank                                              23
Section 3.8   Merger of Depositary Bank                                              23
</TABLE>

                                       i
<PAGE>   3
<TABLE>
<S>                                                                                <C>
                             ARTICLE 4

ADMINISTRATION OF THE COLLATERAL                                                     23

Section 4.1   Administration of the Collateral                                       23
Section 4.2   Priority of Security Interests                                         24
Section 4.3   Modification of Certain Documents                                      24

                             ARTICLE 5

EVENTS OF DEFAULT; TRIGGER EVENTS                                                    25

Section 5.1   Exercise of Rights                                                     25
Section 5.2   Actions Upon A Trigger Event                                           26
Section 5.3   Exercise of Remedies and Application of Proceeds                       26
Section 5.4   Receipt of Money or Proceeds                                           29
Section 5.5   Additional Secured Parties                                             30
Section 5.6   Event of Loss; Title Event                                             30

                             ARTICLE 6

MISCELLANEOUS                                                                        31

Section 6.1   Amendments                                                             31
Section 6.2   Assignment                                                             32
Section 6.3   Severability                                                           32
Section 6.4   Notices                                                                32
Section 6.5   Successors and Assigns                                                 33
Section 6.6   Counterparts                                                           33
Section 6.7   Governing Law; Submission to Jurisdiction; Waiver of Jury
              Trial                                                                  33
Section 6.8   No Impairments of Other Rights                                         34
Section 6.9   Headings                                                               34
Section 6.10  Termination                                                            34
Section 6.11  Entire Agreement                                                       35
Section 6.12  Execution in Lieu of Agent                                             35
Section 6.13  Conflicts with Other Security Documents                                35
Section 6.14  Scope of Duties; Limits on Liability                                   35
Section 6.15  Notice of Adverse Claim                                                35
</TABLE>

                                       ii
<PAGE>   4
                  COLLATERAL AGENCY AND INTERCREDITOR AGREEMENT (this
"Agreement") dated as of March 30, 2000 among NRG SOUTH CENTRAL GENERATING LLC
(the "Issuer"), a Delaware limited liability company, LOUISIANA GENERATING LLC
(the "Subsidiary Guarantor"), a Delaware limited liability company, THE CHASE
MANHATTAN BANK acting in its capacity as the bond trustee under the Indenture
(together with its successors and assigns, the "Bond Trustee"), THE CHASE
MANHATTAN BANK acting in its capacity as the depositary bank (together with its
successors and assigns, the "Depositary Bank"), any trustees or agents under any
other Finance Documents on behalf of the holders of the indebtedness or
obligations evidenced by such Finance Documents and THE CHASE MANHATTAN BANK
acting in its capacity as the collateral agent appointed hereunder for the
Secured Parties (together with its successors and assigns, the "Collateral
Agent").

                              W I T N E S S E T H:

                  WHEREAS, the Subsidiary Guarantor is acquiring the Project
from Cajun;

                  WHEREAS, the Issuer is a limited liability company established
for the sole purposes of (a) issuing the Bonds under the Indenture and incurring
other Permitted Issuer Indebtedness, (b) owning the membership interests in the
Subsidiary Guarantor and any Additional Subsidiaries or additional assets as
permitted under the Indenture, (c) making a loan to the Subsidiary Guarantor
pursuant to the Guarantor Loan Agreement and (d) entering into those
transactions incident thereto; and

                  WHEREAS, the Issuer has simultaneously with the execution and
delivery of this Agreement issued and sold the Initial Bonds pursuant to the
Indenture;

                  WHEREAS, payments of the principal of, premium (if any),
interest on and any other amounts due with respect to the Initial Bonds will be
serviced by repayment of the Guarantor Loan and guaranteed (subject to certain
limitations) by the Subsidiary Guarantor; and

                  WHEREAS, the Issuer, the Subsidiary Guarantor, the Members,
the Collateral Agent for the behalf of the Secured Parties, and the Depositary
Bank are
<PAGE>   5
entering into the other Security Documents, pursuant to which the Collateral
Agent, acting on behalf of the Secured Parties, will obtain a continuing Lien on
and perfected Security Interest in the Collateral;

                  WHEREAS, the Issuer and the Subsidiary Guarantor may incur
additional Permitted Indebtedness which may be secured by the Collateral;

                  WHEREAS, the parties hereto desire to enter into this
Agreement to set forth their mutual understanding with respect to (a) the
exercise of certain rights, remedies and options by the respective parties
hereto under the above described documents, (b) the priority of their respective
Security Interests created by the Security Documents, (c) the appointment of the
Collateral Agent and (d) the appointment of the Depositary Bank.

                  NOW, THEREFORE, for and in consideration of the premises and
mutual covenants herein contained, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereto, intending to be legally bound, do hereby covenant and agree as
follows:

                                    ARTICLE 1

                    DEFINED TERMS: PRINCIPALS OF CONSTRUCTION

                  Section 1.1 Defined Terms.

                  (a) For all purposes of this Agreement, capitalized terms used
but not otherwise defined herein shall have the meaning set forth in Appendix A
to the Trust Indenture, dated as of March 30, 2000, among the Issuer, the
Subsidiary Guarantor and the Bond Trustee; provided, however that to the extent
a definition is incorporated herein by reference, no amendment or modification
to that definition will be effective under this Agreement without the prior
written consent of the Working Capital Facility Agent if such amendment or
modification would adversely effect the Working Capital Facility Banks.

                  (b) The following terms shall have the following respective
meanings:

                                       2
<PAGE>   6
                  "Additional Collateral Agent" shall have the meaning given to
that term in Section 2.8(a).

                  "Agreement" shall mean this Agreement in its entirety.

                  "Arrearages" shall have the meaning specified in Section 5.4.

                  "Collateral Agent Claims" shall mean all obligations of the
Secured Parties, the Subsidiary Guarantor and the Issuer now or hereafter
existing, to pay fees, costs and expenses to the Collateral Agent pursuant to
Sections 2.2(e) and 2.4 and the other Finance Documents.

                  "Combined Exposure" shall mean, as of any date of calculation,
the sum (calculated without duplication) of the following to the extent the same
is held by or represented by a Secured Party: (i) the aggregate principal amount
of all Outstanding Bonds as of the calculation date, (ii) the aggregate
principal amount of all loans (if any) outstanding as of such calculation date
under the Working Capital Facility and (iii) the aggregate amount of all undrawn
financing commitments as of such calculation date under the Working Capital
Facility which, as of such calculation date, the lenders party to the Working
Capital Agreement have no right to terminate.

                  "Damages" shall have the meaning specified in Section 2.4(b).

                  "Debt Termination Date" shall mean the date on which all
Finance Liabilities, other than contingent liabilities and obligations which are
unasserted at such date, have been paid and satisfied in full and all Finance
Commitments have been terminated.

                  "Designation Letter" shall mean any letter executed and
delivered pursuant to Section 5.5 and substantially in the form of Exhibit A
hereto.

                  "Designation Letter (Additional Guarantor)" shall mean any
letter executed and delivered pursuant to Section 2.11 and substantially in the
form of Exhibit B hereto.

                  "Event of Default" shall mean an "event of default" (or
correlative term) under any Finance Document.

                                       3
<PAGE>   7
                  "Finance Commitment" shall mean any commitment pursuant to any
 of the Finance Documents (or any other similar agreement entered into by the
 Issuer, the Subsidiary Guarantor or any Additional Guarantor with respect to
 the incurrence of Permitted Indebtedness (other than the Bonds)) to provide
 credit to the Issuer, the Subsidiary Guarantor or Additional Guarantor, as the
 case may be.

                  "Finance Liabilities" shall mean all Indebtedness, liabilities
and obligations of the Issuer, the Subsidiary Guarantor and any Additional
Guarantor (including, but not limited to, principal, interest, fees,
reimbursement obligations, penalties, indemnities and legal and other expenses,
whether due after acceleration or otherwise) to the Secured Parties (of
whatsoever nature and howsoever evidenced) under or pursuant to the Indenture,
the Bonds, the Guarantor Security Documents, any Additional Bonds, the Working
Capital Facility and any other Finance Document (or any other similar agreement
entered into by the Issuer, the Subsidiary Guarantor or Additional Guarantor
with respect to the incurrence of Permitted Indebtedness (other than the
Bonds)), to the extent arising on or prior to the Debt Termination Date, in each
case, direct or indirect, primary or secondary, fixed or contingent, now or
hereafter arising out of or relating to any such agreements; and also shall mean
all interest owed to the Secured Parties and accrued following the commencement
of a case (whether voluntary or involuntary) under the Federal Bankruptcy Code
with respect to the Issuer, the Subsidiary Guarantor or Additional Guarantor.

                  "Indemnified Depositary Bank Party" shall have the meaning
specified in Section 3.5.

                  "Indemnified Party" shall have the meaning specified in
Section 2.4(b).

                  "Indenture" shall mean the Trust Indenture, dated as of March
30, 2000, by and among the Issuer, the Subsidiary Guarantor and the Bond
Trustee.

                  "Post-Default Rate" means the rate of interest from time to
time announced by The Chase Manhattan Bank, a New York banking corporation (or
such other financial institution that is at such time serving as the Collateral
Agent) at its principal office in New York, New York as its prime commercial
lending rate (the "Prime Rate") plus 1%. Each change in any interest rate
provided for herein or in the Security Documents based upon the Prime Rate
resulting from a change in the Prime Rate shall take effect at the time of such
change in the Prime Rate.

                                        4
<PAGE>   8
                  "Required Secured Parties" shall mean, at any time, at least
33 1/3% of the Combined Exposure in the case of a payment default and at least
66 2/3% of the Combined Exposure in the case of any other default or any other
action required to be taken hereunder.

                  "Security Interest" shall mean any perfected and enforceable
Lien on the Collateral granted to the Collateral Agent pursuant to the
requirements of any applicable Finance Document.

                  "Trigger Event" shall mean 67% of the Combined Exposure shall
have been declared to be, or shall automatically have become, due and payable
(and shall not have been rescinded) under the Finance Documents, and the
Collateral Agent shall have, upon the written direction from the Required
Secured Parties, declared such event to be a Trigger Event.

                  "Trigger Event Date" shall have the meaning set forth in
Section 5.3(a).

                  Section 1.2 Principles of Construction. For all purposes of
this Agreement, the principles of construction set forth in Section 1.1 of the
Indenture shall apply.

                                    ARTICLE 2

                           COLLATERAL AGENT; RELATIONS
                              AMONG SECURED PARTIES

                  Section 2.1 Appointment and Duties of Collateral Agent. (a)
Each of the Secured Parties hereby designates and appoints The Chase Manhattan
Bank to act as the Collateral Agent under this Agreement and the other Finance
Documents to which the Collateral Agent is a party, and each of the Secured
Parties hereby authorizes the Collateral Agent to take such actions on its
behalf under the provisions of this Agreement and the other Finance Documents to
which the Collateral Agent is a party and to exercise such powers and perform
such duties as are expressly delegated to the Collateral Agent by the terms of
this Agreement and the other Finance Documents to which the Collateral Agent is
a party, together with such other powers as are reasonably incidental thereto.
The execution of this Agreement by the Collateral Agent shall be deemed an
acceptance by the Collateral Agent of the

                                        5
<PAGE>   9
appointment made under this Section 2.1 and an agreement to act as agent on
behalf of the Secured Parties. Notwithstanding any provision to the contrary
elsewhere in this Agreement and the other Finance Documents to which the
Collateral Agent is a party, the Collateral Agent shall not have any duties or
responsibilities, except those expressly set forth in this Agreement and the
other Finance Documents to which the Collateral Agent is a party, or any
fiduciary relationship with any Secured Party, and no implied covenants,
functions or responsibilities shall be read into this Agreement or any other
Finance Document to which the Collateral Agent is a party or otherwise exist
against the Collateral Agent. The Collateral Agent shall not be liable for any
action taken or omitted to be taken by it hereunder or under any other Finance
Document to which the Collateral Agent is a party, or in connection herewith or
therewith, or in connection with the Collateral, unless caused by its gross
negligence or willful misconduct. The Collateral Agent shall not be obligated to
expend or risk its own assets or property in connection with its administration
of this Agreement or its appointment hereunder.

                  (b) Notwithstanding anything to the contrary in this Agreement
or any other Finance Document to which the Collateral Agent is a party, the
Collateral Agent shall not exercise any rights or remedies under this Agreement
(except as set forth in the proviso to Section 5.2(b)) or any other Finance
Document to which the Collateral Agent is a party or give any consent under this
Agreement or any other Finance Document to which the Collateral Agent is a party
or enter into any agreement amending, modifying, supplementing or waiving any
provision of this Agreement or any other Finance Document to which the
Collateral Agent is a party unless it shall have been directed to do so in
writing by the Required Secured Parties; provided, however, that the Collateral
Agent shall consent to the release of Collateral contemplated by the Finance
Documents, and shall enter into any amendments, waivers or supplements with
respect to the Finance Document to which the Collateral Agent is a party to the
extent not inconsistent with the provisions of the other Finance Documents and
which would not result in a Material Adverse Effect (as evidenced by an
Officer's Certificate signed by an Authorized Officer of the Issuer).

                  Section 2.2 Rights of Collateral Agent. (a) The Collateral
 Agent may execute any of its duties under this Agreement or any other Finance
 Document to which the Collateral Agent is a party by or through agents,
 custodians, nominees or attorneys-in-fact. The Collateral Agent may consult
 with counsel and the advice or any opinion of counsel shall be full and
 complete authorization and protection in respect of any action taken or omitted
 by it hereunder in good faith and in accordance with such advice or opinion of
 counsel.

                                        6
<PAGE>   10
                  (b) Neither the Collateral Agent nor any of its officers,
directors, employees, agents, attorneys-in-fact or affiliates shall (i) be
liable for any action lawfully taken or omitted to be taken by it under or in
connection with this Agreement or any other Finance Document to which the
Collateral Agent is a party (except for its gross negligence or willful
misconduct) or (ii) be responsible in any manner to any of the Secured Parties
for any recitals, statements, representations or warranties made by the Issuer,
the Subsidiary Guarantor or any Additional Guarantor contained in this Agreement
or any other Finance Document to which the Collateral Agent is a party or in any
certificate, report, statement or other document referred to or provided for in,
or received by the Collateral Agent under or in connection with, this Agreement
or any other Finance Document to which the Collateral Agent is a party or for
the value, validity, effectiveness, genuineness, enforceability or sufficiency
of this Agreement or any other Finance Document to which the Collateral Agent is
a party or for any failure of the Issuer, the Subsidiary Guarantor or any
Additional Guarantor to perform their respective obligations hereunder or
thereunder. The Collateral Agent shall not be under any obligation to any
Secured Party to ascertain or to inquire as to the observance or performance of
any of the agreements contained in, or conditions of, this Agreement or any
other Finance Document to which the Collateral Agent is a party, or to inspect
the properties, books or records of the Issuer, the Subsidiary Guarantor or any
Additional Guarantor.

                  (c) The Collateral Agent and its employees, agents,
 attorneys-in-fact, and affiliates shall be entitled to rely, and shall be fully
 protected in relying, upon any note, writing, resolution, notice, consent,
 certificate, affidavit, letter, cablegram, telegram, telecopy, telex or
 teletype message, statement, order or other document or conversation believed
 by it to be genuine and correct and to have been signed, sent or made by the
 proper Person or Persons and upon advice or statements of legal counsel
 (including, without limitation, counsel to the Issuer), independent accountants
 and other experts selected by the Collateral Agent. In connection with any
 request of the Required Secured Parties, the Collateral Agent shall be fully
 protected in relying on a certificate of any Secured Party, signed by an
 Authorized Officer of such Secured Party, setting forth the amount owed by the
 Issuer, the Subsidiary Guarantor or any Additional Guarantor, to such Person as
 of the date of such certificate, which certificate shall state that the Person
 signing such certificate is an Authorized Officer of such Person and shall
 state specifically the Finance Document and provision thereof pursuant to which
 the Collateral Agent is being directed to act. The Collateral Agent shall be
 entitled to rely, and shall be fully protected in relying on such certificate.
 The Collateral Agent shall be fully justified in failing or refusing to take
 any action under this Agreement or any other Finance Document to

                                        7
<PAGE>   11
which the Collateral Agent is a party (i) if such action would, in the
reasonable opinion of the Collateral Agent, be contrary to law or the terms of
this Agreement or the other Finance Documents, (ii) if such action is not
specifically provided for in this Agreement or such other Finance Document, it
shall not have received any such advice or concurrence of the Required Secured
Parties as it deems appropriate or, (iii) if, in connection with the taking of
any such action that would constitute an exercise of remedies under this
Agreement or such other Finance Document, it shall not first be indemnified to
its satisfaction by the Secured Parties (other than the Bond Trustee (in its
individual capacity), the Collateral Agent (in its individual capacity), the
Depositary Bank (in its individual capacity) or any other agent or trustee under
any of the Finance Documents (in its individual capacity)) against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. The Collateral Agent shall in all cases be
fully protected in acting, or in refraining from acting, under this Agreement or
any other Finance Document to which the Collateral Agent is a party in
accordance with a written request of the Required Secured Parties (to the extent
that the Required Secured Parties are expressly authorized to direct the
Collateral Agent to take or refrain from taking such action), and such request
and any action taken or failure to act pursuant thereto shall be binding upon
all the Secured Parties.

                  (d) The Collateral Agent shall not be deemed to have actual,
constructive, direct or indirect knowledge or notice of the occurrence of any
Event of Default or Trigger Event unless and until an Authorized Officer of the
Collateral Agent has received a written notice or a certificate from any Secured
Party, the Issuer, the Subsidiary Guarantor or any Additional Guarantor stating
that an Event of Default or Trigger Event has occurred and describing such
event. The Collateral Agent shall have no obligation whatsoever either prior to
or after receiving such notice or certificate to inquire whether an Event of
Default or Trigger Event has in fact occurred and shall be entitled to rely
conclusively, and shall be fully protected in so relying, on any such notice or
certificate so furnished to it. In the event that the Collateral Agent receives
such a notice of or certificate regarding the occurrence of any Trigger Event or
Event of Default, the Collateral Agent shall give notice thereof to the Secured
Parties. The Collateral Agent shall take such action with respect to such
Trigger Event as so requested pursuant to Sections 5.1, 5.2 and 5.3 hereof. The
agreements in this Section shall survive the payment or satisfaction in full of
the Finance Liabilities and the resignation or removal of the Collateral Agent
or the termination of this Agreement.

                                        8
<PAGE>   12
                  (e) The Issuer shall pay to the Collateral Agent upon demand
the amount of any and all reasonable out-of-pocket expenses, including the
reasonable fees and expenses of its counsel (and any local counsel) and of any
experts and agents (including the Depositary Bank) which the Collateral Agent
may incur in connection with (i) the acceptance or administration of this
Agreement and the other Finance Documents to which the Collateral Agent is a
party, (ii) the custody or preservation of, or the sale of, collection from, or
other realization upon, any of the Collateral, (iii) the exercise or enforcement
(whether through negotiations, legal proceedings or otherwise) of any of the
rights of the Collateral Agent or the other Secured Parties hereunder or under
the other Finance Documents to which the Collateral Agent is a party or (iv) the
failure by the Issuer, the Subsidiary Guarantor or any Additional Guarantor to
perform or observe any of the provisions hereof or of any of the other Finance
Documents to which the Collateral Agent is a party.

                  (f) Notwithstanding any other provision of this Agreement to
the contrary, the Collateral Agent shall be under no obligation to take any
action pursuant to any request or direction of any party hereto if it shall
receive conflicting instructions from another party hereto; provided that the
Collateral Agent shall inform such parties of the conflict.

                  (g) The Collateral Agent shall not be under any obligation to
 take any action which is discretionary with the Collateral Agent pursuant to
 this Agreement or in any other Finance Document.

                  Section 2.3 Lack of Reliance on the Collateral Agent. Each of
the other Secured Parties expressly acknowledges that neither the Collateral
Agent nor any of its officers, directors, employees, agents or attorneys-in-fact
has made any representations or warranties to it and that no act by the
Collateral Agent hereinafter taken, including, without limitation, any review of
the Project or of the affairs of the Issuer, the Subsidiary Guarantor or any
Additional Guarantor, shall be deemed to constitute any representation or
warranty by the Collateral Agent to any other Secured Party. Each Secured Party
represents to the Collateral Agent that it has, independently and without
reliance upon the Collateral Agent or any other Secured Party, and based on such
documents and information as it has deemed appropriate, made its own appraisal
of and investigation into the business, operations, property, financial and
other condition and creditworthiness of the Project, the Issuer, the Subsidiary
Guarantor and any Additional Guarantor. Each Secured Party also represents that
it will, independently and without reliance upon the Collateral Agent or any
other Secured Party, and based on such documents and information as it shall

                                        9
<PAGE>   13
deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement,
and to make such investigation as it deems necessary to inform itself as to the
business, operations, property, financial and other condition and
creditworthiness of the Project, the Issuer, the Subsidiary Guarantor and any
Additional Guarantor. Except for notices, reports and other documents expressly
required to be furnished to the other Secured Parties by the Collateral Agent
hereunder, the Collateral Agent shall not have any duty or responsibility to
provide any other Secured Party with any credit or other information concerning
the business, operations, property, financial and other condition or
creditworthiness of the Project, the Issuer, the Subsidiary Guarantor or any
Additional Guarantor which may come into the possession of the Collateral Agent
or any of its officers, directors, employees, agents or attorneys-in-fact.

                  Section 2.4 Indemnification; Bankruptcy. (a) The other Secured
Parties severally agree to indemnify the Collateral Agent and its agents,
officers, directors, representatives and attorneys-in-fact, including, but not
limited to, the Depositary Bank, each in its capacity as such (to the extent not
reimbursed by the Issuer, the Subsidiary Guarantor or any Additional Guarantor
and without limiting the obligation of the Issuer, the Subsidiary Guarantor or
any Additional Guarantor to do so), from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind whatsoever which may at any time be
imposed on, incurred by or asserted against the Collateral Agent in its capacity
as such in any way relating to or arising out of this Agreement or the other
Finance Documents to which the Collateral Agent is a party, or the performance
of its duties as Collateral Agent hereunder or thereunder or any action taken or
omitted by the Collateral Agent in its capacity as such under or in connection
with any of the foregoing (including, but not limited to, any claim that the
Collateral Agent is the owner or operator of any of the Project and liable as
such pursuant to any Environmental Laws); provided that the other Secured
Parties shall not be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements to the extent that any of the foregoing result from
the Collateral Agent's gross negligence or willful misconduct.

                  (b) Without limiting the obligations of the Issuer, the
Subsidiary Guarantor and any Additional Guarantor under any other Finance
Document, the Issuer, the Subsidiary Guarantor and each Additional Guarantor
jointly and severally indemnify the Collateral Agent and each other Secured
Party and, in their capacity as such, their officers, directors, shareholders,
controlling persons, employees, agents,

                                       10
<PAGE>   14
officers, directors, representatives and servants (each an "Indemnified Party")
from and against any and all claims, damages, losses, liabilities, obligations,
penalties, actions, causes of action, judgments, suits, costs, expenses or
disbursements (including, without limitation, reasonable attorneys' and
consultants' fees and expenses) (collectively "Damages") of any kind or nature
whatsoever which may at any time be imposed on, incurred by or asserted against
any Indemnified Party (or which may be claimed against any Indemnified Party by
any Person) by reason of, in connection with or in any way relating to or
arising out of any Transaction Document, the Collateral or any other documents
or transactions in connection with or relating thereto (including, without
limitation, Damages in connection with the presence, release or threatened
release of Environmentally Regulated Materials at, on, under, to or from the
Project or any disposal sites to which wastes from the Project have been taken),
unless due to the gross negligence or willful misconduct of such Indemnified
Party. The Issuer and the Subsidiary Guarantor further shall, upon demand by any
Indemnified Party, jointly and severally pay to such Indemnified Party all
reasonable costs and expenses incurred by such Indemnified Party in enforcing
any rights under any of the Transaction Documents, including reasonable fees and
expenses of counsel (including local counsel).

                  (c) The Secured Parties hereby agree that, except upon the
written consent of the Required Secured Parties, (i) no Secured Party shall
authorize the Issuer, the Subsidiary Guarantor or any Additional Guarantor (A)
to commence a voluntary case or other proceeding seeking liquidation,
reorganization or other relief with respect to the Issuer, the Subsidiary
Guarantor or the Additional Guarantor, as the case may be, under any bankruptcy,
insolvency or other similar law now or hereafter in effect in any jurisdiction
or seeking the appointment of a trustee, receiver, liquidator, custodian or
other similar official of the Issuer, the Subsidiary Guarantor or the Additional
Guarantor or (B) to consent to any such relief or to the appointment of or
taking possession by any such official in an involuntary case or other
proceeding commenced against the Issuer, the Subsidiary Guarantor or any
Additional Guarantor to make a general assignment for the benefit of any Secured
Party or any other creditor of the Issuer, the Subsidiary Guarantor or the
Additional Guarantor, and (ii) none of the Secured Parties shall commence or
join with any other Person in commencing any proceeding against the Issuer, the
Subsidiary Guarantor or any Additional Guarantor under any bankruptcy,
reorganization, liquidation or insolvency law or statute now or hereafter in
effect in any jurisdiction.

                  Section 2.5 Resignation or Removal of the Collateral Agent.
The Collateral Agent may resign as Collateral Agent upon sixty (60) days' notice
to the

                                       11
<PAGE>   15
Secured Parties and may be removed at any time with or without cause upon sixty
(60) days' written notice by the Required Secured Parties, with any such
resignation or removal to become effective only upon the appointment of a
successor Collateral Agent under this Section 2.5; provided, however, that if no
successor Collateral Agent shall have been so appointed within sixty (60) days,
the resigning Collateral Agent may petition any court of competent jurisdiction
for the appointment of a new Collateral Agent; provided further, however, that
if at any time prior to the occurrence of a Trigger Event, the Collateral Agent
is the same Person as the Bond Trustee, the Issuer, at the reasonable request of
Persons who become Secured Parties after the Closing Date, shall have the right
to remove the Collateral Agent upon 60 days' notice to the Secured Parties with
or without cause, effective upon the appointment of a successor Collateral Agent
under this Section 2.5. If the Collateral Agent shall resign or be removed as
Collateral Agent by the Required Secured Parties or the Issuer, as applicable,
then the Required Secured Parties shall (and if no such successor shall have
been appointed within sixty (60) days of the Collateral Agent's resignation or
removal, the Collateral Agent may) appoint a successor agent for the Secured
Parties, which successor agent shall be reasonably acceptable to the Issuer,
whereupon such successor agent shall succeed to the rights, powers and duties of
the Collateral Agent, and the term "Collateral Agent" shall mean such successor
agent effective upon its appointment, and the former Collateral Agent's rights,
powers and duties as Collateral Agent shall be terminated, without any other or
further act or deed on the part of such former Collateral Agent (except that the
resigning Collateral Agent shall deliver all Collateral then in its possession
to the successor Collateral Agent) or any of the other Secured Parties. After
any retiring Collateral Agent's resignation or removal hereunder as Collateral
Agent, the provisions of this Agreement shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Collateral Agent.

                  Section 2.6 Documents. The Collateral Agent will forward
promptly after the Collateral Agent's receipt thereof (and will use its best
efforts to forward within five (5) Business Days of such receipt) to the Bond
Trustee and the Working Capital Facility Agent (a) a copy of each document
furnished to the Collateral Agent for such Secured Party under the Finance
Documents and (b) any written notice delivered to the Collateral Agent pursuant
to any Third Party Consent. The Collateral Agent will forward to each Secured
Party, promptly upon such Secured Party's written request therefor, a copy of
any other document furnished to the Collateral Agent under any Finance Document
to which the Collateral Agent is a party.

                                       12
<PAGE>   16
                  Section 2.7 Authorization. (a) The Collateral Agent is hereby
authorized by each Secured Party, for itself and as a Secured Party (i) to
execute, deliver and perform each of the Finance Documents (other than the
Working Capital Facility) to which the Collateral Agent or the Secured Parties
are or are intended to be a party and (ii) subject to the terms of the Finance
Documents, to draw on, or otherwise act under any letter of credit or guarantee
delivered to the Collateral Agent for the benefit of the Secured Parties and
each of the other Secured Parties agrees to be bound by all the agreements of
the Collateral Agent contained in, and all of the terms and conditions of, the
Finance Documents for which the Collateral Agent is acting as its agent
hereunder.

                  (b) Without the prior written consent of, or direction from,
each of the Secured Parties, the Collateral Agent shall not (i) consent to any
modification, supplement or waiver (other than to cure any ambiguity, defect or
inconsistency upon advice of counsel) under any of the Finance Documents to
which the Collateral Agent is a party, (ii) except as permitted pursuant to
Section 2.1(b), release any Collateral or otherwise terminate any Lien under any
Finance Document (except that the Collateral Agent may release funds from the
Depositary Accounts in accordance with the terms and provisions of Article 6 of
the Indenture), (iii) consent to any modification of this Section 2.7 or of the
definition of Secured Obligation or Secured Party, (iv) release any letter of
credit, guarantee or other instrument securing the obligations of any Person
under any Transaction Document, (v) consent to any Lien under any Security
Document securing obligations other than Secured Obligations or (iv) consent to
any item requiring the consent of the One Hundred Percent Holders as set forth
in Section 8.2 of the Indenture or all of the Working Capital Facility Banks, as
set forth in Section 10.2(b) of the Working Capital Facility.

                  (c) For the avoidance of doubt, nothing in this Section 2.7 or
elsewhere in this Agreement or in any other Finance Document or other
Transaction Document shall limit the obligations of the Issuer, the Subsidiary
Guarantor or any Additional Guarantor under any of the Transaction Documents,
including, without limitation, any obligation of the Issuer, the Subsidiary
Guarantor or the Additional Guarantor to obtain any consent or approval of any
of the Secured Parties, obtained or required to be obtained by the Issuer, the
Subsidiary Guarantor or the Additional Guarantor prior to any amendment of,
modification or supplement to or waiver under any Finance Document or other
Transaction Document, and the Collateral Agent shall not consent to any
amendment of, modification of or supplement to or waiver under any Finance
Document or other Transaction Document unless and until the Issuer, the
Subsidiary Guarantor or the Additional Guarantor shall have first obtained

                                       13
<PAGE>   17
all such required consents and approvals and provided the Collateral Agent with
written certification of the same.

                  Section 2.8 Additional Collateral Agents. (a) Whenever the
Collateral Agent shall deem it necessary or prudent in order either to conform
to any law of any jurisdiction in which all or any part of the Collateral shall
be situated or to make any claim or bring any suit with respect to the
Collateral, or the Collateral Agent shall have been advised by counsel that it
is so necessary or prudent in the interests of the Secured Parties, the
Collateral Agent shall take such action (including, to the extent required, the
execution and delivery of an agreement supplemental hereto and such other
instruments and agreements) as may be necessary or proper to constitute another
bank or trust company, or one or more Persons approved by the Collateral Agent
and, unless an Event of Default has occurred and is continuing, reasonably
acceptable to the Issuer, either to act as an additional collateral agent of all
or any part of the Collateral, jointly with the Collateral Agent, or to act as a
separate collateral agent or trustee of all or any part of the Collateral (any
such additional or separate agent or trustee being herein called an "Additional
Collateral Agent"), in any such case with such powers as may be granted pursuant
to such action, and to vest in such bank, trust company or Person as an
Additional Collateral Agent any property, title, right or power of the
Collateral Agent deemed necessary or advisable by the Collateral Agent, subject
to the remaining provisions of this Section 2.8. The Collateral Agent may
execute, deliver and perform any deed, conveyance, assignment or other
instrument in writing as may be required by any Additional Collateral Agent for
more fully and certainly vesting in and confirming to it, him or her any
property, title, right or power which by the terms of such agreement
supplemental hereto is expressed to be conveyed or conferred to or upon such
Additional Collateral Agent.

                  (b) Each Additional Collateral Agent shall, to the extent
permitted by law, be appointed and act, and the Collateral Agent shall act,
subject to the following provisions and conditions:

                           (i) all powers, duties, obligations and rights
         conferred or imposed upon the Collateral Agent in respect of the
         receipt, custody, investment and payment of moneys shall be exercised
         solely by the Collateral Agent;

                           (ii) all other rights, powers, duties and obligations
         conferred or imposed upon the Collateral Agent may be conferred or
         imposed

                                       14
<PAGE>   18
         upon and exercised or performed by the Additional Collateral Agent
         jointly with the Collateral Agent, except to the extent that under any
         law of any jurisdiction in which any particular act or acts are to be
         performed, the Collateral Agent shall be incompetent or unqualified to
         perform such act or acts, in which event such rights, powers, duties
         and obligations (including the holding of title to any part of the
         Collateral in any such jurisdiction) shall be exercised and performed
         by such Additional Collateral Agent;

                           (iii) no power hereby given to, or with respect to
         which it is hereby provided may be exercised by, any such Additional
         Collateral Agent shall be exercised hereunder by such Additional
         Collateral Agent except jointly with, or with the consent of, the
         Collateral Agent;

                           (iv) such Additional Collateral Agent shall act only
         upon and to the extent of written instructions from the Collateral
         Agent and no other party, and the Additional Collateral Agent shall not
         be required to take and shall not be responsible for taking any action
         as Additional Collateral Agent under any Security Document or this
         Agreement unless it has received such written instructions from the
         Collateral Agent; and

                           (v) the Collateral Agent shall not be personally
         liable by reason of any act or omission of any Additional Collateral
         Agent hereunder, nor shall such Additional Collateral Agent be
         personally liable by reason of any act or omission of the Collateral
         Agent or any other Additional Collateral Agent hereunder.

If at any time the Collateral Agent shall deem it no longer necessary or prudent
in order to conform to any such law or take any such action or shall be advised
by counsel that it is no longer so necessary or prudent in the interest of the
Secured Parties to appoint an Additional Collateral Agent, the Collateral Agent
shall execute and deliver an agreement supplemental hereto and all other
instruments and agreements necessary or proper to remove any Additional
Collateral Agent.

                  (c) Any Additional Collateral Agent may at any time by an
instrument in writing constitute the Collateral Agent its agent or
attorney-in-fact, with full power and authority, to the extent which may be
authorized by law, to do all acts and things and exercise all discretion which
it is authorized or permitted to do or exercise, for and in its behalf and in
its name. In case any such Additional Collateral Agent shall die, become
incapable of acting, resign or be removed, all the assets,

                                       15
<PAGE>   19
property, rights, powers, trusts, duties and obligations of such Additional
Collateral Agent, so far as permitted by law, shall vest in and be exercised by
the Collateral Agent, without the appointment of a new successor to such
Additional Collateral Agent unless and until a successor is appointed in the
manner hereinbefore provided.

                  (d) Any request, approval or consent in writing by the
Collateral Agent to any Additional Collateral Agent shall be sufficient to
warrant such Additional Collateral Agent to take such action as may be so
requested, approved or consented.

                  (e) Each Additional Collateral Agent appointed pursuant to
this Section 2.8 shall be subject to, and shall have the benefits of, the
provisions of this Agreement insofar as they apply to the Collateral Agent.

                  Section 2.9 Power of Attorney from Secured Parties. Each
Secured Party hereby gives a power of attorney, coupled with an interest, to the
Collateral Agent, and appoints, makes, constitutes and designates the Collateral
Agent its true and lawful attorney-in-fact, subject to Section 2.7, to consent
on its behalf (in its capacity as a Secured Party) under the Transaction
Documents to the extent that the consent of the Collateral Agent or such Secured
Party is required thereunder, and to take such actions on its behalf (in its
capacity as a Secured Party) under the provisions of such Transaction Documents
as are reasonably incidental thereto, to execute and deliver in the name of and
on behalf of such Secured Party, or in its own name, as the case may be, all
documents required to be executed by such Secured Party (in its capacity as
such) in connection therewith and to do, take and perform all and every act and
thing whatsoever requisite, proper or necessary to be done, in the exercise of
any of the rights and powers herein granted, as fully to all intents and
purposes as such Secured Party (in its capacity as such) might or could do, with
full power of substitution or revocation, hereby ratifying and confirming all
that said attorney-in-fact, or its substitute or substitutes, shall lawfully do
or cause to be done by virtue of this power of attorney and the rights and
powers herein granted; provided that the Collateral Agent shall not so consent
or take such other actions other than in accordance with this Agreement and the
Security Documents. This Section 2.9 is to be construed and interpreted as a
general power of attorney coupled with an interest. The enumeration of specific
items, rights, acts or powers herein is not intended to, nor does it limit or
restrict, and is not to be construed or interpreted as limiting or restricting,
the general powers herein granted to said attorney-in-fact. The rights, powers,
and authority of said attorney-in-fact herein granted shall commence and be in
full force and effect as of the Closing Date, and such rights,

                                       16
<PAGE>   20
powers and authority shall remain in full force and effect thereafter until the
Debt Termination Date.

                  Section 2.10 The Issuer as a Secured Party. The Issuer hereby
collaterally assigns, transfers and conveys all of its rights hereunder, either
now existing or hereafter arising, to the Bond Trustee for the benefit of the
Holders, as security for its obligations under the Finance Documents. The Bond
Trustee shall, subject to the terms of the Indenture, be entitled to vote on all
matters under this Agreement in accordance with the direction of the Holders of
the aggregate principal amount of the Outstanding Bonds required to take action
under the Indenture.

                  Section 2.11 Additional Guarantors. If the Issuer acquires or
creates an Additional Subsidiary that is an Additional Guarantor pursuant to the
Finance Documents, the Issuer will cause such Subsidiary to execute the
Designation Letter (Additional Guarantor) attached as Exhibit B hereto.

                  Section 2.12 Assignment of Rights, No Assumption of Duties.
 Anything herein contained to the contrary notwithstanding, (i) each of the
 Issuer, the Subsidiary Guarantor and any Additional Guarantor shall remain
 liable under each of the Transaction Documents to which it is a party to the
 extent set forth therein to perform all of its duties and obligations
 thereunder to the same extent as if this Agreement had not been executed, (ii)
 the exercise by the Collateral Agent of any of its rights, remedies or powers
 hereunder shall neither release the Issuer, the Subsidiary Guarantor nor any
 Additional Guarantor from any of its duties or obligations under each of the
 Transaction Documents to which it is a party and (c) the Collateral Agent shall
 have no obligation or liability under any of the Transaction Documents to which
 each of the Issuer, the Subsidiary Guarantor and any Additional Guarantor is a
 party by reason of or arising out of this Agreement, nor shall the Collateral
 Agent be obligated to perform any of the obligations or duties of the Issuer,
 the Subsidiary Guarantor or any Additional Guarantor thereunder, except as
 expressly provided herein.

                  Section 2.13 Miscellaneous. (a) None of the provisions of this
Agreement shall require the Collateral Agent to expend or risk its own funds or
otherwise to incur any liability, financial or otherwise, in the performance of
any of its duties hereunder, or in the exercise of any of its rights or powers
if it shall have reasonable grounds for believing that repayment of such funds
or indemnity satisfactory to it against such risk or liability is not assured to
it.

                                       17
<PAGE>   21
                  (b) Whenever in the administration of the provisions of this
Agreement, the Collateral Agent shall deem it necessary or desirable that a
matter be provided or established prior to taking or suffering any action to be
taken hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of gross negligence or bad faith on
the part of the Collateral Agent, be deemed to be conclusively proved and
established by a certificate signed by any of the Secured Parties and delivered
to the Collateral Agent and such certificate, in the absence of gross negligence
or bad faith on the part of the Collateral Agent, shall be full warrant to the
Collateral Agent for any action taken, suffered or omitted by it under the
provisions of this Agreement upon the faith thereof.

                  (c) The Collateral Agent shall not be bound to make any
 investigation into the facts or matters stated in any resolution, certificate,
 statement, instrument, opinion, report, notice, request, consent, entitlement
 order, approval or other paper or document.

                  (d) The Collateral Agent may execute any of the trusts or
 powers hereunder or perform any duties hereunder either directly or by or
 through agents, attorneys, custodians or nominees appointed with due care, and
 shall not be responsible for any willful misconduct or negligence on the part
 of any new agent, attorney, custodian or nominee so appointed.

                  (e) Any corporation into which the Collateral Agent may be
 merged or converted or with which it may be consolidated, or any corporation
 resulting from any merger, conversion or consolidation to which the Collateral
 Agent shall be a party, or any corporation succeeding to the business of the
 Collateral Agent shall be the successor of the Collateral Agent hereunder
 without the execution or filing of any paper with any party hereto or any
 further act on the part of any of the parties hereto except where an instrument
 of transfer or assignment is required by law to effect such succession,
 anything herein to the contrary notwithstanding.

                                    ARTICLE 3

                                 DEPOSITARY BANK

                  Section 3.1 Appointment of Depositary Bank, Powers and
Immunities.

                                       18
<PAGE>   22
                  (a) The Depositary Bank may execute any of its duties under
 this Agreement and the Indenture by or through agents or attorneys-in-fact. The
 Depositary Bank may consult with counsel and the advice or any opinion of
 counsel shall be full and complete authorization and protection in respect of
 any action taken or omitted by it hereunder in good faith and in accordance
 with such advice or opinion of counsel.

                  (b) The Collateral Agent on behalf of the Secured Parties
 under this Agreement hereby appoints the Depositary Bank to act as depositary
 bank and "securities intermediary" hereunder with such powers as are expressly
 delegated to the Depositary Bank by the terms of this Agreement and the
 Indenture. The Depositary Bank shall not have any duties or responsibilities
 except those expressly set forth in this Agreement and the Indenture. Without
 limiting the generality of the foregoing, the Depositary Bank shall take all
 actions as the Collateral Agent shall direct it to perform in accordance with
 the express provisions of this Agreement and the Indenture or as the Collateral
 Agent may otherwise direct it to perform in accordance with the provisions of
 this Agreement and the Indenture. Notwithstanding anything to the contrary
 contained herein, the Depositary Bank shall not be required to take any action
 which is contrary to this Agreement, the Indenture or Applicable Law. Neither
 the Depositary Bank nor any of its Affiliates shall be responsible to any
 Secured Party for any recitals, statements, representations or warranties made
 by the Issuer, the Subsidiary Guarantor or any Additional Guarantor contained
 in this Agreement or any other Finance Document or in any certificate or other
 document referred to or provided for in, or received by any Secured Party
 under, the Indenture, this Agreement or any other Finance Document for the
 value, validity, effectiveness, genuineness, enforceability or sufficiency of
 this Agreement, the Indenture or any other document referred to or provided for
 herein or therein or for any failure by the Issuer, the Subsidiary Guarantor or
 any Additional Guarantor to perform their respective obligations hereunder or
 thereunder. The Depositary Bank shall not be required to ascertain or inquire
 as to the performance by the Issuer, the Subsidiary Guarantor or any Additional
 Guarantor of any of their respective obligations under the Indenture, this
 Agreement, any other Finance Document or any other document or agreement
 contemplated hereby or thereby. The Depositary Bank shall not be (a) required
 to initiate or conduct any litigation or collection proceeding hereunder or
 under any other Security Document or (b) responsible for any action taken or
 omitted to be taken by it hereunder (except for its own gross negligence or
 willful misconduct) or in connection with any other Security Document. Except
 as otherwise provided under this Agreement, the Working Capital Facility or the
 Indenture, the Depositary Bank shall take action under this Agreement and the

                                       19
<PAGE>   23
Indenture only as it shall be directed in writing by the Collateral Agent.
Whenever in the administration of this Agreement or the Indenture, the
Depositary Bank shall deem it necessary or desirable that a factual matter be
proved or established in connection with the Depositary Bank taking, suffering
or omitting to take any action hereunder or thereunder, such matter (unless
other evidence in respect thereof is herein specifically prescribed) may be
deemed to be conclusively proved or established by a certificate of any
Authorized Officer of the Issuer or the Collateral Agent, if appropriate. The
Depositary Bank shall have the right at any time to seek instructions concerning
the administration of this Agreement and the Indenture from the Collateral Agent
or any court of competent jurisdiction. The Depositary Bank shall have no
obligation to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder or under the
Indenture.

                  Section 3.2 Reliance by Depositary Bank. The Depositary Bank
shall be entitled to rely upon and shall not be bound to make any investigation
into the facts or matters stated in any Officer's Certificate of the Issuer, the
Subsidiary Guarantor, any Additional Guarantor or the Collateral Agent or any
other notice or other document (including any cable, telegram, telecopy or
telex) believed by it to be genuine and to have been signed or sent by or on
behalf of the proper Person or Persons, and upon advice or statement of legal
counsel, independent accountants and other experts selected by the Depositary
Bank and shall have no liability for its actions taken thereupon, unless due to
the Depositary Bank's willful misconduct or gross negligence. Without limiting
the foregoing, the Depositary Bank shall be required to make payments to the
Secured Parties only as set forth herein. The Depositary Bank shall be fully
justified in failing or refusing to take any action under this Agreement or the
Indenture (i) if such action would, in the reasonable opinion of the Depositary
Bank, be contrary to Applicable Law or the terms of this Agreement or the
Indenture, (ii) if such action is not specifically provided for in this
Agreement or the Indenture, it shall not have received any such advice or
concurrence of the Collateral Agent as it deems appropriate or (iii) if, in
connection with the taking of any such action that would constitute an exercise
of remedies under this Agreement or the Indenture (whether such action is or is
intended to be an action of the Depositary Bank or the Collateral Agent), it
shall not first be indemnified to its satisfaction by the Secured Parties (other
than the Bond Trustee (in its individual capacity) or the Collateral Agent (in
its individual capacity) or any other agent or trustee under any of the Finance
Documents (in their respective individual capacities)) against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. The Depositary Bank shall in all cases be
fully protected in acting, or in refraining from acting, under this Agreement or
the Indenture in

                                       20
<PAGE>   24
accordance with a request of the Collateral Agent, and such request and any
action taken or failure to act pursuant thereto shall be binding upon all the
Secured Parties.

                  Section 3.3 Court Orders. The Depositary Bank is hereby
authorized, in its exclusive discretion, to obey and comply with all writs,
orders, judgments or decrees issued by any court or administrative agency
affecting any money, documents or things held by the Depositary Bank. The
Depositary Bank shall not be liable to any of the parties hereto or any other
Secured Party, their successors, heirs or personal representatives by reason of
the Depositary Bank's compliance with such writs, orders, judgments or decrees,
notwithstanding that such writ, order, judgment or decree is later reversed,
modified, set aside or vacated.

                  Section 3.4 Resignation or Removal.

                  (a) Except during the continuation of a Default or Event of
Default (as such term is defined in such document) under any Finance Document,
the Issuer shall have the right to remove the Depositary Bank upon thirty (30)
days' prior written notice to the Secured Parties with or without cause,
effective upon the appointment of a successor Depositary Bank under this Section
3.4, which is reasonably acceptable to the Bond Trustee, the Working Capital
Facility Agent and the Collateral Agent.

                  (b) Subject to the appointment and acceptance of a successor
Depositary Bank as provided below, the Depositary Bank may resign at any time by
giving thirty (30) days' prior written notice thereof to the Collateral Agent
and the Issuer, provided that in the event the Depositary Bank is also the
Collateral Agent, it must also at the same time resign as Collateral Agent. The
Depositary Bank may be removed at any time with cause by the Collateral Agent.
In the event that the Depositary Bank shall decline to take any action without
first receiving adequate indemnity from the Issuer, the Subsidiary Guarantor, an
Additional Guarantor, the other Secured Parties or the Collateral Agent, as the
case may be, and, having received an indemnity, shall continue to decline to
take such action, the Collateral Agent shall be deemed to have sufficient cause
to remove the Depositary Bank. In the event that the Depositary Bank is also the
Bond Trustee, the Collateral Agent shall have the right to remove the Depositary
Bank with or without cause. Upon any such resignation or removal, the Collateral
Agent shall have the right to appoint a successor Depositary Bank, which
Depositary Bank (except during the continuation of a Default or Event of Default
(as such term is defined in such document) under any Finance Document) shall be
reasonably acceptable to the Issuer. If no successor

                                       21
<PAGE>   25
Depositary Bank shall have been appointed by the Collateral Agent and shall have
accepted such appointment within thirty (30) days' after the retiring Depositary
Bank's giving of notice of resignation or removal of the retiring Depositary
Bank, then (i) the retiring Depositary Bank may petition a court of competent
jurisdiction for the appointment of a successor Depositary Bank or (ii) the
retiring Depositary Bank may appoint a successor Depositary Bank, which shall be
a bank or trust company reasonably acceptable to the Collateral Agent and the
Issuer. Upon the acceptance of any appointment as Depositary Bank hereunder by
the successor Depositary Bank, (a) such successor Depositary Bank shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Depositary Bank, and the retiring Depositary Bank
shall be discharged from its duties and obligations hereunder and (b) the
retiring Depositary Bank shall promptly transfer all Depositary Accounts within
its possession or control to the possession or control of the successor
Depositary Bank and shall execute and deliver such notices, instructions and
assignments as may be necessary or desirable to transfer the rights of the
Depositary Bank with respect to the Depositary Accounts to the successor
Depositary Bank. After the retiring Depositary Bank's resignation or removal
hereunder as Depositary Bank, the provisions of this Article 3 shall continue in
effect for its benefit in respect of any actions taken or omitted to be taken by
it while it was acting as Depositary Bank.

                  Section 3.5 Expenses; Indemnification; Fees.

                  (a) The Issuer and the Subsidiary Guarantor jointly and
severally agree to pay or reimburse all reasonable out-of-pocket expenses of the
Depositary Bank (including reasonable fees and expenses for legal services) in
respect of, or incident to, the execution, administration or enforcement of any
of the provisions of this Agreement or the Indenture or in connection with any
amendment, waiver or consent relating to this Agreement, the Working Capital
Facility or the Indenture. The obligations contained in this Section 3.5 shall
survive the termination of this Agreement, the Working Capital Facility and the
Indenture or the resignation or removal of the Depositary Bank.

                  (b) The Issuer and the Subsidiary Guarantor jointly and
severally agree to indemnify the Depositary Bank in its capacity as such, and,
in their capacity as such, its officers, directors, shareholders, controlling
persons, employees, agents and servants (each an "Indemnified Depositary Bank
Party") from and against any and all claims, losses, liabilities and expenses
(including the reasonable fees and expenses of counsel) arising out of or
resulting from this Agreement, the Working

                                       22
<PAGE>   26
Capital Facility or the Indenture (including, without limitation, performance
under or enforcement of this Agreement, the Working Capital Facility or the
Indenture, but excluding any such claims, losses or liabilities resulting from
the Indemnified Depositary Bank Party's gross negligence or willful misconduct).
This indemnity shall survive the termination of this Agreement, the Working
Capital Facility and the Indenture and the resignation or removal of the
Depositary Bank. This indemnity is extended in addition to, and not in
derogation or limitation of, the provisions of Section 2.4.

                  (c) On the Closing Date, and on each anniversary of the
Closing Date to and including the Debt Termination Date, the Issuer shall pay
the Depositary Bank an annual fee in an amount mutually agreed on by the Issuer
and the Depositary Bank.

                  Section 3.6 Direction to Depositary Bank. Unless otherwise
provided herein, any instruction or direction given to the Depositary Bank with
respect to the transfer, withdrawal, deposit or payment of any funds under this
Agreement, the Working Capital Facility or the Indenture shall be in writing and
shall state with specificity the dollar amount, source and disposition of any
such funds.

                  Section 3.7 Action by Depositary Bank. Notwithstanding any
provisions to the contrary in this Agreement, the Working Capital Facility or
the Indenture, if any transfer, withdrawal, deposit or payment of any funds by
the Depositary Bank, or any other action to be taken by the Depositary Bank,
under this Agreement, the Working Capital Facility or the Indenture is to be
made or taken on a day which is not a Business Day, such transfer, withdrawal,
deposit, payment or other action shall be made or taken on the next succeeding
Business Day.

                  Section 3.8 Merger of Depositary Bank. Any corporation into
which the Depositary Bank may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Depositary Bank shall be a party, or any corporation
succeeding to the business of the Depositary Bank shall be the successor of the
Depositary Bank hereunder without the execution or filing of any paper with any
party hereto or any further act on the part of any of the parties hereto except
where an instrument of transfer or assignment is required by law to effect such
succession, anything herein to the contrary notwithstanding.

                                       23
<PAGE>   27
                                    ARTICLE 4

                        ADMINISTRATION OF THE COLLATERAL

                  Section 4.1 Administration of the Collateral. (a) The
Collateral Agent shall hold the Collateral and any Lien thereon for the benefit
of the Secured Parties pursuant to the terms of this Agreement, the Security
Documents and any other Finance Document to which the Collateral Agent is a
party. The Collateral Agent shall administer the Collateral in the manner
contemplated by the Security Documents and the other Finance Documents and shall
apply the balances from time to time held in the Depositary Accounts in the
manner provided in this Agreement, the Indenture, the Working Capital Facility
and the other Finance Documents. The Collateral Agent shall exercise such rights
and remedies with respect to the Collateral as are granted to it under the
Security Documents, the other Finance Documents and Applicable Law. Except as
otherwise expressly provided herein, no Secured Party and no class or classes
thereof shall have any right to direct the Collateral Agent to take any action
in respect of the Collateral and no Secured Party shall have any right to sell,
exchange or otherwise deal with any property at any time pledged, assigned or
mortgaged to secure the Secured Obligations or take action with respect to the
Collateral independently of the Collateral Agent.

                  (b) The Collateral Agent shall have no responsibility with
respect to the recording, re-recording, filing, or refiling under the laws of
any jurisdiction under this Agreement, the other Finance Documents, or any other
document or statement that may be required or permitted to be recorded,
re-recorded, filed or re-filed under any such laws to perfect or protect the
security interests created by or pursuant to the Security Documents, or the
payment of any fees or taxes in connection therewith.

                  Section 4.2 Priority of Security Interests. (a) Each Secured
Party agrees that the Security Interest of each Secured Party in any Collateral
ranks and shall rank equally in priority with the Security Interest of the other
Secured Parties in the same Collateral.

                  (b) Notwithstanding anything to the contrary in clause (a),
the priorities specified in this Agreement and in the Indenture with respect to
(i) the Collateral, (ii) all proceeds of the Collateral (including without
limitation all Loss Proceeds to the extent received by the Collateral Agent
after giving effect to the limitations and deductions permitted under the
Indenture with respect to such

                                       24
<PAGE>   28
proceeds) and (iii) all amounts and funds retained in accordance with the
Indenture, in each case are applicable irrespective of any statement to the
contrary in any Finance Document or any other agreement, the time or order or
method of attachment or perfection of Liens, the time or order of filing of
financing statements, or the giving or failure to give notice of the acquisition
or expected acquisition of purchase money or other security interests, and to
the extent not provided for in this Agreement, the rights and priorities of the
Secured Parties shall be determined in accordance with Applicable Law.

                  Section 4.3 Modification of Certain Documents. Neither the
Issuer, the Subsidiary Guarantor nor the Bond Trustee shall agree or consent to
any material termination, modification, supplement or waiver of any material
provision of Sections 6.2, 6.3, 6.4, 6.5, 6.7 or 6.11 of the Indenture (or any
material definition applicable thereto) without the prior written consent of the
Working Capital Facility Agent.

                                    ARTICLE 5

                        EVENTS OF DEFAULT; TRIGGER EVENTS

                  Section 5.1 Exercise of Rights. So long as any Finance
Liabilities remain outstanding, each of the Secured Parties hereby acknowledges
and agrees as follows:

                  (a) The Collateral Agent shall administer the Collateral in
the manner contemplated by the Security Documents and this Agreement and only
upon the occurrence and continuance of a Trigger Event (subject to the
requirement that the Collateral Agent shall have received written notice
pursuant to Article 5.2(a)), the Collateral Agent shall exercise, upon the
written instruction of, and on behalf of, the Required Secured Parties in
accordance with the terms and provisions of this Article 5, such rights and
remedies with respect to the Collateral as are granted to it under this
Agreement, the Security Documents and Applicable Law.

                  (b) No Secured Party and no class or classes of Secured
Parties shall have any right, other than in accordance with the terms and
provisions of this Article 5, to (i) sell, exchange, release, not perfect and
otherwise deal with any property at any time pledged, assigned or mortgaged to
secure the Finance Liabilities, (ii) exercise or refrain from exercising any
rights to direct the Collateral Agent to take any action in respect of the
Collateral, or (iii) take any other action with

                                       25
<PAGE>   29
respect to the Collateral (A) independently of the Collateral Agent or (B) other
than to direct the Collateral Agent to take action in accordance with the terms
and provisions of this Article 5. Subject to Section 2.7, any of the Secured
Parties may, at any time and from time to time (i) amend in any manner any
outstanding Finance Documents to which they are a party in accordance with the
terms thereof, (ii) release anyone liable in any manner under or in respect of
such Secured Party's Finance Liabilities in accordance with the terms of the
Finance Documents to which they are a party and (iii) apply any sums from time
to time received for payment or satisfaction of such Secured Party's Finance
Liabilities except as otherwise provided in Section 5.4.

                  (c) Each Secured Party hereby agrees that upon the request of
the Collateral Agent it will give the Collateral Agent notice of the aggregate
amount of outstanding Indebtedness owed by the Issuer, the Subsidiary Guarantor
and any Additional Guarantor to such Secured Party under the applicable Finance
Documents and any other information that the Collateral Agent may reasonably
request.

                  Section 5.2 Actions Upon A Trigger Event. So long as any
Finance Liability remains outstanding, the following provisions shall apply:

                  (a) Each Secured Party hereby agrees to give each other
Secured Party and the Collateral Agent written notice of the occurrence of an
Event of Default under such Secured Party's Finance Documents and of the
occurrence of an acceleration under such Secured Party's Finance Documents
wherein such Secured Party's Finance Liabilities have been declared to be or
have automatically become due and payable earlier than the scheduled maturity
thereof and such notice shall set forth the aggregate amount of Finance
Liabilities that have been so accelerated under such Finance Documents, in each
case as soon as practicable after the occurrence thereof; provided, however,
that the failure to provide such notice shall not limit or impair the rights of
the Secured Parties hereunder or under any of the other Finance Documents.

                  (b) The Issuer and the Subsidiary Guarantor hereby agree that
if a Trigger Event shall have occurred and is continuing, the Collateral Agent
is hereby irrevocably authorized and empowered to act as the attorney-in-fact
for the Issuer, the Subsidiary Guarantor and the Additional Guarantor with
respect to the giving of any instructions or notices under the Finance
Documents; provided, however that if a bankruptcy event set forth in the
Indenture, the Working Capital Facility or any other Finance Document in respect
of the Issuer, the Subsidiary Guarantor, or any Addi-

                                       26
<PAGE>   30
tional Guarantor has caused the Trigger Event, the Collateral Agent shall
automatically and irrevocably be authorized and empowered to act as the
attorney-in-fact for the Issuer, the Subsidiary Guarantor and the Additional
Guarantor with respect to the giving of such instructions or notices. The
Collateral Agent hereby agrees that, upon the written request of the Required
Secured Parties, it shall give such notices and instructions under the Finance
Documents to the Depositary Bank. The Depositary Bank hereby agrees that it
shall accept such notices and instructions from the Collateral Agent.

                  Section 5.3 Exercise of Remedies and Application of Proceeds.
Notwithstanding the provisions of Article 6 of the Indenture, so long as any
Finance Liability remains outstanding to more than one Secured Party, the
following provisions shall apply:

                  (a) If a Trigger Event shall have occurred and be continuing
(subject to the requirement that the Collateral Agent shall have received
written notice pursuant to Section 5.2(a)), upon the written request of the
Required Secured Parties, the Collateral Agent, on behalf of the Secured
Parties, shall give the Depositary Bank a written notice that a Trigger Event
has occurred (the date of such notice, the "Trigger Event Date") and direct the
Depositary Bank to render an accounting of the current balance of each
Depositary Account and of any other Monies of the Issuer, the Subsidiary
Guarantor and any Additional Guarantor administered by such Depositary Bank. No
Secured Party shall be deemed to have knowledge or notice of the occurrence of
any Event of Default until such Secured Party has received a written notice of
such Event of Default from the Issuer, the Subsidiary Guarantor, an Additional
Guarantor or any other Person for whom such Secured Party is acting as agent or
trustee.

                  (b) If a Trigger Event shall have occurred and be continuing
(subject to the requirement that the Collateral Agent shall have received
written notice pursuant to Section 5.2(a)), and only in such event, upon the
written request of the Required Secured Parties, the Collateral Agent shall be
authorized to take any and all actions and to exercise any and all rights,
remedies and options which it may have under the Security Documents or which the
Required Secured Parties direct it to take under this Agreement, including
realization and foreclosure on the Collateral; provided, however, that if a
bankruptcy event set forth in the Indenture, the Working Capital Facility or any
other Finance Document in respect of the Issuer, the Subsidiary Guarantor or any
Additional Guarantor has caused the Trigger Event, the

                                       27
<PAGE>   31
Collateral Agent shall automatically be authorized to take such action without
the written request of the Required Secured Parties.

                  (c) The proceeds of any sale, disposition or other realization
or foreclosure by the Collateral Agent upon the Collateral or any portion
thereof pursuant to the Security Documents shall be governed by this Section
5.3(c). Any non-cash proceeds resulting from such liquidation of the Collateral
shall be held by the Collateral Agent for the benefit of the Secured Parties
until later sold or otherwise converted into cash, at which time the Collateral
Agent shall apply such cash in accordance with the next sentence of this Section
5.3(c). The Collateral Agent shall transfer any cash proceeds net of expenses
resulting from liquidation of the Collateral to the Revenue Account from which
such proceeds shall be distributed by the Depositary Bank in accordance with the
terms and provisions of the Indenture in the following order of priority:

                  first, to the payment of (a) all reasonable costs and expenses
         relating to the sale of the Collateral and the collection of all
         amounts owing hereunder, including reasonable attorneys' fees and
         disbursements and the just compensation of the Collateral Agent for
         services rendered in connection therewith or in connection with any
         proceeding to sell if a sale is not completed, in each case whether
         arising hereunder or under the other Security Documents or other
         Finance Documents, (b) all charges, expenses and advances incurred or
         made by the Collateral Agent in order to protect the Liens of the
         Security Documents, the Security Interests in the Collateral or the
         security afforded thereby, and (c) all liabilities incurred by the
         Collateral Agent which are covered by the indemnity provisions of this
         Agreement or the other Security Documents or other Finance Documents
         together with interest at the rate per annum equal to the Post Default
         Rate;

                  second, to the payment to the Bond Trustee and the Working
         Capital Facility Agent for all fees and expenses due and owing under
         the applicable Finance Documents;

                  third, to the payment to the remaining Secured Parties not set
         forth in priority second, for all fees and expenses due and owing under
         the applicable Finance Documents;

                  fourth, to the payment to the Secured Parties (for the benefit
         of themselves and the lenders under the related Finance Documents, as
         applica-

                                       28
<PAGE>   32
     ble) of the sum of accrued and unpaid interest on the Bonds, the Working
     Capital Facility and any other Secured Obligations and on any commitment
     fees, pro rata in accordance with the respective amounts of unpaid interest
     and commitment fees owed to such Person to be applied by each such Person
     in accordance with the related Finance Documents pursuant to which such
     unpaid interest is payable;

             fifth, to the payment to the Secured Parties (for the benefit of
     themselves and the lenders under the related Finance Documents, as
     applicable) of principal owed to the Secured Parties (for the benefit of
     themselves and the lenders under the related Finance Documents, as
     applicable), respectively, hereunder or under any other Finance Document,
     pro rata, in accordance with the respective amounts of principal owed to
     such Person to be applied by each such Person in accordance with the
     related Finance Documents pursuant to which such principal is payable;

             sixth, to the payment to the Secured Parties (for the benefit of
     themselves and the lenders under the related Finance Documents, as
     applicable) of make-whole premiums, if any, and breakage costs, if any,
     owed to the Secured Parties (for the benefit of themselves and the lenders
     under the related Finance Documents, as applicable) respectively, hereunder
     or under any other Finance Document, pro rata, in accordance with the
     respective amounts of make-whole premiums and breakage costs owed to such
     Person to be applied by each such Person in accordance with the related
     Finance Documents pursuant to which such make-whole premiums and breakage
     costs are payable;

             seventh, to the payment to the Secured Parties (for the benefit of
     themselves and the lenders under the related Finance Documents, as
     applicable), of the other Secured Obligations owed to the Secured Parties
     (for the benefit of themselves and the lenders under the related Finance
     Documents, as applicable), respectively, hereunder or under any Finance
     Document, pro rata in accordance with the respective outstanding unpaid
     fees, charges and other unpaid Secured Obligations, owed to such Person to
     be applied by each such Person in accordance with the related Finance
     Document pursuant to which such Secured Obligations were incurred; and

             finally, to the payment to the Issuer, or its successors or
     assigns, or as a court of competent jurisdiction may direct, of any surplus
     then remaining.

                                       29
<PAGE>   33
                  (d) The proceeds of any sale, disposition or other realization
 with respect to Collateral held for the benefit of some but not all of the
 Secured Parties, if applicable, shall be applied to the payment of obligations
 owed to the parties for whose benefit the specific Collateral was held.

                  Section 5.4 Receipt of Money or Proceeds. The Secured Parties
 and the Depositary Bank hereby agree that if, at any time during the term of
 this Agreement, any Secured Party receives any payment or distribution of
 assets of the Issuer, the Subsidiary Guarantor or an Additional Guarantor of
 any kind or character, whether monies or cash proceeds, resulting from
 liquidation of the Collateral, other than in accordance with the terms of this
 Agreement, the Working Capital Facility and the Indenture, the Secured Party
 shall hold such payment or distribution in trust for the benefit of the Secured
 Parties and shall immediately remit such payment or distribution to the
 Depositary Bank and the Depositary Bank shall deposit such monies or proceeds
 in the Revenue Fund for application or distribution, as the case may be, in
 accordance with the terms of the Indenture, the Working Capital Facility and
 this Agreement. If any Secured Party shall certify in writing to the Collateral
 Agent that any Permitted Indebtedness in respect of which such Secured Party is
 the trustee or agent has not been paid when due and after the giving of any
 applicable notice or the passage of any applicable grace period (such amount
 referred to herein as "Arrearages"), then in any such event, and upon the
 written request of such Secured Party, the Collateral Agent shall make demand
 for payment of such Arrearages where such demand may be made by the terms
 thereof.

                  Section 5.5 Additional Secured Parties. The Issuer and the
 Subsidiary Guarantor shall cause each Person replacing any of the Secured
 Parties and each Person (or trustee or agent thereof) providing Permitted
 Indebtedness to the Issuer, the Subsidiary Guarantor or any Additional
 Guarantor that is to be secured by all or any portion of the Collateral to
 execute a Designation Letter, and upon such execution, such Person shall become
 a party to this Agreement, and any Person which executes and delivers a
 counterpart to this Agreement or is designated as a Secured Party pursuant to
 the terms of a Designation Letter, shall become a party hereto and shall be
 bound by and subject to the terms and conditions hereof and the covenants,
 stipulations and agreements contained herein.

                  Section 5.6 Event of Loss; Title Event. (a) If an Event of
Loss or Title Event shall occur with respect to the Project, the Issuer and/or
the Subsidiary Guarantor, as the case may be, shall (i) diligently pursue all of
its rights to compensation against the appropriate Person, as the case may be,
in respect of such

                                       30
<PAGE>   34
Event of Loss or Title Event, (ii) compromise, settle or consent to the
settlement of any claim against the appropriate Person, as the case may be, and
(iii) deposit any Loss Proceeds from such Event of Loss or proceeds from such
Title Event, as the case may be, after deducting all reasonable expenses
incurred by it in litigating, arbitrating, compromising, settling or consenting
to the settlement of any claims against the appropriate Person into the Revenue
Account pursuant to Section 6.5 of the Indenture.

                  (b) If an Event of Loss shall occur, as soon as reasonably
         practicable, but no later than fifteen (15) days after the date of
         receipt by the Issuer and/or the Subsidiary Guarantor (or the
         Collateral Agent on their behalf) of Loss Proceeds, the Issuer and/or
         the Subsidiary Guarantor (or the Collateral Agent on their behalf), as
         the case may be, shall make a reasonable good faith determination as to
         whether the property affected by such Event of Loss can be rebuilt,
         repaired or restored.

                  (c) If (x) an Event of Loss occurs and the Issuer and/or the
         Subsidiary Guarantor has either (i) determined that the property
         affected by such Event of Loss cannot be repaired, rebuilt or replaced
         or (ii) decided not to repair, rebuild or replace the property affected
         by such Event of Loss and (y) Loss Proceeds exceed $10,000,000, all
         Loss Proceeds in excess of $10,000,000 shall be distributed pro rata
         among the Secured Parties; provided that the pro rata share of Loss
         Proceeds owing to holders of Outstanding Bonds will be applied to a pro
         rata redemption of the Bonds in accordance with Section 3.2 of the
         Indenture.

                  (d) In the event that the Issuer and/or the Subsidiary
         Guarantor has determined that the property affected by the Event of
         Loss be repaired, rebuilt or replaced and the amount of the Loss
         Proceeds remaining after the payment of the actual total cost of such
         repair, rebuilding or replacement exceeds $5,000,000, the amount by
         which all the Loss Proceeds exceeds the actual total cost of such
         repair, rebuilding or replacement of the property affected by the Event
         of Loss which is in excess of $5,000,000, shall be distributed pro rata
         among the Secured Parties; provided that the pro rata share of Loss
         Proceeds owing to holders of Outstanding Bonds will be applied to a pro
         rata redemption of the Bonds in accordance with Section 3.2 of the
         Indenture.

                                       31
<PAGE>   35
                                    ARTICLE 6

                                  MISCELLANEOUS

                  Section 6.1 Amendments. No amendment or waiver of any
provision of this Agreement shall be effective unless the same shall be in
writing and signed by each of the Secured Parties, the Issuer, the Subsidiary
Guarantor and all other parties hereto, which consents from all such parties
shall not be unreasonably withheld, and any such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
it is given. No failure to exercise, and no delay in exercising, any right,
power or privilege hereunder, shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, power or privilege hereunder preclude
or require any other or future exercise thereof or the exercise of any other
right, power or privilege. All rights, powers and remedies granted to any party
hereto and all other agreements, instruments and documents executed in
connection with this Agreement shall be cumulative, may be exercised singly or
concurrently and shall not be exclusive of any rights or remedies provided by
law. The Collateral Agent may, but shall not be obligated to, execute and
deliver any supplement, modification or amendment of this Agreement which
modifies its rights, powers, duties, immunities or indemnities hereunder. In
executing any supplement, modification or amendment to this Agreement, the
Collateral Agent shall be entitled to receive and shall be fully protected in
relying upon, an opinion of counsel stating that the execution of such
supplement, modification or amendment is authorized or permitted by this
Agreement.

                  Section 6.2 Assignment. Any Secured Party may at any time
assign, transfer, grant or sell participations in its rights and interests under
the Security Documents, subject, however, to the restrictions imposed on the
assignment, transfer, grant or sale of participation in the Secured Obligations
owing to such Secured Party pursuant to the agreement giving rise to such
Secured Obligations or any other agreement relating thereto. In the event of any
such assignment or transfer, the term "Secured Party" as used in this Agreement
shall be deemed to mean any such assignee or transferee, as the case may be.
Notwithstanding anything above to the contrary, no assignment nor transfer may
be made by the Issuer, the Subsidiary Guarantor nor any Additional Guarantor
without the prior written consent of the Collateral Agent, acting pursuant to
the provisions of this Agreement.

                                       32
<PAGE>   36
                  Section 6.3 Severability. In case any provision in or
obligation under this Agreement shall be invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions contained herein shall not in any way be affected and/or impaired
thereby.

                  Section 6.4 Notices. Except as otherwise expressly provided
herein, (a) all notices and other communications provided for hereunder shall be
provided in writing (including telegraphic, telex, facsimile or cable
communication) and shall be sent by telecopy, telex, telegraph or cable with the
original of such communication dispatched by (if inland) overnight or (if
overseas) international courier and, if such courier service is not available,
by registered airmail (or, if inland, registered first-class mail) with postage
prepaid to the Issuer, the Subsidiary Guarantor, any Additional Guarantor, the
Secured Parties, the Depositary Bank and the Collateral Agent at their
respective addresses specified on Schedule III to the Indenture or Section 10.01
of the Working Capital Facility or in any Designation Letter, or at such other
address as shall be designated by such Person in a written notice to the other
parties hereto and (b) all such notices and communications shall, when mailed,
telegraphed, telexed, telecopied, cabled or sent by overnight courier, be
effective seven (7) days after being deposited in the mail in the manner as
aforesaid, when delivered to the telegraph company or cable company (if inland),
one (1) day or (if overseas) three (3) days after delivery to a courier in the
manner as aforesaid, as the case may be, or when sent by telex (with the correct
answer back) or telecopier (after confirmation of receipt).

                  Section 6.5 Successors and Assigns. All of the covenants,
promises and agreements in this Agreement by or on behalf of the respective
parties hereto shall bind and inure to the benefit of their respective
successors and assigns, regardless of whether so expressed.

                  Section 6.6 Counterparts. This Agreement may be executed in
any number of counterparts, all of which, taken together, shall constitute one
and the same instrument and any of the parties hereto may execute this Agreement
by signing any such counterpart.

                  Section 6.7 Governing Law; Submission to Jurisdiction; Waiver
of Jury Trial. (a) THIS AGREEMENT IS A CONTRACT MADE UNDER THE LAWS OF THE STATE
OF NEW YORK OF THE UNITED STATES AND SHALL FOR ALL PURPOSES BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF SUCH STATE WITHOUT REGARD TO

                                       33
<PAGE>   37
THE CONFLICT OF LAW RULES THEREOF (OTHER THAN SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW).

                  (b) Any legal action or proceeding against the Issuer, the
Subsidiary Guarantor or an Additional Guarantor with respect to this Agreement
or any other Finance Document may be brought in the courts of the State of New
York in the County of New York or of the United States for the Southern District
of New York and, by execution and delivery of this Agreement, the Issuer and the
Subsidiary Guarantor each hereby irrevocably submits and accepts for itself and
in respect of its property, generally and unconditionally, the jurisdiction of
the aforesaid courts. The Issuer and the Subsidiary Guarantor agree that a
judgment in connection with this Agreement, after exhaustion of all available
appeals, in any such action or proceeding shall be conclusive and binding upon
the Issuer, the Subsidiary Guarantor and an Additional Guarantor, as the case
may be. The Issuer and the Subsidiary Guarantor each hereby irrevocably
designates, appoints and empowers CT Corporation System with offices on the date
hereof at 111 Eighth Avenue, New York, N.Y. 10011, as its designee, appointee
and agent to receive, accept and acknowledge for and on its behalf, and in
respect of its property, service of any and all legal process, summons, notice
and documents which may be served in any such action or proceeding. If for any
reason such designee, appointee and agent shall cease to be available to act as
such agent, the Issuer and the Subsidiary Guarantor each agrees to designate a
new designee, appointee and agent in New York City on the terms and for the
purposes of this provision satisfactory to the Collateral Agent. The Issuer and
the Subsidiary Guarantor each further irrevocably consents to the service of
process out of any of the aforementioned courts in any such action or proceeding
by the mailing of copies thereof by registered or certified mail, postage
prepaid, to the Issuer, the Subsidiary Guarantor or any Additional Guarantor, as
the case may be, at their respective address referred to in Section 6.4, such
service to become effective thirty (30) days after such mailing. Nothing herein
shall affect the right of any Secured Party or any other Person to serve process
in any other manner permitted by law or to commence legal proceedings or
otherwise proceed against the Issuer, the Subsidiary Guarantor or an Additional
Guarantor in any other jurisdiction.

                  (c) The Issuer and the Subsidiary Guarantor each hereby
 irrevocably waives any objection which it may now or hereafter have to the
 laying of venue of any of the aforesaid actions or proceedings arising out of
 or in connection with this Agreement in the courts referred to in clause (b)
 above and hereby further irrevocably waives and agrees not to plead or claim in
 any such court that any such

                                       34
<PAGE>   38
action or proceeding brought in any such court has been brought in an
inconvenient forum.

                  (d) WITH REGARD TO THIS AGREEMENT, EACH PARTY HERETO HEREBY
WAIVES THE RIGHT TO A TRIAL BY JURY.

                  Section 6.8 No Impairments of Other Rights. Nothing in this
Agreement is intended or shall be construed to impair, diminish or otherwise
adversely affect any other rights the Secured Parties may have or may obtain
against the Issuer, the Subsidiary Guarantor or any Additional Guarantor.

                  Section 6.9 Headings. Headings herein are for convenience only
and shall not be relied upon in interpreting or enforcing this Agreement.

                  Section 6.10 Termination. This Agreement shall remain in full
force and effect until the Debt Termination Date. Following the Debt Termination
Date or the resignation or removal of the Collateral Agent, Sections 2.4(a) and
(b) and Sections 3.5(a) and (b) shall remain in full force and effect.

                  Section 6.11 Entire Agreement. This Agreement, including the
documents referred to herein, embodies the entire agreement and understanding of
the parties hereto and supersedes all prior agreements and understandings of the
parties hereto relating to the subject matter herein contained.

                  Section 6.12 Execution in Lieu of Agent. To the extent that
any lenders under the Working Capital Facility or holders of Permitted
Indebtedness incurred subsequent to the date hereof are not represented by an
agent that is a party to this Agreement, such lender under the Working Capital
Facility or holder of such Permitted Indebtedness shall be permitted to execute
this Agreement and the Designation Letter on its own behalf in lieu of any agent
on its behalf.

                  Section 6.13 Conflicts with Other Security Documents.
 Notwithstanding any provision hereof, in the event of any conflict between the
 terms of this Agreement and the other Security Documents (other than the
 Indenture), the provisions of this Agreement shall control.

                  Section 6.14 Scope of Duties; Limits on Liability. Without
limiting any other provision hereof, the duties and obligations of the
Collateral Agent shall be determined solely by the express provisions of this
Agreement; the Collateral Agent

                                       35
<PAGE>   39
shall not be liable except for the performance of such duties and obligations as
are specifically set forth herein. Anything in this Agreement to the contrary
notwithstanding, in no event shall the Collateral Agent be liable for special,
indirect or consequential loss or damage of any kind whatsoever (including but
not limited to lost profits), even if the Collateral Agent has been advised of
the likelihood of such loss or damage and regardless of the form of action.

                  Section 6.15 Notice of Adverse Claim. Except for the claims
and interest of the Secured Parties in the Depositary Accounts, the Collateral
Agent does not know of any claim to, or interest in, the Depositary Accounts or
in any "financial asset" (as defined in Section 8-102(a) of the UCC) credited
thereto. If any person asserts any lien, encumbrance or adverse claim (including
any writ, garnishment, judgment, warrant of attachment, execution or similar
process) against the Depositary Accounts or in any financial asset carried
therein, the Collateral Agent will promptly notify the Secured Parties, the
Issuer, the Subsidiary Guarantor and any Additional Guarantor thereof.

                                       36
<PAGE>   40
                  IN WITNESS WHEREOF, the undersigned have caused this Agreement
to be duly executed by their duly authorized officers, all as of the date first
written above.

                              NRG SOUTH CENTRAL GENERATING LLC

                              By: /s/ Craig A. Matczynski
                                 ---------------------------------
                              Name: Craig A. Matczynski
                              Title: President

                              LOUISIANA GENERATING LLC

                              By: /s/ Craig A. Matczynski
                                 ---------------------------------
                              Name: Craig A. Matczynski
                              Title: Vice President

                              THE CHASE MANHATTAN BANK, as Bond Trustee

                              By: /s/ Annette M. Marsula
                                 ---------------------------------
                              Name: Annette M. Marsula
                              Title: Vice President

                              THE CHASE MANHATTAN BANK, as Collateral Agent

                              By: /s/ Annette M. Marsula
                                 ---------------------------------
                              Name: Annette M. Marsula
                              Title: Vice President

                                       37
<PAGE>   41
                              THE CHASE MANHATTAN BANK,
                              as the Depositary Bank

                              By: /s/ Annette M. Marsula
                                 ---------------------------------
                              Name: Annette M. Marsula
                              Title: Vice President

                                       38
<PAGE>   42
                                                                Exhibit A to the
                                                         Intercreditor Agreement

                           [FORM OF DESIGNATION LETTER]

                                                                [Date]

[Collateral Agent]

                  Re: NRG South Central Generating LLC

Ladies and Gentlemen:

                  Reference is made to (i) the Collateral Agency and
Intercreditor Agreement (the "Intercreditor Agreement") dated as of March 30,
2000 among NRG South Central Generating LLC (the "Issuer"), Louisiana Generating
LLC (the "Subsidiary Guarantor"), the Bond Trustee, the Depositary Bank, the
Collateral Agent and any trustees or agents under any other Finance Documents
and (ii) [Describe New Credit Documents]. Capitalized terms used herein and not
defined herein shall have the meanings set forth in Appendix A to the Indenture
(the "Indenture") dated as of March 30, 2000 between the Issuer, the Subsidiary
Guarantor and the Bond Trustee.

                  The undersigned is the [Bank/Lender][agent for the [Banks]
[Lenders]] under the [New Credit Document].

                  The undersigned is delivering this Designation Letter pursuant
to Section 5.5 of the Intercreditor Agreement in order to permit the undersigned
[and the [Banks][Lenders] under the New Credit Document] to become Secured
Parties under the Intercreditor Agreement and the other Finance Documents and to
benefit from the Collateral under the Finance Documents in accordance with the
terms of the Intercreditor Agreement and the other Finance Documents.

                  The undersigned [on behalf of itself and the [Banks][Lenders]]
accedes to and agrees to be bound by all of the terms and provisions of the
<PAGE>   43
Intercreditor Agreement and the other Finance Documents. In furtherance thereof,
the undersigned [on behalf of itself and the [Banks][Lenders] agrees to execute
a counterpart of the Intercreditor Agreement.

                  Our address for notices is:

                              [Insert Information]

                  Our wire transfer instructions are:

                              [Insert Information]

                  We agree that any extensions of credit under the [New Credit
Documents] shall be deposited with the Depositary Bank, to the extent required
by Section 6.5 of the Indenture.

                  This Designation Letter may be executed in any number of
counterparts, each executed counterpart constituting an original but all
counterparts together constituting only one instrument.

                  THIS DESIGNATION LETTER SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICT
OF LAW RULES THEREOF (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW).

                                   [CREDITOR]

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

Consented to by:

-------------------,
as Collateral Agent

                                   Exhibit A-2
<PAGE>   44
By:
   ---------------------
   Name:
   Title:

                                 Exhibit A-3
<PAGE>   45
                                                                Exhibit B to the
                                                         Intercreditor Agreement

               [FORM OF DESIGNATION LETTER (ADDITIONAL GUARANTOR)]

                                     [Date]

[Collateral Agent]

[Issuer]

               Re: NRG South Central Generating LLC

 Ladies and Gentlemen:

               Reference is made to (i) the Collateral Agency and Intercreditor
Agreement (the "Intercreditor Agreement") dated as of March 30, 2000 among NRG
South Central Generating LLC (the "Issuer"), Louisiana Generating LLC (the
"Subsidiary Guarantor"), the Bond Trustee, the Depositary Bank, the Collateral
Agent and any trustees or agents under any other Finance Documents and (ii)
[Describe New Credit Documents]. Capitalized terms used herein and not defined
herein shall have the meanings set forth in Appendix A to the Indenture (the
"Indenture") dated as of March 30, 2000 between the Issuer, the Subsidiary
Guarantor and the Bond Trustee.

               The undersigned is an Additional Guarantor pursuant to the
Indenture.

               The undersigned is delivering this Designation Letter pursuant to
Section 2.11 of the Intercreditor Agreement in order to permit the undersigned
to become an Additional Guarantor under the Intercreditor Agreement.

                  By executing this letter, the undersigned shall be deemed to
be an Additional Guarantor (as defined in the Indenture) and accedes to and
agrees to be bound by all of the terms and provisions of the Intercreditor
Agreement relating to the Subsidiary Guarantor. All obligations of the
Subsidiary Guarantor under the Intercreditor Agreement shall be deemed to be the
obligations of the undersigned. In
<PAGE>   46
furtherance thereof, the undersigned agrees to execute a counterpart of the
Intercreditor Agreement.

                  Our address for notices is:

                              [Insert Information]

               This Designation Letter (Additional Guarantor) may be executed in
any number of counterparts, each executed counterpart constituting an original
but all counterparts together constituting only one instrument.

               THIS DESIGNATION LETTER (ADDITIONAL GUARANTOR) SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO THE CONFLICT OF LAW RULES THEREOF (OTHER THAN SECTION 5-1401 OF THE
NEW YORK GENERAL OBLIGATIONS LAW).

                                            [ADDITIONAL GUARANTOR]

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

Consented to by:

-----------------------------
as Collateral Agent

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

-----------------------------,
as Issuer

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

                                   Exhibit B-2

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