Document:

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                                                                   Exhibit 10.19

                                                                  EXECUTION COPY

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                       GUARANTEE AND COLLATERAL AGREEMENT

                                     made by

                              CALPINE CORPORATION,

                         QUINTANA MINERALS (USA), INC.,

                                JOQ CANADA, INC.

                                       and

                          QUINTANA CANADA HOLDINGS LLC

                                   in favor of

                              THE BANK OF NEW YORK,
                              as Collateral Trustee

                            Dated as of July 16, 2003

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                                TABLE OF CONTENTS

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SECTION 1.        DEFINED TERMS...................................................................................   2
         1.1      Definitions.....................................................................................   2
         1.2      Other Definitional Provisions...................................................................   4

SECTION 2.        GUARANTEE.......................................................................................   4
         2.1      Guarantee.......................................................................................   4
         2.2      Right of Contribution...........................................................................   5
         2.3      No Subrogation..................................................................................   5
         2.4      Amendments, etc. with respect to the Secured Obligations........................................   5
         2.5      Guarantee Absolute and Unconditional............................................................   6
         2.6      Reinstatement...................................................................................   6
         2.7      Payments........................................................................................   7

SECTION 3.        GRANT OF SECURITY INTEREST......................................................................   7

SECTION 4.        REPRESENTATIONS AND WARRANTIES..................................................................   8
         4.1      Title; No Other Liens...........................................................................   8
         4.2      Perfected First Priority Liens..................................................................   8
         4.3      Jurisdiction of Organization; Chief Executive Office............................................   9
         4.4      Inventory and Equipment.........................................................................   9
         4.5      Farm Products...................................................................................   9
         4.6      [Intentionally Omitted].........................................................................   9
         4.7      Receivables.....................................................................................   9
         4.8      Intellectual Property...........................................................................   9

SECTION 5.        COVENANTS.......................................................................................   9
         5.1      Delivery of Instruments, Certificated Securities and Chattel Paper..............................   9
         5.2      Maintenance of Insurance........................................................................   9
         5.3      Maintenance of Perfected Security Interest; Further Documentation..............................   10
         5.4      Changes in Locations, Name, etc................................................................   10
         5.5      [Intentionally Omitted]........................................................................   10

SECTION 6.        REMEDIAL PROVISIONS............................................................................   10
         6.1      Proceeds to be Turned Over To Collateral Trustee...............................................   10
         6.2      Application of Proceeds........................................................................   11
         6.3      Code and Other Remedies........................................................................   11
         6.4      Deficiency.....................................................................................   11

SECTION 7.        THE COLLATERAL TRUSTEE.........................................................................   11
         7.1      Duty of Collateral Trustee.....................................................................   11
         7.2      Execution of Financing Statements..............................................................   12
         7.3      Authority of Collateral Trustee................................................................   12

SECTION 8.        MISCELLANEOUS..................................................................................   12
         8.1      Amendments in Writing..........................................................................   12
         8.2      Notices........................................................................................   12
         8.3      No Waiver by Course of Conduct; Cumulative Remedies............................................   12
</TABLE>

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         8.4      Enforcement Expenses; Indemnification..........................................................   13
         8.5      Successors and Assigns.........................................................................   13
         8.6      Set-Off........................................................................................   13
         8.7      Counterparts...................................................................................   14
         8.8      Severability...................................................................................   14
         8.9      Section Headings...............................................................................   14
         8.10     Integration....................................................................................   14
         8.11     GOVERNING LAW..................................................................................   14
         8.12     Submission To Jurisdiction; Waivers............................................................   14
         8.13     Acknowledgements...............................................................................   15
         8.14     Additional Grantors............................................................................   15
         8.15     Releases; Termination..........................................................................   15
         8.16     WAIVER OF JURY TRIAL...........................................................................   15
</TABLE>

SCHEDULES

Schedule 1        Notice Addresses

Schedule 2        Perfection Matters

Schedule 3        Jurisdictions of Organization and Chief Executive Offices

Schedule 4A       Oil and Gas Inventory and Equipment Locations

Schedule 4B       Other Inventory and Equipment Locations

Schedule 5        Intellectual Property

                                       ii
<PAGE>

                       GUARANTEE AND COLLATERAL AGREEMENT

                  GUARANTEE AND COLLATERAL AGREEMENT, dated as of July 16, 2003,
made by Calpine Corporation (the "Company") and each of the signatories hereto
(together with the Company and any other entity that may become a party hereto
as provided herein, the "Grantors"), in favor of The Bank of New York, as
Collateral Trustee (in such capacity, the "Collateral Trustee") for the benefit
of the Secured Parties (as defined below).

                              W I T N E S S E T H:

                  WHEREAS, the Company intends to enter into an Amended and
Restated Credit Agreement dated as of July 16, 2003 (as amended, modified,
renewed, restated or replaced from time to time, the "Credit Agreement") among,
inter alia, the Company, the Lenders referred to therein and The Bank of Nova
Scotia, as Administrative Agent (the "Credit Agreement Agent"), relating to a
$500,000,000 senior secured credit facility to be made available in the form of
revolving loans and term loans, including letters of credit to be issued
thereunder;

                  WHEREAS, the Company intends to (a) issue $500,000,000 in
aggregate principal amount of Second Priority Senior Secured Floating Rate Notes
due 2007 (the "2007 Notes") pursuant to the Indenture dated as of July 16, 2003
(the "2007 Indenture") between the Company and Wilmington Trust Company, as
Trustee (together with its successors in such capacity, the "2007 Trustee"), (b)
issue $1,150,000,000 in aggregate principal amount of 8.50%% Second Priority
Senior Secured Notes due 2010 (the "2010 Notes") pursuant to the Indenture dated
as of July 16, 2003 (the "2010 Indenture") between the Company and Wilmington
Trust Company, as Trustee (together with its successors in such capacity, the
"2010 Trustee"), (c) issue $900,000,000 in aggregate principal amount of 8.75%
Second Priority Senior Secured Notes due 2013 (the "2013 Notes") pursuant to the
Indenture dated as of July 16, 2003 (the "2013 Indenture") between the Company
and Wilmington Trust Company, as Trustee (together with its successors in such
capacity, the "2013 Trustee"), and (d) borrow $750,000,000 in Term Loans (the
"Term Loans") pursuant to a Term Loan Agreement dated as of July 16, 2003 (the
"Term Loan Agreement") between the Company and Goldman Sachs Credit Partners
L.P., as Administrative Agent (together with its successors in such capacity,
the "Term Loan Administrative Agent");

                  WHEREAS, the Company intends to secure its Secured
Obligations, including its obligations under the Credit Agreement and any future
Priority Lien Debt, on a priority basis, and, subject to such priority, its
obligations under the 2007 Notes, 2010 Notes, 2013 Notes and Term Loans and any
future Parity Lien Debt equally and ratably, with security interests in, among
other things, all present and future Collateral (as defined below);

                  WHEREAS, the Company has entered into a Collateral Trust
Agreement dated as of July 16, 2003 (the "Collateral Trust Agreement") among,
inter alia, the Company, the other Grantors and the Collateral Trustee which
sets forth the terms on which the Company has appointed the Collateral Trustee
as trustee for the present and future holders of the Secured Obligations to
receive, hold, maintain, administer, enforce and distribute the Existing
Security Documents and all other Security Documents, including this Agreement
and the guarantees granted hereunder, at any time delivered to the Collateral
Trustee and all interests, rights, powers and remedies of the Collateral Trustee
thereunder and the proceeds thereof;

                  WHEREAS, the Company is a member of an affiliated group of
companies that includes each other Grantor;

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                                                                               2

                  WHEREAS, the proceeds of the extensions of credit under each
of the Credit Agreement and the Term Loan Agreement, and the proceeds of the
offering of each of the 2007 Notes, the 2010 Notes and the 2013 Notes, will be
used in part to enable the Company to make valuable transfers to one or more of
the other Grantors in connection with the operation of their respective
businesses;

                  WHEREAS, the Company and the other Grantors are engaged in
related businesses, and each Grantor will derive substantial direct and indirect
benefit from the making of the extensions of credit under each of the Credit
Agreement and the Term Loan Agreement and the offering of each of the 2007
Notes, 2010 Notes and 2013 Notes; and

                  WHEREAS, it is a condition precedent to the obligation of the
lenders to make their respective extensions of credit to the Company under each
of the Credit Agreement and the Term Loan Agreement, and condition precedent to
the obligation of the purchasers to purchase each of the 2007 Notes, the 2010
Notes and the 2013 Notes, that the Grantors shall have executed and delivered
this Agreement to the Collateral Trustee for the benefit of the Secured Parties;

                  NOW, THEREFORE, in consideration of the premises contained
herein and for good and valuable consideration the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

                            SECTION 1 DEFINED TERMS

         1.1      Definitions. (a)  Unless otherwise defined herein, terms
defined in the Collateral Trust Agreement and used herein shall have the
meanings given to them in the Collateral Trust Agreement, and the following
terms are used herein as defined in the New York UCC: Accounts, Certificated
Security, Chattel Paper, Commercial Tort Claims, Documents, Equipment, Farm
Products, General Intangibles, Instruments, Inventory, Letter-of-Credit Rights
and Supporting Obligations.

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

                  "Agreement": this Guarantee and Collateral Agreement, as the
same may be amended, supplemented or otherwise modified from time to time.

                  "Collateral": as defined in Section 3.

                  "Collateral Account": any collateral account established by
the Collateral Trustee as provided in Section 6.1.

                  "Copyrights": (i) all copyrights arising under the laws of the
United States, any other country or any political subdivision thereof, whether
registered or unregistered and whether published or unpublished (including,
without limitation, those listed in Schedule 5), all registrations and
recordings thereof, and all applications in connection therewith, including,
without limitation, all registrations, recordings and applications in the United
States Copyright Office, and (ii) the right to obtain all renewals thereof.

                  "Copyright Licenses": any written agreement naming the Company
as licensor or licensee (including, without limitation, those listed in Schedule
5), granting any right under any Copyright, including, without limitation, the
grant of rights to manufacture, distribute, exploit and sell materials derived
from any Copyright.

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                                                                               3

                  "Deposit Account": as defined in the Uniform Commercial Code
of any applicable jurisdiction and, in any event, including, without limitation,
any demand, time, savings, passbook or like account maintained with a depositary
institution.

                  "Guarantor Pledge Agreement": the First Amendment Pledge
Agreement dated as of July 16, 2003 among each of the Guarantors and the
Collateral Trustee.

                  "Guarantors": the collective reference to each Grantor other
than the Company.

                  "Intellectual Property": the collective reference to all
rights, priorities and privileges relating to intellectual property, whether
arising under United States, multinational or foreign laws or otherwise,
including, without limitation, the Copyrights, the Copyright Licenses, the
Patents, the Patent Licenses, the Trademarks and the Trademark Licenses, and all
rights to sue at law or in equity for any infringement or other impairment
thereof, including the right to receive all proceeds and damages therefrom.

                  "Investment Property": the collective reference to all
"investment property" as such term is defined in Section 9-102(a)(49) of the New
York UCC.

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

                  "Panda Note" means the note of Panda Energy International,
Inc. due December 2003 held by the Company.

                  "Patents": (i) all letters patent of the United States, any
other country or any political subdivision thereof, all reissues and extensions
thereof and all goodwill associated therewith, including, without limitation,
any of the foregoing referred to in Schedule 5, (ii) all applications for
letters patent of the United States or any other country and all divisions,
continuations and continuations-in-part thereof, including, without limitation,
any of the foregoing referred to in Schedule 5, and (iii) all rights to obtain
any reissues or extensions of the foregoing.

                  "Patent License": all agreements, whether written or oral,
providing for the grant by or to the Company of any right to manufacture, use or
sell any invention covered in whole or in part by a Patent, including, without
limitation, any of the foregoing referred to in Schedule 5.

                  "Proceeds": all "proceeds" as such term is defined in Section
9-102(a)(64) of the New York UCC and, in any event, shall include, without
limitation, all dividends or other income from the Investment Property,
collections thereon or distributions or payments with respect thereto.

                  "Receivable": any right to payment for goods sold or leased or
for services rendered, whether or not such right is evidenced by an Instrument
or Chattel Paper and whether or not it has been earned by performance
(including, without limitation, any Account).

                  "Secured Parity Lien Parties": any Person who is holding a
Parity Lien Obligation (including any Parity Debt Representative), at any time.

                  "Secured Parties": any Person who is holding a Secured
Obligation (including any Secured Debt Representative), at any time.

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                                                                               4

                  "Secured Priority Lien Parties": any Person who is holding a
Priority Lien Obligation (including any Priority Lien Agent), at any time.

                  "Trademarks": (i) all trademarks, trade names, corporate
names, company names, business names, fictitious business names, trade styles,
service marks, logos and other source or business identifiers, and all goodwill
associated therewith, now existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any other
country or any political subdivision thereof, or otherwise, and all common-law
rights related thereto, including, without limitation, any of the foregoing
referred to in Schedule 5, and (ii) the right to obtain all renewals thereof.

                  "Trademark License": any agreement, whether written or oral,
providing for the grant by or to the Company of any right to use any Trademark,
including, without limitation, any of the foregoing referred to in Schedule 5.

         1.2      Other Definitional Provisions. (a) The words "hereof,"
"herein", "hereto" and "hereunder" and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement, and Section and Schedule references are to this
Agreement unless otherwise specified.

         (b)      The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms.

         (c)      Where the context requires, terms relating to the Collateral
or any part thereof, when used in relation to the Company, shall refer to the
Company's Collateral or the relevant part thereof.

                              SECTION 2 GUARANTEE

         2.1      Guarantee. (a) The Guarantors hereby, jointly and severally,
unconditionally and irrevocably, guarantees to the Collateral Trustee, for the
benefit of the Secured Parties and their respective successors, indorsees,
transferees and assigns, the prompt and complete payment and performance by the
Company when due (whether at the stated maturity, by acceleration or otherwise)
of the Secured Obligations.

         (b)      Anything herein or in any other Secured Debt Document to the
contrary notwithstanding, (i) the recourse of the Collateral Trustee or the
Secured Parties against each Guarantor hereunder and under the other Secured
Debt Documents shall be limited solely to such Guarantor's ownership interests
in CCEC pledged to the Collateral Trustee, for the benefit of the Secured
Parties, pursuant to the Guarantor Pledge Agreement and (ii) the maximum
liability of each Guarantor hereunder and under the other Secured Debt Documents
shall in no event exceed the amount which can be guaranteed by such Guarantor
under applicable federal and state laws relating to the insolvency of debtors
(after giving effect to the right of contribution established in Section 2.2).

         (c)      Each Guarantor agrees that the Secured Obligations may at any
time and from time to time exceed the amount of the liability of such Guarantor
hereunder without impairing the guarantee contained in this Section 2 or
affecting the rights and remedies of the Collateral Trustee or any Secured Party
hereunder.

         (d)      The guarantee contained in this Section 2 shall remain in full
force and effect until all the Secured Obligations and the obligations of each
Guarantor under the guarantee contained in this Section 2

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                                                                               5

shall have been satisfied by payment in full and all commitments to extend
credit under all Credit Facilities the Indebtedness under which constitutes
Priority Lien Debt shall have been terminated or expired.

         (e)      No payment made by the Company, any of the Guarantors, any
other guarantor or any other Person or received or collected by the Collateral
Trustee or any Secured Party from the Company, any of the Guarantors, any other
guarantor or any other Person by virtue of any action or proceeding or any
set-off or appropriation or application at any time or from time to time in
reduction of or in payment of the Secured Obligations shall be deemed to modify,
reduce, release or otherwise affect the liability of any Guarantor hereunder
which shall, notwithstanding any such payment (other than any payment made by
such Guarantor in respect of the Secured Obligations or any payment received or
collected from such Guarantor in respect of the Secured Obligations), remain
liable for the Secured Obligations up to the maximum liability of such Guarantor
hereunder until the Secured Obligations are paid in full and all commitments to
extend credit under all Credit Facilities the Indebtedness under which
constitutes Priority Lien Debt shall have been terminated or expired.

         2.2      Right of Contribution. Each Guarantor hereby agrees that to
the extent that a Guarantor shall have paid more than its proportionate share of
any payment made hereunder, such Guarantor shall be entitled to seek and receive
contribution from and against any other Guarantor hereunder which has not paid
its proportionate share of such payment. Each Guarantor's right of contribution
shall be subject to the terms and conditions of Section 2.3. The provisions of
this Section 2.2 shall in no respect limit the obligations and liabilities of
any Guarantor to the Collateral Trustee and the Secured Parties, and each
Guarantor shall remain liable to the Collateral Trustee and the Secured Parties
for the full amount guaranteed by such Guarantor hereunder.

         2.3      No Subrogation. Notwithstanding any payment made by any
Guarantor hereunder or any set-off or application of funds of any Guarantor by
the Collateral Trustee or any Secured Party, no Guarantor shall be entitled to
be subrogated to any of the rights of the Collateral Trustee or any Secured
Party against the Company or any other Guarantor or any collateral security or
guarantee or right of offset held by the Collateral Trustee or any Secured Party
for the payment of the Secured Obligations, nor shall any Guarantor seek or be
entitled to seek any contribution or reimbursement from the Company or any other
Guarantor in respect of payments made by such Guarantor hereunder, until all
amounts owing to the Collateral Trustee and the Secured Parties by the Company
on account of the Secured Obligations are paid in full and all commitments to
extend credit under all Credit Facilities the Indebtedness under which
constitutes Priority Lien Debt shall have been terminated or expired. If any
amount shall be paid to any Guarantor on account of such subrogation rights at
any time when all of the Secured Obligations shall not have been paid in full,
such amount shall be held by such Guarantor in trust for the Collateral Trustee
and the Secured Parties, segregated from other funds of such Guarantor, and
shall, forthwith upon receipt by such Guarantor, be turned over to the
Collateral Trustee in the exact form received by such Guarantor (duly indorsed
by such Guarantor to the Collateral Trustee, if required), to be applied against
the Secured Obligations, whether matured or unmatured, in such order as the
Collateral Trustee may determine, subject to the terms and provisions of the
Collateral Trust Agreement.

         2.4      Amendments, etc. with respect to the Secured Obligations. Each
Guarantor shall remain obligated hereunder notwithstanding that, without any
reservation of rights against any Guarantor and without notice to or further
assent by any Guarantor, any demand for payment of any of the Secured
Obligations made by the Collateral Trustee or any Secured Party may be rescinded
by the Collateral Trustee or such Secured Party and any of the Secured
Obligations continued, and the Secured Obligations, or the liability of any
other Person upon or for any part thereof, or any collateral security or
guarantee therefor or right of offset with respect thereto, may, from time to
time, in whole or in part, be renewed, extended, amended, modified, accelerated,
compromised, waived, surrendered or released by

<PAGE>

                                                                               6

the Collateral Trustee or any Secured Party, and any of the Secured Debt
Documents may be amended, modified, supplemented or terminated, in whole or in
part, as the requisite parties thereto deem advisable from time to time, and any
collateral security, guarantee or right of offset at any time held by the
Collateral Trustee or any Secured Party for the payment of the Secured
Obligations may be sold, exchanged, waived, surrendered or released. Neither the
Collateral Trustee nor any Secured Party shall have any obligation to protect,
secure, perfect or insure any Lien at any time held by it as security for the
Secured Obligations or for the guarantee contained in this Section 2 or any
property subject thereto.

         2.5      Guarantee Absolute and Unconditional. Each Guarantor waives
any and all notice of the creation, renewal, extension or accrual of any of the
Secured Obligations and notice of or proof of reliance by the Collateral Trustee
or any Secured Party upon the guarantee contained in this Section 2 or
acceptance of the guarantee contained in this Section 2; the Secured
Obligations, and any of them, shall conclusively be deemed to have been created,
contracted or incurred, or renewed, extended, amended or waived, in reliance
upon the guarantee contained in this Section 2; and all dealings between the
Company and any of the Guarantors, on the one hand, and the Collateral Trustee
and the Secured Parties, on the other hand, likewise shall be conclusively
presumed to have been had or consummated in reliance upon the guarantee
contained in this Section 2. Each Guarantor waives diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon the
Company or any of the Guarantors with respect to the Secured Obligations. Each
Guarantor understands and agrees that the guarantee contained in this Section 2
shall be construed as a continuing, absolute and unconditional guarantee of
payment without regard to (a) the validity or enforceability of any of the
Secured Debt Documents, any of the Secured Obligations or any other collateral
security therefor or guarantee or right of offset with respect thereto at any
time or from time to time held by the Collateral Trustee or any Secured Party,
(b) any defense, set-off or counterclaim (other than a defense of payment or
performance) which may at any time be available to or be asserted by the Company
or any other Person against the Collateral Trustee or any Secured Party, or (c)
any other circumstance whatsoever (with or without notice to or knowledge of the
Company or such Guarantor) which constitutes, or might be construed to
constitute, an equitable or legal discharge of the Company for the Secured
Obligations, or of such Guarantor under the guarantee contained in this Section
2, in bankruptcy or in any other instance. When making any demand hereunder or
otherwise pursuing its rights and remedies hereunder against any Guarantor, the
Collateral Trustee or any Secured Party may, but shall be under no obligation
to, make a similar demand on or otherwise pursue such rights and remedies as it
may have against the Company, any other Guarantor or any other Person or against
any collateral security or guarantee for the Secured Obligations or any right of
offset with respect thereto, and any failure by the Collateral Trustee or any
Secured Party to make any such demand, to pursue such other rights or remedies
or to collect any payments from the Company, any other Guarantor or any other
Person or to realize upon any such collateral security or guarantee or to
exercise any such right of offset, or any release of the Company, any other
Guarantor or any other Person or any such collateral security, guarantee or
right of offset, shall not relieve any Guarantor of any obligation or liability
hereunder, and shall not impair or affect the rights and remedies, whether
express, implied or available as a matter of law, of the Collateral Trustee or
any Secured Party against any Guarantor. For the purposes hereof "demand" shall
include the commencement and continuance of any legal proceedings.

         2.6      Reinstatement. The guarantee contained in this Section 2 shall
continue to be effective, or be reinstated, as the case may be, if at any time
payment, or any part thereof, of any of the Secured Obligations is rescinded or
must otherwise be restored or returned by the Collateral Trustee or any Secured
Party upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Company or any Guarantor, or upon or as a result of the
appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for, the Company or any Guarantor or any substantial part of its
property, or otherwise, all as though such payments had not been made.

<PAGE>

                                                                               7

         2.7      Payments. Each Guarantor hereby guarantees that payments
hereunder will be paid to the Collateral Trustee without set-off or counterclaim
in Dollars at an office of the Collateral Trustee in the City of New York.

                           SECTION 3 GRANT OF SECURITY INTEREST

                  The Company hereby (i) assigns and transfers to the Collateral
Trustee, and hereby grants to the Collateral Trustee, for the benefit of the
Secured Priority Lien Parties, a first priority security interest in, all of the
following property now owned or at any time hereafter acquired by the Company or
in which the Company now has or at any time in the future may acquire any right,
title or interest, except the Excluded Assets (collectively, the "Collateral"),
as collateral security for the prompt and complete payment and performance when
due (whether at the stated maturity, by acceleration or otherwise) of the
Priority Lien Obligations and (ii) assigns and transfers to the Collateral
Trustee, and hereby grants to the Collateral Trustee, for the benefit of the
Secured Parity Lien Parties, a second priority security interest in, all of the
Collateral, as collateral security for the prompt and complete payment and
performance when due (whether at the stated maturity, by acceleration or
otherwise) of the Parity Lien Obligations:

         (a)      all Accounts;

         (b)      all Chattel Paper;

         (c)      all Contracts;

         (d)      all Deposit Accounts;

         (e)      all Documents;

         (f)      all Equipment;

         (g)      all General Intangibles;

         (h)      all Instruments;

         (i)      all Intellectual Property;

         (j)      all Inventory;

         (k)      all Investment Property;

         (l)      all Letter-of-Credit Rights;

         (m)      all other property not otherwise described above;

         (n)      all books and records pertaining to the Collateral; and

         (o)      to the extent not otherwise included, all Proceeds, Supporting
Obligations and products of any and all of the foregoing and all collateral
security and guarantees given by any Person with respect to any of the
foregoing;

<PAGE>

                                                                               8

                  provided, however, that notwithstanding any of the other
provisions set forth in this Section 3, this Agreement shall not, at any time,
constitute a grant of a security interest in any property that is, at such time,
an Excluded Asset.

                  In addition, notwithstanding any other provision set forth in
this Agreement, to the extent that any other Security Document to which the
Collateral Trustee is a party grants a security interest in any of the
Collateral and a security interest in such Collateral is also granted in this
Agreement and the provisions of such other Security Document are inconsistent
with the provisions of this Agreement with respect to such Collateral, the
provisions of such other Security Document shall control.

                  This Agreement and the security interests and Liens granted
and created herein secures the payment an performance of all Secured Obligations
of the Company now or hereafter, whether direct or indirect, absolute or
contingent, and whether for principal, reimbursement obligations, interest
(including any interest accruing at the then applicable rate provided in any
applicable Secured Debt Document after the maturity of the Indebtedness
thereunder and reimbursement obligations therein and interest accruing at the
then applicable rate provided in any applicable Secured Debt Document after the
filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to the Company, whether or not a
claim for post-filing or post-petition interest is allowed in such proceeding),
fees, premiums, penalties, indemnifications, expenses or otherwise, and
including all amounts that constitute part of the Secured Obligations and would
be owed by the Company but for the fact that they are unenforceable or not
allowed due to a pending Bankruptcy Case or Insolvency Proceeding. Without
limiting the generality of the foregoing, it is the intent of the parties that
(i) the Liens securing the Parity Lien Obligations are subject and subordinate
to the Liens securing the Priority Lien Obligations up to the Priority Lien Cap
and (ii) this Agreement creates two separate and distinct Liens: the first Lien
securing the payment and performance of the Priority Lien Obligations and the
second Lien securing the payment and performance of the Parity Lien Obligations.

                    SECTION 4 REPRESENTATIONS AND WARRANTIES

                  The Company hereby represents and warrants to the Collateral
Trustee and each Secured Party that:

         4.1      Title; No Other Liens. Except for the security interest
granted to the Collateral Trustee for the benefit of the Secured Parties
pursuant to this Agreement and the other Liens permitted to exist on the
Collateral by the Secured Debt Documents, the Company owns each item of the
Collateral free and clear of any and all Liens or claims of others. No financing
statement or other public notice with respect to all or any part of the
Collateral is on file or of record in any public office, except such as have
been filed in favor of the Collateral Trustee, for the benefit of the Secured
Parties, pursuant to this Agreement or as are permitted by each of the Secured
Debt Documents. For the avoidance of doubt, it is understood and agreed that the
Company may, as part of its business, grant licenses to third parties to use
Intellectual Property owned or developed by the Company. For purposes of this
Agreement and the other Secured Debt Documents, such licensing activity shall
not constitute a "Lien" on such Intellectual Property. Each of the Collateral
Trustee and each Secured Party understands that any such licenses may be
exclusive to the applicable licensees, and such exclusivity provisions may limit
the ability of the Collateral Trustee to utilize, sell, lease or transfer the
related Intellectual Property or otherwise realize value from such Intellectual
Property pursuant hereto.

         4.2      Perfected First Priority Liens. The security interests granted
pursuant to this Agreement (a) upon completion of the filings and other actions
specified on Schedule 2 (which, in the case of all filings and other documents
referred to on said Schedule, have been delivered to the Collateral Trustee in
completed and duly executed form) will constitute valid perfected security
interests in all of the Collateral

<PAGE>

                                                                               9

in favor of the Collateral Trustee, for the benefit of the Secured Parties, as
collateral security for the Secured Obligations, enforceable in accordance with
the terms hereof against all creditors of the Company and any Persons purporting
to purchase any Collateral from the Company and (b) are prior to all other Liens
on the Collateral in existence on the date hereof except for unrecorded Liens
permitted by the Secured Debt Documents which have priority over the Liens on
the Collateral by operation of law.

         4.3      Jurisdiction of Organization; Chief Executive Office. On the
date hereof, the Company's jurisdiction of organization, identification number
from the jurisdiction of organization (if any), and the location of the
Company's chief executive office or sole place of business or principal
residence, as the case may be, are specified on Schedule 3. The Company has
furnished to the Collateral Agent a certified charter, certificate of
incorporation or other organization document and long-form good standing
certificate as of a date which is recent to the date hereof.

         4.4      Inventory and Equipment. On the date hereof, (a) the Inventory
and the Equipment (other than mobile goods) representing natural gas and oil
assets (including any related extraction, processing or similar equipment, but
excluding natural gas power plants), in each case with a fair market value of
$1,000,000 or more, are kept at the locations listed on Schedule 4A and (b) the
Inventory and the Equipment (other than mobile goods and that Inventory and
Equipment described in clause (a) above), in each case with a fair market value
of $1,000,000 or more, are kept at the locations listed on Schedule 4B.

         4.5      Farm Products. None of the Collateral constitutes, or is the
Proceeds of, Farm Products.

         4.6      [Intentionally Omitted]

         4.7      Receivables. (a) No amount payable to the Company under or in
connection with any Receivable is evidenced by any Instrument or Chattel Paper
which has not been delivered to the Collateral Trustee (other than the Panda
Note).

         (b)      None of the obligors on any Receivables is a Governmental
Authority.

         4.8      Intellectual Property. Schedule 5 lists all material
Intellectual Property owned by the Company in its own name on the date hereof.

                              SECTION 5 COVENANTS

                  The Company covenants and agrees with the Collateral Trustee
and the Secured Parties that, from and after the date of this Agreement until
the Secured Obligations shall have been paid in full and all commitments to
extend credit under all Credit Facilities the Indebtedness under which
constitutes Priority Lien Debt shall have been terminated or expired:

         5.1      Delivery of Instruments, Certificated Securities and Chattel
Paper. If any amount payable under or in connection with any of the Collateral
shall be or become evidenced by any Instrument, Certificated Security or Chattel
Paper, such Instrument, Certificated Security or Chattel Paper shall be
immediately delivered to the Collateral Trustee, duly indorsed in a manner
satisfactory to the Collateral Trustee, to be held as Collateral pursuant to
this Agreement. The Company agrees to promptly (and in any event within 15 days
from the date hereof) deliver the Panda Note to the Collateral Trustee, duly
indorsed in a manner satisfactory to the Collateral Trustee, to be held as
Collateral pursuant to this Agreement.

         5.2      Maintenance of Insurance. (a) The Company will, and will cause
each of its Subsidiaries to, maintain or cause to be maintained, with
financially sound and reputable companies, insurance

<PAGE>

                                                                              10

policies insuring the Inventory and Equipment and other properties and business
(including business interruption insurance) of the Company and its Subsidiaries
against loss by fire, explosion, theft and such other casualties and
contingencies and of such types and in such amounts as is customary in the case
of similar businesses.

         (b)      As promptly as practicable after each year following the date
of this Agreement and beginning with 2004, and in any event prior to February 1
in each such year, the Company will furnish to the Collateral Trustee and each
Secured Debt Representative an Officers' Certificate setting forth the nature
and extent of all insurance maintained by the Company and its Subsidiaries.

         5.3      Maintenance of Perfected Security Interest; Further
Documentation. (a) The Company shall maintain the security interest created by
this Agreement as a perfected security interest having at least the priority
described in Section 4.2 and shall defend such security interest against the
claims and demands of all Persons whomsoever, subject to the rights of the
Company under the Secured Debt Documents to dispose of the Collateral and the
Lien release provisions in the Secured Debt Documents.

         (b)      The Company will promptly and duly execute and deliver, and
have recorded, such further instruments and documents and take such further
actions as necessary for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted,
including, without limitation, (i) filing any financing or continuation
statements under the Uniform Commercial Code (or other similar laws) in effect
in any jurisdiction with respect to the security interests created hereby and
(ii) in the case of Investment Property, Deposit Accounts, Letter-of-Credit
Rights and any other relevant Collateral, taking any actions necessary to enable
the Collateral Trustee to obtain "control" (within the meaning of the applicable
Uniform Commercial Code) with respect thereto.

         5.4      Changes in Locations, Name, etc. The Company will not, except
upon 15 days' prior written notice to the Collateral Trustee and each Secured
Debt Representative and delivery to the Collateral Trustee of (a) all additional
executed financing statements and other documents as necessary to maintain the
validity, perfection and priority of the security interests provided for herein
and (b) if applicable, a written supplement to Schedule 4 showing any additional
location at which Inventory or Equipment shall be kept:

         (i)      change its jurisdiction of organization or the location of its
chief executive office or sole place of business or principal residence from
that referred to in Section 4.3; or

         (ii)     change its name.

         5.5      [Intentionally Omitted]

                         SECTION 6. REMEDIAL PROVISIONS

         6.1      Proceeds to be Turned Over To Collateral Trustee. If an
Actionable Default shall occur and be continuing, all Proceeds received by the
Company consisting of cash, checks and other near-cash items shall be held by
the Company in trust for the Collateral Trustee and the Secured Parties,
segregated from other funds of the Company, and shall, forthwith upon receipt by
the Company, be turned over to the Collateral Trustee in the exact form received
by the Company (duly indorsed in blank by the Company or to the Collateral
Trustee, if required). All Proceeds of Collateral received by the Collateral
Trustee hereunder shall be held by the Collateral Trustee in a Collateral
Account maintained under its sole dominion and control or under the sole
dominion and control of the Credit Agreement Agent, acting as agent for the
Collateral Trustee. All Proceeds while held by the Collateral Trustee in a
Collateral Account (or by the Company in trust for the Collateral Trustee and
the Secured Parties) shall continue to be held as

<PAGE>

                                                                              11

collateral security for all the Secured Obligations and shall not constitute
payment thereof until applied as provided in Section 6.2.

         6.2      Application of Proceeds. If an Actionable Default shall have
occurred and be continuing, the Collateral Trustee may apply all or any part of
Proceeds constituting Collateral, whether or not held in any Collateral Account,
in payment of the Secured Obligations, in each case subject to the terms and
provisions of the Collateral Trust Agreement.

         6.3      Code and Other Remedies. If an Actionable Default shall occur
and be continuing, the Collateral Trustee, on behalf of the Secured Parties, may
exercise, in addition to all other rights and remedies granted to them in this
Agreement and in any other instrument or agreement securing, evidencing or
relating to the Secured Obligations, all rights and remedies of a secured party
under the New York UCC or any other applicable law, in each case subject to the
terms and provisions of the Collateral Trust Agreement. Without limiting the
generality of the foregoing, and in each case subject to the terms and
provisions of the Collateral Trust Agreement, the Collateral Trustee, without
demand of performance or other demand, presentment, protest, advertisement or
notice of any kind (except any notice required by law referred to below) to or
upon the Company or any other Person (all and each of which demands, defenses,
advertisements and notices are hereby waived), may in such circumstances
forthwith collect, receive, appropriate and realize upon the Collateral, or any
part thereof, and/or may forthwith sell, lease, assign, give option or options
to purchase, or otherwise dispose of and deliver the Collateral or any part
thereof (or contract to do any of the foregoing), in one or more parcels at
public or private sale or sales, at any exchange, broker's board or office of
the Collateral Trustee or any Secured Party or elsewhere upon such terms and
conditions as it may deem advisable and at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any credit risk.
The Collateral Trustee or any Secured Party shall have the right, but shall not
be obligated to, upon any such public sale or sales, and, to the extent
permitted by law, upon any such private sale or sales, to purchase the whole or
any part of the Collateral so sold, free of any right or equity of redemption in
the Company, which right or equity is hereby waived and released. The Company
further agrees, at the Collateral Trustee's request, to assemble the Collateral
and make it available to the Collateral Trustee at places which the Collateral
Trustee shall reasonably select, whether at the Company's premises or elsewhere.
The Collateral Trustee shall apply the net proceeds of any action taken by it
pursuant to this Section 6.3 in accordance with the provisions of the Collateral
Trust Agreement. To the extent permitted by applicable law, the Company waives
all claims, damages and demands it may acquire against the Collateral Trustee or
any Secured Party arising out of the exercise by them of any rights hereunder.
If any notice of a proposed sale or other disposition of Collateral shall be
required by law, such notice shall be deemed reasonable and proper if given at
least 10 days before such sale or other disposition.

         6.4      Deficiency. The Company shall remain liable for any deficiency
if the proceeds of any sale or other disposition of the Collateral are
insufficient to pay its Secured Obligations and the fees and disbursements of
any attorneys employed by the Collateral Trustee to collect such deficiency.

                       SECTION 7. THE COLLATERAL TRUSTEE

         7.1      Duty of Collateral Trustee. The Collateral Trustee's sole duty
with respect to the custody, safekeeping and physical preservation of the
Collateral in its possession, under Section 9-207 of the New York UCC or
otherwise, shall be to deal with it in the same manner as the Collateral Trustee
deals with similar property for its own account. Neither the Collateral Trustee,
any Secured Party nor any of their respective officers, directors, employees or
agents shall be liable for failure to demand, collect or realize upon any of the
Collateral or for any delay in doing so or shall be under any obligation to sell
or otherwise dispose of any Collateral upon the request of the Company or any
other Person or to take any other action whatsoever with regard to the
Collateral or any part thereof. The powers conferred on the

<PAGE>

                                                                              12

Collateral Trustee and the Secured Parties hereunder are solely to protect the
Collateral Trustee's and the Secured Parties' interests in the Collateral and
shall not impose any duties or obligations upon the Collateral Trustee or any
Secured Party to exercise any such powers. The Collateral Trustee and the
Secured Parties shall be accountable only for amounts that they actually receive
as a result of the exercise of such powers, and neither they nor any of their
officers, directors, employees or agents shall be responsible to the Company for
any act or failure to act hereunder, except for their own gross negligence or
willful misconduct.

                  Notwithstanding anything to the contrary contained in this
Agreement, the rights, privileges, powers, benefits and immunities of the
Collateral Trustee hereunder are subject to the terms, conditions and
limitations set forth in the Collateral Trust Agreement, reference to which is
made for all purposes; provided, however, that any forbearance by the Collateral
Trustee in exercising any right or remedy available to it under the Collateral
Trust Agreement shall not give rise to a defense on the part of the Grantors
with respect to the Collateral Trustee's exercise of any right or remedy
pursuant to this Agreement or as otherwise afforded by applicable law.

         7.2      Execution of Financing Statements. Pursuant to any applicable
law, the Company authorizes the Collateral Trustee to file or record financing
statements and other filing or recording documents or instruments with respect
to the Collateral without the signature of the Company in such form and in such
offices as are necessary to perfect the security interests of the Collateral
Trustee under this Agreement. The Company authorizes the Collateral Trustee to
use the collateral description "all personal property except for Excluded
Assets" in any such financing statements. The Company hereby ratifies and
authorizes the filing by the Collateral Trustee of any financing statement with
respect to the Collateral made prior to the date hereof. The Collateral Trustee
shall be under no obligation to file or record such financings statements or to
make any other filing under the UCC in connection with this Agreement.

         7.3      Authority of Collateral Trustee. The Company acknowledges that
the rights and responsibilities of the Collateral Trustee under this Agreement
with respect to any action taken by the Collateral Trustee or the exercise or
non-exercise by the Collateral Trustee of any option, voting right, request,
judgment or other right or remedy provided for herein or resulting or arising
out of this Agreement shall, as between the Collateral Trustee and the Secured
Parties, be governed by the Collateral Trust Agreement and by such other
agreements with respect thereto as may exist from time to time among them, but,
as between the Collateral Trustee and the Company, the Collateral Trustee shall
be conclusively presumed to be acting on behalf of the Secured Parties with full
and valid authority so to act or refrain from acting, and the Company shall not
be under any obligation, or entitlement, to make any inquiry respecting such
authority.

                            SECTION 8. MISCELLANEOUS

         8.1      Amendments in Writing. None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except in
accordance with Section 7.1 of the Collateral Trust Agreement.

         8.2      Notices. All notices, requests and demands to or upon the
Collateral Trustee, any Secured Debt Representative or the Company hereunder
shall be effected in the manner provided for in Section 7.5 of the Collateral
Trust Agreement; provided that any such notice, request or demand to or upon any
Guarantor shall be addressed to such Guarantor at its notice address set forth
on Schedule 1.

         8.3      No Waiver by Course of Conduct; Cumulative Remedies. Neither
the Collateral Trustee nor any Secured Party shall by any act (except by a
written instrument pursuant to Section 8.1), delay,

<PAGE>

                                                                              13

indulgence, omission or otherwise be deemed to have waived any right or remedy
hereunder or to have acquiesced in any Actionable Default. No failure to
exercise, nor any delay in exercising, on the part of the Collateral Trustee or
any Secured Party, any right, power or privilege hereunder shall operate as a
waiver thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. A waiver by the Collateral Trustee or
any Secured Party of any right or remedy hereunder on any one occasion shall not
be construed as a bar to any right or remedy which the Collateral Trustee or
such Secured Party would otherwise have on any future occasion. The rights and
remedies herein provided are cumulative, may be exercised singly or concurrently
and are not exclusive of any other rights or remedies provided by law.

         8.4      Enforcement Expenses; Indemnification. (a) The Guarantors
jointly and severally agree to pay or reimburse the Collateral Trustee for all
its costs and expenses incurred in collecting against such Guarantor under the
guarantee contained in Section 2 or otherwise enforcing or preserving any rights
under this Agreement and the other Secured Debt Documents to which such
Guarantor is a party, including, without limitation, the fees and disbursements
of counsel (including the allocated fees and expenses of in-house counsel) to
the Collateral Trustee.

         (b)      Each Guarantor agrees to pay, and to save the Collateral
Trustee harmless from, any and all liabilities with respect to, or resulting
from any delay in paying, any and all stamp, excise, sales or other taxes which
may be payable or determined to be payable in connection with any of the
transactions contemplated by this Agreement.

         (c)      Each Guarantor agrees to pay, and to save the Collateral
Trustee harmless from, any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever with respect to the execution, delivery, enforcement,
performance and administration of this Agreement to the extent the Company would
be required to do so pursuant to Section 7.7 of the Collateral Trust Agreement.

         (d)      The maximum liability of each Guarantor under this Section 8.4
shall be limited to such Guarantor's ownership interests in CCEC pledged to the
Collateral Trustee, for the benefit of the Secured Parties, pursuant to the
Guarantor Pledge Agreement. The agreements in this Section 8.4 shall survive
repayment of the Secured Obligations and all other amounts payable under the
Secured Debt Documents.

         8.5      Successors and Assigns. This Agreement shall be binding upon
the successors and assigns of each Grantor and shall inure to the benefit of the
Collateral Trustee and the Secured Parties and their successors and assigns;
provided that no Grantor may assign, transfer or delegate any of its rights or
obligations under this Agreement without the prior written consent of the
Collateral Trustee.

         8.6      Set-Off. Each Grantor hereby irrevocably authorizes the
Collateral Trustee at any time and from time to time while an Actionable Default
shall have occurred and be continuing, without notice to such Grantor or any
other Grantor, any such notice being expressly waived by each Grantor, to
set-off and appropriate and apply any and all deposits (general or special, time
or demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or
indirect, absolute or contingent, matured or unmatured, at any time held or
owing by the Collateral Trustee to or for the credit or the account of such
Grantor, or any part thereof in such amounts as the Collateral Trustee may
elect, against and on account of the obligations and liabilities of such Grantor
to the Collateral Trustee hereunder and claims of every nature and description
of the Collateral Trustee against such Grantor, in any currency, whether arising
hereunder or under any other Secured Debt Document or otherwise, as the
Collateral Trustee may elect, whether or not the Collateral Trustee has made any
demand for payment and although such obligations, liabilities and claims may be
contingent or unmatured. The Collateral Trustee shall notify such Grantor
promptly of any such set-off and the

<PAGE>

                                                                              14

application made by the Collateral Trustee of the proceeds thereof, provided
that the failure to give such notice shall not affect the validity of such
set-off and application. The rights of the Collateral Trustee under this Section
8.6 are in addition to other rights and remedies (including, without limitation,
other rights of set-off) which the Collateral Trustee may have.

         8.7      Counterparts. This Agreement may be executed by one or more of
the parties to this Agreement on any number of separate counterparts (including
by telecopy), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.

         8.8      Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

         8.9      Section Headings. The Section headings used in this Agreement
are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.

         8.10     Integration. This Agreement, the Collateral Trust Agreement
and the other Secured Debt Documents represent the agreement of the Grantors,
the Collateral Trustee and the Secured Parties with respect to the subject
matter hereof and thereof, and there are no promises, undertakings,
representations or warranties by the Collateral Trustee or any Secured Party
relative to subject matter hereof and thereof not expressly set forth or
referred to herein, the Collateral Trust Agreement or in the other Secured Debt
Documents.

         8.11     GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

         8.12     Submission To Jurisdiction; Waivers. Each Grantor hereby
irrevocably and unconditionally:

         (a)      submits for itself and its property in any legal action or
proceeding relating to this Agreement and the other Secured Debt Documents to
which it is a party, or for recognition and enforcement of any judgment in
respect thereof, to the non-exclusive general jurisdiction of the courts of the
State of New York, the courts of the United States of America for the Southern
District of New York, and appellate courts from any thereof;

         (b)      consents that any such action or proceeding may be brought in
such courts and waives any objection that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or claim
the same;

         (c)      agrees that service of process in any such action or
proceeding may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to such
Grantor at its address referred to in Section 8.2 or at such other address of
which the Collateral Trustee shall have been notified pursuant thereto;

         (d)      agrees that nothing herein shall affect the right to effect
service of process in any other manner permitted by law or shall limit the right
to sue in any other jurisdiction; and

<PAGE>

                                                                              15

         (e)      waives, to the maximum extent not prohibited by law, any right
it may have to claim or recover in any legal action or proceeding referred to in
this Section any special, exemplary, punitive or consequential damages.

         8.13     Acknowledgements. Each Grantor hereby acknowledges that:

         (a)      it has been advised by counsel in the negotiation, execution
and delivery of this Agreement and the other Secured Debt Documents to which it
is a party;

         (b)      neither the Collateral Trustee nor any Secured Party has any
fiduciary relationship with or duty to any Grantor arising out of or in
connection with this Agreement or any of the other Secured Debt Documents, and
the relationship between the Grantors, on the one hand, and the Collateral
Trustee and Secured Parties, on the other hand, in connection herewith or
therewith is solely that of debtor and creditor; and

         (c)      no joint venture is created hereby or by the other Secured
Debt Documents or otherwise exists by virtue of the transactions contemplated
hereby among the Secured Parties or among the Grantors and the Secured Parties.

         8.14     Additional Grantors. Each Subsidiary of the Company that is
required by any Secured Debt Document to become a party to this Agreement shall
become a Grantor for all purposes of this Agreement upon execution and delivery
by such Subsidiary of an Assumption Agreement in the form of Annex 1 hereto.

         8.15     Releases; Termination(a) . All or any portion of the
Collateral shall be released from the Liens created hereby, the Guarantee of any
Guarantor under this Agreement shall terminate and this Agreement shall
terminate, in each case as provided in Section 4.1 of the Collateral Trust
Agreement.

         8.16     WAIVER OF JURY TRIAL. EACH GRANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY OTHER SECURED DEBT DOCUMENT AND FOR ANY COUNTERCLAIM
THEREIN.

<PAGE>

                                                                              16

                  IN WITNESS WHEREOF, each of the undersigned has caused this
Guarantee and Collateral Agreement to be duly executed and delivered as of the
date first above written.

                                            CALPINE CORPORATION,

                                            By: /s/ Michael Thomas
                                                --------------------------------
                                                Title:

                                            QUINTANA MINERALS (USA), INC.,

                                            By: /s/ Michael Thomas
                                                --------------------------------
                                                Title:

                                            JOQ CANADA, INC.,

                                            By: /s/ Michael Thomas
                                                --------------------------------
                                                Title:

                                            QUINTANA CANADA HOLDINGS, LLC,

                                            By: /s/ Michael Thomas
                                                --------------------------------
                                                Title:

<PAGE>

                                                                              17

                                    THE BANK OF NEW YORK, as Collateral Trustee,

                                    By: /s/ Michael Pitfick
                                        ----------------------------------------
                                        Name: Michael Pitfick
                                        Title: Assistant Vice President

<PAGE>

                                                                      SCHEDULE 1

                         NOTICE ADDRESSES FOR GUARANTORS

QUINTANA MINERALS (USA), INC.
50 West San Fernando Street
San Jose, CA 95113

QUINTANA CANADA HOLDINGS, LLC
50 West San Fernando Street
San Jose, CA 95113

JOQ CANADA, INC.
50 West San Fernando Street
San Jose, CA 95113

<PAGE>

                                                                      SCHEDULE 2

                               PERFECTION MATTERS

A.       UCC-1 FINANCING STATEMENTS

UCC-1 FINANCING STATEMENTS AS TRANSMITTING UTILITY

            1) Delaware SOS

            2) California SOS

            3) Arkansas SOS

            4) Colorado SOS

            5) Mississippi SOS

            6) Montana SOS

            7) New Mexico SOS

            8) Oklahoma County Clerk, OK

            9) Texas SOS

            10) Wyoming SOS

UCC-1 FINANCING STATEMENT
      Delaware SOS

UCC- FIXTURE FILING AGAINST PROJECT FACILITY
     Richmond County, GA

UCC-3 ASSIGNMENTS FROM BANK OF NOVA SCOTIA, AS AGENT TO THE BANK OF NEW YORK, AS
COLLATERAL TRUSTEE

<TABLE>
-------------------------------------------------------------------------------------------------------
<S>                                            <C>                                            <C>
Delaware Secretary of State                            20678940                               3/15/2002
-------------------------------------------------------------------------------------------------------
Delaware Secretary of State                            21165863                               5/9/2002
-------------------------------------------------------------------------------------------------------
New Mexico Secretary of State                        2002050903023                            5/9/2002
-------------------------------------------------------------------------------------------------------
Garfield County, Colorado                          Reception #603031                          5/8/2002
                                                  Book 1353, Page 410
-------------------------------------------------------------------------------------------------------
Delaware Secretary of State                            21165871                               5/9/2002
-------------------------------------------------------------------------------------------------------
Jefferson Parish, LA                                   26262652                               5/7/2002
-------------------------------------------------------------------------------------------------------
Delaware Secretary of State                            21165913                               5/9/2002
-------------------------------------------------------------------------------------------------------
Colusa County, CA                                       02-2146                               5/17/2002
-------------------------------------------------------------------------------------------------------
Contra Costa County, CA                             2002-0170009-00                           5/13/2002
-------------------------------------------------------------------------------------------------------
Fresno County, CA                                    2002-0085594                             5/23/2002
-------------------------------------------------------------------------------------------------------
Kern County, CA                                       0202084537                              5/24/2002
-------------------------------------------------------------------------------------------------------
Kings County, CA                                        0210875                               5/20/2002
-------------------------------------------------------------------------------------------------------
Sacramento County, CA                          Book 20020507, Page 0614                       5/7/2002
-------------------------------------------------------------------------------------------------------
Solano County, CA                                    2002-00058870                            5/9/2002
-------------------------------------------------------------------------------------------------------
Sutter County, CA                                    2002-0009818                             5/17/2002
-------------------------------------------------------------------------------------------------------
Tulare County, CA                                    2002-0045392                             6/14/2002
-------------------------------------------------------------------------------------------------------
Yolo County, CA                                     2002-0019211-00                           5/7/2002
-------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                                                      SCHEDULE 3

                    LOCATION OF JURISDICTION OF ORGANIZATION

                   AND CHIEF EXECUTIVE OFFICE OF THE GRANTORS

<TABLE>
<CAPTION>
          Grantor                  Jurisdiction of Organization          Location of Chief Executive Office
          -------                  ----------------------------          ----------------------------------
<S>                                <C>                                   <C>
CALPINE CORPORATION                       DELAWARE                              SAN JOSE, CALIFORNIA

QUINTANA MINERALS (USA), INC.             DELAWARE                              SAN JOSE, CALIFORNIA

QUINTANA CANADA HOLDINGS, LLC             DELAWARE                              SAN JOSE, CALIFORNIA

JOQ CANADA, INC.                          DELAWARE                              SAN JOSE, CALIFORNIA
</TABLE>

<PAGE>

                                                                     SCHEDULE 4A

                        INVENTORY AND EQUIPMENT LOCATIONS

LOCATIONS OF OIL AND GAS INVENTORY AND EQUIPMENT:

[List of counties from Exhibit A to the Oil and Gas Mortgages]

<PAGE>

                                                                     SCHEDULE 4B

LOCATIONS OF OTHER INVENTORY AND EQUIPMENT:

1.  Goldendale Energy Center - Goldendale, Washington.

2.  Otay Mesa Energy Center - near San Diego, California.

3.  Metcalf Energy Center - near San Jose, California.

4.  Santa Rosa Energy Center - Santa Rosa County, Florida.

5.  Washington Parish Energy Center - near Bogalusa, Louisiana.

6.  Deer Park Energy Center - Deer Park, Texas.

7.  Augusta Energy Center - Augusta, Georgia.

<PAGE>

                                                                      SCHEDULE 5

                         MATERIAL INTELLECTUAL PROPERTY

                                      None.

<PAGE>

                                                                      Annex 1 to
                                              Guarantee and Collateral Agreement

                  ASSUMPTION AGREEMENT, dated as of ________________, 200_, made
by ______________________________ (the "Additional Grantor"), in favor of The
Bank of New York, as collateral trustee (in such capacity, the "Collateral
Trustee") for the Secured Parties. All capitalized terms not defined herein
shall have the meaning ascribed to them in the Collateral Trust Agreement.

                              W I T N E S S E T H :

                  WHEREAS, Calpine Corporation (the "Company"), certain of its
Subsidiaries and the Collateral Trustee have entered into a Collateral Trust
Agreement, dated as of July 16, 2003 (as amended, supplemented or otherwise
modified from time to time, the "Collateral Trust Agreement");

                  WHEREAS, in connection with the Collateral Trust Agreement,
the Company and certain of its Subsidiaries have entered into the Guarantee and
Collateral Agreement, dated as of July 16, 2003 (as amended, supplemented or
otherwise modified from time to time, the "Guarantee and Collateral Agreement")
in favor of the Collateral Trustee for the benefit of the Secured Parties;

                  WHEREAS, an applicable Secured Debt Document requires the
Additional Grantor to become a party to the Guarantee and Collateral Agreement;
and

                  WHEREAS, the Additional Grantor has agreed to execute and
deliver this Assumption Agreement in order to become a party to the Guarantee
and Collateral Agreement;

                  NOW, THEREFORE, IT IS AGREED:

                  1. Guarantee and Collateral Agreement. By executing and
delivering this Assumption Agreement, the Additional Grantor, as provided in
Section 8.14 of the Guarantee and Collateral Agreement, hereby becomes a party
to the Guarantee and Collateral Agreement as a Grantor thereunder with the same
force and effect as if originally named therein as a Grantor and, without
limiting the generality of the foregoing, hereby expressly assumes all
obligations and liabilities of a Grantor thereunder. The information set forth
in Annex 1-A hereto is hereby added to the information set forth in the
Schedules to the Guarantee and Collateral Agreement. The Additional Grantor
hereby represents and warrants that each of the representations and warranties
contained in Section 4 of the Guarantee and Collateral Agreement is true and
correct on and as the date hereof (after giving effect to this Assumption
Agreement) as if made on and as of such date.

                  2. GOVERNING LAW. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
NEW YORK.

<PAGE>

                                                                               2

                  IN WITNESS WHEREOF, the undersigned has caused this Assumption
Agreement to be duly executed and delivered as of the date first above written.

                                                     [ADDITIONAL GRANTOR]

                                                     By: _______________________
                                                         Name:
                                                         Title:

<PAGE>

                                                                    Annex 1-A to
                                                            Assumption Agreement

                            Supplement to Schedule 1

                            Supplement to Schedule 2

                            Supplement to Schedule 3

                            Supplement to Schedule 4

                            Supplement to Schedule 5<PAGE>

                                                                   Exhibit 10.20

                                                EXECUTION COPY
                                                Canadian Guarantors Stock Pledge

                        FIRST AMENDMENT PLEDGE AGREEMENT

         THIS FIRST AMENDMENT PLEDGE AGREEMENT (this "Pledge Agreement"), dated
as of July 16, 2003, made by Quintana Minerals (USA), Inc., a Delaware
corporation, JOQ Canada, Inc., a Delaware corporation, and Quintana Canada
Holdings, LLC, a Delaware limited liability company (each a "Pledgor" and
collectively, the "Pledgors") in favor of The Bank of New York, as Collateral
Trustee (together with any successor(s) thereto in such capacity, the
"Collateral Trustee") for the benefit of the Secured Parties.

                               W I T N E S S E T H

                  WHEREAS, Calpine Corporation (the "Company") intends to enter
into an Amended and Restated Credit Agreement dated as of July 16, 2003 (as
amended, modified, renewed, restated or replaced from time to time, the "Credit
Agreement") among, inter alia, the Company, the Lenders referred to therein and
The Bank of Nova Scotia, as Administrative Agent (the "Credit Agreement Agent"),
relating to a $500,000,000 senior secured credit facility to be made available
in the form of revolving loans and term loans, including letters of credit to be
issued thereunder;

                  WHEREAS, the Company intends to (a) issue $500,000,000 in
aggregate principal amount of Second Priority Senior Secured Floating Rate Notes
due 2007 (the "2007 Notes") pursuant to the Indenture dated as of July 16, 2003
(the "2007 Indenture") between the Company and Wilmington Trust Company, as
Trustee (together with its successors in such capacity, the "2007 Trustee"), (b)
issue $1,150,000,000 in aggregate principal amount of 8.50% Second Priority
Senior Secured Notes due 2010 (the "2010 Notes") pursuant to the Indenture dated
as of July 16, 2003 (the "2010 Indenture") between the Company and Wilmington
Trust Company, as Trustee (together with its successors in such capacity, the
"2010 Trustee"), (c) issue $900,000,000 in aggregate principal amount of 8.75%
Second Priority Senior Secured Notes due 2013 (the "2013 Notes") pursuant to the
Indenture dated as of July 16, 2003 (the "2013 Indenture") between the Company
and Wilmington Trust Company, as Trustee (together with its successors in such
capacity, the "2013 Trustee"), and (d) borrow $750,000,000 in Term Loans (the
"Term Loans") pursuant to a Term Loan Agreement dated as of July 16, 2003 (the
"Term Loan Agreement") between the Company and Goldman Sachs Credit Partners
L.P., as Administrative Agent (together with its successors in such capacity,
the "Term Loan Administrative Agent");

                  WHEREAS, the Pledgors intend to guarantee the Secured
Obligations of the Company on a limited basis and to secure their respective
Secured Obligations under such limited guarantees, including their respective
obligations under the Credit Agreement and any future Priority Lien Debt, on a
priority basis, and, subject to such priority, their respective obligations
under the 2007 Notes, 2010 Notes, 2013 Notes and Term Loans and any future
Parity Lien Debt equally and ratably, with security interests in, and pledge of,
among other things, all present and future Pledged Collateral (as defined
below);

<PAGE>

                  WHEREAS, the Company and the Pledgors have entered into a
Collateral Trust Agreement dated as of July 16, 2003 (the "Collateral Trust
Agreement") among, inter alia, the Company, the Pledgors and the Collateral
Trustee which sets forth the terms on which the Company and the Pledgors have
appointed the Collateral Trustee as trustee for the present and future holders
of the Secured Obligations to receive, hold, maintain, administer, enforce and
distribute the Existing Security Documents and all other Security Documents,
including this Pledge Agreement, at any time delivered to the Collateral Trustee
and all interests, rights, powers and remedies of the Collateral Trustee
thereunder and the proceeds thereof;

                  WHEREAS, the Company and the Pledgors will derive substantial
direct and indirect benefit from the making of the extensions of credit under
each of the Credit Agreement and the Term Loan Agreement and the offering of
each of the 2007 Notes, 2010 Notes and 2013 Notes;

                  WHEREAS, it is a condition precedent to the obligation of the
lenders to make their respective extensions of credit to the Company under each
of the Credit Agreement and the Term Loan Agreement, and condition precedent to
the obligation of the purchasers to purchase each of the 2007 Notes, the 2010
Notes and the 2013 Notes, that the Pledgors shall have executed and delivered
this Pledge Agreement to the Collateral Trustee for the benefit of the Secured
Parties; and

                  WHEREAS, this Pledge Agreement amends and restates in its
entirety the Pledge Agreement dated as of March 8, 2002 made by the Pledgors in
favor of The Bank of Nova Scotia, as agent;

         NOW, THEREFORE, in consideration of the premises contained herein and
for good and valuable consideration the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

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

         "Collateral Trustee" is defined in the preamble.

         "Collateral Trust Agreement" is defined in the recitals.

         "Company" is defined in the preamble.

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

                                       2
<PAGE>

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

         "Pledge Agreement" is defined in the preamble.

         "Pledged Collateral" is defined in Section 2.1.

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

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

         "Pledged Shares" means all shares of capital stock of any Pledged Share
Issuer which are delivered by a Pledgor to the Collateral Trustee as Pledged
Property hereunder.

         "Secured Parity Lien Parties" means any Person who is holding a Parity
Lien Obligation (including any Parity Debt Representative), at any time.

         "Secured Parties" means any Person who is holding a Secured Obligation
(including any Secured Debt Representative), at any time.

         "Secured Priority Lien Parties" means any Person who is holding a
Priority Lien Obligation (including any Priority Lien Agent), at any time.

         "Securities Act" is defined in Section 6.2.

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

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

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

                                   ARTICLE II
                                     PLEDGE

         SECTION 2.1.      Grant of Security Interest. Each Pledgor hereby (i)
pledges, hypothecates, assigns, charges, mortgages, delivers, and transfers to
the Collateral Trustee, for its benefit and the benefit of the Secured Priority
Lien Parties, and hereby grants to the Collateral

                                       3
<PAGE>

Trustee, for its benefit and the benefit of the Secured Priority Lien Parties, a
continuing first priority security interest in, all of the following property
(the "Pledged Collateral") and (ii) pledges, hypothecates, assigns, charges,
mortgages, delivers, and transfers to the Collateral Trustee, for its benefit
and the benefit of the Secured Parity Lien Parties, and hereby grants to the
Collateral Trustee, for its benefit and the benefit of the Secured Parity Lien
Parties, a continuing second priority security interest in, all of the Pledged
Collateral:

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

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

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

                  (d)      all proceeds of any of the foregoing;

provided, however, that in no event shall the Pledged Collateral constitute or
give rise to any rights or interests in excess of a 65% ownership interest in
the Pledged Share Issuer.

         SECTION 2.2.      Security for Obligations; Separate Liens. This Pledge
Agreement and the security interests and Liens granted and created herein
secures the payment and performance of all Secured Obligations of the Pledgors
now or hereafter, whether direct or indirect, absolute or contingent, and
whether for principal, reimbursement obligations, interest (including any
interest accruing at the then applicable rate provided in any applicable Secured
Debt Document after the maturity of the loans and reimbursement obligations
therein and interest accruing at the then applicable rate provided in any
applicable Secured Debt Document after the filing of any petition in bankruptcy,
or the commencement of any insolvency, reorganization or like proceeding,
relating to the Company, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding), fees, premiums, penalties,
indemnifications, expenses or otherwise, and including all amounts that
constitute part of the Secured Obligations and would be owed by the Pledgors but
for the fact that they are unenforceable or not allowed due to a pending
Bankruptcy Case or Insolvency Proceeding. Without limiting the generality of the
foregoing, it is the intent of the parties that (i) the Liens securing the
Parity Lien Obligations are subject and subordinate to the Liens securing the
Priority Lien Obligations up to the Priority Lien Cap and (ii) this Pledge
Agreement creates two separate and distinct Liens: the first Lien securing the
payment and performance of the Priority Lien Obligations and the second Lien
securing the payment and performance of the Parity Lien Obligations.

         SECTION 2.3.      Delivery of Pledged Property. All certificates or
instruments representing or evidencing any Pledged Collateral, including all
Pledged Shares, shall be delivered to and held by or on behalf of the Collateral
Trustee pursuant hereto, shall be in

                                       4
<PAGE>

suitable form for transfer by delivery, and shall be accompanied by all
necessary instruments of transfer or assignment, duly executed in blank.

         SECTION 2.4.      Intentionally Omitted.

         SECTION 2.5.      Continuing Security Interest; Transfer of Note. This
Pledge Agreement shall create a continuing security interest in the Pledged
Collateral and, subject to Section 4.1 of the Collateral Trust Agreement and the
other Secured Debt Documents, shall

                  (a)      remain in full force and effect until payment in full
         of all Secured Obligations and the termination or expiration of all
         commitments to extend credit under all Credit Facilities, the
         Indebtedness under which constitutes Priority Lien Debt,

                  (b)      be binding upon each Pledgor and its successors,
         transferees and assigns, and

                  (c)      inure, together with the rights and remedies of the
         Collateral Trustee hereunder, to the benefit of the Collateral Trustee
         and each other Secured Party.

Without limiting the foregoing clause (c), any Secured Party may assign or
otherwise transfer (in whole or in part) any right or obligation under the
Secured Debt Documents to any other Person or entity, and such other Person or
entity shall thereupon become vested with all the rights and benefits in respect
thereof granted to such Secured Party under any Secured Debt Document (including
this Pledge Agreement) or otherwise, subject, however, to any contrary
provisions in such assignment or transfer, and to the applicable provisions of
each of the Secured Debt Documents. Upon the payment in full and discharge of
all Secured Obligations that are then outstanding, due and payable and the
termination or expiration of all commitments to extend credit under all Credit
Facilities, the Indebtedness under which constitutes Priority Lien Debt, the
security interest granted herein shall terminate and all rights to the Pledged
Collateral shall revert to the Pledgors. Upon any such termination or any
release of the Lien provided for hereunder in accordance with the Secured Debt
Documents, the Collateral Trustee will, at the Pledgors' sole expense, deliver
to the Pledgors, without any representations, warranties or recourse of any kind
whatsoever, all certificates and instruments representing or evidencing all
Pledged Shares, together with all other Pledged Collateral held by the
Collateral Trustee hereunder, and execute and deliver to each Pledgor such
documents as the Pledgors shall reasonably request to evidence such termination
or release.

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

                  (a)      any lack of validity or enforceability of any of the
         Secured Debt Documents,

                  (b)      the failure of any Secured Party or any holder of any
         Secured Obligation

                                       5
<PAGE>

                           (i)      to assert any claim or demand or to enforce
                  any right or remedy against the Company, any other Obligor or
                  any other Person under the provisions of any of the Secured
                  Debt Documents or otherwise, or

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

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

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

                  (e)      any amendment to, rescission, waiver, or other
         modification of, or any consent to departure from, any of the terms of
         any of the Secured Debt Documents,

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

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

         SECTION 2.7.      [Intentionally Omitted.]

         SECTION 2.8.      Waiver of Subrogation. Until such time as the Secured
Obligations have been paid in full and discharged, and all commitments to extend
credit under all Credit Facilities, the Indebtedness under which constitutes
Priority Lien Debt shall have been permanently terminated or expired, each
Pledgor hereby irrevocably waives any claim or other rights which it may now or
hereafter acquire against the Company or any other Obligor that arise from the
existence, payment, performance or enforcement of the Pledgors' obligations
under this Pledge Agreement or any other Secured Debt Document, including any
right of subrogation, reimbursement, exoneration, or indemnification, any right
to participate in any claim or remedy of the Collateral Trustee against the
Company or any other Obligor or any collateral which the Collateral Trustee now
has or hereafter acquires, whether or not such claim, remedy or right arises in
equity, or under contract, statute or common law, including the right to take or
receive from the Company or any other Obligor, directly or indirectly, in cash
or other property or by set-off or in any manner, payment or security on account
of such claim or other rights. If any

                                       6
<PAGE>

amount shall be paid to any Pledgor in violation of the preceding sentence and
the Secured Obligations shall not have been indefeasibly paid in full, in cash,
and all commitments to extend credit under all Credit Facilities the
Indebtedness under which constitutes Priority Lien Debt shall have not been
permanently terminated or expired, such amount shall be deemed to have been paid
to such Pledgor for the benefit of, and held in trust for, the Collateral
Trustee, and shall forthwith be paid to the Collateral Trustee to be credited
and applied upon the Secured Obligations, whether matured or unmatured, in
accordance with the terms of the Collateral Trust Agreement. Each Pledgor
acknowledges that it will receive direct and indirect benefits from the
financing arrangements contemplated by the Secured Debt Documents and that the
waiver set forth in this Section is knowingly made in contemplation of such
benefits.

                                  ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

         SECTION 3.1.      Warranties, etc. Each Pledgor represents and warrants
unto the Collateral Trustee and each Secured Party, as at the date of each
pledge and delivery hereunder (including each pledge and delivery of Pledged
Shares) by such Pledgor to the Collateral Trustee of any Pledged Collateral, as
set forth in this Article.

         SECTION 3.1.1     Organization, etc. Each Pledgor is a corporation
validly organized and existing and in good standing under the laws of the State
of its organization, is duly qualified to do business and is in good standing as
a foreign organization in each jurisdiction where the nature of its business
requires such qualification and where the failure to so qualify would have a
material adverse effect on such Pledgor's ability to perform its obligations
under this Pledge Agreement or the other Secured Debt Documents to which it is a
party, and has full power and authority and holds all requisite governmental
licenses, permits and other approvals to enter into and perform its Secured
Obligations under this Pledge Agreement and each other Secured Debt Document to
which it is a party and to own or hold under lease its property and to conduct
its business substantially as currently conducted by it.

         SECTION 3.1.2     Due Authorization, Non-Contravention, etc. The
execution, delivery and performance by any Pledgor of this Pledge Agreement and
each other Secured Debt Document executed or to be executed by it are within
such Pledgor's corporate powers, have been duly authorized by all necessary
corporate action, and do not

                  (a)      contravene such Pledgor's organizational documents;

                  (b)      contravene any contractual restriction, law or
         governmental regulation or court decree or order binding on or
         affecting such Pledgor; or

                  (c)      result in, or require the creation or imposition of,
         any Lien (other than the lien created hereunder) on any of such
         Pledgor's properties.

         SECTION 3.1.3     Regulation, etc. Each Pledgor is not an "investment
company" within the meaning of the Investment Company Act of 1940, as amended,
or a "holding company", or a "subsidiary company" of a "holding company", or an
"affiliate" of a "holding company" or of a "subsidiary company" of a "holding
company", within the meaning of the Public Utility Holding Company Act of 1935,
as amended.

                                       7
<PAGE>

         SECTION 3.1.4     Validity, etc. This Pledge Agreement constitutes, and
each other Secured Debt Document executed by each Pledgor will, on the due
execution and delivery thereof, constitute, the legal, valid and binding
obligations of each Pledgor enforceable in accordance with their respective
terms except as enforceability may be subject to or limited by (i) bankruptcy,
insolvency, reorganization, arrangement, moratorium or other similar laws
affecting the rights of creditors or (ii) general principles of equity,
including the possible unavailability of specific performance or injunctive
relief.

         SECTION 3.1.5     Ownership, No Liens, etc. Each Pledgor is the legal
and beneficial owner of, and has good and marketable title to (and has full
right and authority to pledge and assign) the Pledged Collateral, free and clear
of all liens, security interests, options, or other charges or encumbrances,
except any lien or security interest granted pursuant hereto in favor of the
Collateral Trustee.

         SECTION 3.1.6     Valid Security Interest. The delivery of such Pledged
Collateral to the Collateral Trustee is effective to create a valid, perfected,
first priority or second priority, as the case may be, security interest in such
Pledged Collateral and all proceeds thereof, securing the Secured Obligations.
No filing or other action will be necessary to perfect or protect such security
interest.

         SECTION 3.1.7     As to Pledged Shares. All of the Pledged Shares are
duly authorized and validly issued, fully paid, and non-assessable, and
constitute sixty-five percent (65%) of all of the issued and outstanding shares
of capital stock entitled to vote in the election of the Board of Directors of
the Pledged Share Issuer.

         SECTION 3.1.8     Authorization, Approval, etc. No authorization,
approval, or other action by, and no notice to or filing with, any governmental
authority, regulatory body or any other Person is required either

                  (a)      for the pledge by any Pledgor of any Pledged
         Collateral pursuant to this Pledge Agreement or for the execution,
         delivery, and performance of this Pledge Agreement by any Pledgor, or

                  (b)      for the exercise by the Collateral Trustee of the
         voting or other rights provided for in this Pledge Agreement, or,
         except with respect to any Pledged Shares, as may be required in
         connection with a disposition of such Pledged Shares by laws affecting
         the offering and sale of securities generally, the remedies in respect
         of the Pledged Collateral pursuant to this Pledge Agreement.

         SECTION 3.1.9     Compliance with Laws. Each Pledgor is in compliance
with the requirements of all applicable laws (including, without limitation, the
provisions of the Fair Labor Standards Act), rules, regulations and orders of
every governmental authority, the non-compliance with which might materially
adversely affect the business, properties, assets, operations, condition
(financial or otherwise) or prospects of any Pledgor or the value of the Pledged
Collateral or the worth of the Pledged Collateral as collateral security.

                                       8
<PAGE>

                                   ARTICLE IV
                                    COVENANTS

         SECTION 4.1.      Protect Collateral; Further Assurances, etc. Except
as otherwise permitted under the Secured Debt Documents, no Pledgor will sell,
assign, transfer, pledge or encumber in any other manner the Pledged Collateral
(except in favor of the Collateral Trustee hereunder) and each Pledgor will
warrant and defend the right and title herein granted unto the Collateral
Trustee in and to the Pledged Collateral (and all right, title, and interest
represented by the Pledged Collateral) against the claims and demands of all
Persons whomsoever. Each Pledgor agrees that at any time, and from time to time,
at the expense of the Pledgors, the Pledgors will promptly execute and deliver
all further instruments, and take all further action, that may be necessary or
desirable, or that the Collateral Trustee or any Secured Debt Representative may
reasonably request, in order to perfect and protect any security interest
granted or purported to be granted hereby or to enable the Collateral Trustee to
exercise and enforce its rights and remedies hereunder with respect to any
Pledged Collateral.

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

         SECTION 4.3.      Continuous Pledge. Subject to Section 2.5, the
Pledgors will, at all times, keep pledged to the Collateral Trustee pursuant
hereto all shares of capital stock constituting Pledged Collateral, all
Dividends and Distributions with respect thereto, and all other Pledged
Collateral and other securities, instruments, proceeds, and rights from time to
time received by or distributable to any Pledgor in respect of any Pledged
Collateral.

         SECTION 4.4.      Voting Rights. The Pledgors agree after any
Actionable Default shall have occurred and be continuing and the Collateral
Trustee has notified the Pledgors of the Collateral Trustee's intention to
exercise its voting power under this Section 4.4

                           (i)      the Collateral Trustee may exercise (to the
                  exclusion of the Pledgors) the voting power and all other
                  incidental rights of ownership with respect to any Pledged
                  Shares or other shares of capital stock constituting Pledged
                  Collateral and each Pledgor hereby grants the Collateral
                  Trustee an irrevocable proxy, exercisable under such
                  circumstances, to vote the Pledged Shares and such other
                  Pledged Collateral; and

                                       9
<PAGE>

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

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

         SECTION 4.5.      Additional Undertakings. The Pledgors will not take
or omit to take any action the taking or the omission of which would result in
any impairment or alteration of any material obligation of the maker of any
instrument constituting Pledged Collateral.

                                    ARTICLE V
                             THE COLLATERAL TRUSTEE

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

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

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

                  (c)      after the occurrence and continuance of an Actionable
         Default, to file any claims or take any action or institute any
         proceedings which the Collateral Trustee may deem necessary or
         desirable for the collection of any of the Pledged Collateral or
         otherwise to enforce the rights of the Collateral Trustee with respect
         to any of the Pledged Collateral.

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

         SECTION 5.2.      Collateral Trustee May Perform. If any Pledgor fails
to perform any agreement contained herein, the Collateral Trustee may itself
perform, or cause performance of,

                                       10
<PAGE>

such agreement, and the expenses of the Collateral Trustee incurred in
connection therewith shall be payable by the Pledgors pursuant to Section 6.4.

         SECTION 5.3       Collateral Trustee's Rights and Duties Subject to
Collateral Trust Agreement. Notwithstanding anything to the contrary contained
in this Pledge Agreement, in acting under and by virtue of this Pledge
Agreement, the Collateral Trustee shall be entitled to all of the rights,
privileges and immunities provided to it in the Collateral Trust Agreement, and
the rights and duties of the Collateral Trustee hereunder are subject in all
respects to the terms, conditions and limitations set forth in the Collateral
Trust Agreement (including, without limitation the provisions of Article 5
thereof), reference to which is made for all purposes; provided, however, that
any forbearance by the Collateral Trustee in exercising any right or remedy
available to it under the Collateral Trust Agreement shall not give rise to a
defense on the part of the Pledgors with respect to the Collateral Trustee's
exercise of any right or remedy pursuant to this Pledge Agreement or as
otherwise afforded by applicable law.

                                   ARTICLE VI
                                    REMEDIES

         SECTION 6.1.      Certain Remedies. If an Actionable Default shall have
occurred and be continuing:

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

                  (b)      The Collateral Trustee may, in each case subject to
         the terms and provisions of the Collateral Trust Agreement,

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

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

                                       11
<PAGE>

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

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

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

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

         SECTION 6.2.      Securities Laws. If the Collateral Trustee shall
determine to exercise its right to sell all or any of the Pledged Collateral
pursuant to Section 6.1, the Pledgors agree that, upon request of the Collateral
Trustee, the Pledgors will, at their own expense:

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

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

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

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

         SECTION 6.3.      Compliance with Restrictions. The Pledgors agree that
in any sale of any of the Pledged Collateral whenever an Actionable Default
shall have occurred and be continuing, the Collateral Trustee is hereby
authorized to comply with any limitation or restriction in connection with such
sale as it may be advised by counsel is necessary in order to avoid any
violation of applicable law (including compliance with such procedures as may
restrict the number of prospective bidders and purchasers, require that such
prospective bidders and purchasers have certain qualifications, and restrict
such prospective bidders and purchasers to

                                       12
<PAGE>

persons who will represent and agree that they are purchasing for their own
account for investment and not with a view to the distribution or resale of such
Pledged Collateral), or in order to obtain any required approval of the sale or
of the purchaser by any governmental regulatory authority or official, and the
Pledgors further agree that such compliance shall not result in such sale being
considered or deemed not to have been made in a commercially reasonable manner,
nor shall the Collateral Trustee be liable nor accountable to the Pledgors for
any discount allowed by the reason of the fact that such Pledged Collateral is
sold in compliance with any such limitation or restriction.

         SECTION 6.4.      Application of Proceeds. All cash proceeds received
by the Collateral Trustee in respect of any sale of, collection from, or other
realization upon, all or any part of the Pledged Collateral shall thereafter be
applied in accordance with Section 3.4 of the Collateral Trust Agreement.

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

                  (a)      the administration of this Pledge Agreement and each
         other Secured Debt Document;

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

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

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

                                   ARTICLE VII
                            MISCELLANEOUS PROVISIONS

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

         SECTION 7.2.      Amendments, etc. No amendment to or waiver of any
provision of this Pledge Agreement nor consent to any departure by the Pledgors
herefrom shall in any event be effective unless the same shall be in writing and
signed by the Collateral Trustee in accordance with Section 7.1 of the
Collateral Trust Agreement, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which it is
given.

                                       13
<PAGE>

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

         SECTION 7.4.      Addresses for Notices. All notices and other
communications provided for hereunder shall be in writing (including telegraphic
communication) and shall be effected in the manner provided for in Section 7.5
of the Collateral Trust Agreement.

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

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

         SECTION 7.7.      Governing Law, Entire Agreement, etc. THIS PLEDGE
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS OF THE STATE OF NEW YORK, EXCEPT TO THE EXTENT THAT THE VALIDITY OR
PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT
OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER
THAN THE STATE OF NEW YORK. THIS PLEDGE AGREEMENT AND THE OTHER SECURITY
DOCUMENTS CONSTITUTE THE ENTIRE UNDERSTANDING AMONG THE PARTIES HERETO WITH
RESPECT TO THE SUBJECT MATTER HEREOF AND SUPERSEDE ANY PRIOR AGREEMENTS, WRITTEN
OR ORAL, WITH RESPECT THERETO.

         SECTION 7.8.      Forum Selection and Consent to Jurisdiction. ANY
LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS
PLEDGE AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER VERBAL OR WRITTEN) OR ACTIONS OF THE COLLATERAL TRUSTEE OR THE PLEDGORS
SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF NEW
YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW
YORK; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY PLEDGED
COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE COLLATERAL TRUSTEE'S OPTION,
IN THE COURTS OF ANY JURISDICTION WHERE SUCH PLEDGED COLLATERAL OR OTHER
PROPERTY MAY BE FOUND. EACH PLEDGOR HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO
THE JURISDICTION OF THE COURTS OF THE

                                       14
<PAGE>

STATE OF NEW YORK AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE
AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN
CONNECTION WITH SUCH LITIGATION. EACH PLEDGOR FURTHER IRREVOCABLY CONSENTS TO
THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL
SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. EACH PLEDGOR HEREBY EXPRESSLY
AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION
WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH
LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY
SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT
ANY PLEDGOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY
COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT
PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO
ITSELF OR ITS PROPERTY, SUCH PLEDGOR HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN
RESPECT OF ITS OBLIGATIONS UNDER THIS PLEDGE AGREEMENT.

         SECTION 7.9.      Waiver of Jury Trial. THE COLLATERAL TRUSTEE AND THE
PLEDGORS HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR
ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS PLEDGE AGREEMENT, OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR
ACTIONS OF THE COLLATERAL TRUSTEE OR THE PLEDGORS. THE PLEDGORS ACKNOWLEDGE AND
AGREE THAT THEY HAVE RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS
PROVISION (AND EACH OTHER PROVISION OF EACH OTHER SECURED DEBT DOCUMENT TO WHICH
IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE SECURED
PARTIES ENTERING INTO EACH SUCH SECURED DEBT DOCUMENT.

                                       15
<PAGE>

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

                                    QUINTANA CANADA HOLDINGS, LLC

                                    By: /s/ Michael Thomas
                                       -----------------------------------------
                                    Name: Michael Thomas
                                    Title:

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

                                    Facsimile No.:

                                    Attention:

                                    QUINTANA MINERALS (USA), INC.

                                    By: /s/ Michael Thomas
                                       -----------------------------------------
                                    Name: Michael Thomas
                                    Title:

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

                                    Facsimile No.:

                                    Attention:

                                    JOQ CANADA, INC.

                                    By: /s/ Michael Thomas
                                       -----------------------------------------
                                    Name: Michael Thomas
                                    Title:

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

                                    Facsimile No.:

                                    Attention:

                                       16
<PAGE>

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

                                    By: /s/ Michael Pitfick
                                       -----------------------------------------
                                    Name: Michael Pitfick

                                    Title: Assistant Vice President

                                       17
<PAGE>

                                                EXECUTION COPY
                                                Canadian Guarantors Stock Pledge

                                                                    ATTACHMENT 1
                                                                              to
                                                                Pledge Agreement

Pledged Shares

Pledged Share Issuer            Class A Common Stock

<TABLE>
<CAPTION>
                                 Authorized       Outstanding      % of Shares
                                   Shares            Shares          Pledged
                                 ----------       -----------      -----------
<S>                             <C>               <C>              <C>
Calpine Canada Energy Ltd.      1,000,000,000       35,100             65%
</TABLE>

(3,391 Class A shares pledged by Quintana Minerals (USA), Inc.)
(16,034 Class A shares pledged by Quintana Canada Holdings, LLC)
(3,390 Class A shares pledged by JOQ Canada, Inc.)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]