Document:

<PAGE>
                                                                    EXHIBIT 10.6

                               SECOND AMENDMENT TO
                              EMPLOYMENT AGREEMENT

         This Amendment, dated as of July 17, 2002, by and among Nabors
Industries, Inc. ("Nabors Delaware"), Nabors Industries Ltd. ("Nabors Bermuda")
and Richard A. Stratton (the "Employee" and, collectively with Nabors Delaware
and Nabors Bermuda, the "Parties").

         WHEREAS, Nabors Delaware and the Employee entered into an Employment
Agreement effective as of October 1, 1996, as amended on June 24, 2002 to
include Nabors Bermuda as a party, among other things (as so amended, the
"Employment Agreement");

         WHEREAS, it is anticipated that the Employee will be allocating a small
portion of his time to the business of Nabors Bermuda and will continue to
allocate the bulk of his time to his duties with respect to Nabors Delaware and
its subsidiaries; and

         WHEREAS, the parties desire to clarify the portion of the Employee's
remuneration that will be paid by Nabors Bermuda and Nabors Delaware,
respectively, and to address certain other matters;

         NOW, THEREFORE, in consideration of the foregoing, subject to the
consummation of the Inversion, the Employment Agreement is amended as follows:

         1. Section 3(a) of the Employment Agreement is hereby amended in its
entirety to read as follows:

         "(a)     Base Salary. The Corporation shall pay the Employee a base
                  salary at the annual rate of $247,000. The Base Salary is
                  payable in accordance with the regular payroll practices of
                  the Corporation subject to review by the Board of Directors or
                  its Compensation Committee annually."

         2. For services in his capacity as a director of Nabors Bermuda,
Employee shall be compensated directly by Nabors Bermuda on the same terms as
the outside directors of Nabors Bermuda, as the Board of Directors of Nabors
Bermuda shall from time to time establish.

         3. The amounts payable under the Employment Agreement shall be for all
services rendered by Employee to Nabors Bermuda in his capacity as an officer
only and to Nabors Delaware in all capacities. Nabors Bermuda and Nabors
Delaware shall be responsible for allocating between themselves the compensation
payable hereunder to Employee.

         4. As amended hereby, the Employment Agreement remains in full force
and effect on the date hereof.

         5. The Parties further agree that this Amendment may be executed in
several counterparts, each of which shall be deemed an original but which
together shall constitute one and the same instrument.

<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed this Amendment as of
the date first above written.

                     NABORS INDUSTRIES, INC.

                     By:      /s/ Anthony G. Petrello
                              --------------------------------------------
                              Anthony G. Petrello
                              President

                     NABORS INDUSTRIES LTD.

                     By:      /s/ Jack Wexler
                              --------------------------------------------
                              Jack Wexler
                              Chairman, Compensation Committee

                     RICHARD A. STRATTON

                     /s/ Richard A. Stratton
                     -----------------------------------------------------<PAGE>
                                                                    EXHIBIT 10.1

                       FIRST AMENDMENT TO CREDIT AGREEMENT

         FIRST AMENDMENT (this "Amendment"), dated as of July 12, 2002, to the
$2,500,000,000 Senior A Credit Agreement, dated as of July 13, 2001 (as
heretofore amended, supplemented or otherwise modified, the "Credit Agreement"),
among HOUSTON INDUSTRIES FINANCECO LP, a Delaware limited partnership (the
"Borrower"), RELIANT ENERGY, INCORPORATED, a Texas corporation ("Reliant
Energy"), the several banks and other financial institutions (the "Banks") and
agents from time to time parties thereto and JPMORGAN CHASE BANK (f/k/a The
Chase Manhattan Bank), as administrative agent for the Banks (in such capacity,
the "Agent").

                              W I T N E S S E T H :
                              - - - - - - - - - -

         WHEREAS, the Borrower, Reliant Energy, the Banks and the Agent are
parties to the Credit Agreement; and

         WHEREAS, the Borrower and Reliant Energy have requested that the Banks
agree to extend the Termination Date and amend certain other provisions
contained in the Credit Agreement, and the Banks and the Agent are agreeable to
such request upon the terms and subject to the conditions set forth herein.

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

         1. Defined Terms. Unless otherwise defined herein, capitalized terms
used herein which are defined in the Credit Agreement are used herein as therein
defined.

         2. Amendment to Section 1.1 of the Credit Agreement (Certain Defined
Terms). Section 1.1 of the Credit Agreement is hereby amended by deleting, in
their entirety, the terms "Applicable Margin", "Consolidated Capitalization",
"Designated Rating", "Rating Agencies", "Termination Date" and "Usage Fee"
appearing therein and inserting the following new definitions in the appropriate
alphabetical order:

                  ""Applicable Margin" means the rate per annum set forth below
         opposite the Designated Rating from time to time in effect during the
         period for which payment is due, with respect to any Committed Loan:

<Table>
<Caption>
            ======================================================================================
                                            Applicable Margin for       Applicable Margin for ABR
                 Designated Rating            LIBOR Rate Loans                    Loans
            --------------------------------------------------------------------------------------
<S>                                                <C>                           <C>
               BBB+/Baa1 and higher                1.500%                        0.500%
            --------------------------------------------------------------------------------------
                     BBB/Baa2                      1.650%                        0.650%
            --------------------------------------------------------------------------------------
                     BBB-/Baa3                     2.000%                        1.000%
            --------------------------------------------------------------------------------------
            BB+/Ba1 or lower or unrated            2.500%                        1.500%
            ======================================================================================
 </Table>

         In each row in the table set forth above, the first indicated rating
         corresponds to that assigned by S&P and the second indicated rating
         corresponds to that assigned by Moody's; the determination of which row
         of such table is applicable at any time is set forth in the definition
         of "Designated Rating".

<PAGE>
                  "Consolidated Capitalization" means, as of any date of
         determination, the sum of (a) Consolidated Shareholders' Equity, (b)
         Consolidated Indebtedness for Borrowed Money and, without duplication,
         (c) Mandatory Payment Preferred Stock; provided that for the purpose of
         calculating compliance with Section 8.4(b), Consolidated Capitalization
         shall be determined excluding any adjustment, non-cash charge to net
         income or other non-cash charges or writeoffs resulting thereto from
         application of SFAS No. 142.

                  "Designated Rating" means (a) at any time that the Long Term
         Debt Rating is assigned by both S&P and Moody's and such ratings are
         equivalent, such rating shall be the Designated Rating, (b) if clause
         (a) does not apply, (i) at any time that the Long Term Debt Rating is
         issued by only one of S&P or Moody's, the rating of such debt issued by
         such Rating Agency shall be the Designated Rating, and (ii) at any time
         that such debt is rated by both S&P and Moody's, the lower of such
         ratings and (c) if neither (a) nor (b) apply, if the Long Term Debt
         Rating is not assigned by either S&P or Moody's, the rating assigned to
         the senior unsecured debt of Reliant Energy shall be the Designated
         Rating in accordance with clauses (a) and (b) above. Any change in the
         calculation of the Facility Fees or the Applicable Margin with respect
         to the Borrower that is caused by a change in the Designated Rating
         will become effective on the date of the change in the Designated
         Rating. If the rating system of any Rating Agency shall change, or if
         either S&P or Moody's shall cease to be in the business of rating
         corporate debt obligations, Borrower and the Agent shall negotiate in
         good faith if necessary to amend this definition to reflect such
         changed rating system or the unavailability of ratings from such Rating
         Agencies and, pending the effectiveness of any such amendment, the
         Designated Rating shall be determined by reference to the rating most
         recently in effect prior to such change or cessation.

                  "Master Separation Agreement" means the master separation
         agreement, dated as of December 31, 2000, entered into between Reliant
         Energy and Unregco providing for, among other things, the Spin-off, as
         amended, modified or supplemented from time to time.

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

                   "Term Loans" has the meaning specified in Section 2.1(d).

                  "Termination Date" means (a) initially October 10, 2002,
         unless the Majority Banks direct in writing on or prior to September 5,
         2002 that such Termination Date shall be September 10, 2002, in which
         case the Termination Date shall automatically be deemed to be September
         10, 2002, or (b) any earlier date on which (i) the Commitments have
         been terminated in accordance with this Agreement or (ii) all unpaid
         principal amounts of Loans hereunder have become due and payable in
         accordance with this Agreement.".

                  3. Amendment to Section 2.1 of the Credit Agreement (The
Committed Loans). Section 2.1 of the Credit Agreement is hereby amended by:

                  (a) adding at the end of paragraph (b) thereof the following:

                  "At a reasonable time at least one week prior to September 5,
                  2002, the Agent shall inquire as to whether requisite Banks
                  intend to send the written direction referred to in the
                  definition of Termination Date and shall notify the Borrower
                  and the Banks if the requisite number of such directives have
                  been received."; and

                  (b) adding at the end thereof immediately after paragraph (c)
thereof a new paragraph (d) as follows:

                           "(d) Notwithstanding anything to the contrary
                  contained in this Agreement or in the Regco $2.5 Billion
                  Credit Agreement, on July 12, 2002, 75% of the principal
                  amount of the Loans of each Bank outstanding on such date
                  ($1,875,000,000 in aggregate) shall be deemed to be term loans
                  (the "Term Loans"), with the remaining Loans (the "Revolving
                  Loans") and corresponding Commitments (collectively, the
                  "Revolving Facility") retaining their revolving features.
                  Unless the Borrower designates a prepayment of the Loans as a
                  Term Loan prepayment, all prepayments

                                       2
<PAGE>
                  shall be applied first to outstanding Revolving Loans, and the
                  Commitments made available thereby may be utilized in
                  accordance with this Agreement for borrowings, prepayments or
                  reborrowings and issuances of Letters of Credit, subject to
                  the conditions of this Agreement applicable thereto. Any
                  prepayment designated by the Borrower as a Term Loan
                  prepayment, or any prepayment after giving effect to which the
                  aggregate principal amount of all Loans then outstanding would
                  be less than $1,875,000,000 shall, to such extent, be deemed
                  to be a permanent prepayment of the Term Loans, and the
                  corresponding Commitments under the Revolving Facility shall
                  automatically be permanently reduced by the amount thereof.
                  Each Notice of Borrowing received, and each Loan made, after
                  July 12, 2002 shall be deemed received and made under the
                  Revolving Facility. Banks may make assignments, transfers,
                  novations and delegations of, and sell participations in,
                  subject to the other provisions of this Agreement, either or
                  both of its Term Loans and its Revolving Facility. All
                  references to Loans in this Agreement shall include the Term
                  Loans and Revolving Loans except to the extent necessary to
                  effectuate the foregoing.".

                  4. Amendment to Section 4.2 of the Credit Agreement (Fees).
Section 4.2 of the Credit Agreement is hereby amended by:

                  (a) deleting the table in paragraph (a) thereof in its
entirety, and inserting in lieu thereof the following table:

<Table>
<Caption>
                  "Designated Rating                                 Facility Fee Rate
                  ------------------                                 -----------------
<S>                                                                    <C>
             BBB+/Baa1 or higher                                       0.250%
             BBB/Baa2                                                  0.350%
             BBB-/Baa3                                                 0.500%
             BB+/Ba1 or lower or unrated                               0.500%"; and
</Table>

                  (b) deleting paragraph (b) thereof in its entirety and
substituting in lieu thereof the following:

                           "(b)  [INTENTIONALLY OMITTED.]"; and

                  (c) amending paragraph (c) thereof by (i) deleting the phrase
"and Usage Fees" and (ii) deleting the reference to "Sections 4.2(a) and 4.2(b)"
and substituting in lieu thereof "Section 4.2(a)".

                  5. Amendment to Section 4.4(a) of the Credit Agreement (ABR
Loans). Section 4.4(a) of the Credit Agreement is hereby amended by adding
immediately after "ABR" in clause (i) therein "plus the Applicable Margin".

                  6. Amendment to Section 8.4(b) of the Credit Agreement
(Financial Ratios). Section 8.4(b) of the Credit Agreement is hereby amended by
deleting the ratio "0.65:1.00" and substituting in lieu thereof "0.68:1.00".

                  7. Amendment to Section 8.4(g) of the Credit Agreement
(Certain Investments, Loans, Advances, Guarantees and Acquisitions). Section
8.4(g) of the Credit Agreement is hereby amended by adding at the end thereof
the following:

                           "Notwithstanding the foregoing, Reliant Energy and
                  its Subsidiaries shall not (x) make any future investments in,
                  loans to, advances to and Guarantees of any obligations in
                  Unregco or any of its Subsidiaries, (y) purchase or otherwise
                  acquire (in one transaction or a series of related
                  transactions) any assets of Unregco or any of its Subsidiaries
                  other than, in the case of this clause (y), any such
                  transactions contemplated by the Master Separation Agreement
                  and other agreements and arrangements in respect of the
                  relationship between Reliant Energy and Unregco described in
                  Reliant Energy's filings with the SEC or (z) enter into any
                  other transaction

                                       3
<PAGE>
                  constituting a Reliant Energy Investment with Unregco and its
                  Subsidiaries other than, in the case of this clause (z), the
                  transactions contemplated by the Master Separation Agreement
                  and other agreements and arrangements in respect of the
                  relationship between Reliant Energy and Unregco described in
                  Reliant Energy's filings with the SEC or other arrangements
                  among Reliant Energy, Unregco and their respective
                  Subsidiaries in the ordinary course of business consistent
                  with recent past practices or otherwise at prices and on terms
                  and conditions not less favorable to Reliant Energy or its
                  Subsidiaries (other than Unregco and its Subsidiaries) than
                  could be obtained on an arm's length basis from unrelated
                  third parties.".

                  8. Amendment to Article XI of the Credit Agreement
(Miscellaneous). Article XI of the Credit Agreement is hereby amended by:

                  (a) deleting "or" at the end of clause (iv) of Section 11.1
         and substituting in lieu thereof a semicolon, (b) deleting the period
         at the end of clause (v) thereof and substituting in lieu thereof ";
         or" and (c) adding at the end thereof immediately after clause (v) a
         new clause (vi) as follows:

                           "(vi) amend, modify or waive the last paragraph of
                  Section 8.4(g) without the written consent of the
                  Supermajority Banks.";

                  (b) adding immediately after the first sentence in
         Section 11.6(c) the following:

                  "Notwithstanding the foregoing, with respect to the sale by a
                  Bank of all or any part of its rights and obligations in
                  respect of the Term Loans, (a) each such sale shall not
                  require the consent of the Agent, the Borrower or any other
                  Bank or Banks, (b) each such sale that is not to an existing
                  Bank hereunder shall be in an aggregate amount of not less
                  than $1,000,000 (or such lesser amount that represents the
                  aggregate amount of Term Loans of such Bank), (c) each such
                  sale may be to an Eligible Transferee (as defined below) and
                  each such Eligible Transferee shall be deemed to be a
                  Purchasing Bank and a Bank for all purposes under this Section
                  11.6(c) and this Agreement and (d) each such sale shall be
                  consummated pursuant to a Committed Loan Assignment and
                  Acceptance with such modifications as may be agreed on by the
                  transferor Bank and the applicable transferee and consistent
                  with this Section 11.6(c). For purposes of this Section
                  11.6(c), "Eligible Transferee" shall mean (w)(i) any bank or
                  other financial institution, (ii) any insurance or reinsurance
                  company, (iii) a mutual fund, unit trust or similar collective
                  investment vehicle (other than an entity specified in clause
                  (y)(i) below), and (iv) a registered or licensed broker or
                  dealer (other than a natural person or proprietorship);
                  provided, however, in the case of each of the foregoing
                  clauses (i) through (iv), that such entity has total assets of
                  at least $500,000,000; (x) any Affiliate (as defined below) of
                  an entity specified in the preceding clause (w); (y) any
                  corporation, partnership, proprietorship, organization trust
                  or other entity (i) that is an investment vehicle (including,
                  without limitation, any hedge fund, issuer of collateralized
                  debt obligations, commercial paper conduit or other special
                  purpose vehicle) that (A) has total assets of at least
                  $100,000,000 or (B) is one of a group of investment vehicles
                  under common control or management having, in the aggregate,
                  total assets of at least $100,000,000, (ii) that has total
                  assets of at least $500,000,000, or (iii) the obligations of
                  which under an agreement, contract, or transaction are
                  guaranteed or otherwise supported by a letter of credit or
                  keepwell, support, or other agreement by an entity described
                  in clauses (w), (x), (y)(ii) or (z); and (z) a Sovereign,
                  Sovereign Agency or Supranational Organization (each as
                  defined below). For purposes of the foregoing sentence, (a)
                  "Affiliate" means, in relation to a person, any entity
                  controlled, directly or indirectly, by the person, any entity
                  that controls, directly or indirectly, the person or any
                  entity directly or indirectly under common control with the
                  person, (b) "control" of any entity or person means ownership
                  of a majority of the voting power of the entity or person, (c)
                  "Sovereign" means any state, political subdivision or
                  government, or any agency, instrumentality, ministry,
                  department or other authority (including, without limiting the
                  foregoing, the central bank) thereof, (d) "Sovereign Agency"
                  means any agency, instrumentality, ministry, department or
                  other authority (including, without limiting the foregoing,
                  the central bank) of a Sovereign and (e) "Supranational
                  Organization" means any entity or organization established by
                  treaty or other

                                       4
<PAGE>
                  arrangement between two or more Sovereigns or the Sovereign
                  Agencies of two or more Sovereigns and includes, without
                  limiting the foregoing, the International Monetary Fund,
                  European Central Bank, International Bank for Reconstruction
                  and Development and European Bank for Reconstruction and
                  Development."; and

                  (c) adding at the end thereof immediately after Section 11.17
         a new Section 11.18 as follows:

                           "Section 11.18. Borrower as Co-Obligor Under the
                  Regco $2.5 Billion Credit Agreement. Notwithstanding any
                  provision in this Agreement or in the Regco $2.5 Billion
                  Credit Agreement to the contrary, upon the assumption by Regco
                  of the obligations in respect of the Loans hereunder and all
                  other monetary obligations in respect hereof pursuant to the
                  Regco $2.5 Billion Credit Agreement, Houston Industries
                  FinanceCo LP shall, until the Termination Date (as defined in
                  the Regco $2.5 Billion Credit Agreement), be a joint and
                  several obligor with Regco in respect of all such
                  obligations.".

                  9. Amendment to Exhibit L to the Credit Agreement (Form of
Regco $2.5 Billion Credit Agreement). Exhibit L to the Credit Agreement (the
"Regco Credit Agreement") is hereby amended in the manner set forth on
Exhibit A.

                  10. Confirmation and Reaffirmation of Loan Documents. Each
Loan Party does hereby (a) consent and acknowledge and agree to the transactions
described in this Amendment and (b) after giving effect to this Amendment, (i)
confirms, reaffirms and restates the representations and warranties (except for
those representations or warranties or parts thereof that, by their terms,
expressly relate solely to a specific date) made by it in each Loan Document to
which it is a party, (ii) ratifies and confirms each Loan Document to which it
is a party and (iii) confirms and agrees that each such Loan Document is, and
shall continue to be in full force and effect, with (to the extent applicable)
the collateral described therein securing and continuing to secure, the payment
of all obligations of such Loan Party referred to therein; provided that each
reference to the Credit Agreement therein and in each of the other Loan
Documents shall be deemed to be a reference to the Credit Agreement after giving
effect to this Amendment.

                  11. Conditions to Effectiveness. This Amendment shall become
effective as of the date set forth above upon satisfaction of the following
conditions precedent:

                  (a) The Agent shall have received counterparts of this
         Amendment executed by the Borrower, Reliant Energy and each of the
         Banks;

                  (b) The Agent shall have received an amendment fee for the
         account of each Bank in an amount equal to 0.125% of such Bank's
         Commitment;

                  (c) All corporate and other proceedings, and all documents,
         instruments and other legal matters in connection with this Amendment
         shall be in form and substance reasonably satisfactory to the Agent;

                  (d) The Agent shall have received all fees and expenses
         required to be paid in connection with the Credit Agreement; and

                  (e) The Agent shall have received satisfactory legal opinions
         and other documents and certificates reasonably requested by the Agent.

                  12. Reference to and Effect on the Loan Documents; Limited
Effect. On and after the date hereof and the satisfaction of the conditions
contained in Section 11 of this Amendment, each reference in the Credit
Agreement to "this Agreement", "hereunder", "hereof" or words of like import
referring to the Credit Agreement, and each reference in the other Loan
Documents to "the Credit Agreement", "thereunder", "thereof" or words of like
import referring to the Credit Agreement, shall mean and be a reference to the
Credit Agreement as amended hereby. The execution, delivery and effectiveness of
this Amendment shall not, except as expressly provided herein,

                                       5
<PAGE>
operate as a waiver of any right, power or remedy of any Bank or the Agent under
any of the Loan Documents, nor constitute a waiver of any provisions of any of
the Loan Documents. Except as expressly amended herein, all of the provisions
and covenants of the Credit Agreement and the other Loan Documents are and shall
continue to remain in full force and effect in accordance with the terms thereof
and are hereby in all respects ratified and confirmed.

                  13. Representations and Warranties. Each of the Borrower and
Reliant Energy, as of the date hereof and after giving effect to the amendment
contained herein, hereby confirms, reaffirms and restates the representations
and warranties (except for those representations or warranties or parts thereof
that, by their terms, expressly relate solely to a specific date) made by it in
Article VII of the Credit Agreement and otherwise in the Loan Documents to which
it is a party; provided that each reference to the Credit Agreement therein
shall be deemed to be a reference to the Credit Agreement after giving effect to
this Amendment.

                  14. Counterparts. This Amendment may be executed by one or
more of the parties hereto in any number of separate counterparts (which may
include counterparts delivered by facsimile transmission) and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument. Any executed counterpart delivered by facsimile transmission shall
be effective as an original for all purposes hereof. The execution and delivery
of this Amendment by any Bank shall be binding upon each of its successors and
assigns (including Transferees of its Commitments and Loans in whole or in part
prior to effectiveness hereof) and binding in respect of all of its Commitments
and Loans, including any acquired subsequent to its execution and delivery
hereof and prior to the effectiveness hereof.

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

                                       6
<PAGE>
                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be executed and delivered by their duly authorized officers as of
the date first written above.

                                          HOUSTON INDUSTRIES
                                          FINANCECO LP

                                          By: HOUSTON INDUSTRIES
                                              FINANCECO GP, LLC,
                                              its General Partner

                                          By: /s/ MARC KILBRIDE
                                             -----------------------------------
                                              Name: Marc Kilbride
                                              Title: Treasurer

                                          RELIANT ENERGY, INCORPORATED

                                          By: /s/ MARC KILBRIDE
                                             -----------------------------------
                                              Name: Marc Kilbride
                                              Title: Treasurer

                                          JPMORGAN CHASE BANK, as
                                          Agent and as a Bank

                                          By: /s/ ROBERT TRABAND
                                             -----------------------------------
                                              Name: Robert Traband
                                              Title: Vice President

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          ABN AMRO BANK N.V.

                                          By: /s/ THOMAS J. STARR
                                             -----------------------------------
                                          Name: Thomas J. Starr
                                          Title: Vice President

                                          By: /s/ KRIS A. GROSSHANS
                                             -----------------------------------
                                          Name: Kris A. Grosshans
                                          Title: Senior Vice President

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          BANK HAPOALIM, B.M.

                                          By: /s/ SHAUN BREIDBART
                                             -----------------------------------
                                          Name: Shaun Breidbart
                                          Title: Vice President

                                          By: /s/ LAURA ANNE RAFFA
                                             -----------------------------------
                                          Name: Laura Anne Raffa
                                          Title: Senior Vice President and
                                                 Corporate Manager

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          BANK ONE, N.A.

                                          By: /s/ GEORGE R. SCHANZ
                                             -----------------------------------
                                          Name: George R. Schanz
                                          Title: Managing Director

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          BANK OF AMERICA, N.A.

                                          By: /s/ RICHARD L. STEIN
                                             -----------------------------------
                                          Name: Richard L. Stein
                                          Title: Principal

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          THE BANK OF NOVA SCOTIA

                                          By: /s/ M.D. SMITH
                                             -----------------------------------
                                          Name: M.D. Smith
                                          Title: Agent, Operations

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          THE BANK OF TOKYO-MITSUBISHI, LTD.

                                          By:  /s/ D. BARNELL
                                             -----------------------------------
                                          Name:  D. Barnell
                                          Title: Vice President

                                          By:  /s/ JOHN M. MEANS
                                             -----------------------------------
                                          Name:  J. Means
                                          Title: VP and Manager

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          BARCLAYS BANK PLC

                                          By:  /s/ ERIC CHILTON
                                             -----------------------------------
                                          Name:  Eric Chilton
                                          Title: Managing Director

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          BAYERISCHE LANDESBANK
                                          GIROZENTRALE, CAYMAN ISLANDS BRANCH

                                          By:     /s/ HEREWARD DRUMMOND
                                             -----------------------------------
                                          Name:  Hereward Drummond
                                          Title: Senior Vice President

                                          By:    /s/ SEAN O'SULLIVAN
                                             -----------------------------------
                                          Name:  Sean O'Sullivan
                                          Title: Vice President

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          CITIBANK, N.A.

                                          By:    /s/ SANDIP SEN
                                             -----------------------------------
                                          Name:  Sandip Sen
                                          Title: Managing Director

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          COBANK

                                          By:    /s/ CATHLEEN D. REED
                                             -----------------------------------
                                          Name:  Cathleen D. Reed
                                          Title: Assistant Vice President

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                        COMMERZBANK AG
                                        New York and Grand Cayman Branches

                                        By:    /s/ HARRY P. YERGEY
                                           -----------------------------------
                                        Name:  Harry P. Yergey
                                        Title: Senior Vice President and Manager

                                        By:    /s/ W. DAVID SUTTLES
                                           -----------------------------------
                                        Name:  W. David Suttles
                                        Title: Vice President

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          CREDIT LYONNAIS NEW YORK BRANCH

                                          By:    /s/ BERNARD WEYMULLER
                                             -----------------------------------
                                          Name:  Bernard Weymuller
                                          Title: Senior Vice President
<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                               CREDIT SUISSE FIRST BOSTON

                               By:    /s/ JAMES P. MORAN     /s/ DAVID M. KOCZAN
                                  ----------------------------------------------
                               Name:  James P. Moran         David M. Koczan
                               Title: Director               Associate

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          DEUTSCHE BANK AG NEW YORK BRANCH
                                          AND/OR CAYMAN ISLANDS BRANCH

                                          By:    /s/ HANS C. NARBERHAUS
                                             -----------------------------------
                                          Name:  Hans C. Narberhaus
                                          Title: Vice President

                                          By:    /s/ JOEL MAKOWSKY
                                             -----------------------------------
                                          Name:  Joel Makowsky
                                          Title: Vice President

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                             ERSTE BANK

                             By:    /s/ ROBERT SUEHNHOLZ   /s/ PATRICK W. SOMMER
                                ------------------------------------------------
                             Name:  Robert Suehnholz       Patrick W. Sommer
                             Title: 1st Vice President     Vice President
                                                           Erste Bank New York
                                                             Branch

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          WACHOVIA BANK, NATIONAL ASSOCIATION
                                          (f/k/a First Union National Bank)

                                          By: /s/ ROTCHER WATKINS
                                             -----------------------------------
                                          Name: Rotcher Watkins
                                          Title: Managing Director

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          KBC BANK N.V.

                                          By: /s/ ROBERT SNAUFFER
                                             -----------------------------------
                                          Name: Robert Snauffer
                                          Title: First Vice President

                                          By: /s/ ERIC RASKIN
                                             -----------------------------------
                                          Name: Eric Raskin
                                          Title: Vice President

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          MELLON BANK, N.A.

                                          By: /s/ RICHARD A. MATTHEWS
                                             -----------------------------------
                                          Name: Richard A. Matthews
                                          Title: First Vice President

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          MIZUHO CORPORATE BANK, LTD

                                          By: /s/ TORU MAEDA
                                             -----------------------------------
                                          Name: Toru Maeda
                                          Title: General Manager

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          THE NORTHERN TRUST COMPANY

                                          By: /s/ MELISSA A. WHITSON
                                             -----------------------------------
                                          Name: Melissa A. Whitson
                                          Title: Vice President

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          ROYAL BANK OF CANADA

                                          By: /s/ DAVID A. MCCLUSKEY
                                             -----------------------------------
                                          NAME: David A. McCluskey
                                          Title: Manager

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          SUMITOMO MITSUI BANKING CORPORATION

                                          By: DAVID A. BUCK
                                             -----------------------------------
                                          Name: David A. Buck
                                          Title: Senior Vice President

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          TORONTO DOMINION (TEXAS) INC.

                                          By:    /s/ MARK A. BAIRD
                                             -----------------------------------
                                          Name:  Mark A. Baird
                                          Title: Vice President

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          UBS AG, STAMFORD BRANCH

                                          By:    /s/ DAVID J. KEITEL
                                             -----------------------------------
                                          Name:  David J. Keitel
                                          Title: Executive Director
                                                 Recovery Management

                                          By:    /s/ WILFRED V. SAINT
                                             -----------------------------------
                                          Name:  Wilfred V. Saint
                                          Title: Associate Director
                                                 Banking Products Services, US

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          UFJ BANK LIMITED

                                          By: /s/ LAURANCE J. BRESSLER
                                             -----------------------------------
                                          Name:  Laurance J. Bressler
                                          Title: SVP and Group Co-Head

<PAGE>
                                                                  Signature Page
                                             Senior A Credit Agreement Amendment

                                          WESTDEUTSCHE LANDESBANK
                                          GIROZENTRALE, New York Branch

                                          By: /s/ SALVATORE BATTINELLI
                                             -----------------------------------
                                          Name:  Salvatore Battinelli
                                          Title: Managing Director
                                                 Credit Department

                                          By: /s/ ANTHONY ALESSANDRO
                                             -----------------------------------
                                          Name:  Anthony Alessandro
                                          Title: Associate Director

<PAGE>

                                                                       EXHIBIT A

                  1. Defined Terms. Unless otherwise defined herein, capitalized
terms used herein which are defined in the Regco Credit Agreement are used
herein as therein defined.

                  2. Amendment to Section 1.01 of the Regco Credit Agreement
(Certain Defined Terms). Section 1.01 of the Regco Credit Agreement is hereby
amended by (a) deleting, in their entirety, the terms "Applicable Margin",
"Designated Rating", "Termination Date" and "Usage Fee" appearing therein and
inserting the following new definitions in the appropriate alphabetical order:

                  ""Applicable Margin" means the rate per annum set forth below
         opposite the Designated Rating from time to time in effect during the
         period for which payment is due, with respect to any Committed Loan:

     <Table>
     <Caption>
     =================================================================================================
                                                       Applicable Margin for     Applicable Margin for
        Designated Rating         Facility Fees          LIBOR Rate Loans              ABR Loans
     -------------------------------------------------------------------------------------------------
<S>                                   <C>                     <C>                       <C>
      BBB+/Baa1 and higher            0.250%                  1.500%                    0.500%
     -------------------------------------------------------------------------------------------------
            BBB/Baa2                  0.350%                  1.650%                    0.650%
     -------------------------------------------------------------------------------------------------
            BBB-/Baa3                 0.500%                  2.000%                    1.000%
     -------------------------------------------------------------------------------------------------
       BB+/Ba1 or lower or
             unrated                  0.500%                  2.500%                    1.500%
     =================================================================================================
</Table>

         In each row in the table set forth above, the first indicated rating
         corresponds to that assigned by S&P and the second indicated rating
         corresponds to that assigned by Moody's; the determination of which row
         of such table is applicable at any time is set forth in the definition
         of "Designated Rating".

                  "Designated Rating" means (a) at any time that the Long Term
         Debt Rating is assigned by both S&P and Moody's and such ratings are
         equivalent, such rating shall be the Designated Rating, (b) if clause
         (a) does not apply, (i) at any time that the Long Term Debt Rating is
         issued by only one of S&P or Moody's, the rating of such debt issued by
         such Rating Agency shall be the Designated Rating, and (ii) at any time
         that such debt is rated by both S&P and Moody's, the lower of such
         ratings and (c) if neither (a) nor (b) apply, if the Long Term Debt
         Rating is not assigned by either S&P or Moody's, the rating assigned to
         the senior unsecured debt of Reliant Energy shall be the Designated
         Rating in accordance with clauses (a) and (b) above. Any change in the
         calculation of the Facility Fees or the Applicable Margin with respect
         to Borrower that is caused by a change in the Designated Rating will
         become effective on the date of the change in the Designated Rating. If
         the rating system of any Rating Agency shall change, or if either S&P
         or Moody's shall cease to be in the business of rating corporate debt
         obligations, Borrower and the Agent shall negotiate in good faith if
         necessary to amend this definition to reflect such changed rating
         system or the unavailability of ratings from such Rating Agencies and,
         pending the effectiveness of any such amendment, the Designated Rating
         shall be determined by reference to the rating most recently in effect
         prior to such change or cessation.

                  "Master Separation Agreement" means the master separation
         agreement, dated as of December 31, 2000, entered into between Reliant
         Energy and Unregco providing for, among other things, the Spin-off, as
         amended, modified or supplemented from time to time.

                  "Spin-off" shall have the meaning specified in Schedule 2
         attached hereto.

<PAGE>
                  "Supermajority Banks" means, at any time, Banks having at
         least 65% of the aggregate Commitments or, if the Commitments have been
         terminated, 65% of the aggregate Commitments in effect immediately
         prior to such termination.

                  "Term Loans" has the meaning specified in Section 2.01(e).

                  "Termination Date" means (a) initially October 10, 2002,
         unless the Majority Banks direct in writing on or prior to September 5,
         2002 that such Termination Date shall be September 10, 2002, in which
         case the Termination Date shall automatically be deemed to be September
         10, 2002, or (b) any earlier date on which (i) the Commitments have
         been terminated in accordance with this Agreement or (ii) all unpaid
         principal amounts of Loans hereunder have become due and payable in
         accordance with this Agreement; and

                  (b) amending the definition of "Consolidated EBITDA" by
deleting "for any period" and substituting in lieu thereof " means, for any
twelve-month period ending on the date of determination".

                  3. Amendment to Section 2.01 of the Regco Credit Agreement
(The Committed Loans). Section 2.01 of the Credit Agreement is hereby amended
by:

                  (a) adding at the end of paragraph (a) thereof the following:

                  "At a reasonable time at least one week prior to September 5,
                  2002, the Agent shall inquire as to whether requisite Banks
                  intend to send the written direction referred to in the
                  definition of Termination Date and shall notify the Borrower
                  and the Banks if the requisite number of such directives have
                  been received."; and

                  (b) adding at the end thereof immediately after paragraph (d)
         thereof a new paragraph (e) as follows:

                           "(e) Notwithstanding anything to the contrary
                  contained in this Agreement or in the FinanceCo $2.5 Billion
                  Credit Agreement, upon the effectiveness of this Agreement,
                  each Bank shall be deemed to have made to the Borrower (i)
                  term loans in the aggregate principal amount of the aggregate
                  principal amount of its Term Loan (as defined in the FinanceCo
                  $2.5 Billion Credit Agreement) outstanding on such date, which
                  term loans shall be deemed to be term loans (the "Term Loans")
                  hereunder, and (ii) revolving loans in the aggregate principal
                  amount of the aggregate principal amount of its Revolving Loan
                  (as defined in the FinanceCo $2.5 Billion Credit Agreement)
                  outstanding on such date, which revolving loans shall be
                  deemed to be revolving loans (the "Revolving Loans") hereunder
                  and, which shall, together with the corresponding Commitments
                  (collectively, the "Revolving Facility") retain their
                  revolving features. Unless Borrower designates a prepayment of
                  the Loans as a Term Loan prepayment, all prepayments shall be
                  applied first to outstanding Revolving Loans, and the
                  Commitments made available thereby may be utilized in
                  accordance with this Agreement for borrowings, prepayments or
                  reborrowings and issuances of Letters of Credit, subject to
                  the conditions of this Agreement applicable thereto. Any
                  prepayment designated by Borrower as a Term Loan prepayment,
                  or any prepayment after giving effect to which the aggregate
                  principal amount of all Loans then outstanding would be less
                  than the aggregate principal amount of Term Loans outstanding
                  on the effective date of this Agreement shall, to such extent,
                  be deemed to be a permanent prepayment of the Term Loans, and
                  the corresponding Commitments under the Revolving Facility
                  shall automatically be permanently reduced by the amount
                  thereof. Each Notice of Borrowing received, and each Loan
                  made, after July 12, 2002 shall be deemed received and made
                  under the Revolving Facility. Banks may make assignments,
                  transfers, novations and delegations of, and sell
                  participations in, subject to the other provisions of this
                  Agreement, either or both of its Term Loans and its Revolving
                  Facility. All references to Loans in this Agreement shall
                  include the Term Loans and Revolving Loans except to the
                  extent necessary to effectuate the foregoing".
<PAGE>

                  4. Amendment to Section 4.02 of the Regco Credit Agreement
(Fees). Section 4.02 of the Regco Credit Agreement is hereby amended by:

                  (a) deleting paragraph (b) thereof in its entirety and
substituting in lieu thereof the following:

                           "(b)  [INTENTIONALLY OMITTED.]"; and

                  (b) amending paragraph (c) thereof by (i) deleting the phrase
"and Usage Fees"; and (ii) by deleting "Sections 4.02(a) and 4.02(b)" and
substituting in lieu thereof "Section 4.02(a)".

                  5. Amendment to Section 4.04(a) of the Credit Agreement (ABR
Loans). Section 4.04(a) of the Credit Agreement is hereby amended by adding
immediately after "ABR" in clause (i) therein "plus the Applicable Margin".

                  6. Amendment to Section 8.02(a) of the Regco Credit Agreement
(Financial Ratio). Section 8.02(a) of the Regco Credit Agreement is hereby
amended by deleting the ratio "4.50:1.00" and substituting in lieu thereof the
ratio "4.75:1.00".

                  7. Amendment to Section 8.02(g) of the Credit Agreement
(Certain Investments, Loans, Advances, Guarantees and Acquisitions). Section
8.02(g) of the Regco Credit Agreement is hereby amended by adding at the end
thereof the following:

                           "Notwithstanding the foregoing, Borrower and its
                  Subsidiaries shall not (x) make any future investments in,
                  loans to, advances to and Guarantees of any obligations in
                  Unregco or any of its Subsidiaries or purchase or otherwise
                  acquire (in one transaction or a series of related
                  transactions) any assets of Unregco or any of its
                  Subsidiaries, (y) purchase or otherwise acquire (in one
                  transaction or a series of related transactions) any assets of
                  Unregco or any of its Subsidiaries other than, in the case of
                  this clause (y), any such transactions contemplated by the
                  Master Separation Agreement and other agreements and
                  arrangements in respect of the relationship between Reliant
                  Energy and Unregco described in Reliant Energy's filings with
                  the SEC or (z) enter into any other transaction constituting
                  an Investment with Unregco and its Subsidiaries other than, in
                  the case of this clause (z), the transactions contemplated by
                  the Master Separation Agreement and other agreements and
                  arrangements in respect of the relationship between Reliant
                  Energy and Unregco described in Reliant Energy's filings with
                  the SEC or other arrangements among Borrower, Unregco and
                  their respective Subsidiaries in the ordinary course of
                  business consistent with recent past practices or otherwise at
                  prices and on terms and conditions not less favorable to
                  Borrower or its Subsidiaries (other than Unregco and its
                  Subsidiaries) than could be obtained on an arm's length basis
                  from unrelated third parties.".

                  8. Amendment to Article XI of the Credit Agreement
(Miscellaneous). Article XI of the Credit Agreement is hereby amended by:

                  (a) deleting "or" at the end of clause (ii) of Section 11.01
         and substituting in lieu thereof a comma, (b) deleting the period at
         the end of clause (iii) thereof and substituting in lieu thereof ", or"
         and (c) adding at the end thereof immediately after clause (iii) a new
         clause (iv) as follows:

                           "(iv) amend, modify or waive the last paragraph of
                  Section 8.02(g) without the written consent of the
                  Supermajority Banks.";

                  (b) adding immediately after the first sentence in Section
         11.06(c) the following:

                  "Notwithstanding the foregoing, with respect to the sale by a
                  Bank of all or any part of its rights and obligations in
                  respect of the Term Loans, (a) each such sale shall not
                  require the consent of the Agent, Borrower or any other Bank
                  or Banks, (b) each such sale that is not to an existing Bank
                  hereunder shall be in an aggregate amount of not less than
                  $1,000,000 (or such lesser amount that

<PAGE>
                  represents the aggregate amount of Term Loans of such Bank),
                  (c) each such sale may be to an Eligible Transferee (as
                  defined below) and each such Eligible Transferee shall be
                  deemed to be a Purchasing Bank and a Bank for all purposes
                  under this Section 11.06(c) and this Agreement and (d) each
                  such sale shall be consummated pursuant to a Committed Loan
                  Assignment and Acceptance with such modifications as may be
                  agreed on by the transferor Bank and the applicable transferee
                  and consistent with this Section 11.06(c). For purposes of
                  this Section 11.06(c), "Eligible Transferee" shall mean (w)(i)
                  any bank or other financial institution, (ii) any insurance or
                  reinsurance company, (iii) a mutual fund, unit trust or
                  similar collective investment vehicle (other than an entity
                  specified in clause (y)(i) below), and (iv) a registered or
                  licensed broker or dealer (other than a natural person or
                  proprietorship); provided, however, in the case of each of the
                  foregoing clauses (i) through (iv), that such entity has total
                  assets of at least $500,000,000; (x) any Affiliate (as defined
                  below) of an entity specified in the preceding clause (w); (y)
                  any corporation, partnership, proprietorship, organization
                  trust or other entity (i) that is an investment vehicle
                  (including, without limitation, any hedge fund, issuer of
                  collateralized debt obligations, commercial paper conduit or
                  other special purpose vehicle) that (A) has total assets of at
                  least $100,000,000 or (B) is one of a group of investment
                  vehicles under common control or management having, in the
                  aggregate, total assets of at least $100,000,000, (ii) that
                  has total assets of at least $500,000,000, or (iii) the
                  obligations of which under an agreement, contract, or
                  transaction are guaranteed or otherwise supported by a letter
                  of credit or keepwell, support, or other agreement by an
                  entity described in clauses (w), (x), (y)(ii) or (z); and (z)
                  a Sovereign, Sovereign Agency or Supranational Organization
                  (each as defined below). For purposes of the foregoing
                  sentence, (a) "Affiliate" means, in relation to a person, any
                  entity controlled, directly or indirectly, by the person, any
                  entity that controls, directly or indirectly, the person or
                  any entity directly or indirectly under common control with
                  the person, (b) "control" of any entity or person means
                  ownership of a majority of the voting power of the entity or
                  person, (c) "Sovereign" means any state, political subdivision
                  or government, or any agency, instrumentality, ministry,
                  department or other authority (including, without limiting the
                  foregoing, the central bank) thereof, (d) "Sovereign Agency"
                  means any agency, instrumentality, ministry, department or
                  other authority (including, without limiting the foregoing,
                  the central bank) of a Sovereign and (e) "Supranational
                  Organization" means any entity or organization established by
                  treaty or other arrangement between two or more Sovereigns or
                  the Sovereign Agencies of two or more Sovereigns and includes,
                  without limiting the foregoing, the International Monetary
                  Fund, European Central Bank, International Bank for
                  Reconstruction and Development and European Bank for
                  Reconstruction and Development."; and

                  (c) adding at the end thereof immediately after Section 11.15
         a new Section 11.16 as follows:

                           "Section 11.16. Houston Industries FinanceCo LP as
                  Co-Obligor. Notwithstanding any provision in this Agreement or
                  in the FinanceCo $2.5 Billion Credit Agreement to the
                  contrary, on the Effective Date and thereafter until the
                  Termination Date, Houston Industries FinanceCo LP shall be a
                  joint and several obligor with Borrower in respect of all
                  obligations hereunder.".

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