Document:

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                                                                     EXHIBIT 4.4

                             COGENTRIX ENERGY, INC.

                           8.75% Senior Notes Due 2008

                             REGISTRATION AGREEMENT

                                                              New York, New York
                                                              September 22, 2000

Salomon Smith Barney Inc.
CIBC World Markets Corp.

c/o Salomon Smith Barney Inc.
390 Greenwich Street
New York, New York 10013

Dear Sirs:

                  Cogentrix Energy, Inc., a North Carolina corporation (the
"Company"), proposes to issue and sell to certain purchasers (the "Initial
Purchasers"), upon the terms set forth in a purchase agreement, dated September
19, 2000 (the "Purchase Agreement"), its 8.75% Senior Notes due 2008 (the
"Securities") (the "Initial Placement"). As an inducement to the Initial
Purchasers to enter into the Purchase Agreement and in satisfaction of a
condition to your obligations thereunder, the Company agrees with you, (i) for
the benefit of the Initial Purchasers and (ii) for the benefit of the holders
from time to time of the Securities (including the Initial Purchasers) (each of
the foregoing a "Holder" and together the "Holders"), as follows:

                  1. Definitions. Capitalized terms used herein without
definition shall have their respective meanings set forth in the Purchase
Agreement. As used in this Registration Agreement (the "Agreement"), the
following capitalized defined terms shall have the following meanings:

                  "Act" means the Securities Act of 1933, as amended, and the
rules and regulations of the Commission promulgated thereunder.

                  "Affiliate" of any specified person means any other person
which, directly or indirectly, is in control of, is controlled by, or is under
common control with, such specified person. For purposes of this definition,
control of a person means the power, direct or indirect, to direct or cause the
direction of the management and policies of such person whether by contract or
otherwise; and the terms "controlling" and "controlled" have meanings
correlative to the foregoing.

                  "Closing Date" means September 22, 2000.

                  "Commission" means the Securities and Exchange Commission.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission promulgated thereunder.

                  "Exchange Offer Registration Period" means the 1 year period
following the consummation of the Registered Exchange Offer, exclusive of any
period during which any stop

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order shall be in effect suspending the effectiveness of the Exchange Offer
Registration Statement.

                  "Exchange Offer Registration Statement" means a registration
statement of the Company on an appropriate form under the Act with respect to
the Registered Exchange Offer, all amendments and supplements to such
registration statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

                  "Exchanging Dealer" means any Holder (which may include the
Initial Purchasers) which is a broker-dealer, electing to exchange Securities
acquired for its own account as a result of market-making activities or other
trading activities, for New Securities.

                   "Holder" has the meaning set forth in the preamble hereto.

                  "Indenture" means the Indenture dated as of October 20, 1998,
as supplemented by the First Supplemental Indenture thereto relating to the
Securities dated as of October 20, 1998, as amended by Amendment No. 1 thereto
dated as of November 25, 1998, each between the Company and First Union National
Bank of North Carolina, as trustee, as the same may be amended or supplemented
from time to time in accordance with the terms thereof.

                  "Initial Placement" has the meaning set forth in the preamble
hereto.

                  "Letter of Transmittal" means the letter of transmittal to be
prepared by the Company and sent to all Holders of the Securities for use by
such Holders in connection with the Registered Exchange Offer.

                  "Majority Holders" means the Holders of a majority of the
aggregate principal amount of securities registered under a Registration
Statement.

                  "Managing Underwriters" means the investment banker or
investment bankers and manager or managers that shall administer an underwritten
offering.

                  "New Securities" means debt securities of the Company
identical in all material respects to the Securities (except that the interest
rate step-up provisions and the transfer restrictions will be modified or
eliminated, as appropriate), to be issued under the Indenture or the New
Securities Indenture.

                  "New Securities Indenture" means an indenture between the
Company and the New Securities Trustee, identical in all material respects with
the Indenture.

                  "New Securities Trustee" means a bank or trust company
reasonably satisfactory to the Initial Purchasers, as trustee with respect to
the New Securities under the New Securities Indenture.

                  "Prospectus" means the prospectus included in any Registration
Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective
Registration Statement in reliance upon Rule 430A under the Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Securities or the New Securities, covered by such

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Registration Statement, and all amendments and supplements to the Prospectus,
including post-effective amendments.

                  "Registered Exchange Offer" means the proposed offer to the
Holders to issue and deliver to such Holders, in exchange for the Securities, a
like principal amount of the New Securities.

                  "Registration Statement" means any Exchange Offer Registration
Statement or Shelf Registration Statement that covers any of the Securities or
the New Securities pursuant to the provisions of this Agreement, amendments and
supplements to such registration statement, including post-effective amendments,
in each case including the Prospectus contained therein, all exhibits thereto
and all material incorporated by reference therein.

                  "Securities" has the meaning set forth in the preamble hereto.

                  "Shelf Registration" means a registration effected pursuant to
Section 3 hereof.

                  "Shelf Registration Period" has the meaning set forth in
Section 3(b) hereof.

                  "Shelf Registration Statement" means a "shelf" registration
statement of the Company pursuant to the provisions of Section 3 hereof which
covers some or all of the Securities or New Securities, as applicable, on an
appropriate form under Rule 415 under the Act, or any similar rule that may be
adopted by the Commission, amendments and supplements to such registration
statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and all material incorporated
by reference therein.

                  "Trustee" means the trustee with respect to the Securities
under the Indenture.

                  "Underwriter" means any underwriter of securities in
connection with an offering thereof under a Shelf Registration Statement.

                  2. Registered Exchange Offer; Resales of New Securities by
Exchanging Dealers; Private Exchange. (a) The Company shall prepare and, not
later than 90 days following the Closing Date, shall file with the Commission
the Exchange Offer Registration Statement with respect to the Registered
Exchange Offer. The Company shall use its best efforts to cause the Exchange
Offer Registration Statement to become effective under the Act within 150 days
of the Closing Date.

                  (b) Upon the effectiveness of the Exchange Offer Registration
Statement, the Company shall promptly commence the Registered Exchange Offer, it
being the objective of such Registered Exchange Offer to enable each Holder
electing to exchange Securities for New Securities (assuming that such Holder is
not an affiliate of the Company within the meaning of the Act, acquires the New
Securities in the ordinary course of such Holder's business and has no
arrangements or understanding with any person to participate in the distribution
(within the meaning of the Act) of the New Securities) to trade such New
Securities from and after their receipt without any limitations or restrictions
under the Act and without material restrictions under the securities laws of a
substantial proportion of the several states of the United States.

                  (c) In connection with the Registered Exchange Offer, the
Company shall:

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

                  (ii) keep the Registered Exchange Offer open for not less than
         30 days and not more than 45 days after the date notice thereof is
         mailed to the Holders (or longer if required by applicable law);

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

                  (iv) comply in all material respects with all applicable laws.

                  (d) As soon as practicable after the close of the Registered
Exchange Offer, the Company shall:

                  (i) accept for exchange all Securities tendered and not
         validly withdrawn pursuant to the Registered Exchange Offer;

                  (ii) deliver to the Trustee for cancellation all Securities so
         accepted for exchange; and

                  (iii) cause the Trustee or the New Securities Trustee, as the
         case may be, promptly to authenticate and deliver to each Holder of
         Securities, New Securities equal in principal amount to the Securities
         of such Holder so accepted for exchange.

                  (e) The Initial Purchasers and the Company acknowledge that,
pursuant to interpretations by the Commission's staff of Section 5 of the Act,
and in the absence of an applicable exemption therefrom, each Exchanging Dealer
is required to deliver a Prospectus in connection with a sale of any New
Securities received by such Exchanging Dealer pursuant to the Registered
Exchange Offer in exchange for Securities acquired for its own account as a
result of market-making activities or other trading activities. Accordingly, the
Company shall:

                  (i) include the information set forth in Annex A hereto on the
         cover of the Exchange Offer Registration Statement, in Annex B hereto
         in the forepart of the Exchange Offer Registration Statement in a
         section setting forth details of the Exchange Offer, and in Annex C
         hereto in the underwriting or plan of distribution section of the
         Prospectus forming a part of the Exchange Offer Registration Statement,
         and include the information set forth in Annex D hereto in the letter
         of transmittal delivered pursuant to the Registered Exchange Offer; and

                  (ii) use its best efforts to keep the Exchange Offer
         Registration Statement continuously effective under the Act during the
         Exchange Offer Registration Period for delivery by Exchanging Dealers
         in connection with sales of New Securities received pursuant to the
         Registered Exchange Offer, as contemplated by Section 4(h) below. The
         Company shall be deemed not to have used its best efforts to keep the
         Exchange Offer Registration Statement effective during the requisite
         period if it voluntarily takes any action that would result in Holders
         of securities covered thereby not being able to offer and sell such
         securities during that period, unless (i) such action is required by
         applicable

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         law or (ii) such action is taken by the Company in good faith and for
         valid business reasons (not including avoidance of the Company's
         obligations hereunder), including the acquisition or divestiture of
         assets, so long as the Company promptly thereafter complies with the
         requirements of Section 4(k) hereof, if applicable.

                  (f) In the event that any Initial Purchaser determines that it
is not eligible to participate in the Registered Exchange Offer with respect to
the exchange of Securities constituting any portion of an unsold allotment, at
the request of such Initial Purchaser, the Company shall issue and deliver to
such Initial Purchaser or the party purchasing New Securities registered under a
Shelf Registration Statement as contemplated by Section 3 hereof from such
Initial Purchaser, in exchange for such Securities, a like principal amount of
New Securities. The Company shall seek to cause the CUSIP Service Bureau to
issue the same CUSIP number for such New Securities as for New Securities issued
pursuant to the Registered Exchange Offer.

                  3. Shelf Registration. If, (i) because of any change in law or
applicable interpretations thereof by the Commission's staff, the Company
determines upon advice of its outside counsel that it is not permitted to effect
the Registered Exchange Offer as contemplated by Section 2 hereof, or (ii) for
any reason the Securities validly tendered pursuant to the Registered Exchange
Offer are not exchanged for New Securities within 180 days of the Closing Date,
or (iii) any Initial Purchaser so requests with respect to Securities held by it
following consummation of the Registered Exchange Offer, or (iv) if any Holder
(other than an Initial Purchaser) is not eligible to participate in the
Registered Exchange Offer or (v) in the case of any Initial Purchaser that
participates in the Registered Exchange Offer or acquires New Securities
pursuant to Section 2(f) hereof, such Initial Purchaser does not receive freely
tradeable New Securities in exchange for Securities constituting any portion of
an unsold allotment (it being understood that, for purposes of this Section 3,
(x) the requirement that an Initial Purchaser deliver a Prospectus containing
the information required by Items 507 and/or 508 of Regulation S-K under the Act
in connection with sales of New Securities acquired in exchange for such
Securities shall result in such New Securities being not "freely tradeable" but
(y) the requirement that an Exchanging Dealer deliver a Prospectus in connection
with sales of New Securities acquired in the Registered Exchange Offer in
exchange for Securities acquired as a result of market-making activities or
other trading activities shall not result in such New Securities being not
"freely tradeable"), the following provisions shall apply:

                  (a) The Company shall as promptly as practicable (but in no
event more than 30 days after so required or requested pursuant to this Section
3), file with the Commission and thereafter shall use its best efforts to cause
to be declared effective under the Act a Shelf Registration Statement relating
to the offer and sale of the Securities or the New Securities, as applicable, by
the Holders from time to time in accordance with the methods of distribution
elected by such Holders and set forth in such Shelf Registration Statement;
provided, that with respect to New Securities received by an Initial Purchaser
in exchange for Securities constituting any portion of an unsold allotment, the
Company may, if permitted by current interpretations by the Commission's staff,
file a post-effective amendment to the Exchange Offer Registration Statement
containing the information required by Regulation S-K Items 507 and/or 508, as
applicable, in satisfaction of its obligations under this paragraph (a) with
respect thereto, and any such Exchange Offer Registration Statement, as so
amended, shall be referred to herein as, and governed by the provisions herein
applicable to, a Shelf Registration Statement.

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                  (b) The Company shall use its best efforts to keep the Shelf
Registration Statement continuously effective in order to permit the Prospectus
forming part thereof to be usable by Holders for a period of two years from the
date the Shelf Registration Statement is declared effective by the Commission or
such shorter period that will terminate when all the Securities or New
Securities, as applicable, covered by the Shelf Registration Statement have been
sold pursuant to the Shelf Registration Statement (in any such case, such period
being called the "Shelf Registration Period"). The Company shall be deemed not
to have used its best efforts to keep the Shelf Registration Statement effective
during the requisite period if it voluntarily takes any action that would result
in Holders of securities covered thereby not being able to offer and sell such
securities during that period, unless (i) such action is required by applicable
law or (ii) such action is taken by the Company in good faith and for valid
business reasons (not including avoidance of the Company's obligations
hereunder), including the acquisition or divestiture of assets, so long as the
Company promptly thereafter complies with the requirements of Section 4(k)
hereof, if applicable.

                  4. Registration Procedures. In connection with any Shelf
Registration Statement and, to the extent applicable, any Exchange Offer
Registration Statement, the following provisions shall apply:

                  (a) The Company shall furnish to you, prior to the filing
thereof with the Commission, a copy of any Shelf Registration Statement and any
Exchange Offer Registration Statement, and each amendment thereof and each
amendment or supplement, if any, to the Prospectus included therein and shall
use its best efforts to reflect in each such document, when so filed with the
Commission, such comments as you and your counsel reasonably may propose.

                  (b) The Company shall ensure that (i) any Registration
Statement and any amendment thereto and any Prospectus forming part thereof and
any amendment or supplement thereto complies in all material respects with the
Act and the rules and regulations thereunder, (ii) any Registration Statement
and any amendment thereto does not, when it becomes effective, contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading and
(iii) any Prospectus forming part of any Registration Statement, and any
amendment or supplement to such Prospectus, does not include an untrue statement
of a material fact or omit to state a material fact necessary in order to make
the statements, in the light of the circumstances under which they were made,
not misleading.

                  (c) (1) The Company shall advise you and, in the case of a
Shelf Registration Statement, the Holders of securities covered thereby, and, if
requested by you or any such Holder, confirm such advice in writing:

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

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

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                           (2) The Company shall advise you and, in the case of
         a Shelf Registration Statement, the Holders of securities covered
         thereby, and, in the case of an Exchange Offer Registration Statement,
         any Exchanging Dealer which has provided in writing to the Company a
         telephone or facsimile number and address for notices, and, if
         requested by you or any such Holder or Exchanging Dealer, confirm such
         advice in writing:

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

                           (ii) of the receipt by the Company of any
                  notification with respect to the suspension of the
                  qualification of the securities included therein for sale in
                  any jurisdiction or the initiation or threatening of any
                  proceeding for such purpose; and

                           (iii) of the happening of any event that requires the
                  making of any changes in the Registration Statement or the
                  Prospectus so that, as of such date, the statements therein
                  are not misleading and do not omit to state a material fact
                  required to be stated therein or necessary to make the
                  statements therein (in the case of the Prospectus, in light of
                  the circumstances under which they were made) not misleading
                  (which advice shall be accompanied by an instruction to
                  suspend the use of the Prospectus until the requisite changes
                  have been made).

                  (d) The Company shall use its best efforts to obtain the
withdrawal of any order suspending the effectiveness of any Registration
Statement at the earliest possible time.

                  (e) The Company shall furnish to each Holder of securities
included within the coverage of any Shelf Registration Statement, without
charge, at least one copy of such Shelf Registration Statement and any
post-effective amendment thereto, including financial statements and schedules,
and, if the Holder so requests in writing, all exhibits (including those
incorporated by reference).

                  (f) The Company shall, during the Shelf Registration Period,
deliver to each Holder of securities included within the coverage of any Shelf
Registration Statement, without charge, as many copies of the Prospectus
(including each preliminary Prospectus) included in such Shelf Registration
Statement and any amendment or supplement thereto as such Holder may reasonably
request; and the Company consents to the use of the Prospectus or any amendment
or supplement thereto by each of the selling Holders of securities in connection
with the offering and sale of the securities covered by the Prospectus or any
amendment or supplement thereto.

                  (g) The Company shall furnish to each Exchanging Dealer which
so requests, without charge, at least one copy of the Exchange Offer
Registration Statement and any post-effective amendment thereto, including
financial statements and schedules, any documents incorporated by reference
therein, and, if the Exchanging Dealer so requests in writing, all exhibits
(including those incorporated by reference).

                  (h) The Company shall, during the Exchange Offer Registration
Period, promptly deliver to each Exchanging Dealer, without charge, as many
copies of the Prospectus included in

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such Exchange Offer Registration Statement and any amendment or supplement
thereto as such Exchanging Dealer may reasonably request for delivery by such
Exchanging Dealer in connection with a sale of New Securities received by it
pursuant to the Registered Exchange Offer; and the Company consents to the use
of the Prospectus or any amendment or supplement thereto by any such Exchanging
Dealer, as aforesaid.

                  (i) Prior to the Registered Exchange Offer or any other
offering of securities pursuant to any Registration Statement, the Company shall
register or qualify or cooperate with the Holders of securities included therein
and their respective counsel in connection with the registration or
qualification of such securities for offer and sale under the securities or blue
sky laws of such jurisdictions as any such Holders reasonably request in writing
and do any and all other acts or things necessary or advisable to enable the
offer and sale in such jurisdictions of the securities covered by such
Registration Statement;

         provided, however, that the Company will not be required to qualify
generally to do business in any jurisdiction where it is not then so qualified
or to take any action which would subject it to general service of process or to
taxation in any such jurisdiction where it is not then so subject.

                  (j) The Company shall cooperate with the Holders of securities
to facilitate the timely preparation and delivery of certificates representing
securities to be sold pursuant to any Registration Statement free of any
restrictive legends and in such denominations and registered in such names as
Holders may request prior to sales of securities pursuant to such Registration
Statement.

                  (k) Upon the occurrence of any event contemplated by paragraph
(c)(2)(iii) above, the Company shall promptly prepare a post-effective amendment
to any Registration Statement or an amendment or supplement to the related
Prospectus or file any other required document so that, as thereafter delivered
to purchasers of the securities included therein, the Prospectus will not
include an untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

                  (l) Not later than the effective date of any such Registration
Statement hereunder, the Company shall provide a CUSIP number for the Securities
or New Securities, as the case may be, registered under such Registration
Statement, and provide the applicable trustee with printed certificates for such
Securities or New Securities, in a form eligible for deposit with The Depository
Trust Company.

                  (m) The Company shall use its best efforts to comply with all
applicable rules and regulations of the Commission and shall make generally
available to Holders as soon as practicable after the effective date of the
applicable Registration Statement an earnings statement satisfying the
provisions of Section 11(a) of the Act.

                  (n) The Company shall cause the Indenture or the New
Securities Indenture, as the case may be, to be qualified under the Trust
Indenture Act in a timely manner.

                  (o) The Company may require each Holder of securities to be
sold pursuant to any Shelf Registration Statement to furnish to the Company such
information regarding the

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Holder and the distribution of such securities as the Company may from time to
time reasonably require for inclusion in such Registration Statement.

                  (p) The Company shall, if requested, promptly incorporate in a
Prospectus supplement or post-effective amendment to a Shelf Registration
Statement, such information as the Managing Underwriters and Majority Holders
reasonably agree should be included therein and shall make all required filings
of such Prospectus supplement or post-effective amendment as soon as notified of
the matters to be incorporated in such Prospectus supplement or post-effective
amendment.

                  (q) In the case of any Shelf Registration Statement, the
Company shall enter into such agreements (including underwriting agreements) and
take all other appropriate actions in order to expedite or facilitate the
registration or the disposition of the securities, and in connection therewith,
if an underwriting agreement is entered into, cause the same to contain
indemnification provisions and procedures no less favorable than those set forth
in Section 7 (or such other provisions and procedures acceptable to the Majority
Holders and the Managing Underwriters, if any) with respect to all parties to be
indemnified pursuant to Section 7 from Holders of Securities to the Company.

                  (r) In the case of any Shelf Registration Statement, the
Company shall (i) make reasonably available for inspection by the Holders of
securities to be registered thereunder, any underwriter participating in any
disposition pursuant to such Registration Statement, and any attorney,
accountant or other agent retained by the Holders or any such underwriter such
financial and other books and records of the Company as shall be necessary to
conduct a reasonable investigation; (ii) cause the Company's officers, directors
and employees to supply all relevant information reasonably requested by such
Holders or any such underwriter, attorney, accountant or agent in connection
with any such Registration Statement as is customary for similar due diligence
examinations; provided, however, that any information that is designated in
writing by the Company, in good faith, as confidential at the time of delivery
of such information shall be kept confidential by such Holders or any such
underwriter, attorney, accountant or agent, unless such disclosure is made in
connection with a court proceeding or required by law, or such information
becomes available to the public generally or through a third party without an
accompanying obligation of confidentiality; (iii) make such representations and
warranties to the Holders of securities registered thereunder and the
underwriters, if any, in form, substance and scope as are customarily made by
issuers to underwriters in primary underwritten offerings and covering matters
including, but not limited to, those set forth in the Purchase Agreement; (iv)
obtain opinions of counsel to the Company and updates thereof (which counsel and
opinions (in form, scope and substance) shall be reasonably satisfactory to the
Managing Underwriters, if any) addressed to each selling Holder and the
underwriters, if any, covering such matters as are customarily covered in
opinions requested in underwritten offerings and such other matters as may be
reasonably requested by such Holders and underwriters; (v) obtain "cold comfort"
letters and updates thereof from the independent certified public accountants of
the Company (and, if necessary, any other independent certified public
accountants of any subsidiary of the Company or of any business acquired by the
Company for which financial statements and financial data are, or are required
to be, included in the Registration Statement), addressed to each selling Holder
of securities registered thereunder and the underwriters, if any, in customary
form and covering matters of the type customarily covered in "cold comfort"
letters in connection with primary underwritten offerings; and (vi) deliver such
documents and certificates as may be

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reasonably requested by the Majority Holders and the Managing Underwriters, if
any, including those to evidence compliance with Section 4(k) and with any
customary conditions contained in the underwriting agreement or other agreement
entered into by the Company. The foregoing actions set forth in clauses (iii),
(iv), (v) and (vi) of this Section 4(r) shall be performed at (A) the
effectiveness of such Registration Statement and each post-effective amendment
thereto and (B) each closing under any underwriting or similar agreement as and
to the extent required thereunder.

                  (s) In the case of any Exchange Offer Registration Statement,
the Company shall (i) make reasonably available for inspection by any Initial
Purchaser, and any attorney, accountant or other agent retained by any Initial
Purchaser, such financial and other information and books and records of the
Company as shall be necessary to conduct a reasonable investigation; (ii) cause
the Company's officers, directors and employees to supply all relevant
information reasonably requested by such Initial Purchaser or any such attorney,
accountant or agent in connection with any such Registration Statement as is
customary for similar due diligence examinations; provided, however, that any
information that is designated in writing by the Company, in good faith, as
confidential at the time of delivery of such information shall be kept
confidential by such Initial Purchaser or any such attorney, accountant or
agent, unless such disclosure is made in connection with a court proceeding or
required by law, or such information becomes available to the public generally
or through a third party without an accompanying obligation of confidentiality;
(iii) make such representations and warranties to such Initial Purchaser, in
form, substance and scope as are customarily made by issuers to underwriters in
primary underwritten offerings and covering matters including, but not limited
to, those set forth in the Purchase Agreement; (iv) obtain opinions of counsel
to the Company and updates thereof (which counsel and opinions (in form, scope
and substance) shall be reasonably satisfactory to such Initial Purchaser and
its counsel, addressed to such Initial Purchaser, covering such matters as are
customarily covered in opinions requested in underwritten offerings and such
other matters as may be reasonably requested by such Initial Purchaser or its
counsel; (v) obtain "cold comfort" letters and updates thereof from the
independent certified public accountants of the Company (and, if necessary, any
other independent certified public accountants of any subsidiary of the Company
or of any business acquired by the Company for which financial statements and
financial data are, or are required to be, included in the Registration
Statement), addressed to such Initial Purchaser, in customary form and covering
matters of the type customarily covered in "cold comfort" letters in connection
with primary underwritten offerings, or if requested by such Initial Purchaser
or its counsel in lieu of a "cold comfort" letter, an agreed-upon procedures
letter under Statement on Auditing Standards No. 35, covering matters requested
by such Initial Purchaser or its counsel; and (vi) deliver such documents and
certificates as may be reasonably requested by such Initial Purchaser or its
counsel, including those to evidence compliance with Section 4(k) and with
conditions customarily contained in underwriting agreements. The foregoing
actions set forth in clauses (iii), (iv), (v), and (vi) of this Section 4(s)
shall be performed at the close of the Registered Exchange Offer and the
effective date of any post-effective amendment to the Exchange Offer
Registration Statement.

                  5. Special Interest Under Certain Circumstances. In the event
that (i) the Exchange Offer Registration Statement or a Shelf Registration
Statement, as the case may be, has not been filed with the Commission on or
prior to the 90th day following the Closing Date (or in the case of a Shelf
Registration Statement required to be filed pursuant to clause (i) of the first
paragraph of Section 3, within 60 days after publication of the change in law or

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interpretation); (ii) either the Exchange Offer Registration Statement or the
Shelf Registration Statement, as the case may be, has not been declared
effective prior to the 150th day following the Closing Date (or in the case of a
Shelf Registration Statement required to be filed pursuant to clause (i) of the
first paragraph of Section 3, if later, within 60 days after publication of the
change in law or interpretation); (iii) the Registered Exchange Offer has not
been consummated prior to the 180th day following the Closing Date; or (iv)
after the Shelf Registration Statement has been declared effective, such Shelf
Registration Statement thereafter ceases to be effective or usable in connection
with resales of Securities or New Securities in accordance with and during the
periods specified in Section 3(b) hereof (because either (A) any event occurs as
a result of which the related Prospectus forming part of such Shelf Registration
Statement would include any untrue statement of a material fact or omit to state
any material fact necessary to make the statements therein in the light of the
circumstances under which they were made not misleading or (B) it shall be
necessary to amend such Shelf Registration Statement or supplement the related
prospectus, to comply with the Securities Act or the Exchange Act or the
respective rules thereunder) without, in the case of (A) or (B), being succeeded
within 30 days by an amended or an additional Shelf Registration Statement filed
and declared effective (each such event referred to in clauses (i) through (iv)
a "Registration Default"), interest ("Special Interest") will accrue and be
payable semi-annually on the Securities and the New Securities which are the
subject of such Registration Default (in addition to the stated interest on the
Securities and the New Securities) from and including the date such Registration
Default occurs to but excluding the date, as applicable, on which the applicable
Registration Statement is filed or is declared effective, the Registered
Exchange Offer is consummated or the Shelf Registration Statement again becomes
effective, as the case may be. During the time that Special Interest is accruing
continuously the rate of such Special Interest shall be 0.25% per annum during
the 30-day period immediately following the occurence of any Registration
Default and shall increase by 0.25% per annum for each subsequent 30-day period,
but in no event shall such rate exceed 1.50% per annum in the aggregate
regardless of the number of Registration Defaults. If, after the cure of a
Registration Default, there is a subsequent Registration Default, the Special
Interest rate for such subsequent Registration Default shall initially be 0.25%,
regardless of the Special Interest Rate in effect with respect to any prior
Registration Default at the time of the cure of such Registration Default.

                  6. Registration Expenses. The Company shall bear all expenses
incurred in connection with the performance of its obligations under Sections 2,
3 and 4 hereof and, in the event of any Shelf Registration Statement, will
reimburse the Holders for the reasonable fees and disbursements of one firm or
counsel designated by the Majority Holders to act as counsel for the Holders in
connection therewith, and, in the case of any Exchange Offer Registration
Statement, will reimburse the Initial Purchasers for the reasonable fees and
disbursements of counsel acting in connection therewith. Notwithstanding the
foregoing, the Holders of any Securities or New Securities being registered on
the Shelf Registration Statement shall pay all agency or brokerage fees and
commissions and underwriting discounts and commissions attributable to the sale
of such Securities or New Securities and the fees and disbursements of any
counsel retained by such Holders other than counsel referred to above.

                  7. Indemnification and Contribution. (a) In connection with
any Registration Statement, the Company agrees to indemnify and hold harmless
each Holder of securities covered thereby (including each Initial Purchaser and,
with respect to any Prospectus delivery as contemplated in Section 4(h) hereof,
each Exchanging Dealer), the directors, officers,

<PAGE>   12
                                                                              12

employees and agents of each such Holder and each person who controls any such
Holder within the meaning of either the Act or the Exchange Act against any and
all losses, claims, damages or liabilities, joint or several, to which they or
any of them may become subject under the Act, the Exchange Act or other Federal
or state statutory law or regulation, at common law or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement as originally filed
or in any amendment thereof, or in any preliminary Prospectus or Prospectus, or
in any amendment thereof or supplement thereto, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading,
and agrees to reimburse each such indemnified party, as incurred, for any legal
or other expenses reasonably incurred by them in connection with investigating
or defending any such loss, claim, damage, liability or action; provided,
however, that the Company will not be liable in any case to the extent that any
such loss, claim, damage or liability arises out of or is based upon any such
untrue statement or alleged untrue statement or omission or alleged omission
made therein in reliance upon and in conformity with written information
furnished to the Company by or on behalf of any such Holder specifically for
inclusion therein (the "Holder's Purchase Information"). This indemnity
agreement will be in addition to any liability which the Company may otherwise
have.

                  The Company also agrees to indemnify or contribute to Losses
of, as provided in Section 7(d), any underwriters of Securities registered under
a Shelf Registration Statement, their officers and directors and each person who
controls such underwriters on substantially the same basis as that of the
indemnification of the Initial Purchasers and the selling Holders provided in
this Section 7(a) and shall, if requested by any Holder, enter into an
underwriting agreement reflecting such agreement, as provided in Section 4(q)
hereof.

                  (b) Each Holder of securities covered by a Registration
Statement (including each Initial Purchaser and, with respect to any Prospectus
delivery as contemplated in Section 4(h) hereof, each Exchanging Dealer)
severally agrees to indemnify and hold harmless (i) the Company, (ii) each of
its directors, (iii) each of its officers who signs such Registration Statement
and (iv) each person who controls the Company within the meaning of either the
Act or the Exchange Act to the same extent as the foregoing indemnity from the
Company to each such Holder, but only with reference to written information
relating to such Holder furnished to the Company by or on behalf of such Holder
specifically for inclusion in the documents referred to in the foregoing
indemnity (together with the Holder's Purchase Information, the "Written
Information"). This indemnity agreement will be in addition to any liability
which any such Holder may otherwise have.

                  (c) Promptly after receipt by an indemnified party under this
Section 7 of notice of the commencement of any action, such indemnified party
will, if a claim in is respect thereof is to be made against the indemnifying
party under this Section 7, notify the indemnifying party in writing of the
commencement thereof; but the failure so to notify the indemnifying party (i)
will not relieve the indemnifying party from liability under paragraph (a) or
(b) above unless and to the extent the indemnifying party did not otherwise
learn of such action and such failure results in the forfeiture by the
indemnifying party of substantial rights and defenses and (ii) will not, in any
event, relieve the indemnifying party from any obligations to any indemnified
party other than the indemnification obligation provided in paragraph (a) or (b)

<PAGE>   13
                                                                              13

above. The indemnifying party shall be entitled to appoint counsel of the
indemnifying party's choice at the indemnifying party's expense to represent the
indemnified party in any action for which indemnification is sought (in which
case the indemnifying party shall not thereafter be responsible for the fees and
expenses of any separate counsel retained by the indemnified party or parties
except as set forth below); provided, however, that such counsel shall be
reasonably satisfactory to the indemnified party. Notwithstanding the
indemnifying party's election to appoint counsel to represent the indemnified
party in an action, the indemnified party shall have the right to employ
separate counsel (including local counsel), and the indemnifying party shall
bear the reasonable fees, costs and expenses of such separate counsel (and local
counsel) if (i) the use of counsel chosen by the indemnifying party to represent
the indemnified party would present such counsel with a conflict of interest,
(ii) the actual or potential defendants in, or targets of, any such action
include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there may be legal
defenses available to it and/or other indemnified parties which are different
from or additional to those available to the indemnifying party, (iii) the
indemnifying party shall not have employed counsel satisfactory to the
indemnified party to represent the indemnified party within a reasonable time
after notice of the institution of such action or (iv) the indemnifying party
shall authorize the indemnified party to employ separate counsel at the expense
of the indemnifying party. No indemnifying party shall be liable for any
settlement of any such action effected without its written consent (which
consent shall not be unreasonably withheld), but if settled with its written
consent or if there be a final judgment for the plaintiff in any such action,
the indemnifying party agrees to indemnify and hold harmless any indemnified
party from and against any loss or liability by reason of such settlement or
judgment. An indemnifying party will not, without the prior written consent of
the indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability
arising out of such claim, action, suit or proceeding.

                  (d) In the event that the indemnity provided in paragraph (a)
or (b) of this Section 7 is unavailable to or insufficient to hold harmless an
indemnified party for any reason, then each applicable indemnifying party, in
lieu of indemnifying such indemnified party, shall have a joint and several
obligation to contribute to the aggregate losses, claims, damages and
liabilities (including legal or other expenses reasonably incurred in connection
with investigating or defending same) (collectively, "Losses") to which such
indemnified party may be subject in such proportion as is appropriate to reflect
the relative benefits received by such indemnifying party, on the one hand, and
such indemnified party, on the other hand, from the Initial Placement and the
Registration Statement which resulted in such Losses; provided, however, that in
no case shall any Initial Purchaser or any subsequent Holder of any Security or
New Security be responsible, in the aggregate, for any amount in excess of the
purchase discount or commission applicable to such Security, or in the case of a
New Security, applicable to the Security which was exchangeable into such New
Security, as set forth on the cover page of the Final Memorandum, nor shall any
underwriter be responsible for any amount in excess of the underwriting discount
or commission applicable to the securities purchased by such underwriter under
the Registration Statement which resulted in such Losses. If the allocation
provided by the immediately preceding sentence is unavailable for any reason,
the indemnifying party and the indemnified party shall contribute in such
proportion as is appropriate to reflect not only such

<PAGE>   14
                                                                              14

relative benefits but also the relative fault of such indemnifying party, on the
one hand, and such indemnified party, on the other hand, in connection with the
statements or omissions which resulted in such Losses as well as any other
relevant equitable considerations. Benefits received by the Company shall be
deemed to be equal to the sum of (x) the total net proceeds from the Initial
Placement (before deducting expenses) as set forth on the cover page of the
Final Memorandum and (y) the total amount of additional interest which the
Company was not required to pay as a result of registering the securities
covered by the Registration Statement which resulted in such Losses. Benefits
received by the Initial Purchasers shall be deemed to be equal to the total
purchase discounts and commissions as set forth on the cover page of the Final
Memorandum, and benefits received by any other Holders shall be deemed to be
equal to the value of receiving Securities or New Securities, as applicable,
registered under the Act. Benefits received by any underwriter shall be deemed
to be equal to the total underwriting discounts and commissions, as set forth on
the cover page of the Prospectus forming a part of the Registration Statement
which resulted in such Losses. Relative fault shall be determined by reference
to whether any alleged untrue statement or omission relates to information
provided by the indemnifying party, on the one hand, or by the indemnified
party, on the other hand. The parties agree that it would not be just and
equitable if contribution were determined by pro rata allocation or any other
method of allocation which does not take account of the equitable considerations
referred to above. Notwithstanding the provisions of this paragraph (d), no
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. No person whose loss, claim, damage
or liability arises out of or is based upon such person's Written Information
shall be entitled to contribution. For purposes of this Section 7, each person
who controls a Holder within the meaning of either the Act or the Exchange Act
and each director, officer, employee and agent of such Holder shall have the
same rights to contribution as such Holder, and each person who controls the
Company within the meaning of either the Act or the Exchange Act, each officer
of the Company who shall have signed the Registration Statement and each
director of the Company shall have the same rights to contribution as the
Company, subject in each case to the applicable terms and conditions of this
paragraph (d).

                  (e) The provisions of this Section 7 will remain in full force
and effect, regardless of any investigation made by or on behalf of any Holder
or the Company or any of the officers, directors or controlling persons referred
to in Section 7 hereof, and will survive the sale by a Holder of securities
covered by a Registration Statement.

                  8. Underwritten Offerings. No Holder may participate in any
underwritten Shelf Registration Statement hereunder unless such Holder (i)
agrees to sell such Holder's Securities on the basis provided in any
underwriting arrangements entered into in connection therewith and (ii)
completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents reasonably required under the terms
of such underwriting arrangements.

                  9. Miscellaneous.

                  (a) No Inconsistent Agreements. The Company has not, as of the
date hereof, entered into, nor shall it, on or after the date hereof, enter
into, any agreement with respect to its securities that is inconsistent with the
rights granted to the Holders herein or otherwise conflicts with the provisions
hereof.

<PAGE>   15
                                                                              15

                  (b) Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, qualified,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless the Company has obtained the written
consent of the Holders of at least a majority of the then outstanding aggregate
principal amount of Securities (or, after the consummation of any Exchange Offer
in accordance with Section 2 hereof, of Securities and New Securities); provided
that, with respect to any matter that directly or indirectly affects the rights
of any Initial Purchaser hereunder, the Company shall obtain the written consent
of each such Initial Purchaser against which such amendment, qualification,
supplement, waiver or consent is to be effective. Notwithstanding the foregoing
(except the foregoing proviso), a waiver or consent to departure from the
provisions hereof with respect to a matter that relates exclusively to the
rights of Holders whose securities are being sold pursuant to a Registration
Statement and that does not directly or indirectly affect the rights of other
Holders may be given by the Majority Holders, determined on the basis of
securities being sold rather than registered under such Registration Statement.

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

                           (1) if to a Holder, at the most current address given
         by such holder to the Company in accordance with the provisions of this
         Section 9(c), which address initially is, with respect to each Holder,
         the address of such Holder maintained by the Registrar under the
         Indenture, with a copy in like manner to Salomon Brothers Inc;

                           (2) if to you, initially at the respective addresses
         set forth in the Purchase Agreement; and

                           (3) if to the Company, initially at its address set
         forth in the Purchase Agreement.

                  All such notices and communications shall be deemed to have
been duly given when received.

                  The Initial Purchasers or the Company by notice to the other
may designate additional or different addresses for subsequent notices or
communications.

                  (d) Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the
parties, including, without the need for an express assignment or any consent by
the Company thereto, subsequent Holders of Securities and/or New Securities. The
Company hereby agrees to extend the benefits of this Agreement to any Holder of
Securities and/or New Securities and any such Holder may specifically enforce
the provisions of this Agreement as if an original party hereto.

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

<PAGE>   16
                                                                              16

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

                  (g) Governing Law. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of New York
applicable to agreements made and to be performed in said State.

                  (h) Severability.In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstances, is
held invalid, illegal or unenforceable in any respect for any reason, the
validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions hereof shall not be in any way impaired
or affected thereby, it being intended that all of the rights and privileges of
the parties shall be enforceable to the fullest extent permitted by law.

                  (i) Securities Held by the Company, etc. Whenever the consent
or approval of Holders of a specified percentage of principal amount of
Securities or New Securities is required hereunder, Securities or New
Securities, as applicable, held by the Company or its Affiliates (other than
subsequent Holders of Securities or New Securities if such subsequent Holders
are deemed to be Affiliates solely by reason of their holdings of such
Securities or New Securities) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

<PAGE>   17
                                                                              17

                  Please confirm that the foregoing correctly sets forth the
agreement between the Company and the Initial Purchasers.

                                        Very truly yours,

                                        COGENTRIX ENERGY, INC.

                                        By:
                                           -------------------------------------
                                           Name:  Thomas F. Schwartz
                                           Title: Group Senior Vice President -
                                                  Chief Financial Officer

Accepted in New York, New York

September 22, 2000

SALOMON SMITH BARNEY, INC.
CIBC WORLD MARKETS CORP.

By: SALOMON SMITH BARNEY, INC.

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

<PAGE>   18

                                                                         ANNEX A

                  Each broker-dealer that receives New Securities for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
Prospectus in connection with any resale of such New Securities. The Letter of
Transmittal states that by so acknowledging and by delivering a Prospectus, a
broker-dealer will not be deemed to admit that it is an "underwriter" within the
meaning of the Securities Act. This Prospectus, as it may be amended or
supplemented from time to time, may be used by a broker-dealer in connection
with resales of New Securities received in exchange for Securities where such
New Securities were acquired by such broker-dealer as a result of market-making
activities or other trading activities. The Company has agreed that, starting on
the Expiration Date (as defined herein) and ending on the close of business on
the first anniversary of the Expiration Date, it will make this Prospectus
available to any broker-dealer for use in connection with any such resale. See
"Plan of Distribution."

<PAGE>   19

                                                                         ANNEX B

                  Each broker-dealer that receives New Securities for its own
account in exchange for Securities, where such Securities were acquired by such
broker-dealer as a result of market making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection
with any resale of such New Securities. See "Plan of Distribution."

<PAGE>   20

                                                                         ANNEX C

                              PLAN OF DISTRIBUTION

                  Each broker-dealer that receives New Securities for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such New Securities. This
Prospectus, as it may be amended or supplemented from time to time, may be used
by a broker-dealer in connection with resales of New Securities received in
exchange for Securities where such Securities were acquired as a result of
market-making activities or other trading activities. The Company has agreed
that, starting on the Expiration Date and ending on the close of business on the
first anniversary of the Expiration Date, it will make this Prospectus, as
amended or supplemented, available to any broker-dealer for use in connection
with any such resale.

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

                  For a period of 1 year after the Expiration Date, the Company
will promptly send additional copies of this Prospectus and any amendment or
supplement to this Prospectus to any broker-dealer that requests such documents
in the Letter of Transmittal. The Company has agreed to pay all expenses
incident to the Exchange Offer (including the expenses of one counsel for the
holders of the Securities) other than commissions or concessions of any brokers
or dealers and will indemnify the holders of the securities (including any
broker-dealers) against certain liabilities, including liabilities under the
Securities Act.

                  [If applicable, add information required by Regulation S-K
Items 507 and/or 508.]

<PAGE>   21

                                                                         ANNEX D

                                     Rider A

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

                  Name:

                  Address:

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

                                     Rider B

                  If the undersigned is not a broker-dealer, the undersigned
represents that it is not engaged in, and does not intend to engage in, a
distribution of New Securities. If the undersigned is a broker-dealer that will
receive New Securities for its own account in exchange for Securities, it
represents that the Securities to be exchanged for New Securities were acquired
by it as a result of market-making activities or other trading activities and
acknowledges that it will deliver a prospectus in connection with any resale of
such New Securities; however, by so acknowledging and by delivering a
prospectus, the undersigned will not be deemed to admit that it is an
"underwriter" within the meaning of the Securities Act.<PAGE>   1
                                                                   EXHIBIT 10.40
                              EMPLOYMENT AGREEMENT

                  THIS EMPLOYMENT AGREEMENT, dated as of August 11, 2000 (the
"Agreement"), is made by and between COGENTRIX ENERGY, INC., a North Carolina
corporation (the "Company"), and David J. Lewis, a resident of Charlotte, North
Carolina (the "Employee").

                  WHEREAS, the Company is in the business of developing and
operating independent power and cogeneration facilities (the "Business"); and

                  WHEREAS, the Company and the Employee are mutually desirous
that the Company employ the Employee, and the Employee accept employment, as
Chairman of the Board ("Chairman") and Chief Executive Officer of the Company
upon the terms and conditions hereinafter set forth.

                  NOW, THEREFORE, in consideration of the foregoing and of the
respective covenants and agreements of the parties herein contained, the Company
and the Employee hereby agree as follows:

                  1. Duties.

                  1.1 During the Term (as defined below), the Employee shall be
the Chairman and Chief Executive Officer of the Company (or such other and
comparable titles and positions as shall be given the Employee by the Board of
Directors of the Company (the "Board")), shall faithfully perform for the
Company the duties of said offices and shall perform such other duties of an
executive nature as shall be requested from time to time by the Board of the
Company. The Employee shall have such corporate power and authority as are
necessary to perform the duties of such office and any other office(s) that are
so assigned to him. The Employee shall report directly to the Board. The
Employee shall devote substantially all of his business time and effort to the
performance of his duties hereunder, shall use his best efforts to advance the
best interests of the Company and shall not engage in outside business
activities which materially interfere with the performance of his duties
hereunder.

                  1.2 The duties to be performed by the Employee hereunder shall
be performed primarily in Charlotte, North Carolina, subject to reasonable
travel requirements on behalf of the Company. The Company shall not relocate the
Employee outside of Charlotte, North Carolina, without his prior written
consent.

                  2. Term. Unless sooner terminated in accordance with the
provisions of section 4, the Company hereby employees the Employee, and the
Employee hereby accepts such employment, for a term commencing on August 11,
2000 (the "Commencement Date"), and ending on the fifth anniversary of the
Commencement Date, except that this five year term shall be automatically
extended one year, creating a new five year term, on each anniversary of the
Commencement Date, unless the Board, based on a vote of two-thirds of the
directors then in office, or Employee, gives notice to the other party at least
ninety (90) days prior to an

<PAGE>   2

anniversary of the Commencement Date that the then five year term shall not be
extended for an additional year.

                  3. Compensation.

                  3.1 Base Salary. During the Term and subject to the next
sentence of this Section 3.1, the Employee shall be compensated at the annual
rate of $610,152.00 ("Base Salary"), payable on a monthly basis in accordance
with the Company's standard payroll procedures. At the beginning of each
calendar year, the Base Salary shall be increased by an amount, if positive,
which will reflect increases in the cost of living in accordance with the
Company's standard policies and procedures.

                  3.2 Incentive Compensation. In addition to the Base Salary,
the Employee shall be entitled to receive a cash bonus ("Bonus") in an amount to
be determined in the sole discretion of the Board following the conclusion of
each fiscal year of the Company during the Term. In fixing the amount of the
Employee's Bonus, the Board will consider the change in (i) total business
return (TBR), (ii) net income, (iii) generating capacity (iv) the incentive
compensation paid to executives at the Company and to similarly situated
employees at similarly performing companies, and (v) such other metrics as the
Board deems relevant in gauging the Employee's performance for the past fiscal
year. Any Bonus to which the Employee is entitled under this Section 3.2 shall
be paid to the Employee during the month of March immediately following the
fiscal year to which such Bonus relates in a manner consistent with the
Company's past practice with respect to the payment of bonuses.

                  3.3 Profit Sharing. The Employee shall be entitled to
participate in the Company's existing profit sharing plan (the "Plan"). The
Employee shall be entitled to receive an amount in cash (a "Plan Distribution")
equal to the product of (i) 1.25% and (ii) the Company's net income before taxes
for each fiscal year of the Company commencing with fiscal year 2000 and
continuing through the Term. The Employee shall receive a pro-rated portion of
any Plan Distribution for any partial fiscal year during the Term. Subject to
the next sentence of this Section 3.3, Plan Distributions shall be paid in
accordance with the terms of the Plan in a manner consistent with the Company's
past practice. Notwithstanding anything to the contrary in this Agreement or the
Plan, the Employee and the Company agree that the Employee's entitlement to
receive Plan Distributions under the Plan upon termination of the Employee's
employment during the Term of this Agreement for any reason (other than under
Section 4.2) shall be governed by this Agreement and not the Plan to the extent
of any conflict or inconsistency between this agreement and the plan.

                  3.4 Expenses. Upon submission of appropriate invoices or
vouchers, the Company shall pay or reimburse the Employee for all reasonable
expenses actually incurred or paid by him during the Term in the performance of
his duties hereunder.

                  3.5 Participation in Benefit Plans. The Employee shall be
entitled to participate in any health benefit or other employee benefit plans
available to the Company's key employees as in effect from time to time, to the
extent that he may be eligible to do so under the applicable provisions of any
such plan.

                                       2
<PAGE>   3

                  3.6 Vacation. The Employee shall be entitled to 6 weeks of
annual vacation and shall otherwise be subject to the Company's standard
vacation policy applicable to someone of his position and seniority. Unused
vacation shall not be carried over into any subsequent year during the Term. The
Company shall have no obligation to pay the Employee for any unused vacation,
except as provided in Section 4.4.

                  3.7. Insurance. In addition to providing Employee the
insurance coverage required under Section 3.5, the Company shall, at its sole
cost and expense, provide for the benefit of the Employee during the Term a term
life insurance policy in the amount of $10 million, which policy shall be owned
by the Employee. The Company shall pay the Employee such amounts in cash as are
necessary during the Term to pay any income tax liability the Employee may incur
in connection with or arising out of (i) the term life insurance policy
described above and (ii) the Company's agreement to pay any such income tax
liability arising therefrom. Upon termination of employment and upon fulfillment
of any Company obligation that may arise under Section 4 to continue providing
the insurance coverage contemplated by this Section, the Employee shall have the
right, at his sole cost and expense, to assume the insurance policy described
above.

                  4. Termination. The Employee's employment hereunder may be
terminated only upon the expiration of the Term of this Agreement pursuant to
Section 2 above or under the following circumstances:

                  4.1 Death. The Employee's employment hereunder shall terminate
automatically upon his death, in which event the Company shall pay to the
Employee's written designee or, if he has no written designee, to his spouse or,
if he leaves no spouse and has no written designee, to his estate, (i) accrued
but unpaid Base Salary through the date of death, (ii) Base Salary payable for
the remainder of the Term, such amounts to be paid in the same manner through
the remainder of the term as if the Employee's employment were not terminated,
(iii) accrued but unpaid Bonus through the date of death and (iv) all reasonable
expenses actually incurred or paid by the Employee in the performance of his
duties hereunder prior to the date of death.

                  4.2 Disability. The Company may terminate the Employee's
employment hereunder if (i) as a result of the Employee's incapacity due to
physical or mental illness, the Employee shall have been absent from his duties
hereunder on a full-time basis for an aggregate of 180 consecutive or
non-consecutive business days in any 12 consecutive-month period and (ii) within
10 days after written notice of termination hereunder is given by the Company,
the Employee shall not have returned to the performance of his duties hereunder
on a full-time basis. The determination of incapacity or disability under the
preceding sentence shall be made in good faith by the Company based upon
information supplied by a physician selected by the Company or its insurers and
reasonably acceptable to the Employee or his legal representative. During any
period that the Employee fails to perform his duties hereunder as a result of
incapacity due to physical or mental illness (the "Disability Period"), the
Employee shall continue to receive his full Base Salary hereunder until his
employment is terminated pursuant to this Section 4.2, provided that amounts
payable to the Employee shall be reduced by the sum of the amounts, if

                                       3
<PAGE>   4

any, paid to the Employee during the Disability Period under any disability
benefit plans of the Company. Upon termination pursuant to this paragraph 4.2,
Employee shall continue to receive his full Base Salary payable for the
remainder of the Term, such amounts to be paid in the same manner through the
remainder of the Term as if the Employee's employment were not terminated,
provided that amounts payable to the Employee shall be reduced by the sum of the
amounts, if any, paid to the Employee during the remainder of the Term under any
disability benefit plans of the Company.

                  4.3 Termination by the Company.

                  4.3.1 The Company (i) shall have "cause" to terminate the
Employee's employment hereunder upon the Employee (A) being convicted of a
felony, a crime of moral turpitude or any crime involving the Company (other
than pursuant to actions taken at the direction or with the approval of the
Board), (B) being found by reasonable determination of the Board, made in good
faith, and as the result of a vote of at least two-thirds of the directors then
in office, to have engaged in (1) willful misconduct, (2) willful or gross
neglect, (3) fraud, (4) misappropriation or (5) embezzlement in the performance
of his duties hereunder or (C) having breached in any material respect the terms
and provisions of this Agreement and failed to cure such breach within 15 days
following written notice from the Company specifying such breach and (ii) may
terminate the Employee's employment for "cause" based on a vote of at least
two-thirds of the Directors then in office by issuing a written notice to the
Employee at any time following the occurrence of any of the events described in
clauses (i)(A) and (i)(B) above and on written notice given to the Employee at
any time not less than 60 days following the occurrence of any of the events
described in clause (i)(C) above. In the event the Employee's employment is
terminated by the Company for "cause", the Employee shall be entitled to
continue to receive Base Salary accrued but unpaid and expenses incurred but not
repaid to the Employee, in each case only until the effective date of such
termination.

                  4.3.2 In the event the Employee's employment is terminated by
the Company other than for "cause", the Employee shall be entitled to continue
to receive (i) Base Salary, (ii) an amount equal to the average Bonus paid to
the Employee during the three-year period immediately prior to termination by
the Company other than for "cause" (iii) Plan Distributions and (iv) the
benefits contemplated by Section 3.5 and 3.7 of this Agreement, in each case for
the remainder of the Term as if such employment had not been terminated, such
amounts to be paid (and benefits to be provided) in the same manner through the
remainder of the Term as if such employment were not terminated and without
offset for earnings from subsequent employment or otherwise. Notwithstanding the
foregoing, if the benefit plans with respect to the benefits described above do
not provide coverage for or with respect to the Employee after the Employee's
employment is terminated by the Company other than for "cause", the Company
shall, at its sole cost and expense, provide the Employee supplemental benefits
to the extent necessary to afford the Employee the same benefit coverage that
would have been available to the Employee for the remainder of the Term had his
employment not been terminated.

                                       4
<PAGE>   5

                  4.4 Termination by the Employee.

                  4.4.1 Definitions. For purposes of this Section 4.4, the
following terms shall have the respective meanings set forth below:

                  (a) "Affiliate" means, with respect to the Company, any entity
         directly or indirectly controlled, controlling or under common control
         with the Company.

                  (b) "Acceleration Payment" means an amount in cash equal to
         the value of (i) any Bonus or Profit Sharing accrued but unpaid prior
         to the date of termination, (ii) any vacation accrued but unused prior
         to the date of termination and (iii) all stock options, restricted
         stock awards, stock appreciation rights and any other similar Company
         capital-stock based compensation awards (whether vested or not vested),
         if any, that have been granted or awarded to the Employee prior to the
         date of termination.

                  (c) "Change of Control" means: (i) a person, corporation,
         entity or group acquires, directly or indirectly, the beneficial
         ownership of 50% or more of the issued and outstanding stock of the
         Company in a single transaction or series of transactions, (ii) the
         Company is a party to a merger, consolidation or similar transaction
         and following such transaction 50% or more of the issued and
         outstanding securities of said party is beneficially owned by a person,
         corporation, entity or group other than the Company or an Affiliate of
         the Company, (iii) the Company sells or transfers 50% or more of its
         assets to any other person or persons other than an Affiliate of the
         Company, (iv) the shareholders of the Company approve a plan or
         proposal for the liquidation or dissolution of the Company or (v)
         during any two-year period, individuals who comprise a majority of the
         Board at the beginning of such two-year period do not comprise a
         majority of the Board at the end of such two-year period (such Board
         composition being referred to as a "Continuing Majority"), or (vi) any
         individual is elected to the Board at any time without notice to and
         the concurrence of the Employee.

                  (d) "Good reason" means: (i) the assignment to the Employee of
         any duties inconsistent with his status as Chairman and Chief Executive
         Officer of the Company or a material adverse alteration in the nature
         or status of his responsibilities from those provided herein or the
         transfer of a significant portion of such responsibilities to one or
         more other persons; (ii) the failure by the Company to pay or provide
         to the Employee, within 30 days of a written demand therefor, any
         amount of compensation or any benefit which is due, owing and payable
         pursuant to the terms hereof or of any applicable plan, program,
         arrangement or policy; (iii) the breach in any material respect by the
         Company of any of its other obligations or agreements set forth herein
         and the failure by the Company to cure such breach within 30 days after
         written notice thereof from the Employee; or (iv) the occurrence of a
         Change of Control.

                  (e) "Severance" means the sum of (i) the highest Base Salary
         that was paid to the Employee at any time prior to termination by the
         Employee for good reason, (ii) the average Bonus paid to the Employee
         during the three-year period immediately prior to termination by the
         Employee for good reason, and (iii) the average Plan Distribution paid

                                       5
<PAGE>   6

         to the Employee during the three-year period immediately prior to
         termination by the Employee for good reason.,

                  (f) "Severance Benefits" means the benefits contemplated by
         Section 3.5 and 3.7 of this Agreement.

                  (g) "Severance Term" means five (5) years.

                  4.4.2 At the election of the Employee for "good reason," the
Employee may terminate his employment immediately upon written notice to the
Company; provided, such notice is given by Employee within 365 days of the event
or action which constitutes "good reason". If during the Term the Employee's
employment is terminated by the Employee for good reason, the Employee shall be
entitled to receive from the Company (i) Severance and Severance Benefits,
payable during each year during the Severance Term, and the Acceleration
Payment, payable immediately, and (ii) in addition to the amounts described
above, cash payments in an amount sufficient to ensure that the amounts received
under this Section 4.4.2 as a result of a Change of Control are not subject to
net reductions due to the imposition of excise taxes under Section 4999 of the
Internal Revenue Code of 1986, as amended.

                  4.4.3 Upon 90 days' prior written notice, the Employee may
terminate his employment with the Company other than for good reason. If the
Employee voluntarily terminates his employment with the Company other than for
good reason, no further payment shall be due the Employee pursuant to Section 3
above (other than payments for accrued and unpaid Base Salary and expenses
incurred but not repaid to the Employee, in each case prior to such termination
and such amounts as may be payable under the provisions of the Profit Sharing
Plan.).

                  4.5 Effect of Termination on Certain Obligations. No
termination of the employment of the Employee, whether voluntary or involuntary,
shall terminate, affect or impair any of the obligations or rights of the
parties set forth in Sections 3.7, 4 and 5 of this Agreement, all of which
obligations and rights shall survive any termination of employment of the
Employee hereunder.

                  5. Covenants of the Employee.

                  5.1 Covenant Against Competition. The Employee acknowledges
that (i) the Company is one of a limited number of persons who have developed
the Business; (ii) the Business is national and international in scope; (iii)
the Employee's work for the Company will give him access to the confidential
affairs and proprietary information of the Company; (iv) the agreements and
covenants of the Employee contained in this Section 5 are essential to the
business and goodwill of the Company; and (v) the Company would not have entered
into this Agreement but for the covenants and agreements set forth in this
Section 5. Accordingly, the Employee covenants and agrees that:

                           (a) During the period Employee receives compensation
as an Employee, and during the period Employee receives any severance, the
Employee shall not, in

                                       6
<PAGE>   7

the United States or Asia, directly or indirectly, (1) engage in any business
that competes with the Business (or any part thereof) for the Employee's own
account; (2) render any services to any person (other than the Company) engaged
in such activities; or (3) become interested in any such person (other than the
Company) as a partner, shareholder, principal, agent, consultant or in any other
relationship or capacity; provided, however, that notwithstanding the above, the
Employee may own, directly or indirectly, solely as an investment, securities of
any such person which are traded on any national securities exchange or NASDAQ
if the Employee (A) is not a controlling person of, or a member of a group which
controls, such person and (B) does not, directly or indirectly, own 2% or more
of any class of securities of such person.

                           (b) During the Term and for the period ending five
years following the date upon which the Employee ceases to be an employee of the
Company (the "Restricted Period"), the Employee shall keep secret and retain in
strictest confidence, and shall not use for his benefit or the benefit of
others, except in connection with the business and affairs of the Company and
its affiliates, all confidential matters relating to the Business or to the
Company and its affiliates learned by the Employee heretofore or hereafter,
directly or indirectly, from the Company and its affiliates, including, without
limitation, information with respect to (i) prospective facilities, (ii) sales
figures, (iii) profit or loss figures, and (iv) customers, clients, suppliers,
sources of supply and customer lists (the "Confidential Information"), and shall
not disclose such Confidential Information to anyone outside of the Company and
its affiliates except with the Company's express prior written consent and
except for Confidential Information which (A) is at the time of receipt or
thereafter becomes publicly known through no wrongful act of the Employee or (B)
is received from a third party not under an obligation to keep such information
confidential and without breach of this Agreement; provided, however, Employee's
obligation not to compete shall be governed solely by paragraph 5.1(a) and shall
not be extended by the interpretation or enforcement of this provision.

                           (c) All memoranda, notes, lists, records and other
documents (and all copies thereof) made or compiled by the Employee or made
available to the Employee concerning the Business or the Company shall be the
Company's property and shall be delivered to the Company at any time on request.

                  5.2 Rights and Remedies upon Breach. If the Employee breaches,
or threatens to commit a breach of, any of the provisions of Section 5.1 (the
"Restrictive Covenants"), the Company shall have the following rights and
remedies (upon compliance with any necessary prerequisites imposed by law upon
the availability of such remedies), each of which rights and remedies shall be
independent of the other and severally enforceable, and all of which rights and
remedies shall be in addition to, and not in lieu of, any other rights and
remedies available to the Company under law or in equity:

                           (a) The right and remedy to have the Restrictive
Covenants specifically enforced by any court having equity jurisdiction,
including, without limitation, the right to an entry against the Employee of
restraining orders and injunctions (preliminary, mandatory, temporary and
permanent) against violations, threatened or actual, and whether or not then
continuing, of such covenants, it being acknowledged and agreed that any such
breach

                                       7
<PAGE>   8

or threatened breach will cause irreparable injury to the Company and that money
damages will not provide an adequate remedy to the Company.

                  6. Severability. The Employee acknowledges and agrees that (i)
he has had an opportunity to seek advice of counsel in connection with this
Agreement and (ii) the Restrictive Covenants are reasonable in geographical and
temporal scope and in all other respects. If it is determined that any of the
provisions of this Agreement, including, without limitation, any of the
Restrictive Covenants, or any part thereof, is invalid or unenforceable, the
remainder of the provisions of this Agreement shall not thereby be affected and
shall be given full effect, without regard to the invalid portions.

                  7. Blue-Pencilling. If any court determines that any of the
covenants contained in this Agreement, including, without limitation, any of the
Restrictive Covenants, or any part thereof, is unenforceable because of the
duration or geographical scope of such provision, the duration or scope of such
provisions, as the case may be, shall be reduced so that such provision becomes
enforceable and, in its reduced form, such provision shall then be enforceable
and shall be enforced.

                  8. Enforceability; Jurisdictions. The Company and the Employee
intend to and hereby confer jurisdiction to enforce the Restrictive Covenants
upon the courts of any jurisdiction within the geographical scope of the
Restrictive Covenants, provided the courts apply North Carolina law in
interpreting this Agreement.

                  9. Indemnification. To the fullest extent permitted or
required by the laws of the State of North Carolina, the Company shall indemnify
and hold harmless (including the advance payment of expenses) the Employee, in
accordance with the terms of such laws, if the Employee is made a party, or
threatened to be made a party, to any threatened, pending, or contemplated suit
or proceeding (whether civil, criminal, administrative or investigative) by
reason of the fact that the Employee is or was an officer or director of the
Company or any subsidiary or affiliate of the Company, against expenses
(including reasonable attorneys' fees), judgments, fines and amounts paid in
settlement actually and reasonably incurred by him in connection with any such
action, suit or proceeding. The Company's obligations under this paragraph will
survive the termination of this Agreement for any reason whatsoever.

                  10. D&O Liability Insurance. During the Term, and Severance
Term, if any, the Company shall maintain customary directors' and officers'
liability insurance.

                  11. Notice. Any notice or other communication hereunder shall
be in writing and shall be mailed or delivered to the respective parties hereto
as follows:

                  (a)      If to the Company:

                                    Cogentrix Energy, Inc.
                                    9405 Arrowpoint Boulevard
                                    Charlotte, NC 28273-8110
                                    Attention: General Counsel

                                       8
<PAGE>   9

                  (b)      If to the Employee:

                                    David J. Lewis
                                    9446 Penshurst Trace
                                    Charlotte, NC 28210

The addresses of either party hereto above may be changed by written notice to
the other party.

                  12. Amendment; Waiver; Renegotiation.

                  12.1 This Agreement may be amended, modified, superseded,
cancelled, renewed or extended and the terms of covenants hereof may be waived,
only by a written instrument executed by the party against whom such
modification or waiver is sought to be enforced. The failure of either party at
any time or times to require performance of any provision hereof shall in no
manner affect the right at a later time to enforce the same. No waiver by either
party of the breach of any term or covenant contained in this Agreement, whether
by conduct or otherwise, in any one or more instances, shall be deemed to be, or
construed as, a further or continuing waiver of any such breach, or a waiver of
the breach of any other term or covenant contained in this Agreement.

                  12.2 The Board shall review Employee's Base Salary, Bonus,
Profit Sharing, Insurance, and other Benefits then being paid to him annually in
light of the results of operations and current salaries and benefits then being
paid to other persons holding similar positions. Following such review, the
Board may increase (but shall not be required to increase) the Base Salary,
Bonus, Profit Sharing, Insurance, or other Benefits, but may not decrease the
Base Salary, Profit Sharing, Insurance, and other Benefits from the then
existing level.

                  13. Benefit and Binding Effect. This Agreement shall inure to
the benefit of and be binding upon the successors and assigns of the Company,
but shall be personal to and not assignable by the Employee. The obligations of
the Company hereunder are personal to the Employee or where applicable to his
spouse or estate. The Company may assign its rights, together with its
obligations, to any corporation which is a direct or indirect wholly-owned
subsidiary of the Company; provided, however, that the Company shall not be
released from its obligations hereunder without the prior written consent of the
Employee, which consent shall not be unreasonably withheld.

                  14. Governing Law. This Agreement shall be governed by the
laws of the State of North Carolina regardless of the laws that might be
applicable under principles of conflicts of law.

                  15. Counterparts. This Agreement may be executed by the
parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original but all such counterparts together shall
constitute one and the same instrument. Each counterpart may consist of two
copies hereof each signed by one of the parties hereto.

                                       9
<PAGE>   10

                  16. Headings. The headings in this Agreement are for reference
only and shall not affect the interpretation of this Agreement.

                  17. Entire Agreement. This Agreement constitutes the entire
understanding between the parties with respect to the subject matter hereof,
superseding all negotiations, prior discussions and preliminary agreements. No
subsequent modification may be made to this Agreement except by signed writing
of the parties.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first set forth above.

                                    Employee:

Witness: /s/ Dennis M. Alexander    /s/ David J. Lewis                    (SEAL)
         -----------------------    --------------------------------------
                                    David J. Lewis
                                    Chairman of the Board and Chief Executive
                                    Officer

                                    COGENTRIX ENERGY, INC.

                                    By:  /s/ Mark F. Miller
                                         ---------------------------------------
                                    Name:    Mark F. Miller
                                    Title:   President and Chief Operating
                                             Officer Per Board Resolution

                                       10

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