Document:

<PAGE>

                                                                    Exhibit 4.21

----SPACE ABOVE THIS LINE LEFT INTENTIONALLY BLANK FOR RECORDING INFORMATION----

                                              After recording, please return to:
                                              King & Spalding
                                              Attention:  Ruth T. West, Esq.
                                              191 Peachtree Street, N.E.
                                              Atlanta, Georgia 30303-1763

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                                 LEASE AGREEMENT

                                     between

                      DEVELOPMENT AUTHORITY OF HEARD COUNTY

                                       and

                         TENASKA GEORGIA PARTNERS, L.P.

                          Dated as of November 1, 1999

================================================================================

This Lease Agreement and all right, title and interest of the Development
Authority of Heard County in any rents, revenues and receipts derived under this
Agreement have been assigned to THE CHASE MANHATTAN BANK, as Trustee under the
Indenture of Trust, dated as of November 1, 1999, from the Development Authority
of Heard County which secures not to exceed $400,000,000 in aggregate principal
amount of Development Authority of Heard County Taxable Industrial Development
Revenue Bonds (Tenaska Georgia Partners, L.P. Project), Series 1999, and any
Additional Bonds issued thereunder.

================================================================================

<PAGE>

                                 LEASE AGREEMENT

                                TABLE OF CONTENTS

(The Table of Contents for this Lease Agreement is for convenience of reference
only and is not intended to define, limit or describe the scope or intent of any
provisions of this Lease Agreement.)

<TABLE>
<S>                   <C>                                                                                        <C>

                                     ARTICLE
                                  I DEFINITIONS

SECTION 1.1.          Definitions.................................................................................4
SECTION 1.2.          Rules of Construction.......................................................................8

                                   ARTICLE II
                         REPRESENTATIONS AND WARRANTIES

SECTION 2.1.          Representations and Warranties by the Issuer................................................9
SECTION 2.2.          Representations and Warranties by the Lessee...............................................10

                                   ARTICLE III
                      LEASING CLAUSES AND WARRANTY OF TITLE

SECTION 3.1.          Lease of the Project.......................................................................12
SECTION 3.2.          Title to Project...........................................................................12
SECTION 3.3.          Quiet Enjoyment............................................................................12
SECTION 3.4.          Limitations of Warranties..................................................................12
SECTION 3.5.          Agreement of the Issuer to Execute Amendment to Lease Agreement
                      and Release from Security Deed.............................................................13

                                   ARTICLE IV
                      COMMENCEMENT AND COMPLETION OF THE PROJECT;
                      ISSUANCE OF THE SERIES 1999 BONDS; ADDITIONAL BONDS

SECTION 4.1.          Agreement to Construct and Install the Project.............................................13
SECTION 4.2.          Agreement to Issue Series 1999 Bonds; Application of Series 1999 Bond Proceeds.............14
SECTION 4.3.          Disbursements from the Construction Fund...................................................14
SECTION 4.4.          Obligation of the Parties to Cooperate in Furnishing Documents to
                      Trustee....................................................................................16
SECTION 4.5.          Establishment of Completion Date...........................................................16
SECTION 4.6.          Issuer Not Required to Pay Project Costs in Event Construction Fund
                      Insufficient...............................................................................16
SECTION 4.7.          Issuer to Pursue Remedies Against Suppliers, Contractors and
                      Subcontractors and Their Sureties..........................................................17
SECTION 4.8.          Investment of Moneys Permitted.............................................................17
SECTION 4.9.          Issuance of Additional Bonds...............................................................17

                                      -i-
<PAGE>

                                    ARTICLE V
                      EFFECTIVE DATE OF THIS LEASE; DURATION OF LEASE TERM;
                                RENTAL PROVISIONS

SECTION 5.1.          Effective Date of this Lease; Duration of Lease Term.......................................18
SECTION 5.2.          Delivery and Acceptance of Possession......................................................18
SECTION 5.3.          Rents and Other Amounts Payable............................................................18
SECTION 5.4.          Place of Rental Payments...................................................................19
SECTION 5.5.          Obligations of Lessee Hereunder Absolute and Unconditional.................................19
SECTION 5.6.          Lessee's Performance under Indenture.......................................................20

                                   ARTICLE VI
                      MAINTENANCE AND MODIFICATIONS, TAXES AND INSURANCE

SECTION 6.1.          Maintenance and Modifications of Project by Lessee.........................................20
SECTION 6.2.          Removal of Leased Equipment................................................................20
SECTION 6.3.          Taxes, Other Governmental Charges and Utility Charges......................................21
SECTION 6.4.          Insurance Required.........................................................................22
SECTION 6.5.          Application of Insurance Proceeds..........................................................22
SECTION 6.6.          Additional Provisions Respecting Insurance.................................................22
SECTION 6.7.          Other Issuer Expenses......................................................................22
SECTION 6.8.          [Intentionally Omitted]....................................................................22
SECTION 6.9.          Indemnification of Issuer and the Trustee..................................................22

                                   ARTICLE VII
                      DAMAGE, DESTRUCTION AND CONDEMNATION

SECTION 7.1.          Damage and Destruction.....................................................................24
SECTION 7.2.          Condemnation...............................................................................24

                                  ARTICLE VIII
                                SPECIAL COVENANTS

SECTION 8.1.          No Warranty of Condition or Suitability by the Issuer......................................24
SECTION 8.2.          Inspection of Project; Right of Access to the Project by the Issuer........................24
SECTION 8.3.          Lessee to Maintain Its Existence; Exceptions Permitted.....................................25
SECTION 8.4.          Qualification in Georgia...................................................................25
SECTION 8.5.          Granting and Release of Easements; Amending or Modifying
                      Easements..................................................................................25
SECTION 8.6.          Release of Certain Land....................................................................25
SECTION 8.7.          Release of Electric Switchyard Equipment and Land..........................................26
SECTION 8.8.          Filing of Certain Continuation Statements..................................................27
SECTION 8.9.          Special Environmental Indemnification......................................................27
SECTION 8.10.         [Intentionally Omitted]....................................................................28
SECTION 8.11.         [Intentionally Omitted]....................................................................28
SECTION 8.12.         Granting of Security Interest in Leased Equipment..........................................28
SECTION 8.13.         Special Covenants Related to Ad Valorem Taxation...........................................28

                                      -ii-
<PAGE>

                                   ARTICLE IX
                      ASSIGNMENT, SUBLEASING, PLEDGING AND SELLING;
                      REDEMPTION; RENT PREPAYMENT AND ABATEMENT

SECTION 9.1.          Assignment and Subleasing..................................................................28
SECTION 9.2.          Conveying of Project by Issuer by Security Deed............................................29
SECTION 9.3.          Restrictions on Sale of Project by Issuer..................................................29
SECTION 9.4.          Prepayment of Bonds........................................................................30
SECTION 9.5.          Prepayment of Rents........................................................................30
SECTION 9.6.          Reference to Bonds Ineffective After Bonds Paid............................................31

                                    ARTICLE X
                         EVENTS OF DEFAULT AND REMEDIES

SECTION 10.1.         Events of Default Defined..................................................................31
SECTION 10.2.         Remedies on Default........................................................................31
SECTION 10.3.         Remedies Exclusive.........................................................................32
SECTION 10.4.         Agreement to Pay Attorneys'Fees and Expenses...............................................32
SECTION 10.5.         No Additional Waiver Implied by One Waiver.................................................32
SECTION 10.6.         Waiver of Appraisement, Valuation, Etc.....................................................33

                                   ARTICLE XI
                           OPTIONS IN FAVOR OF LESSEE

SECTION 11.1.         Options to Terminate the Lease Term........................................................33
SECTION 11.2.         Option to Purchase All or Portion of Project...............................................33
SECTION 11.3.         Option to Purchase Unimproved Land.........................................................34
SECTION 11.4.         Conveyance on Purchase.....................................................................35
SECTION 11.5.         Relative Position of Options and Indenture.................................................36

                                   ARTICLE XII
                      OBLIGATIONS OF LESSEE; RIGHTS OF LESSEE

SECTION 12.1.         Obligation to Purchase Project.............................................................36

                                  ARTICLE XIII
                                  MISCELLANEOUS

SECTION 13.1.         Notices....................................................................................36
SECTION 13.2.         Binding Effect.............................................................................38
SECTION 13.3.         Severability...............................................................................38
SECTION 13.4.         Amounts Remaining in Bond Fund.............................................................38
SECTION 13.5.         Amendments, Changes and Modifications; Consents of Collateral
                      Agent......................................................................................38
SECTION 13.6.         Execution Counterparts.....................................................................38
SECTION 13.7.         Captions...................................................................................38
SECTION 13.8.         Recording of Lease and Security Deed.......................................................38
SECTION 13.9.         Law Governing Construction of Lease........................................................38

                                     -iii-
<PAGE>

SECTION 13.10.        Net Lease..................................................................................38
SECTION 13.11.        Trustee as Third-Party Beneficiary.........................................................39
SECTION 13.12.        Estate for Years...........................................................................39

EXHIBIT A   -           DESCRIPTION OF LEASED LAND
EXHIBIT B   -           DESCRIPTION OF LEASED EQUIPMENT
EXHIBIT C   -           PROJECT SUMMARY
EXHIBIT D   -           QUITCLAIM DEED AND BILL OF SALE
EXHIBIT E   -           FORM OF AMENDMENT TO LEASE AGREEMENT
EXHIBIT F   -           AD VALOREM TAX AGREEMENT
EXHIBIT G               LEASE PAYMENTS TO COUNTY AND ISSUER FEES
</TABLE>

                                      -iv-
<PAGE>

                                 LEASE AGREEMENT

         THIS LEASE AGREEMENT, dated as of November 1, 1999, by and between the
DEVELOPMENT AUTHORITY OF HEARD COUNTY (the "Issuer"), a public corporation of
the State of Georgia, as lessor, and TENASKA GEORGIA PARTNERS, L.P. (the
"Lessee"), a limited partnership organized and existing under the laws of the
State of Delaware and qualified to do business in the State of Georgia, as
lessee,

                                    RECITALS

         WHEREAS, the Issuer has been created pursuant to the provisions of an
Act of the General Assembly of the State of Georgia (O.C.G.A. Section 36-62 ET
SEQ.), as amended and an activating resolution of the Board of Commissioners of
Heard County, Georgia duly adopted on January 3, 1972 (collectively, the "Act"),
its directors have been appointed as provided in the Act and are currently
acting in such capacity; and

         WHEREAS, the Issuer has been created for the purpose of encouraging and
promoting the expansion and development of industrial and commercial facilities
in Heard County, Georgia; the Act empowers the Issuer to issue its revenue
obligations, in accordance with the applicable provisions of the Revenue Bond
Law of the State of Georgia (O.C.G.A. Sections 36-82-60 to 36-82-85), as
heretofore and hereafter amended, for the purpose of financing any undertaking
within the scope of its power, including, without limitation, the acquisition by
purchase or gift of any building or structure within the territorial limits of
Heard County suitable for and intended for use as a factory, mill, shop,
processing plant, assembly plant or fabricating plant, including all appurtenant
lands and appurtenances thereto and all necessary or useful furnishings,
machinery and equipment, and the lease or sale of such building or structure for
operation by one or more persons, firms or corporations, all in furtherance of
the public purpose for which it was created; and

         WHEREAS, after careful study and investigation the Issuer, in
furtherance of the purpose for which it was created and pursuant to a resolution
duly adopted, has agreed to enter into this lease agreement (the "Lease
Agreement"), dated as of the date first written above, with the Lessee, pursuant
to which the Issuer agrees to acquire, construct and install the Project (as
defined herein), including the real property owned by the Issuer for the
exclusive use and occupancy of the Lessee under the Lease Agreement and the
Lessee has agreed to pay the Issuer specified rental payments and other
payments; and

         WHEREAS, after careful investigation, the Issuer has found and does
hereby declare that it is in the best interest of the citizens of Heard County
that the Project be acquired, constructed and installed and leased to the Lessee
for the purposes stated herein, all in keeping with the public purpose for which
the Issuer was created, and that such acquisition, construction and installation
of the Project and lease thereof to the Lessee hereunder are specifically
authorized under the Act; and

         WHEREAS, a Project Summary (the "Project Summary") for the Project has
been prepared by the Lessee, and it is estimated that the amount necessary to
finance the cost of the Project, including expenses incidental thereto, will not
exceed $400,000,000 (said Project

<PAGE>

Summary, a copy of which is attached to this Lease Agreement as Exhibit C and
which may be amended from time to time by the Lessee, has been approved by the
Issuer and is on file with the Secretary of the Issuer); and

         WHEREAS, the most feasible method of financing the cost of the Project
is through the issuance by the Issuer of its Development Authority of Heard
County Taxable Industrial Development Revenue Bonds (Tenaska Georgia Partners,
L.P. Project), Series 1999, in the aggregate principal amount of not to exceed
$400,000,000 (the "Series 1999 Bonds") pursuant to an Indenture of Trust dated
as of November 1, 1999 between the Issuer and The Chase Manhattan Bank, as
trustee (the "Trustee"), as the same may from time to time be amended, modified
or supplemented; and

         WHEREAS, it is anticipated that additional moneys may be necessary to
finance the cost of (a) completing the acquisition, construction and
installation of the Project, (b) providing for the enlargement, improvement,
expansion or replacement of the Project, (c) refunding all of the Bonds (defined
below) of any one or more series then outstanding, or (d) any combination of the
foregoing, and provision should be made for the issuance from time to time of
Additional Bonds which shall be equally and ratably secured hereunder with the
Series 1999 Bonds (the Series 1999 Bonds and such Additional Bonds being
hereinafter collectively referred to as the "Bonds"); and

         WHEREAS, the Series 1999 Bonds will be delivered to and paid for by
Tenaska Georgia Partners, L.P., as purchaser (the "Purchaser") to finance the
acquisition, construction and installation of the Project; and

         WHEREAS, the Issuer will receive rental payments and other payments
from the Lessee, which revenues, together with all other rents, revenues and
receipts and other payments to be received pursuant to this Lease Agreement,
shall be pledged together with this Lease Agreement (except for the Unassigned
Rights defined in the Indenture) as security for the payment of the principal of
and interest on the Bonds; and

         WHEREAS, a condition of the Trustee's acceptance of the Indenture, the
Lessee has executed and delivered a Guaranty Agreement, dated as of even date
herewith, pursuant to which the Lessee, as guarantor, absolutely and
unconditionally guarantees to the Trustee the full and prompt payment in
accordance with the provisions on this Indenture of the principal of and
interest on the Series 1999 Bonds; and

         WHEREAS, as additional security for the payment of the Bonds, the
Issuer has conveyed title to that portion of the Project consisting of real
property and has assigned all leases in and to all rents and other payments
derived from the Project and has granted a security interest in that portion of
the Project consisting of personal property to the Trustee pursuant to the terms
of a Deed to Secure Debt, Security Agreement and Assignment of Rents and Leases
(the "Security Deed"), dated as of even date herewith; and

         WHEREAS, in connection with the commencement of commercial operation of
the Project, the Lessee is required to deliver the Debt Service Reserve Letter
of Credit (the "DSR

                                      -2-
<PAGE>

Letter of Credit") and The Toronto-Dominion Bank ("Toronto-Dominion"), as
issuing bank, has agreed to issue the DSR Letter of Credit subject to the terms
and conditions contained in the Debt Service Reserve Letter of Credit and
Reimbursement Agreement, dated as of November 1, 1999, among each of the banks
and financial institutions parties thereto and Toronto-Dominion, as issuing bank
and as agent for such banks and financial institutions (in such capacity as
agent, and together with its successors and assigns, the "DSR LOC Provider");
and

         WHEREAS, in connection with the Lessee's obligations under the Power
Purchase Agreement (as defined in the Common Agreement hereafter referred to),
the Lessee may deliver the PPA Letter of Credit (the "PPA LOC") and
Toronto-Dominion, as issuing bank, has agreed to issue the PPA LOC subject to
the terms and conditions contained in the PPA Letter of Credit and Reimbursement
Agreement, dated as of November 1, 1999, among each of the banks and financial
institutions parties thereto and Toronto-Dominion, as issuing bank and as agent
for such banks and financial institutions (in such capacity as agent, and
together with its successors and assigns, the "PPA LOC Provider"); and

         WHEREAS, the Lessee may finance certain working capital requirements of
the Project by entering into a working capital agreement with a financial
institution for the provision of credit to the Lessee (such financial
institution, the "Working Capital Provider" and, together with the DSR LOC
Provider and the PPA LOC Provider, the "Senior Parties"); and

         WHEREAS, the Lessee, as purchaser of the Bonds, has agreed to pledge
the Bonds to The Chase Manhattan Bank, as Collateral Agent (the "Collateral
Agent") pursuant to a Partnership Assignment and Security Agreement dated as of
November 1, 1999 (the "Partnership Assignment and Security Agreement") as
security for its obligations to the Senior Parties under the Financing Documents
(as defined in the Common Agreement hereinafter referred to); and

         WHEREAS, the Lessee, the Collateral Agent, The Chase Manhattan Bank, as
Depositary Bank (the "Depositary Bank), the Trustee and the Senior Parties have
entered into a Collateral Agency and Intercreditor Agreement, dated as of
November 1, 1999 (the "Collateral Agency Agreement") to set forth the rights of
the Lessee and the Senior Parties as to the Collateral (as defined therein); and

         WHEREAS, the Lessee, the Collateral Agent and the Senior Parties have
entered into an Agreement as to Certain Undertakings, Common Representations,
Warranties, Covenants and Other Terms dated as of November 1, 1999 (the "Common
Agreement") which sets forth certain representations, warranties and covenants
of the Lessee relating to the Project;

         NOW, THEREFORE, in consideration of the respective representations and
agreements hereinafter contained, the Issuer and the Lessee agree as follows
(provided, that in the performance of the agreements of the Issuer herein
contained, any obligation it may thereby incur for the payment of money shall
not be a general debt on its part but shall be payable solely out of the rents,
revenues and receipts derived from this Lease Agreement, the sale of the Bonds,
the insurance and condemnation awards as herein described and any other rents,
revenues and receipts arising out of or in connection with its ownership of the
Project):

                                       -3-
<PAGE>

                                   ARTICLE I

                                   DEFINITIONS

SECTION 1.1. DEFINITIONS. In addition to the words and terms elsewhere defined
in this Lease Agreement, the following words and terms as used in this Lease
Agreement shall have the following meanings unless the context or use indicates
another or different meaning or intent. Terms which are not defined in this
Lease Agreement shall have the meaning specified in Article I of the Indenture
except as herein otherwise expressly provided or unless the context requires
otherwise.

         "ACT" means an Act of the General Assembly of the State of Georgia
(O.C.G.A. Section 36-62 ET SEQ.), as amended and an activating resolution of the
Board of Commissioners of Heard County, Georgia duly adopted on January 3, 1972.

         "ADDITIONAL BONDS" means the bonds of any series, other than the Series
1999 Bonds, authorized under the Indenture and authenticated and delivered in
accordance with Sections 4.01 and 4.02 of the Indenture.

         "AUTHORIZED ISSUER REPRESENTATIVE" means the person or persons at the
time designated to act on behalf of the Issuer by certificate furnished to the
Lessee and the Trustee containing the specimen signature of each such person and
signed by the Chairman or Vice Chairman of the Issuer. Such certificate may
designate an alternate or alternates, each of whom shall be entitled to perform
all duties of the Authorized Issuer Representative. Such certificate shall be
effective until revoked in writing.

         "AUTHORIZED LESSEE REPRESENTATIVE" means the person or persons at the
time designated to act on behalf of the Lessee by certificate furnished to the
Issuer and the Trustee containing the specimen signature of each such person and
signed on behalf of the Lessee by the president or any vice president of the
general partner of the Lessee. Such certificate may designate an alternate or
alternates, each of whom shall be entitled to perform all duties of the
Authorized Lessee Representative. Such certificate shall be effective until
revoked in writing.

         "BOND" or "BONDS" means any or all of the Series 1999 Bonds and any
Additional Bonds issued by the Issuer pursuant to the Indenture.

         "BOND FUND" means the Bond principal and interest payment fund created
by Section 6.02 of the Indenture and within which has been established a General
Account and a Special Account. Any reference herein to the "Bond Fund" without
further limitation or explanation shall be deemed to be a reference to the
General Account in the Bond Fund.

         The term "BONDHOLDER" or "HOLDER OF THE BONDS" means the registered
owner of the Bonds (or, if the Bonds, or any of them, have been pledged, the
registered pledgee of the Bonds).

         "BUILDINGS" means those certain facilities forming a part of the
Project located on the Leased Land and not constituting a part of the Leased
Equipment, the acquisition, construction or

                                       -4-
<PAGE>

installation of which or the improvements or replacement thereto, in whole or in
part, is to be financed with the proceeds from the sale of the Bonds, as they
may at any time exist.

         "COLLATERAL AGENCY AGREEMENT" means the Collateral Agency and
Intercreditor Agreement dated as of November 1, 1999 among the Lessee, the
Trustee, the Senior Parties, the Collateral Agent and the Depositary Bank, as
the same may be amended from time to time in accordance with its terms.

         "COLLATERAL AGENT" means The Chase Manhattan Bank, its successors and
assigns, in its capacity as collateral agent under the Collateral Agency
Agreement.

         "COMMON AGREEMENT" means the Agreement as to Certain Undertakings,
Common Representations, Warranties, Covenants and Other Terms, dated November 1,
1999, among the Lessee, the Senior Parties and the Collateral Agent, as the same
may be amended from time to time in accordance with its terms.

         "COMPLETION DATE" means the date of completion of the acquisition,
construction and installation of the Project as that date shall be certified as
provided in Section 4.5 hereof.

         "CONSTRUCTION FUND" means the fund so designated, established and
created under Section 2.2 of the Collateral Agency Agreement.

         "CONSTRUCTION PERIOD" means the period beginning on the date on which
the Series 1999 Bonds are delivered to the first purchaser or purchasers thereof
or the date upon which the acquisition, construction and installation of the
Project began, whichever is earlier, and ending on the Completion Date.

         "COUNSEL" means an attorney or firm thereof admitted to practice law
before the highest court of any state of the United States of America or the
District of Columbia. An attorney for the Issuer or the Lessee may be eligible
for appointment as Counsel.

         "DEPOSITARY BANK" means The Chase Manhattan Bank, as depositary bank
under the Collateral Agency Agreement, or any successor thereto pursuant to the
terms hereof.

         "EVENT OF DEFAULT" means any of the events described in Section 10.1
hereof.

         "FINANCING STATEMENTS" means any and all financing statements
(including continuation statements) filed for record from time to time to
perfect the security interests created by the Indenture and/or the Security
Deed.

         "GOVERNMENTAL APPROVALS" has the meaning set forth in the Common
Agreement.

         "GOVERNMENT OBLIGATIONS" means (a) direct obligations of the United
States of America for the payment of which the full faith and credit of the
United States of America is pledged, or (b) obligations issued by any agency
controlled or supervised by and acting as an instrumentality of the United
States of America, the payment of the principal of and interest on which is
fully and unconditionally guaranteed as a full faith and credit obligation of
the United States of America (including any securities described in (a) or (b)
issued or held in book-entry form on the

                                       -5-
<PAGE>

books of the Department of Treasury of the United States of America), which
obligations, in either case, are held in the name of the Trustee and are not
subject to redemption prior to maturity by anyone other than the holder thereof.

         "GUARANTY AGREEMENT" means the Guaranty Agreement, of even date
herewith, from the Lessee, as guarantor, to the Trustee, pursuant to the terms
of which the Lessee has absolutely and unconditionally guaranteed the payment of
the principal of and interest on, the Bonds, and any amendments or supplements
thereto, including any amendments or any additional Guaranty Agreements executed
by the Lessee in connection with the issuance of any Additional Bonds.

         "INDENTURE" means the Indenture of Trust between the Issuer and the
Trustee, of even date herewith, pursuant to which the Bonds are authorized to be
issued and the Issuer's interest in the Lease and the rents, revenues and
receipts arising out of or in connection with the Issuer's ownership of the
Project are to be pledged and assigned to the Trustee as security for the
payment of the principal of and interest on, the Bonds, including any indenture
supplemental thereto.

         "INDEPENDENT COUNSEL" means an attorney or firm thereof duly admitted
to practice law before the highest court of any state in the United States of
America or the District of Columbia and not an employee of or regularly retained
by either the Issuer or the Lessee.

         "INSURANCE PROCEEDS" has the meaning set forth in the Common Agreement.

         "ISSUER" means the Development Authority of Heard County, a public body
corporate and politic created and existing under the laws of the State of
Georgia, and its lawful successors and assigns.

         "ISSUER DOCUMENTS" means this Lease, the Indenture, the Bond Purchase
Agreement, the Security Deed and the Quitclaim Deed.

         "LEASE" or "LEASE AGREEMENT" means this Lease Agreement as it now
exists and as it may hereafter be amended in accordance with its terms..

         "LEASE TERM" means the duration of the leasehold interest created by
this Lease as specified in Section 5.1 hereof.

         "LEASED EQUIPMENT" means those items of machinery, equipment and
related property required herein to be acquired and/or installed in the Building
or on the Leased Land with proceeds from the sale of the Bonds or the proceeds
of any payment by the Lessee pursuant to Section 4.6 hereof and any item of
machinery, equipment and related property acquired and installed in the Building
or on the Leased Land in substitution therefor and renewals and replacements
thereof pursuant to Sections 6.2, 7.1 and 7.2 hereof, less such machinery,
equipment and related property as may be released from this Lease pursuant to
Section 6.2 hereof or taken by the exercise of power of eminent domain as
provided in Section 7.2 hereof, but not including the Lessee's own machinery,
equipment and related property installed under the provisions of Section 6.1(b)
hereof. The Leased Equipment insofar as it will be initially installed as a part
of the Project is more fully described in Exhibit "B" attached hereto and by
this reference made a part of this Lease.

                                       -6-
<PAGE>

         "LEASED LAND" means the real estate and interests in real estate
described in Exhibit "A" attached hereto and by this reference made a part
hereof, increased or decreased by any real estate and interests in real estate
as may be released from this Lease pursuant to Sections 8.5 or 8.6 or added to
this Lease pursuant to Section 11.3 hereof, respectively, or taken by the
exercise of the power of eminent domain as provided in Section 7.2 hereof.

         "LESSEE" means Tenaska Georgia Partners, L.P., a Delaware limited
partnership, and its successors and assigns, including any surviving, resulting
or transferee entity as provided in Section 8.3 hereof.

         "LESSEE DOCUMENTS" means this Lease, the Guaranty Agreement and the
Bond Purchase Agreement.

         "LOSS PROCEEDS" shall have the meaning set forth in the Common
Agreement.

         The term "PAYMENT IN FULL OF THE BONDS" specifically encompasses the
situations referred to in Sections 10.01 and 10.02 of the Indenture.

         "PARTNERSHIP ASSIGNMENT AND SECURITY AGREEMENT" shall have the meaning
set forth in the Common Agreement.

         "PERMITTED INVESTMENTS" means:

                  (a)      Government Obligations;

                  (b)      Obligations of the Federal Land Bank;

                  (c)      Obligations of the Federal Home Loan Bank;

                  (d)      Obligations of the Federal Intermediate Credit Bank;

                  (e)      Obligations of the Central Bank for Cooperatives;

                  (f) Certificates of deposit of national or state banks located
         within the State which have deposits insured by the Federal Deposit
         Insurance Corporation and certificates of deposit of Federal savings
         and loan associations and state building and loan associations located
         within the State which have deposits insured by the Federal Savings and
         Loan Insurance Corporation (including the certificates of deposit of
         any bank, savings and loan association or building and loan association
         acting as depository, custodian or trustee for any proceeds of the
         Bonds); provided, however, that the portion of such certificates of
         deposit in excess of the amount insured by the Federal Deposit
         Insurance Corporation, if any, shall be secured by deposit with the
         Federal Reserve Bank of Atlanta, Georgia, or with any national or state
         bank located within the State, of any of the obligations included in
         (a), (b), (c), (d) or (e) above; and

                  (g) Repurchase agreements with respect to obligations included
         in (a), (b), (c), (d) or (e) above and any other investments to the
         extent at the time permitted by then applicable law for the investment
         of public funds.

                                       -7-
<PAGE>

         "PERMITTED LIENS" has the meaning set forth in Section 5.2(b) of the
Common Agreement.

         "PROJECT" means the Leased Land, the Building and the Leased Equipment,
as each may at any time exist.

         "PROJECT SUMMARY" means the project summary filed with the Secretary of
the Issuer, as the same may be amended from time to time in accordance with the
provisions of this Lease. The Project Summary is contained as Exhibit "C"
attached hereto and by this reference made a part of this Lease.

         "QUITCLAIM DEED" means the Quitclaim Deed and Bill of Sale to be dated
the date of actual execution and delivery thereof, held in trust by the Trustee
in accordance with the provisions hereof. The Quitclaim Deed and Bill of Sale,
in substantially the form it is to be executed and delivered, is attached as
Exhibit "D" hereto.

         "SECURITY DEED" means the Deed to Secure Debt, Security Agreement and
Assignment of Rents and Leases, dated as of November 1, 1999, by and between the
Issuer and the Trustee, as amended from time to time.

         "SECURITY DOCUMENTS" shall have the meaning given in the Common
Agreement.

         "SECURITY INTEREST" or "SECURITY INTERESTS" means the security
interests created in the Indenture and shall have the meaning set forth in the
Uniform Commercial Code of Georgia, as now or hereafter amended.

         "SENIOR PARTIES" has the meaning given in the recitals hereto.

         "SERIES 1999 BONDS" means the Development Authority of Heard County
Taxable Industrial Development Revenue Bonds (Tenaska Georgia Partners, L.P.
Project), Series 1999, in the aggregate principal amount not to exceed
$400,000,000, authenticated and delivered in accordance with Section 3.03 of the
Indenture.

         "STATE" means the State of Georgia.

         "TRUSTEE" means The Chase Manhattan Bank or any co-trustee and any
successor trustee under the Indenture.

         SECTION 1.2. RULES OF CONSTRUCTION. Unless the context clearly
indicates to the contrary:

         (a) "Herein," "hereby," "hereunder," "hereof", "hereinbefore",
"hereinafter" and other equivalent words refer to this Lease and not solely to
the particular portion thereof in which any such word is used.

         (b) Words importing the singular number shall include the plural number
and vice versa, and any pronoun used herein shall be deemed to cover all
genders.

                                       -8-
<PAGE>

         (c) All references herein to particular Articles or Sections are
references to Articles or Sections of this Lease.

         (d) Any certificate or statement required to be delivered under the
provisions of this Lease or the Indenture shall, in the absence of manifest
error, be deemed to be conclusive evidence of the truth, correctness and
accuracy of the matters covered in such certificate or statement.

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES

         SECTION 2.1. REPRESENTATIONS AND WARRANTIES BY THE ISSUER. The Issuer
makes the following representations and warranties:

         (a) ORGANIZATION AND AUTHORITY. The Issuer is a public body corporate
and politic, created and validly existing pursuant to the Constitution and laws
of the State of Georgia, including particularly the provisions of the Act. Under
the provisions of the Act, the Issuer has the power to execute and deliver the
Issuer Documents, to enter into the transactions contemplated thereby and to
perform and observe its obligations contained therein in accordance with the
terms thereof. By proper corporate action, the Issuer has duly authorized the
execution, delivery and performance of the Issuer Documents.

         (b) ABILITY TO FINANCE PROJECT UNDER ACT. The Project constitutes an
undertaking within the scope of the Issuer's power for which bonds may be issued
to finance under the Act, and is located within the corporate limits of Heard
County, Georgia.

         (c) PUBLIC PURPOSE. The Issuer has found and hereby declares that the
undertaking for which the Bonds are to be issued will increase employment within
the territorial limits designated in the Act, and the Lessee of the Project will
not, by virtue of establishing operations in said territorial limits, reduce the
number of employees employed by the Lessee elsewhere in the State of Georgia.

         (d) AGREEMENTS ARE LEGAL AND AUTHORIZED. The Issuer is not subject to
any charter, by-law or contractual limitation or provision of any nature
whatsoever which in any way limits, restricts or prevents the Issuer from
entering into the Issuer Documents or performing any of its obligations
thereunder, except to the extent that such performance may be limited by
bankruptcy, insolvency, reorganization or other laws affecting creditors'
rights.

         (e) LIMITED OBLIGATIONS. Notwithstanding anything herein contained to
the contrary, any obligation the Issuer may hereby incur for the payment of
money shall not be a general debt on its part but shall be payable solely from
rents, revenues and receipts derived from this Lease, the sale of the Bonds and
any other rents, revenues and receipts derived by the Issuer arising out of or
in connection with its ownership of the Project (except for Unassigned Rights).

         (f) ISSUANCE OF BONDS. To accomplish the foregoing, the Issuer proposes
to issue from time to time not to exceed $400,000,000 aggregate principal amount
of its Series 1999 Bonds.

                                       -9-
<PAGE>

The date, denominations, interest rate, maturity date, redemption provisions and
other pertinent provisions with respect to the Bonds are set forth in the
Indenture (particularly Articles II and III thereof) and by this reference
thereto they are incorporated herein.

         (g) SECURITY FOR BONDS. The Bonds are to be issued under and secured by
the Indenture, pursuant to which the Issuer's right, title and interest in this
Lease (except for certain rights of indemnification and payment of expenses),
and the rents, revenues and receipts arising out of or in connection with the
Issuer's ownership of the Project will be assigned to the Trustee and pledged as
security for the payment of the principal of and interest on the Bonds.

         (h) NO PRIOR PLEDGE. Neither this Lease nor the rents, receipts and
revenues derived hereunder have been pledged or hypothecated in any manner or
for any purpose (other than as provided in the Indenture).

         (i) GOVERNMENTAL CONSENTS. Neither the nature of the Issuer nor any of
its activities or properties, nor any relationship between the Issuer and any
other Person, nor any circumstance in connection with the offer, issue, sale or
delivery of any of the Bonds is such as to require the consent, approval or
authorization of, or the filing, registration or qualification with, any
governmental authority on the part of the Issuer in connection with the
execution, delivery and performance of any of the Issuer Documents or the offer,
issue, sale or delivery of the Bonds, other than those already obtained or
filed; provided, however, no representation is made herein as to compliance with
the securities or "blue sky" laws of any jurisdiction.

         (j) NO DEFAULTS. No event has occurred and no condition exists with
respect to the Issuer which would constitute an event of default, as defined
therein, under any of the Issuer Documents or which, with the lapse of time or
with the giving of notice or both, would become an event of default under any of
the Issuer Documents.

         (k) ENFORCEABILITY. This Lease is a legal, valid and binding obligation
of the Issuer enforceable in accordance with its terms, except to the extent the
enforceability hereof may be subject to (i) the exercise of judicial discretion
in accordance with general principles of equity, and (ii) bankruptcy,
insolvency, reorganization, moratorium, or other similar laws affecting
creditors' rights heretofore or hereinafter enacted to the extent
constitutionally applicable.

         (l) NO WARRANTY BY ISSUER OF CONDITION OR SUITABILITY OF THE PROJECT
FACILITIES. The Issuer makes no warranty, either expressed or implied, as to the
suitability or utility of the Project or as to the condition of the Project or
that they are or will be suitable for the Lessee's purposes or needs.

         SECTION 2.2. REPRESENTATIONS AND WARRANTIES BY THE LESSEE. The Lessee
makes the following representations and warranties:

         (a) The Lessee (i) is a limited partnership duly organized and validly
existing under the laws of the State of Delaware and (ii) is duly qualified to
do business as a limited partnership in each jurisdiction in which its ownership
or lease of property or the conduct of its business requires such qualification,
and has all power and authority necessary to own, lease or hold its property and
to conduct the business in which it is now engaged or proposed to be engaged,
except where the failure to so qualify or have such power or authority would
not, singularly or in

                                       -10-
<PAGE>

the aggregate, have a Material Adverse Effect (as such term is defined in the
Common Agreement).

         (b) The Lessee has full partnership right, power and authority to
execute and deliver this Lease Agreement and to perform its obligations
hereunder; and all partnership action required to be taken for the due and
proper authorization, execution and delivery of this Lease Agreement and the
consummation of the transactions contemplated hereby have been duly and validly
taken.

         (c) This Lease Agreement has been duly authorized, executed and
delivered by the Lessee, and constitutes a valid and legally binding obligation
of the Lessee enforceable against it in accordance with the terms hereof, except
to the extent limited by applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other laws affecting creditors'
rights generally, and by general equitable principles (whether considered in a
proceeding in equity or at law).

         (d) The execution, delivery and performance by the Lessee of this Lease
Agreement and the consummation of the transactions contemplated hereby will not
(i) conflict with or result in a breach or violation of any of the terms or
provisions of, or constitute a default under, or result in the creation or
imposition of any lien, charge or encumbrance upon any property or assets of the
Lessee pursuant to, any material indenture, mortgage, deed of trust, loan
agreement or other material agreement or instrument to which the Lessee is a
party or by which the Lessee is bound or to which any of the property or assets
of the Lessee is subject, (ii) result in any violation of the provisions of the
Partnership Agreement (as such term is defined in the Common Agreement), or
(iii) result in any violation of any statute or any judgment, order, decree,
rule or regulation of any court or arbitrator or governmental agency or body
having jurisdiction over the Lessee or any of its properties or assets.

         (e) All Governmental Approvals (as such term is defined in the Common
Agreement) which are required, as of the date of issuance and delivery of the
Bonds, to be obtained by, in the name of, or on behalf of the Lessee in
connection with the due execution, delivery and performance of this Lease
Agreement have been duly obtained or made, are validly issued and are in full
force and effect. The Lessee is in compliance with all such Governmental
Approvals, except to the extent that noncompliance could not reasonably be
expected to result in a Material Adverse Effect.

         (f) There are no legal or governmental proceedings pending to which the
Lessee is a party or of which any property or assets of the Lessee are the
subject which, singly or in the aggregate, could reasonably be expected to have
a Material Adverse Effect; and to the best of the Lessee's knowledge, no such
proceedings are threatened by governmental authorities or others.

         (g) The Lessee is not (i) in violation of its Partnership Agreement or
other organizational documents, (ii) in default, and no event has occurred
which, with notice or lapse of time or both, would constitute such a default, in
the due performance or observance of any term, covenant or condition contained
herein .

                                       -11-
<PAGE>

         (h) The Lessee presently intends to operate the Project, located wholly
within Heard County, in a manner consistent with the Act, principally as an 936
megawatt natural-gas fired (with oil as the backup fuel) electric power
generation facility, consisting of 6 F-class simple cycle combustion turbine
engines from the Completion Date until the expiration or sooner termination of
the Lease Term as provided herein.

                                  ARTICLE III

                      LEASING CLAUSES AND WARRANTY OF TITLE

         SECTION 3.1. LEASE OF THE PROJECT. The Issuer hereby leases to the
Lessee, and the Lessee hereby leases from the Issuer, subject to Permitted
Liens, the Project at the rental set forth in Section 5.3 hereof and in
accordance with the provisions of this Lease.

         SECTION 3.2. TITLE TO PROJECT. Upon the execution and delivery hereof,
the Issuer agrees that it will furnish to the Lessee an opinion of the Issuer's
Counsel or other Counsel satisfactory to the Lessee stating that the Issuer
holds good and marketable fee simple title in and to the Leased Land. Likewise,
upon delivery of the Bonds, the Issuer agrees that it will furnish to the Lessee
and to the Trustee an opinion of the Issuer's Counsel or other Counsel
satisfactory to the Lessee and to the Trustee stating that the Security Deed has
been duly filed and recorded in the Office of the Clerk of the Superior Court of
Heard County, and constitutes a first lien on the real property comprising a
portion of the Project and a first security interest in the personal property
comprising a portion of the Project subject only to Permitted Liens.

         The Issuer agrees that it shall upon request of the Lessee join where
necessary in any proceeding to protect and defend the Issuer's title in and to
the Project, provided that the Lessee shall pay the entire cost of any such
proceeding or reimburse the Issuer therefor and indemnify and hold harmless the
Issuer from any cost or liability whatsoever.

         SECTION 3.3. QUIET ENJOYMENT. The Issuer warrants and covenants that it
will defend the Lessee in the quiet enjoyment and peaceable possession of the
Leased Land, and all appurtenances thereunto belonging, free from all claims of
all persons whomsoever acting by, through or under the Issuer, throughout the
Lease Term.

         In addition to the foregoing warranty, the Issuer agrees that it will
not take or cause another party to take any action to interfere with the
Lessee's peaceful and quiet enjoyment of the Project. The Issuer agrees that in
the event the peaceful and quiet enjoyment of the Project shall otherwise be
denied to the Lessee or contested by anyone, the Issuer shall upon request of
the Lessee join where necessary in any proceeding to protect and defend the
quiet enjoyment of the Lessee, provided that, unless such denial or contest
shall result from the gross negligence or wilful misconduct of the Issuer, the
Lessee shall pay the entire cost of any such proceeding or reimburse the Issuer
therefor and indemnify and hold harmless the Issuer from any cost or liability
whatsoever.

         SECTION 3.4. LIMITATIONS OF WARRANTIES. The warranties of the Issuer
which are contained in Sections 3.2 and 3.3 hereof shall be limited to the
extent and in such amount as may be contained in and recoverable under an
Owner's Policy of Title Insurance naming the Issuer as

                                       -12-
<PAGE>

the insured, to be furnished to the Issuer by the Lessee at the Lessee's expense
upon the execution and delivery of this Lease; provided, however that nothing
contained in this section shall restrict the Issuer's liability resulting from
the Issuer's tortious acts or gross negligence.

         SECTION 3.5. AGREEMENT OF THE ISSUER TO EXECUTE AMENDMENT TO LEASE
AGREEMENT AND RELEASE FROM SECURITY DEED. The Issuer and the Lessee understand
and agree that (i) certain items of personal property may be acquired by the
Lessee and conveyed to the Issuer or may be acquired directly by the Issuer from
time to time hereafter, (ii) items of Leased Equipment and/or portions of the
Land may be removed or released from this Lease in accordance with the
provisions of Sections 6.2 and 8.6 hereof, and (iii) easements, restrictive
covenants and certain other rights of way across the Leased Land may be granted
by the Lessee in accordance with Section 8.5 hereof. The Issuer agrees, at the
request of the Lessee, to execute an Amendment to Lease Agreement in the form
contained as Exhibit "E" hereto or such other form as shall be reasonably
acceptable to the Issuer and the Lessee, without further action on its part
unless further action is otherwise required under the provisions hereof, and the
equipment or property added or released thereby shall become subject to or be
released from this Lease. In connection with any amendment of this Lease
Agreement providing for the removal of Leased Equipment or the release of Leased
Land as provided herein, the Issuer shall execute and deliver such amendments,
releases and/or termination statements as may be necessary to release the lien
on such Leased Equipment or Leased Land created under the Security Deed.

                                   ARTICLE IV

                   COMMENCEMENT AND COMPLETION OF THE PROJECT;
               ISSUANCE OF THE SERIES 1999 BONDS; ADDITIONAL BONDS

         SECTION 4.1. AGREEMENT TO CONSTRUCT AND INSTALL THE PROJECT. Not later
than the delivery of this Lease the Issuer will have acquired the title in and
to the Leased Land and, subject to the provisions of Section 4.6 hereof, the
Issuer agrees that it will cause the acquisition, construction and installation
of the Buildings to be made in accordance with the Project Summary, as may be
amended from time to time by the Lessee, filed or to be filed with the Issuer,
and will cause to be acquired and installed in the Building or on the Leased
Land, the Leased Equipment, to consist of machinery, equipment and related
property described in the list attached hereto as Exhibit "B" and such other
items of machinery, equipment and related property as in the Lessee's judgment
may be necessary or desirable for the operation of the Project and as shall from
time to time prior to the Completion Date be specified in written orders from
the Lessee to the Issuer, all of which acquisitions and installations shall be
made substantially in accordance with directions given by the Lessee. Any
changes to the Project Summary shall be made at the sole discretion of the
Lessee and shall also be filed with the Secretary of the Issuer and the
Authorized Lessee Representative. The Building and the Leased Equipment shall be
the property of the Issuer and subject to the terms of this Lease.

         The Issuer hereby makes, constitutes and appoints the Lessee as its
true, lawful and exclusive agent for the acquisition, construction and
installation of the Project, and the Lessee hereby accepts such agency to act
and do all things on behalf of the Issuer, to perform all acts of the Issuer
hereinbefore provided in this Section 4.1, and to bring any actions or
proceedings

                                       -13-
<PAGE>

against any person which the Issuer might bring with respect thereto as the
Lessee shall deem proper. The Issuer hereby ratifies and confirms all actions
of, and assumes and adopts all contracts entered into by, the Lessee with
respect to the Project prior to the date hereof. This appointment of the Lessee
to act as agent and all authority hereby conferred or granted is conferred and
granted irrevocably, until all activities in connection with the acquisition,
construction and installation of the Project shall have been completed, and
shall not be terminated prior thereto by act of the Issuer or of the Lessee.

         The Issuer agrees that only such changes will be made in the Project
Summary as may be specified by an Authorized Lessee Representative. The Issuer
agrees that it will enter into, or accept the assignment of, such contracts as
the Lessee may request in order to effectuate the purposes of this Section, but
that it will not execute any other contract or give any order for the
construction of the Building or any modification thereto or the acquisition and
installation of the Leased Equipment unless and until the Authorized Lessee
Representative shall have approved the same in writing.

         The Issuer (or the Lessee, as its agent), agrees to complete the
acquisition, construction and installation of the Project in accordance with the
Project Summary as promptly as practicable after the date of the execution and
delivery of this Lease, to continue said construction with all reasonable
dispatch and to use its best efforts to cause said construction to be completed
as soon as practicable, delays incident to strikes, riots, acts of God or the
public enemy beyond the reasonable control of the Issuer or the Lessee only
excepted, but if said acquisition, construction and installation is not
completed within the time herein contemplated there shall be no resulting
liability on the part of the Issuer and no diminution in or postponement of the
rents required in Section 5.3 hereof to be paid by the Lessee. The Issuer (or
the Lessee, as its agent) agrees to effect the acquisition and installation of
the Leased Equipment as promptly as practicable after specification by the
Lessee of the items to be installed and receipt of the installation schedule
desired by the Lessee.

         The Leased Equipment shall include all property located on the Leased
Land to be tagged or otherwise adequately identified in the records of the
Lessee in such manner so as to permit its identification as part of the Leased
Equipment.

         SECTION 4.2. AGREEMENT TO ISSUE SERIES 1999 BONDS; APPLICATION OF
SERIES 1999 BOND PROCEEDS. In order to provide funds for payment of the cost of
the acquisition, construction and installation of the Project provided for in
Section 4.1 hereof, the Issuer agrees that as soon as possible it will
authorize, sell and cause to be delivered to the initial purchaser or purchasers
thereof, the Series 1999 Bonds, bearing interest and maturing as set forth in
Article III of the Indenture, at a price to be approved by the Lessee. Upon
receipt of the proceeds derived from the sale of the Series 1999 Bonds, the
Issuer will deposit said proceeds received upon said sale in the Construction
Fund under the Collateral Agency Agreement. The Bonds will be authenticated and
delivered in two or more increments and at different times as provided in
Article II of the Indenture.

         SECTION 4.3. DISBURSEMENTS FROM THE CONSTRUCTION FUND. (a) The Issuer
will in the Indenture authorize and direct the Trustee to designate the
Collateral Agent as agent for the Trustee with respect to the disbursement of
moneys in the Construction Fund in accordance with

                                       -14-
<PAGE>

the provisions of the Collateral Agency Agreement for the payment of all
"Project Costs," as defined in the Common Agreement. To the extent not otherwise
included therein, Project Costs shall be deemed to include the following:

          (i) Payment of the initial or acceptance fee of the Trustee and
     customary and reasonable fees and expenses of the Trustee and its counsel;
     the fees and expenses for recording or filing the deed whereby fee simple
     title in and to the Leased Land has been or is to be conveyed to the
     Issuer; the fees and expenses for recording or filing this Lease, the
     Indenture, the Security Deed, the Security Documents and any other
     documents by which this Lease is assigned as security for the Series 1999
     Bonds; the fees and expenses for recording or filing any documents that the
     Lessee may deem desirable to file for record in order to protect the title
     of the Issuer to the Project, or any part thereof; and the fees and
     expenses in connection with any actions or proceedings that the Lessee may
     deem desirable to bring in order to perfect or protect the title of the
     Issuer to the Project;

          (ii) Payment to the Lessee and the Issuer, as the case may be, of such
     amounts, if any, as shall be necessary to reimburse the Lessee and the
     Issuer in full for all advances and payments made by them or either of them
     prior to or after the delivery of the Series 1999 Bonds for expenditures in
     connection with the acquisition by the Issuer or the Lessee of fee simple
     title to the Leased Land (including the cost of the Leased Land and of any
     options to purchase the Leased Land and rights-of-way for the purpose of
     providing access (including utility access to and from the Leased Land),
     clearing the Leased Land, site improvement, the preparation of the plans
     and specifications for the Project (including any preliminary study or
     planning of the Project or any aspect thereof), the acquisition,
     construction and installation of the Project, the acquisition, construction
     and installation necessary to provide utility services or other facilities
     including trackage to connect the Project with public transportation
     facilities, and the acquisition, construction and installation of all real
     or personal properties deemed necessary in connection with the Project, and
     any architectural, engineering and supervisory services with respect to any
     of the foregoing;

          (iii) Payment of, or reimbursement of the Issuer or the Lessee for,
     the customary and reasonable legal and accounting fees and expenses,
     financial consultants' fees, rating agencies' fees, financing charges
     (including underwriting or placement fees) and printing and engraving costs
     incurred in connection with the authorization, sale and issuance of the
     Series 1999 Bonds, the preparation of this Lease, the Indenture, the
     Security Deed, the Financing Statements and all other documents in
     connection therewith and in connection with acquisition of title to the
     Project;

          (iv) Payment for labor, services, materials and supplies used or
     furnished in site improvement and in the acquisition, construction and
     installation of the Project, all as provided in the plans and
     specifications therefor; payment for the cost of the acquisition,
     construction and installation of utility services or other facilities, and
     payment for the cost of all real and personal property deemed necessary in
     connection with the Project; and payment for the miscellaneous expenses
     incidental to any of the foregoing;

                                       -15-
<PAGE>

          (v) Payment of the fees, if any, for architectural, engineering and
     supervisory services with respect to the Project;

          (vi) Payment, as such payments become due, of the fees and expenses of
     the Trustee and the fees and expenses of its counsel properly incurred
     under the Indenture that may become due during the Construction Period;

          (vii) To such extent as they shall not be paid by a contractor for
     acquisition, construction or installation with respect to any part of the
     Project, payment of the premiums on all insurance required to be taken out
     and maintained during the Construction Period under this Lease, or
     reimbursement thereof if paid by the Lessee under Section 6.4 hereof;

          (viii) Payment of the taxes, assessments and other charges, if any,
     referred to in Section 6.3 hereof that may become payable during the
     Construction Period; and

          (ix) Payment of expenses incurred with approval of the Lessee in
     seeking to enforce any remedy against any contractor or subcontractor in
     respect of any default under a contract relating to the Project.

         (b) The payments specified in subsection (a) of this Section shall be
made by the Collateral Agent from the Construction Fund in accordance with the
provisions of Article III of the Collateral Agency Agreement.

         SECTION 4.4. OBLIGATION OF THE PARTIES TO COOPERATE IN FURNISHING
DOCUMENTS TO TRUSTEE. The Issuer and the Lessee agree to cooperate with each
other in furnishing to the Collateral Agent the documents referred to in the
Collateral Agency Agreement that are required to effect payments out of the
Construction Fund, and to cause such requisitions and certificates to be
directed by the Authorized Lessee Representative to the Collateral Agent as may
be necessary to effect payment out of the Construction Fund in accordance with
Collateral Agency Agreement. Such obligation of the Issuer and the Lessee is
subject to any provisions of this Lease, the Collateral Agency Agreement or the
Common Agreement requiring additional documentation with respect to payments;
provided, however, such obligation shall, with respect to this Lease and the
Indenture, not extend beyond the moneys in the Construction Fund available for
payment under the terms of the Collateral Agency Agreement.

         SECTION 4.5. ESTABLISHMENT OF COMPLETION DATE. The Completion Date
shall be evidenced to the Trustee by a certificate delivered in accordance with,
and containing such certifications and representations are required under,
Section 3.2 of the Collateral Agency Agreement.

         SECTION 4.6. ISSUER NOT REQUIRED TO PAY PROJECT COSTS IN EVENT
CONSTRUCTION FUND INSUFFICIENT. The Issuer does not make any warranty, either
express or implied, that the moneys which will be paid into the Construction
Fund and which, under the provisions of this Lease, will be available for
payment of the costs of the Project, will be sufficient to pay all the costs
which will be incurred in that connection. The Lessee agrees that if after
exhaustion of the moneys in the Construction Fund, the Lessee should pay or
cause to be paid any portion of the costs of the Project, it shall not be
entitled to any reimbursement therefor from the Issuer or from

                                       -16-
<PAGE>

the Trustee or from the holders of any of the Bonds nor shall it be entitled to
any diminution in or postponement of the rental payments required in Section 5.3
hereof to be paid by the Lessee.

         SECTION 4.7. ISSUER TO PURSUE REMEDIES AGAINST SUPPLIERS, CONTRACTORS
AND SUBCONTRACTORS AND THEIR SURETIES. In the event of any default of any
supplier, contractor or subcontractor under any contract made by it in
connection with the Project or in the event of breach of warranty with respect
to any material, workmanship or performance guaranty, the Issuer will promptly
proceed (only at the written direction and sole cost of the Lessee), either
separately or in conjunction with others, to exhaust the remedies of the Issuer
against any defaulting supplier, contractor or subcontractor and against any
surety therefor, for the performance of any contract made in connection with the
Project. The Issuer agrees to advise the Lessee of the steps it intends to take
in connection with any such default, and will not consent to any settlement
agreement without the prior written consent of the Lessee. If the Lessee shall
so notify the Issuer in writing, the Lessee may, in its own name or in the name
of the Issuer, prosecute or defend any action or proceeding or take any other
action involving any such supplier, contractor, subcontractor or surety which
the Lessee deems reasonably necessary, and in such event the Issuer hereby
agrees to cooperate fully with the Lessee and to take all action necessary to
effect the substitution of the Lessee for the Issuer in any such action or
proceeding. Any amounts recovered by way of damages, refunds, adjustments or
otherwise in connection with the foregoing prior to the Completion Date shall be
applied in accordance with the Collateral Agency Agreement.

         SECTION 4.8. INVESTMENT OF MONEYS PERMITTED. Any moneys held as part of
the Bond Fund shall be invested or reinvested by the Trustee upon the oral
request and direction of the Authorized Lessee Representative, promptly
confirmed in writing in Permitted Investments. Such investments shall mature or
shall be subject to sale prior to maturity in such amounts and at such times as
may be necessary to provide funds when needed to make payments from the Bond
Fund. The Trustee may make any and all such investments through its own bond
department. Any interest or gain received from such investments of the moneys in
the Bond Fund shall be credited to and held in the Bond Fund and any loss from
such investments shall be charged against the Bond Fund.

         Any moneys held as part of the Construction Fund shall be invested or
reinvested in accordance with the Collateral Agency Agreement.

         SECTION 4.9. ISSUANCE OF ADDITIONAL BONDS. So long as there shall not
have occurred and be continuing an Event of Default hereunder or an event of
default under the Indenture, the Issuer shall, from time to time at the request
of the Lessee, use its best efforts to issue Additional Bonds in aggregate
principal amounts as requested by the Lessee under the terms and conditions
provided herein and in the Indenture, the Security Deed and the Common
Agreement, but in no event shall the Issuer be liable for not issuing Additional
Bonds. Additional Bonds may be issued to finance the cost of (a) completing the
acquisition, construction and installation of the Project, (b) providing for the
enlargement, improvement, expansion or replacement of the Project, (c) refunding
all of the Bonds of any one or more series then outstanding or (d) any
combination of the foregoing; provided, in any case, that either prior to or
contemporaneously with the issuance of Additional Bonds (i) the terms,
conditions, manner of issuance, purchase price, delivery and contemplated
disposition of the proceeds of the sale of

                                       -17-
<PAGE>

such Additional Bonds shall have been approved in writing by the Lessee,
executed by the chairman of the board, president or any vice president of the
general partner of the Lessee, and (ii) the conditions specified in the
Indenture with respect to the issuance of such Additional Bonds shall have been
satisfied.

                                   ARTICLE V

                          EFFECTIVE DATE OF THIS LEASE;
                    DURATION OF LEASE TERM; RENTAL PROVISIONS

SECTION 5.1. EFFECTIVE DATE OF THIS LEASE; DURATION OF LEASE TERM. This Lease
shall become effective upon its delivery. The leasehold interest created by this
Lease shall then begin, and, subject to the other provisions of this Lease
(including particularly Articles X, XI, and XII hereof), shall expire at
midnight, February 1, 2030, or if at said time and on said date Payment in Full
of the Bonds shall not have been made, then on such date as such payment shall
have been made. Articles X, XI and XII shall survive the expiration of the
leasehold created by this Lease.

SECTION 5.2. DELIVERY AND ACCEPTANCE OF POSSESSION. The Issuer agrees to deliver
to the Lessee sole and exclusive possession of the Project (subject to the right
of the Trustee to enter thereon for inspection and other purposes as set forth
in Section 8.2 hereof) on the effective date of this Lease and the Lessee agrees
            to accept possession of the Project upon such delivery.

SECTION 5.3. RENTS AND OTHER AMOUNTS PAYABLE. (a) On or before February 1 and
August 1 in each year, commencing August 1, 2000, until Payment in Full of the
Bonds, the Lessee shall pay or cause to be paid to the Collateral Agent, for the
account of the Trustee and the Issuer, as rents for the Project a sum equal to
the amount payable on such date as principal of and redemption premium (if any)
and interest on the Bonds, as provided in the Indenture. Such amounts shall be
applied by the Collateral Agent in accordance with the Collateral Agency
Agreement. Each rental payment under this Section shall be sufficient to pay the
total amount of principal, interest and premium (if any) payable on such
semiannual interest payment date, and if at any semiannual interest payment date
the balance in the Bond Fund is insufficient to make required payments of
principal, interest and premium (if any) on such date, the Lessee shall
forthwith pay any such deficiency.

         Anything herein to the contrary notwithstanding, any amount at any time
held by the Trustee in the Bond Fund shall be credited against the next
succeeding rental payment and such credit shall reduce the payment to be then
made by the Lessee; and further, if the amount held by the Trustee in the Bond
Fund shall be sufficient to pay at the times required the principal of and
redemption premium (if any) and interest on all Bonds then remaining unpaid, and
any and all other amounts due and payable hereunder and under the Indenture as
contemplated in Article X thereof, the Lessee shall not be obligated to make any
further rental payments under the provisions of this Section.

                                       -18-
<PAGE>

     (b) The Lessee agrees to pay or cause to be paid to Heard County and the
Issuer, as applicable, until payment in full of the Bonds, the fees set forth on
the schedule attached as Exhibit "G" hereto, payable in annual or semi-annual
installments.

     (c) The Lessee agrees to pay or cause to be paid to the Trustee until
Payment in Full of the Bonds (i) at least once a year an amount equal to the
annual fee of the Trustee for the services of the Trustee rendered and its
expenses incurred under the Indenture and (ii) the reasonable fees of Trustee's
Counsel as provided in the Indenture, as and when the same become due.

     (d) If the Lessee should fail to make any of the payments required in this
Section, the item or installment so in default shall continue as an obligation
of the Lessee until the same shall have been fully paid. The provisions of this
Section shall be subject to the provisions of Section 9.6 hereof.

     SECTION 5.4. PLACE OF RENTAL PAYMENTS. The rents provided for in paragraph
(a) of Section 5.3 hereof shall be paid directly to the Collateral Agent, as
agent for the Trustee, for the account of the Issuer, and will be applied in
accordance with the Collateral Agency Agreement. The payments provided for in
paragraph (b) of Section 5.3 hereof shall be paid directly to Heard County or
the Issuer, as applicable, for their own use. The payments provided for in
paragraph (c) of Section 5.3 hereof shall be paid directly to the Trustee for
its own use or for disbursement to any other paying agent on the Bonds, as the
case may be.

     SECTION 5.5. OBLIGATIONS OF LESSEE HEREUNDER ABSOLUTE AND UNCONDITIONAL.
The obligations of the Lessee to make the payments required in Section 5.3
hereof and to perform and observe the other agreements on its part contained
herein shall be absolute and unconditional. Until such time as Payment in Full
of the Bonds shall have been made, the Lessee (i) will not suspend or
discontinue any payments provided for in Section 5.3 hereof except to the extent
the same have been prepaid, (ii) will perform and observe all of its other
agreements contained in this Lease Agreement, and (iii) except as provided in
Sections 11.1 and 11.2 hereof, will not terminate the Lease Term for any cause,
including, without limiting the generality of the foregoing, failure of the
Issuer to complete the Project, failure of the Issuer's title in and to the
Project or any part thereof, any acts or circumstances that may constitute
failure of consideration, eviction or constructive eviction, destruction of or
damage to the Project, commercial frustration of purpose, any change in the tax
or other laws of the United States of America or of the State of Georgia or any
political subdivision of either thereof or any failure of the Issuer to perform
and observe any agreement, whether express or implied, or any duty, liability or
obligation arising out of or connected with this Lease Agreement or the
Indenture. Nothing contained in this Section shall be construed to release the
Issuer from the performance of any of the agreements on its part herein
contained; and if the Issuer should fail to perform any such agreement, the
Lessee may institute such action against the Issuer as the Lessee may deem
necessary to compel performance or recover its damages for nonperformance so
long as such action shall not conflict with the agreements on the part of the
Lessee contained in the preceding sentence. The Lessee may, however, at its own
cost and expense and in its own name or in the name of the Issuer, prosecute or
defend any action or proceeding or take any other action involving third persons
which the Lessee deems reasonably necessary or in order to insure the
acquisition, construction, installation and completion of the Project or to
secure or protect its

                                       19
<PAGE>

right of possession, occupancy and use of the Project hereunder, and in such
event the Issuer hereby agrees to cooperate fully with the Lessee and to take
all lawful action which is required to effect the substitution of the Lessee for
the Issuer in any such action or proceeding if the Lessee shall so request.

     SECTION 5.6. LESSEE'S PERFORMANCE UNDER INDENTURE. The Lessee agrees, for
the benefit of the owners (including the Collateral Agent, as pledgee of the
Bonds under the Partnership Assignment and Security Agreement) from time to time
of the Bonds, to do and perform all acts and things contemplated in the
Indenture to be done or performed by it.

                                   ARTICLE VI

               MAINTENANCE AND MODIFICATIONS, TAXES AND INSURANCE

     SECTION 6.1. MAINTENANCE AND MODIFICATIONS OF PROJECT BY LESSEE.

     (a) The Lessee will cause the Project to be maintained, preserved and kept
in good repair, working order and condition and will from time to time cause to
be made all necessary and proper repairs, replacements and renewals as provided
in and in accordance with the terms and conditions of the Common Agreement.

     (b) The Lessee covenants that as long as the Lessee or any of its
subsidiaries or affiliates operates the Project, it or such subsidiary or
affiliate will cause the Project to be maintained and operated as a "project"
under the Act as in effect on the date hereof.

     (c) The Lessee may from time to time, in its sole discretion, at its own
expense and not from the proceeds of the Bonds, make any additions,
modifications or improvements to the Project, including installation of
additional machinery, equipment and related property in the Building or on the
Leased Land, which it may deem desirable for its business purposes. All
machinery, equipment and related property so installed by the Lessee shall
remain the sole property of the Lessee in which neither the Issuer nor the
Trustee shall have any interest. All such machinery, equipment and other related
property may be modified or removed at any time.

     SECTION 6.2. REMOVAL OF LEASED EQUIPMENT. The Issuer shall not be under any
obligation to renew, repair or replace any inadequate, obsolete, worn out,
unsuitable, undesirable, inappropriate or unnecessary Leased Equipment. In any
instance where the Lessee in its sole discretion (but subject to the provisions
of the Collateral Agency Agreement and the Common Agreement) determines that any
such items have become inadequate, obsolete, worn out, unsuitable, undesirable,
inappropriate or unnecessary for their purposes at such time, the Lessee may
remove such items of Leased Equipment and (on behalf of the Issuer) sell, trade
in, exchange or otherwise dispose of them (as a whole or in part) without any
responsibility or accountability to the Issuer or the Trustee therefor. The
removal from the Project of any portion of the Leased Equipment pursuant to the
provisions of this Section shall not entitle the Lessee to any abatement or
diminution in amount of the rents payable under Section 5.3 hereof.

         At the option of the Lessee, at any time prior to the Completion Date,
the Lessee may pay the proceeds of any such sale, trade-in or other disposition
of such items of Leased Equipment to

                                       20
<PAGE>

the Trustee with written instructions to deposit such moneys in accordance with
the Collateral Agency Agreement whereupon such moneys shall become subject to
the Collateral Agency Agreement and shall be disbursed in the manner set forth
in the Collateral Agency Agreement and Article IV hereof.

     The Lessee shall deliver to the Issuer a bill of sale or other appropriate
documents conveying to the Issuer title to any machinery, equipment or related
property installed or placed in the Building or upon the Leased Land pursuant to
this Section 6.2, and upon the request of the Lessee, the Issuer shall deliver
and cause or direct the Trustee to deliver to the Lessee an Amendment to Lease
Agreement in substantially the form of Exhibit "E" hereto or other appropriate
documents conveying to the Lessee title to any property removed from the Project
pursuant to this Section 6.2 and releasing the same from the provisions of this
Lease and from the lien of the Indenture and the Security Deed and canceling any
Security Interest with respect thereto.

     The preceding provisions of this Section 6.2 shall apply only so long as
any part of the principal of or the interest on any of the Bonds remains unpaid.
After Payment in Full of the Bonds, neither the Issuer nor the Lessee shall be
under any obligation hereunder to renew, repair or replace any of the Leased
Equipment that may become inadequate, obsolete, worn out, unsuitable,
undesirable or unnecessary in the operation of the Project, and after such
Payment in Full of the Bonds the Lessee may, if in its sole discretion any item
of the Leased Equipment has become inadequate, obsolete, worn out, unsuitable,
undesirable or unnecessary in the operation of the Project, remove such item of
Leased Equipment from the Project and (on behalf of the Issuer) sell, trade in,
exchange or otherwise dispose of it, without any responsibility or
accountability to the Issuer therefor and without being required to substitute
and install in the Project other equipment in substitution therefor, and may
retain any money or other consideration received by it upon any disposition of
any such item of Leased Equipment.

     SECTION 6.3. TAXES, OTHER GOVERNMENTAL CHARGES AND UTILITY CHARGES. The
Issuer and the Lessee further acknowledge that under present law no part of the
Project owned by the Issuer will be subject to ad valorem taxation by the State
of Georgia or by any political or taxing subdivision thereof, and that under
present law the income and profits (if any) of the Issuer from the Project are
not subject to either Federal or Georgia taxation and these factors have induced
the Lessee to enter into this Lease.

     Subject to the provisions of the Collateral Agency Agreement and the Common
Agreement the Lessee may, at its own expense and in its own name and behalf or
in the name and behalf of the Issuer, in good faith contest any taxes,
assessments and other charges and, in the event of any such contest, may permit
the taxes, assessments and other charges so contested to remain unpaid during
the period of such contest and any appeal therefrom. The Issuer shall cooperate
fully with the Lessee in any such contest. If the Lessee shall fail to pay any
of the foregoing items required by this Section to be paid by the Lessee, the
Issuer or the Trustee may (but shall be under no obligation to) pay the same and
any amounts so advanced therefor by the Issuer or the Trustee shall become an
additional obligation of the Lessee to the one making the advancement, which
amounts the Lessee agrees to pay.

                                       21
<PAGE>

     SECTION 6.4. INSURANCE REQUIRED. During the acquisition, construction,
installation and equipping of the Project, and throughout the Lease Term, the
Issuer and the Trustee shall be named as additional insureds under any insurance
policy or policies required to be maintained by the Lessee under the Common
Agreement, as their respective interests may appear.

     SECTION 6.5. APPLICATION OF INSURANCE PROCEEDS. The Insurance Proceeds of
the insurance carried pursuant to the provisions of Section 6.4 hereof shall be
applied in accordance with the provisions of the Collateral Agency Agreement.

     SECTION 6.6. ADDITIONAL PROVISIONS RESPECTING INSURANCE. The Lessee shall
furnish to the Issuer and the Trustee at closing and annually thereafter a
certificate of the Authorized Lessee Representative or other evidence
satisfactory to the Issuer and the Trustee that it is in compliance with the
requirements of Section 5.1(b) of the Common Agreement relating to maintenance
of insurance.

     SECTION 6.7. OTHER ISSUER EXPENSES. Anything to the contrary herein
notwithstanding, the Lessee shall pay any expenses not specifically mentioned
herein which are reasonably incurred by the Issuer in connection with the
Project, this Lease, the Indenture or the Bonds, and which are not paid from the
Construction Fund pursuant to Section 4.3 hereof.

     SECTION 6.8. [INTENTIONALLY OMITTED].

     SECTION 6.9. INDEMNIFICATION OF ISSUER AND THE TRUSTEE. The Lessee shall,
to the extent permitted by applicable law, indemnify and save the Issuer and the
Trustee and the officers, agents, employees and attorneys of each harmless
against and from all claims by or on behalf of any person, firm or corporation
or governmental entity arising from the conduct or management of, or from any
work or thing done on, the Project during the Lease Term, and against and from
all claims arising during the Lease Term from (a) any condition of the Project,
(b) any breach or default on the part of the Lessee in the performance of any of
its obligations under this Lease, (c) any contract entered into in compliance
with the provisions of Section 4.1 hereof in connection with the acquisition,
construction and installation of the Project, (d) any act of negligence of the
Lessee or of any of its agents, contractors, servants, employees or licensees,
(e) any act of negligence of any sublessee of the Lessee, or of any agents,
contractors, servants, employees or licensees of any sublessee of the Lessee,
(f) in the case of the Issuer and the Trustee and the respective officers,
agents and attorneys of each, against and from any loss, liability, expense or
claim arising under or in connection with the acceptance or administration of
the Trust Estate or the performance by the Trustee of its duties and obligations
under the Indenture, and (g) including without limiting the generality of the
foregoing, any loss, liability or expense arising under the Comprehensive
Environmental Response Compensation and Liability Act of 1980 as amended, and
any other environmental statute, rule or regulation.

         The Lessee shall indemnify and save the Issuer and the Trustee and the
officers, agents, employees and attorneys of each harmless from and against all
costs and expenses incurred in or in connection with any action or proceeding
brought on such claims, and upon notice from the Issuer or the Trustee, the
Lessee shall defend them or either of them in any such action or proceeding.
Nothing contained herein shall require the Lessee to indemnify the Issuer and
the Trustee and the officers, agents, employees and attorneys of each for any
claim or liability

                                       22
<PAGE>

resulting from the Issuer's or the Trustee's own willful acts or gross
negligence. The Issuer or the Trustee shall reimburse the Lessee for payments
made by the Lessee pursuant to this Section 6.9 to the extent of any proceeds,
net of all expenses of collection, actually received by either such party from
any insurance covering such claims with respect to the losses sustained. The
Issuer or the Trustee, as applicable shall promptly claim any such insurance
proceeds and shall assign its rights to such proceeds, to the extent of such
required reimbursement, to the Lessee.

     In case any action shall be brought against the Issuer or the Trustee in
respect of which indemnity may be sought against the Lessee, the Issuer or the
Trustee, as applicable shall promptly notify the Lessee in writing and the
Lessee shall have the right to assume the investigation and defense thereof
including the employment of counsel and the payment of all expenses. Failure to
give any such notice shall not affect the right of the Issuer or Trustee, as
applicable, to receive the indemnification provided herein; unless such failure
resulted from the gross negligence or wilful misconduct of the Issuer or the
Trustee, such failure could not be remedied and the result of such failure is
that the interests of the Lessee were materially and adversely affected as a
direct result of such failure. The Issuer or the Trustee, as applicable shall
have the right to employ separate counsel in any such action and participate in
the investigation and defense thereof, but the fees and expenses of such counsel
shall be paid by the Issuer or the Trustee, as applicable, unless (i) the
employment of such counsel has been authorized by the Lessee, or (ii) the Lessee
shall have failed promptly after receiving notice of such action from the Issuer
or the Trustee, as applicable, to assume the defense of such action and employ
counsel reasonably satisfactory to the Issuer or the Trustee, as applicable, or
(iii) the named parties to any such action (including any impleaded parties)
include both the Issuer or the Trustee, as applicable, and the Lessee or an
affiliate of the Lessee, and the Issuer or the Trustee, as applicable, shall
have been advised by counsel that there may be one or more legal defenses
available to such party which are different from or in addition to those
available to the Lessee or affiliate of the Lessee or (iv) the Issuer or the
Trustee, as applicable, shall have been advised by counsel that there is a
conflict on any issue between the Issuer or the Trustee, as applicable, and the
Lessee (in which case, if the Issuer or the Trustee, as applicable, notifies the
Lessee in writing that it elects to employ separate counsel at the expense of
the Lessee, the Lessee shall not have the right to assume the defense of such
action or proceeding on behalf of the Issuer or the Trustee, as applicable). The
Lessee shall not be liable for any settlement of any such action without its
consent but, if any such action is settled with the consent of the Lessee or if
there be a final unappealable judgment for the plaintiff in any such action, the
Lessee agrees to indemnify and hold harmless the Issuer and the Trustee and the
officers, agents, employees and attorneys of each from and against any loss by
reason of such settlement or judgment.

     Nothing herein shall be construed as requiring the Issuer or the Trustee to
acquire or maintain insurance of any form or nature with respect to the Project
or any portion thereof or with respect to any phrase, term, provision, condition
or obligation of this Lease or any other matter in connection herewith. The
obligations of the Lessee under this Section 6.9 shall survive the termination
of this Lease and the satisfaction and discharge of the Indenture and shall
continue in full force and effect, binding the Lessee to the provisions of this
Section 6.9 without regard to the manner of termination of this Lease.

                                       23
<PAGE>

                                  ARTICLE VII

                      DAMAGE, DESTRUCTION AND CONDEMNATION

     SECTION 7.1. DAMAGE AND DESTRUCTION. Upon damage or destruction of all or a
portion of the Project, all Insurance Proceeds shall be applied in accordance
with the Collateral Agency Agreement; provided, however, in the event that prior
to Payment in Full of the Bonds the Project is damaged or destroyed by fire or
other casualty, the Lessee shall be obligated to continue to make the rental
payments specified in Section 5.3 hereof and, if the Project is to be replaced,
repaired, rebuilt or restored, it shall be replaced, rebuilt or restored in such
manner as will not change its character to such an extent that its ownership by
the Issuer would not be permitted under the Act. Any such replacement, repair,
rebuilding or restoration shall be made in accordance with the terms and
conditions set forth in the Collateral Agency Agreement and the Common
Agreement.

     SECTION 7.2. CONDEMNATION. In the event all or a portion of the Project is
taken by the exercise of the power of condemnation or eminent domain, all
Eminent Domain Proceeds (as defined in the Common Agreement) shall be applied in
accordance with the provisions of the Collateral Agency Agreement; provided,
however, in the event that prior to the Payment in Full of the Bonds, title in
and to, or the temporary use of, the Project or any part thereof shall be taken
under the exercise of the power of eminent domain by any governmental body or by
any person, firm or corporation acting under governmental authority, the Lessee
shall be obligated to continue to make the rental payments specified in Section
5.3 hereof, and, if the Project is to be replaced, rebuilt or restored, it shall
be replaced, rebuilt or restored in such manner as will not change its character
to such extent that its ownership by the Issuer would not be permitted under the
Act. To the extent there shall be acquired and installed other machinery,
equipment or related property suitable for the Lessee's operations at the
Project, title to such machinery, equipment or related property will be conveyed
to the Issuer by bill of sale and will be deemed a part of the Project and
available for use and occupancy by the Lessee without the payment of any rent
other than the payments specified in Section 5.3 hereof. Any such replacement,
rebuilding or restoration shall be made in accordance with the terms and
conditions set forth in the Security Deed, the Collateral Agency Agreement and
the Common Agreement.

                                  ARTICLE VIII

                                SPECIAL COVENANTS

     SECTION 8.1. NO WARRANTY OF CONDITION OR SUITABILITY BY THE ISSUER. THE
ISSUER MAKES NO WARRANTY, EITHER EXPRESS OR IMPLIED, AS TO THE CONDITION OF THE
PROJECT OR THAT IT WILL BE SUITABLE FOR THE LESSEE'S PURPOSES OR NEEDS. The
Lessee releases the Issuer from, agrees that the Issuer shall not be liable for
and agrees, to the extent permitted by applicable law, to hold the Issuer
harmless against, any loss that may be occasioned by the condition of the
Project or its suitability for the Lessee's purposes or needs.

     SECTION 8.2. INSPECTION OF PROJECT; RIGHT OF ACCESS TO THE PROJECT BY THE
ISSUER. The Lessee agrees that the Authorized Issuer Representative, the Trustee
or either of their duly

                                       24
<PAGE>

authorized agents who are acceptable to the Lessee shall have the right at all
reasonable times during business hours, to enter upon, examine and inspect the
Project, provided that this does not result in any interference or prejudice to
the Lessee's operations. Provided that the Lessee is not in default hereunder,
such inspection shall only be made in the presence of an official of the Lessee.
The Lessee further agrees that the Issuer and its duly authorized agents shall
have such rights of access to the Project as may be reasonably necessary to
cause to be completed the acquisition, construction and installation provided
for in Section 4.1 hereof.

     SECTION 8.3. LESSEE TO MAINTAIN ITS EXISTENCE; EXCEPTIONS PERMITTED. The
Lessee agrees that as long as the Bonds, or any portion thereof shall remain
outstanding, it shall comply with Section 5.1(d)(i) and Section 5.2(e) of the
Common Agreement with respect to maintenance of existence and sales of assets.

     SECTION 8.4. QUALIFICATION IN GEORGIA. The Lessee warrants (except as may
be otherwise permitted pursuant to the provisions of Section 8.3 above) that it
is and throughout the Lease Term it will continue to be a limited partnership
either organized under the laws of the State of Georgia or duly qualified to do
business in the State of Georgia, as the case may be.

     SECTION 8.5. GRANTING AND RELEASE OF EASEMENTS; AMENDING OR MODIFYING
EASEMENTS. Subject to the provisions of the Collateral Agency Agreement and the
Common Agreement, the Lessee may at any time or times cause to be granted
easements, licenses, rights-of-way (temporary or perpetual and including the
dedication of public highways), restrictive covenants (including, without
limitations, the restrictive covenants necessary to comply with environmental
permits) and other rights or privileges in the nature of easements or
restrictive covenants with respect to any property included in the Project and
such grant will be free from the lien or security interests created by the
Indenture or this Lease, or the Lessee may cause to be amended, modified or
released existing easements, licenses, rights-of-way, restrictive covenants and
other rights or privileges in the nature of easements or restrictive covenants,
held with respect to any property included in the Project with or without
consideration, and the Issuer agrees that it shall execute and deliver and will
cause the Trustee to execute and deliver any instrument necessary or appropriate
to confirm and grant, amend, modify or release any such easement, restrictive
covenant, license, right-of-way or other right or privilege upon receipt of: (i)
a copy of the instrument of grant, covenant, amendment, modification or release,
and (ii) a written application of the Lessee signed by an Authorized Lessee
Representative requesting such instrument and stating (1) that such grant,
covenant, amendment, modification or release is not detrimental to the proper
conduct of the business of the Lessee, and (2) that such grant, covenant,
amendment, modification or release will not impair the effective use or
materially interfere with the operation of the Project and will not materially
diminish or impair the security intended to be given by or under this Lease, the
Indenture or the Security Deed.

     SECTION 8.6. RELEASE OF CERTAIN LAND. Notwithstanding any other provision
of this Lease, but subject to the provisions of the Collateral Agency Agreement
and the Common Agreement, the parties hereto reserve the right at any time and
from time to time by mutual agreement to amend this Lease for the purpose of
effecting the release and removal from this Lease (i) of any unimproved part of
the Leased Land (on which neither the Building nor any Leased Equipment is
located but on which parking, transportation, utility facilities or other
support facilities may be located) on which the Issuer proposes to construct
improvements for

                                       25
<PAGE>

lease under another and different lease agreement or (ii) of any part of the
Leased Land with respect to which the Issuer proposes to convey a fee or other
title to a railroad or other public body or quasi-public body or to a public
utility in order that transportation facilities or services by rail, water, road
or other means or utility services for the Project, for the benefit of the
Lessee, may be provided, increased or improved; provided, that if at the time
any such amendment is made any of the Bonds are outstanding and unpaid, there
shall be deposited with the Trustee the following:

     (a) an executed copy of said amendment in the form attached as Exhibit "E"
hereto;

     (b) a resolution of the Issuer (i) stating that the Issuer is not in
default under any of the provisions of this Lease or the Indenture and that the
Lessee is not, to the knowledge of the Issuer, in default under any of the
provisions of this Lease, (ii) giving an adequate legal description of that
portion of the Leased Land to be released, (iii) stating the purpose for which
the Issuer desires the release, (iv) stating that the improvements which will be
constructed or the facilities and services which will be provided, increased or
improved will be such as will promote the purposes for which the Issuer was
created, and (v) requesting such release;

     (c) an opinion of Counsel to the Lessee that all necessary action required
under its limited partnership agreement has been taken to authorize and approve
such amendment together with an officer's certificate stating that the Lessee is
not in default under any of the provisions of this Lease;

     (d) a copy of the agreement wherein the Issuer agrees to construct or
install improvements on the portion of the Leased Land so requested to be
released and agrees to lease the same to the lessee under said lease agreement,
and wherein such lessee agrees to lease the same from the Issuer or a copy of
the instrument conveying the title to a railroad, public utility or public or
quasi-public body; and

     (e) a certificate of an Authorized Lessee Representative, dated not more
than 60 days prior to the date of the release and stating that, in the opinion
of the person signing such certificate, (i) the portion of the Leased Land so
proposed to be released is necessary or desirable for railroad, utility services
or roads to benefit the Project or is not otherwise needed for the operation of
the Project for the purposes hereinabove stated, and (ii) the release so
proposed to be made will not materially impair the utility of the Project and
will not destroy the means of ingress thereto and egress therefrom.

No release effected under the provisions hereof shall entitle the Lessee to any
abatement or diminution of the rents payable under Section 5.3 hereof.

     SECTION 8.7. RELEASE OF ELECTRIC SWITCHYARD EQUIPMENT AND LAND.
Notwithstanding any other provision of this Lease to the contrary, but subject
to the provisions of the Collateral Agency Agreement and the Common Agreement,
the parties hereto agree that, prior to commercial operation of the Project,
they shall amend this Lease for the purpose of releasing and removing from this
Lease, and conveying to Georgia Power Company, or any of its affiliates or
assigns, (i) by bill of sale, that portion of Leased Equipment comprising the
electric switchyard equipment (the "Switchyard Equipment"), as more specifically
described on Exhibit

                                       26
<PAGE>

"B" hereto, and (ii) by deed, lease, license or other conveyance, up to eight
(8) acres of the Leased Land, the exact location of which has yet to be
determined but upon which the Switchyard Equipment is to be located; provided
however, there shall first be deposited with the Trustee said amendment in the
form attached as Exhibit "E" hereto, executed by the Issuer (or an Authorized
Issuer Representative) and the Lessee (or an Authorized Lessee Representative).
No release effected under the provisions hereof shall entitle the Lessee to any
abatement or diminution of the rents payable under Section 5.3 hereof.

     SECTION 8.8. FILING OF CERTAIN CONTINUATION STATEMENTS. From time to time,
the Lessee shall duly file or cause to be filed continuation statements for the
purpose of continuing without lapse the effectiveness of (i) those Financing
Statements which shall have been filed at or prior to the issuance of the Bonds
in connection with the security for the Bonds pursuant to the authority of the
Uniform Commercial Code of Georgia, and (ii) any previously filed continuation
statements which shall have been filed as herein or in the Indenture required.
The Lessee shall sign (if necessary) and deliver to the Issuer or its designee
and the Issuer shall sign and deliver to the Trustee such continuation
statements as may be requested of it from time to time. As set forth in the
Indenture under Section 12.01(d), the Trustee shall provide its reasonable
cooperation to the Issuer and the Lessee in connection with the filing of such
continuation statements. Upon the filing of any such continuation statement the
Lessee shall immediately notify the Trustee and the Issuer that the same has
been accomplished.

     SECTION 8.9. SPECIAL ENVIRONMENTAL INDEMNIFICATION.

     (a) The Lessee agrees to and shall indemnify, hold harmless, and defend the
Issuer, its officers, directors, agents, and employees from and against any and
all claims, losses, damages, expenses, causes of action, lawsuits, government
regulatory enforcement actions, and liability (individually, a "Claim,"
collectively, "Claims") asserted against the Issuer arising out of alleged or
actual "environmental contamination" (hereinafter defined) arising from the
Lessee's leasing and operation of the Project.

     (b) "Environmental contamination" as used herein shall mean damages to
persons or property or violations of state or federal environmental laws or
regulations arising out of the Lessee's past operations at the Project or the
operations of the Lessee at any time at the Project with respect to but not
limited to air emissions, water effluent discharges, and waste generation,
transportation, storage, disposal, or the handling of hazardous materials.

     (c) The Issuer shall notify the Lessee in writing within 10 days after any
Claim is made, brought, or asserted, in any event, in writing, against the
Issuer, and as to which the Issuer has actual knowledge by receipt of such
written notification. The Lessee shall similarly notify the Issuer in writing
within 10 days after any Claim is made, brought, or asserted against the Lessee.

     (d) The Issuer shall fully cooperate with the Lessee, including but not
limited to, assisting the Lessee in the preparation of a defense to Claims when
and as the Lessee fulfills its obligations under this Section of the Lease. In
the event the Issuer provides notice to the Lessee under Subsection (c) above,
the Lessee shall handle and control the defense of all Claims and the Lessee's
decision on litigation and settlement and all other such aspects shall be final;
provided,

                                       27
<PAGE>

however, no settlement or decision shall impose upon the Issuer by apportionment
or otherwise, any loss, damage or liability as a result thereof.

     (e) The Issuer shall use its best efforts to deliver the notice specified
in subsection (c) above within a period of 10 days after the Issuer has direct
knowledge (by receipt of written notice or otherwise) of a claim; but, in any
event, the Issuer shall deliver notice in sufficient time to respond and without
prejudice to the rights of the Lessee.

     (f) The provisions of this Section 8.9 shall survive the termination of
this Lease and shall continue in full force and effect, binding the Lessee to
the provisions of this Section 8.9 without regard to the manner of termination
of this Lease.

     SECTION 8.10. [INTENTIONALLY OMITTED].

     SECTION 8.11. [INTENTIONALLY OMITTED].

     SECTION 8.12. GRANTING OF SECURITY INTEREST IN LEASED EQUIPMENT. As
security for the payment of rents and all other amounts which shall be or become
due and payable hereunder, the Lessee hereby grants to the Issuer a security
interest covering any right, title or interest which the Lessee may have in the
Leased Equipment and all proceeds thereof and general intangibles relating
thereto. The security interest granted in this Section shall not attach to any
of the Leased Equipment until the same is located in the State.

     SECTION 8.13. SPECIAL COVENANTS RELATED TO AD VALOREM TAXATION. The Lessee,
the Board of Commissioners of Heard County and the Board of Tax Assessors of
Heard County have entered into an Agreement Regarding Ad Valorem Taxation dated
July 30, 1999 (the "Ad Valorem Tax Agreement") governing the taxation of the
Lessee's interest in the Project a copy of which is attached as Exhibit "F"
hereto. The Issuer is granting to the Lessee hereunder only a limited right to
use the Project during the Lease Term upon the terms set forth herein. The
Lessee and the Issuer acknowledge that the leasehold valuation formula takes
into account the fair market value of similarly leased property and the
prevailing rents changed in the geographic area of the Project. The Lessee and
the Issuer agree to cooperate with each other and with the Board of Tax
Assessors of Heard County with respect to the matters set forth in the Ad
Valorem Tax Agreement, including the manner from time to time reasonably
required by the Issuer or the Board of Tax Assessors of Heard County for the
labeling or other identification of the Project, including all substitutions and
replacements therefor made in accordance with the provisions of Section 6.2
hereof.

                                   ARTICLE IX

                      ASSIGNMENT, SUBLEASING, PLEDGING AND
               SELLING; REDEMPTION; RENT PREPAYMENT AND ABATEMENT

     SECTION 9.1. ASSIGNMENT AND SUBLEASING. The Issuer hereby specifically
acknowledges and consents to the execution and delivery by the Lessee of the
Security Documents and the Security Interests created thereby. Except for any
assignment, sublease or transfer pursuant to the Security Deed or the Security
Documents, this Lease may not be

                                       28
<PAGE>

assigned, in whole or in part, and the Project may not be subleased, as a whole
or in part, by the Lessee without the consent of the Issuer and the Trustee,
which consent shall not be unreasonably withheld, or without the consent of the
Bondholders; provided, however, that this Lease may be assigned in whole or in
part, or the Project may be subleased, as a whole or a part, without the consent
of the Issuer, the Trustee or the Bondholders, to any successor to substantially
all of the business of the Lessee. Any such assignment or sublease is further
subject to the following conditions:

     (a) no assignment (other than pursuant to Section 8.3 hereof) or sublease
shall relieve the Lessee from primary liability for any of its obligations
hereunder, and if any such assignment occurs the Lessee shall continue to remain
primarily liable for payment of the rents specified in Section 5.3 hereof and
for performance and observance of the other agreements on its part herein
provided to be performed and observed by it unless the Lessee shall have
obtained the consent of the Issuer and the Trustee or the Bondholders;

     (b) the Lessee shall, within 30 days after the delivery thereof, furnish or
cause to be furnished to the Issuer and to the Trustee a true and complete copy
of each such assignment or sublease, as the case may be, together with any
instrument of assumption;

     (c) the Lessee shall confirm in writing that the Guaranty Agreement will
remain in full force and effect or the assignee shall have assumed the same.

     The provisions of this Section 9.1 restricting the assignment and
subleasing of the Project shall no longer be in effect in the event that the
Security Documents have been foreclosed upon by the Collateral Agent and the
Lessee is no longer in possession of the Project.

     SECTION 9.2. CONVEYING OF PROJECT BY ISSUER BY SECURITY DEED. The Issuer
will convey its title in and to that portion of the Project consisting of real
property and grant a security interest in that portion of the Project consisting
of personal property to the Trustee by the Security Deed, and will assign,
pledge and create a security interest in the Trust Estate under the terms of the
Indenture, as security for the payment of the principal of and the interest on
the Bonds, but the Security Deed and said assignment and pledge shall be subject
and subordinate to this Lease so long as there shall not exist a default under
this Lease or the Indenture. As described in the Security Deed, any amount
realized upon a foreclosure sale or exercise of other remedies under the
Security Deed shall, after satisfaction of the indebtedness described therein,
be paid to the Collateral Agent, on behalf of the Lessee, in respect of the
Lessee's interests hereunder, whether or not the Lessee has exercised its option
to purchase the Project or performed its obligation to purchase the Project
arising under Article XI or XII hereof.

     SECTION 9.3. RESTRICTIONS ON SALE OF PROJECT BY ISSUER. The Issuer agrees
that, except as otherwise permitted under the terms of this Lease, the Security
Deed or the Indenture, it will not mortgage, sell, assign, transfer, convey or
otherwise encumber the Project or any portion thereof during the Lease Term and
that it will not take any other action which results in the levy or assessment
of ad valorem taxes on the Project or the Lessee's leasehold interest in the
Project. If the laws of the State of Georgia at the time require or permit such
action to be taken, nothing contained in this Section shall prevent the
consolidation of the Issuer with, or the merger of the Issuer into, or the
transfer of the Project as an entirety to, any public entity whose property

                                       29
<PAGE>

and income are not subject to taxation and which has the authority to carry on
the business of owning and leasing the Project; provided, (a) that no such
action shall be taken without the prior written consent of the Lessee, the
Trustee and the Bondholders, unless such action shall be required by law, and
(b) that upon any such consolidation, merger or transfer, the due and punctual
payment of the principal of and interest on the Bonds according to their tenor,
and the due and punctual performance and observance of all the agreements and
conditions of this Lease to be kept and performed by the Issuer, shall be
expressly assumed in writing by the entity resulting from such consolidation or
surviving such merger or to which the Project shall be transferred as an
entirety.

     SECTION 9.4. PREPAYMENT OF BONDS. The Issuer, at the request at any time of
the Lessee and if the same are then redeemable, shall forthwith take all steps
that may be necessary under the applicable redemption provisions of the
Indenture to effect redemption of all or any portion of the Bonds, as may be
specified by the Lessee, on the earliest redemption date on which such
redemption may be made under such applicable provisions. So long as the Lessee
is not in default hereunder and the Issuer is not obligated to redeem the Bonds
pursuant to the terms of the Indenture, the Issuer shall not redeem any Bonds
prior to their maturity unless requested in writing by the Lessee. The Lessee
agrees to give notice to the Issuer and the Trustee of any redemption at least
10 days prior to the redemption date specifying (a) the proposed redemption
date, (b) the principal amount of the Bonds to be called for redemption, (c) the
applicable redemption price or prices, (d) any conditions to the effectiveness
of such redemption, and (e) the provision or provisions of the Indenture
pursuant to which such Bonds are to be redeemed, and shall deposit with the
Collateral Agent for the account of the Trustee, on or before the redemption
date, an amount of money which, when added to the funds in the Bond Fund, will
be sufficient to pay the principal of and redemption premium (if any) and
interest on the Bonds (or portions thereof) to be redeemed on the date specified
by the Lessee and any Trustee's and the paying agents' fees and expenses under
the Indenture accrued and to accrue until and in connection with such
redemption. The exercise by the Lessee of the option to redeem Bonds as
described in this Section 9.4 shall be revocable by the Lessee at any time prior
to the effective date of such redemption.

     The Trustee as provided in the Indenture shall forthwith take or cause to
be taken all actions necessary under the Indenture to effect the redemption of
Bonds in accordance with the terms of the Indenture; provided, however, that if
any such redemption is subject to satisfaction of one or more conditions as
specified by the Lessee as described above, and if on or prior to the specified
date of redemption, such conditions have not been satisfied or waived by the
Lessee, then such redemption shall not be effective as provided in Section 2.09
of the Indenture and (i) all Bonds received by the Bond Registrar for redemption
shall be returned to the owners thereof and (ii) any moneys received by the
Trustee as a prepayment of the Lessee's obligations hereunder in connection with
such redemption shall, upon request, be returned to the Lessee. The Trustee may
conclusively rely upon a certificate of the Authorized Lessee Representative as
to the satisfaction or waiver of any conditions specified to any such
redemption.

     SECTION 9.5. PREPAYMENT OF RENTS. There is expressly reserved to the Lessee
the right, and the Lessee is authorized and permitted, at any time it may
choose, so long as it is not in default hereunder, to prepay all or any part of
the rents payable under Section 5.3 hereof, and the Issuer agrees that the
Trustee may accept such prepayment when the same is tendered by the

                                       30
<PAGE>

Lessee. All prepaid rents shall be credited on the rents specified in Section
5.3, in the chronological order of their due dates.

     SECTION 9.6. REFERENCE TO BONDS INEFFECTIVE AFTER BONDS PAID. Upon Payment
in Full of the Bonds and all fees, charges and expenses of the Trustee, all
references in this Lease to the Bonds and the Trustee shall be ineffective and
neither the Trustee nor the holders of any of the Bonds shall thereafter have
any rights hereunder, saving and excepting those that shall have theretofore
vested. Reference is hereby made to Section 10.02 of the Indenture which sets
forth the conditions upon the existence or occurrence of which Payment in Full
of the Bonds shall be deemed to have been made.

                                   ARTICLE X

                         EVENTS OF DEFAULT AND REMEDIES

     SECTION 10.1. EVENTS OF DEFAULT DEFINED. The existence of a "Trigger Event"
under the Collateral Agency Agreement shall be an Event of Default under this
Lease.

     SECTION 10.2. REMEDIES ON DEFAULT. Whenever any Event of Default shall have
happened and be continuing, the Issuer, or the Trustee as provided in the
Indenture, may, with the written consent of the Collateral Agent, or shall, upon
the written direction of the Collateral Agent, take any one or more of the
following remedial steps:

     (a) declare all installments of rent payable under Section 5.3 hereof for
the remainder of the Lease Term to be immediately due and payable, whereupon the
same shall become immediately due and payable. If the Issuer or the Trustee
elects to exercise the remedy afforded in this Section 10.2(a) and accelerates
all rents payable under Section 5.3 hereof for the remainder of the Lease Term,
the amount then due and payable as accelerated rents shall be the sum of (1) the
aggregate principal amount of the outstanding Bonds, and (2) all interest on the
Bonds accruing to the date of maturity by declaration;

     (b) re-enter and take possession of the Project without terminating this
Lease and without any liability to the Lessee for such entry and repossession,
and sublease the Project for the account of the Lessee, holding the Lessee
liable for the difference in the rents and other amounts payable by such
sublessee in such subleasing and the rents and other amounts payable by the
Lessee hereunder;

     (c) the Trustee may require the Lessee to assemble the Leased Equipment and
make the same available at a place or places to be designated and shall have the
right, without notice, demand or legal process, to come upon the Leased Land and
take possession of all or any of the Leased Equipment in such manner and as and
on such terms as it may choose, and otherwise the Issuer or the Trustee may
exercise with respect to the Leased Equipment the rights of a secured party
under the U.C.C.;

     (d) the Trustee may exercise any remedies provided for in the Indenture or
the Security Deed and, with respect to any Security Interest, the rights of a
secured party under the U.C.C.

                                       31
<PAGE>

     (e) terminate this Lease (provided, however, that upon such termination,
the options of the Lessee to purchase the Project pursuant to the provisions of
Article XI hereof and the obligations of the Lessee to make the rental payments
pursuant to Section 5.3 hereof and purchase the Project pursuant to Section 12.1
hereof contained therein shall survive such termination), exclude the Lessee
from possession of the Project and use its best efforts to lease the Project to
another for the account of the Lessee, holding the Lessee liable for all rent
and other payments due up to the effective date of such leasing;

     (f) require accounting books and records of the Lessee pertaining
exclusively to the Project only for an Event of Default under Section 10.1(a);

     (g) take whatever action at law or in equity may appear necessary or
desirable to collect the rents then due, or to enforce performance and
observance of any obligation, agreement or covenant of the Lessee under this
Lease; and

Any amounts collected pursuant to action taken under this Section shall be paid
and applied in accordance with the provisions of the Collateral Agency Agreement
and after Payment in Full of the Bonds and the payment of any costs occasioned
by an Event of Default hereunder, and subject to the provisions of and the lien
and security interest created under the Partnership Assignment and Security
Agreement, any excess moneys in the Bond Fund shall be returned to the Lessee as
an overpayment of rent.

     The Issuer will not exercise any remedies without the consent of the
Collateral Agent and the Issuer will grant any consents or waivers or take any
other actions under this Lease (subject to such actions being consistent with
the terms of this Lease and provisions of law applicable to the Issuer) upon the
direction of the Collateral Agent.

     SECTION 10.3. REMEDIES EXCLUSIVE. The remedies herein conferred upon or
reserved to the Issuer or the Trustee are intended to be exclusive of any other
available remedy or remedies, notwithstanding every other remedy now or
hereafter existing at law or in equity or by statute. Such remedies as are given
to the Issuer hereunder shall also extend to the Trustee, and the Trustee and
the owners of the Bonds shall be deemed third-party beneficiaries of all
covenants and agreements herein contained.

     SECTION 10.4. AGREEMENT TO PAY ATTORNEYS' FEES AND EXPENSES. Should an
Event of Default occur and the Issuer and/or the Trustee should employ attorneys
or incur other expenses for collection of rents or the enforcement of
performance or observance of any obligation or agreement on the part of the
Lessee herein contained, the Lessee agrees that it shall on demand therefor pay
to the Issuer and/or the Trustee the reasonable fees of such attorneys and such
other reasonable expenses so incurred by the Issuer and/or the Trustee.

     SECTION 10.5. NO ADDITIONAL WAIVER IMPLIED BY ONE WAIVER. If any agreement
contained in this Lease should be breached by either party and thereafter waived
by the other party, such waiver shall be limited to the particular breach so
waived and shall not be deemed to waive any other breach hereunder.

                                       32
<PAGE>

SECTION 10.6. WAIVER OF APPRAISEMENT, VALUATION, ETC. If the Lessee should
default under any of the provisions of this Lease, the Lessee agrees to waive,
to the extent it may lawfully do so, the benefit of all appraisement, valuation,
stay, extension or redemption laws now or hereafter in force, and all right of
appraisement and redemption to which it may be entitled.

                                   ARTICLE XI

                           OPTIONS IN FAVOR OF LESSEE

     SECTION 11.1. OPTIONS TO TERMINATE THE LEASE TERM. The Lessee shall have
the following options to terminate the Lease Term:

     (a) At any time prior to Payment in Full of the Bonds, the Lessee may
terminate the Lease Term by giving the Issuer and the Trustee notice in writing
of such termination and by paying to the Trustee an amount which, when added to
the funds in the Bond Fund, will be sufficient to pay, retire and/or redeem all
of the outstanding Bonds in accordance with the provisions of Article X of the
Indenture (including, without limiting the generality of the foregoing,
principal, interest to maturity or earliest applicable redemption date, as the
case may be, redemption premium, if any, due in connection with any such
redemption, expenses of redemption and the Trustee's fees and expenses), and, in
case of redemption, making arrangements satisfactory to the Trustee for the
giving of the required notice of redemption; or

     (b) At any time after Payment in Full of the Bonds, the Lessee may
terminate the Lease Term by giving the Issuer notice in writing of such
termination and such termination shall forthwith become effective.

     Upon any such termination of the Lease Term as described above, the Lessee
shall purchase and the Issuer shall sell the Issuer's right, title and interest
in the Project to the Lessee for the amount and under the terms set forth in
Section 12.1 hereof.

     SECTION 11.2. OPTION TO PURCHASE ALL OR PORTION OF PROJECT. Under the
conditions set forth in Section 3.04 of the Indenture and prior to the
expiration of the Lease Term and Payment in Full of the Bonds, the Lessee shall
have and is hereby granted the option to prepay its obligations hereunder and
purchase the Project in whole or in part, in order to effect a redemption of the
Bonds, in whole or in part, pursuant to such Section 3.04 of the Indenture. In
order to exercise such option, the Lessee shall give written notice to the
Trustee at least 10 days prior to the proposed redemption date that all or a
portion of the Bonds are to be redeemed pursuant to such Section and specifying
(a) the proposed redemption date, (b) the principal amount of the Bonds to be
called for redemption, (c) the applicable redemption price or prices, and (d)
any conditions to the effectiveness of such redemption, and shall deposit with
the Trustee on or before the redemption date, to the credit of the Bond Fund,
the following:

                  (1) an amount of money which, when added to the funds in the
         Bond Fund, will be sufficient to retire and redeem all of the then
         outstanding Bonds or the portion thereof specified by the Lessee, at
         par on the date specified by the Lessee for such redemption including,
         without limitation, principal plus accrued interest thereon to said
         redemption date, PLUS

                                       33
<PAGE>

                  (2) an amount of money equal to the Trustee's and the paying
         agents' fees and expenses under the Indenture accrued and to accrue
         until such final payment and redemption of the Bonds.

     The exercise by the Lessee of the option to redeem Bonds as described in
this Section 11.2 shall be revocable by the Lessee at any time prior to the
effective date of the redemption of the applicable Bonds.

     Upon receipt of a notice furnished pursuant to this Section 11.2, the
Trustee as provided in the Indenture shall forthwith take or cause to be taken
all actions necessary under the Indenture to effect the redemption of Bonds in
accordance with such notice, as the case may be; provided, however, that if any
such redemption is subject to satisfaction of one or more conditions as
specified by the Lessee as described above, and if on or prior to the specified
date of redemption, such conditions have not been satisfied or waived by the
Lessee, then such redemption shall not be effective as provided in Section 2.09
of the Indenture and (i) all Bonds received by the Bond Registrar for redemption
shall be returned to the owners thereof and (ii) any moneys received by the
Trustee as a prepayment of the Lessee's obligations hereunder in connection with
such redemption shall, upon request, be returned to the Lessee. The Trustee may
conclusively rely upon a certificate of the Authorized Lessee Representative as
to the satisfaction or waiver of any conditions specified to any such
redemption.

     SECTION 11.3. OPTION TO PURCHASE UNIMPROVED LAND. In addition to the
provisions of Section 8.6 hereof, the Lessee shall have, and is hereby granted
an option to purchase any unimproved portion of the Leased Land (on which
neither the Building or any Leased Equipment is located but on which parking,
transportation or utility facilities may be located) at any time and from time
to time, prior to Payment in Full of the Bonds, at a purchase price equal to one
hundred dollars ($100) per acre for the portion of the Leased Land to be
purchased, provided that it furnishes the Issuer with the following:

     (a) A notice in writing containing (i) an adequate legal description of
that portion of the Leased Land with respect to which such option is to be
exercised, (ii) a statement that the Lessee intends to exercise its option to
purchase such portion of the Leased Land on a date stated, which shall not be
less than 45 nor more than 90 days from the date of such notice, and (iii) a
statement that the use to which it is intended that such portion of, or interest
in, the Leased Land is to be devoted will promote the continued purpose of the
Project;

     (b) A certificate of an Authorized Lessee Representative, dated not more
than 90 days prior to the date of the purchase and stating that, in the opinion
of the person signing such certificate, (i) the portion of, or interest in, the
Leased Land with respect to which the option is exercised is not needed for the
operation of the Project for the purpose hereinabove stated or that sufficient
right and title is reserved to the Issuer to fulfill said needs, and (ii) the
purchase will not impair the usefulness of the Building for the intended purpose
of the Project and will not destroy the means of ingress thereto and egress
therefrom; and

     (c) An amount of money equal to the purchase price computed as provided in
this Section.

                                       34
<PAGE>

     The Issuer agrees that upon receipt of the notice, certificate and money
required in this Section to be furnished to it by the Lessee, the Issuer will
promptly deliver the same to the Trustee for deposit in the Bond Fund, and
secure from the Trustee a release from this Lease of such portion of the Leased
Land with respect to which the Lessee shall have exercised the option granted to
it in this Section, subject to any right and title reserved to the Issuer. In
the event the Lessee shall exercise the option granted to it under this Section,
the Lessee shall not be entitled to any abatement or diminution of the rents
payable under Section 5.3 hereof.

     Subsequent to Payment in Full of the Bonds, the Lessee shall have, and is
hereby granted an option to purchase any unimproved portion of the Leased Land
at a purchase price equal to one dollar ($1.00) per acre with respect to the
portion of the Leased Land to be purchased. The Issuer agrees that upon receipt
of the money required herein to be furnished it by the Lessee, the Issuer will
promptly release such portion of the Leased Land with respect to which the
Lessee shall have exercised the option granted to it herein.

     If the Lessee purchases any unimproved part of the Leased Land pursuant to
the provisions of this Section 11.3, the Lessee and the Issuer agree that all
walls presently standing or hereafter erected on or contiguous to the boundary
line of the land so purchased by the Lessee shall be party walls and each party
grants the other a 10-foot easement adjacent to any such party wall for the
purpose of inspection, maintenance, repair and replacement thereof and the
tying-in of new construction. If the Lessee utilizes any party wall for the
purpose of tying-in new construction that will be utilized under common control
with the Project, the Lessee may also tie into the utility facilities on the
Leased Land for the purpose of serving the new construction and may remove any
non-loadbearing wall panels in the party wall; provided, however, that if the
property so purchased ceases to be operated under common control with the
Project, the Lessee covenants that it will install non-loadbearing wall panels
similar in quality to those that have been removed and will provide separate
utility services for the new construction. Prior to Payment in Full of the
Bonds, no wall may be so utilized by the Lessee unless prior thereto the Issuer
has been furnished with a certificate of an Authorized Lessee Representative who
is acceptable to the Trustee, stating that the proposed utilization will not
impair the usefulness of the Project for the purpose for which it was designed
to be used or most recently modified.

     SECTION 11.4. CONVEYANCE ON PURCHASE. At the closing of any purchase
pursuant to Article XI or Article XII hereof or pursuant to the exercise of any
option to purchase granted herein, the Issuer will upon receipt of the purchase
price by it or by the Trustee on its behalf deliver to the Lessee the Quitclaim
Deed or similar documents satisfactory to the Lessee conveying to the Lessee
title in and to the property with respect to which such obligation or option was
exercised, without other warranty of title, subject to the following, (i) those
liens and encumbrances (if any) to which such title in and to said property was
subject when conveyed to the Issuer, (ii) those liens and encumbrances created
by the Lessee or to the creation or suffering of which the Lessee consented in
writing, (iii) those liens, security interests and encumbrances resulting from
the failure of the Lessee to perform or observe any of the agreements on its
part contained in this Lease and (iv) Permitted Liens other than the Indenture,
the Security Deed and this Lease.

     If at the time the Indenture and the Security Deed have not been satisfied
in full, a release by the Trustee from the lien or Security Interest of the
Indenture and the Security Deed in the

                                       35
<PAGE>

Property with respect to which such purchase is being consummated shall also be
delivered to the Lessee.

     SECTION 11.5. RELATIVE POSITION OF OPTIONS AND INDENTURE. The options
respectively granted to the Lessee in this Article, except under Section 11.3
hereof, shall be and remain prior and superior to the Indenture and may be
exercised whether or not the Lessee is in default hereunder, provided that such
default will not result in nonfulfillment of any condition to the exercise of
any such option.

                                  ARTICLE XII

                     OBLIGATIONS OF LESSEE; RIGHTS OF LESSEE

     SECTION 12.1. OBLIGATION TO PURCHASE PROJECT. The Lessee hereby agrees to
purchase, and the Issuer hereby agrees to sell, the Issuer's right, title and
interest in the Project for Ten Dollars ($10.00) at the expiration or sooner
termination of the Lease Term following Payment in Full of the Bonds. At any
time subsequent to the expiration or sooner termination of this Lease as
aforesaid upon notice to the Issuer by the Lessee, the Issuer shall upon receipt
of the purchase price set forth above deliver to the Lessee or cause the
Trustee, as the assignee of the Issuer to deliver to the Lessee those documents
set forth in Section 11.4 hereof. The obligation specified in this Section shall
be and remain prior and superior to the Indenture and the Security Deed and may
be exercised whether or not the Lessee is in default hereunder, provided that
such default will not result in nonfulfillment of any condition to this right.

     SECTION 12.2. SUCCESSION RIGHTS OF LESSEE. The Issuer and the Lessee hereby
agree that, whether or not the options in Article XI or this Article XII have
been exercised, the Lessee shall be entitled to succeed to the ownership of the
Project upon and after the Payment in Full of the Bonds.

     SECTION 12.3. SECURITY INTEREST OF LESSEE. The Issuer hereby grants to the
Lessee a security interest in and lien upon the Issuer's right, title and
interest in and to any amounts realized upon the foreclosure sale or exercise of
other remedies under the Security Deed not required to satisfy the Indebtedness
described therein, and such amounts shall be paid to the Collateral Agent, on
behalf of the Lessee, for application in accordance with the terms of the
Collateral Agency Agreement.

                                  ARTICLE XIII

                                  MISCELLANEOUS

     SECTION 13.1. NOTICES. Unless otherwise stated herein, all notices,
certificates or other communications hereunder shall be sufficiently given and
shall be deemed given when mailed by first class mail or by delivery to physical
address, return receipt requested, postage prepaid, addressed as follows or by
facsimile with receipt confirmed:

                                       36
<PAGE>

         (a)      If to the Issuer:       Development Authority of Heard County
                                          c/o Glover & Davis
                                          10 Brown Street
                                          Newnan, Georgia 30264-1038
                                          Attention:    A. Mitchell Powell, Esq.
                                          Telephone:   (770) 683-6000
                                          Telecopy:    (770) 683-6010

         (b)      If to the Lessee:       Tenaska Georgia Partners, L.P.
                                           c/o Tenaska, Inc.
                                           1044 N. 115th Street
                                           Suite 400
                                           Omaha, Nebraska  68154-4446
                                           Attention:   Michael F. Lawler
                                           Telephone:   (402) 691-9547
                                           Telecopy:    (402) 691-9550

                  with a copy to:          Nelson, Morrow & Waldron
                                           675 Commercial Federal Tower
                                           2120 S. 72nd Street
                                           Omaha, Nebraska  68124
                                           Attention:    W.C. Nelson, Esq.
                                           Telephone:   (402) 392-2340
                                           Telecopy:    (402) 392-2130

                  and                      Long, Aldridge & Norman
                                           303 Peachtree Street
                                           Suite 5300
                                           Atlanta, Georgia 30308
                                           Attention:   Michael S. Bradley, Esq.
                                           Telephone:   (404) 527-4650
                                           Telecopy:    (404) 527-4198

         (c)      If to the Trustee:       The Chase Manhattan Bank
                                           450 West 33rd Street
                                           15th Floor
                                           New York, New York 10001
                                           Telephone:  (212) 946-7557
                                           Telecopy:   (212) 946-8177
                                           Attention:  Capital Markets Fiduciary
                                                       Services

A duplicate copy of each notice, certificate or other communication given
hereunder by either the Issuer, the Lessee or the Trustee shall be given to each
of the others. The Issuer, the Lessee and the Trustee may, by notice given
hereunder, designate any further or different addresses to which subsequent
notices, certificates or other communications shall be sent.

                                       37
<PAGE>

     SECTION 13.2. BINDING EFFECT. This Lease shall inure to the benefit of and
shall be binding upon the Issuer, the Lessee and their respective successors and
assigns.

     SECTION 13.3. SEVERABILITY. If any provision of this Lease shall be held
invalid or unenforceable by any court of competent jurisdiction, such holding
shall not invalidate or render unenforceable any other provision hereof.

     SECTION 13.4. AMOUNTS REMAINING IN BOND FUND. It is agreed by the parties
hereto that, subject to and in accordance with the terms and conditions of
Section 6.09 of the Indenture certain surplus moneys remaining in the Bond Fund
shall belong to and be paid to the Lessee by the Trustee as an overpayment of
rents.

     SECTION 13.5. AMENDMENTS, CHANGES AND MODIFICATIONS; CONSENTS OF COLLATERAL
AGENT. (a) Except as otherwise provided in this Lease or in the Indenture,
subsequent to the initial issuance of the Bonds and prior to Payment in Full of
the Bonds, this Lease may only be amended, changed, modified, altered or
terminated upon the written consent of the Collateral Agent, if and to the
extent such consent is required under the terms of the Security Documents, and
shall be evidenced by the written agreement of the Issuer and the Lessee.
Provided the Lessee is not in default with respect to its obligations hereunder,
and provided such amendment, modification or alteration will not increase
materially the Issuer's obligations hereunder or under any other Financing
Documents to which it is a party, the Issuer's consent to any such amendment,
modification or alteration and its execution and delivery of a written agreement
evidencing the same shall not be unreasonably withheld or delayed.

       (b) Whenever the consent of the Collateral Agent is required for the
taking of any action hereunder the Collateral Agent's consent shall be deemed to
be given if the Collateral Agent has no corresponding right to consent to such
action under the Security Documents.

     SECTION 13.6. EXECUTION COUNTERPARTS. This Lease may be simultaneously
executed in several counterparts, each of which shall be an original and all of
which shall constitute but one and the same instrument.

     SECTION 13.7. CAPTIONS. The captions and headings in this Lease are for
convenience only and in no way define, limit or describe the scope or intent of
any provisions of this Lease.

     SECTION 13.8. RECORDING OF LEASE AND SECURITY DEED. This Lease and the
Security Deed and every assignment and modification hereof and thereof shall be
recorded in the office of the Clerk of the Superior Court of Heard County,
Georgia, or in such other office as may be at the time provided by law as the
proper place for such recordation.

     SECTION 13.9. LAW GOVERNING CONSTRUCTION OF LEASE. This Lease shall be
governed by, and construed in accordance with, the laws of the State of Georgia.

     SECTION 13.10. NET LEASE. This Lease shall be deemed a "net lease", and the
Lessee shall pay absolutely net during the Lease Term the rents, revenues and
receipts pledged hereunder, without abatement, deduction or set-off other than
those herein expressly provided.

                                       38
<PAGE>

     SECTION 13.11. TRUSTEE AS THIRD-PARTY BENEFICIARY. The parties hereto agree
that the Trustee shall be entitled to rely on, and shall be a third-party
beneficiary of, the terms of this Lease, including without limitation Section
6.9 hereof.

     SECTION 13.12. ESTATE FOR YEARS. This Lease grants to Lessee an estate for
years for the term hereof and not a usufroct.

                                       39
<PAGE>

         IN WITNESS WHEREOF, the Issuer and the Lessee have caused this Lease to
be executed in their respective names by their duly authorized officers, all as
of the date first above written.

                                                     DEVELOPMENT AUTHORITY
                                                     OF HEARD COUNTY

                                                     By:/S/____________________
                                                                 Chairman

(CORPORATE SEAL)

Attest:

/S/__________________________
Secretary

As to the Issuer, signed
sealed and delivered in
the presence of:

/S/_________________________
Witness

/S/_________________________
Notary Public

My commission expires:

(Notarial Seal)

<PAGE>

                                     TENASKA GEORGIA PARTNERS, L.P.,
                                     a Delaware Limited Partnership

                                     By:    TENASKA  GEORGIA,  INC.,  a Delaware
                                            Corporation,  its
                                            General Partner

                                     By: /S/____________________________________
                                         Name:  Michael F. Lawler
                                         Title: Vice President of Finance &
                                                Treasurer

As to the Lessee, signed
and sealed in the presence of:

/S/_________________________
Witness

/S/_________________________
Notary Public

My commission expires:

(NOTARIAL SEAL)

<PAGE>

                                    EXHIBIT A

                           DESCRIPTION OF LEASED LAND

TRACT A1

     ALL THAT TRACT OR PARCEL OF LAND SITUATE, LYING AND BEING IN LAND LOTS 236
& 237 OF THE THIRD LAND DISTRICT OF HEARD COUNTY GEORGIA, AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:

     COMMENCING AT THE INTERSECTION OF THE WESTERLY RIGHT OF WAY LINE OF JOE
STEPHENS ROAD (80 FOOT WIDTH) WITH THE SOUTHERLY RIGHT OF WAY LINE OF GEORGE
BROWN ROAD (PRESCRIPTIVE RIGHT OF WAY 40 FEET, MORE OR LESS, IN WIDTH), SAID
POINT BEING THE POINT OF REFERENCE;THENCE ALONG THE SOUTHERLY MARGIN OF GEORGE
BROWN ROAD SOUTH 74 DEGREES 00 MINUTES 18 SECONDS WEST FOR A DISTANCE OF 877.40
FEET TO A METAL FENCE POST FLUSH WITH THE GROUND;

     THENCE South 72 degrees 48 minutes 00 seconds West for a distance of 405.46
feet to a 12 INCH WOOD POST;

     THENCE North 88 degrees 37 minutes 10 seconds West for a distance of 252.91
feet to a 1/2 INCH REBAR SET ON THE WESTERLY LINE OF A GEORGIA POWER COMPANY
RIGHT OF WAY (150 FOOT WIDTH), SAID POINT BEING THE POINT OF BEGINNING FOR THE
HEREIN DESCRIBED PARCEL OF LAND.

     THENCE along said westerly line of a Georgia Power Company Right of Way
South 05 degrees 00 minutes 38 seconds East for a distance of 1982.75 to a 1/2
INCH REBAR SET ON THE NORTHERLY LIMITS OF THE WETLANDS OF HILLY MILL CREEK;

     THENCE along said westerly line of a Georgia Power Company Right of Way
South 05 degrees 00 minutes 38 seconds East for a distance of 191.17 to a POINT
IN THE CENTERLINE OF HILLY MILL CREEK;

     THENCE along the centerline of Hilly Mill Creek to the Northwest, more or
less, North 46 degrees 21 minutes 20 seconds West for a distance of 66.26 feet
to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 78 degrees 13 minutes 26 seconds West for a distance of 274.76
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 53 degrees 56 minutes 11 seconds West for a distance of 188.31
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 26 degrees 05 minutes 05 seconds West for a distance of 142.40
feet to a POINT IN THE CENTERLINE OF THE CREEK;

<PAGE>

     THENCE North 74 degrees 59 minutes 42 seconds West for a distance of 170.99
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 53 degrees 11 minutes 27 seconds West for a distance of 280.96
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 65 degrees 46 minutes 02 seconds West for a distance of 101.90
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE South 56 degrees 23 minutes 59 seconds West for a distance of 162.95
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 80 degrees 36 minutes 29 seconds West for a distance of 406.05
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 29 degrees 13 minutes 39 seconds West for a distance of 496.12
feet to a POINT OF INTERSECTION OF HILLY MILL CREEK AND AN UNNAMED CREEK;

     THENCE along the centerline of the unnamed creek to the Northeast, more or
less, North 68 degrees 03 minutes 13 seconds East for a distance of 336.28 feet
to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 65 degrees 29 minutes 52 seconds East for a distance of 296.07
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 54 degrees 43 minutes 02 seconds East for a distance of 67.68
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 17 degrees 17 minutes 28 seconds East for a distance of 228.26
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 23 degrees 21 minutes 46 seconds East for a distance of 241.49
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 07 degrees 17 minutes 08 seconds East for a distance of 71.42
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 79 degrees 26 minutes 44 seconds East for a distance of 307.88
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 48 degrees 14 minutes 55 seconds East for a distance of 157.63
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 27 degrees 04 minutes 19 seconds East for a distance of 111.97
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 55 degrees 09 minutes 32 seconds East for a distance of 128.35
feet to a POINT IN THE CENTERLINE OF THE CREEK;

                                       A-2

<PAGE>

     THENCE North 08 degrees 06 minutes 45 seconds East for a distance of 34.61
feet to an IRON PIN SET IN THE CENTERLINE OF THE CREEK;

     THENCE South 88 degrees 37 minutes 10 seconds East for a distance of 212.86
feet to a 1/2 inch rebar set on the Westerly line of a GEORGIA POWER COMPANY
TRANSMISSION LINE RIGHT OF WAY (150 FOOT WIDTH); Said point being the POINT OF
BEGINNING.

     Said property contains 46.13 acres, and is that same tract or parcel of
land shown as Tract A1 on that certain ALTA/ACSM Title Survey, entitled Heard
County Power Generation Site for Tenaska, Inc., Tenaska Georgia, Inc., Tenaska
Georgia I, LP, Tenaska Georgia Partners, LP, Fidelity National Title Insurance
Company of New York, Stewart Title Guaranty Company, Heard County Development
Authority & The Chase Manhattan Bank as Trustee and Collateral Agent, prepared
by Donaldson, Garrett & Associate, Inc., bearing the seal and certification of
James W. Newberry, Jr. Registered Land Surveyor No. 2558, dated March 19, 1999,
last revised November 4, 1999, and recorded in Plat Book 10, Pages 176 - 188, in
the Office of the Clerk of the Superior Court of Heard County, Georgia.

     TRACT B

     ALL THAT TRACT OR PARCEL OF LAND SITUATE, LYING AND BEING IN LAND LOTS 236
& 237 OF THE THIRD LAND DISTRICT OF HEARD COUNTY GEORGIA, AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:

     COMMENCING AT THE INTERSECTION OF THE WESTERLY RIGHT OF WAY LINE OF JOE
STEPHENS ROAD (80 FOOT WIDTH) WITH THE SOUTHERLY RIGHT OF WAY LINE OF GEORGE
BROWN ROAD (PRESCRIPTIVE RIGHT OF WAY 40 FEET, MORE OR LESS, IN WIDTH), SAID
POINT BEING THE POINT OF REFERENCE;THENCE ALONG THE SOUTHERLY MARGIN OF GEORGE
BROWN ROAD SOUTH 74 DEGREES 00 MINUTES 18 SECONDS WEST FOR A DISTANCE OF 877.40
FEET TO A METAL FENCE POST FLUSH WITH THE GROUND;

     THENCE South 01 degrees 19 minutes 00 seconds West for a distance of 902.40
feet to a STEEL FENCE POST;

     THENCE South 01 degrees 36 minutes 50 seconds East for a distance of 321.00
feet to a 1" PIPE;

     THENCE South 00 degrees 28 minutes 16 seconds West for a distance of 802.62
feet to a 1" PIPE;

     THENCE South 00 degrees 43 minutes 57 seconds West for a distance of 291.17
feet to a POINT IN THE CENTERLINE OF HILLY MILL CREEK;

     THENCE along the centerline of Hilly Mill Creek to the Northwest, more or
less, North 60 degrees 42 minutes 09 seconds West for a distance of 97.17 feet
to a POINT IN THE CENTERLINE OF THE CREEK;

                                      A-3

<PAGE>

     THENCE South 21 degrees 03 minutes 44 seconds West for a distance of 136.80
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 73 degrees 18 minutes 03 seconds West for a distance of 223.86
feet to a POINT AT THE CENTERLINE OF A GEORGIA POWER COMPANY TRANSMISSION LINE
RIGHT OF WAY (150 FOOT WIDTH);

     THENCE North 73 degrees 18 minutes 03 seconds West for a distance of 36.90
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 46 degrees 21 minutes 20 seconds West for a distance of 127.90
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 78 degrees 13 minutes 26 seconds West for a distance of 274.76
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 53 degrees 56 minutes 11 seconds West for a distance of 188.31
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 26 degrees 05 minutes 05 seconds West for a distance of 142.40
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 74 degrees 59 minutes 42 seconds West for a distance of 170.99
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 53 degrees 11 minutes 27 seconds West for a distance of 280.96
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 65 degrees 46 minutes 02 seconds West for a distance of 101.90
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE South 56 degrees 23 minutes 59 seconds West for a distance of 162.95
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 80 degrees 36 minutes 29 seconds West for a distance of 406.05
feet to a POINT IN THE CENTERLINE OF THE CREEK;

     THENCE North 29 degrees 13 minutes 39 seconds West for a distance of 496.12
feet to a POINT OF INTERSECTION OF HILLY MILL CREEK AND AN UNNAMED CREEK FROM
THE NORTHEAST;

     THENCE South 78 degrees 47 minutes 46 seconds West for a distance of 360.23
feet to a point on the Southern limits of the wetlands of Hilly Mill Creek, Said
point being the POINT OF BEGINNING for the herein described parcel of land;

     THENCE along said wetlands limits to the Southeast, more or less, South 53
degrees 54 minutes 27 seconds East for a distance of 76.08 feet to a point;

                                      A-4

<PAGE>

     THENCE South 45 degrees 43 minutes 13 seconds East for a distance of 63.42
feet to a point;

     THENCE South 37 degrees 54 minutes 40 seconds East for a distance of 63.14
feet to a point;

     THENCE South 12 degrees 38 minutes 55 seconds West for a distance of 96.50
feet to a point;

     THENCE South 31 degrees 53 minutes 23 seconds West for a distance of 54.60
feet to a point;

     THENCE South 41 degrees 48 minutes 24 seconds West for a distance of 62.60
feet to a point;

     THENCE South 08 degrees 50 minutes 54 seconds West for a distance of 30.89
feet to a point;

     THENCE South 73 degrees 19 minutes 07 seconds East for a distance of 59.72
feet to a point;

     THENCE North 74 degrees 25 minutes 30 seconds East for a distance of 60.24
feet to a point;

     THENCE North 47 degrees 07 minutes 32 seconds East for a distance of 33.85
feet to a point;

     THENCE North 03 degrees 16 minutes 22 seconds East for a distance of 30.45
feet to a point;

     THENCE South 61 degrees 11 minutes 13 seconds East for a distance of 29.26
feet to a point;

     THENCE South 43 degrees 42 minutes 16 seconds East for a distance of 44.52
feet to a point;

     THENCE South 49 degrees 16 minutes 16 seconds East for a distance of 57.00
feet to a point;

     THENCE South 30 degrees 34 minutes 48 seconds East for a distance of 65.93
feet to a point;

     THENCE South 24 degrees 24 minutes 28 seconds East for a distance of 47.19
feet to a point;

     THENCE South 21 degrees 50 minutes 49 seconds East for a distance of 58.28
feet to a point;

                                      A-5
<PAGE>

         THENCE South 24 degrees 09 minutes 26 seconds East for a distance of
79.36 feet to a point;

         THENCE South 27 degrees 37 minutes 37 seconds East for a distance of
52.90 feet to a point;

         THENCE South 45 degrees 45 minutes 34 seconds East for a distance of
37.07 feet to a point;

         THENCE North 35 degrees 31 minutes 29 seconds East for a distance of
32.07 feet to a point;

         THENCE South 37 degrees 21 minutes 56 seconds East for a distance of
38.13 feet to a point;

         THENCE South 15 degrees 07 minutes 14 seconds East for a distance of
55.08 feet to a point;

         THENCE South 49 degrees 21 minutes 23 seconds East for a distance of
41.61 feet to a point;

         THENCE South 10 degrees 21 minutes 54 seconds East for a distance of
66.83 feet to a point;

         THENCE South 28 degrees 17 minutes 29 seconds West for a distance of
51.89 feet to a point;

         THENCE South 04 degrees 18 minutes 43 seconds West for a distance of
78.67 feet to a point;

         THENCE South 06 degrees 56 minutes 49 seconds West for a distance of
56.79 feet to a point;

         THENCE South 07 degrees 48 minutes 12 seconds West for a distance of
48.18 feet to a point;

         THENCE South 35 degrees 36 minutes 30 seconds West for a distance of
63.01 feet to a point;

         THENCE South 03 degrees 06 minutes 41 seconds West for a distance of
49.25 feet to a point;

         THENCE leaving said wetlands limits, North 65 degrees 01 minutes 43
seconds West for a distance of 98.87 feet to a point;

         THENCE North 11 degrees 02 minutes 41 seconds East for a distance of
230.45 feet to a point;
                                      A-6
<PAGE>

         THENCE North 11 degrees 13 minutes 13 seconds West for a distance of
121.54 feet to a point;

         THENCE North 38 degrees 58 minutes 52 seconds West for a distance of
121.90 feet to a point;

         THENCE North 23 degrees 10 minutes 22 seconds West for a distance of
116.83 feet to a point;

         THENCE North 27 degrees 01 minutes 41 seconds West for a distance of
102.77 feet to a point;

         THENCE North 44 degrees 31 minutes 22 seconds West for a distance of
55.85 feet to a point;

         THENCE South 70 degrees 40 minutes 56 seconds West for a distance of
73.31 feet to a point;

         THENCE South 71 degrees 22 minutes 08 seconds West for a distance of
120.59 feet to a point;

         THENCE North 27 degrees 11 minutes 02 seconds West for a distance of
173.06 feet to a point;

         THENCE North 06 degrees 27 minutes 30 seconds East for a distance of
58.98 feet to a point;

         THENCE North 40 degrees 46 minutes 01 seconds East for a distance of
132.31 feet to a point;

         THENCE North 01 degrees 41 minutes 21 seconds West for a distance of
32.15 feet to a point;

         THENCE North 42 degrees 40 minutes 25 seconds West for a distance of
132.37 feet to a point;

         THENCE North 47 degrees 57 minutes 38 seconds East for a distance of
97.57 feet to the POINT OF BEGINNING.

         Said property contains 3.84 acres more or less and is that same tract
or parcel of land shown as Tract B on that certain ALTA/ACSM Title Survey,
entitled Heard County Power Generation Site for Tenaska, Inc., Tenaska Georgia,
Inc., Tenaska Georgia I, LP, Tenaska Georgia Partners, LP, Fidelity National
Title Insurance Company of New York, Stewart Title Guaranty Company, Heard
County Development Authority & The Chase Manhattan Bank as Trustee and
Collateral Agent, prepared by Donaldson, Garrett & Associate, Inc., bearing the
seal and certification of James W. Newberry, Jr. Registered Land Surveyor No.
2558, dated March 19, 1999, last revised November 4, 1999, and recorded in Plat
Book 10, Pages 176 - 188, in the Office of the Clerk of the Superior Court of
Heard County, Georgia.

                                      A-7
<PAGE>

         TRACT C

         ALL THAT TRACT OR PARCEL OF LAND SITUATE, LYING AND BEING IN LAND LOT
236 OF THE THIRD LAND DISTRICT OF HEARD COUNTY GEORGIA, AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:

         COMMENCING AT THE INTERSECTION OF THE WESTERLY RIGHT OF WAY LINE OF JOE
STEPHENS ROAD (80 FOOT WIDTH) WITH THE SOUTHERLY RIGHT OF WAY LINE OF GEORGE
BROWN ROAD (PRESCRIPTIVE RIGHT OF WAY 40 FEET, MORE OR LESS, IN WIDTH), SAID
POINT BEING THE POINT OF REFERENCE;THENCE ALONG THE SOUTHERLY MARGIN OF GEORGE
BROWN ROAD SOUTH 74 DEGREES 00 MINUTES 18 SECONDS WEST FOR A DISTANCE OF 877.40
FEET TO A METAL FENCE POST FLUSH WITH THE GROUND;

         THENCE South 01 degrees 19 minutes 00 seconds West for a distance of
902.40 feet to a STEEL FENCE POST;

         THENCE South 01 degrees 36 minutes 50 seconds East for a distance of
321.00 feet to a 1" PIPE;

         THENCE South 00 degrees 28 minutes 16 seconds West for a distance of
802.62 feet to a 1" PIPE;

         THENCE South 00 degrees 43 minutes 57 seconds West for a distance of
291.17 feet to a POINT IN THE CENTERLINE OF HILLY MILL CREEK;

         THENCE South 01 degrees 18 minutes 40 seconds West for a distance of
32.38 feet to a point;

         THENCE South 02 degrees 18 minutes 34 seconds West for a distance of
978.06 feet to a point on the Southerly limits of the Wetlands of Hilly Mill
Creek, said point being the POINT OF BEGINNING for the herein described parcel
of land.

         THENCE South 02 degrees 18 minutes 34 seconds West for a distance of
84.64 feet to a 3/4" PIPE;

         THENCE South 01 degrees 21 minutes 15 seconds West for a distance of
12.03 feet to a point;

         THENCE North 72 degrees 59 minutes 23 seconds West for a distance of
97.41 feet to a point;

         THENCE North 28 degrees 40 minutes 02 seconds West for a distance of
114.55 feet to a point;
                                      A-8
<PAGE>

         THENCE North 62 degrees 08 minutes 04 seconds West for a distance of
184.99 feet to a point;

         THENCE North 63 degrees 50 minutes 09 seconds West for a distance of
166.92 feet to a point;

         THENCE North 64 degrees 00 minutes 12 seconds West for a distance of
173.39 feet to a point;

         THENCE North 87 degrees 49 minutes 10 seconds West for a distance of
111.55 feet to a point;

         THENCE North 66 degrees 04 minutes 51 seconds West for a distance of
158.94 feet to a point;

         THENCE North 66 degrees 19 minutes 50 seconds West for a distance of
121.59 feet to a point;

         THENCE North 53 degrees 03 minutes 38 seconds West for a distance of
186.45 feet to a point;

         THENCE North 44 degrees 18 minutes 22 seconds West for a distance of
163.48 feet to a point;

         THENCE North 56 degrees 31 minutes 54 seconds West for a distance of
127.08 feet to a point;

         THENCE North 49 degrees 42 minutes 26 seconds West for a distance of
110.80 feet to a point;

         THENCE South 63 degrees 26 minutes 27 seconds West for a distance of
73.93 feet to a point;

         THENCE South 34 degrees 43 minutes 18 seconds West for a distance of
155.58 feet to a point;

         THENCE North 65 degrees 01 minutes 43 seconds West for a distance of
125.76 feet to a point on the Southerly Wetland limits of Hilly Mill Creek;

         THENCE along said Wetland Limits to the Southeast, more or Less, North
19 degrees 07 minutes 29 seconds East for a distance of 19.11 feet to a point;

         THENCE North 11 degrees 12 minutes 10 seconds East for a distance of
55.36 feet to a point;

         THENCE North 59 degrees 47 minutes 00 seconds East for a distance of
61.82 feet to a point;

                                      A-9
<PAGE>

         THENCE North 46 degrees 30 minutes 17 seconds East for a distance of
108.43 feet to a point;

         THENCE North 51 degrees 07 minutes 59 seconds East for a distance of
99.18 feet to a point;

         THENCE North 78 degrees 57 minutes 49 seconds East for a distance of
32.52 feet to a point;

         THENCE South 66 degrees 51 minutes 15 seconds East for a distance of
88.50 feet to a point;

         THENCE South 51 degrees 09 minutes 25 seconds East for a distance of
75.29 feet to a point;

         THENCE South 42 degrees 38 minutes 23 seconds East for a distance of
82.73 feet to a point;

         THENCE South 66 degrees 04 minutes 46 seconds East for a distance of
88.97 feet to a point;

         THENCE South 32 degrees 53 minutes 29 seconds East for a distance of
60.69 feet to a point;

         THENCE South 62 degrees 19 minutes 25 seconds East for a distance of
64.45 feet to a point;

         THENCE South 34 degrees 53 minutes 35 seconds East for a distance of
38.63 feet to a point;

         THENCE South 36 degrees 35 minutes 41 seconds East for a distance of
74.06 feet to a point;

         THENCE South 55 degrees 19 minutes 31 seconds East for a distance of
73.40 feet to a point;

         THENCE South 57 degrees 46 minutes 00 seconds East for a distance of
45.12 feet to a point;

         THENCE North 39 degrees 42 minutes 35 seconds East for a distance of
48.51 feet to a point;

         THENCE South 26 degrees 49 minutes 36 seconds East for a distance of
66.09 feet to a point;

         THENCE South 63 degrees 22 minutes 19 seconds East for a distance of
81.30 feet to a point;

                                      A-10
<PAGE>

         THENCE South 60 degrees 12 minutes 05 seconds East for a distance of
47.15 feet to a point;

         THENCE North 76 degrees 42 minutes 50 seconds East for a distance of
37.29 feet to a point;

         THENCE South 67 degrees 38 minutes 47 seconds East for a distance of
104.31 feet to a point;

         THENCE South 58 degrees 01 minutes 02 seconds East for a distance of
94.01 feet to a point;

         THENCE South 73 degrees 39 minutes 40 seconds East for a distance of
90.45 feet to a point;

         THENCE South 46 degrees 08 minutes 36 seconds East for a distance of
73.29 feet to a point;

         THENCE South 68 degrees 34 minutes 52 seconds East for a distance of
80.11 feet to a point;

         THENCE South 72 degrees 11 minutes 52 seconds East for a distance of
174.98 feet to a point;

         THENCE South 74 degrees 05 minutes 22 seconds East for a distance of
25.78 feet to a point;

         THENCE South 51 degrees 26 minutes 02 seconds East for a distance of
43.79 feet to a point;

         THENCE South 09 degrees 58 minutes 33 seconds East for a distance of
54.59 feet to a point;

         THENCE South 45 degrees 04 minutes 30 seconds East for a distance of
50.75 feet to a point;

         THENCE South 55 degrees 48 minutes 09 seconds East for a distance of
59.24 feet to the POINT OF BEGINNING.

          Said property contains 5.13 acres more or less and is that same tract
or parcel of land shown as Tract C on that certain ALTA/ACSM Title Survey,
entitled Heard County Power Generation Site for Tenaska, Inc., Tenaska Georgia,
Inc., Tenaska Georgia I, LP, Tenaska Georgia Partners, LP, Fidelity National
Title Insurance Company of New York, Stewart Title Guaranty Company, Heard
County Development Authority & The Chase Manhattan Bank as Trustee and
Collateral Agent, prepared by Donaldson, Garrett & Associate, Inc., bearing the
seal and certification of James W. Newberry, Jr. Registered Land Surveyor No.
2558, dated March 19, 1999, last revised November 4, 1999, and recorded in Plat
Book 10, Pages 176 - 188, in the Office of the Clerk of the Superior Court of
Heard County, Georgia.

                                      A-11
<PAGE>

         TRACT D

         ALL THAT TRACT OR PARCEL OF LAND SITUATE, LYING AND BEING IN LAND LOTS
236 & 237 OF THE THIRD LAND DISTRICT OF HEARD COUNTY GEORGIA, AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:

         COMMENCING AT THE INTERSECTION OF THE WESTERLY RIGHT OF WAY LINE OF JOE
STEPHENS ROAD (80 FOOT WIDTH) WITH THE SOUTHERLY RIGHT OF WAY LINE OF GEORGE
BROWN ROAD (PRESCRIPTIVE RIGHT OF WAY 40 FEET, MORE OR LESS, IN WIDTH), SAID
POINT BEING THE POINT OF REFERENCE;THENCE ALONG THE SOUTHERLY MARGIN OF GEORGE
BROWN ROAD SOUTH 74 DEGREES 00 MINUTES 18 SECONDS WEST FOR A DISTANCE OF 877.40
FEET TO A METAL FENCE POST FLUSH WITH THE GROUND;

         THENCE South 01 degrees 19 minutes 00 seconds West for a distance of
902.40 feet to a STEEL FENCE POST;

         THENCE South 01 degrees 36 minutes 50 seconds East for a distance of
321.00 feet to a 1" PIPE;

         THENCE South 00 degrees 28 minutes 16 seconds West for a distance of
802.62 feet to a 1" PIPE;

         THENCE South 00 degrees 43 minutes 57 seconds West for a distance of
291.17 feet to a POINT IN THE CENTERLINE OF HILLY MILL CREEK; SAID POINT BEING
THE POINT OF BEGINNING FOR THE HEREIN DESCRIBED PARCEL OF LAND.

         THENCE along the centerline of Hilly Mill Creek to the Northwest, more
or less, North 60 degrees 42 minutes 09 seconds West for a distance of 97.17
feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE South 21 degrees 03 minutes 44 seconds West for a distance of
136.80 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 73 degrees 18 minutes 03 seconds West for a distance of
223.86 feet to a POINT AT THE CENTERLINE OF A GEORGIA POWER COMPANY TRANSMISSION
LINE RIGHT OF WAY (150 FOOT WIDTH);

         THENCE North 73 degrees 18 minutes 03 seconds West for a distance of
36.90 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 46 degrees 21 minutes 20 seconds West for a distance of
127.90 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 78 degrees 13 minutes 26 seconds West for a distance of
274.76 feet to a POINT IN THE CENTERLINE OF THE CREEK;

                                      A-12
<PAGE>

         THENCE North 53 degrees 56 minutes 11 seconds West for a distance of
188.31 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 26 degrees 05 minutes 05 seconds West for a distance of
142.40 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 74 degrees 59 minutes 42 seconds West for a distance of
170.99 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 53 degrees 11 minutes 27 seconds West for a distance of
280.96 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 65 degrees 46 minutes 02 seconds West for a distance of
101.90 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE South 56 degrees 23 minutes 59 seconds West for a distance of
162.95 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 80 degrees 36 minutes 29 seconds West for a distance of
406.05 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 29 degrees 13 minutes 39 seconds West for a distance of
496.12 feet to a POINT OF INTERSECTION OF HILLY MILL CREEK AND AN UNNAMED CREEK
FROM THE NORTHEAST;

         THENCE South 78 degrees 47 minutes 46 seconds West for a Distance of
360.23 feet to a point on the Southern limits of the wetlands of Hilly Mill
Creek;

         THENCE along said wetlands limits to the Southeast, more or less, South
53 degrees 54 minutes 27 seconds East for a distance of 76.08 feet to a point;

         THENCE South 45 degrees 43 minutes 13 seconds East for a distance of
63.42 feet to a point;

         THENCE South 37 degrees 54 minutes 40 seconds East for a distance of
63.14 feet to a point;

         THENCE South 12 degrees 38 minutes 55 seconds West for a distance of
96.50 feet to a point;

         THENCE South 31 degrees 53 minutes 23 seconds West for a distance of
54.60 feet to a point;

         THENCE South 41 degrees 48 minutes 24 seconds West for a distance of
62.60 feet to a point;

                                      A-13
<PAGE>

         THENCE South 08 degrees 50 minutes 54 seconds West for a distance of
30.89 feet to a point;

         THENCE South 73 degrees 19 minutes 07 seconds East for a distance of
59.72 feet to a point;

         THENCE North 74 degrees 25 minutes 30 seconds East for a distance of
60.24 feet to a point;

         THENCE North 47 degrees 07 minutes 32 seconds East for a distance of
33.85 feet to a point;

         THENCE North 03 degrees 16 minutes 22 seconds East for a distance of
30.45 feet to a point;

         THENCE South 61 degrees 11 minutes 13 seconds East for a distance of
29.26 feet to a point;

         THENCE South 43 degrees 42 minutes 16 seconds East for a distance of
44.52 feet to a point;

         THENCE South 49 degrees 16 minutes 16 seconds East for a distance of
57.00 feet to a point;

         THENCE South 30 degrees 34 minutes 48 seconds East for a distance of
65.93 feet to a point;

         THENCE South 24 degrees 24 minutes 28 seconds East for a distance of
47.19 feet to a point;

         THENCE South 21 degrees 50 minutes 49 seconds East for a distance of
58.28 feet to a point;

         THENCE South 24 degrees 09 minutes 26 seconds East for a distance of
79.36 feet to a point;

         THENCE South 27 degrees 37 minutes 37 seconds East for a distance of
52.90 feet to a point;

         THENCE South 45 degrees 45 minutes 34 seconds East for a distance of
37.07 feet to a point;

         THENCE North 35 degrees 31 minutes 29 seconds East for a distance of
32.07 feet to a point;

         THENCE South 37 degrees 21 minutes 56 seconds East for a distance of
38.13 feet to a point;

                                      A-14
<PAGE>

         THENCE South 15 degrees 07 minutes 14 seconds East for a distance of
55.08 feet to a point;

         THENCE South 49 degrees 21 minutes 23 seconds East for a distance of
41.61 feet to a point;

         THENCE South 10 degrees 21 minutes 54 seconds East for a distance of
66.83 feet to a point;

         THENCE South 28 degrees 17 minutes 29 seconds West for a distance of
51.89 feet to a point;

         THENCE South 04 degrees 18 minutes 43 seconds West for a distance of
78.67 feet to a point;

         THENCE South 06 degrees 56 minutes 49 seconds West for a distance of
56.79 feet to a point;

         THENCE South 07 degrees 48 minutes 12 seconds West for a distance of
48.18 feet to a point;

         THENCE South 35 degrees 36 minutes 30 seconds West for a distance of
63.01 feet to a point;

         THENCE South 03 degrees 06 minutes 41 seconds West for a distance of
49.25 feet to a point;

         THENCE across an unnamed creek and wetlands area which intersects from
the Southwest, South 65 degrees 01 minutes 43 seconds East for a distance of
394.79 feet to a point;

         THENCE continuing along said wetlands limit, North 19 degrees 07
minutes 29 seconds East for a distance of 19.11 feet to a point;

         THENCE North 11 degrees 12 minutes 10 seconds East for a distance of
55.36 feet to a point;

         THENCE North 59 degrees 47 minutes 00 seconds East for a distance of
61.82 feet to a point;

         THENCE North 46 degrees 30 minutes 17 seconds East for a distance of
108.43 feet to a point;

         THENCE North 51 degrees 07 minutes 59 seconds East for a distance of
99.18 feet to a point;

         THENCE North 78 degrees 57 minutes 49 seconds East for a distance of
32.52 feet to a point;

                                      A-15
<PAGE>

         THENCE South 66 degrees 51 minutes 15 seconds East for a distance of
88.50 feet to a point;

         THENCE South 51 degrees 09 minutes 25 seconds East for a distance of
75.29 feet to a point;

         THENCE South 42 degrees 38 minutes 23 seconds East for a distance of
82.73 feet to a point;

         THENCE South 66 degrees 04 minutes 46 seconds East for a distance of
88.97 feet to a point;

         THENCE South 32 degrees 53 minutes 29 seconds East for a distance of
60.69 feet to a point;

         THENCE South 62 degrees 19 minutes 25 seconds East for a distance of
64.45 feet to a point;

         THENCE South 34 degrees 53 minutes 35 seconds East for a distance of
38.63 feet to a point;

         THENCE South 36 degrees 35 minutes 41 seconds East for a distance of
74.06 feet to a point;

         THENCE South 55 degrees 19 minutes 31 seconds East for a distance of
73.40 feet to a point;

         THENCE South 57 degrees 46 minutes 00 seconds East for a distance of
45.12 feet to a point;

         THENCE North 39 degrees 42 minutes 35 seconds East for a distance of
48.51 feet to a point;

         THENCE South 26 degrees 49 minutes 36 seconds East for a distance of
66.09 feet to a point;

         THENCE South 63 degrees 22 minutes 19 seconds East for a distance of
81.30 feet to a point;

         THENCE South 60 degrees 12 minutes 05 seconds East for a distance of
47.15 feet to a point;

         THENCE North 76 degrees 42 minutes 50 seconds East for a distance of
37.29 feet to a point;

         THENCE South 67 degrees 38 minutes 47 seconds East for a distance of
104.31 feet to a point;

                                      A-16
<PAGE>

         THENCE South 58 degrees 01 minutes 02 seconds East for a distance of
94.01 feet to a point;

         THENCE South 73 degrees 39 minutes 40 seconds East for a distance of
90.45 feet to a point;

         THENCE South 46 degrees 08 minutes 36 seconds East for a distance of
73.29 feet to a point;

         THENCE South 68 degrees 34 minutes 52 seconds East for a distance of
80.11 feet to a point;

         THENCE South 72 degrees 11 minutes 52 seconds East for a distance of
174.98 feet to a point;

         THENCE South 74 degrees 05 minutes 22 seconds East for a distance of
25.78 feet to a point;

         THENCE South 51 degrees 26 minutes 02 seconds East for a distance of
43.79 feet to a point;

         THENCE South 09 degrees 58 minutes 33 seconds East for a distance of
54.59 feet to a point;

         THENCE South 45 degrees 04 minutes 30 seconds East for a distance of
50.75 feet to a point;

         THENCE South 55 degrees 48 minutes 09 seconds East for a distance of
59.24 feet to a point;

         THENCE North 02 degrees 18 minutes 34 seconds East for a distance of
978.06 feet to a point;

         THENCE North 01 degrees 18 minutes 40 seconds East for a distance of
32.38 feet to the POINT OF BEGINNING.

         Said property contains 43.03 acres more or less and is that same tract
or parcel of land shown as Tract D on that certain ALTA/ACSM Title Survey,
entitled Heard County Power Generation Site for Tenaska, Inc., Tenaska Georgia,
Inc., Tenaska Georgia I, LP, Tenaska Georgia Partners, LP, Fidelity National
Title Insurance Company of New York, Stewart Title Guaranty Company, Heard
County Development Authority & The Chase Manhattan Bank as Trustee and
Collateral Agent, prepared by Donaldson, Garrett & Associate, Inc., bearing the
seal and certification of James W. Newberry, Jr. Registered Land Surveyor No.
2558, dated March 19, 1999, last revised November 4, 1999, and recorded in Plat
Book 10, Pages 176 - 188, in the Office of the Clerk of the Superior Court of
Heard County, Georgia.

                                      A-17
<PAGE>

         TRACT G

         ALL THAT TRACT OR PARCEL OF LAND SITUATE, LYING AND BEING IN LAND LOT
236 OF THE THIRD LAND DISTRICT OF HEARD COUNTY GEORGIA, AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:

         COMMENCING AT THE INTERSECTION OF THE WESTERLY RIGHT OF WAY LINE OF JOE
STEPHENS ROAD (80 FOOT WIDTH) WITH THE SOUTHERLY RIGHT OF WAY LINE OF GEORGE
BROWN ROAD (PRESCRIPTIVE RIGHT OF WAY 40 FEET, MORE OR LESS, IN WIDTH), SAID
POINT BEING THE POINT OF REFERENCE;THENCE ALONG THE SOUTHERLY MARGIN OF GEORGE
BROWN ROAD SOUTH 74 DEGREES 00 MINUTES 18 SECONDS WEST FOR A DISTANCE OF 877.40
FEET TO A METAL FENCE POST FLUSH WITH THE GROUND;

         THENCE South 01 degrees 19 minutes 00 seconds West for a distance of
902.40 feet to a STEEL FENCE POST;

         THENCE South 01 degrees 36 minutes 50 seconds East for a distance of
321.00 feet to a 1" PIPE;

         THENCE South 00 degrees 28 minutes 16 seconds West for a distance of
802.62 feet to a 1" PIPE;

         THENCE South 00 degrees 43 minutes 57 seconds West for a distance of
291.17 feet to a POINT IN THE CENTERLINE OF HILLY MILL CREEK;

         THENCE South 01 degrees 18 minutes 40 seconds West for a distance of
32.38 feet to a point;

         THENCE South 02 degrees 18 minutes 34 seconds West for a distance of
978.06 feet to a point on the Southerly limits of the Wetlands of Hilly Mill
Creek;

         THENCE South 02 degrees 18 minutes 34 seconds West for a distance of
84.64 feet to a 3/4 inch pipe;

         THENCE South 01 degrees 21 minutes 15 seconds West for a distance of
12.03 feet;

         THENCE South 01 degrees 21 minutes 15 seconds West for a distance of
140.19 feet to a Painted Rock;

         THENCE North 88 degrees 57 minutes 38 Seconds West for a distance of
1520.84 feet to a point, said point being the POINT OF BEGINNING for the herein
described parcel of land.

         THENCE North 88 degrees 57 minutes 38 seconds West for a distance of
177.75 feet to point;

         THENCE North 03 degrees 30 minutes 04 seconds West for a distance of
82.45 feet to a point;

                                      A-18
<PAGE>

         THENCE North 45 degrees 03 minutes 01 seconds East for a distance of
639.20 feet to a point;

         THENCE North 19 degrees 13 minutes 55 seconds East for a distance of
52.57 feet to a point;

         THENCE North 70 degrees 46 minutes 05 seconds West for a distance of
175.00 feet to a point;

         THENCE North 19 degrees 13 minutes 55 seconds East for a distance of
150.00 feet to a point;

         THENCE South 70 degrees 46 minutes 05 seconds East for a distance of
175.00 feet to a point;

         THENCE North 19 degrees 13 minutes 55 seconds East for a distance of
25.93 feet to a point;

         THENCE South 44 degrees 18 minutes 22 seconds East for a distance of
63.80 feet to a point;

         THENCE South 53 degrees 03 minutes 38 seconds East for a distance of
18.78 feet to a point;

         THENCE South 19 degrees 13 minutes 55 seconds West for a distance of
211.55 feet to a point;

         THENCE South 45 degrees 03 minutes 01 seconds West for a distance of
11.80 feet to a point;

         THENCE along a curve to the right having a radius of 3600.00 feet, a
central angle of 09 degrees 21 minutes 08 seconds, an Arc length of 587.61 feet,
and subtended by a chord bearing South 33 degrees 47 minutes 14 seconds West for
a distance of 586.96 feet to the POINT OF BEGINNING.

Said property contains 3.16 acres more or less and is that same tract or parcel
of land shown as Tract G on that certain ALTA/ACSM Title Survey, entitled Heard
County Power Generation Site for Tenaska, Inc., Tenaska Georgia, Inc., Tenaska
Georgia I, LP, Tenaska Georgia Partners, LP, Fidelity National Title Insurance
Company of New York, Stewart Title Guaranty Company, Heard County Development
Authority & The Chase Manhattan Bank as Trustee and Collateral Agent, prepared
by Donaldson, Garrett & Associate, Inc., bearing the seal and certification of
James W. Newberry, Jr. Registered Land Surveyor No. 2558, dated March 19, 1999,
last revised November 4, 1999, and recorded in Plat Book 10, Pages 176 - 188, in
the Office of the Clerk of the Superior Court of Heard County, Georgia.

                                      A-19

<PAGE>

                                    EXHIBIT B

                         DESCRIPTION OF LEASED EQUIPMENT

I.       GENERAL

The Leased Equipment consists of all machinery, equipment and related personal
property from time to time located in the Building or on the Leased Land and
tagged or otherwise identified to reflect such ownership.

II.      SWITCHYARD EQUIPMENT

The Switchyard Equipment consists of the following pieces of Leased Equipment:

         (a) Two 500kV connections to the existing Wansley-Forston 500kV
transmission line.

         (b) One 500kV ring bus with three 500kV line circuit breakers complete
with disconnect switches, relaying and controls.

         (c) Three 500kV disconnect devices for generator's high side step-up
transformers.

         (d) Protective relaying equipment located off-site at the Wansley
substation.

         (e) Protective relaying equipment located off-site at the Fortson
substation.

<PAGE>

                                    EXHIBIT C

                                 PROJECT SUMMARY

         The following is a brief summary of the Project and certain agreements
relating thereto prepared by the Lessee, which summary may be modified, amended
or supplemented by the Lessee from time to time in accordance with the terms
hereof and of the other Financing Documents.

         OVERVIEW. The Facility is expected to be a 936 megawatt ("MW") (nominal
summer rating) natural gas-fired simple-cycle electric generating plant. It will
be located on a site near Georgia State Highway 34 in Heard County, Georgia,
approximately 40 miles southwest of Atlanta (the "Facility Site"). The Facility
will use natural gas to produce electric energy and will use fuel oil as a
back-up fuel. The Lessee expects the Facility to serve as a peaking facility,
operating primarily during the summer months with very low capacity factors
during the remainder of the year. Pursuant to a 29-year Power Purchase Agreement
dated August 24, 1999 (the "Power Purchase Agreement"), the Lessee will sell all
of the Facility's net capacity and electrical output to PECO Energy Company
("PECO") and PECO will provide the Lessee with natural gas and fuel oil.
Pursuant to a lump sum, fixed-price, date-certain contract (the "EPC Contract"),
Zachry Construction Corporation (the "EPC Contractor") will provide engineering,
procurement and construction services with respect to the Facility and its
related electric interconnection facilities. Pursuant to a Contract for
Purchase, dated August 27, 1999 (the "Turbine Contract") General Electric
Company will provide six PG7241 (FA) heavy-duty single shaft gas
turbine-generators that will be used to produce the electric energy at the
Facility. On the date of issuance of the Bonds, the right to acquire the
turbine-generators (hereinafter referred to as the "Units") under the Turbine
Contract will be assigned to the EPC Contractor, who will acquire the Units as a
part of its obligations under the EPC Contract. Pursuant to a Long Term Parts
and Long Term Service Contract (the "LTSA") with General Electric International
Inc. ("GEI"), GEI will provide long-term parts and servicing with respect to
major parts replacement and repair, inspection and overhaul services for the
Units. Certain other operations and maintenance services for the Project will be
provided by Tenaska Operations, Inc. under an Operations and Maintenance
Agreement (the "O&M Agreement"). Tenaska Operations, Inc. is referred to herein
as the "Operator."

         FACILITY SITE. The Facility Site lies in the middle of the Southern
Company transmission system, which extends from Mississippi to South Carolina
and from Tennessee to Florida. According to an analysis of the Southeast U.S.
power market prepared for the Lessee by Resource Data International, Inc.
("RDI"), the Project has many strong competitive advantages including direct
access to additional power markets beyond Georgia via relatively strong
transmission links into the TVA, Virginia and Southwest Power Pool markets, and
ready access to competitively-priced gas supply from a diversified range of
sources through an extensive interstate gas pipeline transmission system. In
addition, according to RDI, the Project represents a low cost, highly
competitive and much needed peaking resource for the growing Southeastern power
market.

<PAGE>

         Tenaska, Inc., the current owner of the 101-acre Facility Site, will
convey it to the Lessee concurrently with the issuance of the Bonds, and the
Lessee will transfer it, together with related easements held by the Lessee, to
the Issuer. In addition, Tenaska, Inc. will, at the same time, grant the Lessee
a lease of a nearby 13-acre area for laydown of material and equipment during
construction. This lease will remain in effect through the end of Project
construction. Tenaska, Inc. will also grant to the Lessee an option to acquire
certain land adjacent to the Facility Site. This land, together with a portion
of the Facility Site, will be the site at which the interconnection facilities
will be installed to interconnect the Facility with the transmission grid and
will be transferred by deed, ground lease, license or other conveyance to
Georgia Power Company ("GPC"), as owner of such facilities.

         THE FACILITY. The Facility will include six Units. Each Unit contains
an enclosed inlet air filter, evaporative cooler, air compressor, dual fuel
combustion system, power turbine, 3,600 rpm 60 Hz generator and auxiliary
systems. In each of the Units, atmospheric air and water are delivered into the
turbine combustion chamber for NOx control when firing fuel oil. Fuel oil
operation is limited by the air permit to 57 million gallons in any consecutive
12 month period and is expected to occur only when natural gas is not available.
The Units can be fueled by either natural gas or fuel oil, and will be capable
of switching fuels on-line at reduced load.

         POWER PURCHASE AGREEMENT. The Lessee's Power Purchase Agreement ("PPA")
with PECO provides for completion of the Facility in two stages of three Units
each. The base term of the PPA expires 29 years after the first three Units are
operational. The first three Units are scheduled to be operational on June 1,
2001. The second three Units are scheduled to be operational on June 1, 2002.
These dates are subject to adjustment to a limited extent in the case of a force
majeure event. PECO is responsible for supplying all the natural gas and fuel
oil necessary to fulfill the Lessee's obligations under the Power Purchase
Agreement. PECO will have the ability to dispatch any Unit upon such Unit
achieving operational status.

         All of the capacity and energy produced by the Facility is committed to
be sold to PECO, except for electricity that is used for the Facility's own
energy needs. The PPA provides for certain fixed payments (subject to
off-setting payments by us to PECO for reduced availability), an availability
incentive bonus and certain variable payments. The Lessee expects that such
fixed payments, which are payable whether or not PECO chooses to dispatch any of
the Units, will be adequate to cover the Lessee's debt service and fixed
operating and maintenance costs and to provide the Lessee with a return on
equity.

         EPC CONTRACT. Under the Lessee's EPC Contract, the Lessee is obligated
to pay a fixed price of $229,064,832 (including the cost of the Units under the
Turbine Contract) to Zachry Construction Corporation for the construction of the
Facility and its related electric interconnection facilities (subject to
increase for scope changes) (the "Guaranteed Lump Sum Price"). More than 70% of
the value of the EPC Contract is represented by the cost of the Units purchased
under the Turbine Contract. Construction of the Facility is scheduled to
commence in December 1999. The EPC Contract contains liquidated damages
provisions for late completion and for failure to meet certain performance
guarantees. The EPC Contractor's aggregate liability for liquidated damages for
such late completion and for failure to meet such performance guarantees is
limited to 30% of the Guaranteed Lump Sum Price. On September 10, 1999, the
Lessee delivered to the EPC Contractor a limited notice to proceed which
authorized the commencement of geotechnical investigations and engineering and
procurement activities by the EPC Contractor. The Lessee expects to deliver to
the EPC Contractor full notice to proceed on

                                      C-2

<PAGE>

the date of issuance of the Bonds. The EPC Contractor's obligations under the
EPC Contract will be guaranteed by its parent company, H.B. Zachry Company. The
EPC Contractor will also provide a payment and performance bond in the amount of
the Guaranteed Lump Sum Price issued by United States Fidelity and Guaranty
Company.

         TURBINE CONTRACT. Tenaska Georgia I, L.P. had previously acquired
rights to purchase the Units from GE. The Turbine Contract has been assigned to
the EPC Contractor as cost, resulting in approximately $33.6 million in savings
over recent market prices. As assignee of the Turbine Contract, the EPC
Contractor will acquire the Units. The Turbine Contract requires the Units to be
delivered in installments beginning September 30, 2000 and continuing through
December 15, 2001. GE will be obligated to pay damages to the EPC Contractor (i)
for unexcused late delivery of the Units and (ii) if the performance of the
Units is not as required under the Turbine Contract. GE will also issue certain
warranties in connection with the performance of the Units.

         LONG TERM PARTS AND LONG TERM SERVICE CONTRACT. This agreement with GEI
provides the Lessee with long-term maintenance services with respect to the
Units and covers major parts replacement and repair, inspection and overhaul
services for the Units. Pursuant to this agreement, GEI is obligated to provide
certain long-term guarantees on the performance availability of the Units.

         OPERATIONS AND MAINTENANCE AGREEMENT. The Lessee entered into the O&M
Agreement with the Operator on September 10, 1999 for the operation and
maintenance of the Project. The O&M Agreement has a term of 29 years from the
date of commercial operation of the first three Units. The Operator is obligated
to provide all services necessary for the safe and reliable start-up,
commissioning, operation and maintenance of the Project. The Operator will be
compensated with a fixed management fee and an incentive fee, with an
availability adjustment based on performance.

         The Operator is organized under Delaware law and is a wholly-owned
subsidiary of Tenaska, Inc. The Operator was formed to provide operations and
maintenance services to electric generating facilities in which affiliates of
Tenaska, Inc. have an interest. Pursuant to the O&M Agreement, the Operator is
obligated to provide initial startup support for the Project prior to the date
of commercial operation of the first three Units, operate and maintain the first
three Units once they achieve commercial operation and operate and maintain the
completed Project. The Operator is obligated to provide skilled personnel,
procedures, training, administrative, management, and professional and technical
services necessary for the safe and reliable start-up, commissioning, operation
and maintenance of the Project.

         FUEL ARRANGEMENTS. PECO is obligated to supply the Lessee with all the
fuel necessary to produce electric energy for PECO. The Lessee has entered into
the Interconnect, Reimbursement and Operating Agreement with Transcontinental
Gas Pipe Line Corporation ("Transco"), on August 18, 1999 (the "Gas Interconnect
Agreement"). Under this agreement, Transco will install and own metering
facilities for an interconnection between Transco's pipeline and a lateral gas
pipeline to be constructed to deliver to deliver natural gas from this
interconnection point to the Facility Site. The gas pipeline will be part of the
property owned by the Issuer and leased to the Lessee and will be designed,
constructed and installed pursuant to a $2.3 million Fixed Price Engineering,
Procurement and Construction Contract between the Lessee and Willbros Engineers,
Inc., dated September 23, 1999.

                                      C-3

<PAGE>

         Fuel oil will be delivered to the Facility Site by truck and stored in
a 165,000 barrel storage tank. We expect this quantity to be sufficient to
operate all available Units for over 80 hours at full capacity. Four fuel oil
unloading stations will be constructed to enable the Facility to operate on fuel
oil for extended periods of time, should the need arise, subject to air permit
restrictions.

         ELECTRIC INTERCONNECTION ARRANGEMENTS. The Facility will be
interconnected to the Georgia Integrated Transmission System ("GITS") pursuant
to the Interconnection Agreement (the "GPC Interconnection Agreement") with GPC.
The interconnection facilities, which will be designed, procured and constructed
under the EPC Contract, will consist of equipment operating at 500 kV at the
high-side of the step-up transformers, and will include a new 500 kV substation
and modification of the Wansley to Fortson 500 kV transmission line. The GITS
consists of the aggregate of the Georgia transmission assets of GPC, Georgia
Transmission Corporation ("GTC") and two other participants, and was created
through bilateral contracts between GPC on the one hand, and each of the other
three participants on the other hand. The point of interconnection of our
Facility is on a portion of the GITS owned and maintained by GTC.

         WATER AND WASTEWATER ARRANGEMENTS. The Facility will require water
to operate the evaporative coolers of the generators and to operate the Units
on fuel oil. The Lessee will purchase water from the Heard County Water
Authority (the "Water Authority") under the Water Purchase Agreement, dated
as of February 25, 1999 (the "Water Agreement"). The Water Agreement has a
term of 30 years. The Lessee expects that the water in the storage tanks
combined with the 350 gallons per minute of water supplied by the Water
Authority pursuant to the Water Agreement will provide sufficient water to
operate the Units on fuel oil for approximately 160 hours over a two-week
period. A small amount of wastewater will be produced when the evaporative
coolers are used or when fuel oil is fired. Such wastewater will be
discharged into Hilly Mill Creek under the Lessee's wastewater discharge
permit.

         LEASE AGREEMENT. Simultaneously with the issuance of the Bonds, the
Lessee will enter into the Lease Agreement with the Issuer (the "Lease
Agreement"). Under the Lease Agreement, the Issuer will lease the Facility, the
Facility Site and certain related infrastructure facilities and easements to the
Lessee and the Lessee agrees to make rent payments sufficient to pay, when due,
the principal of and interest on the Bonds together with certain other payments
which may be retained by the Issuer or paid by the Issuer to Heard County. In
addition, the Lessee will guarantee the payment obligations of the Issuer on the
Bonds (the "Guaranty").

         AD VALOREM TAX AGREEMENT. The Lessee has entered into the Ad Valorem
Taxation Agreement with the Board of Commissioners of Heard County and the Board
of Tax Assessors of Heard County (the "Tax Agreement"). While the Tax Agreement
is in effect, the Facility will not be subject to ad valorem taxation because it
will be owned by the Authority. However, our leasehold interest will be subject
to ad valorem taxes. The Tax Agreement sets forth how our interest under the
Lease Agreement will be valued before the completion of construction, and for
the 20 year period following the year in which the Facility is completed

                                      C-4

<PAGE>

                                    EXHIBIT D

                                      FORM

                                       OF

                         QUITCLAIM DEED AND BILL OF SALE

                                 by and between

                      DEVELOPMENT AUTHORITY OF HEARD COUNTY

                                       and

                         TENASKA GEORGIA PARTNERS, L.P.

                             Dated ________ 1, 1999

<PAGE>

                         QUITCLAIM DEED AND BILL OF SALE

         This QUITCLAIM DEED AND BILL OF SALE, (the "Deed") dated the date
hereof by and between the DEVELOPMENT AUTHORITY OF HEARD COUNTY (the "Grantor")
and TENASKA GEORGIA PARTNERS, L.P., a limited partnership duly organized and
validly existing under the laws of the State of Delaware and in good standing
under the laws of the State of Georgia, as grantee (the "Grantee"):

                              W I T N E S S E T H:

         WHEREAS, the Grantor and the Grantee have entered into a Lease
Agreement, dated as of November 1, 1999 (the "Lease Agreement") recorded in the
office of the Superior Court of Heard County in Book ____, Page ____; and

         WHEREAS, the Grantor and the Grantee, pursuant to the terms of the
Lease Agreement have agreed to enter into this Deed; and

         WHEREAS, all capitalized terms used herein and not defined herein shall
have the meanings ascribed to them in the Lease Agreement; and

         WHEREAS, the Grantor desires to assign its right, title and interest in
and to the Project to the Grantee and to execute a Quitclaim Deed and Bill of
Sale with respect to all property rights it has in and to the Project;

         NOW THEREFORE, in consideration of the premises and the respective
undertakings and agreements hereinafter set forth, THE GRANTOR HEREBY AGREES AS
FOLLOWS:

         1. The Grantor hereby, with effect as and from the date hereof, grants,
assigns, transfers and conveys to the Grantee, all of its right, title and
interest in, to and under the Project.

         2. The Grantor has such title in and to the Leased Land as disclosed in
the title policy issued by _____________________ dated _________ __, 1999, as
from time to time amended at the request of the Grantee free from all
encumbrances except Permitted Liens described in the Lease Agreement, free of
all claims of all persons whomsoever claiming by, through or under the Grantor.

         3. The Grantee hereby accepts the conveyance of all of the foregoing
rights, title and interest of the Grantor in, to and under the Project.

         4. The Grantor does hereby bargain, sell and convey to the Grantee its
interest, if any, in the Leased Land described in Exhibit "A" hereto and the
Building located thereon and the Leased Equipment located on the Leased Land and
in the Building and being more particularly described in Exhibit "B" hereto,
such property being free from all liens, security interests and encumbrances
from Persons claiming through and under the Grantor other than Permitted Liens
described in the Lease Agreement.

                                      D-2

<PAGE>

         THE GRANTOR AND THE GRANTEE FURTHER AGREE AS FOLLOWS:

         The Grantor, in consideration of the sum of Ten Dollars ($10.00) by it
in hand paid at and before the sealing of these presents (the receipt whereof is
hereby acknowledged), has granted, bargained, sold and released, and by these
presents does grant, bargain, sell and release, unto the said Grantee, its
successors and assigns, whatever right, title, and interest the Grantor does
possess, and does by these presents demise, release, and forever quitclaim unto
the Grantee all of the interest of the Grantor, if any, in and to the Project
including, without limitation, the Leased Land, the Building, and the Leased
Equipment;

         TOGETHER, with all and singular the rights, tenements, hereditaments
and appurtenances to the said Project belonging or in anywise incident or
appertaining.

         TO HAVE AND TO HOLD, all and singular the said premises before
mentioned unto the said Grantee, its successors and assigns forever.

                                      D-3

<PAGE>

         IN WITNESS WHEREOF, the Development Authority of Heard County has
caused these presents to be executed in its name and its corporate seal to be
hereto affixed this ____ day of _____________, 1999.

                                          DEVELOPMENT AUTHORITY OF HEARD COUNTY

                                          By:__________________________________
                                             Chairman

Attest:

-------------------------
Secretary

Signed, Sealed and
Delivered in the

Presence of:

-------------------------
Witness

-------------------------
Notary Public

My Commission Expires:  ____________

(NOTARIAL SEAL)

                                      D-4

<PAGE>

                                    EXHIBIT E

                      FORM OF AMENDMENT TO LEASE AGREEMENT

                                                                     Number____

         This AMENDMENT TO LEASE AGREEMENT, dated as of _________________,
between the DEVELOPMENT AUTHORITY OF HEARD COUNTY (the "Authority"), a public
corporation created and existing under the laws of the State of Georgia, as
Lessor, TENASKA GEORGIA PARTNERS, L.P. (the "Lessee"), a limited partnership
created and existing under the laws of the State of Delaware.

                              W I T N E S S E T H:

         WHEREAS, the Authority and the Lessee have heretofore entered into a
Lease Agreement, dated as of November 1, 1999 (said Lease Agreement, as from
time to time modified or amended, is herein called the "Lease"), relating to
certain Leased Land in Heard County, Georgia (as more fully described
hereinafter as the "Leased Land"); and

         WHEREAS, the Authority and the Lessee have now determined that it is
necessary to amend the Lease in certain respects to reflect the [removal from]
[addition to] the description of the [Leased Land the real property (including
the improvements thereon constituting a part of the Project)] [Leased Equipment,
the items] described in Exhibit "1" hereto; and

         NOW, THEREFORE, in consideration of the premises and of the mutual
covenants hereinafter contained, the Authority and the Lessee agree to and do
hereby amend the Lease to modify the description of the [Leased Land] [Leased
Equipment] contained as Exhibit ["A"] ["B"] attached thereto in order to [remove
therefrom] [add thereto], effective as of the date hereof, the [real property
(including all structures, buildings and other improvements thereon)] [Leased
Equipment, the items] described in Exhibit "1" to this Amendment to Lease
Agreement.

         Section 1. AMENDMENT OF LEASE. The Lease shall be deemed to be modified
and amended in accordance with the provisions of this Amendment to Lease
Agreement and the respective rights, duties and obligations of the Authority and
the Lessee under the Lease shall hereafter be determined, exercised and enforced
under the Lease subject in all respects to this Amendment to Lease Agreement,
and all the terms and conditions of this Amendment to the Lease Agreement shall
be part of the terms and conditions of the Lease for any and all purposes.

         All references in the Lease to the [Leased Land] [Leased Equipment]
described in Exhibit ["A"] ["B"] thereof shall refer to said Exhibit as hereby
amended and modified.

         Section 2. EXECUTION COUNTERPARTS. This Amendment to Lease Agreement
may be simultaneously executed in several counterparts, each of which shall be
an original and all of which shall constitute but one and the same instrument.

<PAGE>

         Section 3. RECORDATION. This Amendment to Lease Agreement may be
recorded in the office of the Superior Court of Heard County, or in such other
office as may be at the time provided by law as the proper place for such
recordation.

         Section 4. LEASE TO CONTINUE IN FULL FORCE AND EFFECT. All other terms
of the Lease shall continue in full force and effect subject to this Amendment
to Lease Agreement as set forth herein.

         IN WITNESS WHEREOF, the Authority and the Lessee have caused this
Amendment to the Lease Agreement to be executed, sealed and delivered in their
respective names by their duly authorized officers as of _________ __, ____.

                                                DEVELOPMENT AUTHORITY OF
                                                HEARD COUNTY

(CORPORATE SEAL)

Attest:                                         By:____________________________
                                                   Chairman

--------------------------
Secretary

Signed, sealed and delivered in the presence of:

--------------------------
Witness

--------------------------
Notary Public

My commission expires:  ______

(NOTARIAL SEAL)

                                      E-2

<PAGE>

                                      TENASKA GEORGIA PARTNERS, L.P.,
                                      a Delaware Limited Partnership

                                      By:   TENASKA GEORGIA, INC., a Delaware
                                            Corporation, its General Partner

[SEAL]

                                            By:________________________________
                                               Name:
                                               Title:

Attest:

--------------------------
Title:

Signed, sealed and delivered in the presence of:

--------------------------
Witness

--------------------------
Notary Public

My commission expires:  ______

(NOTARIAL SEAL)

                                      E-3

<PAGE>

                                    Exhibit 1
                    to Amendment to Lease Agreement (Number )

                                      among
                     DEVELOPMENT AUTHORITY OF HEARD COUNTY,

                                       and
                         TENASKA GEORGIA PARTNERS, L.P.
                          dated as of November 1, 1999

                DESCRIPTION OF [ADDITIONAL] [REMOVED] LEASED LAND
                               [LEASED EQUIPMENT]

<PAGE>

                                    EXHIBIT F

                            AD VALOREM TAX AGREEMENT

                                 [SEE ATTACHED]

         A copy of the Ad Valorem Tax Agreement is a separate file enclosed with
this reqeust

<PAGE>

                                    EXHIBIT G

                    LEASE PAYMENTS TO COUNTY AND ISSUER FEES

<TABLE>
<CAPTION>

YEAR                                               LEASE PAYMENTS TO HEARD COUNTY                  ISSUER FEES(1)
----                                               ------------------------------                ---------------
<S>                                             <C>                                          <C>
1999                                                    $                    0                   $       100,000(2)
2000                                                    $               50,000                   $        25,000
2001                                                    $               50,000                   $        25,000
2002                                                    $               50,000                   $        25,000
2003                                                    $               50,000                   $        25,000
2004                                                    $               50,000                   $        25,000
2005                                                    $              125,000                   $        25,000
2006                                                    $              125,000                   $        25,000
2007                                                    $              125,000                   $        25,000
2008                                                    $              125,000                   $        25,000
2009                                                    $              125,000                   $        25,000
2010                                                    $              165,000                   $        25,000
2011                                                    $              165,000                   $        25,000
2012                                                    $              215,000                   $        25,000
2013                                                    $              215,000                   $        25,000
2014                                                    $              215,000                   $        25,000
2015                                                    $              300,000                   $        25,000
2016                                                    $              300,000                   $        25,000
2017                                                    $              325,000                   $        25,000
2018                                                    $              325,000                   $        25,000
2019                                                    $              325,000                   $        25,000
2020                                                    $              500,000                   $        25,000
2021                                                    $              500,000                   $        25,000
                                                     ------------------------------                ---------------
                                         TOTALS         $            4,425,000                   $       650,000

</TABLE>

--------
1 Represents the Issuer's annual fee.
2 Reflects a one-time $100,000 payment to the Issuer.<PAGE>

                                                                   Exhibit 4.22

  --SPACE ABOVE THIS LINE LEFT INTENTIONALLY BLANK FOR RECORDING INFORMATION--

NOTE TO GEORGIA TAX COMMISSIONER: THIS INSTRUMENT SECURES A BOND ISSUE BY A
PUBLIC AUTHORITY OF THE STATE OF GEORGIA, AND A PUBLIC AUTHORITY OF THE STATE OF
GEORGIA IS A PARTY TO THIS INSTRUMENT. THEREFORE, THIS INSTRUMENT IS NOT SUBJECT
TO INTANGIBLE RECORDING TAX PURSUANT TO CHAPTER 560-11-8-14(1) OF THE RULES OF
THE DEPARTMENT OF REVENUE, PROPERTY TAX DIVISION

After recording,
please return to:

         KING & SPALDING
         191 Peachtree Street
         Atlanta, Georgia  30303-1763
         Attn:  Ruth T. West

This instrument prepared by the above-named attorney

STATE OF GEORGIA
HEARD COUNTY

                              DEED TO SECURE DEBT,
              SECURITY AGREEMENT AND ASSIGNMENT OF RENTS AND LEASES

         THIS DEED TO SECURE DEBT, SECURITY AGREEMENT AND ASSIGNMENT OF RENTS
AND LEASES (the "Security Deed"), made and given as of this 1st day of November,
1999, by the DEVELOPMENT AUTHORITY OF HEARD COUNTY, a public body corporate and
politic having its principal place of business in Franklin, Georgia (herein
called "Grantor") in favor of THE CHASE MANHATTAN BANK, a New York banking
corporation having its principal corporate trust office in New York, New York,
not individually, but solely in

<PAGE>

its capacity as Trustee under the Indenture (as hereafter defined) (together
with its permitted successors and assigns, the "Grantee"), whose address is 450
West 33rd Street, 15th Floor, New York, New York 10001, Attention: Capital
Markets Fiduciary Services;

                              W I T N E S S E T H :

         WHEREAS, the Grantor has been created pursuant to an act of the General
Assembly of the State of Georgia (O.C.G.A. Section 36-62, ET SEQ.), as amended
(the "Act"), and an activating resolution of the Board of Commissioners of Heard
County, adopted on January 3, 1972, the Grantor has been activated as required
by the terms of the Act, its directors have been appointed as provided therein
and are currently acting in that capacity and a copy of said activating
resolution has been filed with the Secretary of State of the State of Georgia as
required by law; and

         WHEREAS, the Grantor has been created to develop and promote for the
public good and general welfare trade, commerce, industry and employment
opportunities and to promote the general welfare of the State of Georgia; the
Act empowers the Grantor to issue its revenue obligations, in accordance with
the applicable provisions of the Revenue Bond Law of the State of Georgia
(O.C.G.A. Sections 36-82-60 to 36-82-85), as heretofore and hereafter amended,
for -the purpose of acquiring, constructing and installing any "project" (as
defined in the Act) for lease or sale to prospective tenants or purchasers in
furtherance of the public purpose for which it was created; and

         WHEREAS, after careful study and investigation, the Grantor, in
furtherance of the public purpose for which it was created and pursuant to an
authorizing resolution, has entered into a Lease Agreement of even date herewith
(as the same may be amended from time to time in accordance with its terms, the
"Lease"), with Tenaska Georgia Partners, L.P., a limited partnership organized
and existing under the laws of the State of Delaware ("Lessee"); and

         WHEREAS, to obtain funds to finance in part, the acquisition,
construction, installation and equipping of an approximately 936 megawatt
natural gas fired (with oil as the backup fuel) electric power generation
facility, consisting of 6 F-class simple cycle combustion turbine engines in
Heard County, Georgia owned by the Grantor and leased to and operated by the
Lessee (the "Project"), the Grantor will issue its Taxable Industrial
Development Revenue Bonds (Tenaska Georgia Partners, L.P. Project), Series 1999
(the "Bonds") pursuant to an Indenture of Trust dated as of November 1, 1999 (as
the same may be supplemented and amended from time to time, the "Indenture")
between the Grantor and The Chase Manhattan Bank as Trustee (the "Trustee") in
the aggregate principal amount of not to exceed $400,000,000 in substantially
the form, bearing interest at the rates and maturing on the dates set forth in
the Indenture; and

         WHEREAS, in connection with the commencement of commercial operation of
the Project, the Lessee is required to deliver the Debt Service Reserve Letter
of Credit (the "DSR Letter of Credit") and The Toronto-Dominion Bank
("Toronto-Dominion"), as issuing bank, has agreed to issue the DSR Letter of
Credit subject to the terms and conditions contained in the Debt Service Reserve
Letter of Credit and Reimbursement Agreement, dated as of November 1, 1999,
among each of the banks and financial institutions parties thereto and
Toronto-Dominion,

                                      -2-
<PAGE>

as issuing bank and as agent for such banks and financial institutions (in such
capacity as agent, and together with its successors and assigns, the "DSR LOC
Provider");

         WHEREAS, in connection with the Lessee's obligations under the Power
Purchase Agreement (as defined in the Common Agreement hereafter referred to),
the Lessee may deliver the PPA Letter of Credit (the "PPA LOC") and
Toronto-Dominion, as issuing bank, has agreed to issue the PPA LOC subject to
the terms and conditions contained in the PPA Letter of Credit and Reimbursement
Agreement, dated as of November 1, 1999, among each of the banks and financial
institutions parties thereto and Toronto-Dominion, as issuing bank and as agent
for such banks and financial institutions (in such capacity as agent, and
together with its successors and assigns, the "PPA LOC Provider");

         WHEREAS, the Lessee may finance certain working capital requirements of
the Project by entering into a working capital agreement with a financial
institution for the provision of credit to the Lessee (such financial
institution, the "Working Capital Provider" and, together with the DSR LOC
Provider and the PPA LOC Provider, the "Senior Parties"); and

         WHEREAS, the Lessee, as purchaser of the Bonds, has agreed to pledge
the Bonds to The Chase Manhattan Bank, as Collateral Agent (the "Collateral
Agent") pursuant to a Partnership Assignment and Security Agreement dated as of
November 1, 1999 (as amended from time to time in accordance with its terms, the
"Partnership Assignment and Security Agreement") as security for its obligations
to the Senior Parties under the Financing Documents (as defined in the Common
Agreement hereinafter referred to); and

         WHEREAS, the Lessee, the Collateral Agent, the Trustee and the Senior
Parties have entered into a Collateral Agency and Intercreditor Agreement, dated
as of November 1, 1999 (as amended from time to time in accordance with its
terms, the "Collateral Agency Agreement") to set forth the rights of the Lessee
and the Senior Parties as to the Collateral (as defined therein); and

         WHEREAS, the Lessee, the Collateral Agent and the Senior Parties have
entered into an Agreement as to Certain Undertakings, Common Representations,
Warranties, Covenants and Other Terms dated as of November 1, 1999 (as amended
from time to time in accordance with its terms, the "Common Agreement") which
sets forth certain representations, warranties and covenants of the Lessee
relating to the Project; and

         WHEREAS, the Grantor, as security for the payment of the Bonds, will
assign and pledge all of its rights, title, interest and remedies in and under
the Lease Agreement, except certain rights reserved by the Grantor under the
terms of the Indenture, together with the Lease Agreement itself, and all
amounts on deposit from time to time in the "Bond Fund" established under the
Indenture and, to the extent such amounts represent proceeds of the Bonds, the
"Construction Fund" established under the Collateral Agency Agreement, to the
Grantee, as Trustee, under the terms of the Indenture; and

         WHEREAS, the Grantor has further agreed under the terms of the
Indenture to convey to the Trustee title to, and to grant to the Trustee a
security interest in, the Project as additional

                                      -3-
<PAGE>

security for the indebtedness evidenced by the Bonds and all leases and rents
related thereto, all as more fully set forth in the Indenture, and, by this
reference thereto, the Indenture is incorporated herein and made a part hereof;
and

         NOW THEREFORE, FOR AND IN CONSIDERATION of the sum of TEN AND NO/100
DOLLARS ($10.00) and other valuable consideration, the receipt and sufficiency
whereof are hereby acknowledged, and in order to secure (i) the indebtedness of
Grantor hereinafter set forth, (ii) all amounts, sums and expenses paid
hereunder by Grantee according to the terms hereof and (iii) all other
obligations and liabilities of Grantor hereunder, together with interest on the
said indebtedness, obligations, liabilities, amounts, sums and expenses (all of
the aforesaid are hereinafter collectively referred to as the "Indebtedness"),
Grantor hereby grants, bargains, sells, warrants, conveys, aliens, remises,
releases, assigns, sets over and confirms to Grantee and the successors and
assigns of Grantee all of the following described land and interests in land,
estates, easements, tenements, rights, improvements, property, fixtures,
machinery and equipment:

         ALL THOSE CERTAIN lot(s), piece(s) or parcel(s) of land described in
EXHIBIT A attached hereto and by this reference incorporated herein and made a
part hereof;

         TOGETHER WITH the buildings, structures and improvements now or
hereafter located on said land described in EXHIBIT A hereto and all right,
title and interest, if any, of Grantor in and to the streets and roads abutting
said land to the center lines thereof, the strips and gores within or adjoining
said land, the air space and right to use said air space above said land, all
rights of ingress and egress by pedestrians and motor vehicles to parking
facilities on or within said land, and all easements now or hereafter affecting
said land, royalties and all rights appertaining to the use and enjoyment of
said land, including, without limitation, alley, drainage, sewer, mineral,
water, oil and gas rights, rights-of-way, vaults, ways, passages, water courses,
water rights and powers, and all estates, rights, titles, interests, privileges,
liberties, tenements, hereditaments and appurtenances whatsoever, in any way
belonging, relating or appertaining to the land or any part thereof, or which
hereafter shall in any way belong, relate or be appurtenant thereto, whether now
owned or hereafter acquired by Grantor and the reversion and reversions,
remainder and remainders (said land described in EXHIBIT A hereto, together with
said buildings and improvements, the property and other rights, privileges and
interests encumbered and conveyed hereby, are hereinafter collectively referred
to as the "Premises");

         TOGETHER WITH all right, title, and interest now held or hereafter
acquired by Grantor in and to all fixtures and articles of personal property
acquired with the proceeds of the Bonds and owed by the Grantor and all
appurtenances and additions thereto and substitutions or replacements thereof,
now or hereafter attached to, contained in, used or intended to be incorporated
in or used or placed upon any part of the adjacent land and easements described
in EXHIBIT B hereto (the Premises, together with such easements and other title
exceptions described on EXHIBIT B, the "Project Site") which Project Site itself
shall not be deemed to be a part of the Premises, including, but not limited to,
all building materials, screens, awnings, shades, blinds, curtains, draperies,
carpets, rugs, furniture and furnishings, heating, lighting, plumbing,
ventilating, air conditioning, refrigerating, incinerating and elevator plants,
stoves, ovens (microwave, convection and others), refrigerators, freezers,
ranges, shelving, racks, vacuum

                                      -4-
<PAGE>

cleaning systems, call systems, sprinkler systems and other fire prevention and
extinguishing apparatus and materials, motors, machinery, pipes, appliances,
equipment, gasoline pumps, petroleum storage facilities, fittings, fixtures and
articles of personal property all of which are hereby declared and shall be
deemed to be fixtures and accessions to the freehold and a part of the Premises
as between the parties hereto and all persons claiming by, through or under
them, and which shall be deemed to be a portion of the security for the
Indebtedness secured by this Security Deed, and all accounts receivable,
inventory, trade names, trademarks, tradestyles, service marks, copyrights,
service contracts, computers and computer software, telephone equipment and
systems, warranties, guarantees, business and building licenses and permits,
architects' and engineers' plans, blueprints and drawings, good will and books
and records relating to the business operated on the Premises; together with all
proceeds of all of the foregoing; together with all of Grantor's present and
future "equipment," "contract rights," "accounts" and "general intangibles" (as
said quoted terms are defined in the Georgia Uniform Commercial Code) (the
Premises and said fixtures and articles of personal property and said
"equipment," "contract rights," "accounts" and "general intangibles" and
proceeds encumbered and conveyed hereby are hereinafter sometimes called the
"Secured Property") and Grantee shall have, in addition to all rights and
remedies provided herein, and in any other agreements, commitments and
undertakings made by Grantor to Grantee, all of the rights and remedies of a
"secured party" under the said Uniform Commercial Code; and if the lien of this
Security Deed is subject to a security interest or lease covering any such
personal property, then together with all of the right, title and interest of
Grantor in and to any and all such property, together with the benefits of all
deposits and payments now or hereafter made thereon by Grantor; provided,
however, there shall be excluded from this granting clause any personal
property, inventory, and trade fixtures, accounts, contract rights and general
intangibles owned by any tenant (other than by Grantor or an affiliate of
Grantor and other than any personal property, inventory or fixtures leased to
any such tenant by Grantor or an affiliate of Grantor as lessor) occupying the
Premises and sold or used by such tenant, to the extent that the same does not
become the property of Grantor as landlord under the lease with such tenant or
pursuant to applicable law;

         TOGETHER WITH all leases, lettings and licenses of the Premises or any
part thereof now or hereafter entered into and all right, title and interest of
Grantor thereunder, including specifically but without limitation the Lease
Agreement (the "Lease"), and the rents, issues, profits, accounts receivable and
revenues of the Premises from time to time accruing (including without
limitation all payments under leases or tenancies, tenant security deposits and
escrow funds), and all the estate, right, title, interest, property, possession,
claim and demand whatsoever at law, as well as in equity, of Grantor of, in and
to the same and including, without limitation, the right to receive and collect
the rents, issues and profits payable thereunder;

         TOGETHER WITH any and all right, title and interest of the Grantor in
and to (i) all modifications, extensions, and renewals of the Lease and all
options and rights to renew or extend the same, including, but not limited to,
all purchase options contained in the Lease; (ii) all options and rights to
purchase or of first refusal with respect to the Premises, or any part thereof,
including, but not limited to, the options and rights contained in the Lease;
and (iii) all other, further or additional title, estates, options, privileges,
interest or rights which the Grantor may now or hereafter acquire in and to the
Premises and the Lease;

                                      -5-
<PAGE>

         TOGETHER WITH all unearned premiums, accrued, accruing or to accrue
under insurance policies now or hereafter obtained by Grantor and all proceeds
of the conversion, voluntary or involuntary, of the Secured Property or any part
thereof into cash or liquidated claims, including, without limitation, proceeds
of hazard and title insurance and all awards and compensation heretofore and
hereafter made to the present and all subsequent owners of the Secured Property
by any governmental or other lawful authorities for the taking by eminent
domain, condemnation or otherwise, of all or any part of the Secured Property or
any easement therein, including awards for any change of grade of streets;

         TOGETHER WITH all right, title and interest of Grantor in and to all
extensions, improvements, betterments, renewals, substitutes and replacements
of, and all additions and appurtenances to, the Secured Property, hereafter
acquired by, or released to, Grantor, or constructed, assembled or placed by
Grantor or by others for Grantor's benefit on the Secured Property, and all
conversions of the security constituted thereby, immediately upon such
acquisition, release, construction, assembling, placement or conversion, as the
case may be, and in each such case, without any further conveyance, assignment
or other act by Grantor, shall become subject to the lien of this Security Deed
as fully and completely, and with the same effect, as though now owned by
Grantor and specifically described herein.

         TO HAVE AND TO HOLD the Secured Property and all parts, rights, members
and appurtenances thereof, to the use, benefit and behoof of Grantee, its
successors and assigns, IN FEE SIMPLE forever.

         THIS CONVEYANCE is intended to operate and is to be construed as a deed
passing title to the Secured Property to Grantee and is made under those
provisions of the existing laws of the State of Georgia relating to deeds to
secure debt, and not as a mortgage, and is given to secure the following
described indebtedness liabilities and obligations:

         (a) The debt evidenced by the Bonds in an aggregate principal amount of
not to exceed FOUR HUNDRED MILLION DOLLARS ($400,000,000) outstanding at any
time with the final payment being due on February 1, 2030, together with any and
all renewal or renewals, modification or modifications and extension or
extensions of the Indebtedness evidenced thereby, and together with any and all
accrued and unpaid interest which may be added to the principal of the Bonds in
accordance with their terms;

         (b) Any and all additional advances made by Grantee to protect or
preserve the Secured Property or the lien thereof on the Secured Property or to
pay taxes, to pay premiums on insurance on the Secured Property, or to repair or
maintain the Secured Property, or to complete improvements on the Secured
Property (whether or not the original Grantor remains the owner of the Secured
Property at the time of such advances, and whether or not the original Grantee
remains the owner of the Indebtedness and this instrument);

         (c) Any and all expenses incident to the collection of the Indebtedness
secured hereby, the foreclosure hereof by action in any court, or by exercise of
the power of sale herein contained; and

                                      -6-

<PAGE>
         (d) The full and prompt payment and performance of any and all
obligations or covenants of Grantor to Grantee under the terms of any other
agreements, assignments or other instruments now or hereafter evidencing,
securing or otherwise relating to the Indebtedness evidenced by the Bonds,
including without limitation, the Lease Agreement, the Indenture and any
assignment of rents and leases given by Grantor to Grantee (any and all other
such agreements, assignments and other instruments together with the Bonds and
this Security Deed, are herein collectively called the "Bond Documents").

         Should the Indebtedness secured by this Security Deed be paid according
to the tenor and effect thereof when the same shall become due and payable, and
should Grantor perform all covenants herein contained in a timely manner, then
this Security Deed shall be canceled and surrendered.

         AND Grantor covenants and agrees with Grantee as follows:

                                   ARTICLE I
                              Covenants of Grantor

         Section 1.01. PAYMENT OF THE INDEBTEDNESS. Grantor shall punctually pay
the Indebtedness as provided herein and in the Indenture, the Bonds and the
Lease Agreement all in the coin and currency of the United States of America
which is legal tender for the payment of public and private debts.

         Section 1.02. TITLE TO THE SECURED PROPERTY. Grantor warrants that: (i)
it has title to the Secured Property identified in EXHIBIT A subject only to the
encumbrances ("Permitted Encumbrances") enumerated on EXHIBIT C attached hereto
and by this reference incorporated herein and made a part hereof; (ii) it has
full power and lawful authority to encumber the Secured Property in the manner
and form herein set forth; (iii) it owns or leases or will own or lease all
fixtures and articles of personal property now or hereafter affixed and/or used
in connection with the Premises, which was constructed or purchased with the
proceeds of the Indebtedness, including any substitutions or replacements
thereof, free and clear of liens, security interests and claims, subject only to
Permitted Encumbrances; (iv) this Security Deed is and will remain a valid and
enforceable security title, security interest and lien on the Secured Property;
and (v) it will preserve such title, and will forever warrant and defend the
same to Grantee and will forever warrant and defend the validity and priority of
the lien hereof against the claims of all persons and parties whomsoever, except
only for the Permitted Encumbrances.

         Section 1.03. MAINTENANCE OF THE SECURED PROPERTY. Grantor shall
maintain the Secured Property in good repair and, subject to the right to
contest certain governmental actions specifically provided herein, shall comply
with the requirements of any governmental authority claiming jurisdiction over
the Secured Property. Grantor shall permit Grantee to enter upon the Premises
and inspect the Secured Property at all reasonable hours and without prior
notice. Grantor shall not, without the prior written consent of the Grantee,
threaten, commit, permit or suffer to occur any waste, material alteration or
demolition or removal of

                                      -7-
<PAGE>

any material portion of the Secured Property unless otherwise permitted under
the Financing Documents (as defined in the Common Agreement); provided, however,
that fixtures and articles of personal property constituting Secured Property
may be removed from the Premises unless prohibited by the Lease Agreement.

         Section 1.04. INSURANCE; RESTORATION.

         (a) Until the Indebtedness shall have been paid in full and until
Grantor shall have performed all covenants herein contained, Grantor shall
maintain or cause to be maintained and keep in full force and effect the
following types and kinds of insurance with respect to the Secured Property (as
now or hereafter constituted) and Grantor's ownership, operation and management
thereof: (i) casualty insurance against all risks of physical loss for the full
insurable value thereof without deduction for depreciation or coinsurance, but
in no event less than the principal amount of the Indebtedness; (ii) use and
occupancy insurance in an amount satisfactory to Grantee covering either rental
income or business interruption, whichever may be applicable; and (iii)
comprehensive general liability insurance in an amount satisfactory to Grantee.
Deductible amounts from the coverages afforded by such policies shall not exceed
limits approved by Grantee. In addition, Grantee may require Grantor to carry
such other insurance on the buildings and improvements now or hereafter located
within the Premises, in such amounts as may from time to time be reasonably
required by institutional lenders, against insurable casualties (including risks
of war, nuclear explosion, earthquake, including subsidence, and contingent
liability from operation of any building laws or codes pertaining to
non-conforming property) which at the time are commonly insured against in the
case of premises similarly situated, due regard being given to the site and the
type of the building, the construction, location, utilities and occupancy or any
replacements or substitutions therefor. Grantor shall additionally keep the
buildings, improvements and equipment located therein and thereon now or
hereafter located on the Premises insured against loss by flood (including
surface waters) if the Premises are located in an area identified by the
Secretary of Housing and Urban Development as an area having special flood
hazards and in which flood insurance has been made available under the National
Flood Insurance Act of 1968 (and any successor act thereto) in an amount at
least equal to the outstanding Indebtedness or the maximum limit of coverage
available with respect to the buildings under said Act, whichever is less. In
addition, from time to time, upon the occurrence of any material change in the
use, operation or value of the Premises, or in the availability of insurance in
the area in which the Premises are located, Grantor shall, within five (5) days
after demand by Grantee, take out such additional amounts and/or such other
kinds of insurance as Grantee may reasonably require. Notwithstanding the
foregoing, maintenance of the insurance requirements under the Common Agreement
shall be deemed to satisfy the insurance requirements hereof. Grantor shall
cause the Collateral Agent, as agent for the Grantee, to be named as loss payee
or additional insured with respect to such policies and shall deliver a
certificate of insurance as evidence of such insurance to Grantee. The proceeds
of insurance paid on account of any damage or destruction to the Premises or any
part thereof shall be paid over to the Collateral Agent to be applied in
accordance with the Collateral Agency Agreement.

                                      -8-
<PAGE>

         (b) Each insurance company is hereby authorized and directed to make
payment for all such losses directly and solely to the Collateral Agent, as
agent for the Grantee, instead of to Grantor and Grantee, jointly. In the event
any insurance company fails to disburse directly and solely to the Collateral
Agent, as agent for the Grantee, but disburses instead either solely to Grantor
or to Grantor and Grantee, jointly, Grantor shall immediately endorse and
transfer such proceeds to the Collateral Agent, as agent for the Grantee. Upon
Grantor's failure to do so, the Collateral Agent, as agent for the Grantee, may
execute such endorsements or transfers for and in the name of Grantor and
Grantor hereby irrevocably appoints the Collateral Agent, as agent for the
Grantee, as Grantor's agent and attorney in fact so to do. Neither the Grantee
nor the Collateral Agent shall be held responsible for any failure to collect
any insurance proceeds due under the terms of any policy regardless of the cause
of such failure.

         (c) In the event of the foreclosure of this Security Deed or any other
transfer of title to the Premises in full or partial extinguishment of the
Indebtedness, all right, title and interest of Grantor in and to all insurance
policies then in force shall pass to the purchaser or Collateral Agent, as agent
for the Grantee.

         Section 1.05. MAINTENANCE OF EXISTENCE. Grantor shall, so long as it is
the owner of the Secured Property, do all things necessary to preserve and keep
in full force and effect its existence, franchises, rights and privileges under
the laws of the State of Georgia and comply with all regulations, rules,
ordinances, statutes, orders and decrees of any governmental authority or court
applicable to Grantor or to the Secured Property or any part thereof except
where the failure to so comply would not have a Materially Adverse Effect (as
such term is defined in the Common Agreement.

         Section 1.06. TAXES AND OTHER CHARGES. Unless otherwise being contested
by Lessee under the terms and conditions set forth in the Common Agreement,
Grantor shall pay and discharge when due all taxes of every kind and nature,
water rates, sewer rents and assessments, levies, permits, inspection and
license fees and all other charges imposed upon or assessed against the Secured
Property or any part thereof or upon the revenues, rents, issues, income and
profits of the Premises or arising in respect of the occupancy, uses or
possession thereof. Should Grantor default in the payment of any of the
foregoing taxes, assessments, water rates, sewer rents, or other charges,
Grantee may, but shall not be obligated to, pay the same or any part thereof,
and amounts so paid shall be secured by this Security Deed, and Grantor shall,
on demand, reimburse Grantee for all amounts so paid.

         Section 1.07. MECHANICS' AND OTHER LIENS. Unless otherwise being
contested by Lessee under the terms and conditions set forth in the Common
Agreement, Grantor shall pay, from time to time when the same shall become due,
all lawful claims and demands of mechanics, materialmen, laborers, and others
which, if unpaid, might result in, or permit the creation of, a lien or claim of
lien on the Secured Property or any part thereof, or on the revenues, rents,
issues, income or profits arising therefrom. In the event Grantor fails to make
payment of such claims and demands, Grantee may, but shall not be obligated to,
make payment thereof, all sums so expended shall be secured by this Security
Deed, and Grantor shall, on demand, reimburse Grantee for all sums so expended.

                                      -9-
<PAGE>

         Section 1.08. CONDEMNATION AWARDS. Any awards and compensation for
condemnation or other taking or purchase in lieu thereof, of the Premises or any
part thereof, shall be applied and disbursed in accordance with the Collateral
Agency Agreement.

         Section 1.09. SECURITY DEED AUTHORIZED. Grantor hereby warrants and
represents that: the execution and delivery of this Security Deed, the Lease
Agreement and the Bonds have been duly authorized and that there is no provision
in its activating resolution or articles or certificate of incorporation or
by-laws, as applicable, as same may have been amended, requiring further consent
for such action by any other entity or person; it is duly organized, validly
existing and in good standing under the laws of the State of Georgia and has (a)
all necessary licenses, authorizations, registrations and approvals and (b) full
power and authority to own its properties and carry on its business as presently
conducted; and the execution and delivery by and performance of its obligations
under this Security Deed, the Lease Agreement and the Bonds will not result in
Grantor being in default under any provision of its activating resolution or
articles or certificate of incorporation or by-laws, as applicable, as the same
may have been amended, or of any other note, security deed, mortgage, deed of
trust or security, credit or other agreement to which it is a party.

         Section 1.10. COSTS OF DEFENDING AND UPHOLDING THE LIEN. If any action
or proceeding is commenced to which action or proceeding Grantee or the
Collateral Agent or its assignee is made a party or in which it becomes
necessary to defend or uphold the lien of this Security Deed (other than actions
or proceedings caused solely by Grantee's or the Collateral Agent's or its
assignee's gross negligence or willful misconduct) Grantor shall, on demand,
reimburse Grantee or the Collateral Agent, or their respective assignees, as
applicable, for all reasonable expenses (including, without limitation,
reasonable attorneys' fees and appellate attorneys' fees) actually incurred by
Grantee or the Collateral Agent, or their respective assignees, as applicable,
in any such action or proceeding and all such expenses shall be secured by this
Security Deed.

         Section 1.11. COSTS OF ENFORCEMENT. Grantor agrees to bear and pay all
reasonable expenses (including reasonable attorneys' fees and appellate
attorneys' fees actually incurred) of or incidental to the perfection and
enforcement of any provision hereof, or the enforcement, compromise or
settlement of this Security Deed, and for the curing thereof, or for defending
or asserting the rights and claims of Grantee or the Collateral Agent in respect
thereof, by litigation or otherwise. All rights and remedies of Grantee and the
Collateral Agent shall be cumulative and may be exercised singly or
concurrently. Notwithstanding anything herein contained to the contrary,
Grantor: (a) will not (i) at any time insist upon, or plead, or in any manner
whatever claim or take any benefit or advantage of any stay or extension or
moratorium law, any exemption from execution or sale of the Secured Property or
any part thereof, wherever enacted, now or at any time hereafter in force, which
may affect the covenants and terms of performance of this Security Deed, nor
(ii) claim, take or insist upon any benefit or advantage of any law now or
hereafter in force providing for the valuation or appraisal of the Secured
Property, or any part thereof, prior to any sale or sales thereof which may be
made pursuant to any provision herein, or pursuant to the decree, judgment or
order of

                                      -10-
<PAGE>

any court of competent jurisdiction, nor (iii) after any such sale or sales,
claim or exercise any right under any statute heretofore or hereafter enacted to
redeem the property so sold or any part thereof; (b) hereby expressly waives all
benefit or advantage of any such law or laws; and (c) covenants not to hinder,
delay or impede the execution of any power herein granted or delegated to
Grantee or the Collateral Agent, but to suffer and permit the execution of every
power as though no such law or laws had been made or enacted. Grantor, for
itself and all who may claim under it, waives, to the extent that it lawfully
may, all right to have the Secured Property marshalled upon any foreclosure
hereof.

         Section 1.12. BOOKS AND RECORDS. Grantor shall permit Grantee and its
assigns and designees to examine the records, books and papers of Grantor which
reflect upon its financial condition and the income and expenses relative to the
Premises and the business conducted thereat at the times and upon the conditions
set forth in Section 8.2 of the Lease Agreement.

         Section 1.13. ADDITIONAL COVENANTS.

         (a) Except as otherwise permitted in accordance with the Financing
Documents, without the prior written consent of Grantee, Grantor shall not: (i)
execute or permit to exist any lease of all or any portion of the Premises; (ii)
modify or vary, surrender, cancel or terminate, either orally or in writing, any
lease affecting the Premises; (iii) execute any conditional bill of sale,
chattel mortgage, security agreement or other security instruments covering any
furniture, furnishings, fixtures and equipment, intended to be incorporated in
the Premises or the appurtenances thereto, or covering articles of personal
property placed in the Premises, or purchase any of such furniture, furnishings,
fixtures and equipment so that ownership of the same will not vest
unconditionally in Grantor, free from encumbrances on delivery to the Premises,
provided, however, that Grantor may incur Permitted Liens (as such term is
defined in the Common Agreement); (iv) further assign the leases and rents
affecting the Premises; (v) further encumber, alienate, hypothecate, grant a
security interest in or grant any other interest whatsoever in the Secured
Property, or any part thereof; or (vi) enter into any agreement whereby the
holder of any prior or subordinate mortgage, deed of trust or deed to secure
debt, waives, extends or modifies any of the terms of such prior or subordinate
security instrument.

         (b) Except as otherwise permitted in accordance with the Financing
Documents, without the prior written consent of Grantee, Grantor shall not (i)
sell, lease, exchange, assign, convey, transfer or otherwise dispose of (or
enter into any agreement to do so), the Secured Property or any part thereof or
any interest therein, including, without limitation, the leases, rents or income
thereof, or (ii) grant or permit to exist any other mortgage, deed to secure
debt, deed of trust, security agreement or other lien, security interest, charge
or encumbrance against the Secured Property or any part thereof or any interest
therein, including, without limitation, the leases, rents or income thereof,
whether superior or inferior to this Security Deed, except for Permitted Liens
(as such term is defined in the Common Agreement).

         Section 1.14. ESTOPPEL CERTIFICATES. Grantor, within three (3) days
upon request in person or within five (5) days upon request by mail, shall
furnish to Grantee a written

                                      -11-
<PAGE>

statement, duly acknowledged, setting forth the amount due under this Security
Deed, the terms of payment and maturity date of the Bonds, the date to which
interest has been paid, whether any offsets or defenses exist against the
Indebtedness and, if any are alleged to exist, the nature thereof shall be set
forth in detail.

         Section 1.15. ASSIGNMENT OF RENTS. Grantor hereby assigns to Grantee,
as further security for the payment of the Indebtedness, the rents, issues and
profits of the Premises, together with all leases and other documents evidencing
such rents, issues and profits now or hereafter in effect and any and all
deposits held as security under said leases. Nothing contained in the foregoing
sentence shall be construed to bind Grantee to the performance of any of the
covenants, conditions or provisions contained in any such lease or other
document or otherwise to impose any obligation on Grantee (including, without
limitation, any liability under the covenant of quiet enjoyment contained in any
lease or in any law of any applicable state in the event that any tenant shall
have been joined as a party defendant in any action to foreclose this Security
Deed and shall have been barred and foreclosed thereby of all right, title and
interest and equity of redemption in the Premises), except that Grantee shall be
accountable for any money actually received pursuant to such assignment.
Following the occurrence and during the continuation of an Event of Default,
Grantor hereby further grants to Grantee the right (to be exercised in
accordance with the Security Documents) (i) to enter upon and take possession of
the Premises for the purpose of collecting the said rents, issues and profits,
(ii) to dispossess by the usual summary proceedings any tenant defaulting in the
payment thereof to Grantee, (iii) to let the Premises, or any part thereof, and
(iv) to apply said rents, issues and profits, after payment of all necessary
charges and expenses, on account of said Indebtedness. Such assignment and grant
shall continue in effect until the Indebtedness is paid, the execution of this
Security Deed constituting and evidencing the irrevocable consent of Grantor to
the entry upon and taking possession of the Premises by Grantee pursuant to such
grant, whether foreclosure has been instituted or not and without applying for a
receiver. Until the occurrence of an Event of Default, Grantor shall be entitled
to collect and receive said rents, issues and profits. Such right of Grantor to
collect and receive such rents, issues and profits may be revoked by Grantee
upon the occurrence of an Event of Default by giving written notice of such
revocation, served personally upon or sent by registered or certified mail to
the record owner of the Premises. In the event Grantor has executed a separate
assignment of rents and leases, then the provisions of such separate assignment
shall supersede the provisions of this Section.

         Section 1.16. LEASES AND OTHER AGREEMENTS AFFECTING SECURED PROPERTY.
Grantor will duly and punctually perform all terms, covenants, conditions and
agreements binding upon it under any lease or any other agreement of any nature
whatsoever which involves or affects the Secured Property or any part thereof.
Grantor will, at the request of Grantee, furnish Grantee with executed copies of
all leases now or hereafter created upon the Secured Property or any part
thereof.

                                      -12-
<PAGE>

         Section 1.17. SECURITY AGREEMENT.

         (a) Insofar as the machinery, apparatus, equipment, fittings, fixtures,
building supplies and materials, articles of personal property, contract rights,
accounts and general intangibles either referred to or described in this
Security Deed, or in any way connected with the use and enjoyment of the Secured
Property is concerned (other than the personal property expressly excluded
pursuant to the granting clauses hereof) this Security Deed is hereby made and
declared to be a security agreement, encumbering each and every item of personal
property included herein, in compliance with the provisions of the Uniform
Commercial Code as enacted in the State of Georgia. A financing statement or
statements reciting this Security Deed to be a security agreement, affecting all
of said personal property aforementioned, shall be executed by Grantor and
appropriately filed. The remedies for any violation of the covenants, terms and
conditions of the security agreement herein contained shall be (i) as prescribed
herein, or (ii) as prescribed by general law, or (iii) as prescribed by the
specific statutory consequences now or hereafter enacted and specified in said
Uniform Commercial Code, all at Grantee's sole election. Grantor and Grantee
agree that the filing of such financing statement(s) in the records normally
having to do with personal property shall never be construed as in anywise
derogating from or impairing this declaration and hereby stated intention of
Grantor and Grantee that everything used in connection with the production of
income from the Secured Property and/or adapted for use therein and/or which is
described or reflected in this Security Deed, is, and at all times and for all
purposes and in all proceedings both legal or equitable shall be, regarded as
part of the real estate irrespective of whether (a) any such item is physically
attached to the Premises, (b) serial numbers are used for the better
identification of certain items capable of being thus identified in a recital
contained herein, or (c) any such item is referred to or reflected in any such
financing statement(s) so filed at any time. Similarly, the mention in any such
financing statement(s) of the rights in and to (aa) the proceeds of any fire,
casualty and/or hazard insurance policy, or (bb) any award in condemnation
proceedings for a taking or for loss of value, or (cc) Grantor's interest as
lessor in any present or future lease or rights to income growing out of the use
and/or occupancy of the Secured Property, whether pursuant to lease or
otherwise, shall never be construed as in anywise altering any of the rights of
Grantee as determined by this instrument or impugning the priority of Grantee's
lien granted hereby or by any other recorded document, but such mention in such
financing statement(s) is declared to be for the protection of Grantee in the
event any court shall at any time hold with respect to the foregoing (aa), (bb)
or (cc), that notice of Grantee's priority of interest to be effective against a
particular class of persons, must be filed in the Uniform Commercial Code
records.

         (b) Grantor shall execute and deliver to Grantee, in form and substance
satisfactory to Grantee, such "financing statements," real estate and related
notice filing and such further assurances as Grantee may from time to time
reasonably consider necessary to create, perfect and preserve Grantee's security
interest herein granted, and Grantee may cause such statements and assurances to
be recorded and filed at such times and places as may be required or permitted
by law to so create, perfect and preserve such security interest.

                                      -13-
<PAGE>

         (c) The assignment and security interest herein granted shall not be
deemed or construed to constitute Grantee as a "trustee in possession" of the
Secured Property, to obligate Grantee to lease the Secured Property or attempt
to do same, or to take any action, incur any expense or perform or discharge any
obligation, duty or liability whatsoever under any of the leases or otherwise.

                                   ARTICLE II
                              Default and Remedies

         Section 2.01. EVENTS OF DEFAULT. The occurrence and continuation of a
"Trigger Event" under the Collateral Agency Agreement, as such term is defined
therein, shall constitute an Event of Default under this Security Deed.

         Section 2.02. REMEDIES.

         (a) Upon the occurrence of any Event of Default, Grantee may, with the
consent of the Collateral Agent, and shall, at the direction of the Collateral
Agent, take such action, without notice or demand, as it deems advisable to
protect and enforce its rights against Grantor and in and to the Secured
Property, including, but not limited to, the following actions, each of which
may be pursued concurrently or otherwise, at such time and in such order as the
Collateral Agent, as agent for the Grantee, may determine, in its sole
discretion, without impairing or otherwise affecting the other rights and
remedies of Grantee: (1) declare the entire unpaid Indebtedness to be
immediately due and payable; or (2) notify all tenants of the Premises and all
others obligated on leases of any part of the Premises that all rents and other
sums owing on leases have been assigned to Grantee and are to be paid directly
to Grantee, and to enforce payment of all obligations owing on leases, by suit,
ejectment, cancellation, releasing, reletting or otherwise, whether or not
Grantee has taken possession of the Premises, and to exercise whatever rights
and remedies Grantee may have under any assignment of rents and leases; or (3)
enter into or upon the Premises, either personally or by its agents, nominees or
attorneys and dispossess Grantor and its agents and servants therefrom, and
thereupon Grantee may (i) use, operate, manage, control, insure, maintain,
repair, restore and otherwise deal with all and every part of the Premises and
conduct the business thereat; (ii) complete any construction on the Premises in
such manner and form as the Collateral Agent, as agent for the Grantee, deems
advisable; (iii) make alterations, additions, renewals, replacements and
improvements to or on the Secured Property; (iv) exercise all rights and power
of Grantor with respect to the Premises, whether in the name of Grantor, or
otherwise, including, without limitation, the right to make, cancel, enforce or
modify leases, obtain and evict tenants, and demand, sue for, collect and
receive all earnings, revenues, rents, issues, profits and other income of the
Premises and every part thereof, which rights shall not be in limitation of
Grantee's rights under any assignment of rents and leases securing the Bonds;
and (v) apply the receipts from the Premises to the payment of the Indebtedness,
after deducting therefrom all reasonable expenses (including reasonable
attorneys' fees) incurred in connection with the aforesaid operations and all
amounts necessary to pay the taxes, assessments, insurance and other charges in
connection with the Secured Property, as well as just and reasonable
compensation for the services of Grantee, its counsel, agents and employees; or
(4) institute proceedings for

                                      -14-
<PAGE>

the complete foreclosure of this Security Deed either at law, in equity or
pursuant to Section 2.02(b) herein, in which case the Secured Property may be
sold for cash or upon credit in one or more parcels; or (5) with or without
entry, to the extent permitted and pursuant to the procedures provided by
applicable law, institute proceedings for the partial foreclosure of this
Security Deed for the portion of the Indebtedness then due and payable (if the
Collateral Agent, as agent for the Grantee, shall have elected not to declare
the entire Indebtedness to be immediately due and owing), subject to the
continuing lien of this Security Deed for the balance of the Indebtedness not
then due; or (6) sell for cash or upon credit the Secured Property or any part
thereof and all estate, claim, demand, right, title and interest of Grantor
therein and rights of redemption thereof, pursuant to power of sale or
otherwise, at one or more sales, as an entity or in parcels, at such time and
place, upon such terms and after such notice thereof as may be required or
permitted by law, and in the event of a sale, by foreclosure or otherwise, of
less than all of the Secured Property, this Security Deed shall continue as a
lien on the remaining portion of the Secured Property; or (7) institute an
action, suit or proceeding in equity for the specific performance of any
covenant, condition or agreement contained herein; or (8) recover judgment on
the Indebtedness either before, during or after any proceedings for the
enforcement of this Security Deed; or (9) apply for the appointment of a
trustee, receiver, liquidator or conservator of the Secured Property, without
regard for the adequacy of the security for the Indebtedness and without regard
for the solvency of Grantor, any guarantor, or any other person, firm or other
entity liable for the payment of the Indebtedness; or (10) pay or perform any
default in the payment, performance or observance of any term, covenant or
condition of this Security Deed, and all payments made or costs or expenses
incurred by Grantee in connection therewith, shall be secured hereby and shall
be, without demand, immediately repaid by Grantor to Grantee with interest
thereon as provided in Section 1.11 hereof, the necessity for any such actions
and of the amounts to be paid to be in the sole judgment of Grantee, and Grantee
may enter and authorize others to enter upon the Secured Property or any part
thereof for the purpose of performing or observing any such defaulted term,
covenant or condition without thereby becoming liable to Grantor or any person
in possession holding under Grantor; or (11) pursue such other remedies as
Grantee may have under applicable law, in equity or under the Indebtedness or
this Security Deed; or (12) pursue any remedy available to Grantee under any
guaranty.

         (b) If an Event of Default shall have occurred, Grantee may, with the
consent of the Collateral Agent, and shall, at the direction of the Collateral
Agent, sell the Secured Property or any part of the Secured Property at public
sale or sales at the usual place for conducting sales in the county in which the
Secured Property or any part of the Secured Property is situated, to the highest
bidder for cash, in order to pay the Indebtedness secured hereby and accrued
interest thereon and insurance premiums, liens, assessments, taxes and charges,
including utility charges, if any, with accrued interest thereon, and all
expenses of the sale and of all proceedings in connection therewith, including
reasonable attorneys' fees, actually incurred, after advertising the time, place
and terms of sale once a week for four (4) weeks immediately preceding such sale
(but without regard to the number of days) in a newspaper in which Sheriff's
sales are advertised in said county, all other notice being hereby waived by
Grantor. At any such public sale, Grantee may execute and deliver to the
purchaser a conveyance of the Secured Property or any part of the Secured
Property in fee simple, with

                                      -15-
<PAGE>

full warranties of title (or without warranties if Grantee shall so elect) and
to this end, Grantor hereby constitutes and appoints the Collateral Agent, as
agent for the Grantee, the agent and attorney-in-fact of Grantor to make such
sale and conveyance, and thereby to divest Grantor of all right, title,
interest, equity and equity of redemption that Grantor may have in and to the
Secured Property and to vest the same in the purchaser or purchasers at such
sale or sales, and all the acts and doings of said agent and attorney-in-fact
are hereby ratified and confirmed and any recitals in said conveyance or
conveyances as to facts essential to a valid sale shall be binding upon Grantor.
The aforesaid power of sale and agency hereby granted are coupled with an
interest and are irrevocable by death or otherwise, are granted as cumulative of
the other remedies provided hereby or by law for collection of the Indebtedness
secured hereby and shall not be exhausted by one exercise thereof but may be
exercised until full payment of all Indebtedness secured hereby. In the event of
any such foreclosure sale by Grantee, Grantor shall be deemed a tenant holding
over and shall forthwith deliver possession to the purchaser or purchasers at
such sale or be summarily dispossessed according to provisions of law applicable
to tenants holding over.

         (c) The purchase money proceeds or avails of any sale made under or by
virtue of this Article II, together with any other sums which then may be held
by Grantee under this Security Deed, whether under the provisions of this
Article II or otherwise, shall be applied in accordance with the Collateral
Agency Agreement. Notwithstanding anything contained herein to the contrary, any
such proceeds remaining after any such sale shall be paid to the Collateral
Agent, on behalf of the Lessee, in respect of its rights and interests under the
Lease.

         (d) Grantee may adjourn from time to time any sale by it to be made
under or by virtue of this Security Deed by announcement at the time and place
appointed for such sale or for such adjourned sale or sales; and, except as
otherwise provided by any applicable provision of law, Grantee, without further
notice or publication, may make such sale at the time and place to which the
same shall be so adjourned.

         (e) Upon the completion of any sale or sales made by Grantee under or
by virtue of this Article II, Grantee, or an officer of any court empowered to
do so, shall execute and deliver to the accepted purchaser or purchasers a good
and sufficient instrument, or good and sufficient instruments, conveying,
assigning and transferring all estate, right, title and interest in and to the
property and rights sold. The Collateral Agent, as agent for the Grantee, is
hereby irrevocably appointed the true and lawful attorney of Grantor, in its
name and stead, to make all necessary conveyances, assignments, transfers and
deliveries of the Secured Property and rights so sold and for that purpose
Grantee may execute all necessary instruments of conveyance, assignment and
transfer, and may substitute one or more persons with like power, Grantor hereby
ratifying and confirming all that its said attorney or such substitute or
substitutes shall lawfully do by virtue hereof. Any such sale or sales made
under or by virtue of this Article II, whether made under the power of sale
herein granted or under or by virtue of judicial proceedings or of a judgment or
decree of foreclosure and sale, shall operate to divest all the estate, right,
title, interest, claim and demand whatsoever, whether at law or in equity, of
Grantor in and to the properties and rights so sold, and shall be a perpetual
bar both at law

                                      -16-
<PAGE>

and in equity against Grantor and against any and all persons claiming or who
may claim the same, or any part thereof from, through or under Grantor.

         (f) In the event of any sale made under or by virtue of this Article II
(whether made under the power of sale herein granted or under or by virtue of
judicial proceedings or of a judgment or decree of foreclosure and sale) the
entire Indebtedness, if not previously due and payable, immediately thereupon
shall, anything in the Financing Documents or in this Security Deed to the
contrary notwithstanding, become due and payable.

         (g) Upon any sale made under or by virtue of this Article II (whether
made under the power of sale herein granted or under or by virtue of judicial
proceedings or of a judgment or decree of foreclosure and sale), the Collateral
Agent, as agent for the Grantee, may bid for and acquire the Secured Property or
any part thereof and in lieu of paying cash therefor may make settlement for the
purchase price by crediting upon the Indebtedness the net sales price after
deducting therefrom the expenses of the sale and the costs of the action and any
other sums which Grantee is authorized to deduct under this Security Deed.

         (h) No recovery of any judgment by Grantee and no levy of an execution
under any judgment upon the Secured Property or upon any other property of
Grantor shall affect in any manner or to any extent, the lien and title of this
Security Deed upon the Secured Property or any part thereof, or any liens,
titles, rights, powers or remedies of Grantee hereunder, but such liens, titles,
rights, powers and remedies of Grantee shall continue unimpaired as before.

         (i) Grantor agrees, to the fullest extent permitted by law, that upon
the occurrence of an Event of Default, neither Grantor nor anyone claiming
through or under it shall or will set up, claim or seek to take advantage of any
appraisement, valuation, stay, extension, homestead, exemption or redemption
laws now or hereafter in force, in order to prevent or hinder the enforcement or
foreclosure of this Security Deed, or the absolute sale of the Secured Property,
or the final and absolute putting into possession thereof, immediately after
such sale, of the purchasers thereat, and Grantor, for itself and all who may at
any time claim through or under it, hereby waives to the full extent that it may
lawfully so do, the benefit of all such laws, and any and all right to have the
assets comprised in the security intended to be created hereby marshalled upon
any foreclosure of the lien or title hereof.

         (j) The Collateral Agent, as agent for the Grantee, at its option, is
authorized to foreclose this Security Deed subject to the rights of any tenants
of the Premises, and the failure to make any such tenants parties to any such
foreclosure proceedings and to foreclose their rights will not be, nor be
asserted to be by Grantor, a defense to any proceedings instituted by Grantee to
collect the sums secured hereby.

         Section 2.03. [Intentionally omitted].

         Section 2.04. POSSESSION OF THE PREMISES. Possession of the Premises
during the existence of the Indebtedness by Grantor, or any person claiming
under Grantor, shall be that of a tenant under Grantee and its successors and
assigns. Upon the occurrence and during the

                                      -17-
<PAGE>

continuation of any Event of Default hereunder, it is agreed that the then owner
of the Premises, if it is the occupant of the Premises or any part thereof,
shall, at the option of the Collateral Agent, as agent for the Grantee,
immediately surrender possession of the Premises so occupied to Grantee, and if
such occupant is permitted to remain in possession, the possession shall be as
tenant of Grantee and, on demand, such occupant (a) shall pay to Grantee
monthly, in advance, a reasonable rental for the space so occupied, and (b) in
default thereof may be dispossessed by the usual summary proceedings. The
covenants herein contained may be enforced by a receiver of the Secured Property
or any part thereof. Nothing in this Section 2.04 shall be deemed to be a waiver
of the provisions of this Security Deed prohibiting the sale or other
disposition of the Secured Property without Grantee's consent.

         Section 2.05. GRANTOR'S ACTIONS AFTER DEFAULT. After the happening of
any Event of Default and immediately upon the commencement of any action, suit
or other legal proceedings by Grantee to obtain judgment for the Indebtedness,
or of any other nature in aid of the enforcement of the Indebtedness or of this
Security Deed, Grantor will, if required by Grantee, consent to the appointment
of a receiver or receivers of the Secured Property and of all the earnings,
revenues, rents, issues, profits and income thereof. Nothing herein shall be
deemed to require the commencement of a suit or the consent of Grantor as a
condition precedent for Grantee's right to the appointment of a receiver or the
exercise of any other rights or remedies available to Grantee.

         Section 2.06. CONTROL BY GRANTEE AFTER DEFAULT. Notwithstanding the
appointment of any receiver, liquidator or trustee of Grantor, or of any of its
property, or of the Secured Property or any part thereof, Grantee shall be
entitled to retain possession and control of all property now and hereafter
covered by this Security Deed.

         Section 2.07. WAIVER OF GRANTOR'S RIGHTS. BY EXECUTION OF THIS SECURITY
DEED AND BY INITIALING THIS SECTION 2.07, GRANTOR EXPRESSLY: (A) ACKNOWLEDGES
THE RIGHT TO ACCELERATE THE INDEBTEDNESS AND THE POWER OF ATTORNEY GIVEN HEREIN
TO GRANTEE TO SELL THE SECURED PROPERTY IN ACCORDANCE WITH THE PROVISIONS HEREOF
AND OF THE COLLATERAL AGREEMENT BY NONJUDICIAL FORECLOSURE UPON THE OCCURRENCE
OF AN EVENT OF DEFAULT WITHOUT ANY JUDICIAL HEARING AND WITHOUT ANY NOTICE; (B)
WAIVES ANY AND ALL RIGHTS WHICH GRANTOR MAY HAVE UNDER THE CONSTITUTION OF THE
UNITED STATES (INCLUDING THE FIFTH AND FOURTEENTH AMENDMENTS THEREOF), THE
VARIOUS PROVISIONS OF THE CONSTITUTIONS FOR THE SEVERAL STATES, OR BY REASON OF
ANY OTHER APPLICABLE LAW, TO NOTICE AND TO JUDICIAL HEARING PRIOR TO THE
EXERCISE BY GRANTEE OF ANY RIGHT OR REMEDY HEREIN PROVIDED TO GRANTEE; (C)
ACKNOWLEDGES THAT GRANTOR HAS READ THIS SECURITY DEED AND ITS PROVISIONS HAVE
BEEN EXPLAINED FULLY TO GRANTOR AND GRANTOR HAS CONSULTED WITH COUNSEL OF
GRANTOR'S CHOICE PRIOR TO EXECUTING THIS SECURITY DEED; AND (D) ACKNOWLEDGES
THAT ALL WAIVERS OF THE AFORESAID RIGHTS OF GRANTOR HAVE BEEN MADE KNOWINGLY,
INTENTIONALLY AND WILLINGLY BY GRANTOR AS PART OF A BARGAINED FOR LOAN
TRANSACTION:

                                      -18-
<PAGE>

                              INITIALED BY GRANTOR:

                      DEVELOPMENT AUTHORITY OF HEARD COUNTY

                                By:_____________

                                  ARTICLE III
                                  Miscellaneous

         Section 3.01. INTENTIONALLY OMITTED.

         Section 3.02. NO RELEASE. Grantor agrees, that in the event the Secured
Property is sold and Grantee enters into any agreement with the then owner of
the Secured Property extending the time of payment of the Indebtedness, or
otherwise modifying the terms hereof, Grantor shall continue to be liable to pay
the Indebtedness according to the tenor of any such agreement unless expressly
released and discharged in writing by Grantee.

         Section 3.03. NOTICES. All notices to any parties hereunder shall be in
writing (including bankwire, telex, telecopy or similar teletransmission or
writing) and shall be given by United States mail, telex, teletransmission or
overnight courier to such party at its address or applicable teletransmission
number set forth below or such other address or applicable telecopy number as
such party may hereafter specified by notice to the other party hereto. Each
such notice, request or other communication shall be effective (i) if given by
telex, once such telex is transmitted to the telex number specified in the Lease
Agreement and the appropriate answerback is received (ii) if given by mail, 72
hours after such communication is deposited in the mail with first class postage
pre-paid, addressed as aforesaid, (iii) if given by telecopy, when such telecopy
is transmitted to the telecopy number specified below and the appropriate
confirmation is received or (iv) if given by any other means (including, without
limitation, by air courier), when delivered or received at the address specified
in this sections (provided that notices to the Grantee shall not be effective
until received):

<TABLE>
        <S>                              <C>
         If to the Grantor:               DEVELOPMENT AUTHORITY OF HEARD COUNTY
                                          c/o Glover & Davis
                                          10 Brown Street
                                          Newnan, Georgia  30264-1038
                                          Attn:  A. Mitchell Powell, Esq.
                                          Telephone No. (770) 683-6000
                                          Telecopy No.  (770) 683-6010
</TABLE>

                                      -19-
<PAGE>

<TABLE>
                  <S>              <C>
                  Grantee:          THE CHASE MANHATTAN BANK
                                    Capital Markets Fiduciary Services
                                    450 West 33rd Street, 15th Floor
                                    New York, New York  10001
                                    Telephone No. (212) 946-7557
                                    Telecopy No.  (212) 946-8177
</TABLE>

         Section 3.04. BINDING OBLIGATIONS. The provisions and covenants of this
Security Deed shall run with the land, shall be binding upon Grantor and shall
inure to the benefit of Grantee, subsequent holders of this Security Deed and
their respective successors and assigns. For the purpose of this Security Deed,
the term "Grantor" shall mean Grantor named herein, any subsequent owner of the
Secured Property, and their respective heirs, executors, legal representatives,
successors and assigns. If there is more than one Grantor, all their
undertakings hereunder shall be deemed joint and several.

         Section 3.05. CAPTIONS. The captions of the Sections of this Security
Deed are for the purpose of convenience only and are not intended to be a part
of this Security Deed and shall not be deemed to modify, explain, enlarge or
restrict any of the provisions hereof.

         Section 3.06. FURTHER ASSURANCES. Grantor shall do, execute,
acknowledge and deliver, at the sole cost and expense of Grantor, all and every
such further acts, deeds, conveyances, assignments, estoppel certificates,
notices of assignment, transfers and assurances as Grantee may reasonably
require from time to time in order to better assure, convey, assign, transfer
and confirm unto Grantee, the rights now or hereafter intended to be granted to
Grantee under this Security Deed, any other instrument executed in connection
with this Security Deed or any other instrument under which Grantor may be or
may hereafter become bound to convey, transfer or assign to Grantee for carrying
out the intention of facilitating the performance of the terms of this Security
Deed.

         Section 3.07. SEVERABILITY. Any provision of this Security Deed which
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof or
affecting the validity or enforceability of such provisions in any other
jurisdiction.

         Section 3.08. GENERAL CONDITIONS.

         (a) All covenants hereof shall be construed as affording to Grantee
rights additional to and not exclusive of the rights conferred under the
provisions of applicable laws of the State of Georgia.

         (b) This Security Deed cannot be altered, amended, modified or
discharged orally and no agreement shall be effective to modify or discharge it
in whole or in part, unless it is in writing and signed by the party against
whom enforcement of the modification, alteration, amendment or discharge is
sought.

                                      -20-
<PAGE>

         (c) No remedy herein conferred upon or reserved to Grantee is intended
to be exclusive of any other remedy or remedies, and each and every such remedy
shall be cumulative, and shall be in addition to every other remedy given
hereunder or now or hereafter existing at law or in equity or by statute. No
delay or omission of Grantee in exercising any right or power accruing upon any
Event of Default shall impair any such right or power, or shall be construed to
be a waiver of any such Event of Default, or any acquiescence therein.
Acceptance of any payment after the occurrence of an Event of Default shall not
be deemed to waive or cure such Event of Default; and every power and remedy
given by this Security Deed to Grantee may be exercised from time to time as
often as may be deemed expedient by Grantee. Nothing in this Security Deed shall
affect the obligation of Grantor to pay the Indebtedness in the manner and at
the time and place therein respectively expressed.

         (d) No waiver by Grantee will be effective unless it is in writing and
then only to the extent specifically stated. Without limiting the generality of
the foregoing, any payment made by Grantee for insurance premiums, taxes,
assessments, water rates, sewer rentals or any other charges affecting the
Secured Property, shall not constitute a waiver of Grantor's default in making
such payments and shall not obligate Grantee to make any further payments.

         (e) Grantee shall have the right to appear in and defend any action or
proceeding which the Collateral Agent, as agent for the Grantee, in its
discretion, determines may adversely affect the Secured Property or this
Security Deed and, following the occurrence of an Event of Default, may appear
in the name and on behalf of Grantor. Grantee shall also have the right to
institute any action or proceeding which Grantee, in its discretion, determines
should be brought to protect its interest in the Secured Property or its rights
hereunder. All reasonable costs and expenses incurred by Grantee in connection
with such actions or proceedings, including, without limitation, reasonable
attorneys' fees and appellate attorneys' fees actually incurred, shall be paid
by Grantor, on demand.

         (f) In the event of the passage after the date of this Security Deed of
any law of any governmental authority having jurisdiction, deducting the
Indebtedness from the value of the Premises for the purpose of taxation,
affecting any lien thereon or changing in any way the laws of the taxation of
security deeds or debts secured by security deeds for federal, state or local
purposes, or the manner of the collection of any such taxes, so as to affect
this Security Deed, Grantor shall promptly pay to Grantee, on demand, all taxes,
costs and charges for which Grantee is or may be liable as a result thereof,
provided said payment shall not be prohibited by law or render the Bonds
usurious, in which event Grantee may declare the Indebtedness to be immediately
due and payable.

         (g) Grantor acknowledges that it has received a true copy of this
Security Deed.

         (h) For the purposes of this Security Deed, (i) capitalized terms used
herein and not defined herein shall have the meanings ascribed thereto in the
Common Agreement and (ii) all defined terms and personal pronouns contained
herein shall be construed, whenever the context of this Security Deed so
requires, so that the singular shall be construed as the plural and vice

                                      -21-
<PAGE>

versa and so that the masculine, feminine or neuter gender shall be construed to
include all other genders.

         (i) No provision of this Security Deed shall be construed against or
interpreted to the disadvantage of Grantor or Grantee by any court or other
governmental or judicial authority by reason of such party having or being
deemed to have drafted, prepared, structured or dictated such provision.

         (j) Time is of the essence with respect to each and every covenant,
agreement and obligation of Grantor and any guarantor under this Security Deed.

         (k) Whenever this Security Deed, the Bonds or the Lease Agreement
requires the consent, approval, waiver, acceptance, satisfaction or the taking
of any discretionary act by, Grantee all of the foregoing being referred to as
"Consent" in this subsection 3.08(k), the right, power, privilege and option of
Grantee to withhold or grant its Consent shall not be exhausted by the exercise
thereof on one or more occasions, but shall be a continuing right, power,
privilege and option of Grantee with respect to any such matters.

         Section 3.09. LEGAL CONSTRUCTION. The enforcement of this Security Deed
shall be governed, construed and interpreted by the laws of the State of
Georgia. Nothing in this Security Deed, the Lease, the Bonds or in any other
agreement between Grantor and Grantee shall require Grantor to pay, or Grantee
to accept, interest in an amount which would subject Grantee to any penalty
under applicable law. In the event that the payment of any interest due
hereunder or under the Bonds or any such other agreement would subject Grantee
to any penalty under applicable law, then automatically the obligations of
Grantor to make such payment shall be reduced to the highest rate authorized
under applicable law.

         Section 3.10. WAIVER OF JURY TRIAL. Grantor and Grantee, on behalf of
themselves and their respective successors and assigns, waive all right to trial
by jury in any action or proceeding to enforce or defend any rights or remedies
under the Bonds, the Lease or this Security Deed or relating thereto.

         Section 3.11. NO PARTNERSHIP OR JOINT VENTURE. Nothing contained herein
or in the Bonds or in the Lease, nor the acts of the parties hereto, shall be
construed to create a partnership or joint venture between Grantor and Grantee.
The relationship between Grantor and Grantee is the relationship of "debtor" and
"creditor".

         Section 3.12. COUNTERPARTS. This Security Deed may be executed in any
number of counterparts, each of which shall be deemed to be an original and all
of which, taken together shall constitute one and the same instrument.

                                      -22-
<PAGE>

         IN WITNESS WHEREOF, this Security Deed has been duly executed and
delivered under seal as of the day and year first above written.

                                    GRANTOR:

                                    DEVELOPMENT AUTHORITY OF HEARD COUNTY

[CORPORATE SEAL]                    By:  /S/__________________________
                                    Name: Mal Milam
                                    Title:  Chairman

Attest:

By:  /S/__________________________
Name: Robin C. McKenzie
Title:  Secretary

Signed, sealed and delivered
in the presence of:

/S/______________________________
Unofficial Witness

/S/______________________________
Notary Public

Date executed by Notary:
November 5, 1999

My commission expires:________

         [NOTARIAL SEAL]

                                      -23-
<PAGE>

                                    EXHIBIT A

                             DESCRIPTION OF PREMISES

         TRACT A1

         ALL THAT TRACT OR PARCEL OF LAND SITUATE, LYING AND BEING IN LAND LOTS
236 & 237 OF THE THIRD LAND DISTRICT OF HEARD COUNTY GEORGIA, AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:

         COMMENCING AT THE INTERSECTION OF THE WESTERLY RIGHT OF WAY LINE OF JOE
STEPHENS ROAD (80 FOOT WIDTH) WITH THE SOUTHERLY RIGHT OF WAY LINE OF GEORGE
BROWN ROAD (PRESCRIPTIVE RIGHT OF WAY 40 FEET, MORE OR LESS, IN WIDTH), SAID
POINT BEING THE POINT OF REFERENCE; THENCE ALONG THE SOUTHERLY MARGIN OF GEORGE
BROWN ROAD SOUTH 74 DEGREES 00 MINUTES 18 SECONDS WEST FOR A DISTANCE OF 877.40
FEET TO A METAL FENCE POST FLUSH WITH THE GROUND;

         THENCE South 72 degrees 48 minutes 00 seconds West for a distance of
405.46 feet to a 12 INCH WOOD POST;

         THENCE North 88 degrees 37 minutes 10 seconds West for a distance of
252.91 feet to a 1/2 INCH REBAR SET ON THE WESTERLY LINE OF A GEORGIA POWER
COMPANY RIGHT OF WAY (150 FOOT WIDTH), SAID POINT BEING THE POINT OF BEGINNING
FOR THE HEREIN DESCRIBED PARCEL OF LAND.

         THENCE along said westerly line of a Georgia Power Company Right of Way
South 05 degrees 00 minutes 38 seconds East for a distance of 1982.75 to a 1/2
INCH REBAR SET ON THE NORTHERLY LIMITS OF THE WETLANDS OF HILLY MILL CREEK;

         THENCE along said westerly line of a Georgia Power Company Right of Way
South 05 degrees 00 minutes 38 seconds East for a distance of 191.17 to a POINT
IN THE CENTERLINE OF HILLY MILL CREEK;

         THENCE along the centerline of Hilly Mill Creek to the Northwest, more
or less, North 46 degrees 21 minutes 20 seconds West for a distance of 66.26
feet to a POINT IN THE CENTERLINE OF THE CREEK;

          THENCE North 78 degrees 13 minutes 26 seconds West for a distance of
274.76 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 53 degrees 56 minutes 11 seconds West for a distance of
188.31 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 26 degrees 05 minutes 05 seconds West for a distance of
142.40 feet to a POINT IN THE CENTERLINE OF THE CREEK;

<PAGE>

         THENCE North 74 degrees 59 minutes 42 seconds West for a distance of
170.99 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 53 degrees 11 minutes 27 seconds West for a distance of
280.96 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 65 degrees 46 minutes 02 seconds West for a distance of
101.90 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE South 56 degrees 23 minutes 59 seconds West for a distance of
162.95 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 80 degrees 36 minutes 29 seconds West for a distance of
406.05 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 29 degrees 13 minutes 39 seconds West for a distance of
496.12 feet to a POINT OF INTERSECTION OF HILLY MILL CREEK AND AN UNNAMED CREEK;

         THENCE along the centerline of the unnamed creek to the Northeast, more
or less, North 68 degrees 03 minutes 13 seconds East for a distance of 336.28
feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 65 degrees 29 minutes 52 seconds East for a distance of
296.07 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 54 degrees 43 minutes 02 seconds East for a distance of
67.68 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 17 degrees 17 minutes 28 seconds East for a distance of
228.26 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 23 degrees 21 minutes 46 seconds East for a distance of
241.49 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 07 degrees 17 minutes 08 seconds East for a distance of
71.42 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 79 degrees 26 minutes 44 seconds East for a distance of
307.88 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 48 degrees 14 minutes 55 seconds East for a distance of
157.63 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 27 degrees 04 minutes 19 seconds East for a distance of
111.97 feet to a POINT IN THE CENTERLINE OF THE CREEK;

                                       A-2
<PAGE>

         THENCE North 55 degrees 09 minutes 32 seconds East for a distance of
128.35 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 08 degrees 06 minutes 45 seconds East for a distance of
34.61 feet to an IRON PIN SET IN THE CENTERLINE OF THE CREEK;

         THENCE South 88 degrees 37 minutes 10 seconds East for a distance of
212.86 feet to a 1/2 inch rebar set on the Westerly line of a GEORGIA POWER
COMPANY TRANSMISSION LINE RIGHT OF WAY (150 FOOT WIDTH); Said point being the
POINT OF BEGINNING.

         Said property contains 46.13 acres, and is that same tract or parcel of
land shown as Tract A1 on that certain ALTA/ACSM Title Survey, entitled Heard
County Power Generation Site for Tenaska, Inc., Tenaska Georgia, Inc., Tenaska
Georgia I, LP, Tenaska Georgia Partners, LP, Fidelity National Title Insurance
Company of New York, Stewart Title Guaranty Company, Heard County Development
Authority & The Chase Manhattan Bank as Trustee and Collateral Agent, prepared
by Donaldson, Garrett & Associate, Inc., bearing the seal and certification of
James W. Newberry, Jr. Registered Land Surveyor No. 2558, dated March 19, 1999,
last revised November 4, 1999, and recorded in Plat Book 10, Pages 176 - 188, in
the Office of the Clerk of the Superior Court of Heard County, Georgia.

         TRACT B

         ALL THAT TRACT OR PARCEL OF LAND SITUATE, LYING AND BEING IN LAND LOTS
236 & 237 OF THE THIRD LAND DISTRICT OF HEARD COUNTY GEORGIA, AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:

         COMMENCING AT THE INTERSECTION OF THE WESTERLY RIGHT OF WAY LINE OF JOE
STEPHENS ROAD (80 FOOT WIDTH) WITH THE SOUTHERLY RIGHT OF WAY LINE OF GEORGE
BROWN ROAD (PRESCRIPTIVE RIGHT OF WAY 40 FEET, MORE OR LESS, IN WIDTH), SAID
POINT BEING THE POINT OF REFERENCE; THENCE ALONG THE SOUTHERLY MARGIN OF GEORGE
BROWN ROAD SOUTH 74 DEGREES 00 MINUTES 18 SECONDS WEST FOR A DISTANCE OF 877.40
FEET TO A METAL FENCE POST FLUSH WITH THE GROUND;

         THENCE South 01 degrees 19 minutes 00 seconds West for a distance of
902.40 feet to a STEEL FENCE POST;

         THENCE South 01 degrees 36 minutes 50 seconds East for a distance of
321.00 feet to a 1" PIPE;

         THENCE South 00 degrees 28 minutes 16 seconds West for a distance of
802.62 feet to a 1" PIPE;

                                      A-3
<PAGE>

         THENCE South 00 degrees 43 minutes 57 seconds West for a distance of
291.17 feet to a POINT IN THE CENTERLINE OF HILLY MILL CREEK;

         THENCE along the centerline of Hilly Mill Creek to the Northwest, more
or less, North 60 degrees 42 minutes 09 seconds West for a distance of 97.17
feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE South 21 degrees 03 minutes 44 seconds West for a distance of
136.80 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 73 degrees 18 minutes 03 seconds West for a distance of
223.86 feet to a POINT AT THE CENTERLINE OF A GEORGIA POWER COMPANY TRANSMISSION
LINE RIGHT OF WAY (150 FOOT WIDTH);

         THENCE North 73 degrees 18 minutes 03 seconds West for a distance of
36.90 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 46 degrees 21 minutes 20 seconds West for a distance of
127.90 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 78 degrees 13 minutes 26 seconds West for a distance of
274.76 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 53 degrees 56 minutes 11 seconds West for a distance of
188.31 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 26 degrees 05 minutes 05 seconds West for a distance of
142.40 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 74 degrees 59 minutes 42 seconds West for a distance of
170.99 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 53 degrees 11 minutes 27 seconds West for a distance of
280.96 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 65 degrees 46 minutes 02 seconds West for a distance of
101.90 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE South 56 degrees 23 minutes 59 seconds West for a distance of
162.95 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 80 degrees 36 minutes 29 seconds West for a distance of
406.05 feet to a POINT IN THE CENTERLINE OF THE CREEK;

                                      A-4
<PAGE>

         THENCE North 29 degrees 13 minutes 39 seconds West for a distance of
496.12 feet to a POINT OF INTERSECTION OF HILLY MILL CREEK AND AN UNNAMED CREEK
FROM THE NORTHEAST;

         THENCE South 78 degrees 47 minutes 46 seconds West for a distance of
360.23 feet to a point on the Southern limits of the wetlands of Hilly Mill
Creek, Said point being the POINT OF BEGINNING for the herein described parcel
of land;

         THENCE along said wetlands limits to the Southeast, more or less, South
53 degrees 54 minutes 27 seconds East for a distance of 76.08 feet to a point;

         THENCE South 45 degrees 43 minutes 13 seconds East for a distance of
63.42 feet to a point;

         THENCE South 37 degrees 54 minutes 40 seconds East for a distance of
63.14 feet to a point;

         THENCE South 12 degrees 38 minutes 55 seconds West for a distance of
96.50 feet to a point;

         THENCE South 31 degrees 53 minutes 23 seconds West for a distance of
54.60 feet to a point;

         THENCE South 41 degrees 48 minutes 24 seconds West for a distance of
62.60 feet to a point;

         THENCE South 08 degrees 50 minutes 54 seconds West for a distance of
30.89 feet to a point;

         THENCE South 73 degrees 19 minutes 07 seconds East for a distance of
59.72 feet to a point;

         THENCE North 74 degrees 25 minutes 30 seconds East for a distance of
60.24 feet to a point;

         THENCE North 47 degrees 07 minutes 32 seconds East for a distance of
33.85 feet to a point;

         THENCE North 03 degrees 16 minutes 22 seconds East for a distance of
30.45 feet to a point;

         THENCE South 61 degrees 11 minutes 13 seconds East for a distance of
29.26 feet to a point;

         THENCE South 43 degrees 42 minutes 16 seconds East for a distance of
44.52 feet to a point;

                                      A-5
<PAGE>

         THENCE South 49 degrees 16 minutes 16 seconds East for a distance of
57.00 feet to a point;

         THENCE South 30 degrees 34 minutes 48 seconds East for a distance of
65.93 feet to a point;

         THENCE South 24 degrees 24 minutes 28 seconds East for a distance of
47.19 feet to a point;

         THENCE South 21 degrees 50 minutes 49 seconds East for a distance of
58.28 feet to a point;

         THENCE South 24 degrees 09 minutes 26 seconds East for a distance of
79.36 feet to a point;

         THENCE South 27 degrees 37 minutes 37 seconds East for a distance of
52.90 feet to a point;

         THENCE South 45 degrees 45 minutes 34 seconds East for a distance of
37.07 feet to a point;

         THENCE North 35 degrees 31 minutes 29 seconds East for a distance of
32.07 feet to a point;

         THENCE South 37 degrees 21 minutes 56 seconds East for a distance of
38.13 feet to a point;

         THENCE South 15 degrees 07 minutes 14 seconds East for a distance of
55.08 feet to a point;

         THENCE South 49 degrees 21 minutes 23 seconds East for a distance of
41.61 feet to a point;

         THENCE South 10 degrees 21 minutes 54 seconds East for a distance of
66.83 feet to a point;

         THENCE South 28 degrees 17 minutes 29 seconds West for a distance of
51.89 feet to a point;

         THENCE South 04 degrees 18 minutes 43 seconds West for a distance of
78.67 feet to a point;

         THENCE South 06 degrees 56 minutes 49 seconds West for a distance of
56.79 feet to a point;

                                      A-6
<PAGE>

         THENCE South 07 degrees 48 minutes 12 seconds West for a distance of
48.18 feet to a point;

         THENCE South 35 degrees 36 minutes 30 seconds West for a distance of
63.01 feet to a point;

         THENCE South 03 degrees 06 minutes 41 seconds West for a distance of
49.25 feet to a point;

         THENCE leaving said wetlands limits, North 65 degrees 01minutes 43
seconds West for a distance of 98.87 feet to a point;

         THENCE North 11 degrees 02 minutes 41 seconds East for a distance of
230.45 feet to a point;

         THENCE North 11 degrees 13 minutes 13 seconds West for a distance of
121.54 feet to a point;

         THENCE North 38 degrees 58 minutes 52 seconds West for a distance of
121.90 feet to a point;

         THENCE North 23 degrees 10 minutes 22 seconds West for a distance of
116.83 feet to a point;

         THENCE North 27 degrees 01 minutes 41 seconds West for a distance of
102.77 feet to a point;

         THENCE North 44 degrees 31 minutes 22 seconds West for a distance of
55.85 feet to a point;

         THENCE South 70 degrees 40 minutes 56 seconds West for a distance of
73.31 feet to a point;

         THENCE South 71 degrees 22 minutes 08 seconds West for a distance of
120.59 feet to a point;

         THENCE North 27 degrees 11 minutes 02 seconds West for a distance of
173.06 feet to a point;

         THENCE North 06 degrees 27 minutes 30 seconds East for a distance of
58.98 feet to a point;

         THENCE North 40 degrees 46 minutes 01 seconds East for a distance of
132.31 feet to a point;

                                      A-7
<PAGE>

         THENCE North 01 degrees 41 minutes 21 seconds West for a distance of
32.15 feet to a point;

         THENCE North 42 degrees 40 minutes 25 seconds West for a distance of
132.37 feet to a point;

         THENCE North 47 degrees 57 minutes 38 seconds East for a distance of
97.57 feet to the POINT OF BEGINNING.

         Said property contains 3.84 acres more or less and is that same tract
or parcel of land shown as Tract B on that certain ALTA/ACSM Title Survey,
entitled Heard County Power Generation Site for Tenaska, Inc., Tenaska Georgia,
Inc., Tenaska Georgia I, LP, Tenaska Georgia Partners, LP, Fidelity National
Title Insurance Company of New York, Stewart Title Guaranty Company, Heard
County Development Authority & The Chase Manhattan Bank as Trustee and
Collateral Agent, prepared by Donaldson, Garrett & Associate, Inc., bearing the
seal and certification of James W. Newberry, Jr. Registered Land Surveyor No.
2558, dated March 19, 1999, last revised November 4, 1999, and recorded in Plat
Book 10, Pages 176 - 188, in the Office of the Clerk of the Superior Court of
Heard County, Georgia.

         TRACT C

         ALL THAT TRACT OR PARCEL OF LAND SITUATE, LYING AND BEING IN LAND LOT
236 OF THE THIRD LAND DISTRICT OF HEARD COUNTY GEORGIA, AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:

         COMMENCING AT THE INTERSECTION OF THE WESTERLY RIGHT OF WAY LINE OF JOE
STEPHENS ROAD (80 FOOT WIDTH) WITH THE SOUTHERLY RIGHT OF WAY LINE OF GEORGE
BROWN ROAD (PRESCRIPTIVE RIGHT OF WAY 40 FEET, MORE OR LESS, IN WIDTH), SAID
POINT BEING THE POINT OF REFERENCE; THENCE ALONG THE SOUTHERLY MARGIN OF GEORGE
BROWN ROAD SOUTH 74 DEGREES 00 MINUTES 18 SECONDS WEST FOR A DISTANCE OF 877.40
FEET TO A METAL FENCE POST FLUSH WITH THE GROUND;

         THENCE South 01 degrees 19 minutes 00 seconds West for a distance of
902.40 feet to a STEEL FENCE POST;

         THENCE South 01 degrees 36 minutes 50 seconds East for a distance of
321.00 feet to a 1" PIPE;

         THENCE South 00 degrees 28 minutes 16 seconds West for a distance of
802.62 feet to a 1" PIPE;

         THENCE South 00 degrees 43 minutes 57 seconds West for a distance of
291.17 feet to a POINT IN THE CENTERLINE OF HILLY MILL CREEK;

                                      A-8
<PAGE>

         THENCE South 01 degrees 18 minutes 40 seconds West for a distance of
32.38 feet to a point;

         THENCE South 02 degrees 18 minutes 34 seconds West for a distance of
978.06 feet to a point on the Southerly limits of the Wetlands of Hilly Mill
Creek, said point being the POINT OF BEGINNING for the herein described parcel
of land.

         THENCE South 02 degrees 18 minutes 34 seconds West for a distance of
84.64 feet to a 3/4" PIPE;

         THENCE South 01 degrees 21 minutes 15 seconds West for a distance of
12.03 feet to a point;

         THENCE North 72 degrees 59 minutes 23 seconds West for a distance of
97.41 feet to a point;

         THENCE North 28 degrees 40 minutes 02 seconds West for a distance of
114.55 feet to a point;

         THENCE North 62 degrees 08 minutes 04 seconds West for a distance of
184.99 feet to a point;

         THENCE North 63 degrees 50 minutes 09 seconds West for a distance of
166.92 feet to a point;

         THENCE North 64 degrees 00 minutes 12 seconds West for a distance of
173.39 feet to a point;

         THENCE North 87 degrees 49 minutes 10 seconds West for a distance of
111.55 feet to a point;

         THENCE North 66 degrees 04 minutes 51 seconds West for a distance of
158.94 feet to a point;

         THENCE North 66 degrees 19 minutes 50 seconds West for a distance of
121.59 feet to a point;

         THENCE North 53 degrees 03 minutes 38 seconds West for a distance of
186.45 feet to a point;

         THENCE North 44 degrees 18 minutes 22 seconds West for a distance of
163.48 feet to a point;

         THENCE North 56 degrees 31 minutes 54 seconds West for a distance of
127.08 feet to a point;

                                      A-9
<PAGE>

         THENCE North 49 degrees 42 minutes 26 seconds West for a distance of
110.80 feet to a point;

         THENCE South 63 degrees 26 minutes 27 seconds West for a distance of
73.93 feet to a point;

         THENCE South 34 degrees 43 minutes 18 seconds West for a distance of
155.58 feet to a point;

         THENCE North 65 degrees 01 minutes 43 seconds West for a distance of
125.76 feet to a point on the Southerly Wetland limits of Hilly Mill Creek;

         THENCE along said Wetland Limits to the Southeast, more or Less, North
19 degrees 07 minutes 29 seconds East for a distance of 19.11 feet to a point;

         THENCE North 11 degrees 12 minutes 10 seconds East for a distance of
55.36 feet to a point;

         THENCE North 59 degrees 47 minutes 00 seconds East for a distance of
61.82 feet to a point;

         THENCE North 46 degrees 30 minutes 17 seconds East for a distance of
108.43 feet to a point;

         THENCE North 51 degrees 07 minutes 59 seconds East for a distance of
99.18 feet to a point;

         THENCE North 78 degrees 57 minutes 49 seconds East for a distance of
32.52 feet to a point;

         THENCE South 66 degrees 51 minutes 15 seconds East for a distance of
88.50 feet to a point;

         THENCE South 51 degrees 09 minutes 25 seconds East for a distance of
75.29 feet to a point;

         THENCE South 42 degrees 38 minutes 23 seconds East for a distance of
82.73 feet to a point;

         THENCE South 66 degrees 04 minutes 46 seconds East for a distance of
88.97 feet to a point;

         THENCE South 32 degrees 53 minutes 29 seconds East for a distance of
60.69 feet to a point;

                                      A-10
<PAGE>

         THENCE South 62 degrees 19 minutes 25 seconds East for a distance of
64.45 feet to a point;

         THENCE South 34 degrees 53 minutes 35 seconds East for a distance of
38.63 feet to a point;

         THENCE South 36 degrees 35 minutes 41 seconds East for a distance of
74.06 feet to a point;

         THENCE South 55 degrees 19 minutes 31 seconds East for a distance of
73.40 feet to a point;

         THENCE South 57 degrees 46 minutes 00 seconds East for a distance of
45.12 feet to a point;

         THENCE North 39 degrees 42 minutes 35 seconds East for a distance of
48.51 feet to a point;

         THENCE South 26 degrees 49 minutes 36 seconds East for a distance of
66.09 feet to a point;

         THENCE South 63 degrees 22 minutes 19 seconds East for a distance of
81.30 feet to a point;

         THENCE South 60 degrees 12 minutes 05 seconds East for a distance of
47.15 feet to a point;

         THENCE North 76 degrees 42 minutes 50 seconds East for a distance of
37.29 feet to a point;

         THENCE South 67 degrees 38 minutes 47 seconds East for a distance of
104.31 feet to a point;

         THENCE South 58 degrees 01 minutes 02 seconds East for a distance of
94.01 feet to a point;

         THENCE South 73 degrees 39 minutes 40 seconds East for a distance of
90.45 feet to a point;

         THENCE South 46 degrees 08 minutes 36 seconds East for a distance of
73.29 feet to a point;

         THENCE South 68 degrees 34 minutes 52 seconds East for a distance of
80.11 feet to a point;

                                      A-11
<PAGE>

         THENCE South 72 degrees 11 minutes 52 seconds East for a distance of
174.98 feet to a point;

         THENCE South 74 degrees 05 minutes 22 seconds East for a distance of
25.78 feet to a point;

         THENCE South 51 degrees 26 minutes 02 seconds East for a distance of
43.79 feet to a point;

         THENCE South 09 degrees 58 minutes 33 seconds East for a distance of
54.59 feet to a point;

         THENCE South 45 degrees 04 minutes 30 seconds East for a distance of
50.75 feet to a point;

         THENCE South 55 degrees 48 minutes 09 seconds East for a distance of
59.24 feet to the POINT OF BEGINNING.

         Said property contains 5.13 acres more or less and is that same tract
or parcel of land shown as Tract C on that certain ALTA/ACSM Title Survey,
entitled Heard County Power Generation Site for Tenaska, Inc., Tenaska Georgia,
Inc., Tenaska Georgia I, LP, Tenaska Georgia Partners, LP, Fidelity National
Title Insurance Company of New York, Stewart Title Guaranty Company, Heard
County Development Authority & The Chase Manhattan Bank as Trustee and
Collateral Agent, prepared by Donaldson, Garrett & Associate, Inc., bearing the
seal and certification of James W. Newberry, Jr. Registered Land Surveyor No.
2558, dated March 19, 1999, last revised November 4, 1999, and recorded in Plat
Book 10, Pages 176 - 188, in the Office of the Clerk of the Superior Court of
Heard County, Georgia.

         TRACT D

         ALL THAT TRACT OR PARCEL OF LAND SITUATE, LYING AND BEING IN LAND LOTS
236 & 237 OF THE THIRD LAND DISTRICT OF HEARD COUNTY GEORGIA, AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:

         COMMENCING AT THE INTERSECTION OF THE WESTERLY RIGHT OF WAY LINE OF JOE
STEPHENS ROAD (80 FOOT WIDTH) WITH THE SOUTHERLY RIGHT OF WAY LINE OF GEORGE
BROWN ROAD (PRESCRIPTIVE RIGHT OF WAY 40 FEET, MORE OR LESS, IN WIDTH), SAID
POINT BEING THE POINT OF REFERENCE; THENCE ALONG THE SOUTHERLY MARGIN OF GEORGE
BROWN ROAD SOUTH 74 DEGREES 00 MINUTES 18 SECONDS WEST FOR A DISTANCE OF 877.40
FEET TO A METAL FENCE POST FLUSH WITH THE GROUND;

         THENCE South 01 degrees 19 minutes 00 seconds West for a distance of
902.40 feet to a STEEL FENCE POST;

                                      A-12
<PAGE>

         THENCE South 01 degrees 36 minutes 50 seconds East for a distance of
321.00 feet to a 1" PIPE;

         THENCE South 00 degrees 28 minutes 16 seconds West for a distance of
802.62 feet to a 1" PIPE;

         THENCE South 00 degrees 43 minutes 57 seconds West for a distance of
291.17 feet to a POINT IN THE CENTERLINE OF HILLY MILL CREEK; SAID POINT BEING
THE POINT OF BEGINNING FOR THE HEREIN DESCRIBED PARCEL OF LAND.

         THENCE along the centerline of Hilly Mill Creek to the Northwest, more
or less, North 60 degrees 42 minutes 09 seconds West for a distance of 97.17
feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE South 21 degrees 03 minutes 44 seconds West for a distance of
136.80 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 73 degrees 18 minutes 03 seconds West for a distance of
223.86 feet to a POINT AT THE CENTERLINE OF A GEORGIA POWER COMPANY TRANSMISSION
LINE RIGHT OF WAY (150 FOOT WIDTH);

         THENCE North 73 degrees 18 minutes 03 seconds West for a distance of
36.90 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 46 degrees 21 minutes 20 seconds West for a distance of
127.90 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 78 degrees 13 minutes 26 seconds West for a distance of
274.76 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 53 degrees 56 minutes 11 seconds West for a distance of
188.31 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 26 degrees 05 minutes 05 seconds West for a distance of
142.40 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 74 degrees 59 minutes 42 seconds West for a distance of
170.99 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 53 degrees 11 minutes 27 seconds West for a distance of
280.96 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 65 degrees 46 minutes 02 seconds West for a distance of
101.90 feet to a POINT IN THE CENTERLINE OF THE CREEK;

                                      A-13
<PAGE>

         THENCE South 56 degrees 23 minutes 59 seconds West for a distance of
162.95 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 80 degrees 36 minutes 29 seconds West for a distance of
406.05 feet to a POINT IN THE CENTERLINE OF THE CREEK;

         THENCE North 29 degrees 13 minutes 39 seconds West for a distance of
496.12 feet to a POINT OF INTERSECTION OF HILLY MILL CREEK AND AN UNNAMED CREEK
FROM THE NORTHEAST;

         THENCE South 78 degrees 47 minutes 46 seconds West for a Distance of
360.23 feet to a point on the Southern limits of the wetlands of Hilly Mill
Creek;

         THENCE along said wetlands limits to the Southeast, more or less, South
53 degrees 54 minutes 27 seconds East for a distance of 76.08 feet to a point;

         THENCE South 45 degrees 43 minutes 13 seconds East for a distance of
63.42 feet to a point;

         THENCE South 37 degrees 54 minutes 40 seconds East for a distance of
63.14 feet to a point;

         THENCE South 12 degrees 38 minutes 55 seconds West for a distance of
96.50 feet to a point;

         THENCE South 31 degrees 53 minutes 23 seconds West for a distance of
54.60 feet to a point;

         THENCE South 41 degrees 48 minutes 24 seconds West for a distance of
62.60 feet to a point;

         THENCE South 08 degrees 50 minutes 54 seconds West for a distance of
30.89 feet to a point;

         THENCE South 73 degrees 19 minutes 07 seconds East for a distance of
59.72 feet to a point;

         THENCE North 74 degrees 25 minutes 30 seconds East for a distance of
60.24 feet to a point;

         THENCE North 47 degrees 07 minutes 32 seconds East for a distance of
33.85 feet to a point;

         THENCE North 03 degrees 16 minutes 22 seconds East for a distance of
30.45 feet to a point;

                                      A-14
<PAGE>

         THENCE South 61 degrees 11 minutes 13 seconds East for a distance of
29.26 feet to a point;

         THENCE South 43 degrees 42 minutes 16 seconds East for a distance of
44.52 feet to a point;

         THENCE South 49 degrees 16 minutes 16 seconds East for a distance of
57.00 feet to a point;

         THENCE South 30 degrees 34 minutes 48 seconds East for a distance of
65.93 feet to a point;

         THENCE South 24 degrees 24 minutes 28 seconds East for a distance of
47.19 feet to a point;

         THENCE South 21 degrees 50 minutes 49 seconds East for a distance of
58.28 feet to a point;

         THENCE South 24 degrees 09 minutes 26 seconds East for a distance of
79.36 feet to a point;

         THENCE South 27 degrees 37 minutes 37 seconds East for a distance of
52.90 feet to a point;

         THENCE South 45 degrees 45 minutes 34 seconds East for a distance of
37.07 feet to a point;

         THENCE North 35 degrees 31 minutes 29 seconds East for a distance of
32.07 feet to a point;

         THENCE South 37 degrees 21 minutes 56 seconds East for a distance of
38.13 feet to a point;

         THENCE South 15 degrees 07 minutes 14 seconds East for a distance of
55.08 feet to a point;

         THENCE South 49 degrees 21 minutes 23 seconds East for a distance of
41.61 feet to a point;

         THENCE South 10 degrees 21 minutes 54 seconds East for a distance of
66.83 feet to a point;

         THENCE South 28 degrees 17 minutes 29 seconds West for a distance of
51.89 feet to a point;

                                      A-15
<PAGE>

         THENCE South 04 degrees 18 minutes 43 seconds West for a distance of
78.67 feet to a point;

         THENCE South 06 degrees 56 minutes 49 seconds West for a distance of
56.79 feet to a point;

         THENCE South 07 degrees 48 minutes 12 seconds West for a distance of
48.18 feet to a point;

         THENCE South 35 degrees 36 minutes 30 seconds West for a distance of
63.01 feet to a point;

         THENCE South 03 degrees 06 minutes 41 seconds West for a distance of
49.25 feet to a point;

         THENCE across an unnamed creek and wetlands area which intersects from
the Southwest, South 65 degrees 01 minutes 43 seconds East for a distance of
394.79 feet to a point;

         THENCE continuing along said wetlands limit, North 19 degrees 07
minutes 29 seconds East for a distance of 19.11 feet to a point;

         THENCE North 11 degrees 12 minutes 10 seconds East for a distance of
55.36 feet to a point;

         THENCE North 59 degrees 47 minutes 00 seconds East for a distance of
61.82 feet to a point;

         THENCE North 46 degrees 30 minutes 17 seconds East for a distance of
108.43 feet to a point;

         THENCE North 51 degrees 07 minutes 59 seconds East for a distance of
99.18 feet to a point;

         THENCE North 78 degrees 57 minutes 49 seconds East for a distance of
32.52 feet to a point;

         THENCE South 66 degrees 51 minutes 15 seconds East for a distance of
88.50 feet to a point;

         THENCE South 51 degrees 09 minutes 25 seconds East for a distance of
75.29 feet to a point;

         THENCE South 42 degrees 38 minutes 23 seconds East for a distance of
82.73 feet to a point;

                                      A-16
<PAGE>

         THENCE South 66 degrees 04 minutes 46 seconds East for a distance of
88.97 feet to a point;

         THENCE South 32 degrees 53 minutes 29 seconds East for a distance of
60.69 feet to a point;

         THENCE South 62 degrees 19 minutes 25 seconds East for a distance of
64.45 feet to a point;

         THENCE South 34 degrees 53 minutes 35 seconds East for a distance of
38.63 feet to a point;

         THENCE South 36 degrees 35 minutes 41 seconds East for a distance of
74.06 feet to a point;

         THENCE South 55 degrees 19 minutes 31 seconds East for a distance of
73.40 feet to a point;

         THENCE South 57 degrees 46 minutes 00 seconds East for a distance of
45.12 feet to a point;

         THENCE North 39 degrees 42 minutes 35 seconds East for a distance of
48.51 feet to a point;

         THENCE South 26 degrees 49 minutes 36 seconds East for a distance of
66.09 feet to a point;

         THENCE South 63 degrees 22 minutes 19 seconds East for a distance of
81.30 feet to a point;

         THENCE South 60 degrees 12 minutes 05 seconds East for a distance of
47.15 feet to a point;

         THENCE North 76 degrees 42 minutes 50 seconds East for a distance of
37.29 feet to a point;

         THENCE South 67 degrees 38 minutes 47 seconds East for a distance of
104.31 feet to a point;

         THENCE South 58 degrees 01 minutes 02 seconds East for a distance of
94.01 feet to a point;

         THENCE South 73 degrees 39 minutes 40 seconds East for a distance of
90.45 feet to a point;

                                      A-17
<PAGE>

         THENCE South 46 degrees 08 minutes 36 seconds East for a distance of
73.29 feet to a point;

         THENCE South 68 degrees 34 minutes 52 seconds East for a distance of
80.11 feet to a point;

         THENCE South 72 degrees 11 minutes 52 seconds East for a distance of
174.98 feet to a point;

         THENCE South 74 degrees 05 minutes 22 seconds East for a distance of
25.78 feet to a point;

         THENCE South 51 degrees 26 minutes 02 seconds East for a distance of
43.79 feet to a point;

         THENCE South 09 degrees 58 minutes 33 seconds East for a distance of
54.59 feet to a point;

         THENCE South 45 degrees 04 minutes 30 seconds East for a distance of
50.75 feet to a point;

         THENCE South 55 degrees 48 minutes 09 seconds East for a distance of
59.24 feet to a point;

         THENCE North 02 degrees 18 minutes 34 seconds East for a distance of
978.06 feet to a point;

         THENCE North 01 degrees 18 minutes 40 seconds East for a distance of
32.38 feet to the POINT OF BEGINNING.

         Said property contains 43.03 acres more or less and is that same tract
or parcel of land shown as Tract D on that certain ALTA/ACSM Title Survey,
entitled Heard County Power Generation Site for Tenaska, Inc., Tenaska Georgia,
Inc., Tenaska Georgia I, LP, Tenaska Georgia Partners, LP, Fidelity National
Title Insurance Company of New York, Stewart Title Guaranty Company, Heard
County Development Authority & The Chase Manhattan Bank as Trustee and
Collateral Agent, prepared by Donaldson, Garrett & Associate, Inc., bearing the
seal and certification of James W. Newberry, Jr. Registered Land Surveyor No.
2558, dated March 19, 1999, last revised November 4, 1999, and recorded in Plat
Book 10, Pages 176 - 188, in the Office of the Clerk of the Superior Court of
Heard County, Georgia.

         TRACT G

         ALL THAT TRACT OR PARCEL OF LAND SITUATE, LYING AND BEING IN LAND LOT
236 OF THE THIRD LAND DISTRICT OF HEARD COUNTY GEORGIA, AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:

                                      A-18
<PAGE>

         COMMENCING AT THE INTERSECTION OF THE WESTERLY RIGHT OF WAY LINE OF JOE
STEPHENS ROAD (80 FOOT WIDTH) WITH THE SOUTHERLY RIGHT OF WAY LINE OF GEORGE
BROWN ROAD (PRESCRIPTIVE RIGHT OF WAY 40 FEET, MORE OR LESS, IN WIDTH), SAID
POINT BEING THE POINT OF REFERENCE; THENCE ALONG THE SOUTHERLY MARGIN OF GEORGE
BROWN ROAD SOUTH 74 DEGREES 00 MINUTES 18 SECONDS WEST FOR A DISTANCE OF 877.40
FEET TO A METAL FENCE POST FLUSH WITH THE GROUND;

         THENCE South 01 degrees 19 minutes 00 seconds West for a distance of
902.40 feet to a STEEL FENCE POST;

         THENCE South 01 degrees 36 minutes 50 seconds East for a distance of
321.00 feet to a 1" PIPE;

         THENCE South 00 degrees 28 minutes 16 seconds West for a distance of
802.62 feet to a 1" PIPE;

         THENCE South 00 degrees 43 minutes 57 seconds West for a distance of
291.17 feet to a POINT IN THE CENTERLINE OF HILLY MILL CREEK;

         THENCE South 01 degrees 18 minutes 40 seconds West for a distance of
32.38 feet to a point;

         THENCE South 02 degrees 18 minutes 34 seconds West for a distance of
978.06 feet to a point on the Southerly limits of the Wetlands of Hilly Mill
Creek;

         THENCE South 02 degrees 18 minutes 34 seconds West for a distance of
84.64 feet to a 3/4 inch pipe;

         THENCE South 01 degrees 21 minutes 15 seconds West for a distance of
12.03 feet;

         THENCE South 01 degrees 21 minutes 15 seconds West for a distance of
140.19 feet to a Painted Rock;

         THENCE North 88 degrees 57 minutes 38 Seconds West for a distance of
1520.84 feet to a point, said point being the POINT OF BEGINNING for the herein
described parcel of land. THENCE North 88 degrees 57 minutes 38 seconds West for
a distance of 177.75 feet to point;

         THENCE North 03 degrees 30 minutes 04 seconds West for a distance of
82.45 feet to a point;

         THENCE North 45 degrees 03 minutes 01 seconds East for a distance of
639.20 feet to a point;

                                      A-19
<PAGE>

         THENCE North 19 degrees 13 minutes 55 seconds East for a distance of
52.57 feet to a point;

         THENCE North 70 degrees 46 minutes 05 seconds West for a distance of
175.00 feet to a point;

         THENCE North 19 degrees 13 minutes 55 seconds East for a distance of
150.00 feet to a point;

         THENCE South 70 degrees 46 minutes 05 seconds East for a distance of
175.00 feet to a point;

         THENCE North 19 degrees 13 minutes 55 seconds East for a distance of
25.93 feet to a point;

         THENCE South 44 degrees 18 minutes 22 seconds East for a distance of
63.80 feet to a point;

         THENCE South 53 degrees 03 minutes 38 seconds East for a distance of
18.78 feet to a point;

         THENCE South 19 degrees 13 minutes 55 seconds West for a distance of
211.55 feet to a point;

         THENCE South 45 degrees 03 minutes 01 seconds West for a distance of
11.80 feet to a point;

         THENCE along a curve to the right having a radius of 3600.00 feet, a
central angle of 09 degrees 21 minutes 08 seconds, an Arc length of 587.61 feet,
and subtended by a chord bearing South 33 degrees 47 minutes 14 seconds West for
a distance of 586.96 feet to the POINT OF BEGINNING.

         Said property contains 3.16 acres more or less and is that same tract
or parcel of land shown as Tract G on that certain ALTA/ACSM Title Survey,
entitled Heard County Power Generation Site for Tenaska, Inc., Tenaska Georgia,
Inc., Tenaska Georgia I, LP, Tenaska Georgia Partners, LP, Fidelity National
Title Insurance Company of New York, Stewart Title Guaranty Company, Heard
County Development Authority & The Chase Manhattan Bank as Trustee and
Collateral Agent, prepared by Donaldson, Garrett & Associate, Inc., bearing the
seal and certification of James W. Newberry, Jr. Registered Land Surveyor No.
2558, dated March 19, 1999, last revised November 4, 1999, and recorded in Plat
Book 10, Pages 176 - 188, in the Office of the Clerk of the Superior Court of
Heard County, Georgia.

                                      A-20

<PAGE>

                                 EXHIBIT "B"

                   EASEMENTS AND PERMITTED TITLE EXCEPTIONS

TOGETHER WITH:

     (A) All rights of the above named Grantor under that certain
         Construction Easement Agreement by and between Inland
         Paperboard and Packaging, Inc., a Delaware corporation,
         Tenaska, Inc., a Delaware corporation, and Tenaska Georgia
         Partners, L.P., a Delaware limited partnership, dated
         October 8, 1999, filed for record October 11, 1999 at
         2:51 p.m., recorded in Deed Book 201, Page 107, Heard County,
         Georgia Records.

     (B) All rights of the above named Grantor under that certain Access
         Easement Agreement by and between Inland Paperboard and
         Packaging, Inc., a Delaware corporation, Tenaska, Inc., a Delaware
         corporation, and Tenaska Georgia Partners, L.P., a Delaware limited
         partnership, dated October 8, 1999, filed for record October 11,
         1999 at 2:45 p.m., recorded in Deed Book 201, Page 120, aforesaid
         Records.

     (C) All rights of the above named Grantor under that certain
         Perpetual Right of Way and Easement Agreement for Charles L.
         Goodson, as Executor of the Last Will and Testament of Ora Lee
         Goodson, to Tenaska Georgia Partners, L.P., a Delaware limited
         partnership, dated November 10, 1999, filed for record
         November 10, 1999 at 4:14 ?.m. recorded in Deed Book 201, Page
         705, aforesaid Records, as affected by that certain
         Non-Interference and Cross-Indemnity Agreement by and between
         Tenaska, Inc., a Delaware corporation, and Tenaska Georgia
         Partners, L.P., a Delaware limited partnership, dated
         November 10, 1999, filed for record November 10, 1999 at
         4:22 ?.m., recorded in Deed Book 201, Page 792, aforesaid
         Records.

     (D) All rights of the above named Grantor under that certain
         Natural Gas Pipeline Right of Way for Great Northern Nekoosa
         Corporation, a Maine corporation, to Tenaska Georgia Partners,
         L.P., a Delaware limited partnership, dated November 10, 1999,
         filed for record November 10, 1999 at 4:16 ?.m., recorded in
         Deed Book 201, Page 743, aforesaid Records, as affected by that
         certain Non-Interference and Cross-Indemnity Agreement by and
         between Tenaska, Inc., a Delaware corporation, and Tenaska
         Georgia Partners, L.P., a Delaware limited partnership, dated
         November 10, 1999, filed for record November 10, 1999 at 4:22 ?.m.,
         recorded in Deed Book 201, Page 792, aforesaid Records.

                                      18

<PAGE>

 (E)     All rights of the above named Grantor under that certain Easement
         Agreement from Robert Charles Payne and Susan Lynn Payne to Tenaska
         Georgia Partners, L.P., a Delaware limited partnership, dated
         November 10, 1999, filed for record November 10, 1999 at 4:19 ?.m.,
         recorded in Deed Book 201, Page 786, aforesaid Records.

 (F)     All rights of the above named Grantor under that certain Access and
         Utility Easement Agreement from Tenaska, Inc., a Delaware
         corporation to Tenaska Georgia Partners, L.P., a Delaware limited
         partnership, dated November 10, 1999, filed for record November 10,
         1999 at 4:10 ?.m., recorded in Deed Book 201, Page 666, aforesaid
         Records.

AND SUBJECT TO:
---------------

1.       All taxes for the year 1999 and subsequent years, not yet due and
         payable.

2.       Riparian Rights incident to the Property.

3.       Right-of-Way Deed Plant Wansley-Fortson Transmission Line from
         Georgia Kraft Company, a Delaware Corporation, to Georgia Power
         Company, a Georgia Corporation dated August 7, 1974, filed for
         record September 14, 1974 at 8:30 a.m., recorded in Deed Book 75,
         Page 438, Records of Heard County, Georgia.

4.       Terms and conditions contained in that certain Easement Agreement by
         and between Violet E. Davis and Tenaska, Inc., a Delaware
         corporation, dated May 7, 1998, filed for record May 7, 1998 at 1:54
         p.m., recorded in Deed Book 184, Page 578, aforesaid Records.

5.       The terms and conditions of that certain Construction Easement
         Agreement by and between Inland Paperboard and Packaging, Inc., a
         Delaware corporation, Tenaska, Inc. a Delaware corporation, and
         Tenaska Georgia Partners, L.P., a Delaware limited partnership,
         dated October 8, 1999, filed for record October 11, 1999 at
         2:51 p.m., recorded in Deed Book 201, Page 107, aforesaid Records,
         Terms and conditions contained in that certain.

6.       Terms and conditions contained in that certain Access Easement
         Agreement by and between Inland Paperboard and Packaging, Inc., a
         Delaware corporation, Tenaska, Inc. a Delaware corporation and
         Tenaska Georgia Partners, L.P., a Delaware limited partnership,
         dated October 8, 1999, filed for record October 11, 1999 at
         2:54 p.m., recorded in Deed Book 201, Page 120, aforesaid Records.

7.       Terms and conditions contained in that certain Access and Utility
         Easement Agreement from Tenaska, Inc., a Delaware corporation to
         Tenaska Georgia Partners, L.P., a Delaware limitied partnership,
         dated November 10, 1999, filed for record November 10, 1999 at
         4:10 ?.m., recorded in Deed Book 201, Page 666, aforesaid Records.

                                     19

<PAGE>

8.       Terms and conditions of that certain Perpetual Right of Way and
         Easement Agreement from Charles L. Goodson, as Executor of the Last
         Will and Testament of Ore Lee Goodson, to Tenaska Georgia Partners,
         L.P., a Delaware limited partnership, dated November 10, 1999, filed
         for record November 10, 1999 at 4:14 ?.m., recorded in Deed Book 201,
         Page 705, aforesaid Records and the terms and conditions of that
         certain Non-Interference and Cross-Indemnity Agreement by and
         between Tenaska, Inc., a Delaware corporation, and Tenaska Georgia
         Partners, L.P., a Delaware limited partnership, dated November 10,
         1999, filed for record November 10, 1999 at 4:22 ?.m., recorded in
         Deed Book 201, Page 792, aforesaid Records.

9.       Terms and conditions  of that certain Natural Gas Pipeline Right of
         Way from Great Northern Nekoosa Corporation, a Maine corporation, to
         Tenaska Georgia Partners, L.P., a Delaware limited partnership,
         dated November 10, 1999, filed for record November 10, 1999 at
         4:16 ?.m., recorded in Deed Book 201, Page 743, aforesaid Records,
         and the terms and conditions of that certain Non-Interference and
         Cross-Indemnity Agreement by and between Tenaska, Inc., a Delaware
         corporation, and Tenaska Georgia Partners, L.P., a Delaware limited
         partnership, dated November 10, 1999, filed for record November 10,
         1999 at 4:22 ?.m., recorded in Deed Book 201, Page 792, aforesaid
         Records.

10.      Easement Agreement by and between Tenaska, Inc., a Delaware
         corporation, and Inland Paperboard and Packaging, Inc., a Delaware
         corporation, dated October 8, 1999, filed for record October 11,
         1999 at 2:54 p.m., recorded in Deed Book 201, Page 125, aforesaid
         Records.

11.      Memorandum of Rights of First Refusal and Right to Repurchase
         Agreement by and between Julie R. Thomas (formerly known as Julie
         Rebecca Brown Arrington), and Tenaska Georgia Partners, L.P., a
         Delaware limited partnership, dated August 26, 1998, filed for
         record September 1, 1998 at 1:21 p.m., recorded in Deed Book 188,
         Page 339, aforesaid records.

12.      Memorandum of Right of First Refusal Agreement by and between
         Tenaska, Inc., a Delaware corporation, and Inland Paperboard and
         Packaging, Inc., a Delaware corporation, dated October 8, 1999,
         filed for record October 11, 1999 at 3:15 p.m., recorded in Deed
         Book 201, Page 131, aforesaid Records.

13.      Perpetual Right-of-Way and Easement Agreement from Tenaska Georgia
         Partners, L.P., a Delaware limited partnership, to Tenaska, Inc., a
         Delaware corporation, dated November 10, 1999, filed for record
         November 10, 1999 at 4:08 ?.m., recorded in Deed Book 201, Page 653,
         aforesaid Records.

14.      Restricted Covenant from Tenaska Georgia Partners, L.P., a Delaware
         limited partnership, dated November 10, 1999, filed for record
         November 10, 1999 at 4:12 ?.m., recorded in Deed Book 201, Page 678,
         aforesaid Records.

                                       20

<PAGE>

15.      Those matters disclosed by that certain ALTA/ACSM Title Survey,
         entitled Heard County Power Generation Site for Tenaska, Inc.,
         Tenaska Georgia, Inc., Tenaska Georgia I, LP, Tenaska Georgia
         Partners, LP, Fidelity National Title Insurance Company of New York,
         Stewart Title Guaranty Company, Heard County Development Authority &
         The Chase Manhattan Bank as Trustee and Collateral Agent, prepared
         by Donaldson, Garrett & Associate, Inc., bearing the seal and
         certification of James W. Newberry, Jr. Registered Land Surveyor No.
         2558, dated March 19, 1999, last revised November 4, 1999, and
         recorded in Plat Book 10, Pages 176-188, in the Office of the Clerk
         of the Superior Court of Heard County, Georgia, which recorded
         Survey is incorporated herein by reference.

16.      That certain Indenture of Trust between by and between the
         Development Authority of Heard County, a public corporation of the
         State of Georgia, as issuer, and The Chase Manhattan Bank, as
         trustee, a state banking corporation duly organized and existing
         under and by virtue of the laws of the State of New York, as
         trustee, dated November 10, 1999, filed for record November 10, 1999
         at 4:36 ?.m., recorded in Deed Book 202, Page 86, aforesaid Records.

17.      Terms and conditions contained in that certain Lease Agreement by
         and between the Development Authority of Heard County, a public
         corporation of the State of Georgia, as lessor, and Tenaska Georgia
         Partners, L.P., a Delaware limited partnership, as lessee, dated
         November 10, 1999, filed for record November 10, 1999 at 4:34 ?.m.,
         recorded in Deed Book 202, Page 1, aforesaid Records.

                                       21

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